Equity

9 Months Ended

Sep. 30, 2011

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 3. STOCKHOLDERS' EQUITY

PREFERRED STOCK

The Company has provided for the issuance of 250,000 shares, par value $1,000

per share, of convertible Preferred Series B stock ("Series B"). Each Series B

share is convertible into 166.667 shares of the Company's common stock upon

election by the shareholder of the Series B Share, with dates and terms set by

the Board. No shares of Series B preferred stock are outstanding.

COMMON STOCK

The Company has 250,000,000 authorized shares of common stock, par value $.001,

with 67,060,030 shares issued and outstanding as of September 30, 2011.

STOCK BASED COMPENSATION

For the nine months ending September 30, 2011, the Company recognized $23,100 in

professional and consulting fees expense related to stock issued, which is

recorded in general and administrative expenses.

STOCK OPTIONS AND WARRANTS

NON-EMPLOYEE STOCK OPTIONS AND WARRANTS

The Company accounts for non-employee stock options under FASB ASC Topic 505

"EQUITY-BASED PAYMENTS TO NON-EMPLOYEES", whereby options costs are recorded

based on the fair value of the consideration received or the fair value of the

equity instruments issued, whichever is more reliably measurable. For the

quarter ending September 30, 2011, no options were issued, exercised or

cancelled.

The Company currently has outstanding warrants expiring December 31, 2014 to

purchase an aggregate of 6,000,000 shares of common stock; these warrants

consist of warrants to purchase 2,000,000 shares at an exercise price of $.025

per share, and warrants to purchase 4,000,000 shares at an exercise price of

$0.02 per share. In July 2009, the Company issued additional warrants expiring

June 30, 2014 to purchase an aggregate of 500,000 shares of common stock at an

exercise price of $0.125 per share. In 2010, the Company issued additional

warrants expiring in 2015 to purchase an aggregate of 336,000 shares of common

stock at an exercise price of $0.125 per share. During 2011, the Company issued

additional warrants expiring in 2016 to purchase an aggregate of 168,000 shares

of common stock at an exercise price of $0.125 per share.

On September 30, 2011, the Company had the following outstanding warrants:

                                     Remaining           Exercise Price           Weighted

Exercise         Number of       Contractual Life        Times Number           Average

  Price           Shares           (in years)           of Shares           Exercise Price

 -----           ------           ----------           ---------          --------------

$0.025       2,000,000              4                    $ 50,000

$0.020       4,000,000              4                 $ 80,000

$0.125           500,000           3.5                 $ 62,500

$0.125           504,000           4.5                 $ 63,000

            ----------                               ---------              -------

            7,004,000                               $ 255,500               $ 0.036

           ==========                               =========              =======

                                                       Weighted

                                                       Average      Remaining

                                       Number of      Exercise     Contractual Life

      Warrants                        Shares         Price         (in years)

      --------                        ------         -----         ----------

Outstanding at January 1, 2011       6,836,000         $0.044

                                                     ------

Issued                                168,000            0.125

Exercised                            --                  --

Expired/Cancelled                      --            --

                                    ---------      ------

Outstanding at September 30, 2011      7,004,000      $0.036            4.0

                                       ---------      ------            ---

Exercisable at September 30, 2011      7,004,000        $0.036          4.0

                                       ---------      ------            ---

EMPLOYEE STOCK OPTIONS

The Company accounts for employee stock options under FASB ASC Topic 718

"COMPENSATION-STOCK COMPENSATION". The Company issued no employee stock options

and had none outstanding as of September 30, 2011.