COMMON STOCK

12 Months Ended

Dec. 31, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

NOTE 12. COMMON STOCK

Warrants

During the second and third quarters of 2008, in connection with $1,100,000 of short term notes payable, the Company granted warrants to W. Austin Lewis, IV for 1,100,000 shares of common stock exercisable at $.25 per share. All of these warrants expired during the second and third quarter of 2011.

Share-based Incentive Plans

During the years ended December 31, 2012, and 2011, the Company had three stock option plans that include both incentive and non-qualified options to be granted to certain eligible employees, non-employee directors, or consultants of the Company.

Share-based Incentive Plans

Active Plans:

2012 Plan

On October 15, 2012, the Company adopted the 2012 Non-Qualified Stock Option Plan (the "2012 Plan"). The purpose of the 2012 Plan, is to provide long-term incentives and rewards to those employees of the Company, and any other individuals, whether directors, consultants or advisors who are in a position to contribute to the long-term success and growth of the Company. The options granted have a 10 year contractual term and vest one hundred percent on the date of grant. There are 3,000,000 shares reserved for future issuance under this plan. Information with respect to stock options granted under this plan during the year ended December 31, 2012 is as follows:

	Number of shares		Weighted average exercise price per share
Options outstanding at December 31, 2011		—	$	—
Granted		7,000,000		0.043
Exercised		—		—
Options outstanding at December 31, 2012		7,000,000	$	0.043

2011 Plan

On February 1, 2011, the Company adopted the 2011 Non-Qualified Stock Option Plan (the "2011 Plan"), to replace the 2001 Plan discussed below, and has filed Registration Statements on Form S-8 to register 30,000,000 shares of its common stock. Under the 2011 Plan, employees and consultants may elect to receive their gross compensation in the form of options, exercisable at $.001 per share, to acquire the number of shares of the Company's common stock equal to their gross compensation divided by the fair value of the stock on the date of grant. The options granted have a 10 year contractual term and vest one hundred percent on the date of grant. Information with respect to stock options granted under this plan during the year ended December 31, 2012 and 2011 is as follows:

	Number of shares			Weighted average exercise price per share
Options outstanding at December 31, 2010		-		$	0.001
Granted		11,416,839			0.390
Exercised		(8,416,839	)		0.001
Options outstanding at December 31 2011		3,000,000			0.145
Granted		16,614,369			0.001
Exercised		(16,614,369	)		0.001
Options outstanding at December 31, 2012		3,000,000			0.015

A summary of the awards under this plan during the year ended December 31, 2012 and 2011 is as follows:

	Number of shares		Gross Compensation
	2012
Employee payroll		249,097	$	40,000
Consulting and professional fees		16,365,272		2,126,832
Total		16,614,369	$	2,166,832
	2011
Employee payroll		2,262,367	$	522,360
Consulting and professional fees		6,154,472		1,440,808
Total		8,416,839	$	1,963,168

At December 31, 2012 there were no shares reserved for issuance under this plan.

2002 Plan

The 2002 Stock Option Plan (“2002 Plan”) provides for the award of qualified and non-qualified options for up to 30,000,000 shares. The options granted have a ten-year contractual term and have a vesting schedule of either immediately, two years, or four years from the date of grant. Information with respect to stock options granted under this plan during the years ended December 31, 2012, and 2011 is as follows:

	Number of shares			Weighted average exercise price per share
Options outstanding at December 31, 2010		15,871,952		$	0.159
Granted		3,000,000			0.145
Exercised		(5,750,000	)		0.041
Options outstanding at December 31, 2011		13,121,952		$	0.104
Granted		5,000,000			0.065
Cancelled or Expired		(7,560,976	)		0.015
Exercised		(2,560,976	)		0.041
Options outstanding at December 31, 2012		8,000,000		$	0.095

There are currently no shares reserved for issuance under this plan.

