Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 10, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'OMNICOMM SYSTEMS INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 91,504,659 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001034592 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $1,093,682 | $1,160,720 |
Accounts receivable, net of allowance for doubtful accounts of $142,051 and $65,341, respectively | 2,887,083 | 1,599,568 |
Prepaid expenses | 216,165 | 146,907 |
Prepaid stock compensation, current portion | 153,500 | 0 |
Other current assets | 16,138 | 0 |
Total current assets | 4,366,568 | 2,907,195 |
Property and equipment, net | 491,836 | 607,433 |
Intangible assets, net | 220,332 | 270,242 |
Goodwill | 618,541 | 675,710 |
Prepaid stock compensation | 185,028 | 169,375 |
Other assets | 50,342 | 82,501 |
TOTAL ASSETS | 5,932,647 | 4,712,456 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 2,256,504 | 2,540,956 |
Notes payable, current portion | 328,562 | 37,500 |
Deferred revenue, current portion | 5,702,672 | 2,866,356 |
Line of credit | 3,700,000 | 3,500,000 |
Convertible notes payable, current portion, net of discount of $-0- and $-0-, respectively | 75,000 | 75,000 |
Patent settlement liability, current portion | 962,500 | 962,500 |
LONG TERM LIABILITIES | ' | ' |
Notes payable, related parties, long term, net of current portion, net of discount of $670,535 and $447,666, respectively | 5,325,344 | 4,568,213 |
Notes payable, long term, net of current portion | 302,500 | 614,486 |
Deferred revenue, long term, net of current portion | 2,530,126 | 1,385,017 |
Convertible notes payable, related parties, long term, net of current portion | 8,815,000 | 9,125,000 |
Convertible notes payable, long term, net of current portion | 775,000 | 465,000 |
Patent settlement liability, long term, net of current portion | 746,432 | 963,124 |
TOTAL LIABILITIES | 36,807,668 | 36,173,335 |
COMMITMENTS AND CONTINGENCIES (See Note 11) | ' | ' |
SHAREHOLDERS' (DEFICIT) | ' | ' |
Preferred stock | 0 | 0 |
Common stock, 250,000,000 shares authorized, 91,504,659 and 90,104,659 issued and outstanding, respectively, at $0.001 par value | 91,505 | 90,105 |
Additional paid in capital - preferred | 4,717,804 | 4,717,804 |
Additional paid in capital - common | 37,624,741 | 37,334,358 |
Accumulated other comprehensive (loss) | -198,443 | -87,604 |
Accumulated deficit | -73,115,003 | -73,519,917 |
TOTAL SHAREHOLDERS' (DEFICIT) | -30,875,021 | -31,460,879 |
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) | 5,932,647 | 4,712,456 |
Conversion Feature Liability, Related Parties [Member] | ' | ' |
CURRENT LIABILITIES | ' | ' |
Derivative liabilities, current | 1,416,296 | 2,979,392 |
Conversion Feature Liability [Member] | ' | ' |
CURRENT LIABILITIES | ' | ' |
Derivative liabilities, current | 117,066 | 146,814 |
Warrant Liability, Related Parties [Member] | ' | ' |
CURRENT LIABILITIES | ' | ' |
Derivative liabilities, current | 3,646,003 | 5,799,946 |
Warrant Liability [Member] | ' | ' |
CURRENT LIABILITIES | ' | ' |
Derivative liabilities, current | 108,663 | 144,031 |
Total current liabilities | 18,313,266 | 19,052,495 |
Series B Preferred Stock [Member] | ' | ' |
SHAREHOLDERS' (DEFICIT) | ' | ' |
Preferred stock | 0 | 0 |
Series C Preferred Stock [Member] | ' | ' |
SHAREHOLDERS' (DEFICIT) | ' | ' |
Preferred stock | 0 | 0 |
Series A Preferred Stock [Member] | ' | ' |
SHAREHOLDERS' (DEFICIT) | ' | ' |
Preferred stock | 4,125 | 4,125 |
Series D Preferred Stock [Member] | ' | ' |
SHAREHOLDERS' (DEFICIT) | ' | ' |
Preferred stock | $250 | $250 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts (in Dollars) | $142,051 | $65,341 |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares undesignated (in Dollars) | 3,772,500 | 3,772,500 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 91,504,659 | 90,104,659 |
Common stock, shares outstanding | 91,504,659 | 90,104,659 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 230,000 | 230,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, liquidation preference (in Dollars) | 0 | 0 |
Series C Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 747,500 | 747,500 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, liquidation preference (in Dollars) | 0 | 0 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 4,125,224 | 4,125,224 |
Preferred stock, shares outstanding | 4,125,224 | 4,125,224 |
Preferred stock, liquidation preference (in Dollars) | 4,125,224 | 4,125,224 |
Series D Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 250,000 | 250,000 |
Preferred stock, shares issued | 250,000 | 250,000 |
Preferred stock, shares outstanding | 250,000 | 250,000 |
Convertible Notes Payable [Member] | ' | ' |
Note Payable discount (in Dollars) | 0 | 0 |
Notes Payable, Other Payables [Member] | ' | ' |
Note Payable discount (in Dollars) | $670,535 | $447,666 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenues | $4,943,015 | $3,449,661 | $11,554,553 | $10,543,197 |
Reimbursable revenues | 181,674 | 27,960 | 361,160 | 412,947 |
Total revenues | 5,124,689 | 3,477,621 | 11,915,713 | 10,956,144 |
Cost of goods sold | 773,948 | 648,369 | 2,341,107 | 1,942,126 |
Gross margin | 3,985,288 | 2,765,142 | 8,945,262 | 8,716,690 |
Operating expenses | ' | ' | ' | ' |
Salaries, benefits and related taxes | 2,726,522 | 2,130,385 | 7,954,833 | 6,496,528 |
Rent and occupancy expenses | 219,974 | 199,492 | 663,961 | 665,932 |
Consulting services | 10,111 | 14,496 | 60,669 | 117,410 |
Legal and professional fees | 77,365 | 53,312 | 277,262 | 205,767 |
Travel | 178,211 | 100,860 | 595,571 | 326,578 |
Telephone and internet | 52,063 | 38,618 | 142,554 | 131,476 |
Selling, general and administrative | 299,940 | 197,765 | 892,912 | 634,481 |
Bad debt expense | 632 | 8,191 | 76,634 | -4,830 |
Depreciation expense | 59,087 | 54,894 | 181,520 | 174,436 |
Amortization expense | 11,322 | 0 | 34,549 | 0 |
Total operating expenses | 3,635,227 | 2,798,013 | 10,880,465 | 8,747,778 |
Operating income/(loss) | 350,061 | -32,871 | -1,935,203 | -31,088 |
Other income/(expense) | ' | ' | ' | ' |
Interest expense, related parties | -578,735 | -588,425 | -1,818,911 | -1,750,327 |
Interest expense | -54,236 | -37,760 | -160,968 | -107,952 |
Interest income | 12 | 3 | 77 | 9 |
Change in derivative liabilities | 1,607,670 | 2,418,612 | 4,410,241 | -2,524,671 |
Transaction gain/(loss) | -41,596 | 3,780 | -54,915 | -4,497 |
Income/(loss) before income taxes | 1,283,176 | 1,763,339 | 440,321 | -4,418,526 |
Income taxes | -1,446 | -30,869 | -35,407 | -48,599 |
Net income/(loss) | 1,281,730 | 1,732,470 | 404,914 | -4,467,125 |
Preferred stock dividends | ' | ' | ' | ' |
Preferred stock dividends | -51,989 | -51,989 | -154,272 | -154,272 |
Net income/(loss) attributable to common stockholders | 1,229,741 | 1,680,481 | 250,642 | -4,621,397 |
Net income/(loss) per share | ' | ' | ' | ' |
Basic and diluted (in Dollars per share) | $0.01 | $0.02 | $0 | ($0.05) |
Weighted average number of shares outstanding | ' | ' | ' | ' |
Basic and diluted (in Shares) | 91,032,920 | 87,867,268 | 90,417,480 | 87,515,641 |
Reimbursable expenses-cost of goods sold | 365,453 | 64,110 | 629,344 | 297,328 |
Cost of Goods Sold, Including Reimbursable Expenses [Member] | ' | ' | ' | ' |
Cost of goods sold | 1,139,401 | 712,479 | 2,970,451 | 2,239,454 |
Preferred Class A [Member] | ' | ' | ' | ' |
Preferred stock dividends | ' | ' | ' | ' |
Preferred stock dividends | ($51,989) | ($51,989) | ($154,272) | ($154,272) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net income/(loss) attributable to common stockholders | $1,229,741 | $1,680,481 | $250,642 | ($4,621,397) |
Other comprehensive (loss) | ' | ' | ' | ' |
Change in foreign currency translation adjustment | -86,887 | -3,006 | -110,839 | -30,485 |
Other comprehensive (loss) | -86,887 | -3,006 | -110,839 | -30,485 |
Comprehensive income/(loss) | $1,142,854 | $1,677,475 | $139,803 | ($4,651,882) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Shareholders' (Deficit) (Unaudited) (USD $) | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Series D Preferred Stock [Member] | Additional Paid In Capital, Preferred [Member] | Common Stock [Member] | Additional Paid In Capital, Common [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | |||||||
Balance at Dec. 31, 2012 | $4,125 | $0 | $0 | $250 | $4,717,804 | $86,599 | $36,645,589 | ($70,358,575) | ($69,092) | ($28,973,300) |
Balance (in Shares) at Dec. 31, 2012 | 4,125,224 | 0 | 0 | 250,000 | ' | 86,598,659 | ' | ' | ' | ' |
Employee stock option expense | ' | ' | ' | ' | ' | ' | 83,875 | ' | ' | 83,875 |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | -18,512 | -18,512 |
Restricted stock issuance | ' | ' | ' | ' | ' | 1,225 | 221,275 | ' | ' | 222,500 |
Restricted stock issuance (in Shares) | ' | ' | ' | ' | ' | 1,225,000 | ' | ' | ' | ' |
Employee stock option exercise | ' | ' | ' | ' | ' | 11 | -11 | ' | ' | 0 |
Employee stock option exercise (in Shares) | ' | ' | ' | ' | ' | 11,000 | ' | ' | ' | 100,000 |
Shares issued for purchase of Promasys | ' | ' | ' | ' | ' | 2,270 | 383,630 | ' | ' | 385,900 |
Shares issued for purchase of Promasys (in Shares) | ' | ' | ' | ' | ' | 2,270,000 | ' | ' | ' | ' |
Net loss for the period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3,161,342 | 0 | -3,161,342 |
Balance at Dec. 31, 2013 | 4,125 | 0 | 0 | 250 | 4,717,804 | 90,105 | 37,334,358 | -73,519,917 | -87,604 | -31,460,879 |
Balance (in Shares) at Dec. 31, 2013 | 4,125,224 | 0 | 0 | 250,000 | ' | 90,104,659 | ' | ' | ' | ' |
Employee stock option expense | ' | ' | ' | ' | ' | ' | 53,783 | ' | ' | 53,783 |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | -110,839 | -110,839 |
Restricted stock issuance | ' | ' | ' | ' | ' | 1,400 | 236,600 | ' | ' | 238,000 |
Restricted stock issuance (in Shares) | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' |
Employee stock option exercise (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Net loss for the period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 404,914 | 0 | 404,914 |
Balance at Sep. 30, 2014 | $4,125 | $0 | $0 | $250 | $4,717,804 | $91,505 | $37,624,741 | ($73,115,003) | ($198,443) | ($30,875,021) |
Balance (in Shares) at Sep. 30, 2014 | 4,125,224 | 0 | 0 | 250,000 | ' | 91,504,659 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income/(loss) | $404,914 | ($4,467,125) | ($3,161,342) |
Adjustment to reconcile net income/(loss) to net cash (used in) operating activities | ' | ' | ' |
Change in derivative liabilities | -4,410,241 | 2,524,671 | ' |
Interest expense from derivative instruments | 405,216 | 456,750 | ' |
Employee stock compensation | 122,630 | 94,637 | ' |
Provision for doubtful accounts | 76,634 | -4,830 | 11,131 |
Depreciation and amortization | 216,069 | 174,436 | ' |
Changes in operating assets and liabilities | ' | ' | ' |
Accounts receivable | -1,364,149 | -46,819 | ' |
Prepaid expenses | -69,257 | -6,032 | ' |
Other current assets | -16,138 | 0 | ' |
Other assets | 32,159 | -409 | ' |
Accounts payable and accrued expenses | 695,548 | 410,815 | ' |
Patent settlement liability | -216,692 | -192,527 | ' |
Deferred revenue | 3,981,425 | -83,604 | ' |
Net cash (used in) operating activities | -141,882 | -1,140,037 | ' |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Purchase of property and equipment | -67,674 | -107,844 | ' |
Net cash (used in) investing activities | -67,674 | -107,844 | ' |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Repayments of notes payable | -20,925 | 0 | ' |
Proceeds from revolving line of credit | 200,000 | 800,000 | ' |
Net cash provided by financing activities | 179,075 | 800,000 | ' |
Effect of exchange rate changes | -36,557 | -30,485 | ' |
Net (decrease) in cash and cash equivalents | -67,038 | -478,366 | ' |
Cash and cash equivalents at beginning of period | 1,160,720 | 873,315 | 873,315 |
Cash and cash equivalents at end of period | 1,093,682 | 394,949 | 1,160,720 |
Cash paid during the period for: | ' | ' | ' |
Income taxes | 35,264 | 48,599 | ' |
Interest | 1,114,666 | 725,546 | ' |
Restricted Stock [Member] | ' | ' | ' |
Non-cash transactions: | ' | ' | ' |
Restricted stock issuance | 238,000 | 222,500 | ' |
Notes Payable Issued for Existing Notes Payable [Member] | ' | ' | ' |
Non-cash transactions: | ' | ' | ' |
Debt conversion, Notes Issued | 1,902,500 | 2,866,879 | ' |
Promissory Notes Issued for Accrued Interest [Member] | ' | ' | ' |
Non-cash transactions: | ' | ' | ' |
Debt conversion, Notes Issued | $980,000 | $529,000 | ' |
Note_1_Organization_and_Nature
Note 1 - Organization and Nature of Operations | 9 Months Ended | |
Sep. 30, 2014 | ||
Disclosure Text Block [Abstract] | ' | |
Nature of Operations [Text Block] | ' | |
NOTE 1: | ORGANIZATION AND NATURE OF OPERATIONS | |
OmniComm Systems, Inc. (“OmniComm” or the “Company”) is a healthcare technology company that provides web-based electronic data capture (“EDC”) solutions and related value-added services to pharmaceutical and biotech companies, clinical research organizations (“CROs”), and other clinical trial sponsors principally located in the United States and Europe. Our proprietary EDC software applications; TrialMaster®, TrialOne®, eClinical Suite, and Promasys® allow clinical trial sponsors and investigative sites to securely collect, validate, transmit and analyze clinical trial data. | ||
Our ability to compete within the EDC industry is predicated on our ability to continue enhancing and broadening the scope of solutions offered through our EDC software and services. Our research and development (“R&D”) efforts are focused on developing new and complementary software solutions, as well as enhancing our existing software solutions through the addition of increased functionality. During the nine month periods ended September 30, 2014 and September 30, 2013 we spent approximately $2,092,125 and $1,718,079, respectively, on R&D activities, which are primarily comprised of salaries to our developers and other R&D personnel and related costs associated with the development of our software products. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
NOTE 2: | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | |||||||||||||||||
The Company’s accounts include those of all its wholly-owned subsidiaries, which are more fully described in the Company’s 2013 Annual Report filed on Form 10-K, as amended, with the Securities and Exchange Commission, and have been prepared in conformity with (i) accounting principles generally accepted in the United States of America; and (ii) the rules and regulations of the United States Securities and Exchange Commission. All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated in consolidation. | |||||||||||||||||
UNAUDITED FINANCIAL STATEMENTS | |||||||||||||||||
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission. Pursuant to such rules and regulations, certain financial information and footnote disclosures normally included in the consolidated financial statements have been condensed or omitted. The results for the periods indicated are unaudited, but reflect all adjustments (consisting only of normally recurring adjustments) which management considers necessary for a fair presentation of operating results. | |||||||||||||||||
The operating results for the nine month period ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year-ended December 31, 2014. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K, as amended, for the year-ended December 31, 2013. | |||||||||||||||||
ESTIMATES IN FINANCIAL STATEMENTS | |||||||||||||||||
The preparation of the unaudited condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Significant estimates incorporated in our financial statements include the recorded allowance for doubtful accounts, the estimate of the appropriate amortization period of our intangible assets, the evaluation of whether our intangible assets have suffered any impairment, the allocation of revenues under multiple-element customer contracts, royalty-based patent liabilities, the value of derivatives associated with debt issued by the Company and the valuation of any corresponding discount to the issuance of our debt. Actual results may differ from those estimates. | |||||||||||||||||
Reclassifications | |||||||||||||||||
Certain reclassifications have been made in the 2013 financial statements to conform to the 2014 presentation. These reclassifications did not have any effect on our net income/(loss) or shareholders’ deficit. | |||||||||||||||||
foreign currency translation | |||||||||||||||||
The financial statements of the Company’s foreign subsidiaries are translated in accordance with Accounting Standards Codification (“ASC”) 830-30, Foreign Currency Matters—Translation of Financial Statements. The reporting currency for the Company is the U.S. dollar. The functional currency of the Company’s subsidiaries, OmniComm Europe GmbH in Germany, OmniComm Spain S.L. in Spain and OmniComm Promasys B.V. in the Netherlands is the Euro. The functional currency of the Company’s subsidiary OmniComm Ltd., in the United Kingdom, is the British Pound Sterling. Accordingly, the assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars using the exchange rate in effect at each balance sheet date. Revenue and expense accounts of the Company’s foreign subsidiaries are translated using an average rate of exchange during the period. Foreign currency translation adjustments are accumulated as a component of other comprehensive income/(loss) as a separate component of stockholders’ equity. Gains and losses arising from transactions denominated in foreign currencies are primarily related to intercompany accounts that have been determined to be temporary in nature and accordingly, are recorded directly to the statement of operations. We record translation gains and losses in accumulated other comprehensive income as a component of stockholders’ equity. We recorded translation losses of $110,839 and $30,485 for the nine month periods ended September 30, 2014 and September 30, 2013 respectively. | |||||||||||||||||
REVENUE RECOGNITION POLICY | |||||||||||||||||
The Company derives revenues from software licenses and services of its EDC products and services which can be purchased on a stand-alone basis. License revenues are derived principally from the sale of term licenses for the following software products offered by the Company: TrialMaster, TrialOne, eClinical Suite and Promasys (the “EDC Software”). Service revenues are derived principally from the Company's delivery of the hosted solutions of its TrialMaster and eClinical Suite software products, and consulting services and customer support, including training, for all of the Company's products. | |||||||||||||||||
The Company recognizes revenues when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the product or service has been provided to the customer; (3) the collection of fees is probable; and (4) the amount of fees to be paid by the customer is fixed or determinable. | |||||||||||||||||
The Company operates in one reportable segment which is the delivery of EDC Software and services to clinical trial sponsors. The Company segregates its revenues based on the activity cycle used to generate its revenues. Accordingly, revenues are currently generated through four main activities, including hosted applications, licensing, professional services and maintenance-related services. | |||||||||||||||||
Hosted Application Revenues | |||||||||||||||||
The Company offers its TrialMaster and eClinical Suite software products as hosted application solutions delivered through a standard web-browser, with customer support and training services. The Company's TrialOne and Promasys solutions are presently available on a licensed basis. To date, hosted applications revenues have been primarily related to TrialMaster and eClinical Suite. | |||||||||||||||||
Revenues resulting from TrialMaster and eClinical Suite application hosting services consist of three components of services for each clinical trial. The first component is comprised of application set up, including design of electronic case report forms and edit checks, installation and server configuration of the system. The second component involves application hosting and related support services as well as billable change orders which consist of amounts billed to customers for functionality changes made. The third component involves services required to close out, or lock, the database for the clinical trial. | |||||||||||||||||
Fees charged and costs incurred for the trial system design, set up and implementation are amortized and recognized ratably over the estimated hosting period. Work performed outside the original scope of work is contracted for separately as an additional fee and is generally recognized ratably over the remaining term of the hosting period. Fees for the first and third stages of the service are typically billed based upon milestones. Revenues earned upon completion of a contractual milestone are deferred and recognized over the estimated remaining hosting period. Fees for application hosting and related services in the second stage are generally billed monthly or quarterly in advance. Revenues resulting from hosting services for the eClinical Suite products consist of installation and server configuration, application hosting and related support services. Services for this offering are generally charged as a fixed fee payable on a quarterly or annual basis. Revenues are recognized ratably over the period of the service. | |||||||||||||||||
Licensing Revenues | |||||||||||||||||
The Company's software license revenues are earned from the sale of off-the-shelf software. From time-to-time a client might require significant modification or customization subsequent to delivery to the customer. The Company generally enters into software term licenses for its EDC Software products with its customers for three to five year periods, although customers have entered into both longer and shorter term license agreements. These arrangements typically include multiple elements: software license, consulting services and customer support. The Company bills its customers in accordance with the terms of the underlying contract. Generally, the Company bills license fees in advance for each billing cycle of the license term, which typically is either on a quarterly or annual basis. Payment terms are generally net 30 days. | |||||||||||||||||
In the past the Company has sold perpetual licenses for EDC Software products in certain situations to existing customers with the option to purchase customer support, and may, in the future, do so for new customers based on customer requirements or market conditions. The Company has established vendor specific objective evidence of fair value for the customer support. Accordingly, license revenues are recognized upon delivery of the software and when all other revenue recognition criteria are met. Customer support revenues are recognized ratably over the term of the underlying support arrangement. The Company generates customer support and maintenance revenues from its perpetual license customer base. | |||||||||||||||||
Professional Services | |||||||||||||||||
The Company may also enter into arrangements to provide consulting services separate from a license arrangement. In these situations, revenue is recognized on a time-and-materials basis. Professional services can be deemed to be as essential to the functionality of the software at inception and typically are for initial trial configuration, implementation planning, loading of software, building simple interfaces, running test data and documentation of procedures. Subsequent additions or extensions to license terms do not generally include additional professional services. | |||||||||||||||||
Pass-through Revenue and Expense | |||||||||||||||||
The Company accounts for pass-through revenue and expense in accordance with ASC 605-45, Principal Agent Considerations (“ASC 605-45”). In accordance with ASC 605-45 these amounts are recorded as revenue in the statement of operations with a corresponding expense recorded in cost of goods sold. Pass-through revenues and expenses include amounts associated with third-party services provided to our customers by our service and product partners. These third-party services are primarily comprised of Interactive Voice and Web Response software services (IVR and IWR), travel and shipping that are incurred on our clients’ behalf. | |||||||||||||||||
Maintenance Revenues | |||||||||||||||||
Maintenance includes telephone-based help desk support and software maintenance. The Company generally bundles customer support with the software license for the entire term of the arrangement. As a result, the Company generally recognizes revenues for both maintenance and software licenses ratably over the term of the software license and support arrangement. The Company allocates the revenues recognized for these arrangements to the different elements based on management's estimate of the relative fair value of each element. The Company generally invoices each of the elements based on separately quoted amounts and thus has a fairly accurate estimate of the relative fair values of each of the invoiced revenue elements. | |||||||||||||||||
The fees associated with each business activity for the periods ended September 30, 2014 and September 30, 2013, respectively are: | |||||||||||||||||
For the nine months ended | |||||||||||||||||
Revenue activity | 30-Sep-14 | 30-Sep-13 | |||||||||||||||
Set-up fees | $ | 3,363,576 | $ | 2,584,285 | |||||||||||||
Change orders | 337,903 | 344,400 | |||||||||||||||
Maintenance | 3,187,173 | 3,495,908 | |||||||||||||||
Software licenses | 2,730,770 | 2,333,016 | |||||||||||||||
