Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 12, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Geospatial Corp | |
Entity Central Index Key | 1,011,395 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 137,806,264 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 4,794 | $ 17,723 |
Accounts receivable | 20,800 | 32,800 |
Prepaid expenses and other current assets | 325,463 | 180,689 |
Total current assets | 351,057 | 231,212 |
Property and equipment: | ||
Field equipment | 339,079 | 339,079 |
Field vehicles | 43,285 | 43,285 |
Total property and equipment | 382,364 | 382,364 |
Less:accumulated depreciation | (187,705) | (126,864) |
Net property and equipment | 194,659 | 255,500 |
Total assets | 545,716 | 486,712 |
Current liabilities: | ||
Accounts payable | 602,961 | 740,151 |
Accrued expenses | 1,771,075 | 1,353,532 |
Due to related parties | $ 168,931 | 137,910 |
Notes payable to related parties | 29,047 | |
Current portion of capital lease liability to related party | $ 3,429 | 3,379 |
Senior convertible redeemable notes, net of deferred debt issue costs | 1,525,025 | |
Notes payable, net of deferred debt issue costs | $ 1,301,961 | 232,892 |
Accrued registration payment arrangement | 1,334,629 | 2,525,075 |
Total current liabilities | 5,182,986 | 6,547,011 |
Non-current liabilities: | ||
Notes payable | 32,741 | 39,741 |
Capital lease liability to related party | 5,030 | 6,757 |
Total non-current liabilities | 37,771 | 46,498 |
Total liabilities | 5,220,757 | 6,593,509 |
Stockholders' deficit: | ||
Preferred stock: Undesignated, $0.001 par value; 20,000,000 shares authorized at June 30, 2015 and December 31, 2014; no shares issued and outstanding June 30, 2015 and December 31, 2014; Series B Convertible Preferred Stock, $0.001 par value; 5,000,000 shares authorized at June 30, 2015 and December 31, 2014; 0 and 530,049 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | 530 | |
Common stock, $.001 par value; 350,000,000 shares authorized at June 30, 2015 and December 31, 2014;137,806,264 and 126,235,177 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | 137,806 | 126,235 |
Additional paid-in capital | 35,184,339 | 33,596,411 |
Accumulated deficit | (39,997,186) | (39,829,973) |
Total stockholders' deficit | (4,675,041) | (6,106,797) |
Total liabilities and stockholders' deficit | $ 545,716 | 486,712 |
Series B Preferred Stock [Member] | ||
Stockholders' deficit: | ||
Preferred stock: Undesignated, $0.001 par value; 20,000,000 shares authorized at June 30, 2015 and December 31, 2014; no shares issued and outstanding June 30, 2015 and December 31, 2014; Series B Convertible Preferred Stock, $0.001 par value; 5,000,000 shares authorized at June 30, 2015 and December 31, 2014; 0 and 530,049 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | $ 530 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 350,000,000 | 350,000,000 |
Common Stock, shares issued | 137,806,264 | 137,806,264 |
Common Stock, shares outstanding | 126,235,177 | 126,235,177 |
Undesignated Preferred Stock[Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 20,000,000 | 20,000,000 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 530,049 |
Preferred stock, shares outstanding | 0 | 530,049 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 20,800 | $ 83,030 | $ 20,800 | $ 195,751 |
Cost of sales | 41,975 | 46,202 | 79,569 | 95,817 |
Gross profit (loss) | (21,175) | 36,828 | (58,769) | 99,934 |
Selling, general and administrative expenses | 656,697 | 640,146 | 1,323,339 | 1,243,687 |
Net loss from operations | (677,872) | (603,318) | (1,382,108) | (1,143,753) |
Other income (expense): | ||||
Interest expense | (37,772) | (39,130) | (121,914) | (78,908) |
Gain on extinguishment of debt | 73,181 | $ 164,306 | 146,363 | $ 235,474 |
Registration payment arrangements | 468,996 | 1,190,446 | ||
Total other income (expenses) | 504,405 | $ 125,176 | 1,214,895 | $ 156,566 |
Net loss before income taxes | (173,467) | (478,142) | (167,213) | (987,187) |
Net loss | $ (173,467) | $ (478,142) | $ (167,213) | $ (987,187) |
Basic and fully-diluted net loss per share of common stock (in dollars per share) | $ (0.01) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2014 | $ 530 | $ 126,235 | $ 33,596,411 | $ (39,829,973) | $ (6,106,797) |
