Warrants	9 Months Ended
Sep. 30, 2011
Notes to Financial Statements
Warrants	6. Warrants At September 30, 2011, the Company had 6,218,750 warrants outstanding and exercisable with a weighted average exercise price of $0.08. There were no warrants exercised or forfeited in the nine months ended September 30, 2011. The outstanding warrants have expiration dates between May 2012 and August 2016. During the quarter ended September 30, 2011, the Company issued a total of 2,000,000 warrants to the current note holders in consideration for financing fees related to the restructuring of the existing promissory notes. The warrants were valued using the Black-Scholes option pricing model resulting in a total value of $89,225 which was recorded as Deferred financing costs and is being amortized to expense over the term of the notes. During the three and nine months ended September 30, 2011, the Company recorded $20,307 and $47,061, respectively, in amortization of deferred financing costs related to warrants granted in 2010 and 2011 in conjunction with the restructuring of outstanding notes.

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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