Note 7 - Stockholders' Deficit

6 Months Ended

Jun. 30, 2011

Stockholders' Equity Note Disclosure [Text Block]

(7)  Stockholders’ Deficit

2011 Private Placements

On January 28, 2011, we entered into a subscription agreement with David Khidasheli pursuant to which Mr. Khidasheli agreed to purchase 16,666,666 shares of our common stock (the “Shares”) at a purchase price of $0.03 per share, for a total purchase price of $500,000, which Mr. Khidasheli had advanced to us in 2010.  On February 15, 2011, we entered into a subscription agreement with Carolina Lupascu pursuant to which Ms. Lupascu agreed to purchase 6,000,000 shares of our common stock (the “Shares”) at a purchase price of $0.03 per share, for a total purchase price of $180,000, which Ms. Lupascu had advanced to us in 2010. The Shares were issued pursuant to Regulation S under the Securities Act. The subscription agreements contain customary representations and warranties by Mr. Khidasheli and Ms. Lupascu regarding their status as non-U.S. persons, their investment intent and restrictions on transfer. Mr. Khidasheli and Ms. Lupascu was granted certain piggy-back registration rights which require us to use our best efforts to register all or a portion of the Shares on the next registration statement we file with the Securities and Exchange Commission under the Securities Act. We used the proceeds of the private placement for general working capital purposes.

From January 1 through June 30, 2011, Mr. Khidasheli advanced $192,000 to the Company in anticipation of entering into future subscription agreements.  We are using the proceeds of these investments for general working capital purposes.

Warrants

At June 30, 2011, we had warrants outstanding to purchase an aggregate of 3,125,001 shares of our common stock at a weighted average price of $0.078 per share, as summarized in the following table:

	Number of Shares		Weighted Average Exercise price per share		Expiration Date
Warrants issued in connection with February 2007 Private Placement		2,500,001	$	0.077	March 27, 2012
Warrants issued to placement agents in connection with the February 2007 Private Placement		125,000	$	0.062	February 23, 2012 to March 27, 2012
Warrant issued for investment banking services		500,000	$	0.085	October 31, 2011
		3,125,001	$	0.078