Balance (in shares) at Dec. 31, 2014 | 530,049 | 126,235,177 | |||
Sale of common stock, net of issuance costs | $ 120 | 29,820 | 29,940 | ||
Sale of common stock, net of issuance costs (in shares) | 120,000 | ||||
Conversion of Series B Convertible Preferred Stock to common stock | $ (530) | $ 5,300 | (4,770) | ||
Conversion of Series B Convertible Preferred Stock to common stock( in shares) | 5,300,500 | ||||
Conversion of senior convertible redeemable notes to common stock | $ 6,151 | 1,562,878 | 1,569,029 | ||
Conversion of senior convertible redeemable notes to common stock (in shares) | 6,150,587 | ||||
Net loss | (167,213) | (167,213) | |||
Balance at Jun. 30, 2015 | $ 137,806 | $ 35,184,339 | $ (39,997,186) | $ (4,675,041) | |
Balance (in shares) at Jun. 30, 2015 | 137,806,264 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (167,213) | $ (987,187) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 60,841 | 41,622 |
Amortization of deferred debt issuance costs | 46,873 | 0 |
Gain on extinguishment of debt | (146,363) | $ (235,474) |
Registration payment arrangements | (1,190,446) | |
Accrued interest payable | 71,088 | $ 72,150 |
Changes in operating assets and liablities: | ||
Accounts receivable | 12,000 | 86,170 |
Prepaid expenses and other current assets | (144,774) | (94,969) |
Accounts payable | 9,172 | 79,940 |
Accrued expenses | 417,013 | (94,997) |
Due to related parties | 31,021 | 22,170 |
Other long-term liabilities | 0 | (6,279) |
Net cash used in operating activities | (1,000,787) | (1,116,854) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (169,576) | |
Net cash used in investing activities | (169,576) | |
Cash flows from financing activities: | ||
Proceeds from issuance of notes payable | 1,600,000 | |
Principal payments on notes payable | (587,155) | (90,541) |
Principal payments on capital lease liabilities | (1,677) | (1,629) |
Deferred debt issuance costs paid | (53,250) | 0 |
Proceeds from sale of common stock, net of offering costs | 29,940 | 2,061,296 |
Proceeds from exercise of warrants to purchase common stock, net of offering costs | 0 | 5,332 |
Proceeds from exercise of warrants to purchase Series B Convertible Preferred Stock, net of offering costs | 0 | 266,571 |
Repurchase of shares of common stock for cancellation | 0 | (1,114,688) |
Net cash provided by financing activities | 987,858 | 1,126,341 |
Net change in cash and cash equivalents | (12,929) | (160,089) |
Cash and cash equivalents at beginning of period | 17,723 | 778,597 |
Cash and cash equivalents at end of period | 4,794 | 618,508 |
Supplemental disclosures: | ||
Cash paid during period for interest | 3,953 | $ 6,758 |
Non-cash transactions: | ||
Conversion of senior convertible redeemable notes to common stock | $ 1,569,029 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation The Unaudited Consolidated Financial Statements included herein have been prepared by Geospatial Corporation (the Company) in accordance with generally accepted accounting principles for interim financial information and regulations contained in the Securities Exchange Act of 1934, as amended. Accordingly, the accompanying Unaudited Consolidated Financial Statements do not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. The accompanying Unaudited Consolidated Financial Statements as of and for the three and six months ended June 30, 2015 should be read in conjunction with the Companys Financial Statements as of and for the year ended December 31, 2014. In the opinion of the Companys management, all adjustments considered necessary for a fair statement of the accompanying Unaudited Consolidated Financial Statements have been included, and all adjustments, unless otherwise discussed in the Notes to the Unaudited Condensed Consolidated Financial Statements, are of a normal and recurring nature. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or any other interim periods, or any future year or period. The use of accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiary, Geospatial Mapping Systems, Inc. All intercompany accounts and transactions have been eliminated. