Annual report pursuant to Section 13 and 15(d)

4. Stockholders' Equity (Tables)

4. Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2012

	Number of Options			Weighted Average Exercise Price
Outstanding, December 31, 2010		13,934,651		$	0.15
Granted		4,952,717			0.07
Exercised		-
Expired		(2,808,389	)	$	0.17
Outstanding, December 31, 2011		16,078,979			0.19
Granted		27,984,193			0.04
Exercised		-
Expired		(3,972,192	)		0.17
Outstanding, December 31, 2012		40,090,980		$	0.07

Exercisable Options:
December 31, 2011		12,274,829		$	0.18
December 31, 2012		25,843,052			0.09

	Outstanding Options						Exercisable Options
Range of Exercise Prices	Number of Options		Weighted-Average Remaining Contractual Life		Weighted-Average Exercise Price		Number of Options		Weighted-Average Exercise Price
$0.05 to $0.09		32,436,910		8.93	$	0.042		18,188,982	$	0.045
$0.10 to $0.15		1,506,500		2.69		0.125		1,506,500		0.125
$0.16 to $0.29		4,868,158		5.56		0.192		4,868,158		0.192
$0.30 to $0.59		1,279,412		0.49		0.392		1,279,412		0.392
		40,090,980						25,843,052

Summary of the warrant activity

	Number of Warrants	Weighted Average Exercise Price
Outstanding, December 31, 2010:	80,041,252	$	0.07
Granted	33,010,000		0.04
Forfeited	3,666,636		0.08
Exercised	3,983,364		0.06
Adjustment for warrants previously reported unexercised	(400,000)		0.06
Outstanding at December 31, 2011:	105,001,252	$	0.06
Granted	613,063,046		0.01
Forfeited	62,300,000		0.01
Exercised	20,000,000		0.01
Outstanding at December 31, 2012	635,764,298		0.01

Exercisable warrants:
December 31, 2011	104,851,252	$	0.06
December 31, 2012	635,764,298	$	0.01

- 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.

+ References + Details