Professional services | 1,700,498 | 1,625,600 | |||||||||||||||
Hosting | 595,793 | 572,935 | |||||||||||||||
Total | $ | 11,915,713 | $ | 10,956,144 | |||||||||||||
For the three months ended | |||||||||||||||||
Revenue activity | 30-Sep-14 | 30-Sep-13 | |||||||||||||||
Set-up fees | $ | 1,419,722 | $ | 988,990 | |||||||||||||
Change orders | 140,949 | 119,870 | |||||||||||||||
Maintenance | 1,175,527 | 1,186,023 | |||||||||||||||
Software licenses | 1,444,623 | 430,323 | |||||||||||||||
Professional services | 747,693 | 552,719 | |||||||||||||||
Hosting | 196,175 | 199,696 | |||||||||||||||
Total | $ | 5,124,689 | $ | 3,477,621 | |||||||||||||
COST OF REVENUES | |||||||||||||||||
Cost of revenues primarily consists of costs related to hosting, maintaining and supporting the Company’s application suite and delivering professional services and support. These costs include salaries, benefits, and bonuses for the Company’s professional services staff. Cost of revenues also includes outside service provider costs. Cost of revenues is expensed as incurred. | |||||||||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||||
Cash equivalents consist of highly liquid, short-term investments with maturities of 90 days or less. The carrying amount reported in the accompanying consolidated balance sheets approximates fair value. | |||||||||||||||||
ACCOUNTS RECEIVABLE | |||||||||||||||||
Accounts receivable are judged as to collectability by management and an allowance for bad debts is established as necessary. The allowance is based on an evaluation of the collectability of accounts receivable and prior bad debt experience. The Company had recorded an allowance for uncollectible accounts receivable of $142,051 as of September 30, 2014 and $65,341 as of December 31, 2013, respectively. | |||||||||||||||||
The following table summarizes activity in the Company's allowance for doubtful accounts for the periods presented. | |||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Beginning of period | $ | 65,341 | $ | 84,210 | |||||||||||||
Bad debt expense | 76,634 | 11,131 | |||||||||||||||
Write-offs | -0- | (30,000 | ) | ||||||||||||||
Exchange rate impact | 76 | -0- | |||||||||||||||
End of period | $ | 142,051 | $ | 65,341 | |||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Cash and cash equivalents and restricted cash are deposited with major financial institutions and, at times, such balances with any one financial institution may be in excess of FDIC-insured limits. As of September 30, 2014, $767,672 was deposited in excess of FDIC-insured limits. Management believes the risk in these situations to be minimal. | |||||||||||||||||
Except as follows, the Company has no significant off-balance-sheet risk or credit risk concentrations. Financial instruments that subject the Company to potential credit risks are principally cash equivalents and accounts receivable. Concentrated credit risk with respect to accounts receivable is limited to creditworthy customers. The Company's customers are principally located in the United States and Europe. The Company is directly affected by the overall financial condition of the pharmaceutical, biotechnology and medical device industries and management believes that credit risk exists and that any credit risk the Company faces has been adequately reserved for as of September 30, 2014. The Company maintains an allowance for doubtful accounts based on accounts past due according to contractual terms and historical collection experience. Actual losses, when incurred, are charged to the allowance. The Company's losses related to collection of accounts receivable have consistently been within management's expectations. As of September 30, 2014, the Company believes no additional credit risk exists beyond the amounts provided for in our allowance for uncollectible accounts. The Company evaluates its allowance for uncollectable accounts on a monthly basis based on a specific review of receivable aging and the period that any receivables are beyond the standard payment terms. The Company does not require collateral from its customers in order to mitigate credit risk. | |||||||||||||||||
One customer accounted for 13% of our revenues during the nine month period ended September 30, 2014 or approximately $1,585,000. One customer accounted for 11% of our revenues during the nine month period ended September 30, 2013 or approximately $1,221,000. The following table summarizes the number of customers who individually comprise greater than 10% of total revenue and/or total accounts receivable and their aggregate percentage of the Company's total revenue and gross accounts receivable for the periods presented. | |||||||||||||||||
Revenues | Accounts receivable | ||||||||||||||||
Percentage of | |||||||||||||||||
Number of | Percentage of | Number of | accounts | ||||||||||||||
For the period ended | customers | total revenues | customers | receivable | |||||||||||||
30-Sep-14 | 1 | 13% | 0 | 0% | |||||||||||||
31-Dec-13 | 1 | 11% | 2 | 23% | |||||||||||||
30-Sep-13 | 1 | 11% | 2 | 29% | |||||||||||||
The table below provides revenues from European customers for the nine month periods ended September 30, 2014 and September 30, 2013, respectively. | |||||||||||||||||
European revenues | |||||||||||||||||
For the nine months ended | |||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||
European revenues | % of Total revenues | European revenues | % of Total revenues | ||||||||||||||
$ | 1,750,331 | 14.70% | $ | 1,214,121 | 11.10% | ||||||||||||
The Company serves all of its hosting customers from third-party web hosting facilities located in the United States. The Company does not control the operation of these facilities, and they are vulnerable to damage or interruption. The Company maintains redundant systems that can be used to provide service in the event the third-party web hosting facilities become unavailable, although in such circumstances, the Company's service may be interrupted during the transition. | |||||||||||||||||
PROPERTY AND EQUIPMENT | |||||||||||||||||
Property and equipment are recorded at cost. Additions and betterments are capitalized; maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the asset’s estimated useful life, which is 5 years for leasehold improvements, computers, equipment and furniture and 3 years for software. Gains or losses on disposal are charged to operations. | |||||||||||||||||
ASSET IMPAIRMENT | |||||||||||||||||
Acquisitions and Intangible Assets | |||||||||||||||||
We account for acquisitions in accordance with ASC 805, Business Combinations (“ASC 805”) and ASC 350, Intangibles- Goodwill and Other (“ASC 350”). The acquisition method of accounting requires that assets acquired and liabilities assumed be recorded at their fair values on the date of a business acquisition. Our consolidated financial statements and results of operations reflect an acquired business from the completion date of an acquisition. | |||||||||||||||||
The judgments that we make in determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact net income in periods following an asset acquisition. We generally use either the income, cost or market approach to aid in our conclusions of such fair values and asset lives. The income approach presumes that the value of an asset can be estimated by the net economic benefit to be received over the life of the asset, discounted to present value. The cost approach presumes that an investor would pay no more for an asset than its replacement or reproduction cost. The market approach estimates value based on what other participants in the market have paid for reasonably similar assets. Although each valuation approach is considered in valuing the assets acquired, the approach ultimately selected is based on the characteristics of the asset and the availability of information. | |||||||||||||||||
Long-lived Assets | |||||||||||||||||
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. We use quoted market prices when available and independent appraisals and management estimates of future operating cash flows, as appropriate, to determine fair value. | |||||||||||||||||
FAIR VALUE MEASUREMENT | |||||||||||||||||
OmniComm’s capital structure includes the use of warrants and convertible debt features that are classified as derivative financial instruments. Derivative financial instruments are recognized as either assets or liabilities and are measured at fair value under ASC 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires that changes in the fair value of derivative financial instruments with no hedging designation be recognized as gains/(losses) in the earnings statement. The fair value measurement is determined in accordance with ASC 820, Fair Value Measurements and Disclosures. | |||||||||||||||||
DEFERRED REVENUE | |||||||||||||||||
Deferred revenue represents cash advances and amounts in accounts receivable as of the balance sheet date received in excess of revenue earned on on-going contracts. Payment terms vary with each contract but may include an initial payment at the time the contract is executed, with future payments dependent upon the completion of certain contract phases or targeted milestones. In the event of contract cancellation, the Company is generally entitled to payment for all work performed through the point of cancellation. As of September 30, 2014, the Company had $8,232,798 in deferred revenues relating to contracts for services to be performed over periods ranging from one month to 6.5 years. The Company had $5,702,672 in deferred revenues that are expected to be recognized in the next twelve fiscal months. | |||||||||||||||||
ADVERTISING | |||||||||||||||||
Advertising costs are expensed as incurred. Advertising costs were $338,486 and $175,095 for the nine month periods ended September 30, 2014 and September 30, 2013, respectively and are included under selling, general and administrative expenses in our unaudited condensed consolidated financial statements. | |||||||||||||||||
RESEARCH AND DEVELOPMENT EXPENSES | |||||||||||||||||
Software development costs are included in R&D and are expensed as incurred. ASC 985-20, Software Industry Costs of Software to Be Sold, Leased or Marketed (“ASC 985-20”), requires the capitalization of certain development costs of software to be sold once technological feasibility is established, which the Company defines as completion to the point of marketability. The capitalized cost is then amortized on a straight-line basis over the estimated product life. To date, the period between achieving technological feasibility and the general availability of such software has been short and software development costs qualifying for capitalization have been immaterial. Accordingly, the Company has not capitalized any software development costs under ASC 985-20. During the nine month periods ended September 30, 2014 and September 30, 2013 we spent approximately $2,092,125 and $1,718,079 respectively, on R&D activities, which include costs associated with the development of our software products and services for our clients’ projects and which are primarily comprised of salaries and related expenses for our software developers and consulting fees paid to third-party consultants. R&D costs are primarily included under Salaries, benefits and related taxes in our Statement of Operations. | |||||||||||||||||
EMPLOYEE EQUITY INCENTIVE PLANS | |||||||||||||||||
The OmniComm Systems, Inc. 2009 Equity Incentive Plan (the “2009 Plan”) was approved at our Annual Meeting of Shareholders on July 10, 2009. The 2009 Plan provides for the issuance of up to 7,500,000 shares to employees, directors and key consultants. The predecessor plan, the OmniComm Systems, Inc., 1998 Stock Incentive Plan (the “1998 Plan”) expired on December 31, 2008. The 1998 Plan provided for the issuance of up to 12,500,000 shares in accordance with the terms of the 1998 Plan document. Each plan is more fully described in “Note 14, Employee Equity Incentive Plans”. The Company accounts for its employee equity incentive plans under ASC 718, Compensation – Stock Compensation ("ASC 718") which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. | |||||||||||||||||
ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations. The Company currently uses the Black Scholes option pricing model to determine grant date fair value. | |||||||||||||||||
EARNINGS PER SHARE | |||||||||||||||||
The Company accounts for Earnings per Share using ASC 260, Earnings per Share. Unlike diluted earnings per share, basic earnings per share excludes any dilutive effects of options, warrants, and convertible securities. | |||||||||||||||||
INCOME TAXES | |||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). ASC 740 has as its basic objective the recognition of current and deferred income tax assets and liabilities based upon all events that have been recognized in the financial statements as measured by the provisions of the enacted tax laws. | |||||||||||||||||
Valuation allowances are established when necessary to reduce deferred tax assets to the estimated amount to be realized. Income tax expense represents the tax payable for the current period and the change during the period in the deferred tax assets and liabilities. | |||||||||||||||||
IMPACT OF NEW ACCOUNTING STANDARDS | |||||||||||||||||
During the first nine months of 2014, we adopted the following new accounting pronouncements: | |||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”, (“ASU No. 2013-11”). This ASU amends ASC 740, Income Taxes, to require that an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward; to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward does not exist at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. ASU No. 2013-11 is effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted. Our adoption of this standard on January 1, 2014 did not have a material impact on our consolidated financial statements. | |||||||||||||||||
In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, (“ASU 2014-09”). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt this ASU on January 1, 2017. Management is currently evaluating which transition approach to use and the impact of the adoption of this ASU on the Company's consolidated financial statements. | |||||||||||||||||
In August 2014, FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, (“ASU 2014-15”), which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. We believe the adoption of this guidance will not have a material effect on our consolidated financial statements. | |||||||||||||||||
Accounting standards-setting organizations frequently issue new or revised accounting rules. We regularly review all new pronouncements to determine their impact, if any, on our financial statements. |
Note_3_Going_Concern
Note 3 - Going Concern | 9 Months Ended | |
Sep. 30, 2014 | ||
Going Concern Note [Abstract] | ' | |
Going Concern Note | ' | |
NOTE 3: | GOING CONCERN | |
We have experienced net losses and negative cash flows from operations and have utilized debt and equity financings to help provide for our working capital, capital expenditure and R&D needs. We will continue to require substantial funds to continue our R&D activities and to market, sell and commercialize our technology. We may need to raise substantial additional capital to fund our future operations. Our capital requirements will depend on many factors, including the following: problems, delays, expenses and complications frequently encountered by companies developing and commercializing new technologies; the progress of our R&D activities; the rate of technological advances; determinations as to the commercial potential of our technology under development; the status of competitive technology; the establishment of collaborative relationships; the success of our sales and marketing programs; and other changes in economic, regulatory or competitive conditions in our planned business. | ||
Estimates about the adequacy of funding for our activities are based upon certain assumptions, including assumptions that the R&D programs relating to our technology can be conducted at projected costs and that progress towards the commercialization of our technology will be timely and successful. There can be no assurance that changes in our R&D plans, acquisitions or other events will not result in accelerated or unexpected expenditures. | ||
To satisfy our capital requirements, we may seek additional financing through debt and equity financings. There can be no assurance that any such funding will be available to us on favorable terms or at all. If adequate funds are not available when needed, we may be required to delay, scale back or eliminate some or all of our research and product development and marketing programs. If we are successful in obtaining additional financings, the terms of such financings may have the effect of diluting or adversely affecting the holdings or the rights of the holders of our common and preferred stock or result in increased interest expense in future periods. | ||
The ability of the Company to continue in existence is dependent on its having sufficient financial resources to bring products and services to market for marketplace acceptance. As a result of our historical operating losses, negative cash flows and accumulated deficits for the period ending September 30, 2014 there is substantial doubt about the Company’s ability to continue as a going concern. | ||
The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Note_4_Earnings_Loss_Per_Share
Note 4 - Earnings (Loss) Per Share | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||||||||||
NOTE 4: | EARNINGS/(LOSS) PER SHARE | ||||||||||||||||||||||||
Basic earnings/(loss) per share were calculated using the weighted average number of shares outstanding of 90,417,480 and 87,515,641 for the nine month periods ended September 30, 2014 and September 30, 2013, respectively. | |||||||||||||||||||||||||
Antidilutive shares of 81,482,435 and 79,502,620 have been omitted from the calculation of dilutive earnings/(loss) per share for the nine month periods ended September 30, 2014 and September 30, 2013, respectively, as the shares were antidilutive. Provided below is the reconciliation between numerators and denominators of the basic and diluted earnings per shares. There were no differences between basic and diluted earnings per share for the nine month periods ended September 30, 2014 and September 30, 2013. The table below provides a reconciliation of anti-dilutive securities outstanding as of September 30, 2014 and September 30, 2013, respectively. | |||||||||||||||||||||||||
Anti-Dilutive Security | 30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||
Preferred stock | 2,750,149 | 2,750,149 | |||||||||||||||||||||||
Employee stock options | 4,681,500 | 6,175,000 | |||||||||||||||||||||||
Warrants | 48,463,517 | 44,728,873 | |||||||||||||||||||||||
Convertible notes | 24,620,000 | 24,620,000 | |||||||||||||||||||||||
Shares issuable for accrued interest | 967,269 | 1,228,598 | |||||||||||||||||||||||
Total | 81,482,435 | 79,502,620 | |||||||||||||||||||||||
The employee stock options are exercisable at prices ranging from $0.045 to $0.64 per share. The exercise prices on the warrants range from $0.25 to $0.60 per share. Shares issuable upon conversion of Convertible Debentures have conversion prices ranging from $0.25 to $0.50 per share. | |||||||||||||||||||||||||
The Company’s convertible debt and convertible preferred stock have an anti-dilutive effect on net income/(loss) per share and were not included in the computation of diluted earnings per share. | |||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Income/(loss) | Shares | Per-share | Income/(loss) | Shares | Per-share | ||||||||||||||||||||
numerator | denominator | amount | numerator | denominator | amount | ||||||||||||||||||||
Basic EPS | $ | 250,642 | 90,417,480 | $ | 0 | $ | (4,621,397 | ) | 87,515,641 | $ | (0.05 | ) | |||||||||||||
Effect of dilutive securities - none | -0- | -0- | -0- | -0- | -0- | -0- | |||||||||||||||||||
Diluted EPS | $ | 250,642 | 90,417,480 | $ | 0 | $ | (4,621,397 | ) | 87,515,641 | $ | (0.05 | ) | |||||||||||||
For the three months ended | |||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Income/(loss) | Shares | Per-share | Income/(loss) | Shares | Per-share | ||||||||||||||||||||
numerator | denominator | amount | numerator | denominator | amount | ||||||||||||||||||||
Basic EPS | $ | 1,229,741 | 91,032,920 | $ | 0.01 | $ | 1,680,481 | 87,867,268 | $ | 0.02 | |||||||||||||||
Effect of dilutive securities - none | -0- | -0- | -0- | -0- | -0- | -0- | |||||||||||||||||||
Diluted EPS | $ | 1,229,741 | 91,032,920 | $ | 0.01 | $ | 1,680,481 | 87,867,268 | $ | 0.02 | |||||||||||||||
Note_5_Property_and_Equipment_
Note 5 - Property and Equipment, Net | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
NOTE 5: | PROPERTY AND EQUIPMENT, NET | ||||||||||||||||||||||||||||
Property and equipment consists of the following: | |||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||||||
Accumulated | Net book | Accumulated | Net book | useful life | |||||||||||||||||||||||||
Cost | depreciation | value | Cost | depreciation | value | (years) | |||||||||||||||||||||||
Computer & office equipment | $ | 1,852,102 | $ | 1,447,075 | $ | 405,027 | $ | 1,822,098 | $ | 1,326,256 | $ | 495,842 | 5 | ||||||||||||||||
Leasehold improvements | 93,137 | 81,170 | 11,967 | 93,812 | 75,735 | 18,077 | 5 | ||||||||||||||||||||||
Computer software | 1,585,252 | 1,520,180 | 65,072 | 1,556,497 | 1,477,801 | 78,696 | 3 | ||||||||||||||||||||||
Office furniture | 113,980 | 104,210 | 9,770 | 114,373 | 99,555 | 14,818 | 5 | ||||||||||||||||||||||
Total | $ | 3,644,471 | $ | 3,152,635 | $ | 491,836 | $ | 3,586,780 | $ | 2,979,347 | $ | 607,433 | |||||||||||||||||
Depreciation expense for the nine month periods ended September 30, 2014 and September 30, 2013 was $181,520 and $174,436, respectively. |
Note_6_Intangible_Assets_At_Co
Note 6 - Intangible Assets, At Cost | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
NOTE 6: | INTANGIBLE ASSETS, AT COST | ||||||||||||||||||||||||||||
Intangible assets consist of the following: | |||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||||||
Accumulated | Net book | Accumulated | Net book | useful life | |||||||||||||||||||||||||
Asset | Cost | amortization | value | Cost | amortization | value | (years) | ||||||||||||||||||||||
eClinical customer lists | $ | 1,392,701 | $ | 1,392,701 | $ | -0- | $ | 1,392,701 | $ | 1,392,701 | $ | -0- | 3 | ||||||||||||||||
Promasys B.V. customer lists | 124,725 | 7,622 | 117,103 | 136,253 | 1,514 | 134,739 | 15 | ||||||||||||||||||||||
Promasys B.V. software code | 72,837 | 13,353 | 59,484 | 72,943 | 2,431 | 70,512 | 5 | ||||||||||||||||||||||
Promasys B.V. URLs/Website | 62,993 | 19,248 | 43,745 | 68,814 | 3,823 | 64,991 | 3 | ||||||||||||||||||||||
Total | $ | 1,653,256 | $ | 1,432,924 | $ | 220,332 | $ | 1,670,711 | $ | 1,400,469 | $ | 270,242 | |||||||||||||||||
Amortization expense was $34,549 and $-0- for the nine month periods ended September 30, 2014 and September 30, 2013, respectively. | |||||||||||||||||||||||||||||
Remaining amortization expense for the Company’s intangible assets is as follows: | |||||||||||||||||||||||||||||
2014 | $ | 10,970 | |||||||||||||||||||||||||||
2015 | 43,880 | ||||||||||||||||||||||||||||
2016 | 40,380 | ||||||||||||||||||||||||||||
2017 | 22,883 | ||||||||||||||||||||||||||||
2018 | 20,454 | ||||||||||||||||||||||||||||
Thereafter | 81,765 | ||||||||||||||||||||||||||||
Total | $ | 220,332 | |||||||||||||||||||||||||||
Note_7_Accounts_Payable_and_Ac
Note 7 - Accounts Payable and Accrued Expenses | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
NOTE 7: | ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||||||||
Accounts payable and accrued expenses consist of the following: | |||||||||
Account | 30-Sep-14 | 31-Dec-13 | |||||||
Accounts payable | $ | 570,092 | $ | 724,421 | |||||
Accrued payroll and related costs | 620,026 | 260,072 | |||||||
Other accrued expenses | 118,218 | 88,292 | |||||||
Accrued interest | 948,168 | 1,468,171 | |||||||
Total accounts payable and accrued expenses | $ | 2,256,504 | $ | 2,540,956 | |||||
Note_8_Line_of_Credit_and_Note
Note 8 - Line of Credit and Notes Payable | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Debt Disclosure [Text Block] | ' | ||||||||||||||||||||||||||
NOTE 8: | LINES OF CREDIT AND NOTES PAYABLE | ||||||||||||||||||||||||||
On March 18, 2013, the Company entered into a $2,000,000 revolving Line of Credit (“Line of Credit”) with The Northern Trust Company guaranteed by our Chief Executive Officer and Director, Cornelis F. Wit. Mr. Wit receives 2.0% interest (approximately $9,500 per month) from the Company on the assets pledged for the Line of Credit. On December 18, 2013 the Company renewed the Line of Credit and increased the available balance to $4,000,000. The Line of Credit matures on December 17, 2014 and carries a variable interest rate based on the prime rate. At September 30, 2014, $3,700,000 was outstanding on the Line of Credit at an interest rate of 2.25%. | |||||||||||||||||||||||||||
At September 30, 2014, the Company owed $6,626,941 in notes payable all of which are unsecured. The table below provides details as to the terms and conditions of the notes payable. | |||||||||||||||||||||||||||
Ending | |||||||||||||||||||||||||||
principal | Non related party | Related party | |||||||||||||||||||||||||
Origination | Maturity | Interest | September 30, | Long | Long | ||||||||||||||||||||||
date | date | rate | 2014 | Current | term | Current | term | ||||||||||||||||||||
12/17/12 | 12/16/14 | 12% | $ | 20,000 | $ | 20,000 | $ | -0- | $ | -0- | $ | -0- | |||||||||||||||