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 2 Accrued Expenses Accrued expenses consisted of the following: June 30, December 31, 2015 2014 Payroll and taxes $ 1,393,157 $ 1,134,918 Accounting 59,048 67,280 Insurance 126,288 33,902 Contractors and subcontractors 118,083 60,848 Other 74,499 56,584 Accrued expenses $ 1,771,075 $ 1,353,532 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 3 Related-Party Transactions The Company leases its headquarters building from Mark A. Smith, the Companys Chairman and Chief Executive Officer. The building has approximately 3,200 square feet of office space, and is used by the Companys corporate, technical, and operations staff. The Company incurred $19,500 of lease expense during the three months ended June 30, 2015 and 2014, and $39,000 of lease expense during the six months ended June 30, 2015 and 2014. The lease is cancellable by either party upon 30 days notice. On November 9, 2012, the Company and Mr. Smith entered into a Lease Agreement, pursuant to which the Company leases a field vehicle from Mr. Smith. The lease is for 60 months, and is for substantially the same terms for which Mr. Smith leases the vehicle from the manufacturer. Interest on the lease amounted to $65 and $137 for the three months and six months, respectively, ended June 30, 2015, and $89 and $185 for the three and six months, respectively, ended June 30, 2014. The lease is recorded as a capital lease. At June 30, 2015, gross assets recorded under the lease and associated accumulated depreciation were $16,870 and $8,857, respectively. Future minimum payments under the capital lease are as follows as of June 30, 2015: Balance of 2015 $ 1,812 Year ending December 31, 2016 3,628 Year ending December 31, 2017 3,326 Thereafter Total minimum payments 8,766 Less: minimum interest payments (307 ) Minimum principal payments $ 8,459 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 4 Notes Payable Current notes payable consisted of the following: June 30, 2015 December 31, 2014 Secured Promissory Note payable to an individual, due October 2, 2015, bearing interest at 10% per annum, plus warrants to purchase the common stock $ 1,018,345 $ Unsecured Convertible Promissory Note payable to an individual, due May 14, 2014, bearing interest at 10% plus warrants to purchase common stock 51,514 Unsecured Convertible Promissory Note payable to an individual, due July 31, 2015, bearing interest at 10% per annum, plus warrants to purchase common stock 50,194 Current portion of long-term notes payable 181,908 232,892 Current notes payable $ 1,301,961 $ 232,892 Long-term notes payable consisted of the following: June 30, 2015 December 31, 2014 Notes payable under settlement agreements with former employees, payable monthly with terms of up to 39 months, with interest rates ranging from 0% to 4% $ 167,908 $ 218,892 Notes payable under settlement agreements with vendors, payable monthly with terms of up to 60 months, with interest rates ranging from 0% to 32% 46,741 53,741 Total long-term notes payable 214,649 272,633 (181,908 ) (272,892 ) Long-term notes payable, less current portion $ 32,741 $ 39,741 Future maturities of long-term debt are as follows as of June 30, 2015: Balance of 2015 $ 174,908 Year ending December 31, 2016 14,000 Year ending December 31, 2017 14,000 Year ending December 31, 2018 11,741 Thereafter $ 214,649 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 Income Taxes The Companys provision for (benefit from) income taxes is summarized below: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Current: Federal $ $ $ $ State Deferred: Federal (297,847 ) (149,132 ) (522,590 ) (308,982 ) State (94,555 ) (47,344 ) (165,902 ) (98,089 ) (392,402 ) (196,476 ) (688,492 ) (407,071 ) Total income taxes (392,402 ) (196,476 ) (688,492 ) (407,071 ) Less: valuation allowance 392,402 196,476 688,492 407,071 Net income taxes $ $ $ $ The reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Federal statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State income taxes (net of federal benefit) 6.5 6.5 6.5 6.5 Valuation allowance (41.5 ) (41.5 ) (41.5 ) (41.5 ) Effective rate 0.0 % 0.0 % 0.0 % 0.0 % Significant