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Note 9 - Subsequent Events
6 Months Ended
Jun. 30, 2011
Subsequent Events [Text Block]
NOTE 9 – SUBSEQUENT EVENTS

On July 6, 2011, we granted 5,000,000 stock options to various consultants for services to be rendered to us.  All of the stock options have an exercise price of $0.31 per share, which was the closing price of our common stock as quoted on the OTCQB on the date of grant.  The stock option agreements provide that 1,833,333 stock options vested upon issuance and the remaining stock options vest over one to two years on the anniversary dates.  The stock options have a ten-year term.  We valued these options using the Black-Scholes option pricing model using a risk free rate of 3.13%, no expected dividend yield, an expected life of 5.52 years and 77% volatility.  We determined the value of these options to be $1,030,795 and will expense them over the service period of two years from the date of grant.

On July 6, 2011, we issued 750,000 shares of restricted stock to an investor relations company for services to be provided to us over a one-year period.  These shares were fully vested upon issuance.  We determined the value of these shares to be $232,500 based upon the $0.31 closing stock price of our common stock on the date of grant.

On July 18, 2011, we entered into a new revolving promissory note with the related party described in Note 5.  The new revolving note provides a maximum availability of $50,000, is unsecured, bears interest at the rate of 12% per annum and is due on July 17, 2012.