1/1/13 | 1/1/15 | 10% | 308,562 | 308,562 | -0- | -0- | -0- | ||||||||||||||||||||
1/1/13 | 1/1/16 | 12% | 529,000 | -0- | -0- | -0- | 529,000 | ||||||||||||||||||||
2/1/13 | 1/1/16 | 12% | 20,000 | -0- | -0- | -0- | 20,000 | ||||||||||||||||||||
4/1/13 | 3/31/16 | 12% | 2,866,879 | -0- | -0- | -0- | 2,866,879 | ||||||||||||||||||||
4/4/14 | 4/1/17 | 12% | 45,000 | -0- | 45,000 | -0- | -0- | ||||||||||||||||||||
4/4/14 | 4/1/17 | 12% | 137,500 | -0- | 137,500 | -0- | -0- | ||||||||||||||||||||
4/4/14 | 4/1/17 | 10% | 120,000 | -0- | 120,000 | -0- | -0- | ||||||||||||||||||||
4/4/14 | 4/1/17 | 12% | 1,600,000 | -0- | -0- | -0- | 1,600,000 | ||||||||||||||||||||
1/1/14 | 4/1/17 | 12% | 980,000 | -0- | -0- | -0- | 980,000 | ||||||||||||||||||||
Discount on note payable | -0- | -0- | -0- | (670,535 | ) | ||||||||||||||||||||||
Total | $ | 6,626,941 | $ | 328,562 | $ | 302,500 | $ | -0- | $ | 5,325,344 | |||||||||||||||||
At December 31, 2013, the Company owed $5,667,865 in notes payable all of which were unsecured. The table below provides details as to the terms and conditions of the notes payable. | |||||||||||||||||||||||||||
Ending | |||||||||||||||||||||||||||
principal | Non related party | Related party | |||||||||||||||||||||||||
Origination | Maturity | Interest | December 31, | Long | Long | ||||||||||||||||||||||
date | date | rate | 2013 | Current | term | Current | term | ||||||||||||||||||||
12/31/11 | 1/1/15 | 12% | $ | 1,600,000 | $ | -0- | $ | -0- | $ | -0- | $ | 1,600,000 | |||||||||||||||
4/1/12 | 1/1/14 | 12% | 17,500 | 17,500 | -0- | -0- | -0- | ||||||||||||||||||||
12/17/12 | 12/16/14 | 12% | 20,000 | 20,000 | -0- | -0- | -0- | ||||||||||||||||||||
1/1/13 | 1/1/16 | 12% | 529,000 | -0- | -0- | -0- | 529,000 | ||||||||||||||||||||
1/1/13 | 1/1/15 | 10% | 308,562 | -0- | 308,562 | -0- | -0- | ||||||||||||||||||||
1/1/13 | 1/1/15 | 10% | 123,424 | -0- | 123,424 | -0- | -0- | ||||||||||||||||||||
1/1/13 | 1/1/15 | 12% | 45,000 | -0- | 45,000 | -0- | -0- | ||||||||||||||||||||
2/1/13 | 1/1/16 | 12% | 20,000 | -0- | -0- | -0- | 20,000 | ||||||||||||||||||||
3/5/13 | 1/1/15 | 12% | 137,500 | -0- | 137,500 | -0- | -0- | ||||||||||||||||||||
4/1/13 | 3/31/16 | 12% | 2,866,879 | -0- | -0- | -0- | 2,866,879 | ||||||||||||||||||||
Discount on note payable | -0- | -0- | -0- | (447,666 | ) | ||||||||||||||||||||||
Total | $ | 5,667,865 | $ | 37,500 | $ | 614,486 | $ | -0- | $ | 4,568,213 | |||||||||||||||||
On January 1, 2013, the Company issued a promissory note in the principal amount of $529,000 and warrants to purchase 2,116,000 shares of common stock of the Company at an exercise price of $0.25 per share with an expiration date of January 31, 2016 to our Chief Executive Officer and Director, Cornelis F. Wit, in exchange for accrued interest in the amount of $529,000. The note carries an interest rate of 12% per annum and is due on January 1, 2016. | |||||||||||||||||||||||||||
This issuance caused us to calculate and record a derivative liability for the warrant liability. The warrants were valued using the Black Scholes option pricing model. A value of $400,141 was calculated and allocated to the warrants and recorded as a liability to the issuance of the note payable. As a result of the liability we recorded a discount to the note payable. The carrying amount of the note at the time of issuance was therefore $128,859. The warrant liability (discount) will be amortized over the 36 month duration of the note payable. The Company will continue to perform a fair value calculation periodically on the warrant liability and accordingly the warrant liability is increased or decreased based on the fair value calculation. The resulting increase or decrease is reflected in operations as an unrealized gain or loss on changes in derivative liabilities. | |||||||||||||||||||||||||||
On January 1, 2013, the Company issued a promissory note in the amount of $308,562 in exchange for an existing promissory note in the same amount. The note carries an interest rate of 10% per annum and matures on January 1, 2015. | |||||||||||||||||||||||||||
On January 1, 2013, the Company issued a promissory note in the amount of $123,424 in exchange for an existing promissory note in the same amount. The note carries an interest rate of 10% per annum and matures on January 1, 2015. | |||||||||||||||||||||||||||
On January 1, 2013 the Company issued a promissory note in the amount of $45,000 in exchange for an existing promissory note in the same amount. The promissory note carries an interest rate of 12% and has a maturity date of January 1, 2015. | |||||||||||||||||||||||||||
On February 1, 2013 the Company issued a promissory note in the amount of $20,000 to our Chairman and Chief Technology Officer, Randall G. Smith, in exchange for an existing promissory note in the same amount. The promissory note carries an interest rate of 12% and has a maturity date of January 1, 2016. | |||||||||||||||||||||||||||
On March 5, 2013 the Company issued a promissory note in the amount of $137,500 in exchange for a promissory note in the same amount. The promissory note carries an interest rate of 12% and has a maturity date of January 1, 2015. | |||||||||||||||||||||||||||
On April 1, 2013 the Company issued a promissory note in the amount of $2,866,879 to our Chief Executive Officer and Director, Cornelis F. Wit, in exchange for an existing promissory note in the same amount. The promissory note carries an interest rate of 12% and has a maturity date of March 31, 2016. The expiration date of the warrants associated with the promissory note was also extended to March 31, 2016. | |||||||||||||||||||||||||||
On January 1, 2014, the Company issued a promissory note in the principal amount of $980,000 and warrants to purchase 3,920,000 shares of common stock of the Company at an exercise price of $0.25 per share with an expiration date of April 1, 2017 to our Chief Executive Officer and Director, Cornelis F. Wit, in exchange for accrued interest in the amount of $980,000. The note carries an interest rate of 12% per annum and is due on April 1, 2017. | |||||||||||||||||||||||||||
This issuance caused us to calculate and record a derivative liability for the warrant liability. The warrants were valued using the Black Scholes option pricing model. A value of $628,086 was calculated and allocated to the warrants and recorded as a liability to the issuance of the note payable. As a result of the liability we recorded a discount to the note payable. The carrying amount of the note at the time of issuance was therefore $351,914. The warrant liability (discount) will be amortized over the 39 month duration of the note payable. The Company will continue to perform a fair value calculation periodically on the warrant liability and accordingly the warrant liability is increased or decreased based on the fair value calculation. The resulting increase or decrease is reflected in operations as an unrealized gain or loss on changes in derivative liabilities. | |||||||||||||||||||||||||||
On April 4, 2014 the Company issued a promissory note payable to our Chief Executive Officer and Director, Cornelis F. Wit, in the amount of $1,600,000 in exchange for an existing promissory note in the same amount. The promissory note carries an interest rate of 12% and has a maturity date of April 1, 2017. | |||||||||||||||||||||||||||
On April 4, 2014 the Company issued a promissory note in the amount of $120,000 and paid $3,424 in principal in exchange for an existing promissory note in the amount of $123,424. The promissory note carries an interest rate of 10% and has a maturity date of April 1, 2017. | |||||||||||||||||||||||||||
On April 4, 2014 the Company issued a promissory note in the amount of $45,000 in exchange for an existing promissory note in the same amount. The promissory note carries an interest rate of 12% and has a maturity date of April 1, 2017. | |||||||||||||||||||||||||||
On April 4, 2014 the Company issued a promissory note in the amount of $137,500 in exchange for an existing promissory note in the same amount. The promissory note carries an interest rate of 12% and has a maturity date of April 1, 2017. |
Note_9_Convertible_Notes_Payab
Note 9 - Convertible Notes Payable | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debt Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||||||||
NOTE 9: | CONVERTIBLE NOTES PAYABLE | ||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the convertible debt outstanding as of September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||||||||
Principal | Discount | Carrying | Carrying amount | ||||||||||||||||||||||||||||||||||||||||||||
at | Total | at | amount at | Short term | Long term | ||||||||||||||||||||||||||||||||||||||||||
Date of issuance | Maturity | Interest | Original | 30-Sep-14 | Allocated | discount | 30-Sep-14 | 30-Sep-14 | Related | Non | Related | Non related | |||||||||||||||||||||||||||||||||||
date | rate | principal | discount | amortized | related | ||||||||||||||||||||||||||||||||||||||||||
8/1/99 | 6/30/04 | 10% | $ | 862,500 | $ | 75,000 | $ | -0- | $ | -0- | $ | -0- | $ | 75,000 | $ | -0- | $ | 75,000 | $ | -0- | $ | -0- | |||||||||||||||||||||||||
8/29/08 | 4/1/16 | 10% | 150,000 | 150,000 | 135,600 | 135,600 | -0- | 150,000 | -0- | -0- | -0- | 150,000 | |||||||||||||||||||||||||||||||||||
8/29/08 | 1/1/16 | 10% | 2,120,000 | 1,770,000 | 1,916,480 | 1,916,480 | -0- | 1,770,000 | -0- | -0- | 1,770,000 | -0- | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 160,000 | 160,000 | 44,024 | 44,024 | -0- | 160,000 | -0- | -0- | -0- | 160,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 200,000 | 200,000 | 55,030 | 55,030 | -0- | 200,000 | -0- | -0- | -0- | 200,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 4/1/16 | 12% | 100,000 | 100,000 | 27,515 | 27,515 | -0- | 100,000 | -0- | -0- | -0- | 100,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 4,615,000 | 4,520,000 | 1,243,681 | 1,243,681 | -0- | 4,520,000 | -0- | -0- | 4,505,000 | 15,000 | |||||||||||||||||||||||||||||||||||
9/30/09 | 1/1/16 | 12% | 1,400,000 | 1,200,000 | 526,400 | 526,400 | -0- | 1,200,000 | -0- | -0- | 1,100,000 | 100,000 | |||||||||||||||||||||||||||||||||||
12/31/09 | 1/1/16 | 12% | 1,490,000 | 1,490,000 | 935,720 | 935,720 | -0- | 1,490,000 | -0- | -0- | 1,440,000 | 50,000 | |||||||||||||||||||||||||||||||||||
Total | $ | 11,097,500 | $ | 9,665,000 | $ | 4,884,450 | $ | 4,884,450 | $ | -0- | $ | 9,665,000 | $ | -0- | $ | 75,000 | $ | 8,815,000 | $ | 775,000 | |||||||||||||||||||||||||||
The following table summarizes the convertible debt outstanding as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||
Principal | Discount | Carrying | Carrying amount | ||||||||||||||||||||||||||||||||||||||||||||
at | Total | at | amount at | Short term | Long term | ||||||||||||||||||||||||||||||||||||||||||
Date of issuance | Maturity | Interest | Original | December | Allocated | discount | 31-Dec-13 | 31-Dec-13 | Related | Non | Related | Non related | |||||||||||||||||||||||||||||||||||
date | rate | principal | 31, 2013 | discount | amortized | related | |||||||||||||||||||||||||||||||||||||||||
8/1/99 | 6/30/04 | 10% | $ | 862,500 | $ | 75,000 | $ | -0- | $ | -0- | $ | -0- | $ | 75,000 | $ | -0- | $ | 75,000 | $ | -0- | $ | -0- | |||||||||||||||||||||||||
8/29/08 | 1/1/15 | 10% | 150,000 | 150,000 | 135,600 | 135,600 | -0- | 150,000 | -0- | -0- | 150,000 | -0- | |||||||||||||||||||||||||||||||||||
8/29/08 | 1/1/16 | 10% | 2,120,000 | 1,770,000 | 1,916,480 | 1,916,480 | -0- | 1,770,000 | -0- | -0- | 1,770,000 | -0- | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/15 | 12% | 100,000 | 100,000 | 27,515 | 27,515 | -0- | 100,000 | -0- | -0- | -0- | 100,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 160,000 | 160,000 | 44,024 | 44,024 | -0- | 160,000 | -0- | -0- | 160,000 | -0- | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 200,000 | 200,000 | 55,030 | 55,030 | -0- | 200,000 | -0- | -0- | -0- | 200,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 4,615,000 | 4,520,000 | 1,243,681 | 1,243,681 | -0- | 4,520,000 | -0- | -0- | 4,505,000 | 15,000 | |||||||||||||||||||||||||||||||||||
9/30/09 | 1/1/16 | 12% | 1,400,000 | 1,200,000 | 526,400 | 526,400 | -0- | 1,200,000 | -0- | -0- | 1,100,000 | 100,000 | |||||||||||||||||||||||||||||||||||
12/31/09 | 1/1/16 | 12% | 1,490,000 | 1,490,000 | 935,720 | 935,720 | -0- | 1,490,000 | -0- | -0- | 1,440,000 | 50,000 | |||||||||||||||||||||||||||||||||||
Total | $ | 11,097,500 | $ | 9,665,000 | $ | 4,884,450 | $ | 4,884,450 | $ | -0- | $ | 9,665,000 | $ | -0- | $ | 75,000 | $ | 9,125,000 | $ | 465,000 | |||||||||||||||||||||||||||
10% Convertible Notes | |||||||||||||||||||||||||||||||||||||||||||||||
During 1999, the Company issued 10% Convertible Notes payable in the amount of $862,500 pursuant to a private offering. There were costs of $119,625 associated with this offering. The net proceeds to the Company were $742,875. The notes bear interest at ten percent annually, payable semi-annually. The notes were convertible after maturity, which was September 30, 2004, into shares of common stock of the Company at $1.25 per share. As of September 30, 2014, $787,500 of the Convertible Notes had been repaid in cash or converted into 1,495,179 shares of common stock of the Company leaving an outstanding principal balance of $75,000 that is in default. There was $115,358 of accrued interest at September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||||||||
Secured Convertible Debentures | |||||||||||||||||||||||||||||||||||||||||||||||
On September 30, 2009, the Company sold an aggregate of $1,400,000 principal amount 12% Secured Convertible Debentures (the “Debentures”) and common stock purchase warrants (the “Warrants”) to purchase an aggregate of 5,600,000 shares of our common stock exercisable at a price of $0.25 per share for four years subsequent to the closing of the transaction to four accredited investors including our Chief Executive Officer and Director, Cornelis F. Wit. The Debentures, which bear interest at 12% per annum, matured on March 30, 2011. The Debentures are convertible at any time at the option of the holder into shares of our common stock based upon a conversion rate of $0.25 per share. On March 30, 2011, the Company repaid $200,000 of the outstanding principal amounts owed and extended $1,200,000 of the convertible debentures until April 1, 2013, including $1,100,000 in convertible debentures held by our Chief Executive Officer and Director, Cornelis F. Wit. The Company also extended the expiration date of the warrants associated with the offering until September 30, 2015. On February 22, 2013 the Company and the lenders agreed to extend the maturity date of $1,200,000 of the convertible debentures including $1,100,000 due to our Chief Executive Officer and Director, Cornelis F. Wit to January 1, 2016. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. | |||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debentures | |||||||||||||||||||||||||||||||||||||||||||||||
On August 29, 2008, the Company sold $2,270,000 of convertible debentures and warrants to purchase an aggregate of 4,540,000 shares of our common stock to four accredited investors including our Chief Executive Officer and Director, Cornelis F. Wit, and Guus van Kesteren, a Director of the Company. The convertible debentures, which bear interest at 10% per annum, were due on August 29, 2010. The convertible debentures are convertible at any time at the option of the holder into shares of our common stock based upon a conversion rate of $0.50 per share. On September 30, 2009, Mr. Wit and Mr. van Kesteren extended $1,920,000 of the convertible debentures until August 29, 2013 in accordance with the terms of a Secured Convertible Debenture issued on that date. On February 22, 2013 the Company and Mr. van Kesteren extended the maturity date of $150,000 of the convertible debentures due to Mr. van Kesteren to January 1, 2015. The expiration date of the warrants associated with the debentures was also extended to January 1, 2015. On February 22, 2013 the Company and Mr. Wit extended the maturity date of $1,770,000 of the convertible debentures due to Mr. Wit to January 1, 2016. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. On April 21, 2014 the Company and Mr. van Kesteren extended the maturity date of $150,000 of the convertible debentures due to Mr. van Kesteren to April 1, 2016. The expiration date of the warrants associated with the debentures was also extended to April 1, 2016. On July 31, 2014 Mr. van Kesteren’s term on the Board of Directors ended. Effective on the same date, his convertible note in the amount of $150,000 was reclassified from Related Party to Non-Related Party. | |||||||||||||||||||||||||||||||||||||||||||||||
On December 16, 2008, we sold $5,075,000 of convertible debentures and warrants to purchase an aggregate of 10,150,000 shares of our common stock to eleven accredited investors including our Chief Executive Officer and Director, Chief Operating Officer, Chairman and Chief Technology Officer, Chief Financial Officer and three of our Directors. The convertible debentures, which bear interest at 12% per annum, were due on December 16, 2010. The convertible debentures are convertible at any time at the option of the holder into shares of our common stock based upon a conversion rate of $0.50 per share. On September 30, 2009 the officers, directors and an affiliate of the Company extended $4,980,000 of Convertible Notes until December 16, 2013 in accordance with the terms of a Secured Convertible Debenture issued on that date. On February 22, 2013 the Company and the lenders agreed to extend the maturity date of $4,505,000 of the convertible debentures including $4,475,000 due to our Chief Executive Officer and Director, Cornelis F. Wit, $25,000 due to our Chief Operating Officer and President, Stephen E. Johnson, and $5,000 due to our Chairman and Chief Technology Officer, Randall G. Smith, to January 1, 2016. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. On February 27, 2013 the Company and Matthew Veatch, a former director of the Company, extended the maturity date of $15,000 of convertible debentures issued to Mr. Veatch to January 1, 2016. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. On March 6, 2013, the Company and the lender agreed to extend the maturity date of $200,000 of convertible debentures to January 1, 2014. The expiration date of the warrants associated with the debentures was also extended to January 1, 2014. On March 12, 2013, the Company and the lenders agreed to extend the maturity date of $100,000 of convertible debentures to January 1, 2015. The expiration date of the warrants associated with the debentures was also extended to January 1, 2015. On December 5, 2013 the Company and Guus van Kesteren, a Director of the Company, extended the maturity date of $160,000 of the convertible debentures due to Mr. van Kesteren to January 1, 2016. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. On December 9, 2013, the Company and the lender agreed to extend the maturity date of $200,000 of convertible debentures to January 1, 2016. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. On April 28, 2014, the Company and the lender agreed to extend the maturity date of $100,000 of convertible debentures to April 1, 2016. The expiration date of the warrants associated with the debentures was also extended to April 1, 2016. On July 31, 2014 Mr. van Kesteren’s term on the Board of Directors ended. Effective on the same date, his convertible note in the amount of $160,000 was reclassified from Related Party to Non-Related Party. | |||||||||||||||||||||||||||||||||||||||||||||||
On December 31, 2009, the Company sold an aggregate of $1,490,000 principal amount 12% convertible debentures and warrants to purchase an aggregate of 5,960,000 shares of our common stock exercisable at a price of $0.25 per share for four years subsequent to the closing of the transaction to three accredited investors including our Chief Executive Officer and Director, Cornelis F. Wit. The debentures, which bear interest at 12% per annum, matured on June 30, 2011. The debentures are convertible at any time at the option of the holder into shares of our common stock based upon a conversion rate of $0.25 per share. On June 30, 2011, the Company and the lenders agreed to extend all $1,490,000 of the convertible debentures until October 1, 2013, including $1,440,000 of the Debentures held by Mr. Wit. The Company also extended the expiration date of the warrants associated with the December 2009 offering until December 31, 2015. On February 22, 2013 the Company and the lenders agreed to extend the maturity date of $1,490,000 of the convertible debentures, including $1,440,000 due to Mr. Wit, to January 1, 2016. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. | |||||||||||||||||||||||||||||||||||||||||||||||
The payments required at maturity under the Company’s outstanding convertible debt at September 30, 2014 are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 75,000 | |||||||||||||||||||||||||||||||||||||||||||||
2015 | -0- | ||||||||||||||||||||||||||||||||||||||||||||||
2016 | 9,590,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 9,665,000 | |||||||||||||||||||||||||||||||||||||||||||||
Note_10_Fair_Value_Measurement
Note 10 - Fair Value Measurement | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||||||
NOTE 10: | FAIR VALUE MEASUREMENT | ||||||||||||||||||||||||
The Company measures the fair value of its assets and liabilities under the guidance of ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but its provisions apply to all other accounting pronouncements that require or permit fair value measurement. | |||||||||||||||||||||||||
ASC 820 clarifies that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. ASC 820 requires the Company to use valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: | |||||||||||||||||||||||||
● | Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets; | ||||||||||||||||||||||||
● | Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly such as quoted prices for similar assets or liabilities or market-corroborated inputs; and | ||||||||||||||||||||||||
● | Level 3: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions about how market participants would price the assets or liabilities. | ||||||||||||||||||||||||
The valuation techniques that may be used to measure fair value are as follows: | |||||||||||||||||||||||||
A. | Market approach - Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities | ||||||||||||||||||||||||
B. | Income approach - Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option-pricing models and excess earnings method | ||||||||||||||||||||||||
C. | Cost approach - Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost) | ||||||||||||||||||||||||
The Company also adopted the provisions of ASC 825, Financial Instruments (“ASC 825”). ASC 825 allows companies to choose to measure eligible assets and liabilities at fair value with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to re-measure any of its existing financial assets or liabilities under the provisions of this Statement. The Company elected the fair value option for the issuance of warrants associated with the new promissory notes issued in the nine month periods ended September 30, 2014 and September 30, 2013. | |||||||||||||||||||||||||
The Company’s financial assets or liabilities subject to ASC 820 as of September 30, 2014 include the conversion feature and warrant liability associated with convertible debentures issued during fiscal 2008 and 2009 and the warrants issued during 2011, 2013 and 2014 that are associated with notes payable that were issued to our Chief Executive Officer and Director, Cornelis F. Wit. The conversion feature and warrants were deemed to be derivatives (the “Derivative Instruments”) since a fixed conversion price cannot be determined for either of the Derivative Instruments due to anti-dilution provisions embedded in the offering documents for the convertible debentures. The derivative instruments were not issued for risk management purposes and as such are not designated as hedging instruments under the provisions of ASC 815, Disclosures about Derivative Instruments and Hedging Activities. See Note 9 – Convertible Notes Payable. | |||||||||||||||||||||||||
Following is a description of the valuation methodologies used to determine the fair value of the Company’s financial assets including the general classification of such instruments pursuant to the valuation hierarchy. | |||||||||||||||||||||||||
A summary as of September 30, 2014 of the fair value of liabilities measured at fair value on a recurring basis follows: | |||||||||||||||||||||||||
Fair value at | Quoted prices in active markets for identical assets/ liabilities | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||
Derivatives: (1) (2) | |||||||||||||||||||||||||
Conversion feature liability | $ | 1,533,362 | $ | -0- | $ | -0- | $ | 1,533,362 | |||||||||||||||||
Warrant liability | 3,754,666 | -0- | -0- | 3,754,666 | |||||||||||||||||||||
Total of derivative liabilities | $ | 5,288,028 | $ | -0- | $ | -0- | $ | 5,288,028 | |||||||||||||||||
(1) The fair value of the derivative instruments was estimated using the Income Approach and the Black Scholes option pricing model with the following assumptions for the nine months ended September 30, 2014 | |||||||||||||||||||||||||
(2) The fair value at the measurement date is equal to their carrying value on the balance sheet | |||||||||||||||||||||||||
Significant valuation assumptions of derivative instruments at September 30, 2014 | |||||||||||||||||||||||||
Risk free interest rate | 0.11% | ||||||||||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||||||||||
