Note 4 - 2012 Stock Option and Stock Award Plan	3 Months Ended
Mar. 31, 2013
Notes
Note 4 - 2012 Stock Option and Stock Award Plan	NOTE 4 – 2012 STOCK OPTION AND STOCK AWARD PLAN During 2012, the Company approved the 2012 Stock Option and Stock Award Plan (“Plan”) established to advance the interest of the Company and its shareholders by providing an incentive to attract, retain and reward persons performing services for the Company and by motivating such persons to contribute to the growth and profitability of the Company. The maximum aggregate number of (i) shares of stock that may be issued under the Plan, and (ii) shares of stock with respect to which stock appreciation rights may be granted is 785,000, and consists of authorized but unissued or reacquired shares of stock or any combination thereof. Such number of shares of stock may be may be issued under the Plan pursuant to Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock Grants, Stock Appreciation Right Grants or any combination thereof, so long as the aggregate number of shares so issued does not exceed such number of shares, as adjusted. The Plan continues in effect until the earlier of its termination by the Board or the date on which all the shares of stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms on the Plan and the agreement evidencing awards granted under the Plan have lapsed. However, all awards shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board or the date the Plan is duly approved by the Shareholders of the Company. On December 6, 2012, a Form S-8 Registration Statement was filed with the United States Securities and Exchange Commission regarding the Plan. During the three months ended March 31, 2013, the Company granted 250,000 employee stock options to a key employee. Options covering a total of 125,000 shares will vest one year from the date of grant and options covering a total of 125,000 shares will vest two years from the date of grant. The stock options have an exercise price of $1.00 per share and will expire ten (10) years from the date of grant. The options covering 250,000 shares that were granted during the three months ended March 31, 2012 are estimated to have had a value of approximately $35,942 on the date of grant. The options vest ratably over the vesting period of two years and stock compensation expense of approximately $3,838 was expensed during the three months ended March 31, 2013. During the three months ended March 31, 2013, the Company granted 20,000 employee stock options to a key employee. Options covering a total of 20,000 shares will vest over two years from the date of grant. The stock options have an exercise price of $1.50 per share and will expire ten (10) years from the date of grant. The options covering 20,000 shares that were granted during the three months ended March 31, 2012 are estimated to have had a value of approximately $655 on the date of grant. The options vest ratably over the vesting period of two years and stock compensation expense of approximately $55 was expensed during the three months ended March 31, 2013. Also during the three months ended March 31, 2013, the Company issued 25,000 shares of restricted common stock to an officer of the Company. These shares vest one year from the date of grant. The 25,000 restricted shares are estimated to have had a value of $24,000 on the date of grant. The restricted shares vest ratably over the vesting period of one year and stock compensation expense of approximately $3,000 was expensed during the three months ended March 31, 2013. As of March 31, 2013, 420,000 securities had been awarded from the Plan with a remaining balance of 365,000 shares.

Note 4 - 2012 Stock Option and Stock Award Plan

3 Months Ended

Mar. 31, 2013

Note 4 - 2012 Stock Option and Stock Award Plan

NOTE 4 – 2012 STOCK OPTION AND STOCK AWARD PLAN

During 2012, the Company approved the 2012 Stock Option and Stock Award Plan (“Plan”) established to advance the interest of the Company and its shareholders by providing an incentive to attract, retain and reward persons performing services for the Company and by motivating such persons to contribute to the growth and profitability of the Company.

The maximum aggregate number of (i) shares of stock that may be issued under the Plan, and (ii) shares of stock with respect to which stock appreciation rights may be granted is 785,000, and consists of authorized but unissued or reacquired shares of stock or any combination thereof. Such number of shares of stock may be may be issued under the Plan pursuant to Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock Grants, Stock Appreciation Right Grants or any combination thereof, so long as the aggregate number of shares so issued does not exceed such number of shares, as adjusted.

The Plan continues in effect until the earlier of its termination by the Board or the date on which all the shares of stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms on the Plan and the agreement evidencing awards granted under the Plan have lapsed. However, all awards shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board or the date the Plan is duly approved by the Shareholders of the Company.

On December 6, 2012, a Form S-8 Registration Statement was filed with the United States Securities and Exchange Commission regarding the Plan.

During the three months ended March 31, 2013, the Company granted 250,000 employee stock options to a key employee. Options covering a total of 125,000 shares will vest one year from the date of grant and options covering a total of 125,000 shares will vest two years from the date of grant. The stock options have an exercise price of $1.00 per share and will expire ten (10) years from the date of grant. The options covering 250,000 shares that were granted during the three months ended March 31, 2012 are estimated to have had a value of approximately $35,942 on the date of grant. The options vest ratably over the vesting period of two years and stock compensation expense of approximately $3,838 was expensed during the three months ended March 31, 2013.

During the three months ended March 31, 2013, the Company granted 20,000 employee stock options to a key employee. Options covering a total of 20,000 shares will vest over two years from the date of grant. The stock options have an exercise price of $1.50 per share and will expire ten (10) years from the date of grant. The options covering 20,000 shares that were granted during the three months ended March 31, 2012 are estimated to have had a value of approximately $655 on the date of grant. The options vest ratably over the vesting period of two years and stock compensation expense of approximately $55 was expensed during the three months ended March 31, 2013.

Also during the three months ended March 31, 2013, the Company issued 25,000 shares of restricted common stock to an officer of the Company. These shares vest one year from the date of grant. The 25,000 restricted shares are estimated to have had a value of $24,000 on the date of grant. The restricted shares vest ratably over the vesting period of one year and stock compensation expense of approximately $3,000 was expensed during the three months ended March 31, 2013.

As of March 31, 2013, 420,000 securities had been awarded from the Plan with a remaining balance of 365,000 shares.

- Definition

Disclosure of accounting policy for stock option and stock incentive plans. This disclosure may include (1) the types of stock option or incentive plans sponsored by the entity (2) the groups that participate in (or are covered by) each plan (3) significant plan provisions and (4) how stock compensation is measured, and the methodologies and significant assumptions used to determine that measurement.

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