STOCKHOLDERS DEFICIENCY (Tables)

3 Months Ended

Mar. 31, 2013

Stockholders Deficiency Tables

Warrant activity for non-employees

Warrant activity for non-employees for the three months ended March 31, 2013 is as follows:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
	Number		Exercise		Contractual		Intrinsic
	of Warrants		Price		Terms		Value
Outstanding at December 31, 2012		6,305,298	$	0.12
Granted		0
Reclassification		0
Outstanding and exercisable at March 31, 2013		6,305,298	$	0.12		3.91	$	-
Weighted Average Grant Date Fair Value			$	0.02

Value of Warrants

The warrants were valued at $0.039 per warrant or $5,571 using a Black-Scholes option-pricing model with the following assumptions:

Stock Price	$	0.039
Expected Term	5 Years
Expected Volatility		239	%
Dividend Yield		0
Risk Free Interest Rate		0.29	%

The warrants were valued at $0.017 per warrant or $25,500 using a Black-Scholes option-pricing model with the following assumptions:

Stock Price	$	0.017
Expected Term	2.5 Years
Expected Volatility		267	%
Dividend Yield		0
Risk Free Interest Rate		0.35	%

Warrant activity for employees

The Company has granted warrants to employees. Warrant activity for employees the year ended March 31, 2013 is as follows:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
	Number		Exercise		Contractual		Intrinsic
	of Warrants		Price		Terms		Value
Outstanding at December 31, 2012		218,422	$	0.25
Forfeited		0
Reclassification		0
Outstanding at March 31, 2013		218.422	$	0.25		2.62	$	-
Exercisable at March 31, 2013		218,422	$	0.25
Weighted Average Grant Date Fair Value			$	0.08

Options activity

The Company has granted options to employees. Options activity for the year ended March 31, 2013 is as follows:

			Weighted			Weighted Average
			Average			Remaining		Aggregate
	Number		Exercise			Contractual		Intrinsic
	of Options		Price			Terms		Value
Outstanding at December 31, 2012		1,363,039		$	0.119
Granted		0
Forfeited		0
Outstanding at March 31, 2013		1,363,039		$	0.119		8.22		$	-
Exercisable at March 31, 2013		781,372		$	0.08
Weighted Average Grant Date Fair Value				$	0.03

Value of option

The options were valued at $0.0252 per option or $47,880 using a Black-Scholes option-pricing model with the following assumptions:

Stock Price	$	0.0252
Expected Term	6.5 Years
Expected Volatility		257	%
Dividend Yield		0
Risk Free Interest Rate		0.33	%