Note 9 - Stockholder's Equity

6 Months Ended

Jun. 30, 2014

Note 9 - Stockholders Equity

Note 9 - Stockholders' Equity

NOTE 9 - STOCKHOLDER’S EQUITY

During the six months ended June 30, 2014, the Company raised gross proceeds of $661,025 through the sale of 4,022,991 shares of its Common Stock to accredited investors in private placement transactions at a price of $0.165 per share.  Each investor also received a five-year warrant to purchase one share of common stock for every four shares purchased at an exercise price of $0.50 per share. In addition, in March 2014, the Company borrowed $100,000 from an accredited investor pursuant to a six-month convertible promissory note bearing interest at 10% per year. The note is convertible at $.165 per share with the same warrant consideration as for the shares privately sold as set forth above.  The Company incurred $25,451 of securities and debt issuance costs representing commissions paid to broker-dealers who assisted these transactions along with 127,256 warrants.