8. Loss on Settlement of Debt

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note 8. Loss on Settlement of Debt

In March 2013, the Company settled a debt incurred in prior year amounting to $147,328 for $85,000 plus a warrant to purchase 150,000 shares of common stock with a fair value of $129,622 (see Note 5). As a result, the Company also recognized a loss of $67,294 on the settlement.