components of the Companys deferred tax assets and liabilities are summarized below. A valuation allowance has been established as realization of such assets has not met the more-likely-than-not threshold requirement under FASB ASC 740. June 30, 2015 December 31, 2014 Start-up costs $ 42,408 $ 47,325 Depreciation (37,029 ) (37,684 ) Accrued expenses 484,747 378,020 Net operating loss carryforward 15,559,588 14,973,562 Deferred income taxes 16,049,714 15,361,223 Less: valuation allowance (16,049,714 ) (15,361,223 ) Net deferred income taxes $ $ At June 30, 2015, the Company had federal and state net operating loss carryforwards of approximately $37,493,000. The federal and state net operating loss carryforwards will expire beginning in 2021 and 2026, respectively. The amount of the state net operating loss carryforward that can be utilized each year to offset taxable income is limited by state law. |
Net Loss Per Share of Common St
Net Loss Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share of Common Stock | Note 6 Net Loss Per Share of Common Stock Basic net loss per share are computed by dividing earnings available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share reflects per share amounts that would have resulted if dilutive potential common stock had been converted to common stock. Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all warrants and options are used to repurchase common stock at market value. The number of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. The following reconciles amounts reported in the financial statements: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Net loss $ (173,467 ) $ (478,142 ) $ (167,213 ) $ (987,187 ) Weighted average number of shares of common stock outstanding 137,806,264 100,867,638 134,988,604 95,601,622 Dilutive potential shares of common stock 137,806,264 100,867,638 134,988,604 95,601,622 Net loss per share of common stock: Basic $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) Diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) The following securities were not included in the computation of diluted net loss per share, as their effect would have been anti-dilutive: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Series B Convertible Preferred Stock 23,153,050 1,766,830 23,153,050 Options and warrants to purchase common stock 12,447,647 10,886,702 13,628,571 11,245,045 Warrants to purchase Series B Convertible Preferred Stock 2,377,343 2,415,287 Unsecured Convertible Promissory Notes Secured Promissory Note 836,735 Senior Convertible Redeemable Notes 1,952,032 2,899,917 769,724 2,899,917 Total 15,236,414 39,317,012 16,165,125 39,713,299 |
Stock-Based Payments
Stock-Based Payments | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stock-Based Payments | Note 7 Stock-Based Payments During the six months ended June 30, 2015, the Company granted stock appreciation rights on 362,500 shares of the Companys common stock to an eligible consultant pursuant to the 2013 Equity Incentive Plan. During the six months ended June 30, 2015, the Company granted warrants to purchase 3,661,750 shares of the Companys common stock to lenders in connection with loans to the Company, and warrants to purchase 1,300,000 shares of the Companys common stock to consultants. |
Gains on Extinguishment of Debt
Gains on Extinguishment of Debt | 6 Months Ended |
Jun. 30, 2015 | |
Gains On Extinguishment Of Debt | |
Gains on Extinguishment of Debt | Note 8 Gains on Extinguishment of Debt Due to significant cash flow problems, the Company has negotiated concessions on the amounts of certain liabilities and extensions of payment terms. The Company accounts for such concessions in accordance with Financial Accounting Standards Board Accounting Standards Codification 470-60, Troubled Debt Restructurings by Debtors |
Registration Payment Arrangemen
