v2.4.0.6
STOCK OPTIONS AND WARRANTS
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
NOTE 11 - STOCK OPTIONS AND WARRANTS

The following table summarizes all stock option activity for the year ended December 31, 2011:

 

    December 31,  
    2011  
    Shares    

Weighted-

Average

Exercise Price

Per Share

  
Outstanding, December 31, 2010     -       -  
Granted     19,648,462     $ 0.34  
Exercised     -       -  
Forfeited     -       -  
Expired     -       -  
                 
Outstanding, December 31, 2011     19,648,462     $ 0.34  
                 
Exercisable at December 31, 2011     19,648,462     $ 0.34  

 

The following table summarizes information regarding our outstanding and exercisable options at December 31, 2011:

 

      Outstanding     Exercisable  
Range of Exercise Prices    

Number of 

Option Shares

    

Weighted-

Average

Exercise Price

    

Remaining

Weighted-

Average

Contractual

Term (Years)

    

Number of 

Option Shares

    

Weighted-Average

Exercise Price

  
  $0.20 – $0.25       4,000,000     $ 0.22       4.8       4,000,000     $ 0.22  
  $0.26 – $0.30       1,000,000       0.28       4.8       1,000,000       0.28  
  $0.31 – $0.35       2,578,462       0.33       5.0       2,578,462       0.33  
  $0.36 – $0.40       12,070,000       0.38       4.7       12,070,000       0.38  
                                             
          19,648,462     $ 0.24       4.8       19,648,462     $ 4.8  

 

In determining the compensation cost of the stock options granted, the fair value of each option grant has been estimated on the date of grant using the Black-Scholes option pricing model. The assumptions used in these calculations are summarized as follows:

 

   

Year Ended

December 31,

2011

  
Expected term of options granted   5 years  
Expected volatility range     211 – 229 %
Range of risk-free interest rates     0.81 – 1.80 %
Expected dividend yield     0 %

 

 

Stock-based compensation expense associated with stock options for the years ended December 31, 2011, and 2010 was $6,618,665 and $-0- , respectively.