Equity

3 Months Ended

Mar. 31, 2012

Equity

Stockholders' Equity Note Disclosure [Text Block]

NOTE 4 -       STOCK WARRANTS AND OPTIONS

The Company had no outstanding stock warrants during the three months ended March 31, 2012, and the year ended December 31, 2011.  During 2011 the Company granted 3,000,000 options to purchase the Company’s common stock for an exercise price of $0.20 per share for a period of 60 months beginning in February 2011 and 59,283 options to purchase the Company’s common stock for an exercise price of $0.10 per share for a period of 35 months beginning in February 2011.  The options were granted as part of an employment agreement with Frank Marra entered into during the quarter.  The Company valued the options using the Black-Scholes option-pricing model with the following assumptions: dividend yield of zero percent; expected volatility of 176.85%; risk-free interest rate of 2.39%; and expected life of 5 years.   A summary of the status of the Company’s outstanding stock options as of March 31, 2012 and December 31, 2011 and changes during the periods then ended is presented below:

	2012			2011
	Shares	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
Outstanding, beginning of year	3,760,716	$	.18	701,433	$	.10
Granted	-		-	3,059,283		.20
Expired/Cancelled	-		-	-		-
Exercised	-		-	-		-
Outstanding end of year	3,760,716	$	.18	3,760,716	$	.18
Exercisable	3,760,716	$	.18	3,760,716	$	.18

		Outstanding				Exercisable
Range of Exercise Prices			Number outstanding at March 31, 2011	Weighted Average Remaining Contractual Life	Number Exercisable at March 31, 2011
$	.10-.20		3,760,716	3.44	3,760,716
			3,760,716		3,760,716

NOTE 6 -       EQUITY TRANSACTIONS

During the year ended December 31, 2011, the Company executed an employment agreement with the President of the Company which provided 3,000,000 options to purchase the Company’s common stock for an exercise price of $0.20 per share for a 60 month period beginning in February 2011.  The options were valued using the Black-Scholes option pricing model, with the following assumptions: dividend yield of zero percent; expected volatility of 176.85%; risk-free interest rate of 2.39%; and expected life of 5 years.  The value of the options was $984,975 and was expensed.

The Company issued 42,000 shares of common stock during the year ended December 31, 2011.  The stock was issued as the result of the conversion of two notes payable valued at $9,000 and related accrued interests of $1,318.  The stock was issued at $0.29 per share for a total value of $12,180.  A loss of $1,862 was recognized in the transaction.

The Company issued 22,500 shares of common stock during the year ended December 31, 2011, as compensation to the members of the Board of Directors.  The shares were valued at $0.35 per share for a total expense of $7,875.

Also during the year ended December 31, 2011, a holder of 75,000 shares of series A preferred stock exercised the conversion of that preferred stock.  As a result the Company issued 500,250 shares of common stock to this stockholder.  The number of common shares was determined at the conversion rate of 6 2/3 shares of common stock per share of preferred