13. WARRANTS

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

WARRANTS

During fiscal 2012, the Company issued warrants to acquire 1,516,667 common shares. The warrants were included in units issued as part of a private placement. Each unit of the private placement was comprised of one common share of the Company and one half purchase warrant. Each warrant entitles the holder to acquire one common share of the Company at a price of $0.10 per share. The warrants expire 6 months from date of issuance.

The following schedule summarizes the outstanding warrants at September 30, 2013 and December 31, 2012:

	September 30, 2013				December 31, 2012
	No. of Warrants		WAEP		No. of Warrants		WAEP
Beginning of year		1,516,667	$	0.10		-	$	-
Issued		-		-		1,516,667		0.10
Expired		(1,516,667)		(0.10)		-		-
End of year		-	$	-		1,516,667	$	0.10

The fair value of the issued warrants was determined using the Black-Scholes Option Pricing Model, however, no stock based compensation expense was recorded since the warrants were issued as a part of the private placement of common stock.