Registration Payment Arrangements | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Registration Payment Arrangements | Note 9 Registration Payment Arrangements The Company is contractually obligated to issue shares of its common stock to certain investors for failure to register shares of its common stock under the Securities Act of 1933, as amended (the Securities Act). The Company has recorded a liability for the estimated number of shares to be issued at the fair value of the stock to be issued. The Company measures fair value by the price of its common stock at its most recent sale. The Company reviews its estimate of the number of shares to be issued and the fair value of the stock to be issued quarterly. The liability is included on the Consolidated Balance Sheet under the heading accrued registration payment arrangement, and amounted to $1,334,629 at June 30, 2015, and $2,525,075 at December 31, 2014. Gains or losses resulting from changes in the carrying amount of the liability are included in the Consolidated Statement of Operations in other income and expense under the heading registration payment arrangements which amounted to gains of $468,996 and $1,190,446 during the three and six months, respectively, ended June 30, 2015. There were no such gains or losses during the three and six months ended June 30, 2014. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Accrued expenses consisted of the following: June 30, December 31, 2015 2014 Payroll and taxes $ 1,393,157 $ 1,134,918 Accounting 59,048 67,280 Insurance 126,288 33,902 Contractors and subcontractors 118,083 60,848 Other 74,499 56,584 Accrued expenses $ 1,771,075 $ 1,353,532 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of future minimum capital leases | Future minimum payments under the capital lease are as follows as of June 30, 2015: Balance of 2015 $ 1,812 Year ending December 31, 2016 3,628 Year ending December 31, 2017 3,326 Thereafter Total minimum payments 8,766 Less: minimum interest payments (307 ) Minimum principal payments $ 8,459 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of short-term debt | Current notes payable consisted of the following: June 30, 2015 December 31, 2014 Secured Promissory Note payable to an individual, due October 2, 2015, bearing interest at 10% per annum, plus warrants to purchase the common stock $ 1,018,345 $ Unsecured Convertible Promissory Note payable to an individual, due May 14, 2014, bearing interest at 10% plus warrants to purchase common stock 51,514 Unsecured Convertible Promissory Note payable to an individual, due July 31, 2015, bearing interest at 10% per annum, plus warrants to purchase common stock 50,194 Current portion of long-term notes payable 181,908 232,892 Current notes payable $ 1,301,961 $ 232,892 |
Schedule of long-term debt | Long-term notes payable consisted of the following: June 30, 2015 December 31, 2014 Notes payable under settlement agreements with former employees, payable monthly with terms of up to 39 months, with interest rates ranging from 0% to 4% $ 167,908 $ 218,892 Notes payable under settlement agreements with vendors, payable monthly with terms of up to 60 months, with interest rates ranging from 0% to 32% 46,741 53,741 Total long-term notes payable 214,649 272,633 (181,908 ) (272,892 ) Long-term notes payable, less current portion $ 32,741 $ 39,741 |
Schedule of future maturities of long-term debt | Future maturities of long-term debt are as follows as of June 30, 2015: Balance of 2015 $ 174,908 Year ending December 31, 2016 14,000 Year ending December 31, 2017 14,000 Year ending December 31, 2018 11,741 Thereafter $ 214,649 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of the provision for (benefit from) income taxes | The Companys provision for (benefit from) income taxes is summarized below: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Current: Federal $ $ $ $ State Deferred: Federal (297,847 ) (149,132 ) (522,590 ) (308,982 ) State (94,555 ) (47,344 ) (165,902 ) (98,089 ) (392,402 ) (196,476 ) (688,492 ) (407,071 ) Total income taxes (392,402 ) (196,476 ) (688,492 ) (407,071 ) Less: valuation allowance 392,402 196,476 688,492 407,071 Net income taxes $ $ $ $ |
Reconciliation of the federal statutory income tax rate to the effective income tax rate | The reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Federal statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State income taxes (net of federal benefit) 6.5 6.5 6.5 6.5 Valuation allowance (41.5 ) (41.5 ) (41.5 ) (41.5 ) Effective rate 0.0 % 0.0 % 0.0 % 0.0 % |
