Note 4. Common Stock Options and Warrants

6 Months Ended

Jun. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

4. Common Stock Options and Warrants. As of December 31, 2012 there remained 2,217,817 shares underlying our warrants related to our January 2008 financing arrangement that would have been available for future sale and the sale of these shares may have depressed the market price of our common stock. In addition the warrants had an anti-dilution ratchet feature that could have caused the number of warrants to increase and the exercise price to decrease if we should have any non exempt stock, option or warrant issuances at less than the $0.0202 per share. The aforementioned warrants expired unexercised and worthless at the close of business on January 8, 2013. In accordance with the terms of the individual agreements, 2,135,000 warrants expired during the six months ended June 30, 2013.

A summary of the Company’s stock option activity and related information for the period ended June 30, 2013 is as follows:

	Options			Price Range
Outstanding December 31, 2012		1,852,792		$	0.040	-	0.125
Granted		-				-
Cancelled/Expired		(100,000	)			0.075
Exercised		-				-
Outstanding June 30, 2013		1,752,792			0.040	-	0.125
Exercisable June 30, 2013		1,752,792		$	0.040	-	0.125

A summary of the Company’s stock warrant activity and related information for the period ended June 30, 2013 is as follows:

	Warrants			Price Range
Outstanding December 31, 2012		6,642,317		$	0.0202	-	0.10
Granted		-				-
Cancelled/Expired		(4,352,817	)		0.0202	-	0.10
Exercised		-				-
Outstanding June 30, 2013		2,289,500			0.03	-	0.10
Exercisable June 30, 2013		2,289,500			0.03	-	0.10