NOTE 7 COMMON STOCK WARRANTS AND OPTIONS (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The Company estimated the fair value of the stock options at the date of the grant, based on the following weighted average assumptions:

Risk-free interest rate	2.46%
Expected life	5 years
Expected volatility	185.59% to 196.94%
Dividend yield	0.00%

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the status of the Company’s outstanding options as of September 30, 2012, and changes during the nine-month period then ended is presented below:

	Shares		Weighted Average Exercise Price
Outstanding, beginning of period		7,750,000	$	0.17
Granted		9,550,000	$	0.17
Expired/Canceled		-		-
Exercised		-		-
Outstanding, end of period		17,300,000	$	0.19
Exercisable		15,470,000	$	0.17