Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' DEFICIT

 v2.3.0.11
STOCKHOLDERS' DEFICIT
 3 Months Ended
Jun. 30, 2011
STOCKHOLDERS' DEFICIT  
STOCKHOLDERS' DEFICIT

NOTE 11 - STOCKHOLDERS’ DEFICIT

 

During the quarter ended March 31, 2011, the Company issued 1,866,667 shares of common stock and received proceeds of $180,000 for the exercise of warrants.  In addition, the Company issued 400,000 shares of common stock and received proceeds of $50,000 from investors.  Pursuant to a private placement, convertible debentures were issued during the quarter ended March 31, 2011, for which a discount of $62,500 was recorded, and warrants to purchase 1,240,000 shares of common stock were repriced, resulting in deferred finance costs of $57,706.   Finally, the Company issued 100,000 shares of common stock for services, valued at $25,000.

 

During the quarter ended June 30, 2011, The Company issued 740,000 shares of common stock and received $92,500 in proceeds from investors.  The Company issued 500,000 shares of common stock and received $50,000 in proceeds upon the exercise of warrants.  Pursuant to a private placement, convertible debentures were issued during the quarter ended June 30, 2011, for which a discount of $52,000 was recorded. The Company issued warrants to purchase 75,000 shares of common stock valued at $8,584 for services, and issued 333,334 shares of common stock in satisfaction of an obligation to issue common stock valued at $50,000.

 

A summary of the status of the Company’s warrants is presented below.

 

 

June 30, 2011

 

December 31, 2010

 

Number of

 

Weighted Average

 

Number of

 

Weighted Average

 

Warrants

 

Exercise Price

 

Warrants

 

Exercise Price

Outstanding, beginning of year

15,856,999

$

0.17

 

22,723,401

$

0.50

Issued

3,059,000

 

0.13

 

3,880,000

 

0.21

Exercised

(2,400,000)

 

(0.10)

 

(9,951,402)

 

(0.13)

Repriced $.15 warrants

1,240,000

 

0.15

 

 

 

 

Repriced $.25 warrants

(1,240,000)

 

(0.25)

 

 

 

 

Expired

(3,058,666)

 

(0.10)

 

(795,000)

 

(0.50)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, end of period

13,457,333

$ 

0.20

 

15,856,999

$ 

0.17

 

 

Warrants outstanding and exercisable by price range as of June 30, 2011 were as follows:

 

 

Outstanding Warrants

Exercisable Warrants

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

Weighted

 

 

 

 

 

Remaining

 

 

Weighted

 

 

Contractual

Exercise

 

Average

Range of

Number

Life in Years

Price

Number

Exercise Price

 

 

 

 

 

 

$0.10

1,710,000

0.77

$0.10

1,710,000

$0.10

0.125

2,984,000

2.79

0.125

2,984,000

0.125

0.15

3,523,333

1.62

0.15

3,523,333

0.15

0.225

400,000

2.29

0.23

400,000

0.225

0.25

3,825,000

1.32

0.25

3,825,000

0.25

0.50

1,015,000

1.49

0.50

1,015,000

0.50

 

 

 

 

 

 

 

13,457,333

1.70

 

13,457,333

$0.20