9. STOCK OPTIONS (Tables)

12 Months Ended

Dec. 31, 2012

Stock Options Tables

Fair value of each option grant

	December 31
Assumption	2012		2011
Dividend yield		–		–
Weighted average volatility		476.77%		–
Risk-free interest rate		0.18%		–
Expected life (years)		0.62		–

Option activity

The summary of option activity for the years ended December 31, 2012 and 2011 is presented below:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life (years)
Balance as of December 31, 2010	–			–		–
Granted	–			–		–
Exercised	–			–		–
Canceled	–			–		–
Expired	–			–		–
Balance as of December 31, 2011		–			–		–
Granted		285,000			0.08		0.25
Exercised		–			–		–
Canceled		–			–		–
Expired		(160,000	)		0.10		–
Balance as of December 31, 2012		125,000			0.06		0.25

Outstanding and exercisable options presented by price range as of December 31, 2012 are as follows:

		Options Outstanding						Options Exerciseable
				Weighted
				Average		Weighted				Weighted
		Number of		Remaining		Average		Number of		Average
Exercise		Options		Life		Exercise		Options		Exercise
Price		Outstanding		(Years)		Price		Exercisable		Price
$	0.06		125,000		0.25	$	0.06		125,000	$	0.06

The estimated fair value of the Company’s stock options is amortized over the options’ vesting period on the straight-line basis. The Company recognized the following the equity-based compensation expense and benefits during the year ended December 31, 2012 and 2011:

	December 31
	2012		2011
Stock-based compensation expense	$	14,420	$	–