Demand Loans

3 Months Ended

Mar. 31, 2011

Demand Loans [Abstract]

Demand Loans

Note 5. Demand Loans

In January 2011, the Company received an unsecured loan of $15,000 from William P. Curtis, Jr., a Director, and repaid the loan, with interest at 8%, in February 2011. The loan was used to finance the Company’s working capital requirements. Additionally, the Company granted warrants to purchase 15,000 shares of common stock of the Company at $0.06 per share to Mr. Curtis. The warrants expire in five years. A financing cost of approximately $600, representing the fair value of the warrants, was charged to income in the first quarter of 2011. The fair value of the warrants was determined using the Black-Scholes pricing model with the following assumptions: expected life-5 years; interest rate-2%; expected volatility based on the Company’s historical volatility-83% and dividend yield-0.

The following table summarizes the Company’s warrant position at March 31, 2012 and December 31, 2011:

	Number of Shares		Exercise Price		Weighted Average Exercise Price
Outstanding warrants – December 31, 2011		85,500	$	.045 to $.07	$	.06
Outstanding warrants – March 31, 2012		85,500	$	.045 to $.07	$	.06
Weighted average remaining contractual life (years)		3.52
Exercisable warrants – March 31, 2012		85,500	$	.045 to $.07	$	.06