Expected volatility | 124.6% to 178.8% | ||||||||||||||||||||||||
Expected life (range in years) | |||||||||||||||||||||||||
Conversion feature liability | 1.25 to 1.50 | ||||||||||||||||||||||||
Warrant liability | 1.25 to 2.50 | ||||||||||||||||||||||||
A summary as of December 31, 2013 of the fair value of liabilities measured at fair value on a recurring basis follows: | |||||||||||||||||||||||||
Fair value at | Quoted prices in active markets for identical assets/ liabilities | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||
Derivatives: (1) (2) | |||||||||||||||||||||||||
Conversion feature liability | $ | 3,126,206 | $ | -0- | $ | -0- | $ | 3,126,206 | |||||||||||||||||
Warrant liability | 5,943,977 | -0- | -0- | 5,943,977 | |||||||||||||||||||||
Total of derivative liabilities | $ | 9,070,183 | $ | -0- | $ | -0- | $ | 9,070,183 | |||||||||||||||||
(1) The fair value of the derivative instruments was estimated using the Income Approach and the Black Scholes option pricing model with the following assumptions for the year ended December 31, 2013 | |||||||||||||||||||||||||
(2) The fair value at the measurement date is equal to their carrying value on the balance sheet | |||||||||||||||||||||||||
Significant valuation assumptions of derivative instruments at December 31, 2013 | |||||||||||||||||||||||||
Risk free interest rate | 0.12% to 0.13% | ||||||||||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||||||||||
Expected volatility | 166.7% to 217.1% | ||||||||||||||||||||||||
Expected life (range in years) | |||||||||||||||||||||||||
Conversion feature liability | 1.00 to 2.00 | ||||||||||||||||||||||||
Warrant liability | 1.00 to 2.25 | ||||||||||||||||||||||||
A summary as of September 30, 2014 of the fair value of liabilities measured at fair value on a non-recurring basis follows: | |||||||||||||||||||||||||
Carrying amount December 31, | Carrying amount September 30, | Quoted prices in active markets for identical assets/ liabilities | Significant other observable inputs | Significant unobservable inputs | |||||||||||||||||||||
2013 | 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Acquired assets (3) | |||||||||||||||||||||||||
Promasys B.V. customer lists (4) | $ | 134,739 | $ | 117,103 | $ | -0- | $ | -0- | $ | 136,253 | |||||||||||||||
Promasys B.V. software code (4) | 70,512 | 59,484 | -0- | -0- | 72,943 | ||||||||||||||||||||
Promasys B.V. URLs/website (4) | 64,991 | 43,745 | -0- | -0- | 68,814 | ||||||||||||||||||||
Total | $ | 270,242 | $ | 220,332 | $ | -0- | $ | -0- | $ | 278,010 | |||||||||||||||
(3) The fair value of the acquired assets was estimated using the Income Approach with a discounted cash flow valuation methodology applied. | |||||||||||||||||||||||||
(4) The acquired Promasys B.V. software code, customer list and URLs/website are not measured on a recurring basis since their initial fair value has been deemed to have a finite life and is being amortized periodically. Instead the Company performs an impairment analysis on a quarterly basis in order to determine whether the carrying value of the assets reflects the fair value of the assets in a market based transaction. | |||||||||||||||||||||||||
Other identifiable intangible assets, which are subject to amortization, are being amortized using the straight-line method over their estimated useful lives ranging from 3 to 15 years. The Impairment or Disposal of Long-Lived Asset subsection of ASC 360, Property, Plant and Equipment requires us to test the recoverability of long-lived assets, including identifiable intangible assets with definite lives, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In testing for potential impairment, if the carrying value of the asset group exceeds the expected undiscounted cash flows, we must then determine the amount by which the fair value of those assets exceeds the carrying value and determine the amount of impairment, if any. | |||||||||||||||||||||||||
The Company’s goodwill and other identifiable intangible assets with indefinite lives are measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3). | |||||||||||||||||||||||||
The table below presents the fair value of the Goodwill as of September 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
Goodwill | $ | 618,541 | $ | 675,710 | |||||||||||||||||||||
Goodwill and other identifiable intangible assets with indefinite lives are reviewed for impairment annually, and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Long-lived assets and identifiable intangible assets are also reviewed for impairment whenever events or changes in circumstances indicate that amounts may not be recoverable. If the testing performed indicates that impairment has occurred, the Company will record a noncash impairment charge for the difference between the carrying amount of the goodwill or other intangible assets and the implied fair value of the goodwill or other intangible assets in the period the determination is made. The $57,169 change in the value of Goodwill during the 9 month period ended September 30, 2014 is the result of exchange rate variance. | |||||||||||||||||||||||||
The table below presents the unrealized gains/losses for the nine month periods ended September 30, 2014 and September 30, 2013. | |||||||||||||||||||||||||
Other income | |||||||||||||||||||||||||
for the nine months ended | |||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
The net amount of gains/(losses) for the period included in earnings attributable to the unrealized gain/(loss) from changes in derivative liabilities at the reporting date | $ | 4,410,241 | $ | (2,524,671 | ) | ||||||||||||||||||||
Total unrealized gains/(losses) included in earnings | $ | 4,410,241 | $ | (2,524,671 | ) | ||||||||||||||||||||
The tables below set forth a summary of changes in fair value of the Company’s Level 3 financial liabilities at fair value for the periods ended September 30, 2014 and December 31, 2013. The tables reflect changes for all financial liabilities at fair value categorized as Level 3 as of September 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||
Level 3 financial assets and financial liabilities at fair value | |||||||||||||||||||||||||
Net unrealized | |||||||||||||||||||||||||
(gains)/losses | Net | ||||||||||||||||||||||||
relating to | purchases, | ||||||||||||||||||||||||
Balance, | instruments | issuances | Net transfers | Balance, | |||||||||||||||||||||
beginning | Net realized | still held at the | and | in and/or out | end of | ||||||||||||||||||||
of year | gains/(losses) | reporting date | settlements | of Level 3 | period | ||||||||||||||||||||
Period ended September 30, 2014 | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Conversion feature liability | $ | 3,126,206 | $ | -0- | $ | (1,592,844 | ) | $ | -0- | $ | -0- | $ | 1,533,362 | ||||||||||||
Warrant liability | 5,943,977 | -0- | (2,817,397 | ) | 628,086 | -0- | 3,754,666 | ||||||||||||||||||
Total of derivative liabilities | $ | 9,070,183 | $ | -0- | $ | (4,410,241 | ) | $ | 628,086 | $ | -0- | $ | 5,288,028 | ||||||||||||
Level 3 financial assets and financial liabilities at fair value | |||||||||||||||||||||||||
Net unrealized | |||||||||||||||||||||||||
(gains)/losses | Net | ||||||||||||||||||||||||
relating to | purchases, | ||||||||||||||||||||||||
Balance, | instruments | issuances | Net transfers | Balance, | |||||||||||||||||||||
beginning | Net realized | still held at the | and | in and/or out | end of | ||||||||||||||||||||
of year | gains/(losses) | reporting date | settlements | of Level 3 | year | ||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Conversion feature liability | $ | 2,287,323 | $ | -0- | $ | 838,883 | $ | -0- | $ | -0- | $ | 3,126,206 | |||||||||||||
Warrant liability | 6,287,598 | -0- | (743,762 | ) | 400,141 | -0- | 5,943,977 | ||||||||||||||||||
Total of derivative liabilities | $ | 8,574,921 | $ | -0- | $ | 95,121 | $ | 400,141 | $ | -0- | $ | 9,070,183 | |||||||||||||
Note_11_Commitments_and_Contin
Note 11 - Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
NOTE 11: | COMMITMENTS AND CONTINGENCIES | ||||
The Company currently leases office space under operating leases for its office locations and has operating leases related to server and network co-location and disaster recovery for its operations. The minimum future lease payments required under the Company’s operating leases at September 30, 2014 are as follows: | |||||
2014 | $ | 169,095 | |||
2015 | 657,752 | ||||
2016 | 369,825 | ||||
2017 | 52,234 | ||||
2018 | 5,354 | ||||
Total | $ | 1,254,260 | |||
In addition to annual base rental payments, the Company pays for the operating expenses associated with its leased office space and is responsible for any escalation in operating expenses as determined in the leases. Rent expense was $663,961 and $665,932 for the nine month periods ended September 30, 2014 and September 30, 2013, respectively. | |||||
The Company’s Fort Lauderdale, Florida corporate office lease expires in September 2016. The Company’s lease on its New Jersey field office expires in February 2016. The Company currently operates its wholly-owned subsidiary, OmniComm Ltd., in the United Kingdom under the terms of a lease that expires in September 2017. The Company currently operates its wholly-owned subsidiary, OmniComm Europe, GmbH, in Germany under the terms of a lease that expires in July 2015. The Company currently operates its wholly-owned subsidiary, OmniComm Promasys B.V, in the Netherlands under the terms of a lease that expires in October 2018. | |||||
LEGAL PROCEEDINGS | |||||
From time to time the Company may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of September 30, 2014, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations. | |||||
PATENT LITIGATION SETTLEMENT | |||||
On April 9, 2009, we entered into a Settlement and License Agreement with DataSci, LLC (“DataSci”). DataSci granted us a worldwide, non-exclusive non-transferable right and license under the Licensed Patent and the right to sublicense TrialMaster on a Technology Transfer and Technology Transition basis. Under the terms of the license, we are obligated to pay royalties quarterly for sales of Licensed Products, as defined therein, from January 1, 2009 until the expiration of the Licensed Patent equal to two percent (2%) of OmniComm’s annual Gross Revenues or, alternatively, the annual minimum royalty payment(s), whichever is greater. The remaining minimum royalty payments per year are as follows: | |||||
2014 | $ | 625,000 | |||
2015 | 450,000 | ||||
2016 | 450,000 | ||||
2017 | 450,000 | ||||
Total | $ | 1,975,000 | |||
During the nine month periods ended September 30, 2014 and September 30, 2013 the Company recorded a charge to earnings of $120,809 and $144,972 respectively, which amounts represent (i) the amount of additional license expense incurred above the stipulated minimum in the DataSci License Agreement during the nine month periods ended September 30, 2014 and September 30, 2013 and (ii) the accretion of the difference between the total stipulated annual minimum royalty payments and the recorded present value accrual of the annual minimum royalty payments. | |||||
EMPLOYMENT AGREEMENTS | |||||
We have employment agreements in place with the following members of our executive management team: | |||||
Cornelis F. Wit, Chief Executive Officer | |||||
Randall G. Smith, Chief Technology Officer | |||||
Stephen E. Johnson, President and Chief Operating Officer | |||||
The employment agreements provide, among other things, for participation in employee benefits available to employees and executives. Each of the agreements will renew for successive one-year terms unless the agreement is expressly cancelled by either the employee or the Company ninety days prior to the end of the term. Under the terms of the agreement, we may terminate the employee’s employment upon 30 days notice of a material breach and the employee may terminate the agreement under the same terms and conditions. The employment agreements contain non-disclosure and severance provisions, as well as non-compete clauses. |
Note_12_Related_Party_Transact
Note 12 - Related Party Transactions | 9 Months Ended | ||
Sep. 30, 2014 | |||
Related Party Transactions [Abstract] | ' | ||
Related Party Transactions Disclosure [Text Block] | ' | ||
NOTE 12: | RELATED PARTY TRANSACTIONS | ||
On February 1, 2013, our Chairman and Chief Technology Officer, Randall G. Smith extended the maturity date of his $20,000 promissory note until January 1, 2016. The promissory note bears interest at 12% per annum. On December 31, 2011, Mr. Smith extended the maturity date of his promissory note until April 1, 2013. The note was originally issued on December 16, 2010 with a maturity date of December 31, 2011. | |||
On February 22, 2013, our Director, Guus van Kesteren, extended the maturity date of his $150,000 of convertible debentures to January 1, 2015. The debentures bear interest at 10% per annum. The convertible debentures were originally issued in August 2008. The expiration date of the warrants associated with the debentures was also extended to January 1, 2015. | |||
On February 22, 2013, our Chief Operating Officer and President, Stephen E. Johnson extended the maturity date of his $25,000 of convertible debentures to January 1, 2016. The debentures bear interest at 12% per annum. The convertible debentures were originally issued in December 2008. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. | |||
On February 22, 2013, our Chairman and Chief Technology Officer, Randall G. Smith extended the maturity date of his $5,000 of convertible debentures to January 1, 2016. The debentures bear interest at 12% per annum. The convertible debentures were originally issued in December 2008. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. | |||
On December 5, 2013, our Director, Guus van Kesteren, extended the maturity date of his $160,000 of convertible debentures to January 1, 2016. The debentures bear interest at 12% per annum. The convertible debentures were originally issued in December 2008. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. On July 31, 2014 Mr. van Kesteren’s term on the Board of Directors ended. Effective on the same date, his convertible note in the amount of $160,000 was reclassified from Related Party to Non-Related Party. | |||
On April 21, 2014, our Director, Guus van Kesteren, extended the maturity date of his $150,000 of convertible debentures to April 1, 2016. The debentures bear an interest rate of 10% per annum. The convertible debentures were originally issued in August 2008. The expiration date of the warrants associated with the debentures was also extended to April 1, 2016. On July 31, 2014 Mr. van Kesteren’s term on the Board of Directors ended. Effective on the same date, his convertible note in the amount of $150,000 was reclassified from Related Party to Non-Related Party. | |||
As of September 30, 2014, we have an aggregate of $14,760,879 principal amount of convertible debentures and promissory notes outstanding to Cornelis F. Wit, our Chief Executive Officer and Director, and have issued certain warrants to Mr. Wit, as follows: | |||
● | In June 2008, Mr. Wit invested $510,000 in convertible notes. On August 29, 2008, Mr. Wit converted the $510,000 and invested an additional $1,260,000 in a private placement of convertible debentures and warrants to purchase 3,540,000 shares of our common stock. The convertible debentures, which bear interest at 10% per annum, were due on August 29, 2010. The convertible debentures are convertible at any time at the option of the holder into shares of our common stock based upon a conversion rate of $0.50 per share. On September 30, 2009, the Company and Mr. Wit extended the $1,770,000 of convertible debentures until August 29, 2013 in accordance with the terms of a Secured Convertible Debenture issued on that date. On February 22, 2013, the Company and Mr. Wit extended the maturity date of the $1,770,000 of convertible debentures to January 1, 2016. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. | ||
● | In February 2008, Mr. Wit invested $150,000 in promissory notes and from September 2008 to December 2008, Mr. Wit invested $4,200,000 in convertible notes. On December 16, 2008, Mr. Wit converted the $4,350,000 into a private placement of convertible debentures and warrants to purchase 8,700,000 shares of our common stock. The convertible debentures, which bear interest at 12% per annum, were due on December 16, 2010. The convertible debentures are convertible at any time at the option of the holder into shares of our common stock based upon a conversion rate of $0.50 per share. On September 30, 2009, the Company and Mr. Wit extended the $4,350,000 of convertible debentures until December 16, 2013 in accordance with the terms of a Secured Convertible Debenture issued on that date. In a private transaction on October 16, 2012, Mr. Wit purchased $125,000 of the December 2008 convertible debentures and the related 250,000 warrants from Mr. Ronald Linares, the Company’s former Chief Financial Officer. On February 22, 2013, the Company and Mr. Wit extended the maturity date of the $4,475,000 of convertible debentures to January 1, 2016. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. | ||
● | From July 2009 to September 2009, Mr. Wit invested $1,100,000 which amount was aggregated under the terms of one convertible note dated September 30, 2009. On September 30, 2009, Mr. Wit agreed to convert this convertible note into a private placement of secured convertible debentures bearing interest at a rate of 12% per annum with a maturity date of March 30, 2011. The convertible debentures were convertible into 4,400,000 shares of common stock and Mr. Wit received 4,400,000 warrants to purchase common stock of the Company at a price of $0.25. On March 30, 2011, the Company and Mr. Wit extended the maturity date of his convertible note until April 1, 2013 in accordance with the terms of Amendment Number One To Securities Purchase Agreement. The Company also extended the expiration date of the 4,400,000 warrants issued with convertible note by two years to September 30, 2015. On February 22, 2013, the Company and Mr. Wit extended the maturity date of his convertible debentures to January 1, 2016 in accordance with the terms of Amendment Number Two To Securities Purchase Agreement. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. | ||
● | From October 2009 to December 2009, Mr. Wit invested $1,440,000, which amount was aggregated under the terms of one convertible note dated December 31, 2009. On December 31, 2009, Mr. Wit agreed to convert this Convertible Note into a private placement of unsecured convertible debentures bearing interest at a rate of 12% per annum, which Convertible Debentures were due on June 30, 2011. The Company and Mr. Wit extended the maturity date of his convertible note until October 1, 2013 in accordance with the terms of Amendment Number One To Securities Purchase Agreement. The Company also extended the expiration date of the 5,760,000 warrants issued with convertible note by two years to December 31, 2015. On February 22, 2013, the Company and Mr. Wit extended the maturity date of his convertible debentures to January 1, 2016 in accordance with the terms of Amendment Number Two To Securities Purchase Agreement. The expiration date of the warrants associated with the debentures was also extended to January 1, 2016. | ||
● | On March 31, 2011, the Company issued a note payable in the principal amount of $2,866,879 and warrants to purchase 11,467,517 shares of common stock of the Company at an exercise price of $0.25 per share with an expiration date of March 31, 2016 to Mr. Wit. The note accrues interest at a rate of 12% per annum and had a maturity date of April 1, 2014. On April 1, 2013, the Company and Mr. Wit extended the maturity date of the promissory note to March 31, 2016. | ||
The Promissory Note consolidates the amounts owed as detailed below: | |||
i. | Promissory Note issued on April 13, 2010 for $450,000 with a maturity date of December 31, 2011; | ||
ii. | Promissory Note issued on June 29, 2010 for $115,000 with a maturity date of December 31, 2011; | ||
iii. | Promissory Note issued on September 30, 2010 for $695,000 with a maturity date of December 31, 2011; | ||
iv. | Promissory Note issued on December 31, 2010 for $1,197,500 with a maturity date of December 31, 2011; and | ||
v. | Promissory Note issued on December 31, 2010 for $409,379 with a maturity date of April 01, 2012. | ||
● | On December 31, 2011, the Company issued a promissory note in the principal amount of $1,600,000 and warrants to purchase 6,400,000 shares of common stock of the Company at an exercise price of $0.25 per share with an expiration date of December 31, 2015 to Mr. Wit. The note carried an interest rate of 12% per annum and had a maturity date of January 1, 2015. | ||
The promissory note consolidates the amounts owed as detailed below: | |||
i. | Promissory Note issued on May 13, 2011 for $96,000 with a maturity date of January 01, 2013; | ||
ii. | Promissory Note issued on September 30, 2011 for $342,000 with a maturity date of April 01, 2014; | ||
iii. | Promissory Note issued on October 05, 2011 for $130,000 with a maturity date of April 01, 2014; | ||
iv. | Promissory Note issued on October 28, 2011 for $123,000 with a maturity date of April 01, 2014; | ||
v. | Promissory Note issued on October 31, 2011 for $82,000 with a maturity date of April 01, 2014; | ||
vi. | Promissory Note issued on November 23, 2011 for $60,000 with a maturity date of January 1, 2013; and | ||
vii. | Accrued and unpaid interest in the amount of $767,000. | ||
On April 4, 2014 the Company issued a promissory note payable to Mr. Wit, in the amount of $1,600,000 in exchange for the existing promissory note in the same amount. The promissory note carries an interest rate of 12% and has a maturity date of April 1, 2017. | |||
● | On January 1, 2013, the Company issued a promissory note in the principal amount of $529,000 and warrants to purchase 2,116,000 shares of common stock of the Company at an exercise price of $0.25 per share with an expiration date of January 31, 2016 to Mr. Wit. The note carries an interest rate of 12% per annum and is due on January 1, 2016. | ||
● | On January 1, 2014, the Company issued a promissory note in the principal amount of $980,000 and warrants to purchase 3,920,000 shares of common stock of the Company at an exercise price of $0.25 per share with an expiration date of April 1, 2017 to Mr. Wit in exchange for accrued interest in the amount of $980,000. The note carries an interest rate of 12% per annum and is due on April 1, 2017. | ||
On March 18, 2013, the Company entered into a $2,000,000 revolving Line of Credit with The Northern Trust Company guaranteed by our Chief Executive Officer and Director, Cornelis F. Wit. Mr. Wit receives 2.0% interest (approximately $9,500 per month) from the Company on the assets pledged for the Line of Credit. On December 18, 2013 the Company renewed the Line of Credit and increased the available balance to $4,000,000. The Line of Credit matures on December 17, 2014 and carries a variable interest rate based on the prime rate. At September 30, 2014, $3,700,000 was outstanding on the Line of Credit at an interest rate of 2.25%. | |||
For the nine months ended September 30, 2014 and September 30, 2013 we incurred $1,818,911 and $1,750,327, respectively, in interest expense payable to related parties. |
Note_13_Stockholders_Deficit
Note 13 - Stockholders' (Deficit) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||||||||||||
NOTE 13: | STOCKHOLDERS’ (DEFICIT) | ||||||||||||||||||||||
Our authorized capital stock consists of 250,000,000 shares of common stock, $.001 par value per share, and 10,000,000 shares of preferred stock, par value $.001 per share, of which 5,000,000 shares have been designated as 5% Series A Preferred Stock, 230,000 shares have been designated as Series B Preferred Stock, 747,500 shares have been designated as Series C Preferred Stock and 250,000 shares have been designated as Series D Preferred Stock. | |||||||||||||||||||||||
As of September 30, 2014 we had the following outstanding securities: | |||||||||||||||||||||||
o | 91,504,659 shares of common stock issued and outstanding; | ||||||||||||||||||||||
o | 48,463,517 warrants issued and outstanding to purchase shares of our common stock; | ||||||||||||||||||||||
o | 4,125,224 shares of our Series A Preferred Stock issued and outstanding; | ||||||||||||||||||||||
o | -0- shares of our Series B Preferred Stock issued and outstanding; | ||||||||||||||||||||||
o | -0- shares of our Series C Preferred Stock issued and outstanding; | ||||||||||||||||||||||
o | 250,000 share of our Series D Preferred Stock issued and outstanding; and | ||||||||||||||||||||||
o | $9,665,000 principal amount Convertible Debentures convertible into 24,620,000 shares of common stock. | ||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Holders of common stock are entitled to one vote for each share on all matters submitted to a stockholder vote. Holders of our voting securities do not have cumulative voting rights. Holders of common stock are entitled to share in all dividends that the Board of Directors, in its discretion, declares from legally available funds. In the event of our liquidation, dissolution or winding up, subject to the preferences of the Series A Preferred Stockholders, each outstanding share of common stock entitles its holder to participate in all assets that remain after payment of liabilities and after providing for each class of stock, if any, having preference over the common stock. | |||||||||||||||||||||||
