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Note 1 - Summary of Significant Accounting Policies: Stock-Based Compensation (Policies)
12 Months Ended
Dec. 31, 2012
Policies  
Stock-Based Compensation

Stock-Based Compensation – Effective January 1, 2006, the Company adopted, “Share-Based Payment” (ASC Topic 718) requiring that compensation cost relating to share-based payment awards made to employees and directors be recognized in the financial statements. There were no options granted during the year ended December 31, 2012 and 2,200,000 options were granted during the year ended December 31, 2011.  As part of the granting of these options and previous options vesting or time, there was recorded a cost of $8,440,804 and $14,263,604 and as payroll expense for the year ending December 31, 2012 and 2011, respectively.  These expenses were stock-based compensation resulting from the application of ASC Topic 718 included in Statements of Operations. The cost of these and future awards will be measured at the grant date based on the calculated fair value of the award. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods (generally the vesting period of the equity award) in the Company's Statements of Operations.

 

Prior to January 1, 2006, the Company accounted for its stock options issued to directors, officers and employees under ASC Topic 835 and related interpretations. Under ASC Topic 835, compensation expense is recognized if an option’s exercise price on the measurement date is below the fair value of the Company’s common stock. The Company also accounted for options and warrants issued to non-

employees in accordance with ASC Topic 718 which required these options and warrants to be accounted for at their fair value.