Common Stock, Options and Warrants

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note 10. Common Stock, Options and Warrants

The Company has authorized 150,000,000 shares of its common stock, $0.01 par value.  The Company had issued and outstanding 52,528,644 shares of its common stock at March 31, 2013 and December 31, 2012, respectively.  In December 2009, the shareholders of the Company approved an increase in the number of authorized common stock to 150,000,000 shares.  The increase took effect in January 2010 with the filing of the amendment to the articles of incorporation with the State of Nevada.

Other than the issuances to certain Note investors of an aggregate of 200,000 shares of the Company’s common stock, as described in Note 7 above, 1,800,000 shares of the Company’s common stock issued related to a professional services agreement, as described in Note 11 below, in the three months ended March 31, 2013, no common stock, or options to purchase common stock, were issued or granted.

2007 Incentive and Non-Qualified Stock Option Plan.  The fair value of options granted under the Company’s 2007 Incentive and Non-Qualified Stock Option Plan is recorded as compensation expense over the vesting period, or, for performance based awards, the expected service term.  During the three months ended March 31, 2013 and 2012, the Company had no compensation expense related to employee stock options.