Equity

9 Months Ended

Sep. 30, 2012

Equity [Abstract]

Equity

7. Equity

During the nine months ended September 30, 2012 the Company issued 9,825,916 shares which included 1,450,000 shares for services provided to the Company valued at $88,000, 990,000 shares for cash proceeds of $198,000, and 7,385,916 shares for debt of $224,439 and a loss of $1,670.

For the year ended December 31, 2011, the Company issued warrants to purchase 995,000 shares of common stock in connection with the sale of 995,000 shares common stock for cash consideration of $199,000. The warrants issued had an exercise price of $0.40 per share with a three year expiration and immediate vesting. Additionally, the Company issued warrants to purchase 100,000 shares of common stock with a fair value of $12,024 in exchange for services. The warrants had an exercise price of $0.50 per share with a three year expiration and immediate vesting. As of September 30, 2012 no warrants have been exercised.

The warrants were valued using the Black-Scholes option pricing model and the inputs and fair values associated with the warrants are detailed in the December 31, 2011 year-end financial statements filed with the SEC on April 16, 2012.

A summary of warrant activity for the nine months ended September 30, 2012 is presented below:

	Warrants		Weighted Average Exercise Price	Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding, December 31, 2011	1,095,000	$	0.41	2.71	$	-
Granted	-	$	-	-
Expired/Cancelled	-	$	-	-
Exercised	-	$	-	-
Outstanding, September 30, 2012	1,095,000	$	0.41	1.96	$	-
Exercisable, September 30, 2012	1,095,000	$	0.41	1.96	$	-

The year-end intrinsic values are based on a September 28, 2012 closing price of $0.06 per share.