Holders of common stock have no conversion, preemptive or other subscription rights, and there are no redemption provisions for the common stock. The rights of the holders of common stock are subject to any rights that may be fixed for holders of preferred stock, when and if any preferred stock is outstanding. All outstanding shares of common stock are duly authorized, validly issued, fully paid and non-assessable. | |||||||||||||||||||||||
On July31, 2014, we issued 1,400,000 restricted shares of our common stock to our senior management team and our Board of Directors under the 2009 Equity Incentive Plan of OmniComm Systems, Inc. (the “2009 Plan”). The restrictions on the shares lapse ratably over a 3 year period. The 2009 Plan is more fully described in “Note 14, Employee Equity Incentive Plans”. | |||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||
Our Board of Directors, without further stockholder approval, may issue preferred stock in one or more series from time to time and fix or alter the designations, relative rights, priorities, preferences, qualifications, limitations and restrictions of the shares of each series. In addition, the Board of Directors may fix and determine all privileges and rights of the authorized preferred stock series including: | |||||||||||||||||||||||
o | dividend and liquidation preferences; | ||||||||||||||||||||||
o | voting rights; | ||||||||||||||||||||||
o | conversion privileges; and | ||||||||||||||||||||||
o | redemption terms. | ||||||||||||||||||||||
Our Board of Directors may authorize the issuance of preferred stock which ranks senior to our common stock for the payment of dividends and the distribution of assets on liquidation. In addition, our Board of Directors can fix limitations and restrictions, if any, upon the payment of dividends on our common stock to be effective while any shares of preferred stock are outstanding. | |||||||||||||||||||||||
The following table presents the cumulative arrearage of undeclared dividends by class of preferred stock as of September 30, 2014 and September 30, 2013, respectively, and the per share amount by class of preferred stock. | |||||||||||||||||||||||
Cumulative arrearage as of | Cumulative arrearage per share | ||||||||||||||||||||||
September 30, | as of September 30, | ||||||||||||||||||||||
Series of preferred stock | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Series A | $ | 2,534,711 | $ | 2,328,450 | $ | 0.61 | $ | 0.56 | |||||||||||||||
Series B | 609,887 | 609,887 | $ | 3.05 | $ | 3.05 | |||||||||||||||||
Series C | 1,472,093 | 1,472,093 | $ | 4.37 | $ | 4.37 | |||||||||||||||||
Total preferred stock arrearage | $ | 4,616,691 | $ | 4,410,430 | |||||||||||||||||||
The following table presents preferred dividends accreted for the nine month periods ended September 30, 2014 and September 30, 2013, respectively, and the per share effect of the preferred dividends if their effect was not anti-dilutive. | |||||||||||||||||||||||
Dividends accreted | Dividends per share | ||||||||||||||||||||||
nine months ended September 30, | nine months ended September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Preferred stock dividends in arrears Series A | $ | 154,272 | $ | 154,272 | $ | 0.037 | $ | 0.037 | |||||||||||||||
Preferred stock dividends in arrears Series B | $ | -0- | $ | -0- | $ | -0- | $ | -0- | |||||||||||||||
Preferred stock dividends in arrears Series C | $ | -0- | $ | -0- | $ | -0- | $ | -0- | |||||||||||||||
Warrants Issued for Services and in Capital Transactions | |||||||||||||||||||||||
The following tables summarize all outstanding warrants for the periods ended September 30, 2014 and December 31, 2013, and the related changes during these periods. | |||||||||||||||||||||||
September 30, 2014 warrants outstanding | September 30, 2014 warrants exercisable | ||||||||||||||||||||||
Range of | Number outstanding at | Weighted average | Weighted average | Number exercisable at | Weighted average | ||||||||||||||||||
exercise price | 30-Sep-14 | remaining contractual life | exercise price | 30-Sep-14 | exercise price | ||||||||||||||||||
$0.25 | – | $0.60 | 48,463,517 | 1.41 | $ | 0.35 | 48,463,517 | $ | 0.35 | ||||||||||||||
December 31, 2013 warrants outstanding | December 31, 2013 warrants exercisable | ||||||||||||||||||||||
Range of | Number outstanding at | Weighted average | Weighted average | Number exercisable at | Weighted average | ||||||||||||||||||
exercise price | 31-Dec-13 | remaining contractual life | exercise price | 31-Dec-13 | exercise price | ||||||||||||||||||
$0.25 | – | $0.60 | 44,728,873 | 2.05 | $ | 0.36 | 44,728,873 | $ | 0.36 | ||||||||||||||
Warrants | |||||||||||||||||||||||
Balance at December 31, 2013 | 44,728,873 | ||||||||||||||||||||||
Issued | 3,920,000 | ||||||||||||||||||||||
Exercised | -0- | ||||||||||||||||||||||
Expired/forfeited | (185,356 | ) | |||||||||||||||||||||
Balance at September 30, 2014 | 48,463,517 | ||||||||||||||||||||||
Warrants exercisable at September 30, 2014 | 48,463,517 | ||||||||||||||||||||||
Weighted average fair value of warrants granted during 2014 | $ | 0.15 | |||||||||||||||||||||
Other Comprehensive (Loss) | |||||||||||||||||||||||
Due to the availability of net operating losses and related deferred tax valuations, there is no tax effect associated with any component of other comprehensive (loss). The following table lists the beginning balance, quarterly activity and ending balance of the components of accumulated other comprehensive (loss). | |||||||||||||||||||||||
Foreign currency | Accumulated other | ||||||||||||||||||||||
translation | comprehensive (loss) | ||||||||||||||||||||||
Balance at December 31, 2012 | $ | (69,092 | ) | $ | (69,092 | ) | |||||||||||||||||
2013 Activity | (18,512 | ) | (18,512 | ) | |||||||||||||||||||
Balance at December 31, 2013 | (87,604 | ) | (87,604 | ) | |||||||||||||||||||
2014 Activity | (110,839 | ) | (110,839 | ) | |||||||||||||||||||
Balance at September 30, 2014 | $ | (198,443 | ) | $ | (198,443 | ) | |||||||||||||||||
Note_14_Employee_Equity_Incent
Note 14 - Employee Equity Incentive Plans | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||||||||||||||||||
NOTE 14: | EMPLOYEE EQUITY INCENTIVE PLANS | |||||||||||||||||||||||||||
Stock Option Plan | ||||||||||||||||||||||||||||
Description of 2009 Equity Incentive Plan | ||||||||||||||||||||||||||||
In 2009, the Company’s Board of Directors and shareholders approved the 2009 Equity Incentive Plan of OmniComm Systems, Inc. (the “2009 Plan”). The 2009 Plan provides for granting Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Phantom Stock Unit Awards and Performance Share Units. Pursuant to the 2009 Plan, 7,500,000 shares of the Company’s common stock are authorized for issuance. | ||||||||||||||||||||||||||||
The maximum term for any option grant under the 2009 Plan is ten years from the date of the grant; however, options granted under the 2009 Plan will generally expire five years from the date of grant for most employees, officers and directors of the Company. Options granted to employees generally vest either upon grant or in two installments. The first vesting, which is equal to 50% of the granted stock options, occurs upon completion of one full year of employment from the date of grant and the second vesting occurs on the second anniversary of the date of grant. The vesting period typically begins on the date of hire for new employees and on the date of grant for existing employees. The restrictions on restricted shares granted to employees generally lapse in three equal annual installments on the anniversary of the date of grant. Any unvested stock options or restricted shares with restrictions that have not lapsed that are granted under the 2009 Plan are forfeited and expire upon termination of employment. | ||||||||||||||||||||||||||||
As of September 30, 2014, there were 3,902,500 outstanding options and 2,625,000 restricted stock shares that have been granted under the 2009 Plan. At September 30, 2014, there were 972,500 shares available for grant as options or other forms of share-based compensation under the 2009 Plan. | ||||||||||||||||||||||||||||
Description of 1998 Stock Incentive Plan | ||||||||||||||||||||||||||||
In 1998, the Company’s Board of Directors and shareholders approved the 1998 Stock Incentive Plan of OmniComm Systems, Inc. (the “1998 Plan”). The 1998 Plan provides for granting Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Phantom Stock Unit Awards and Performance Share Units. Pursuant to the 1998 Plan, 12,500,000 shares of the Company’s common stock were authorized for issuance. The 1998 Plan expired as of December 31, 2008. As of September 30, 2014, there were 779,000 outstanding options that have been granted under the 1998 Plan. | ||||||||||||||||||||||||||||
The following table summarizes the stock option activity for the Company’s equity incentive plans: | ||||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Weighted | average | |||||||||||||||||||||||||||
average | remaining | |||||||||||||||||||||||||||
Number of | exercise price | contractual term | Aggregate | |||||||||||||||||||||||||
shares | (per share) | (in years) | intrinsic value | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 10,452,500 | $ | 0.36 | 1.68 | $ | 149,598 | ||||||||||||||||||||||
Granted | 350,000 | 0.17 | ||||||||||||||||||||||||||
Exercised | (100,000 | ) | 0.18 | |||||||||||||||||||||||||
Forfeited/cancelled/expired | (4,957,500 | ) | 0.42 | |||||||||||||||||||||||||
Outstanding at December 31, 2013 | 5,745,000 | 0.29 | 1.7 | $ | 93,945 | |||||||||||||||||||||||
Granted | 150,000 | 0.16 | ||||||||||||||||||||||||||
Exercised | -0- | -0- | ||||||||||||||||||||||||||
Forfeited/cancelled/expired | (1,213,500 | ) | 0.54 | |||||||||||||||||||||||||
Outstanding at September 30, 2014 | 4,681,500 | $ | 0.23 | 1.35 | $ | 115,650 | ||||||||||||||||||||||
Vested and exercisable at September 30, 2014 | 4,281,500 | $ | 0.23 | 1.1 | $ | 108,475 | ||||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company’s closing stock price at quarter-end and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2014. | ||||||||||||||||||||||||||||
The total number of shares vesting and the fair value of shares vesting for the nine month periods ended September 30, 2014 and September 30, 2013, respectively, was: | ||||||||||||||||||||||||||||
Number of options | Fair value of | |||||||||||||||||||||||||||
vested | options vested | |||||||||||||||||||||||||||
Fair value of options vesting during the nine months ended September 30, 2014 | 570,834 | $ | 66,389 | |||||||||||||||||||||||||
Fair value of options vesting during the nine months ended September 30, 2013 | 593,833 | $ | 62,204 | |||||||||||||||||||||||||
Cash received from stock option exercises for the nine month periods ended September 30, 2014 and September 30, 2013 was $-0- and $-0-, respectively. Due to the Company’s net loss position, no income tax benefit has been realized during the nine month periods ended September 30, 2014 and September 30, 2013. | ||||||||||||||||||||||||||||
The following table summarizes information concerning options outstanding at September 30, 2014: | ||||||||||||||||||||||||||||
Awards breakdown by price range at September 30, 2014 | ||||||||||||||||||||||||||||
Outstanding | Vested | |||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Weighted | Weighted | average | ||||||||||||||||||||||||||
average | average | remaining | Weighted | |||||||||||||||||||||||||
Strike price | Outstanding | remaining | outstanding | Vested stock | vested | average vested | ||||||||||||||||||||||
range ($) | stock options | contractual life | strike price | options | contractual life | strike price | ||||||||||||||||||||||
0 | to | 0.2 | 3,302,500 | 1.55 | $ | 0.15 | 2,952,500 | 1.25 | $ | 0.15 | ||||||||||||||||||
0.21 | to | 0.29 | 600,000 | 1.18 | 0.24 | 550,000 | 0.95 | 0.25 | ||||||||||||||||||||
0.3 | to | 0.49 | 80,000 | 0.23 | 0.38 | 80,000 | 0.23 | 0.38 | ||||||||||||||||||||
0.5 | to | 0.7 | 699,000 | 0.68 | 0.55 | 699,000 | 0.68 | 0.55 | ||||||||||||||||||||
0 | to | 0.7 | 4,681,500 | 1.35 | $ | 0.23 | 4,281,500 | 1.1 | $ | 0.23 | ||||||||||||||||||
The following table summarizes information concerning options outstanding at December 31, 2013: | ||||||||||||||||||||||||||||
Awards breakdown by price range at December 31, 2013 | ||||||||||||||||||||||||||||
Outstanding | Vested | |||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Weighted | Weighted | average | ||||||||||||||||||||||||||
average | average | remaining | Weighted | |||||||||||||||||||||||||
Strike price | Outstanding | remaining | outstanding | Vested stock | vested | average vested | ||||||||||||||||||||||
range ($) | stock options | contractual life | strike price | options | contractual life | strike price | ||||||||||||||||||||||
0 | to | 0.2 | 3,251,000 | 2.16 | $ | 0.15 | 2,530,166 | 1.86 | $ | 0.16 | ||||||||||||||||||
0.21 | to | 0.29 | 750,000 | 1.64 | 0.25 | 650,000 | 1.2 | 0.25 | ||||||||||||||||||||
0.3 | to | 0.49 | 110,000 | 0.98 | 0.38 | 110,000 | 0.98 | 0.38 | ||||||||||||||||||||
0.5 | to | 0.7 | 1,634,000 | 0.87 | 0.59 | 1,634,000 | 0.87 | 0.59 | ||||||||||||||||||||
0 | to | 0.7 | 5,745,000 | 1.7 | $ | 0.29 | 4,924,166 | 1.42 | $ | 0.32 | ||||||||||||||||||
The weighted average fair value (per share) of options granted during the nine month period ended September 30, 2014 was $0.16 and $0.17 during the nine month period ended September 30, 2013. The Black Scholes option-pricing model was utilized to calculate these values. | ||||||||||||||||||||||||||||
Basis for Fair Value Estimate of Share-Based Payments | ||||||||||||||||||||||||||||
Based on analysis of its historical volatility, the Company expects that the future volatility of its share price is likely to be similar to the historical volatility the Company experienced since the Company’s commercialization activities were initiated during the second half of 2000. The Company used a volatility calculation utilizing the Company’s own historical volatility to estimate its future volatility for purposes of valuing the share-based payments that have been granted. Actual volatility, and future changes in estimated volatility, may differ substantially from the Company’s current estimates. | ||||||||||||||||||||||||||||
The Company utilizes the historical data available regarding employee and director exercise activity to calculate an expected life of the options. The table below presents the weighted average expected life in years of options granted under the Plan as described above. The risk-free rate of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant, which corresponds with the expected term of the option granted. | ||||||||||||||||||||||||||||
Below are the assumptions for the fair value of share-based payments for the nine month periods ended September 30, 2014 and September 30, 2013. | ||||||||||||||||||||||||||||
Stock option assumptions for the nine months ended | ||||||||||||||||||||||||||||
Stock option assumptions | 30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||||
Risk-free interest rate | 0.93% | 0.70% | ||||||||||||||||||||||||||
Expected dividend yield | 0.00% | 0.00% | ||||||||||||||||||||||||||
Expected volatility | 199.00% | 203.40% | ||||||||||||||||||||||||||
Expected life of options (in years) | 5 | 5 | ||||||||||||||||||||||||||
The following table summarizes weighted average grant date fair value activity for the Company’s incentive stock plans: | ||||||||||||||||||||||||||||
Weighted average grant date fair value | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Stock options granted during the nine month period ended September 30, | $ | 0.16 | $ | 0.17 | ||||||||||||||||||||||||
Stock options vested during the nine month period ended September 30, | $ | 0.12 | $ | 0.1 | ||||||||||||||||||||||||
Stock options forfeited during the nine month period ended September 30, | $ | 0.43 | $ | 0.28 | ||||||||||||||||||||||||
A summary of the status of the Company’s non-vested shares underlying stock options as of September 30, 2014, and changes during the nine month period ended September 30, 2014 is as follows: | ||||||||||||||||||||||||||||
Shares underlying stock | Weighted average grant | |||||||||||||||||||||||||||
options | date fair value | |||||||||||||||||||||||||||
Nonvested shares at January 1, 2014 | 820,834 | $ | 0.13 | |||||||||||||||||||||||||
Nonvested shares at September 30, 2014 | 400,000 | $ | 0.16 | |||||||||||||||||||||||||
As of September 30, 2014, approximately $39,697 of total unrecognized compensation cost related to unvested stock options is expected to be recognized over a weighted-average period of 1.2 years. |
Note_15_Income_Taxes
Note 15 - Income Taxes | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
NOTE 15: | INCOME TAXES | ||||||||
A reconciliation of income tax expense and the amount computed by applying the statutory federal income tax rate to the income before provision for income taxes is as follows: | |||||||||
30-Sep-14 | 30-Sep-13 | ||||||||
Federal statutory rate applied to income/(loss) before income taxes | $ | 165,693 | $ | (1,662,692 | ) | ||||
Increase/(decrease) in income taxes results from: | |||||||||
Current tax expense | 35,407 | 48,599 | |||||||
Non deductible expenses | (1,482,741 | ) | 1,144,767 | ||||||
Change in deferred assets | 49,571 | 37,086 | |||||||
Change in valuation allowance | 1,267,477 | 480,839 | |||||||
Income tax expense | $ | 35,407 | $ | 48,599 | |||||
The components of income tax expense/(benefit) for the nine month periods ended: | |||||||||
30-Sep-14 | 30-Sep-13 | ||||||||
Current tax expense | $ | 35,407 | $ | 48,599 | |||||
Deferred tax expense/(benefit): | |||||||||
Bad debt allowance | (28,837 | ) | 13,106 | ||||||
Operating loss carryforward | (1,288,211 | ) | (531,031 | ) | |||||
Amortization of intangibles | 4,111 | -0- | |||||||
Patent litigation settlement | 45,460 | 37,086 | |||||||
(1,267,477 | ) | (480,839 | ) | ||||||
Valuation allowance | 1,267,477 | 480,839 | |||||||
Total tax expense | $ | 35,407 | $ | 48,599 | |||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: | |||||||||
30-Sep-14 | 30-Sep-13 | ||||||||
Amortization of intangibles | $ | 279,587 | $ | 283,698 | |||||
Bad debt allowance | 52,452 | 17,608 | |||||||
Patent litigation liability accrual | 269,948 | 349,596 | |||||||
Operating loss carryforwards | 19,508,693 | 17,887,001 | |||||||
Gross deferred tax assets | 20,110,680 | 18,537,903 | |||||||
Valuation allowance | (20,110,680 | ) | (18,537,903 | ) | |||||
Net deferred tax liability/(asset) | $ | -0- | $ | -0- | |||||
The Company has net operating loss carry forwards (NOL) for income tax purposes of approximately $54,089,558. This loss is allowed to be offset against future income until the year 2034 when the NOLs will expire. Other timing differences relate to depreciation and amortization for the stock acquisition of Education Navigator in 1998. The tax benefits relating to all timing differences have been fully reserved for in the valuation allowance account due to the substantial losses incurred through September 30, 2014. The change in the valuation allowance for the nine month period ended September 30, 2014 was an increase of $1,267,477. |
Note_16_Subsequent_Events
Note 16 - Subsequent Events | 9 Months Ended | |
Sep. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
NOTE 16: | SUBSEQUENT EVENTS | |
On October 7, 2014 the Company paid down $200,000 in principal on the Line of Credit. As of October 7, 2014 the outstanding balance on the Line of Credit was $3,500,000. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ||||||||||||||||
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | |||||||||||||||||
The Company’s accounts include those of all its wholly-owned subsidiaries, which are more fully described in the Company’s 2013 Annual Report filed on Form 10-K, as amended, with the Securities and Exchange Commission, and have been prepared in conformity with (i) accounting principles generally accepted in the United States of America; and (ii) the rules and regulations of the United States Securities and Exchange Commission. All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated in consolidation. | |||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||||||
ESTIMATES IN FINANCIAL STATEMENTS | |||||||||||||||||
The preparation of the unaudited condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Significant estimates incorporated in our financial statements include the recorded allowance for doubtful accounts, the estimate of the appropriate amortization period of our intangible assets, the evaluation of whether our intangible assets have suffered any impairment, the allocation of revenues under multiple-element customer contracts, royalty-based patent liabilities, the value of derivatives associated with debt issued by the Company and the valuation of any corresponding discount to the issuance of our debt. Actual results may differ from those estimates. | |||||||||||||||||
Reclassification, Policy [Policy Text Block] | ' | ||||||||||||||||
Reclassifications | |||||||||||||||||
Certain reclassifications have been made in the 2013 financial statements to conform to the 2014 presentation. These reclassifications did not have any effect on our net income/(loss) or shareholders’ deficit. | |||||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||||||||||||||||
foreign currency translation | |||||||||||||||||
The financial statements of the Company’s foreign subsidiaries are translated in accordance with Accounting Standards Codification (“ASC”) 830-30, Foreign Currency Matters—Translation of Financial Statements. The reporting currency for the Company is the U.S. dollar. The functional currency of the Company’s subsidiaries, OmniComm Europe GmbH in Germany, OmniComm Spain S.L. in Spain and OmniComm Promasys B.V. in the Netherlands is the Euro. The functional currency of the Company’s subsidiary OmniComm Ltd., in the United Kingdom, is the British Pound Sterling. Accordingly, the assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars using the exchange rate in effect at each balance sheet date. Revenue and expense accounts of the Company’s foreign subsidiaries are translated using an average rate of exchange during the period. Foreign currency translation adjustments are accumulated as a component of other comprehensive income/(loss) as a separate component of stockholders’ equity. Gains and losses arising from transactions denominated in foreign currencies are primarily related to intercompany accounts that have been determined to be temporary in nature and accordingly, are recorded directly to the statement of operations. We record translation gains and losses in accumulated other comprehensive income as a component of stockholders’ equity. We recorded translation losses of $110,839 and $30,485 for the nine month periods ended September 30, 2014 and September 30, 2013 respectively. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||||||
REVENUE RECOGNITION POLICY | |||||||||||||||||
The Company derives revenues from software licenses and services of its EDC products and services which can be purchased on a stand-alone basis. License revenues are derived principally from the sale of term licenses for the following software products offered by the Company: TrialMaster, TrialOne, eClinical Suite and Promasys (the “EDC Software”). Service revenues are derived principally from the Company's delivery of the hosted solutions of its TrialMaster and eClinical Suite software products, and consulting services and customer support, including training, for all of the Company's products. | |||||||||||||||||
The Company recognizes revenues when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the product or service has been provided to the customer; (3) the collection of fees is probable; and (4) the amount of fees to be paid by the customer is fixed or determinable. | |||||||||||||||||
The Company operates in one reportable segment which is the delivery of EDC Software and services to clinical trial sponsors. The Company segregates its revenues based on the activity cycle used to generate its revenues. Accordingly, revenues are currently generated through four main activities, including hosted applications, licensing, professional services and maintenance-related services. | |||||||||||||||||
Hosted Application Revenues | |||||||||||||||||
The Company offers its TrialMaster and eClinical Suite software products as hosted application solutions delivered through a standard web-browser, with customer support and training services. The Company's TrialOne and Promasys solutions are presently available on a licensed basis. To date, hosted applications revenues have been primarily related to TrialMaster and eClinical Suite. | |||||||||||||||||
Revenues resulting from TrialMaster and eClinical Suite application hosting services consist of three components of services for each clinical trial. The first component is comprised of application set up, including design of electronic case report forms and edit checks, installation and server configuration of the system. The second component involves application hosting and related support services as well as billable change orders which consist of amounts billed to customers for functionality changes made. The third component involves services required to close out, or lock, the database for the clinical trial. | |||||||||||||||||
