Common Stock Options and Warrants

6 Months Ended

Jun. 30, 2013

Notes

Common Stock Options and Warrants

9.     COMMON STOCK OPTIONS AND WARRANTS

Schedule of Employee Stock Option Activity

	Three Months Ended June 30, 2013		Weighted Average Exercise Price	Six Months Ended June 30, 2013		Weighted Average Exercise Price
Options outstanding, beginning of the period	1,446,550	$	.034	1,404,550	$	.034
Options granted during the period	1,248,348		.020	1,290,348		.020
Options canceled, expired and forfeited during the period	(876,848)		.039	(876,848)		.039
Options outstanding, end of the period	1,818,050	$	.021	1,818,050	$	.021

- 10 -

Table of Contents

The Company records compensation cost for new and modified awards over the related vesting period of such awards prospectively.

Schedule of Common Stock Purchase Warrant and Non-employee Stock Option Activity

	Three Months Ended June 30, 2013		Weighted Average Exercise Price		Six Months Ended June 30, 2013		Weighted Average Exercise Price
Warrants and non-employee stock options outstanding, beginning of the period		565,000	$	.005		565,000	$	.005
Warrants and non-employee stock options granted during the period		250,000		.003		250,000		.003
Warrants and non-employee stock options outstanding, end of the period		815,000		.004		815,000		.004