Note 11 - Warrants To Purchase Common Stock

12 Months Ended

Dec. 31, 2012

Notes

Note 11 - Warrants To Purchase Common Stock

Note 11 – Warrants to Purchase Common Stock

During the years ended December 31, 2012 and 2011, in connection with services rendered, the issuance of convertible debt, and the sale of common stock the Company issued warrants to purchase 80,997 and 17,900 shares of the Company’s common stock at exercise prices of $1.00 and $3.00 per share, respectively. The Company recognized expense of $37,453 related to warrants granted for services rendered during the period and valued them at the grant date using the Black Scholes valuation model. In connection with the issuance of the July 2012 Notes “(See Note 7)”, the Company issued warrants to purchase 43,497 shares over a two-year period for an exercise price of $0.40 Canadian Dollars.  The Company recorded expense of $3,758 related to the issuance of the Notes as debt issuance costs. All warrants are still outstanding as of December 31, 2012 and expire at various dates through 2016.

A summary of warrants issued, exercised and expired for the years December 31, 2012 and 2011 follows:  

	Shares		Weighted-Average ExercisePrice		Weighted- Average Remaining Contractual Term
Outstanding at January 1, 2011		63,050		$3.00		0.63
Granted		17,900		$3.00		1.14
Outstanding at December 31, 2011		80,950		$3.00		0.75
Granted		580,997		$1.00		2.35
Outstanding at December 31, 2012		661,947		$1.25		2.15
Exercisable at December 31, 2012		661,947		$1.25		2.15