Note 9 - Stock Warrants

6 Months Ended

Jun. 30, 2014

Notes

Note 9 - Stock Warrants

NOTE 9 – STOCK WARRANTS

We have issued warrants to purchase shares of our common stock in connection with equity financing agreements and pursuant to certain consulting agreements.

A summary of the status of our stock warrants as of June 30, 2014, and changes during the six months then ended is presented below:

		Weighted Average
	Shares	Exercise Price
Outstanding, December 31, 2013	26,750,000	$   0.06
Granted	5,150,000	$  0.0044
Canceled / Expired	(12,250,000)	$   0.066
Exercised	-
Outstanding, vested and exercisable, June 30, 2014	19,650,000	$   0.043

The following summarizes the exercise price per share and expiration date of our outstanding warrants to purchase common stock at June 30, 2014:

Expiration Date	Price	Number
2015	$    0.05	4,000,000
2017	$    0.06	2,500,000
2017	$    0.04	4,000,000
2017	$    0.08	4,000,000
2017	$    0.05	150,000
2019	$    0.003	5,000,000
		19,650,000

During the six months ended June 30, 2014, we issued five-year warrants to purchase 5,000,000 shares of our common stock at an exercise price of $0.003 per share (see Note 8).

During the six months ended June 30, 2014, we issued three-year warrants to purchase 150,000 shares of our common stock at an exercise price of $0.05 per share.  The warrants were issued in connection with the extinguishment of debt and were valued at $142 using the Black-Scholes option pricing model.