Fees charged and costs incurred for the trial system design, set up and implementation are amortized and recognized ratably over the estimated hosting period. Work performed outside the original scope of work is contracted for separately as an additional fee and is generally recognized ratably over the remaining term of the hosting period. Fees for the first and third stages of the service are typically billed based upon milestones. Revenues earned upon completion of a contractual milestone are deferred and recognized over the estimated remaining hosting period. Fees for application hosting and related services in the second stage are generally billed monthly or quarterly in advance. Revenues resulting from hosting services for the eClinical Suite products consist of installation and server configuration, application hosting and related support services. Services for this offering are generally charged as a fixed fee payable on a quarterly or annual basis. Revenues are recognized ratably over the period of the service. | |||||||||||||||||
Licensing Revenues | |||||||||||||||||
The Company's software license revenues are earned from the sale of off-the-shelf software. From time-to-time a client might require significant modification or customization subsequent to delivery to the customer. The Company generally enters into software term licenses for its EDC Software products with its customers for three to five year periods, although customers have entered into both longer and shorter term license agreements. These arrangements typically include multiple elements: software license, consulting services and customer support. The Company bills its customers in accordance with the terms of the underlying contract. Generally, the Company bills license fees in advance for each billing cycle of the license term, which typically is either on a quarterly or annual basis. Payment terms are generally net 30 days. | |||||||||||||||||
In the past the Company has sold perpetual licenses for EDC Software products in certain situations to existing customers with the option to purchase customer support, and may, in the future, do so for new customers based on customer requirements or market conditions. The Company has established vendor specific objective evidence of fair value for the customer support. Accordingly, license revenues are recognized upon delivery of the software and when all other revenue recognition criteria are met. Customer support revenues are recognized ratably over the term of the underlying support arrangement. The Company generates customer support and maintenance revenues from its perpetual license customer base. | |||||||||||||||||
Professional Services | |||||||||||||||||
The Company may also enter into arrangements to provide consulting services separate from a license arrangement. In these situations, revenue is recognized on a time-and-materials basis. Professional services can be deemed to be as essential to the functionality of the software at inception and typically are for initial trial configuration, implementation planning, loading of software, building simple interfaces, running test data and documentation of procedures. Subsequent additions or extensions to license terms do not generally include additional professional services. | |||||||||||||||||
Pass-through Revenue and Expense | |||||||||||||||||
The Company accounts for pass-through revenue and expense in accordance with ASC 605-45, Principal Agent Considerations (“ASC 605-45”). In accordance with ASC 605-45 these amounts are recorded as revenue in the statement of operations with a corresponding expense recorded in cost of goods sold. Pass-through revenues and expenses include amounts associated with third-party services provided to our customers by our service and product partners. These third-party services are primarily comprised of Interactive Voice and Web Response software services (IVR and IWR), travel and shipping that are incurred on our clients’ behalf. | |||||||||||||||||
Maintenance Revenues | |||||||||||||||||
Maintenance includes telephone-based help desk support and software maintenance. The Company generally bundles customer support with the software license for the entire term of the arrangement. As a result, the Company generally recognizes revenues for both maintenance and software licenses ratably over the term of the software license and support arrangement. The Company allocates the revenues recognized for these arrangements to the different elements based on management's estimate of the relative fair value of each element. The Company generally invoices each of the elements based on separately quoted amounts and thus has a fairly accurate estimate of the relative fair values of each of the invoiced revenue elements. | |||||||||||||||||
Cost of Sales, Policy [Policy Text Block] | ' | ||||||||||||||||
COST OF REVENUES | |||||||||||||||||
Cost of revenues primarily consists of costs related to hosting, maintaining and supporting the Company’s application suite and delivering professional services and support. These costs include salaries, benefits, and bonuses for the Company’s professional services staff. Cost of revenues also includes outside service provider costs. Cost of revenues is expensed as incurred. | |||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||||
Cash equivalents consist of highly liquid, short-term investments with maturities of 90 days or less. The carrying amount reported in the accompanying consolidated balance sheets approximates fair value. | |||||||||||||||||
Receivables, Policy [Policy Text Block] | ' | ||||||||||||||||
ACCOUNTS RECEIVABLE | |||||||||||||||||
Accounts receivable are judged as to collectability by management and an allowance for bad debts is established as necessary. The allowance is based on an evaluation of the collectability of accounts receivable and prior bad debt experience. The Company had recorded an allowance for uncollectible accounts receivable of $142,051 as of September 30, 2014 and $65,341 as of December 31, 2013, respectively. | |||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Cash and cash equivalents and restricted cash are deposited with major financial institutions and, at times, such balances with any one financial institution may be in excess of FDIC-insured limits. As of September 30, 2014, $767,672 was deposited in excess of FDIC-insured limits. Management believes the risk in these situations to be minimal. | |||||||||||||||||
Except as follows, the Company has no significant off-balance-sheet risk or credit risk concentrations. Financial instruments that subject the Company to potential credit risks are principally cash equivalents and accounts receivable. Concentrated credit risk with respect to accounts receivable is limited to creditworthy customers. The Company's customers are principally located in the United States and Europe. The Company is directly affected by the overall financial condition of the pharmaceutical, biotechnology and medical device industries and management believes that credit risk exists and that any credit risk the Company faces has been adequately reserved for as of September 30, 2014. The Company maintains an allowance for doubtful accounts based on accounts past due according to contractual terms and historical collection experience. Actual losses, when incurred, are charged to the allowance. The Company's losses related to collection of accounts receivable have consistently been within management's expectations. As of September 30, 2014, the Company believes no additional credit risk exists beyond the amounts provided for in our allowance for uncollectible accounts. The Company evaluates its allowance for uncollectable accounts on a monthly basis based on a specific review of receivable aging and the period that any receivables are beyond the standard payment terms. The Company does not require collateral from its customers in order to mitigate credit risk. | |||||||||||||||||
One customer accounted for 13% of our revenues during the nine month period ended September 30, 2014 or approximately $1,585,000. One customer accounted for 11% of our revenues during the nine month period ended September 30, 2013 or approximately $1,221,000. The following table summarizes the number of customers who individually comprise greater than 10% of total revenue and/or total accounts receivable and their aggregate percentage of the Company's total revenue and gross accounts receivable for the periods presented. | |||||||||||||||||
Revenues | Accounts receivable | ||||||||||||||||
Percentage of | |||||||||||||||||
Number of | Percentage of | Number of | accounts | ||||||||||||||
For the period ended | customers | total revenues | customers | receivable | |||||||||||||
30-Sep-14 | 1 | 13% | 0 | 0% | |||||||||||||
31-Dec-13 | 1 | 11% | 2 | 23% | |||||||||||||
30-Sep-13 | 1 | 11% | 2 | 29% | |||||||||||||
The table below provides revenues from European customers for the nine month periods ended September 30, 2014 and September 30, 2013, respectively. | |||||||||||||||||
European revenues | |||||||||||||||||
For the nine months ended | |||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||
European revenues | % of Total revenues | European revenues | % of Total revenues | ||||||||||||||
$ | 1,750,331 | 14.70% | $ | 1,214,121 | 11.10% | ||||||||||||
The Company serves all of its hosting customers from third-party web hosting facilities located in the United States. The Company does not control the operation of these facilities, and they are vulnerable to damage or interruption. The Company maintains redundant systems that can be used to provide service in the event the third-party web hosting facilities become unavailable, although in such circumstances, the Company's service may be interrupted during the transition. | |||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||||||||
PROPERTY AND EQUIPMENT | |||||||||||||||||
Property and equipment are recorded at cost. Additions and betterments are capitalized; maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the asset’s estimated useful life, which is 5 years for leasehold improvements, computers, equipment and furniture and 3 years for software. Gains or losses on disposal are charged to operations. | |||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | ' | ||||||||||||||||
ASSET IMPAIRMENT | |||||||||||||||||
Acquisitions and Intangible Assets | |||||||||||||||||
We account for acquisitions in accordance with ASC 805, Business Combinations (“ASC 805”) and ASC 350, Intangibles- Goodwill and Other (“ASC 350”). The acquisition method of accounting requires that assets acquired and liabilities assumed be recorded at their fair values on the date of a business acquisition. Our consolidated financial statements and results of operations reflect an acquired business from the completion date of an acquisition. | |||||||||||||||||
The judgments that we make in determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact net income in periods following an asset acquisition. We generally use either the income, cost or market approach to aid in our conclusions of such fair values and asset lives. The income approach presumes that the value of an asset can be estimated by the net economic benefit to be received over the life of the asset, discounted to present value. The cost approach presumes that an investor would pay no more for an asset than its replacement or reproduction cost. The market approach estimates value based on what other participants in the market have paid for reasonably similar assets. Although each valuation approach is considered in valuing the assets acquired, the approach ultimately selected is based on the characteristics of the asset and the availability of information. | |||||||||||||||||
Long-lived Assets | |||||||||||||||||
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. We use quoted market prices when available and independent appraisals and management estimates of future operating cash flows, as appropriate, to determine fair value. | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||||||
FAIR VALUE MEASUREMENT | |||||||||||||||||
OmniComm’s capital structure includes the use of warrants and convertible debt features that are classified as derivative financial instruments. Derivative financial instruments are recognized as either assets or liabilities and are measured at fair value under ASC 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires that changes in the fair value of derivative financial instruments with no hedging designation be recognized as gains/(losses) in the earnings statement. The fair value measurement is determined in accordance with ASC 820, Fair Value Measurements and Disclosures. | |||||||||||||||||
Revenue Recognition, Deferred Revenue [Policy Text Block] | ' | ||||||||||||||||
DEFERRED REVENUE | |||||||||||||||||
Deferred revenue represents cash advances and amounts in accounts receivable as of the balance sheet date received in excess of revenue earned on on-going contracts. Payment terms vary with each contract but may include an initial payment at the time the contract is executed, with future payments dependent upon the completion of certain contract phases or targeted milestones. In the event of contract cancellation, the Company is generally entitled to payment for all work performed through the point of cancellation. As of September 30, 2014, the Company had $8,232,798 in deferred revenues relating to contracts for services to be performed over periods ranging from one month to 6.5 years. The Company had $5,702,672 in deferred revenues that are expected to be recognized in the next twelve fiscal months. | |||||||||||||||||
Advertising Costs, Policy [Policy Text Block] | ' | ||||||||||||||||
ADVERTISING | |||||||||||||||||
Advertising costs are expensed as incurred. Advertising costs were $338,486 and $175,095 for the nine month periods ended September 30, 2014 and September 30, 2013, respectively and are included under selling, general and administrative expenses in our unaudited condensed consolidated financial statements. | |||||||||||||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | ' | ||||||||||||||||
RESEARCH AND DEVELOPMENT EXPENSES | |||||||||||||||||
Software development costs are included in R&D and are expensed as incurred. ASC 985-20, Software Industry Costs of Software to Be Sold, Leased or Marketed (“ASC 985-20”), requires the capitalization of certain development costs of software to be sold once technological feasibility is established, which the Company defines as completion to the point of marketability. The capitalized cost is then amortized on a straight-line basis over the estimated product life. To date, the period between achieving technological feasibility and the general availability of such software has been short and software development costs qualifying for capitalization have been immaterial. Accordingly, the Company has not capitalized any software development costs under ASC 985-20. During the nine month periods ended September 30, 2014 and September 30, 2013 we spent approximately $2,092,125 and $1,718,079 respectively, on R&D activities, which include costs associated with the development of our software products and services for our clients’ projects and which are primarily comprised of salaries and related expenses for our software developers and consulting fees paid to third-party consultants. R&D costs are primarily included under Salaries, benefits and related taxes in our Statement of Operations. | |||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||||||||
EMPLOYEE EQUITY INCENTIVE PLANS | |||||||||||||||||
The OmniComm Systems, Inc. 2009 Equity Incentive Plan (the “2009 Plan”) was approved at our Annual Meeting of Shareholders on July 10, 2009. The 2009 Plan provides for the issuance of up to 7,500,000 shares to employees, directors and key consultants. The predecessor plan, the OmniComm Systems, Inc., 1998 Stock Incentive Plan (the “1998 Plan”) expired on December 31, 2008. The 1998 Plan provided for the issuance of up to 12,500,000 shares in accordance with the terms of the 1998 Plan document. Each plan is more fully described in “Note 14, Employee Equity Incentive Plans”. The Company accounts for its employee equity incentive plans under ASC 718, Compensation – Stock Compensation ("ASC 718") which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. | |||||||||||||||||
ASC 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations. The Company currently uses the Black Scholes option pricing model to determine grant date fair value. | |||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||||||
EARNINGS PER SHARE | |||||||||||||||||
The Company accounts for Earnings per Share using ASC 260, Earnings per Share. Unlike diluted earnings per share, basic earnings per share excludes any dilutive effects of options, warrants, and convertible securities. | |||||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||||||
INCOME TAXES | |||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). ASC 740 has as its basic objective the recognition of current and deferred income tax assets and liabilities based upon all events that have been recognized in the financial statements as measured by the provisions of the enacted tax laws. | |||||||||||||||||
Valuation allowances are established when necessary to reduce deferred tax assets to the estimated amount to be realized. Income tax expense represents the tax payable for the current period and the change during the period in the deferred tax assets and liabilities. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||
IMPACT OF NEW ACCOUNTING STANDARDS | |||||||||||||||||
During the first nine months of 2014, we adopted the following new accounting pronouncements: | |||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”, (“ASU No. 2013-11”). This ASU amends ASC 740, Income Taxes, to require that an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward; to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward does not exist at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. ASU No. 2013-11 is effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted. Our adoption of this standard on January 1, 2014 did not have a material impact on our consolidated financial statements. | |||||||||||||||||
In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, (“ASU 2014-09”). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt this ASU on January 1, 2017. Management is currently evaluating which transition approach to use and the impact of the adoption of this ASU on the Company's consolidated financial statements. | |||||||||||||||||
In August 2014, FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, (“ASU 2014-15”), which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. We believe the adoption of this guidance will not have a material effect on our consolidated financial statements. | |||||||||||||||||
Accounting standards-setting organizations frequently issue new or revised accounting rules. We regularly review all new pronouncements to determine their impact, if any, on our financial statements. |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Table Text Block] | ' | ||||||||||||||||
For the nine months ended | |||||||||||||||||
Revenue activity | 30-Sep-14 | 30-Sep-13 | |||||||||||||||
Set-up fees | $ | 3,363,576 | $ | 2,584,285 | |||||||||||||
Change orders | 337,903 | 344,400 | |||||||||||||||
Maintenance | 3,187,173 | 3,495,908 | |||||||||||||||
Software licenses | 2,730,770 | 2,333,016 | |||||||||||||||
Professional services | 1,700,498 | 1,625,600 | |||||||||||||||
Hosting | 595,793 | 572,935 | |||||||||||||||
Total | $ | 11,915,713 | $ | 10,956,144 | |||||||||||||
For the three months ended | |||||||||||||||||
Revenue activity | 30-Sep-14 | 30-Sep-13 | |||||||||||||||
Set-up fees | $ | 1,419,722 | $ | 988,990 | |||||||||||||
Change orders | 140,949 | 119,870 | |||||||||||||||
Maintenance | 1,175,527 | 1,186,023 | |||||||||||||||
Software licenses | 1,444,623 | 430,323 | |||||||||||||||
Professional services | 747,693 | 552,719 | |||||||||||||||
Hosting | 196,175 | 199,696 | |||||||||||||||
Total | $ | 5,124,689 | $ | 3,477,621 | |||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Beginning of period | $ | 65,341 | $ | 84,210 | |||||||||||||
Bad debt expense | 76,634 | 11,131 | |||||||||||||||
Write-offs | -0- | (30,000 | ) | ||||||||||||||
Exchange rate impact | 76 | -0- | |||||||||||||||
End of period | $ | 142,051 | $ | 65,341 | |||||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||||||||||
Revenues | Accounts receivable | ||||||||||||||||
Percentage of | |||||||||||||||||
Number of | Percentage of | Number of | accounts | ||||||||||||||
For the period ended | customers | total revenues | customers | receivable | |||||||||||||
30-Sep-14 | 1 | 13% | 0 | 0% | |||||||||||||
31-Dec-13 | 1 | 11% | 2 | 23% | |||||||||||||
30-Sep-13 | 1 | 11% | 2 | 29% | |||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | ||||||||||||||||
European revenues | |||||||||||||||||
For the nine months ended | |||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||
European revenues | % of Total revenues | European revenues | % of Total revenues | ||||||||||||||
$ | 1,750,331 | 14.70% | $ | 1,214,121 | 11.10% |
Note_4_Earnings_Loss_Per_Share1
Note 4 - Earnings (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||||||||||||||
Anti-Dilutive Security | 30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||
Preferred stock | 2,750,149 | 2,750,149 | |||||||||||||||||||||||
Employee stock options | 4,681,500 | 6,175,000 | |||||||||||||||||||||||
Warrants | 48,463,517 | 44,728,873 | |||||||||||||||||||||||
Convertible notes | 24,620,000 | 24,620,000 | |||||||||||||||||||||||
Shares issuable for accrued interest | 967,269 | 1,228,598 | |||||||||||||||||||||||
Total | 81,482,435 | 79,502,620 | |||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Income/(loss) | Shares | Per-share | Income/(loss) | Shares | Per-share | ||||||||||||||||||||
numerator | denominator | amount | numerator | denominator | amount | ||||||||||||||||||||
Basic EPS | $ | 250,642 | 90,417,480 | $ | 0 | $ | (4,621,397 | ) | 87,515,641 | $ | (0.05 | ) | |||||||||||||
Effect of dilutive securities - none | -0- | -0- | -0- | -0- | -0- | -0- | |||||||||||||||||||
Diluted EPS | $ | 250,642 | 90,417,480 | $ | 0 | $ | (4,621,397 | ) | 87,515,641 | $ | (0.05 | ) | |||||||||||||
For the three months ended | |||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
Income/(loss) | Shares | Per-share | Income/(loss) | Shares | Per-share | ||||||||||||||||||||
numerator | denominator | amount | numerator | denominator | amount | ||||||||||||||||||||
Basic EPS | $ | 1,229,741 | 91,032,920 | $ | 0.01 | $ | 1,680,481 | 87,867,268 | $ | 0.02 | |||||||||||||||
Effect of dilutive securities - none | -0- | -0- | -0- | -0- | -0- | -0- | |||||||||||||||||||
Diluted EPS | $ | 1,229,741 | 91,032,920 | $ | 0.01 | $ | 1,680,481 | 87,867,268 | $ | 0.02 |
Note_5_Property_and_Equipment_1
Note 5 - Property and Equipment, Net (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||||||
Accumulated | Net book | Accumulated | Net book | useful life | |||||||||||||||||||||||||
Cost | depreciation | value | Cost | depreciation | value | (years) | |||||||||||||||||||||||
Computer & office equipment | $ | 1,852,102 | $ | 1,447,075 | $ | 405,027 | $ | 1,822,098 | $ | 1,326,256 | $ | 495,842 | 5 | ||||||||||||||||
Leasehold improvements | 93,137 | 81,170 | 11,967 | 93,812 | 75,735 | 18,077 | 5 | ||||||||||||||||||||||
Computer software | 1,585,252 | 1,520,180 | 65,072 | 1,556,497 | 1,477,801 | 78,696 | 3 | ||||||||||||||||||||||
Office furniture | 113,980 | 104,210 | 9,770 | 114,373 | 99,555 | 14,818 | 5 | ||||||||||||||||||||||
Total | $ | 3,644,471 | $ | 3,152,635 | $ | 491,836 | $ | 3,586,780 | $ | 2,979,347 | $ | 607,433 |
Note_6_Intangible_Assets_At_Co1
Note 6 - Intangible Assets, At Cost (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||||||
Accumulated | Net book | Accumulated | Net book | useful life | |||||||||||||||||||||||||
Asset | Cost | amortization | value | Cost | amortization | value | (years) | ||||||||||||||||||||||
eClinical customer lists | $ | 1,392,701 | $ | 1,392,701 | $ | -0- | $ | 1,392,701 | $ | 1,392,701 | $ | -0- | 3 | ||||||||||||||||
Promasys B.V. customer lists | 124,725 | 7,622 | 117,103 | 136,253 | 1,514 | 134,739 | 15 | ||||||||||||||||||||||
Promasys B.V. software code | 72,837 | 13,353 | 59,484 | 72,943 | 2,431 | 70,512 | 5 | ||||||||||||||||||||||
Promasys B.V. URLs/Website | 62,993 | 19,248 | 43,745 | 68,814 | 3,823 | 64,991 | 3 | ||||||||||||||||||||||
Total | $ | 1,653,256 | $ | 1,432,924 | $ | 220,332 | $ | 1,670,711 | $ | 1,400,469 | $ | 270,242 | |||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||||||||||||||||||
2014 | $ | 10,970 | |||||||||||||||||||||||||||
2015 | 43,880 | ||||||||||||||||||||||||||||
2016 | 40,380 | ||||||||||||||||||||||||||||
2017 | 22,883 | ||||||||||||||||||||||||||||
2018 | 20,454 | ||||||||||||||||||||||||||||
Thereafter | 81,765 | ||||||||||||||||||||||||||||
Total | $ | 220,332 |
Note_7_Accounts_Payable_and_Ac1
Note 7 - Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | ||||||||
Account | 30-Sep-14 | 31-Dec-13 | |||||||
Accounts payable | $ | 570,092 | $ | 724,421 | |||||
Accrued payroll and related costs | 620,026 | 260,072 | |||||||
Other accrued expenses | 118,218 | 88,292 | |||||||
Accrued interest | 948,168 | 1,468,171 | |||||||
Total accounts payable and accrued expenses | $ | 2,256,504 | $ | 2,540,956 |
Note_8_Line_of_Credit_and_Note1
Note 8 - Line of Credit and Notes Payable (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||||||||||||||||||||
Ending | |||||||||||||||||||||||||||
principal | Non related party | Related party | |||||||||||||||||||||||||
Origination | Maturity | Interest | September 30, | Long | Long | ||||||||||||||||||||||
date | date | rate | 2014 | Current | term | Current | term | ||||||||||||||||||||
12/17/12 | 12/16/14 | 12% | $ | 20,000 | $ | 20,000 | $ | -0- | $ | -0- | $ | -0- | |||||||||||||||
1/1/13 | 1/1/15 | 10% | 308,562 | 308,562 | -0- | -0- | -0- | ||||||||||||||||||||
