Note 11 - Warrants to Purchase Common Stock

12 Months Ended

Dec. 31, 2013

Note 11 - Warrants To Purchase Common Stock

Note 11 - Warrants to Purchase Common Stock

Note 11 – Warrants to Purchase Common Stock

During the years ended December 31, 2013 and 2012, in connection with services rendered, the issuance of convertible debt, and the sale of common stock the Company issued warrants to purchase 9,887,169 and 580,997 shares of the Company’s common stock at exercise prices of $1.00 and $0.25 to $1.00 per share, respectively. The Company recognized expense of $0 in 2013 and $41,015 in 2012 related to warrants granted for services rendered during the period and valued them at the grant date using the Black Scholes valuation model. All warrants are still outstanding as of December 31, 2013 and expire at various dates through 2016.

A summary of warrants issued, exercised and expired for the years ended December 31, 2013 and 2012 follows:  

	Shares		Weighted-AverageExercisePrice		Weighted-AverageRemaining Contractual Term
Outstanding at December 31, 2011		80,950	$	3.00		0.75
Granted		580,997	$	.70		1.35
Outstanding at December 31, 2012		661,947	$	.80		1.31
Granted		9,887,169	$	1.00		1.36
Expired		(63,050)	$	3.00		—
Outstanding at December 31, 2013		10,486,066	$	1.00		1.36
Exercisable at December 31, 2013		10,486,066	$	1.00		1.36