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Note 9 - Subsequent Events
12 Months Ended
Dec. 31, 2011
Subsequent Events [Text Block]

Note 10 – Subsequent Events


In the first quarter of 2012, the Company raised $500,000 exclusively from accredited European investors (including $275,000 from a Newton affiliate) pursuant to a private placement of 500,000 shares of common stock at a price of $1.00 per share. There was no warrant issued pursuant to this round; however, simultaneously Newton affiliates received three year warrants to purchase 500,000 shares at $1.00 per share in connection with the settlement of certain claims by and between the Company and Newton.


The Cornerstone acquisition was closed, and the contemplated common stock and warrants issued, on March 30, 2012, pursuant to a definitive Membership Interest Purchase Agreement between the Company and Messrs. Bryce Johnson, Kelly and Hils. Bryce Johnson became the Company’s Chief Operating Officer on January 1, 2012, and on January 1, 2012, the Company moved its operations to a 5,000 square foot facility owed by Mr. Johnson in Scottsdale, Arizona. The Company intends to negotiate with Mr. Johnson a lease on fair market terms. The Company has determined that it is not practicable to provide summarized financial data for Cornerstone. The assets acquired were substantially intellectual property, and the Company did not assume any significant liabilities.


In April 2012, the Company purchased 100,000 shares of common stock from a company owned by its Director and co-founder Fred Barker at a price of $.25 per share. Of the $25,000 purchase price, $14,000 was paid in 2011. The shares will be held as treasury stock at the date of closing.