STOCK ISSUED FOR CONSULTING SERVICES

3 Months Ended

Mar. 31, 2012

Stock Issued For Consulting Services [Abstract]

Stock Issued For Consulting Services [Text Block]

12. STOCK ISSUED FOR CONSULTING SERVICES

Pursuant to a consulting agreement for business advisory services, the Company issued or declared payable 2,247,298 restricted shares to a consultant or his designees for $14,600 of services for the three months ended March 31, 2012. The stock conversions price under the agreement is calculated as a weighted average for the month the services were granted at a 30% discount. To the same consultant or designees, the Company issued or declared payable 59,105 restricted shares for $11,489 of services.

For the three months ended March 31, 2012 the Company declared 441,405 restricted shares payable to a consultant for $9,400 in engineering services. The Company declared 1,389,077 to another consultant for $9,250 in business advisory services for the three months ended March 31, 2012. The number of shares was calculated based on the weighted average of shares outstanding for the period during the first quarter the services were rendered at a 30% discount.

On February 2, 2012, the Company entered into a consulting agreement for financial and public relations services. The term of the agreement is for twelve (12) months and either party may cancel the agreement with 30 days written notice. Payment shall be monthly beginning in March 2012, in the form of $10,000 cash, or $20,000 worth of common stock based on the weighted average of the Company’s stock for the month at a 30% discount. Payment in cash or stock is at the option of the Company. In addition, upon signing of the agreement, the Company was to issue 2,500,000 shares for services previously provided during the first quarter of 2012. The Company recognized $29,750 operating expense under this agreement for the first quarter of 2012 and 5,277,778 shares payable. Due to the guarantee stock value clause in the Agreement, the Company compared the value at the time the stock was granted with the value at the end of the quarter, and determined no need for accrual of additional shares payable to achieve the $20,000 market value to guarantee.

The Company converted $16,200 in design services payable for the three months ended March 31, 2012, into 600,000 restricted common stock based on the market value of the stock on the date of conversion.

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 three months ended March 31, 2011, the Company recognized $22,250 as operating expense under the agreements.