1/1/13 | 1/1/16 | 12% | 529,000 | -0- | -0- | -0- | 529,000 | ||||||||||||||||||||
2/1/13 | 1/1/16 | 12% | 20,000 | -0- | -0- | -0- | 20,000 | ||||||||||||||||||||
4/1/13 | 3/31/16 | 12% | 2,866,879 | -0- | -0- | -0- | 2,866,879 | ||||||||||||||||||||
4/4/14 | 4/1/17 | 12% | 45,000 | -0- | 45,000 | -0- | -0- | ||||||||||||||||||||
4/4/14 | 4/1/17 | 12% | 137,500 | -0- | 137,500 | -0- | -0- | ||||||||||||||||||||
4/4/14 | 4/1/17 | 10% | 120,000 | -0- | 120,000 | -0- | -0- | ||||||||||||||||||||
4/4/14 | 4/1/17 | 12% | 1,600,000 | -0- | -0- | -0- | 1,600,000 | ||||||||||||||||||||
1/1/14 | 4/1/17 | 12% | 980,000 | -0- | -0- | -0- | 980,000 | ||||||||||||||||||||
Discount on note payable | -0- | -0- | -0- | (670,535 | ) | ||||||||||||||||||||||
Total | $ | 6,626,941 | $ | 328,562 | $ | 302,500 | $ | -0- | $ | 5,325,344 | |||||||||||||||||
Ending | |||||||||||||||||||||||||||
principal | Non related party | Related party | |||||||||||||||||||||||||
Origination | Maturity | Interest | December 31, | Long | Long | ||||||||||||||||||||||
date | date | rate | 2013 | Current | term | Current | term | ||||||||||||||||||||
12/31/11 | 1/1/15 | 12% | $ | 1,600,000 | $ | -0- | $ | -0- | $ | -0- | $ | 1,600,000 | |||||||||||||||
4/1/12 | 1/1/14 | 12% | 17,500 | 17,500 | -0- | -0- | -0- | ||||||||||||||||||||
12/17/12 | 12/16/14 | 12% | 20,000 | 20,000 | -0- | -0- | -0- | ||||||||||||||||||||
1/1/13 | 1/1/16 | 12% | 529,000 | -0- | -0- | -0- | 529,000 | ||||||||||||||||||||
1/1/13 | 1/1/15 | 10% | 308,562 | -0- | 308,562 | -0- | -0- | ||||||||||||||||||||
1/1/13 | 1/1/15 | 10% | 123,424 | -0- | 123,424 | -0- | -0- | ||||||||||||||||||||
1/1/13 | 1/1/15 | 12% | 45,000 | -0- | 45,000 | -0- | -0- | ||||||||||||||||||||
2/1/13 | 1/1/16 | 12% | 20,000 | -0- | -0- | -0- | 20,000 | ||||||||||||||||||||
3/5/13 | 1/1/15 | 12% | 137,500 | -0- | 137,500 | -0- | -0- | ||||||||||||||||||||
4/1/13 | 3/31/16 | 12% | 2,866,879 | -0- | -0- | -0- | 2,866,879 | ||||||||||||||||||||
Discount on note payable | -0- | -0- | -0- | (447,666 | ) | ||||||||||||||||||||||
Total | $ | 5,667,865 | $ | 37,500 | $ | 614,486 | $ | -0- | $ | 4,568,213 |
Note_9_Convertible_Notes_Payab1
Note 9 - Convertible Notes Payable (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
Note 9 - Convertible Notes Payable (Tables) [Line Items] | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 75,000 | |||||||||||||||||||||||||||||||||||||||||||||
2015 | -0- | ||||||||||||||||||||||||||||||||||||||||||||||
2016 | 9,590,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 9,665,000 | |||||||||||||||||||||||||||||||||||||||||||||
Convertible Debt [Member] | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Note 9 - Convertible Notes Payable (Tables) [Line Items] | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Principal | Discount | Carrying | Carrying amount | ||||||||||||||||||||||||||||||||||||||||||||
at | Total | at | amount at | Short term | Long term | ||||||||||||||||||||||||||||||||||||||||||
Date of issuance | Maturity | Interest | Original | 30-Sep-14 | Allocated | discount | 30-Sep-14 | 30-Sep-14 | Related | Non | Related | Non related | |||||||||||||||||||||||||||||||||||
date | rate | principal | discount | amortized | related | ||||||||||||||||||||||||||||||||||||||||||
8/1/99 | 6/30/04 | 10% | $ | 862,500 | $ | 75,000 | $ | -0- | $ | -0- | $ | -0- | $ | 75,000 | $ | -0- | $ | 75,000 | $ | -0- | $ | -0- | |||||||||||||||||||||||||
8/29/08 | 4/1/16 | 10% | 150,000 | 150,000 | 135,600 | 135,600 | -0- | 150,000 | -0- | -0- | -0- | 150,000 | |||||||||||||||||||||||||||||||||||
8/29/08 | 1/1/16 | 10% | 2,120,000 | 1,770,000 | 1,916,480 | 1,916,480 | -0- | 1,770,000 | -0- | -0- | 1,770,000 | -0- | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 160,000 | 160,000 | 44,024 | 44,024 | -0- | 160,000 | -0- | -0- | -0- | 160,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 200,000 | 200,000 | 55,030 | 55,030 | -0- | 200,000 | -0- | -0- | -0- | 200,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 4/1/16 | 12% | 100,000 | 100,000 | 27,515 | 27,515 | -0- | 100,000 | -0- | -0- | -0- | 100,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 4,615,000 | 4,520,000 | 1,243,681 | 1,243,681 | -0- | 4,520,000 | -0- | -0- | 4,505,000 | 15,000 | |||||||||||||||||||||||||||||||||||
9/30/09 | 1/1/16 | 12% | 1,400,000 | 1,200,000 | 526,400 | 526,400 | -0- | 1,200,000 | -0- | -0- | 1,100,000 | 100,000 | |||||||||||||||||||||||||||||||||||
12/31/09 | 1/1/16 | 12% | 1,490,000 | 1,490,000 | 935,720 | 935,720 | -0- | 1,490,000 | -0- | -0- | 1,440,000 | 50,000 | |||||||||||||||||||||||||||||||||||
Total | $ | 11,097,500 | $ | 9,665,000 | $ | 4,884,450 | $ | 4,884,450 | $ | -0- | $ | 9,665,000 | $ | -0- | $ | 75,000 | $ | 8,815,000 | $ | 775,000 | |||||||||||||||||||||||||||
Principal | Discount | Carrying | Carrying amount | ||||||||||||||||||||||||||||||||||||||||||||
at | Total | at | amount at | Short term | Long term | ||||||||||||||||||||||||||||||||||||||||||
Date of issuance | Maturity | Interest | Original | December | Allocated | discount | 31-Dec-13 | 31-Dec-13 | Related | Non | Related | Non related | |||||||||||||||||||||||||||||||||||
date | rate | principal | 31, 2013 | discount | amortized | related | |||||||||||||||||||||||||||||||||||||||||
8/1/99 | 6/30/04 | 10% | $ | 862,500 | $ | 75,000 | $ | -0- | $ | -0- | $ | -0- | $ | 75,000 | $ | -0- | $ | 75,000 | $ | -0- | $ | -0- | |||||||||||||||||||||||||
8/29/08 | 1/1/15 | 10% | 150,000 | 150,000 | 135,600 | 135,600 | -0- | 150,000 | -0- | -0- | 150,000 | -0- | |||||||||||||||||||||||||||||||||||
8/29/08 | 1/1/16 | 10% | 2,120,000 | 1,770,000 | 1,916,480 | 1,916,480 | -0- | 1,770,000 | -0- | -0- | 1,770,000 | -0- | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/15 | 12% | 100,000 | 100,000 | 27,515 | 27,515 | -0- | 100,000 | -0- | -0- | -0- | 100,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 160,000 | 160,000 | 44,024 | 44,024 | -0- | 160,000 | -0- | -0- | 160,000 | -0- | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 200,000 | 200,000 | 55,030 | 55,030 | -0- | 200,000 | -0- | -0- | -0- | 200,000 | |||||||||||||||||||||||||||||||||||
12/16/08 | 1/1/16 | 12% | 4,615,000 | 4,520,000 | 1,243,681 | 1,243,681 | -0- | 4,520,000 | -0- | -0- | 4,505,000 | 15,000 | |||||||||||||||||||||||||||||||||||
9/30/09 | 1/1/16 | 12% | 1,400,000 | 1,200,000 | 526,400 | 526,400 | -0- | 1,200,000 | -0- | -0- | 1,100,000 | 100,000 | |||||||||||||||||||||||||||||||||||
12/31/09 | 1/1/16 | 12% | 1,490,000 | 1,490,000 | 935,720 | 935,720 | -0- | 1,490,000 | -0- | -0- | 1,440,000 | 50,000 | |||||||||||||||||||||||||||||||||||
Total | $ | 11,097,500 | $ | 9,665,000 | $ | 4,884,450 | $ | 4,884,450 | $ | -0- | $ | 9,665,000 | $ | -0- | $ | 75,000 | $ | 9,125,000 | $ | 465,000 |
Note_10_Fair_Value_Measurement1
Note 10 - Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||||||||||
Fair value at | Quoted prices in active markets for identical assets/ liabilities | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||
Derivatives: (1) (2) | |||||||||||||||||||||||||
Conversion feature liability | $ | 1,533,362 | $ | -0- | $ | -0- | $ | 1,533,362 | |||||||||||||||||
Warrant liability | 3,754,666 | -0- | -0- | 3,754,666 | |||||||||||||||||||||
Total of derivative liabilities | $ | 5,288,028 | $ | -0- | $ | -0- | $ | 5,288,028 | |||||||||||||||||
Fair value at | Quoted prices in active markets for identical assets/ liabilities | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||
Derivatives: (1) (2) | |||||||||||||||||||||||||
Conversion feature liability | $ | 3,126,206 | $ | -0- | $ | -0- | $ | 3,126,206 | |||||||||||||||||
Warrant liability | 5,943,977 | -0- | -0- | 5,943,977 | |||||||||||||||||||||
Total of derivative liabilities | $ | 9,070,183 | $ | -0- | $ | -0- | $ | 9,070,183 | |||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | ' | ||||||||||||||||||||||||
Significant valuation assumptions of derivative instruments at September 30, 2014 | |||||||||||||||||||||||||
Risk free interest rate | 0.11% | ||||||||||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||||||||||
Expected volatility | 124.6% to 178.8% | ||||||||||||||||||||||||
Expected life (range in years) | |||||||||||||||||||||||||
Conversion feature liability | 1.25 to 1.50 | ||||||||||||||||||||||||
Warrant liability | 1.25 to 2.50 | ||||||||||||||||||||||||
Significant valuation assumptions of derivative instruments at December 31, 2013 | |||||||||||||||||||||||||
Risk free interest rate | 0.12% to 0.13% | ||||||||||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||||||||||
Expected volatility | 166.7% to 217.1% | ||||||||||||||||||||||||
Expected life (range in years) | |||||||||||||||||||||||||
Conversion feature liability | 1.00 to 2.00 | ||||||||||||||||||||||||
Warrant liability | 1.00 to 2.25 | ||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | ' | ||||||||||||||||||||||||
Carrying amount December 31, | Carrying amount September 30, | Quoted prices in active markets for identical assets/ liabilities | Significant other observable inputs | Significant unobservable inputs | |||||||||||||||||||||
2013 | 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||
Acquired assets (3) | |||||||||||||||||||||||||
Promasys B.V. customer lists (4) | $ | 134,739 | $ | 117,103 | $ | -0- | $ | -0- | $ | 136,253 | |||||||||||||||
Promasys B.V. software code (4) | 70,512 | 59,484 | -0- | -0- | 72,943 | ||||||||||||||||||||
Promasys B.V. URLs/website (4) | 64,991 | 43,745 | -0- | -0- | 68,814 | ||||||||||||||||||||
Total | $ | 270,242 | $ | 220,332 | $ | -0- | $ | -0- | $ | 278,010 | |||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
Goodwill | $ | 618,541 | $ | 675,710 | |||||||||||||||||||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block] | ' | ||||||||||||||||||||||||
Other income | |||||||||||||||||||||||||
for the nine months ended | |||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||
The net amount of gains/(losses) for the period included in earnings attributable to the unrealized gain/(loss) from changes in derivative liabilities at the reporting date | $ | 4,410,241 | $ | (2,524,671 | ) | ||||||||||||||||||||
Total unrealized gains/(losses) included in earnings | $ | 4,410,241 | $ | (2,524,671 | ) | ||||||||||||||||||||
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | ' | ||||||||||||||||||||||||
Level 3 financial assets and financial liabilities at fair value | |||||||||||||||||||||||||
Net unrealized | |||||||||||||||||||||||||
(gains)/losses | Net | ||||||||||||||||||||||||
relating to | purchases, | ||||||||||||||||||||||||
Balance, | instruments | issuances | Net transfers | Balance, | |||||||||||||||||||||
beginning | Net realized | still held at the | and | in and/or out | end of | ||||||||||||||||||||
of year | gains/(losses) | reporting date | settlements | of Level 3 | period | ||||||||||||||||||||
Period ended September 30, 2014 | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Conversion feature liability | $ | 3,126,206 | $ | -0- | $ | (1,592,844 | ) | $ | -0- | $ | -0- | $ | 1,533,362 | ||||||||||||
Warrant liability | 5,943,977 | -0- | (2,817,397 | ) | 628,086 | -0- | 3,754,666 | ||||||||||||||||||
Total of derivative liabilities | $ | 9,070,183 | $ | -0- | $ | (4,410,241 | ) | $ | 628,086 | $ | -0- | $ | 5,288,028 | ||||||||||||
Level 3 financial assets and financial liabilities at fair value | |||||||||||||||||||||||||
Net unrealized | |||||||||||||||||||||||||
(gains)/losses | Net | ||||||||||||||||||||||||
relating to | purchases, | ||||||||||||||||||||||||
Balance, | instruments | issuances | Net transfers | Balance, | |||||||||||||||||||||
beginning | Net realized | still held at the | and | in and/or out | end of | ||||||||||||||||||||
of year | gains/(losses) | reporting date | settlements | of Level 3 | year | ||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Conversion feature liability | $ | 2,287,323 | $ | -0- | $ | 838,883 | $ | -0- | $ | -0- | $ | 3,126,206 | |||||||||||||
Warrant liability | 6,287,598 | -0- | (743,762 | ) | 400,141 | -0- | 5,943,977 | ||||||||||||||||||
Total of derivative liabilities | $ | 8,574,921 | $ | -0- | $ | 95,121 | $ | 400,141 | $ | -0- | $ | 9,070,183 |
Note_11_Commitments_and_Contin1
Note 11 - Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
2014 | $ | 169,095 | |||
2015 | 657,752 | ||||
2016 | 369,825 | ||||
2017 | 52,234 | ||||
2018 | 5,354 | ||||
Total | $ | 1,254,260 | |||
Schedule of Minimum Royalty Payments [Table Text Block] | ' | ||||
2014 | $ | 625,000 | |||
2015 | 450,000 | ||||
2016 | 450,000 | ||||
2017 | 450,000 | ||||
Total | $ | 1,975,000 |
Note_13_Stockholders_Deficit_T
Note 13 - Stockholders' (Deficit) (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Note 13 - Stockholders' (Deficit) (Tables) [Line Items] | ' | ||||||||||||||||||||||
Schedule of Dividends in Arrears [Table Text Block] | ' | ||||||||||||||||||||||
Cumulative arrearage as of | Cumulative arrearage per share | ||||||||||||||||||||||
September 30, | as of September 30, | ||||||||||||||||||||||
Series of preferred stock | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Series A | $ | 2,534,711 | $ | 2,328,450 | $ | 0.61 | $ | 0.56 | |||||||||||||||
Series B | 609,887 | 609,887 | $ | 3.05 | $ | 3.05 | |||||||||||||||||
Series C | 1,472,093 | 1,472,093 | $ | 4.37 | $ | 4.37 | |||||||||||||||||
Total preferred stock arrearage | $ | 4,616,691 | $ | 4,410,430 | |||||||||||||||||||
Schedule of Dividends Payable [Table Text Block] | ' | ||||||||||||||||||||||
Dividends accreted | Dividends per share | ||||||||||||||||||||||
nine months ended September 30, | nine months ended September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Preferred stock dividends in arrears Series A | $ | 154,272 | $ | 154,272 | $ | 0.037 | $ | 0.037 | |||||||||||||||
Preferred stock dividends in arrears Series B | $ | -0- | $ | -0- | $ | -0- | $ | -0- | |||||||||||||||
Preferred stock dividends in arrears Series C | $ | -0- | $ | -0- | $ | -0- | $ | -0- | |||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | ||||||||||||||||||||||
September 30, 2014 warrants outstanding | September 30, 2014 warrants exercisable | ||||||||||||||||||||||
Range of | Number outstanding at | Weighted average | Weighted average | Number exercisable at | Weighted average | ||||||||||||||||||
exercise price | 30-Sep-14 | remaining contractual life | exercise price | 30-Sep-14 | exercise price | ||||||||||||||||||
$0.25 | – | $0.60 | 48,463,517 | 1.41 | $ | 0.35 | 48,463,517 | $ | 0.35 | ||||||||||||||
December 31, 2013 warrants outstanding | December 31, 2013 warrants exercisable | ||||||||||||||||||||||
Range of | Number outstanding at | Weighted average | Weighted average | Number exercisable at | Weighted average | ||||||||||||||||||
exercise price | 31-Dec-13 | remaining contractual life | exercise price | 31-Dec-13 | exercise price | ||||||||||||||||||
$0.25 | – | $0.60 | 44,728,873 | 2.05 | $ | 0.36 | 44,728,873 | $ | 0.36 | ||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | ' | ||||||||||||||||||||||
Weighted average grant date fair value | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Stock options granted during the nine month period ended September 30, | $ | 0.16 | $ | 0.17 | |||||||||||||||||||
Stock options vested during the nine month period ended September 30, | $ | 0.12 | $ | 0.1 | |||||||||||||||||||
Stock options forfeited during the nine month period ended September 30, | $ | 0.43 | $ | 0.28 | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||||||
Foreign currency | Accumulated other | ||||||||||||||||||||||
translation | comprehensive (loss) | ||||||||||||||||||||||
Balance at December 31, 2012 | $ | (69,092 | ) | $ | (69,092 | ) | |||||||||||||||||
2013 Activity | (18,512 | ) | (18,512 | ) | |||||||||||||||||||
Balance at December 31, 2013 | (87,604 | ) | (87,604 | ) | |||||||||||||||||||
2014 Activity | (110,839 | ) | (110,839 | ) | |||||||||||||||||||
Balance at September 30, 2014 | $ | (198,443 | ) | $ | (198,443 | ) | |||||||||||||||||
Warrant [Member] | ' | ||||||||||||||||||||||
Note 13 - Stockholders' (Deficit) (Tables) [Line Items] | ' | ||||||||||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | ' | ||||||||||||||||||||||
Warrants | |||||||||||||||||||||||
Balance at December 31, 2013 | 44,728,873 | ||||||||||||||||||||||
Issued | 3,920,000 | ||||||||||||||||||||||
Exercised | -0- | ||||||||||||||||||||||
Expired/forfeited | (185,356 | ) | |||||||||||||||||||||
Balance at September 30, 2014 | 48,463,517 | ||||||||||||||||||||||
Warrants exercisable at September 30, 2014 | 48,463,517 | ||||||||||||||||||||||
Weighted average fair value of warrants granted during 2014 | $ | 0.15 |
Note_14_Employee_Equity_Incent1
Note 14 - Employee Equity Incentive Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Weighted | average | |||||||||||||||||||||||||||
average | remaining | |||||||||||||||||||||||||||
Number of | exercise price | contractual term | Aggregate | |||||||||||||||||||||||||
shares | (per share) | (in years) | intrinsic value | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 10,452,500 | $ | 0.36 | 1.68 | $ | 149,598 | ||||||||||||||||||||||
Granted | 350,000 | 0.17 | ||||||||||||||||||||||||||
Exercised | (100,000 | ) | 0.18 | |||||||||||||||||||||||||
Forfeited/cancelled/expired | (4,957,500 | ) | 0.42 | |||||||||||||||||||||||||
Outstanding at December 31, 2013 | 5,745,000 | 0.29 | 1.7 | $ | 93,945 | |||||||||||||||||||||||
Granted | 150,000 | 0.16 | ||||||||||||||||||||||||||
Exercised | -0- | -0- | ||||||||||||||||||||||||||
Forfeited/cancelled/expired | (1,213,500 | ) | 0.54 | |||||||||||||||||||||||||
Outstanding at September 30, 2014 | 4,681,500 | $ | 0.23 | 1.35 | $ | 115,650 | ||||||||||||||||||||||
Vested and exercisable at September 30, 2014 | 4,281,500 | $ | 0.23 | 1.1 | $ | 108,475 | ||||||||||||||||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block] | ' | |||||||||||||||||||||||||||
Number of options | Fair value of | |||||||||||||||||||||||||||
vested | options vested | |||||||||||||||||||||||||||
Fair value of options vesting during the nine months ended September 30, 2014 | 570,834 | $ | 66,389 | |||||||||||||||||||||||||
Fair value of options vesting during the nine months ended September 30, 2013 | 593,833 | $ | 62,204 | |||||||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | |||||||||||||||||||||||||||
Awards breakdown by price range at September 30, 2014 | ||||||||||||||||||||||||||||
Outstanding | Vested | |||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Weighted | Weighted | average | ||||||||||||||||||||||||||
average | average | remaining | Weighted | |||||||||||||||||||||||||
Strike price | Outstanding | remaining | outstanding | Vested stock | vested | average vested | ||||||||||||||||||||||
range ($) | stock options | contractual life | strike price | options | contractual life | strike price | ||||||||||||||||||||||
0 | to | 0.2 | 3,302,500 | 1.55 | $ | 0.15 | 2,952,500 | 1.25 | $ | 0.15 | ||||||||||||||||||
0.21 | to | 0.29 | 600,000 | 1.18 | 0.24 | 550,000 | 0.95 | 0.25 | ||||||||||||||||||||
0.3 | to | 0.49 | 80,000 | 0.23 | 0.38 | 80,000 | 0.23 | 0.38 | ||||||||||||||||||||
0.5 | to | 0.7 | 699,000 | 0.68 | 0.55 | 699,000 | 0.68 | 0.55 | ||||||||||||||||||||
0 | to | 0.7 | 4,681,500 | 1.35 | $ | 0.23 | 4,281,500 | 1.1 | $ | 0.23 | ||||||||||||||||||
Awards breakdown by price range at December 31, 2013 | ||||||||||||||||||||||||||||
Outstanding | Vested | |||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||||
Weighted | Weighted | average | ||||||||||||||||||||||||||
average | average | remaining | Weighted | |||||||||||||||||||||||||
Strike price | Outstanding | remaining | outstanding | Vested stock | vested | average vested | ||||||||||||||||||||||
range ($) | stock options | contractual life | strike price | options | contractual life | strike price | ||||||||||||||||||||||
0 | to | 0.2 | 3,251,000 | 2.16 | $ | 0.15 | 2,530,166 | 1.86 | $ | 0.16 | ||||||||||||||||||
0.21 | to | 0.29 | 750,000 | 1.64 | 0.25 | 650,000 | 1.2 | 0.25 | ||||||||||||||||||||
0.3 | to | 0.49 | 110,000 | 0.98 | 0.38 | 110,000 | 0.98 | 0.38 | ||||||||||||||||||||
0.5 | to | 0.7 | 1,634,000 | 0.87 | 0.59 | 1,634,000 | 0.87 | 0.59 | ||||||||||||||||||||
0 | to | 0.7 | 5,745,000 | 1.7 | $ | 0.29 | 4,924,166 | 1.42 | $ | 0.32 | ||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||||||||||||||||
Stock option assumptions for the nine months ended | ||||||||||||||||||||||||||||
Stock option assumptions | 30-Sep-14 | 30-Sep-13 | ||||||||||||||||||||||||||
Risk-free interest rate | 0.93% | 0.70% | ||||||||||||||||||||||||||
Expected dividend yield | 0.00% | 0.00% | ||||||||||||||||||||||||||
Expected volatility | 199.00% | 203.40% | ||||||||||||||||||||||||||
Expected life of options (in years) | 5 | 5 | ||||||||||||||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | ' | |||||||||||||||||||||||||||
Weighted average grant date fair value | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Stock options granted during the nine month period ended September 30, | $ | 0.16 | $ | 0.17 | ||||||||||||||||||||||||
Stock options vested during the nine month period ended September 30, | $ | 0.12 | $ | 0.1 | ||||||||||||||||||||||||
Stock options forfeited during the nine month period ended September 30, | $ | 0.43 | $ | 0.28 | ||||||||||||||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | |||||||||||||||||||||||||||
Shares underlying stock | Weighted average grant | |||||||||||||||||||||||||||
options | date fair value | |||||||||||||||||||||||||||
Nonvested shares at January 1, 2014 | 820,834 | $ | 0.13 | |||||||||||||||||||||||||
Nonvested shares at September 30, 2014 | 400,000 | $ | 0.16 |
Note_15_Income_Taxes_Tables
Note 15 - Income Taxes (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
30-Sep-14 | 30-Sep-13 | ||||||||
Federal statutory rate applied to income/(loss) before income taxes | $ | 165,693 | $ | (1,662,692 | ) | ||||
Increase/(decrease) in income taxes results from: | |||||||||
Current tax expense | 35,407 | 48,599 | |||||||
Non deductible expenses | (1,482,741 | ) | 1,144,767 | ||||||
Change in deferred assets | 49,571 | 37,086 | |||||||
Change in valuation allowance | 1,267,477 | 480,839 | |||||||
Income tax expense | $ | 35,407 | $ | 48,599 | |||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
30-Sep-14 | 30-Sep-13 | ||||||||
Current tax expense | $ | 35,407 | $ | 48,599 | |||||
Deferred tax expense/(benefit): | |||||||||
Bad debt allowance | (28,837 | ) | 13,106 | ||||||
Operating loss carryforward | (1,288,211 | ) | (531,031 | ) | |||||
Amortization of intangibles | 4,111 | -0- | |||||||
Patent litigation settlement | 45,460 | 37,086 | |||||||
(1,267,477 | ) | (480,839 | ) | ||||||
Valuation allowance | 1,267,477 | 480,839 | |||||||
Total tax expense | $ | 35,407 | $ | 48,599 | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
30-Sep-14 | 30-Sep-13 | ||||||||
Amortization of intangibles | $ | 279,587 | $ | 283,698 | |||||
Bad debt allowance | 52,452 | 17,608 | |||||||
Patent litigation liability accrual | 269,948 | 349,596 | |||||||
Operating loss carryforwards | 19,508,693 | 17,887,001 | |||||||
Gross deferred tax assets | 20,110,680 | 18,537,903 | |||||||
Valuation allowance | (20,110,680 | ) | (18,537,903 | ) | |||||
Net deferred tax liability/(asset) | $ | -0- | $ | -0- |
Note_1_Organization_and_Nature1
Note 1 - Organization and Nature of Operations (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' | ' |
Research and Development Expense | $2,092,125 | $1,718,079 |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 10, 2009 | Dec. 31, 2008 | |
Leasehold Improvements, Computers, Equipment and Furniture [Member] | Software Development [Member] | Customer 1 [Member] | Customer 1 [Member] | Customer 1 [Member] | Customer 1 [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Minimum [Member] | Maximum [Member] | 2009 Plan [Member] | 1998 Plan [Member] | ||||||
Sales [Member] | Sales [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | ||||||||||||||
Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | |||||||||||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | ($86,887) | ($3,006) | ($110,839) | ($30,485) | ($18,512) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Reportable Segments | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of Software License | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | 142,051 | ' | 142,051 | ' | 65,341 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash, Uninsured Amount | 767,672 | ' | 767,672 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | 13.00% | 11.00% | ' | ' | 13.00% | 11.00% | 11.00% | ' | ' | ' | ' |
Revenues | 5,124,689 | 3,477,621 | 11,915,713 | 10,956,144 | ' | ' | ' | ' | ' | 1,585,000 | 1,221,000 | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | '5 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Revenue | 8,232,798 | ' | 8,232,798 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Term of Contract | ' | ' | '6 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 month | '6 years 6 months | ' | ' |
Deferred Revenue, Current | 5,702,672 | ' | 5,702,672 | ' | 2,866,356 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising Expense | ' | ' | 338,486 | 175,095 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and Development Expense | ' | ' | $2,092,125 | $1,718,079 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | 12,500,000 |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies (Details) - Revenue by Business Activity (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Revenue | $5,124,689 | $3,477,621 | $11,915,713 | $10,956,144 |
Set-up Fees [Member] | ' | ' | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Revenue | 1,419,722 | 988,990 | 3,363,576 | 2,584,285 |
Change Orders [Member] | ' | ' | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Revenue | 140,949 | 119,870 | 337,903 | 344,400 |
