Note 9. Stock Warrants: Class of Warrant or Right, Reason for Issuing to Nonemployees (Policies)

6 Months Ended

Jun. 30, 2014

Policies

Class of Warrant or Right, Reason for Issuing to Nonemployees

In February 2013, the Board of Directors approved a plan to modify all Company warrants by offering any warrant holder who exercises a “replacement warrant”.  All other terms and conditions of all outstanding warrants remain unchanged.  In February and March 2013, five warrant holders exercised a total of 127,264 warrants at $1.00 and were issued a total of 127,264 shares of restricted common stock and 127,264 replacement warrants.  All of the proceeds from the exercises were used in operations.