NOTE 9. CONSULTING AGREEMENTS
On September 30, 2002, the Company entered into an agreement incident to an
existing consulting agreement pursuant to which 562,500 shares of restricted
common stock were issued subject to vesting conditions. The shares were recorded
at their fair value totaling $309,375 as deferred compensation and services and
the expense was being amortized over the service period. However, on December 3,
2003 the Company and the consultant mutually agreed to terminate the consulting
agreement and 843,750 unvested shares that had been issued, were returned to the
Company and cancelled. As a result, the Company reversed unrecognized deferred
compensation and services under this consulting agreement totaling $116,628.
Accordingly, the 843,750 cancelled shares are not considered issued or
outstanding at December 31, 2003. |
