SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2011

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

15. SUBSEQUENT EVENTS

The Company issued 3,120,833 shares of compensation shares to management employees in lieu of $171,646 cash compensation for services rendered during the fourth quarter of 2011 which had been recorded at a value of $3,121 in stock based compensation based upon individual tax elections made by each recipient. The shares were awarded on Restricted Stock Agreements which have a six month time lapse restriction and are subject to forfeiture upon voluntary termination of employment.

The Company’s independent directors annual compensation is $16,000 to be paid quarterly in restricted stock. The Company issued the directors 363,635 shares of restricted stock on January 1, 2012 for their fourth quarter 2011 compensation. The Company recorded $4,000 in stock based compensation for each of its five independent directors.

The Company is currently in settlement and licensing discussions with several companies against whom we have brought suits alleging infringement of United States Patent #7,822,816. On January 30, 2012, additional suits were filed against Facebook, Inc. (Civil Action No. 6:12-cv-44), Hyatt Corporation (Civil Action No. 6:12-cv-45), newegg (Civil Action No. 6:12-cv-46), Wal-Mart Stores, Inc. (Civil Action No. 6:12-cv-47), and YELP! INC. (Civil Action No. 6:12-cv-48). On January 30, 2012, the lawsuit against AT&T Mobility LLC was dismissed with prejudice pursuant to a settlement agreement. On February17, 2012, additional suits were filed against GEICO Insurance Agency, Inc., GEICO Casualty Company and Government Employees Insurance Company (Civil Action No. 6:12:cv-74) and Marriott International, Inc. (Civil Action No. a6:12:cv-76). On February 27, 2012, additional suits were filed against AOL INC. (Civil Action No. 6:12-cv-91) and Inter-continental Hotels Corporation, Six Continents Hotels, Inc. (Civil Action 6:12-cv-92).

On February 17, 2012, the Company began offering the Putable-Callable Debenture Series 2012 and Series C Warrants to raise working capital for the expansion of its marketing of products and services. The debentures bear interest at 8% per annum. Each debenture is accompanied by a warrant to purchase, no later than December 31, 2017, common stock equal to 50% of the then unpaid principal amount of the debenture. On that date, the Company sold $500,000 of debentures to four directors who converted $320,000 of short term promissory notes and invested $180,000 in new proceeds.