9. RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

NOTE 9 - RELATED PARTY TRANSACTIONS

The Company’s CEO, CFO and the bookkeeper who is the wife of the CEO did not take any compensation for services provided to the Company during 2009 and 2010.  During the nine months ended September 30, 2012 and 2011, the Company incurred $135,000 and $231,000, respectively as compensation for the services provided by these individuals to the Company.  The Company paid $37,500 of the amount accrued during the nine months ended September 30, 2012 and $27,000 was paid during the nine months ended September 30, 2011.

The son of the Company's CEO provided certain product development services to the Company. During the nine months ended September 30, 2012, the Company recorded $21,500 in Capitalized Software Development costs related to services provided by this individual. During the nine months ended September 30, 2011, the Company issued 300,000 common shares valued at $30,000 to this individual for services rendered.

During the nine months ended September 30, 2012, the son of the Company’s CEO returned 161,000 restricted shares of the Company’s common stock as full satisfaction of a $16,100 receivable from the individual. The shares were valued at $0.10 per share in this transaction.