8. COMMON STOCK

12 Months Ended

Dec. 31, 2012

CommonStockAbstract

NOTE 8 - COMMON STOCK

NOTE 8 – COMMON STOCK

2012 Common Stock Issuances and Cancellations

On February 22, 2011, the Company issued 250,000 shares of common stock at $0.15 per share to an investor resulting in cash proceeds to the Company of $37,500.

On March 12, 2012, the Company sold 194,444 shares of restricted common stock for $0.09 per share to an individual for $17,500.

From March 12, 2012 to November 1, 2012, the Company sold 920,000 shares of restricted common stock for $0.10 per share to individuals for $91,250.

On May 8, 2012, the Company issued 60,000 shares of restricted common stock for consulting services valued at $6,800 or $0.113 per share.

On June 13, 2012, the Company sold 100,000 shares of restricted common stock for $0.125 per share to individuals for $12,500.

On February 27, 2012, the son of the Company’s CEO returned 161,000 shares of restricted common stock to the Company to satisfy a $16,100 related party receivable.

2011 Common Stock Issuances and Cancellations

On February 1, 2011, the Company sold 250,000 shares of restricted common stock at $0.15 per share to two individuals for $37,500.

On February 9, 2011, the Company received back 1,000,000 shares of restricted common stock from an investment banking firm and $2,500 in cash as a result of cancelling their agreement with the Company.  The investment banking firm had been engaged to assist the Company with finding financing sources.  The Company recorded a credit to other income of $155,000 in connection with the cancellation and retirement of the shares and the receipt of the cash.

During the year ended December 31, 2011, the Company issued 147,293 shares to third parties to settle outstanding accounts payable obligations for services provided.  The shares were issued at various times throughout 2011 at a weighted average price of $0.15 per share.

On March 3, 2011, the Company cancelled its agreement with a private investor.  Pursuant to the terms of the cancellation, the Company received back 150,000 shares of common stock and $6,500 in cash.  The Company recorded a credit to other income of $22,000 in connection with the cancellation and retirement of the shares and the receipt of the cash.

On September 28, 2011, the Company issued 44,000 shares in exchange for an $11,000 stock deposit that had been received from a former officer of the Company.

On Setember 28, 2011, the Company issued 300,000 shares to the son of the Company's CEO in exchange for product development services and a commitment to work for the Company on a full-time basis.  As of December 31, 2011, the CEO’s son owes the Company back 161,000 shares of common stock because he is not employed with the Company on a full-time basis.  The shares were valued at $0.10 per share or $16,100 and the Company has recorded the receivable as a component of equity in their December 31, 2011 balance sheet.