7. STOCKHOLDER’S EQUITY

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

STOCKHOLDER’S EQUITY

In December 2012, the Company had stock subscription of 10,200,000 shares of its common stock at a price of $0.05 per share.  This was part of an offering in a private investment in the Company’s common stock. The stock subscription was made up of $186,132 of cash from private investors, the extinguishment of $23,868 of interest on a note with one of the private investors, and the exchange of $300,000 of short term debt with Mr. John Steffens, the Company’s Chairman. Additionally, the investors were issued warrants to purchase common stock of the Company at a strike price of $0.20 per share.  The warrants expire in five years.  2,040,000 warrants were issued to these investors.  In March 2013, the offering was officially closed and the Company issued 11,840,241 common shares, of which 10,200,000 were attributable to the stock subscription at December 31, 2012, in exchange for $592,012.