NOTE 5 - STOCK OPTIONS

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

NOTE 5 - STOCK OPTIONS

NOTE 5 – STOCK OPTIONS

During the nine months ended September 30, 2013, the Company issued 4,535,714 warrants as part of the offering of the senior secured convertible notes. During the nine months ended September 30, 2013, 800,000 warrants were exercised for cash proceeds of $120,000. During the nine months ended September 30, 2013, 100,000 stock options were exercised for cash proceeds of $11,000. During the nine months ended September 30, 2013, 900,000 stock options were exercised through a cashless exercise of options resulting in the issuance of 639,606 shares of common stock.

During the nine months ended September 30, 2012, stock options representing 150,000 shares at $0.05 per share were exercised. No warrants were exercised.

Stock Warrants and Options
Stock warrants/options outstanding and exercisable on September 30, 2013 are as follows:
Exercise Price per Share		Shares Under Option/warrant		Remaining Life in Years
	Outstanding
$	1.00		4,535,714		4.46
$	0.35		212,500		0.25
$	0.20		100,000		0.25
$	0.19		200,000		4.25
$	0.15		737,500		1.25
$	0.115		300,000		4.08
$	0.11		150,000		1.55
$	0.076		7,500,000		0.50
$
	Exercisable
$	1.00		4,535,714		4.46
$	0.35		212,500		0.25
$	0.20		100,000		0.25
$	0.15		737,500		1.25
$	0.115		300,000		4.08
$	0.11		150,000		1.55
$	0.076		7,500,000		0.50