Schedule of deferred tax assets and liabilities | Significant components of the Companys deferred tax assets and liabilities are summarized below. A valuation allowance has been established as realization of such assets has not met the more-likely-than-not threshold requirement under FASB ASC 740. June 30, 2015 December 31, 2014 Start-up costs $ 42,408 $ 47,325 Depreciation (37,029 ) (37,684 ) Accrued expenses 484,747 378,020 Net operating loss carryforward 15,559,588 14,973,562 Deferred income taxes 16,049,714 15,361,223 Less: valuation allowance (16,049,714 ) (15,361,223 ) Net deferred income taxes $ $ |
Net Loss Per Share of Common 20
Net Loss Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following reconciles amounts reported in the financial statements: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Net loss $ (173,467 ) $ (478,142 ) $ (167,213 ) $ (987,187 ) Weighted average number of shares of common stock outstanding 137,806,264 100,867,638 134,988,604 95,601,622 Dilutive potential shares of common stock 137,806,264 100,867,638 134,988,604 95,601,622 Net loss per share of common stock: Basic $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) Diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.01 ) |
Schedule of antidilutive securities excluded from computation of earnings | The following securities were not included in the computation of diluted net loss per share, as their effect would have been anti-dilutive: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Series B Convertible Preferred Stock 23,153,050 1,766,830 23,153,050 Options and warrants to purchase common stock 12,447,647 10,886,702 13,628,571 11,245,045 Warrants to purchase Series B Convertible Preferred Stock 2,377,343 2,415,287 Unsecured Convertible Promissory Notes Secured Promissory Note 836,735 Senior Convertible Redeemable Notes 1,952,032 2,899,917 769,724 2,899,917 Total 15,236,414 39,317,012 16,165,125 39,713,299 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Accrued Expenses Details | ||
Payroll and taxes | $ 1,393,157 | $ 1,134,918 |
Accounting | 59,048 | 67,280 |
Insurance | 126,288 | 33,902 |
Contractors and subcontractors | 118,083 | 60,848 |
Other | 74,499 | 56,584 |
Accrued expenses | $ 1,771,075 | $ 1,353,532 |
Related-Party Transactions (Det
Related-Party Transactions (Details Narrative) - Board of Directors Chairman [Member] | Nov. 09, 2012 | Jun. 30, 2015USD ($)ft² | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)ft² | Jun. 30, 2014USD ($) |
Area of office space | ft² | 3,200 | 3,200 | |||
Lease expenses | $ 19,500 | $ 19,500 | $ 39,000 | $ 39,000 | |
Lease term | 60 months | ||||
Interest on lease | 65 | $ 89 | 137 | $ 185 | |
Gross assets under capital lease | 16,870 | 16,870 | |||
Accumulated depreciation | $ 8,857 | $ 8,857 |
Related-Party Transactions (D23
Related-Party Transactions (Details) | Jun. 30, 2015USD ($) |
Related-party Transactions Details | |
Balance of 2015 | $ 1,812 |
Year ending December 31, 2016 | 3,628 |
Year ending December 31, 2017 | 3,326 |
Thereafter | 0 |
Total minimum payments | 8,766 |
Less: minimum interest payments | (307) |
Minimum principal payments | $ 8,459 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current portion of long-term notes payable | $ 181,908 | $ 232,892 |
Current notes payable | 1,301,961 | 232,892 |
10% Secured Promissory Note Due October 2, 2015 [Member] | ||
Current notes payable | 1,018,345 | 0 |
10% Unsecured Convertible Promissory Note Due May 14, 2014 [Member] | ||
Current notes payable | 51,514 | 0 |
10% Unsecured Convertible Promissory Note Due July 31, 2015 [Member] | ||
Current notes payable | $ 50,194 | $ 0 |
Notes Payable (Details 1)
Notes Payable (Details 1) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Total long-term notes payable | $ 214,649 | $ 272,633 |
Less: current portion | (181,908) | (232,892) |
Long-term notes payable, less current portion | 32,741 | 39,741 |
Notes Payable To Former Employees [Member] | ||
Total long-term notes payable | 167,908 | 218,892 |
Notes Payable To Vendors [Member] | ||
Total long-term notes payable | $ 46,741 | $ 53,741 |
Notes Payable (Details 2)
