Stockholders Equity

6 Months Ended

Jul. 01, 2011

Notes to Financial Statements

Stockholders Equity

NOTE 6 – STOCKHOLDERS EQUITY

Issuance of Common Stock:   In February 2011, we issued 60,000 shares of common stock for services with an aggregate value of $22,200.

In March 2011, we issued 1.5 million shares of common stock for the exercise of 1.5 million warrants at an exercise price of $.08 per share for a total purchase price of $120,000. Also in March 2011, we issued 625,000 shares of common stock for the exercise of 625,000 warrants at an exercise price of $.08 per share for a total purchase price of $50,000.

In April 2011, we issued 312,500 shares of common stock for the exercise of 312,500 warrants at an exercise price of $.08 per share for a total purchase price of $25,000.

In May 2011, we issued 312,500 shares of common stock for the exercise of 312,500 warrants at an exercise price of $.08 per share for a total purchase price of $25,000.

In May 2011, we issued 40,000 shares of common stock for services with an aggregate value of $15,600.

At July 1, 2011, we were obligated to issue an additional 120,000 shares for services rendered with an aggregate value of $54,600.

All shares issued for non-cash consideration were valued based on the market price of our common stock at the dates of issuance or the date the services were earned.

The following warrants for our common stock were issued and outstanding for the twenty-six weeks ending July 1, 2011 and June 25, 2010, respectively:

	July 1, 2011			June 25, 2010
Warrants outstanding at beginning of period		14,887,803			10,762,803
Issued		-			2,750,000
Exercised		(2,750,000	)		-
Cancelled		-			-
Warrants outstanding at end of period		12,137,803			13,512,803

A detail of warrants outstanding July 1, 2011 is as follows:

	Number		Expiration Date
Exercisable at $1.25 per share		6,312,803	6/20/2013
Exercisable at $1.50 per share		250,000	4/14/2012
Exercisable at $.08 per share		4,200,000	4/1/2014
Exercisable at between $.16 and $1.00 per share		1,375,000	4/15/12 to 4/15/15
		12,137,803

The fair values of outstanding warrants defined as a derivative instrument per the Accounting Standards Codification (ASC) are estimated each period using the Black-Scholes pricing model. The change in fair value is presented as a line item in our Statement of Operations and amounted to approximately $318,000 for the twenty-six weeks ending July 1, 2011.