STOCK ISSUED FOR CONSULTING SERVICES

12 Months Ended

Dec. 31, 2011

Stock Issued For Consulting Services [Abstract]

Stock Issued For Consulting Services [Text Block]

12. STOCK ISSUED FOR CONSULTING SERVICES

On November 7, 2011, the Company issued 657,040 restricted shares of common stock to a Corporation, which one of the Company’s Board of Directors has a financial interest, for $4,467 in consulting services.

On November 7, 2011, the Company converted an aged account payable trade of $5,607 for 683,820 restricted shares of common stock. Of the $5,607, $3,005 was recognized as operating expense during the year ended December 31, 2011.

Pursuant to a consulting agreement for business advisory services, the Company issued 2,703,839 restricted shares to a consultant or his designees for $36,700 in services for the eleven months ended November 30, 2011. To the same consultant and designees, the Company declared 698,729 restricted shares payable for the month of December 2011 for $1,400 in services.

From April 16, 2010, through December 31, 2010, the Company granted a combined 674,932 shares of restricted common stock to eight consultants pursuant to individual consulting agreements. The consulting services provided for include predominantly management advisory services in the areas of sales, marketing, public relations, financing, and business development. Grant of the stock was in lieu of payment for these services. The length of consulting services under the agreements ranges from completed during the second quarter of 2010 through one year from effective transaction date, or July 1, 2011. The majority of the agreements expired on December 31, 2010. The Company recorded the transactions at the fair market value of the stock on the effective date of each transaction. The Company recognized operating expense over the term of the agreements. Accordingly, for the years ended December 31, 2011 and 2010, the Company recognized $41,586 and $179,337, respectively, as operating expense under the agreements.

On March 9, 2010, the Company granted 100,000 shares of restricted common stock pursuant to a consulting agreement for assistance in the planning, design, direction, supervision and implementation of Company's web design, marketing and advertising and in such other matters and areas as may be mutually approved by Consultant and Company. This agreement expired on December 31, 2010. The Company recorded the transaction at the fair market value of the stock on the effective date of the transaction, $.99 per share. The Company amortized the operating expense over the term of the agreement. This same consultant loaned the Company $100,000 during the first quarter of 2010, accepted a conversion of his loan to common stock in the third quarter of 2010, and became a member of the Board of Directors of the Company in December 2010.