ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION (Tables)

9 Months Ended

Sep. 30, 2012

Organization Operations And Basis Of Presentation Tables

Inventory

Inventory is comprised of the following:

	September 30, 2012		December 31, 2011
Raw materials	$	-	$	1,379
Finished goods		47,357		11,643
Provision for obsolete inventory		-		(11,169	)
	$	47,357	$	1,853

A summary of the reserve for obsolete and excess inventory is as follows:

	September 30, 2012			December 31, 2011
Balance as of beginning of period	$	11,169		$	28,022
Addition to provision		1,853			-
Deduction to provision		(12,894	)		(1,198	)
Recapture of previous provision		(128	)		(9,498	)
Write-off of obsolete inventory		-			(6,157	)
Balance as of end of period	$	-		$	11,169

Stock-Based Compensation

The following were the factors used in the Black Sholes model in the quarters to calculate the compensation cost: 

	Nine months ended			Nine Months Ended
	September 30, 2012			September 30, 2011
Stock price volatility		-	%		123 – 208	%
Risk-free rate of return		-	%		0.15 – 2.02	%
Annual dividend yield		-	%		-	%
Expected life	-			.5 to 5 Years