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9. COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]  
9. COMMITMENTS AND CONTINGENCIES

On September 14, 2007, the Company entered into a stock purchase agreement, under which it agreed to acquire Wow Technologies, Inc. (“Wow”) for up to 4,220,020 shares of common stock. The Company agreed to issue one share of its common stock for each 14 shares of Wow common stock presented for exchange. In addition, the Company agreed to allow $280,000 of convertible notes issued by Wow to convert into shares of the Company's common stock, such that Wow convertible note holders would be entitled to receive the same number of shares of Company common stock that they would have received had they converted their Wow notes into Wow common stock immediately prior to the share exchange agreement. The maximum number of shares issuable for Wow common stock and in conversion of Wow convertible notes was 4,220,020.

The Company agreed to conduct an initial closing when certificates representing at least 50.1% of ownership of Wow were presented for exchange. The Company held the initial closing in December 2007, and has continued to issue shares of its common stock in exchange for Wow common stock as certificates are presented since that date. The Company issued 2,479,826 shares, 329,711 shares, 524,688 shares, 11,430 shares, 5,322 and 715 in exchange for Wow common stock in 2007, 2008, 2009, 2010, 2011 and 2012 respectively. The Company is contingently not obligated to issue further shares for exchange after December 31, 2012.

Office lease – The Company has an operating lease for an office space that expires May 31, 2013. The monthly lease payment totals $4,396 per month. Lease payments plus common area maintenance fees for the year ended December 31, 2011 and 2012 totaled $39,803 and $44,520 respectively. Minimum office lease obligations for 2013 total $21,980.

 

Pending of threatened litigation – We may become involved in litigation from time to time in the ordinary course of business. However at December 31, 2012, to the best of our knowledge, no such litigation exists or is threatened.