SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 11 – SUBSEQUENT EVENTS

Effective October 8, 2012, the Company entered into a three year agreement with Norman Gardner as Vice Chairman of the Board and Chief Executive Officer of the Company with an annual compensation of $200,000 per year. In addition, upon execution of the agreement the Company has agreed to issue options to Mr. Gardner to purchase 5% of the shares of the Company’s common stock at an exercise price of $.05 per share, subsequent to the Company receiving funding of $2.5 millon.

Effective October 16, 2012, the Company entered into a three year agreement with Neil Alpert as President and Chief Operating Officer of the Company with an annual compensation of $200,000 per year. In addition, upon execution of the agreement the Company has agreed to issue options to Mr. Alpert to purchase 5% of the shares of the Company’s common stock at an exercise price of $.05 per share, subsequent to the Company receiving funding of $2.5 million.

In October 2012, the Company entered into an agreement with a related party noteholder whereby $250,000 of the 25% Notes Payable and $200,000 of the unsecured notes payable plus accrued interest on these notes payable of $131,565 will be fully satisfied in exchange for the issuance of 12,923,622 shares of the Company’s common stock ($.045 per share).

In October 2012, the Company completed a private placement equity offering in which $250,000 was received in exchange for 5,555,556 shares of the Company’s common stock and warrants to purchase 5,555,556 shares of Company’s common stock at an exercise price of $.10 per share with a term of 3 years.