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10. SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2012
Subsequent Events [Text Block]
10.           SUBSEQUENT EVENTS

Subsequent to March 31, 2012 pursuant to a private placement, the Company issued 3,800,000 shares of common stock for cash with a per share price of $0.25 per share or $950,000.  The Company incurred $76,000 of capital raising fees that were paid in cash to American beacon, our placement agents, and will be charged to additional paid-in capital in the period.  Further, the Company is obligated to issue 190,000 warrants, each with an exercise price of $0.275 and 5 year term, to Allied Beacon, the placement agents.  Jay Potter, our Director, is a registered representative of Allied Beacon. (See note 9)

In April 2012, the Company issued 100,000 shares of its common stock as a partial conversion of a note payable balance.  The Company will record a reduction of accrued interest of $10,886, a reduction of outstanding debt of $22,114 and a gain on the settlement of debt of $4,000 related to this transaction. (See note 5)