12. RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

NOTE 12 - RELATED PARTY TRANSACTIONS

NOTE 12 – RELATED PARTY TRANSACTIONS

The Company periodically receives funding from its CEO and CFO to fund operating costs of the Company.  These individuals or companies they control advanced to the Company $11,450 and $6,250 during the years ended December 31, 2012 and 2011, respectively.  As of December 31, 2012, the Company had not repaid any of the 2012 advances. All of the 2011 advances were repaid by the Company during the year ended December 31, 2011.  Advances made by these individuals are reported in the Company’s Balance Sheets under the heading “Related Party Notes Payable”.

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 year ended December 31, 2012, the Company recorded $180,000 in wages as compensation for the services provided by these individuals to the Company.  The Company paid some amounts owed to the CEO and bookkeeper during the year ended December 31, 2012.

In connection with the sale of non-core assets in May 2011 described in Note 12 to the financial statements, the Company paid a company controlled by the CEO $131,203 as compensation for work done on the transaction.

During 2011, the son of the Company's CEO provided product development services to the Company. During the year ended December 31, 2011, the Company issued 300,000 common shares valued at $30,000 to this individual for services rendered.  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 recorded the receivable as a component of equity in their December 31, 2011 balance sheet. The shares were returned to the Company and cancelled during the year ended December 31, 2012.