STOCK WARRANTS ISSUED FOR LEGAL SERVICE

9 Months Ended

Sep. 30, 2011

Stock Warrants Issued For Legal Service [Abstract]

Stock Warrants Issued For Legal Service [Text Block]

11. STOCK WARRANTS FOR LEGAL SERVICE

Effective December 30, 2009, the Company issued to an outside attorney warrants to purchase 100,000 shares of restricted common stock for certain legal and advisory services to be performed in 2010, as evidenced by a signed proposal.  The warrants are exercisable at fair market value as of the date of grant, and vested in two tranches of 50,000 each, on September 30, 2010 and December 31, 2010, respectively.  In addition, the agreement provides for a cashless exercise of the tranches.  The fair value of the warrants was determined to be $25,000 using the Black-Scholes valuation model.  The stock warrants are in lieu of payment for these services and as such the Company recognized operating expense over the term of the agreement.  Accordingly, the Company recognized operating expense for the three and nine months ended September 30, 2010 of $6,250 and $18,750, respectively.  As of September 30, 2011, the two tranches of warrants were unexercised.