Common Stock Warrants

12 Months Ended

Jun. 30, 2013

Common Stock Warrants

Note 5 - Common Stock Warrants

Effective January 1, 2006, the Company adopted the fair value recognition provisions of FASB ASC 480-10 “Share Based Payment” using the modified-prospective-transition method. Under this transition method, total compensation cost recognized in the statement of operations for the years ended June 30, 2007 and 2006 includes compensation costs for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the grant date fair value estimated in accordance with the original provisions of FASB ASC 480-10, and compensation costs for all share-based payments granted subsequent to January 1, 2006, based on the grant date fair value estimated in accordance with the provisions of FASB ASC 480-10. The Company estimates the fair value of each stock award at the grant date by using the Black-Scholes option pricing model. The Company did not grant any stock-based compensation option awards during the year ended June 30, 2012. During the year ended June 30, 2013, the Company issued 2,600,000 warrants to officers, directors and counsel and also amended the terms of 1,260,000 previously existing warrants reducing the exercise price on those warrants to $0.15.

A summary of the status of the Company’s stock warrants as of June 30, 2013 and 2012 is presented below:

	Stock Exercise		Warrants Price		Weighted Ave. Exercise Price
Outstanding and Exercisable, June 30, 2011		2,360,000	$	0.75-1.75	$	1.09
Granted		-		-		-
Expired/Canceled		-		-		-
Exercised		-		-		-
Outstanding and Exercisable, June 30, 2012		2,360,000	$	0.75-1.75	$	1.09
Outstanding and Exercisable, June 30, 2012		2,360,000	$	0.75-1.75	$	1.09
Granted		2,600,000	$	0.15	$	0.15
Expired/Canceled		100,000	$	1.75	$	1.75
Exercised		-		-		-
Outstanding and Exercisable, June 30, 2013		860,000	$	0.15-1.75	$	0.35

A summary of outstanding stock warrants at June 30, 2013 follows:

Number of Common Stock Equivalents		Expir. Date	Remaining Contracted Life (Years)		Exercise Price		Weighted Ave Exer. Price
	50,000	October 2015		2.250	$	0.15	$	0.15
	210,000	September 2015		2.250	$	0.15	$	0.15
	500,000	December 2015		2.500	$	0.75	$	0.75
	500,000	December 2015		2.500	$	0.15	$	0.15
	250,000	December 2015		2.500	$	1.00	$	1.00
	250,000	December 2015		2.500	$	0.15	$	0.15
	250,000	December 2015		2.500	$	1.50	$	1.50
	250,000	December 2015		2.500	$	0.15	$	0.15
	2,600,000	May 2018		5.000	$	0.15	$	0.15