Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

The Company estimated the fair value of 2011 options on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

		April 21, 2011
Risk-free interest rate		2.14 %
Dividend yield		0.00%
Expected volatility		313%
Expected option life		5 years

Incentive Plan Stock Option Activities

The table below summarizes the Company’s Incentive Plan stock option activities through June 30, 2012:

	Number of Option Shares		Fair Value at the Date of Grant	Exercise Price Range Per Share		Weighted Average Exercise Price			Weighted Average Remaining (in years) Contractual Term		Aggregate Intrinsic Value (in thousands)
Balance, January 1, 2011		70,027,309	$1,184,621		$0.0025 - $ 10.00		$	0.018		3.7		$ ---
Granted		70,000,000	$2,030,000		$0.01		$	0.010		4.3		$ ---
Cancelled		-	-		-		$	-		-		$ ---
Balance, December 31, 2011		140,027,309	$3,214,621		$0.0025 - $10.00		$	0.014		4.0		$ ---
Granted		-	-		-		$	-		-		$ ---
Balance, June 30, 2012		140,027,309	$3,214,621		$0.0025 - $10.00		$	0.018		3.53		$ ---
Vested and Exercisable, June 30, 2012		140,027,309	$3,214,621		$0.0025-$10.00		$	0.018		3.53		$ ---

Outstanding And Exercisable Incentive Plan Options

The following table summarizes information concerning outstanding and exercisable Incentive Plan options as of June 30, 2012:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Average Remaining Contractual Life (in years)		Weighted-Average Exercise Price		Number Exercisable		Weighted-Average Exercise Price
$10.000		37,500		2.16	$	10.000		37,500	$	10.000
$1.000		105,000		4.01		1.000		105,000		1.000
$0.0025 - $0.375		139,884,809		3.51		0.014		139,884,809		0.014

		140,027,309		3.53	$	0.018		140,027,309	$	0.018