XML 48 R22.htm IDEA: XBRL DOCUMENT
v2.4.0.6

STOCK PURCHASE WARRANTS AND OPTIONS | 12 Months Ended
--- | ---
Dec. 31, 2012
STOCK PURCHASE WARRANTS AND OPTIONS [Abstract] |
STOCK PURCHASE WARRANTS AND OPTIONS | NOTE 16 - STOCK PURCHASE WARRANTS AND OPTIONS A summary of the Company's warrant activity December 31, 2012 and December 31, 2011 is presented below: Warrants Following is a summary of warrants outstanding:
|  | For the Year Ended |
|  | December 31, 2012 |  |  | December 31, 2011 |
|  | Shares |  |  | Weighted Avg Exercise Price |  |  | Shares |  |  | Weighted Avg Exercise Price |
Outstanding at beginning of period |  |  | 3,300,000 |  |  | $ | 0.14 |  |  |  | - |  |  |  | - |
Granted |  |  | 4,470,000 |  |  | $ | 0.09 |  |  |  | 3,300,000 |  |  | $ | 0.14 |
Exercised |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Forfeited |  |  | 2,750,000 |  |  | $ | 0.10 |  |  |  | - |  |  |  | - |
Expired |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Outstanding at end of period |  |  | 5,020,000 |  |  | $ | 0.09 |  |  |  | 3,300,000 |  |  | $ | 0.14 |
Exercisable at end of period |  |  | 5,020,000 |  |  | $ | 0.09 |  |  |  | 3,300,000 |  |  | $ | 0.14 |
Weighted average grant date fair value |  |  |  |  |  | $ | 0.06 |  |  |  |  |  |  | $ | 0.10 |
Weighted average remaining contractual term |  |  |  |  |  |  | 3.96 |  |  |  |  |  |  |  | 4.03 |
On August 15, 2012, warrants to purchase 1,320,000 shares of common stock at $0.10 per share were issued to a related party in conjunction with a convertible note. The warrants were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, risk free interest rate of .102% and a term of 5 years. On May 11, 2012 warrants to purchase 275,000 shares of common stock at $0.10 per share were issued to an existing accredited investor in conjunction with a convertible note. As consideration for this further investment, the 250,000 existing warrants with a strike price $.10 were cancelled and reissued with a strike price of $0.075 per share. The new and existing warrants were both valued on the modification date using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, a risk free interest rate of 0.89% and a term of 5 years and 3 years, respectively. There was no additional expense resulting from the modification. On February 24, 2012 warrants to purchase 1,375,000 shares of common stock at $0.10 per share were issued to an existing accredited investor in conjunction with a convertible note. As consideration for this further investment, the 1,250,000 existing warrants with a strike price $.10 were cancelled and reissued with a strike price of $0.075 per share. The new and existing warrants were valued on the modification date using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, a risk free interest rate of 0.89% and a term of 5 years. There was no additional expense resulting from the modification. On July 18, 2011, warrants to purchase 1,250,000 shares of common stock at $0.10 per share were issued to an accredited investor in conjunction with a convertible note. The warrants were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 347.62%, a risk free interest rate of 1.45% and a term of 5 years. On July 15, 2011, warrants to purchase 1,250,000 shares of common stock at $0.10 per share were issued to an accredited investor in conjunction with a convertible note. The warrants were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 347.62%, a risk free interest rate of 1.46% and a term of 5 years. On July 14, 2011, warrants to purchase 250,000 shares of common stock at $0.10 per share were issued to an accredited investor in conjunction with a private offering. The warrants were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 347.62%, a risk free interest rate of .66% and a term of 3 years. On May 16, 2011, warrants to purchase a total of 500,000 shares of common stock at $0.10 per share were issued to three accredited investors in conjunction with a private offering. The warrants were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 347.62%, a risk free interest rate of .93% and a term of 3 years. On January 7, 2011, warrants to purchase 50,000 shares of common stock at $0.10 per share were issued to an accredited investor in conjunction with a private offering. The warrants were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 347.62%, a risk free interest rate of 1.02% and a term of 3 years. A summary of the Company's option activity December 31, 2012 and December 31, 2011 is presented below: Options Following is a summary of options outstanding:
|  | For the Year Ended |
|  | December 31, 2012 |  |  | December 31, 2011 |
|  | Shares |  |  | Weighted Avg Exercise Price |  |  | Shares |  |  | Weighted Avg Exercise Price |
Outstanding at beginning of period |  |  | - |  |  |  | - |  |  |  | 15,000,000 |  |  | $ | 3.000 |
Granted |  |  | 350,000 |  |  | $ | 0.035 |  |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Forfeited |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Expired |  |  | - |  |  |  | - |  |  |  | 15,000,000 |  |  | $ | 3.000 |
Outstanding at end of period |  |  | 350,000 |  |  | $ | 0.035 |  |  |  | - |  |  |  | - |
Exercisable at end of period |  |  | 100,000 |  |  | $ | 0.035 |  |  |  | - |  |  |  | - |
Weighted average grant date fair value |  |  |  |  |  | $ | 0.04 |  |  |  |  |  |  |  | - |
Weighted average remaining contractual term |  |  |  |  |  |  | 4.59 |  |  |  |  |  |  |  | - |
On August 2, 2012, the Company issued 250,000 options valued at $0.04 per options for a total of $10,000 to its President and CFO. The options vest equally every six months over a three year period. The options were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, risk free interest rate of 0.61% and a term of 5 years. The expense in 2012 was not material. On August 2, 2012, the Company issued 100,000 options to its new Chief Operating Officer. The options vest equally every six months over a three year period. The options were valued at $0.04 per option using the Black-Scholes model with a dividend rate of 0%, volatility of 462.61%, risk free rate of 0.61% and a term of 5 years. On December 21, 2012, the COO was terminated. As part of the settlement agreement, all 100,000 options immediately vested and the Company recognized $4,000 total expense. On July 7, 2009 three consultants were issued a series of options as follows: 1,000,000 share option to acquire shares at $1.00 per share 1,000,000 share option to acquire shares at $2.00 per share 1,000,000 share option to acquire shares at $3.00 per share 1,000,000 share option to acquire shares at $4.00 per share 1,000,000 share option to acquire shares at $5.00 per share These options expired on August 1, 2011.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration