COMMON STOCK, WARRANTS AND OPTIONS

3 Months Ended

Mar. 31, 2012

COMMON STOCK, WARRANTS AND OPTIONS [Abstract]

COMMON STOCK, WARRANTS AND OPTIONS [Text Block]

NOTE 6 - COMMON STOCK, WARRANTS AND OPTIONS:

On March 19, 2012, the Company issued 7,500 shares of common stock to a consultant as part of the consultant's compensation.  As long as the consultant continues with the Company, the consultant will receive three more tranches of 7,500 shares every three months for the following nine months.  In addition 30,000 options to purchase common stock were issued to the consultant as part of its compensation.  The options vest in four equal installments starting three months from the issue date and every three months for the following nine months.  These options were valued using a Black-Scholes model at $8,570, of which $1,498 was expensed in the three-month period ended March 31, 2012.  The options are being accounted for under the variable method as per ITF-96-18 and $8 of the expense was attributable to this method.

On February 16, 2012, the Company issued 203,125 options to purchase common stock to executives of the Company as part of their 2011 bonus.  The options are exercisable immediately at $.50 per share, which was the last price of stock traded on that day, and they expire in five years from date of issue.

As of March 31, 2012, the Company had no warrants outstanding to purchase shares of common.