7. COMMON STOCK

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

NOTE 7 - COMMON STOCK

Quarter Ended March 31, 2013

During the three months ended March 31, 2013, the Company issued 1,200,000 shares of common stock to settle certain debt obligations and to raise $47,000 of capital as more fully described in Note 5.

During the three months ended March 31, 2013, the Company issued 450,000 share of common stock that had a value of $13,500 to certain creditors to settle outstanding debt obligations totaling $549,721 as more fully described in Note 5.

During the quarter ended March 31, 2013, the Company issued 150,000 shares of common stock for $7,500 in cash to a third party investor.

During the quarter ended March 31, 2013, the Company issued 66,747 shares of common stock to pay for $5,340 of accounts payable obligations.

During the quarter ended March 31, 2013, the Company 125,000 shares of common stock valued at $6,250 to a consultant for services.

Quarter Ended March 31, 2012

During the three months ended March 31, 2012, the Company sold 364,444 shares of common stock at a weighted average price of $0.095 per share to individuals for $34,500.

During the three months ended March 31, 2012, the Company received back 161,000 shares of common stock from the son of the Company’s CEO as full repayment or a $16,100 receivable owed to the Company. Because of the related party nature of the transaction, the receivable was classified within Stockholders’ Deficit on the December 31, 2011 balance sheet. The shares were subsequently cancelled by the Company.