CAPITAL TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Awards made through compensation plans or arrangements

Set forth in the table below is information regarding awards made through compensation plans or arrangements through December 31, 2012, the most recently completed fiscal year.

Equity Compensation Plan Information
Plan category	Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)		Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securitiesreflected in column (a))
Equity compensation plans approved by security holders		—		—		—
Equity compensation plans not approved by security holders		—		—		27,649,763
Total		—		—		27,649,763

Company's stock option activity

A summary of the Company’s stock option activity and related information is as follows:

	Number of Options			Exercise Price Per Share		Weighted Average Exercise Price		Number of Options Exercisable
Outstanding as of December 31, 2010		30,950,000							31,560,000
Granted		6,000,000			0.07		0.07		6,000,000
Expired		(250,000	)		0.39		0.39		(250,000	)
Outstanding as of December 31, 2011		36,700,000							36,700,000
Granted		3,000,000			0.07		0.07		3,000,000
Expired		-							-
Outstanding as of December 31, 2012		39,700,000							39,700,000

Exercise prices and weighted-average contractual lives of stock options outstanding

Exercise prices and weighted-average contractual lives of 39,700,000 stock options outstanding as of December 31, 2012 are as follows:

				Options Outstanding				Options Exercisable
Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.01		25,000,000		4.68		0.01		25,000,000		0.01
	0.07		6,000,000		8.58		0.07		6,000,000		0.07
	0.02		3,000,000		0.32		0.02		3,000,000		0.02
	0.05		1,500,000		0.79		0.05		1,500,000		0.05
	0.06		1,200,000		2.38		0.06		1,200,000		0.06
	0.07		3,000,000		7.98		0.07		3,000,000		0.07

Warrants issued at corresponding weighted average exercise price

The Company issued the following warrants at the corresponding weighted average exercise price as of December 31, 2012.

	Warrants			Weighted average Exercise Price
Outstanding as of December 31, 2010		6,000,000		$	0.07
Issued/Vested		2,000,000			0.05
Cancelled/Expired		0
Outstanding as of December 31, 2011		8,000,000			0.07
Issued/Vested		10,400,000			0.06
Cancelled/Expired		(3,000,000	)		0.05
Outstanding as of December 31, 2012		15,400,000			0.06

Date	Number of Warrants		Exercise Price		Contractual Life Remaining		Number of Shares Exercisable
October 11, 2007		3,200,000		.01		7 years		3,200,000
November 9, 2007		800,000		.01		7 years		800,000
September 8, 2009		312,000		.10-.25		1 year		312,000
November 1, 2009		1,688,000		.15-.30		1 year		1,688,000
April 26, 2012		6,000,000		0.05		3 years		6,000,000
May 29, 2012		1,500,000		0.07		1 year		1,500,000
September 10, 2012		800,000		0.07		2 years		800,000
September 19, 2012		600,000		0.07		2 years		600,000
September 27, 2012		500,000		0.07		2 years		500,000
		15,400,000						15,400,000