XML 34 R15.htm IDEA: XBRL DOCUMENT v2.3.0.15
Note 9 - Subsequent Events
9 Months Ended
Sep. 30, 2011
Subsequent Events [Text Block]
NOTE 9 – SUBSEQUENT EVENTS

On October 8, 2011, we entered into a $100,000 senior secured promissory note with one of our shareholders.   This senior secured promissory note is secured by substantially all of our assets, bears interest at the per annum rate of 12% and matures on August 22, 2012.  Additionally, we issued to the related party a warrant to purchase 500,000 shares of our common stock at a per share price of $0.10 and with a term of 5 years.

On October 12, 2011, we borrowed an additional $40,000 on our note payable, related party, bringing the total balance, including unpaid interest to $349,791.  On October 12, 2011, we converted this note into a senior secured promissory note.  This senior secured promissory note is secured by substantially all of our assets, bears interest at the per annum rate of 12% and matures on August 12, 2012.  Additionally, we issued to the related party a warrant to purchase 1,748,953 shares of our common stock at a per share price of $0.10 and with a term of 5 years.

On October 26, 2011, Craig Ellins, our Executive Chairman, agreed to terminate without consideration options to purchase 10,719,522 shares of our common stock.  On October 26, 2011, Brian B. Sagheb, our Chief Executive Officer, Chief Financial Officer and Secretary agreed to terminate without consideration options to purchase 1,175,593 shares of our common stock.

In November 2011, we issued 180,000 restricted shares of common stock to a consultant for services to be performed beginning on July 7, 2011 and ending on December 1, 2011.  These securities were issued without registration pursuant to the exemption afforded by Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act") as transactions by an issuer not involving a public offering.