7. COMMON STOCK

9 Months Ended

Sep. 30, 2013

STOCKHOLDERS' EQUITY

NOTE 7 - COMMON STOCK

Nine Months Ended September 30, 2013

During the nine months ended September 30, 2013, the Company issued 1,200,000 shares of restricted common stock and a shareholder contributed 1,000,000 free trading shares into an escrow account to settle certain debt obligations and to raise $47,000 of capital. In connection with the same transaction, 450,000 share of free trading common stock that had a value of $13,500 were issued to certain creditors to settle outstanding debt obligations totaling $549,721 and investors paid $47,000 for 550,000 free trading common shares as more fully described in Note 5.

During the nine months ended September 30, 2013, the Company issued 2,775,000 shares of restricted common stock for $269,500 in cash to third party investors.

During the nine months ended September 30, 2013, the Company issued 66,747 shares of restricted common stock to pay for $5,339 of accounts payable obligations.

During the nine months ended September 30, 2013, the Company 1,025,000 shares of restricted common stock valued at $69,250 to consultants for services.

Nine Months Ended September 30, 2012

During the nine months ended September 30, 2012, the Company sold 839,444 shares of common stock at a weighted average price of $0.095 per share to individuals for $84,500.

During the nine months ended September 30, 2012, the Company issued 60,000 shares of restricted common stock valued at $6,800 or $0.1133 per common share to a consultant.

During the nine months ended September 30, 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.