Stockholders' Deficit (Tables)

9 Months Ended

Oct. 31, 2012

Warrants Outstanding

Warrants consisted of the following:

	Aggregate		Number of
	intrinsic value		warrants
Outstanding at January 31, 2012	$	-		1,500,000
Granted		-		2,100,000
Exercised		-		-
Cancelled		-		(1,500,000	)
Outstanding at October 31, 2012	$	-		2,100,000

Exercise Price		Warrants		Weighted		Warrants		Weighted
		outstanding		average		exercisable		average
				remaining				exercise price
				contractual life
$	0.11485		1,250,000		3.76		1,250,000	$0.11485
$	0.11485		250,000		3.76		250,000	$0.11485
$	0.45000		500,000		3.76		500,000	$0.45000
$	0.50000		100,000		5.00		100,000	$0.50000
			2,100,000		3.82		2,100,000	$0.21299

Stock Option Transactions Under Stock Option Plans

Stock option activity for the nine months ended October 31, 2012 is summarized below:  

	Shares		Weighted		Weighted		Aggregate
			Average		Average		Intrinsic
			Per Share		Remaining		Value
			Exercise		Life
			Price		(Years)
Balance, January 31, 2012		1,150,000	$	0.15		8.9	$	-
Granted		4,075,000		0.19		9.7		-
Exercised		-		-		-		-
Expired		-		-		-		-
Forfeited		-		-		-		-
Balance, October 31, 2012		5,225,000	$	0.18		9.4	$	-
Vested and expected to vest		2,608,336	$	0.18		9.4	$	-
Exercisable, October 31, 2012		2,541,669	$	0.18		9.4	$	-

Amount of Shares of Common Stock Reserved

The amount of shares of common stock reserved for these purposes is as follows:

	As of
	October 31, 2012
Common stock issued and outstanding		34,768,441
Conversion of 10% Notes		10,883,761
Conversion of 8% Notes		600,000
Warrants		2,100,000
Stock options outstanding		5,225,000
		53,577,202