Shareholders' Equity

3 Months Ended

Sep. 30, 2011

Equity

Stockholders' Equity Note Disclosure [Text Block]

NOTE 2 – SHAREHOLDERS’ EQUITY

Reverse Stock Split – On December 17, 2010, the board of directors approved a 200:1 reverse split of the outstanding common shares and a 50:1 reverse split on the number of authorized common shares.  The board also approved a 50:1 reverse split on the number of authorized preferred shares and approved a 200:1 reverse split of the authorized and the outstanding preferred stock designated as series A convertible.  The Company has retrospectively applied the reverse split for all periods presented.  Following the reverse split, the Company has 1,000,000 shares of authorized and outstanding series A convertible preferred stock; 9,000,000 shares of authorized undesignated preferred stock; and 160,000,000 shares of authorized common stock with 22,893,227 common shares outstanding.

Common Stock – In February 2010, the Company awarded to an officer a total of 50,000 shares of unvested common stock. The common stock awarded vested over a one-year period.  Compensation expense charged against operations for this stock-based award during the three and nine months ended September 30, 2011 was $0 and $5,667, respectively and is included in salary expense in the accompanying consolidated financial statements. From February 2011 forward, the common stock was fully vested. In September 2011, the Board of Directors approved the awarding of 418,000 shares of common stock to certain Officers in exchange for forgiveness of $166,796 of previously accrued but unpaid Salaries. In September 2011, the Company awarded to an officer a total of 100,000 shares of common stock. Compensation expense in the amount of $47,000 was recorded. In September, 2011 the Company approved the sale of 50,000 shares of common stock to an Officer in exchange for an interest free non-recourse note in the amount of $12,500. In September 2011, the Company approved the issuance 135,763 shares of common stock for past investor relations consulting.