Note 1 - Organization and Basis of Presentation: Basic And Diluted Earnings Per Share (Policies)

3 Months Ended

Mar. 31, 2013

Policies

Basic And Diluted Earnings Per Share

Basic and Diluted Earnings Per Share – Basic earnings per common share is computed by dividing net gain by the weighted-average number of common shares outstanding during the period. Diluted gain per share is calculated to give effect to potentially issuable common shares, which include stock options and stock warrants except during loss periods when those potentially issuable common shares would decrease loss per share.  As of March 31, 2013, the Company had a total of 8,330,000 warrants outstanding which all have a 5 year term.  As of March 31, 2013, the Company had a total of 7,500,000 options of which 7,500,000 have vested and none have been exercised.  The options are all 10 year options with an exercise price ranging from $0.14 to $0.50.

Warrants:

The Company has granted warrants to purchase shares of Common Stock. 

Warrants outstanding and exercisable at March 31, 2013 are as follows:

Range of exercise price	Number Outstanding	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price	Aggregate Intrinsic Value
$0.14 to $1.00	8,330,000	3.12 years	$           0.49	$  (3,998,400)