EQUITY TRANSACTIONS

3 Months Ended

Mar. 31, 2012

EQUITY TRANSACTIONS

NOTE 7 -  EQUITY TRANSACTIONS

2012

Payment of Interest

For the three months ended March 31, 2012, the Company issued 26,518 shares (valued at $3,421) of the Company’s common stock as payment for interest due on the Company’s 10% convertible notes.

Services Rendered

The Company issued 1,112,499 shares (valued at $25,542) for the three months ended March 31, 2012 of the Company’s restricted common stock as payment for compensation to consultants and employees. The Company issued 2,588,847 shares (valued at $40,000) for the three months ended March 31, 2012 of the Company’s restricted common stock as payment for services to the Board of Directors.

Common Stock Issued in Connection with Debt Issuance

In the three months ended March 31, 2012, the Company issued 28,500,000 shares of its common stock as a result of the issuance of $285,000 of principal on the bridge notes.

Issuance of Common Stock as a Result of Sale of Securities

In the three months ended March 31, 2012, the Company issued 6,784,722 shares of common stock for proceeds from the sale of the Company’s common stock of $45,000.

2011

Payment of Interest

For the year ended December 31, 2011, the Company issued 237,960 shares (valued at $13,836) of the Company’s common stock as payment for interest due on the Company’s 10% convertible notes.

Services Rendered

The Company issued 7,535,702 shares (valued at $369,391) for the year ended December 31, 2011 of the Company’s restricted common stock as payment for compensation to consultants and employees. The Company issued 4,857,663 shares (valued at $225,500) for the year ended December 31, 2011 of the Company’s restricted common stock as payment for services to the Board of Directors.

Extinguishment of Accounts Payable

During the year ended December 31, 2011 the Company issued 2,462,421 shares (valued at $268,700) of its common stock in lieu accounts payable and the due to shareholder totaling approximately $287,500.  The resulting net gain of approximately $19,000 is included within the gain on extinguishment of liabilities line item in the accompanying consolidated statement of operations.

Option and Warrant Exercises

During the year ended December 31, 2011 the Company issued 714,869 shares of common stock as a result of option exercises (500,000 were cashless and the Company received proceeds totaling $26,970 for the non cashless exercise of 246,119 options).

During the year ended December 31, 2011, the Company issued 738,273 shares of common stock as a result of 787,099 warrants exercised on a cashless basis.

Debt Conversion of Interest

In the year ended December 31, 2011, the Company issued 1,253,961 shares of its common stock as a result of converting $125,012 of accrued interest on the bridge note holders.

Debt Conversion

In the year ended December 31, 2011, the Company issued 11,131,767 shares of its common stock as a result of converting $1,158,807 of principal on the bridge note holders.

Issuance of Common Stock as a Result of Sale of Securities

In the year ended December 31, 2011, the Company issued 7,924,009 shares of common stock for proceeds from the sale of the Company’s common stock of $427,938.

Conversion of Preferred A

In the year ended December 31, 2011, shareholders converted 240,894 shares of Preferred A into 2,408,940 shares of common stock.