STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Weighted average stock option assumptions

The weighted average assumptions used in the model are outlined in the following table:

	December 31, 2010
Risk-free rate of interest		1.81	%
Dividend yield		0	%
Volatility of common stock		321.74	%
Expected term	5.3125 years

Exercising of Stock Warrants and Options

A summary of the status of the warrants and options issued by the Company as of September 30, 2012 and December 31, 2011 are as follows:

	September 30, 2012				December 31, 2011
	Number of Warrants & Options		Weighted Average Exercise Price		Number of Warrants & Options		Weighted Average Exercise Price
Outstanding at beginning of year		560,000	$	0.10		560,000	$	0.10
Granted		-		-		-		-
Exercised for cash		-		-		-		-
Exercised for cashless		-		-		-		-
Expired and cancelled		-		-		-		-
Outstanding, end of period		560,000	$	0.10		560,000	$	0.10