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10. Stockholder's Equity
 3 Months Ended
Mar. 31, 2013
Equity [Abstract]  
Stockholder's Equity

Issuance of Common Stock for Cash

 

No shares or warrants to purchase shares of the Company’s common stock were issued for cash in the first three months of 2013.

 

During the three month period ended March 31, 2012, the Company sold shares of its restricted common stock directly and through the exercise of outstanding stock purchase warrants as follows: 1,102,500 shares for $2.00 per share ($2,205,000), and 200,000 shares as an exercise of warrants for $.30 per share ($60,000). Expenses of $183,878 connected to the issuance of the unregistered shares were deducted from additional paid in capital. Common stock sold is restricted as defined under Rule 144. In management's opinion, the offer and sale of the securities were made in reliance on exemptions from registration provided by Section 4(2) and Rule 506 of Regulation D of the Securities Act of 1933, as amended and other applicable Federal and state securities laws. Proceeds received on sales of common stock were used for general corporate purposes and capital improvements.

 

Issuance of Common Stock for Services

 

The Company did not issue any stock to the directors for services during the first three months of 2013. The remaining 3,921 prepaid shares from the issuance of stock on January 27, 2012, were treated as awarded as of March 31, 2013, with $6,783 charged to expense and $2,628 charged against additional paid in capital. This expense is classified with general and administrative expense in the consolidated statement of operations.

 

At December 31, 2011, the Company declared, but did not issue, 95,835 shares of unregistered common stock to be paid to its directors for services, having a fair value of $230,004, based on the current stock price at the date declared. On January 27, 2012, the company issued 149,500 shares of unregistered common stock with a fair market value of $401,819 to the Directors as compensation for past and future services. During the first three months of 2012, the Company awarded 22,883 of the remaining 53,665 shares, and 2,710 new shares, of unregistered common stock to its directors for services. This expense is classified with general and administrative expense in the consolidated statement of operations for the period ended March 31, 2011.

 

Common Stock Warrants

 

The Company's Board of Directors has the authority to issue stock warrants for the purchase of preferred or unregistered common stock to directors and employees of the Company.

 

Transactions in common stock warrants are as follows:

 

    Number of Warrants     Exercise Prices  
Balance, December 31, 2010     725,000     $ .20 - $.75  
Warrants exercised     (125,000 )   $ .30 - $.40  
Balance, December 31, 2011     600,000     $ .30 - $.60  
Warrants issued     1,734,667     $ 2.50 - $4.50  
Warrants exercised     (250,000 )   $ .30 - $2.50  
Warrants expired     (150,000 )   $ .30 - $.40  
Balance, December 31, 2012     1,934,667     $ .25 - $4.50  
No activity first quarter of 2013     -       -  
Balance, March 31, 2013     1,934,667     $ .25 - $4.50  

 

The above common stock warrants expire as follows:
         
Year ended December 31:        
2013     50,000  
2014     1,157,750  
2015     476,917  
Thereafter     250,000  
      1,934,667