2001 Plan

The 2001 Non-Qualified Stock Option Plan (the "2001 Plan") expired on January 31, 2011. The Company adopted the 2001 Plan on February 1, 2001 and filed Registration Statements on Form S-8 to register 120,000,000 shares of its common stock. Under the 2001 Plan, employees and consultants could have elected to receive their gross compensation in the form of options, exercisable at $.001 per share, to acquire the number of shares of the Company's common stock equal to their gross compensation divided by the fair value of the stock on the date of grant. Information with respect to stock options granted under this plan during the years ended December 31, 2012, and 2011 is as follows:

	Number of shares			Weighted average exercise price per share
Options outstanding at December 31, 2010		2,023,612		$	0.001
Granted		1,075,090			0.001
Exercised		(2,037,370	)		0.001
Options outstanding at December 31, 2011		1,061,332		$	0.001
Cancelled		(68,750	)		0.001
Exercised		(962,000	)		0.001
Options outstanding at December 31, 2012		30,582		$	0.001

A summary of the awards under this plan during the year ended December 31, 2011 is as follows:

	Number of shares		Gross Compensation
	2011
Employee payroll	$	17,977	$	4,200
Consulting and professional fees		1,057,113		253,100
Total	$	1,075,090	$	257,300

There are currently no shares reserved for issuance under this plan.

Option Repricing

In November 2011 the Board of Directors approved a vote to reprice 5,000,000 employee stock options. The options were originally issued on January 2008, and had an original grant price $0.415. The grant price was lowered to $0.145, which reflects the market value of the stock as of the reprice date. The repriced options continue to vest according to the original grant date. The options granted have a six year contractual term and vest one year from the date of grant. The Company recorded an additional compensation charge of $148,415 at December 31, 2011, using the Black-Scholes option pricing model with the following weighted average assumptions:

Expected term (plain-vanilla)	3 years
Expected volatility	104.12	%
Expected dividends	None
Risk free interest rate	0.01	%

The intrinsic value of options exercised during the year ended December 31, 2012, was $56,854 in exchange for $962 cash. Out of the total options exercised in 2012, 1,000,000 were exercised as additional compensation and 1,560,976 were exercised through a subscription receivable, both of which were exercised at the options grant price. The intrinsic value of options exercised during the year ended December 31, 2011, was $1,066,963 in exchange for $236,700 in cash.

Fair value of issuances

The fair value of the Company's option grants under the 2012, 2011, and 2002 Plans was estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	2012			2011
Expected term (based upon historical experience)		<1 week			<1 week
Expected volatility		118.35	%		103.26	%
Expected dividends		None			None
Risk free interest rate		0.10	%		0.02	%

The stock volatility for each grant is determined based on a review of the experience of the weighted average of historical daily price changes of the Company's common stock over the expected option term. The expected term was determined using the simplified method for estimating expected option life, which qualify as “plain-vanilla” options; and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option.

The fair value of options granted under all plans in 2012 was $532,291 which, assuming no forfeiture rate, resulted in $532,291 in additional compensation expense being charged to operations during 2012. The Company used the Black-Scholes option pricing model with the following weighted average assumptions:

Expected term (plain-vanilla)	6.67 years
Expected volatility	110.85	%
Expected dividends	None
Risk free interest rate	0.09	%

All but 2,750,000 options outstanding at December 31, 2012 are fully vested and exercisable. Information pertaining to options outstanding at December 31, 2012 is as follows:

Exercise Prices		Number of shares		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value*
	0.001		30,582		1.87	$	2,110
	0.041		5,000,000		9.61		145,000
	0.048		2,000,000		9.94		44,000
	0.065		5,000,000		9.61		25,000
	0.145		6,000,000		8.86		—
			18,030,582		9.38		216,110

*The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option 

Summary of all stock option plans during the years ended December 31, 2012, and 2011 is as follows:

	Number of Shares			Weighted Average Price
Options outstanding at December 31, 2010		17,895,564		$	0.159
Granted		20,491,929		$	0.078
Cancelled		(5,000,000	)	$	0.415
Exercied		(16,204,209	)	$	0.015
Options outstanding at December 31, 2011		17,183,284		$	0.105
Granted		28,614,369		$	0.022
Cancelled		(7,629,726	)	$	0.109
Exercied		(20,137,345	)	$	0.006
Options outstanding at December 31, 2012		18,030,582		$	0.083