Notes Payable (Details 2) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Future maturities of long-term debt | ||
Balance of 2015 | $ 174,908 | |
Year ending December 31, 2016 | 14,000 | |
Year ending December 31, 2017 | 14,000 | |
Year ending December 31, 2018 | 11,741 | |
Thereafter | 0 | |
Long Term Debt Maturities | $ 214,649 | $ 272,633 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | Jun. 30, 2015USD ($) |
Income Taxes Details Narrative | |
Federal and state net operating loss carryforwards | $ 37,493,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Deferred: | ||||
Federal | $ (297,847) | $ (149,132) | $ (522,590) | $ (308,982) |
State | (94,555) | (47,344) | (165,902) | (98,089) |
Deferred Federal and State | (392,402) | (196,476) | (688,492) | (407,071) |
Total income taxes | (392,402) | (196,476) | (688,492) | (407,071) |
Less: valuation allowance | $ (392,402) | $ (196,476) | $ (688,492) | $ (407,071) |
Income Taxes (Details 1)
Income Taxes (Details 1) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes Details 1 | ||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
State income taxes (net of federal benefit) | 6.50% | 6.50% | 6.50% | 6.50% |
Valuation allowance | (41.50%) | (41.50%) | (41.50%) | (41.50%) |
Effective rate | 0.00% | 0.00% | 0.00% | 0.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Income Taxes Details 2 | ||
Start-up costs | $ 42,408 | $ 47,325 |
Depreciation | (37,029) | (37,684) |
Accrued expenses | 484,747 | 378,020 |
Net operating loss carryforward | 15,559,588 | 14,973,562 |
Deferred income taxes | 16,049,714 | 15,361,223 |
Less: valuation allowance | $ (16,049,714) | $ (15,361,223) |
Net deferred income taxes |
Net Loss Per Share of Common 31
Net Loss Per Share of Common Stock (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Loss Per Share Of Common Stock Details | ||||
Net loss | $ (173,467) | $ (478,142) | $ (167,213) | $ (987,187) |
Weighted average number of shares of common stock outstanding | 137,806,264 | 100,867,638 | 134,988,604 | 95,601,622 |
Dilutive potential shares of common stock | 137,806,264 | 100,867,638 | 134,988,604 | 95,601,622 |
Net loss per share of common stock: | ||||
Basic (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.01) |
Diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.01) |
Net Loss Per Share of Common 32
Net Loss Per Share of Common Stock (Details 1) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Total number of securities anti diliutive | 38,151,451 | 41,603,348 | 19,596,749 | 55,212,953 |
Series B Convertible Preferred Stock [Member] | ||||
Total number of securities anti diliutive | 21,672,035 | 19,021,790 | 2,650,245 | 38,043,580 |
Smith Convertible Note [Member] | ||||
Total number of securities anti diliutive | 19,400 | |||
Options and warrants to purchase common stock [Member] | ||||
Total number of securities anti diliutive | 9,880,828 | 17,405,317 | 13,853,902 | 11,245,045 |
Warrants to purchase Series B Convertible Preferred Stock [Member] | ||||
Total number of securities anti diliutive | 2,220,976 | 2,258,690 | 159,896 | 3,060,161 |
Unsecured Convertible Promissory Note [Member] | ||||
Total number of securities anti diliutive | 4,658 | |||
Senior Convertible Redeemable Notes [Member] | ||||
Total number of securities anti diliutive | 4,377,612 | 2,898,151 | 2,928,048 | 2,864,167 |
Stock-Based Payments (Details N
Stock-Based Payments (Details Narrative) | 6 Months Ended |
Jun. 30, 2015shares | |
Warrant [Member] | |
Number of awards granted to lenders | 3,661,750 |
Number of awards granted to consultants | 1,300,000 |
2013 Equity Incentive Plan [Member] | Stock Appreciation Rights [Member] | |
Number of awards granted | 362,500 |
Gains on Extinguishment of De34
Gains on Extinguishment of Debt (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Gains On Extinguishment Of Debt Details Narrative | ||||
Gain on extinguishment of debt | $ 73,181 | $ 164,306 | $ 146,363 | $ 235,474 |
Registration Payment Arrangem35
Registration Payment Arrangements (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Registration payment arrangements | $ 468,996 | $ 1,190,446 | |||
Accrued registration payment arrangement | $ 1,334,629 | $ 1,334,629 | $ 2,525,075 |