Note 9 – Common Stock

On November 15, 2013, the Company held its Annual Meeting of Stockholders. At the meeting, the stockholders approved an amendment to increase the number of shares of common stock authorized under the Company’s Amended and Restated Certificate of Incorporation to five billion shares. The Amended and Restated Certificate of Incorporation was filed with the State of Delaware on November 21, 2013.

On August 10, 2012, the Company held its Annual Meeting of Stockholders. At the meeting, the stockholders approved an amendment to increase the number of shares of common stock authorized under the Company’s Amended and Restated Certificate of Incorporation to three billion shares. The Amended and Restated Certificate of Incorporation was filed with the State of Delaware on August 29, 2012.

The potential issuable common shares as of November 30, 2013 and 2012 are as follows:

	2013	2012

Warrants	7,829,030	9,277,030
Stock options	50,399,503	26,068,947
Series B Convertible Preferred Stock	30,245,614	16,037,209
LJCI Debenture	10,341,510,163	6,997,683,621

	10,429,984,310	7,049,066,807

The Company does not currently have sufficient authorized shares of common stock to meet the commitments entered into under the Debenture and the related LJCI Warrants. As further discussed in Note 5, upon the conversion of any portion of the remaining $45,146 principal amount of the Debenture, LJCI is required to simultaneously exercise and purchase that same percentage of the remaining 4,514,629 warrant shares equal to the percentage of the dollar amount of the Debenture being converted. The agreement limits LJCI’s investment to an aggregate common stock ownership that does not exceed 9.99% of the outstanding common shares of the Company. Furthermore, the Company has the right to redeem that portion of the Debenture that the holder may elect to convert and also has the right to redeem the outstanding principal amount of the debenture not yet converted by the holder into common stock, plus accrued and unpaid interest thereon.