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Common Stock (Tables)

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Warrants outstanding and exercisable

Information with respect to warrants outstanding and exercisable at September 30, 2012 is as follows:

Nine Months Ended September30, 2012:
		Number Outstanding			Range of Exercise Price					Number Exercisable

Warrants outstanding, December 31, 2011			1,690,000			$	0.50				1,690,000
Issued			515,000			$	0.20-1.50				515,000
Exercised			(30,000	)		$	0.50				-
Forfeited			-				--				-
Warrants outstanding, September 30, 2012			2,175,000			$	0.20-1.50				2,175,000

Fair values of the Company's option awards

During July 2011, the Company granted 360,000 stock options to consultants for services to be rendered over a two-year period. The options are exercisable at $0.50 per share, half of the option shall vest on January 1 and half on June 1 following the grant date. These options had a fair value of $61,104 using the Black-Scholes option-pricing model. The grant date fair values of the Company’s option awards during the nine months ended September 30, 2012 and the year ended December 31, 2011 were estimated using the Black Scholes option pricing model with the following assumptions:

		For the Nine monthsended				For the Year ended
		September 30, 2012				December 31, 2011
Expected life (years)			-				2
Risk – free interest rate			-				0.40	%
Expected volatility			-				178	%
			-				0.00	%

During the third quarter of 2012, all the consultancy agreements noted above were terminated. As a result, the 360,000 stock options and 3,000,000 grant options were forfeited.

		Number of Options				Weighted Average Exercise Price
Balance at December 31, 2011			360,000			$	0.50
Granted			-				-
Exercised			-				-
Forfeited			(360,000	)			0.50
Balance at September 30, 2012			-				-
Options exercisable at September 30, 2012			-			$	0.50
							-

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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