Quarterly report pursuant to Section 13 or 15(d)

Stock Options and Warrants (Tables)

Stock Options and Warrants (Tables)

6 Months Ended

Jun. 30, 2012

Stock Options

Following is a summary of the stock option activity:

	Options Outstanding		Weighted Average Exercise Price
Outstanding as of December 31, 2011		16,078,979	$	0.19
Granted		26,384,193		0.04
Forfeited		3,679,027		0.17
Exercised		—		—
Outstanding as of June 30, 2012		38,844,145	$	0.08

Summary of the warrant activity

Warrants

Following is a summary of the warrant activity:

	Warrants Outstanding		Weighted Average Exercise Price
Outstanding as of December 31, 2011		105,001,252	$	0.06
Granted		451,907,807		0.01
Forfeited		—		—
Exercised		—		—
Outstanding as of June 30, 2012		556,909,059	$	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