Shareholders' Equity

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Shareholders' Equity

4. Shareholders’ Equity

Common Stock

In January 2013, the Company issued 3,000,000 shares of restricted common stock to two vendors for services. The fair value of the vested portion of these shares was determined to be $194,500. In June 2013, the Company issued 1,000,000 shares of restricted common stock to one vendor for services. The fair value of the vested portion of these shares was determined to be $50,000.

During the six months ended June 30, 2013, holders of Convertible Debentures with a face value of $263,158 converted their debentures into 4,592,636 shares of restricted common stock. In addition, associated with these debentures, the Company paid $33,988 in accrued interest by issuing 472,746 shares of restricted common stock.

In April 2013, a shareholder converted 500,000 shares of Series C Convertible Preferred stock into 500,000 shares of restricted common stock.

Warrants

During the six months ended June 30, 2013, in conjunction with the sale of Convertible Debentures, the Company issued five year common stock purchase warrants to acquire 10,293,052 shares to holders of the Debentures and as compensation to Agents. These warrants have exercise prices ranging from $0.0745 to $0.1287 per share.

In addition, during the six months ended June 30, 2013, the holders of common stock purchase warrants to acquire 2,206,273 shares at an exercise price of $0.1287 exchanged their warrants for new warrants to acquire 4,031,956 shares at an exercise price of $0.0745 under the exchange provisions of their Convertible Debentures.

The balance of all warrants outstanding as of June 30, 2013 is as follows:

		Weighted
		Average
		Exercise
Warrants	Shares	Price
Outstanding at January 1, 2013	59,066,992	$	0.18
Granted	10,293,052	$	0.07
Exchanged cancelled	(2,206,273)	$	0.13
Exchanged issued	4,031,956	$	0.08
Cancelled	-	$	-
Exercised	-	$	-
Outstanding at June 30, 2013	71,185,727	$	0.16
Exercisable at end of the period	71,185,727	$	0.16