Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity [Abstract]

Stockholders’ Equity

8.           Stockholders’ Equity

Private Placements – In March 2012, the Company issued 1,463,572 shares of its common stock at $0.35 per share through a private placement (the “March Private Placement”). The Company incurred $28,642 in closing costs from the March Private Placement and also issued warrants valued at $14,675 to Ladenburg Thalmann & Co. Inc. (“Ladenburg”), the placement agent for the March Private Placement (see Note 9).

As part of the March Private Placement, in May 2012, the Company issued an additional 702,872 shares of its common stock at $0.35. The Company incurred $7,430 in closing costs from this issuance, and also issued warrants valued at $4,455 to Ladenburg (see Note 9).

Also, in July 2012, as part of the March Private Placement, the Company received proceeds of $14,000 for 40,000 shares of common stock to be issued.

On September 29, 2012, the Company approved a subsequent equity sale reset provision for the common stock issued in connection with the March Private Placement. If the Company sells or grants any option to purchase, or sells or grants any right to re-price, or otherwise disposes of or issues, any common stock or any common stock equivalents, entitling any person or entity to acquire shares of common stock at an effective price per share that is lower than $.35 per share (such lower price hereinafter called the " Reduced Base Price "), then the purchasers of common stock during the period commencing January 1, 2012 thru December 31, 2012 shall be entitled to receive additional shares of Common Stock that reduces their per share purchase price to the Reduced Base Price.

The maximum amount that could be raised through the March Private Placement is $1,000,000. As of September 30, 2012, the Company raised $772,255 through the March Private Placement.

In April 2012, two stockholders of the Company forgave $73,888 of accrued compensation costs to the Company. The substance of the forgiveness was to provide the Company with additional capital. Accordingly, forgiveness of the accrued compensation costs is reported as a $73,888 increase in paid-in capital.