Note 6 - Common Stock Warrants and Options

12 Months Ended

Dec. 31, 2013

Notes

Note 6 - Common Stock Warrants and Options

NOTE 6 – COMMON STOCK WARRANTS AND OPTIONS

As of December 31, 2013 the Company had common stock warrants outstanding of 11,152,000 and outstanding options of 7,500,000.  Warrants have a term of 2 to 5 years and options have a term of 10 years.

	Options		Warrants
	12/31/2013	12/31/2012	12/31/2013	12/31/2012
Beginning Balance	7,500,000	7,500,000	8,330,000	7,950,000
Granted/Issued	-	-	2,822,000	380,000
Exercised	-	-	-	-
Cancelled	-	-	-	-
End Balance	7,500,000	7,500,000	11,152,000	8,330,000
Exercisable	7,500,000	7,500,000	11,152,000	8,330,000

Warrants – We have granted outstanding warrants for the purchase of a total of 11,152,000 shares of our common stock, all of which are exercisable anytime until their respective expiration dates

Date of issuance	Stock price at valuation date of May 30, 2013 and  December 31, 2013	Exercise price	Term	Risk free rate	Volatility	Value	# of Warrants
May 30, 2013	$           0.04	$   0.75	2 Year	0.36%	316%	$               -	420,000
May 30, 2013	$           0.04	$   0.50	2 Year	0.36%	316%	$               -	420,000
May 30, 2013	$           0.04	$   0.38	2 Year	0.36%	316%	$               -	420,000
May 30, 2013	$           0.04	$   0.25	2 Year	0.36%	316%	$               -	142,000
May 30, 2013	$           0.04	$   0.13	2 Year	0.36%	316%	$               -	1,420,000
March 2, 2012	$           0.04	$   1.00	5 Year	0.36%	316%	$               -	380,000
October 28, 2011	$           0.04	$  1.00	5 Year	0.36%	316%	$               -	1,900,000
December 30, 2010	$           0.04	$   0.50	5 Year	0.36%	316%	$               -	1,600,000
December 9, 2010	$           0.04	$   1.00	5 Year	0.36%	316%	$               -	450,000
July 27, 2010	$           0.04	$   0.14	5 Year	0.36%	316%	$               -	4,000,000
Total						$               -	11,152,000

The following is a summary of the Company’s stock warrants outstanding as of December 31, 2013, adjusted for any changes in the exercise price of the stock warrants:

Warrants Outstanding				Warrants Exercisable
Range of exercise price	Number Outstanding	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price	Number Exercisable	Weighted Average Exercise Price
$0.13 to $1.00	11,152,000	2.96 years	$          0.50	11,152,000	$    0.50
	Exercise Price		$0.13 to $1.00
	Term		Two to Five years
	Volatility		261%
	Dividends		0%

The following is a summary of the Company’s stock options outstanding as of December 31, 2013, adjusted for any changes in the exercise price of the stock options:

Options Outstanding				Options Exercisable
Range of exercise price	Number Outstanding	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price	Number Exercisable	Weighted Average Exercise Price
$0.14 to $0.50	7,500,000	7.63 years	$            0.25	7,500,000	$        0.25