Note 4. Common Stock Options and Warrants

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

4.     Common Stock Options and Warrants.  As of December 31, 2012 there remained 2,217,817 shares underlying our warrants related to our January 2008 financing arrangement that would have been available for future sale and the sale of these shares may depress the market price of our common stock.  In addition the warrants have an anti-dilution ratchet feature that could cause the number of warrants to increase and the exercise price to decrease if we should have any non exempt stock, option or warrant issuances at less than the $0.0202 per share. The aforementioned warrants expired unexercised and worthless at the close of business on January 8, 2013.

A summary of the Company’s stock option activity and related information for the period ended March 31, 2013 is as follows:

	Options		Price Range
Outstanding December 31, 2012		1,852,792	$	0.040	-	0.125
Granted		-			-
Cancelled/Expired		100,000			0.075
Exercised		-			-
Outstanding March 31, 2013		1,752,792		0.040	-	0.125
Exercisable March 31, 2013		1,752,792	$	0.040	-	0.125

A summary of the Company’s stock warrant activity and related information for the period ended March 31, 2013

	Warrants		Price Range
Outstanding December 31, 2012		6,642,317	$	0.0202	-	0.10
Granted		-			-
Cancelled/Expired		3,277,817		0.0202	-	0.10
Exercised		-				-
Outstanding March 31, 2013		3,364,500		0.03	-	0.10
Exercisable March 31, 2012		3,364,500		0.03	-	0.10