Maintenance [Member] | ' | ' | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Revenue | 1,175,527 | 1,186,023 | 3,187,173 | 3,495,908 |
Software Licenses [Member] | ' | ' | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Revenue | 1,444,623 | 430,323 | 2,730,770 | 2,333,016 |
Professional Services [Member] | ' | ' | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Revenue | 747,693 | 552,719 | 1,700,498 | 1,625,600 |
Hosting [Member] | ' | ' | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' | ' | ' |
Revenue | $196,175 | $199,696 | $595,793 | $572,935 |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies (Details) - Allowance for Doubtful Account Summary (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Allowance for Doubtful Account Summary [Abstract] | ' | ' | ' | ' | ' |
Beginning of period | ' | ' | $65,341 | $84,210 | $84,210 |
Bad debt expense | 632 | 8,191 | 76,634 | -4,830 | 11,131 |
Write-offs | ' | ' | 0 | ' | -30,000 |
Exchange rate impact | ' | ' | 76 | ' | 0 |
End of period | $142,051 | ' | $142,051 | ' | $65,341 |
Note_2_Summary_of_Significant_5
Note 2 - Summary of Significant Accounting Policies (Details) - Customer Concentration (Customer Concentration Risk [Member]) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Sales [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Number of Customers | 1 | 1 | 1 |
Percentage of Concentration Risk | 13.00% | 11.00% | 11.00% |
Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Number of Customers | 0 | 2 | 2 |
Percentage of Concentration Risk | 0.00% | 29.00% | 23.00% |
Note_2_Summary_of_Significant_6
Note 2 - Summary of Significant Accounting Policies (Details) - Revenue from European Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Note 2 - Summary of Significant Accounting Policies (Details) - Revenue from European Operations [Line Items] | ' | ' | ' | ' |
$5,124,689 | $3,477,621 | $11,915,713 | $10,956,144 | |
Reportable Geographical Components [Member] | Europe [Member] | ' | ' | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) - Revenue from European Operations [Line Items] | ' | ' | ' | ' |
' | ' | $1,750,331 | $1,214,121 | |
Sales [Member] | Geographic Concentration Risk [Member] | Europe [Member] | ' | ' | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) - Revenue from European Operations [Line Items] | ' | ' | ' | ' |
' | ' | 14.70% | 11.10% |
Note_4_Earnings_Loss_Per_Share2
Note 4 - Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Note 4 - Earnings (Loss) Per Share (Details) [Line Items] | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Basic (in Shares) | 91,032,920 | 87,867,268 | 90,417,480 | 87,515,641 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | ' | ' | 81,482,435 | 79,502,620 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | ' | ' | $0.05 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | ' | ' | $0.64 | ' |
Lower Range Limit [Member] | ' | ' | ' | ' |
Note 4 - Earnings (Loss) Per Share (Details) [Line Items] | ' | ' | ' | ' |
Investment Warrants, Exercise Price | ' | ' | $0.25 | ' |
Upper Range Limit [Member] | ' | ' | ' | ' |
Note 4 - Earnings (Loss) Per Share (Details) [Line Items] | ' | ' | ' | ' |
Investment Warrants, Exercise Price | ' | ' | $0.60 | ' |
Lower Range Limit [Member] | ' | ' | ' | ' |
Note 4 - Earnings (Loss) Per Share (Details) [Line Items] | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | 0.25 | ' | $0.25 | ' |
Upper Range Limit [Member] | ' | ' | ' | ' |
Note 4 - Earnings (Loss) Per Share (Details) [Line Items] | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | 0.5 | ' | $0.50 | ' |
Note_4_Earnings_Loss_Per_Share3
Note 4 - Earnings (Loss) Per Share (Details) - Reconciliation of Anti-Dilutive Securities | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-Dilutive Security | 81,482,435 | 79,502,620 |
Shares Of Preferred Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-Dilutive Security | 2,750,149 | 2,750,149 |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-Dilutive Security | 4,681,500 | 6,175,000 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-Dilutive Security | 48,463,517 | 44,728,873 |
Convertible Debt Securities [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-Dilutive Security | 24,620,000 | 24,620,000 |
Shares Issuable For Accrued Interest [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-Dilutive Security | 967,269 | 1,228,598 |
Note_4_Earnings_Loss_Per_Share4
Note 4 - Earnings (Loss) Per Share (Details) - Computation of Diluted Earnings Per Share (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Computation of Diluted Earnings Per Share [Abstract] | ' | ' | ' | ' |
Basic EPS | $1,229,741 | $1,680,481 | $250,642 | ($4,621,397) |
Basic EPS | 91,032,920 | 87,867,268 | 90,417,480 | 87,515,641 |
Basic EPS | $0.01 | $0.02 | $0 | ($0.05) |
Effect of dilutive securities - none | 0 | 0 | 0 | 0 |
Effect of dilutive securities - none | 0 | 0 | 0 | 0 |
Effect of dilutive securities - none | $0 | $0 | $0 | $0 |
Diluted EPS | $1,229,741 | $1,680,481 | $250,642 | ($4,621,397) |
Diluted EPS | 91,032,920 | 87,867,268 | 90,417,480 | 87,515,641 |
Diluted EPS | $0.01 | $0.02 | $0 | ($0.05) |
Note_5_Property_and_Equipment_2
Note 5 - Property and Equipment, Net (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation | $181,520 | $174,436 |
Note_5_Property_and_Equipment_3
Note 5 - Property and Equipment, Net (Details) - Property And Equipment (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | $3,644,471 | $3,586,780 |
Accumulated Depreciation | 3,152,635 | 2,979,347 |
Net Book Value | 491,836 | 607,433 |
Computer And Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 1,852,102 | 1,822,098 |
Accumulated Depreciation | 1,447,075 | 1,326,256 |
Net Book Value | 405,027 | 495,842 |
Estimated Useful Lives | '5 years | ' |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 93,137 | 93,812 |
Accumulated Depreciation | 81,170 | 75,735 |
Net Book Value | 11,967 | 18,077 |
Estimated Useful Lives | '5 years | ' |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 1,585,252 | 1,556,497 |
Accumulated Depreciation | 1,520,180 | 1,477,801 |
Net Book Value | 65,072 | 78,696 |
Estimated Useful Lives | '3 years | ' |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 113,980 | 114,373 |
Accumulated Depreciation | 104,210 | 99,555 |
Net Book Value | $9,770 | $14,818 |
Estimated Useful Lives | '5 years | ' |
Note_6_Intangible_Assets_At_Co2
Note 6 - Intangible Assets, At Cost (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' | ' | ' | ' |
Amortization of Intangible Assets | $11,322 | $0 | $34,549 | $0 |
Note_6_Intangible_Assets_At_Co3
Note 6 - Intangible Assets, At Cost (Details) - Intangible Assets (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | $1,653,256 | $1,670,711 |
Accumulated Amortization | 1,432,924 | 1,400,469 |
Net Book value | 220,332 | 270,242 |
eClinical Customer List [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 1,392,701 | 1,392,701 |
Accumulated Amortization | 1,392,701 | 1,392,701 |
Net Book value | 0 | 0 |
Estimated Useful Lives | '3 years | ' |
Promasys B.V. Customer List [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 124,725 | 136,253 |
Accumulated Amortization | 7,622 | 1,514 |
Net Book value | 117,103 | 134,739 |
Estimated Useful Lives | '15 years | ' |
Promasys B.V. Software Code [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 72,837 | 72,943 |
Accumulated Amortization | 13,353 | 2,431 |
Net Book value | 59,484 | 70,512 |
Estimated Useful Lives | '5 years | ' |
Promasys B.V. URLs/Website [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 62,993 | 68,814 |
Accumulated Amortization | 19,248 | 3,823 |
Net Book value | $43,745 | $64,991 |
Estimated Useful Lives | '3 years | ' |
Note_6_Intangible_Assets_At_Co4
Note 6 - Intangible Assets, At Cost (Details) - Intangible Assets, Future Amortization Expense (USD $) | Sep. 30, 2014 |
Intangible Assets, Future Amortization Expense [Abstract] | ' |
2014 | $10,970 |
2015 | 43,880 |
2016 | 40,380 |
2017 | 22,883 |
2018 | 20,454 |
Thereafter | 81,765 |
Total | $220,332 |
Note_7_Accounts_Payable_and_Ac2
Note 7 - Accounts Payable and Accrued Expenses (Details) - Accounts Payable and Accrued Expenses (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Accounts Payable and Accrued Expenses [Abstract] | ' | ' |
Accounts payable | $570,092 | $724,421 |
Accrued payroll and related costs | 620,026 | 260,072 |
Other accrued expenses | 118,218 | 88,292 |
Accrued interest | 948,168 | 1,468,171 |
Total accounts payable and accrued expenses | $2,256,504 | $2,540,956 |
Note_8_Line_of_Credit_and_Note2
Note 8 - Line of Credit and Notes Payable (Details) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||
Jan. 02, 2014 | Mar. 18, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 18, 2013 | Jan. 02, 2013 | Jan. 02, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 02, 2013 | Jan. 02, 2013 | Jan. 02, 2013 | Feb. 02, 2013 | Mar. 05, 2013 | Apr. 02, 2013 | Jan. 02, 2014 | Jan. 02, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | |
Promissory Note 1 [Member] | Note Payable 7 [Member] | Note Payable 7 [Member] | Note Payable 7 [Member] | Promissory Note 2 [Member] | Promissory Note 3 [Member] | Promissory Note 4 [Member] | Promissory Note 5 [Member] | Promissory Note 6 [Member] | Promissory Note 7 [Member] | Net of Warrants [Member] | Promissory Note 8 [Member] | Promissory Note 9 [Member] | Promissory Note 10 [Member] | Promissory Note 11 [Member] | |||||||
Note 8 - Line of Credit and Notes Payable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | $2,000,000 | ' | ' | $4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 2.00% | 12.00% | 12.00% | 12.00% | 10.00% | 10.00% | 12.00% | 12.00% | 12.00% | 12.00% | 12.00% | ' | 12.00% | 10.00% | 12.00% | 12.00% |
Debt Instrument, Periodic Payment, Interest | ' | 9,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Line of Credit | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured Debt | ' | ' | 6,626,941 | 5,667,865 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | 529,000 | ' | ' | 308,562 | 123,424 | 45,000 | 20,000 | 137,500 | 2,866,879 | 980,000 | ' | 1,600,000 | 120,000 | 45,000 | 137,500 |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | ' | ' | ' | ' | ' | 2,116,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,920,000 | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | ' | ' | ' | ' | ' | $0.25 | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' | ' | ' | ' | ' |
Interest Payable | ' | ' | ' | ' | ' | ' | 529,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Liability | 628,086 | ' | ' | ' | ' | ' | 400,141 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable | ' | ' | 6,626,941 | 5,667,865 | ' | ' | 128,859 | 137,500 | 45,000 | ' | ' | ' | ' | ' | ' | ' | 351,914 | ' | ' | ' | ' |
Debt Instrument, Convertible, Remaining Discount Amortization Period | '39 months | ' | ' | ' | ' | ' | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,424 | ' | ' |
Debt Conversion, Original Debt, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $123,424 | ' | ' |
Note_8_Line_of_Credit_and_Note3
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | Jan. 02, 2013 | |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Interest rate | ' | ' | 2.00% |
Ending principal | $6,626,941 | $5,667,865 | ' |
Short-term Debt [Member] | Note Payable 1 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 20,000 | 0 | ' |
Short-term Debt [Member] | Note Payable 1 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 2 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 308,562 | 17,500 | ' |
Short-term Debt [Member] | Note Payable 2 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 3 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 20,000 | ' |
Short-term Debt [Member] | Note Payable 3 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 4 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 4 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 5 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 5 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 6 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 6 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 7 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 7 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 8 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 8 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 9 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 9 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 10 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Note Payable 10 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Short-term Debt [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 328,562 | 37,500 | ' |
Discount on note payable | 0 | 0 | ' |
Short-term Debt [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Discount on note payable | 0 | 0 | ' |
Long-term Debt [Member] | Note Payable 1 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Long-term Debt [Member] | Note Payable 1 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 1,600,000 | ' |
Long-term Debt [Member] | Note Payable 2 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Long-term Debt [Member] | Note Payable 2 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Long-term Debt [Member] | Note Payable 3 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Long-term Debt [Member] | Note Payable 3 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 529,000 | 0 | ' |
Long-term Debt [Member] | Note Payable 4 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Long-term Debt [Member] | Note Payable 4 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 20,000 | 529,000 | ' |
Long-term Debt [Member] | Note Payable 5 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 308,562 | ' |
Long-term Debt [Member] | Note Payable 5 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 2,866,879 | 0 | ' |
Long-term Debt [Member] | Note Payable 6 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 45,000 | 123,424 | ' |
Long-term Debt [Member] | Note Payable 6 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Long-term Debt [Member] | Note Payable 7 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 137,500 | 45,000 | ' |
Long-term Debt [Member] | Note Payable 7 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Long-term Debt [Member] | Note Payable 8 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 120,000 | 0 | ' |
Long-term Debt [Member] | Note Payable 8 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 20,000 | ' |
Long-term Debt [Member] | Note Payable 9 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 137,500 | ' |
Long-term Debt [Member] | Note Payable 9 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 1,600,000 | 0 | ' |
Long-term Debt [Member] | Note Payable 10 [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 0 | 0 | ' |
Long-term Debt [Member] | Note Payable 10 [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 980,000 | 2,866,879 | ' |
Long-term Debt [Member] | Non-Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 302,500 | 614,486 | ' |
Discount on note payable | 0 | 0 | ' |
Long-term Debt [Member] | Related Party [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Ending principal | 5,325,344 | 4,568,213 | ' |
Discount on note payable | -670,535 | -447,666 | ' |
Note Payable 1 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 16-Dec-14 | 1-Jan-15 | ' |
Interest rate | 12.00% | 12.00% | ' |
Ending principal | 20,000 | 1,600,000 | ' |
Note Payable 2 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 1-Jan-15 | 1-Jan-14 | ' |
Interest rate | 10.00% | 12.00% | ' |
Ending principal | 308,562 | 17,500 | ' |
Note Payable 3 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 1-Jan-16 | 16-Dec-14 | ' |
Interest rate | 12.00% | 12.00% | ' |
Ending principal | 529,000 | 20,000 | ' |
Note Payable 4 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 1-Jan-16 | 1-Jan-16 | ' |
Interest rate | 12.00% | 12.00% | ' |
Ending principal | 20,000 | 529,000 | ' |
Note Payable 5 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 31-Mar-16 | 1-Jan-15 | ' |
Interest rate | 12.00% | 10.00% | ' |
Ending principal | 2,866,879 | 308,562 | ' |
Note Payable 6 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 1-Apr-17 | 1-Jan-15 | ' |
Interest rate | 12.00% | 10.00% | ' |
Ending principal | 45,000 | 123,424 | ' |
Note Payable 7 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 1-Apr-17 | 1-Jan-15 | ' |
Interest rate | 12.00% | 12.00% | 10.00% |
Ending principal | 137,500 | 45,000 | ' |
Note Payable 8 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 1-Apr-17 | 1-Jan-16 | ' |
Interest rate | 10.00% | 12.00% | ' |
Ending principal | 120,000 | 20,000 | ' |
Note Payable 9 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 1-Apr-17 | 1-Jan-15 | ' |
Interest rate | 12.00% | 12.00% | ' |
Ending principal | 1,600,000 | 137,500 | ' |
Note Payable 10 [Member] | ' | ' | ' |
Note 8 - Line of Credit and Notes Payable (Details) - Notes Payable [Line Items] | ' | ' | ' |
Maturity date | 1-Apr-17 | 31-Mar-16 | ' |
Interest rate | 12.00% | 12.00% | ' |
Ending principal | $980,000 | $2,866,879 | ' |
Note_9_Convertible_Notes_Payab2
Note 9 - Convertible Notes Payable (Details) (USD $) | Sep. 30, 2014 | Jan. 02, 2013 | Feb. 22, 2013 | Jun. 30, 2011 | Feb. 22, 2013 | Sep. 30, 2009 | Feb. 22, 2013 | Dec. 16, 2008 | Aug. 29, 2008 | Jan. 02, 2014 | Feb. 22, 2013 | Jan. 02, 2013 | Dec. 31, 2011 | Mar. 31, 2011 | Sep. 30, 2009 | Sep. 30, 2008 | Jun. 30, 2008 | Feb. 22, 2013 | Feb. 22, 2013 | Feb. 22, 2013 | Feb. 27, 2013 | Feb. 22, 2013 | Mar. 30, 2011 | Feb. 22, 2013 | Sep. 30, 2009 | Mar. 12, 2013 | Mar. 06, 2013 | Feb. 22, 2013 | Sep. 30, 2009 | Dec. 05, 2013 | Feb. 22, 2013 | Jun. 30, 2011 | Sep. 30, 2014 | Dec. 31, 1999 | Jun. 30, 2004 | Feb. 22, 2013 | Mar. 30, 2011 | Mar. 30, 2011 | Sep. 30, 2009 | Jul. 31, 2014 | Dec. 16, 2008 | Aug. 29, 2008 | Jul. 31, 2014 | Dec. 31, 2009 |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Financial Officer [Member] | Chief Technology Officer1 [Member] | Chief Executive Officer 2 [Member] | Former Director Mathew Veatech [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Extended Maturity [Member] | Convertible Notes 10% [Member] | Convertible Notes 10% [Member] | Convertible Notes 10% [Member] | Secured Convertible Debenture [Member] | Secured Convertible Debenture [Member] | Secured Convertible Debenture [Member] | Secured Convertible Debenture [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Convertible Debentures 2 [Member] | Convertible Debentures 4 [Member] | |||
Extended Maturity [Member] | Extended Maturity [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Convertible Debentures 2 [Member] | Convertible Debentures 2 [Member] | Convertible Debentures 2 [Member] | Convertible Debentures [Member] | Extended Maturity [Member] | Secured Convertible Debenture [Member] | Secured Convertible Debenture [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Convertible Debentures 2 [Member] | Convertible Debentures 2 [Member] | Convertible Debentures 2 [Member] | Convertible Debentures 2 [Member] | Convertible Debentures 3 [Member] | Convertible Debentures 4 [Member] | Convertible Debentures 4 [Member] | Director [Member] | Director [Member] | Non-Related Party [Member] | Non-Related Party [Member] | |||||||||||||||||||||
Convertible Debentures 4 [Member] | Convertible Debentures 4 [Member] | Convertible Debentures 2 [Member] | ||||||||||||||||||||||||||||||||||||||||||
Note 9 - Convertible Notes Payable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | 2.00% | ' | ' | ' | ' | ' | ' | 10.00% | 12.00% | ' | 12.00% | 12.00% | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | 12.00% | ' | 12.00% | 10.00% | ' | 12.00% |
Convertible Notes Payable | $9,665,000 | ' | $1,440,000 | $1,440,000 | $4,475,000 | $4,350,000 | $4,475,000 | ' | $1,260,000 | ' | $1,770,000 | ' | ' | ' | $1,770,000 | $4,200,000 | $510,000 | $25,000 | $5,000 | $1,770,000 | $15,000 | $1,200,000 | $1,200,000 | $150,000 | $1,920,000 | $100,000 | $200,000 | $4,505,000 | $4,980,000 | $160,000 | $1,490,000 | $1,490,000 | ' | $862,500 | ' | $1,100,000 | $1,100,000 | ' | $1,400,000 | $150,000 | $5,075,000 | $2,270,000 | $160,000 | $1,490,000 |
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 119,625 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 742,875 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.25 | ' | ' | ' | $0.25 | ' | $0.50 | $0.50 | ' | $0.25 |
Debt Conversion, Converted Instrument, Amount | ' | ' | ' | ' | ' | ' | ' | 4,350,000 | 510,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 787,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,495,179 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115,358 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | ' | ' | ' | ' | ' | ' | 8,700,000 | 3,540,000 | 3,920,000 | ' | 2,116,000 | 6,400,000 | 11,467,517 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,600,000 | ' | 10,150,000 | 4,540,000 | ' | 5,960,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' | $0.25 | $0.25 | $0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' | ' | ' | ' | $0.25 |
Repayments of Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' |
Note_9_Convertible_Notes_Payab3
Note 9 - Convertible Notes Payable (Details) - Convertible Debt (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 02, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Convertible Notes Payable 10% $862,500 [Member] | Convertible Notes Payable 10% $862,500 [Member] | Convertible Notes Payable 10% $862,500 [Member] | Convertible Notes Payable 10% $150,000 [Member] | Convertible Notes Payable 10% $150,000 [Member] | Convertible Notes Payable 10% $150,000 [Member] | Convertible Notes Payable 10% $150,000 [Member] | Convertible Notes Payable 10% $150,000 [Member] | Convertible Notes Payable 10% $150,000 [Member] | Convertible Notes Payable 10% $2,120,000 [Member] | Convertible Notes Payable 10% $2,120,000 [Member] | Convertible Notes Payable 10% $2,120,000 [Member] | Convertible Notes Payable 10% $2,120,000 [Member] | Convertible Notes Payable 10% $2,120,000 [Member] | Convertible Notes Payable 10% $2,120,000 [Member] | Convertible Notes Payable 12% $160,000 [Member] | Convertible Notes Payable 12% $160,000 [Member] | Convertible Notes Payable 12% $160,000 [Member] | Convertible Notes Payable 12% $160,000 [Member] | Convertible Notes Payable 12% $160,000 [Member] | Convertible Notes Payable 12% $160,000 [Member] | Convertible Notes Payable 12% $200,000 [Member] | Convertible Notes Payable 12% $200,000 [Member] | Convertible Notes Payable 12% $200,000 [Member] | Convertible Notes Payable 12% $200,000 [Member] | Convertible Notes Payable 12% $200,000 [Member] | Convertible Notes Payable 12% $200,000 [Member] | Convertible Notes Payable 12% $100,000 [Member] | Convertible Notes Payable 12% $100,000 [Member] | Convertible Notes Payable 12% $100,000 [Member] | Convertible Notes Payable 12% $100,000 [Member] | Convertible Notes Payable 12% $100,000 [Member] | Convertible Notes Payable 12% $100,000 [Member] | Convertible Notes Payable 12% $4,615,000 [Member] | Convertible Notes Payable 12% $4,615,000 [Member] | Convertible Notes Payable 12% $4,615,000 [Member] | Convertible Notes Payable 12% $4,615,000 [Member] | Convertible Notes Payable 12% $4,615,000 [Member] | Convertible Notes Payable 12% $4,615,000 [Member] | Convertible Notes Payable 12% $1,400,000 [Member] | Convertible Notes Payable 12% $1,400,000 [Member] | Convertible Notes Payable 12% $1,400,000 [Member] | Convertible Notes Payable 12% $1,400,000 [Member] | Convertible Notes Payable 12% $1,400,000 [Member] | Convertible Notes Payable 12% $1,400,000 [Member] | Convertible Notes Payable 12% $1,490,000 [Member] | Convertible Notes Payable 12% $1,490,000 [Member] | Convertible Notes Payable 12% $1,490,000 [Member] | Convertible Notes Payable 12% $1,490,000 [Member] | Convertible Notes Payable 12% $1,490,000 [Member] | Convertible Notes Payable 12% $1,490,000 [Member] | Total [Member] | Total [Member] | Total [Member] | Total [Member] | Total [Member] | Total [Member] | Convertible Note Payable 10% $862,500 [Member] | Convertible Note Payable 10% $862,500 [Member] | Convertible Note Payable 10% $862,500 [Member] | ||||
Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | Non-Related Party [Member] | Related Party [Member] | Non-Related Party [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity Date | ' | ' | ' | ' | ' | 30-Jun-04 | ' | ' | ' | ' | 1-Apr-16 | 1-Jan-15 | ' | ' | ' | ' | 1-Jan-16 | 1-Jan-16 | ' | ' | ' | ' | 1-Jan-16 | 1-Jan-16 | ' | ' | ' | ' | 1-Jan-16 | 1-Jan-16 | ' | ' | ' | ' | 1-Apr-16 | 1-Jan-15 | ' | ' | ' | ' | 1-Jan-16 | 1-Jan-16 | ' | ' | ' | ' | 1-Jan-16 | 1-Jan-16 | ' | ' | ' | ' | 1-Jan-16 | 1-Jan-16 | ' | ' | ' | ' | ' | ' | ' | ' | 30-Jun-04 |
Interest Rate | ' | ' | 2.00% | ' | ' | 10.00% | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Original Principal | ' | ' | ' | ' | ' | $862,500 | ' | ' | ' | ' | $150,000 | $150,000 | ' | ' | ' | ' | $2,120,000 | $2,120,000 | ' | ' | ' | ' | $160,000 | $160,000 | ' | ' | ' | ' | $200,000 | $200,000 | ' | ' | ' | ' | $100,000 | $100,000 | ' | ' | ' | ' | $4,615,000 | $4,615,000 | ' | ' | ' | ' | $1,400,000 | $1,400,000 | ' | ' | ' | ' | $1,490,000 | $1,490,000 | ' | ' | ' | ' | $11,097,500 | $11,097,500 | ' | ' | $862,500 |
Principal at Period End | 9,665,000 | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' | 150,000 | 150,000 | ' | ' | ' | ' | 1,770,000 | 1,770,000 | ' | ' | ' | ' | 160,000 | 160,000 | ' | ' | ' | ' | 200,000 | 200,000 | ' | ' | ' | ' | 100,000 | 100,000 | ' | ' | ' | ' | 4,520,000 | 4,520,000 | ' | ' | ' | ' | 1,200,000 | 1,200,000 | ' | ' | ' | ' | 1,490,000 | 1,490,000 | ' | ' | ' | ' | 9,665,000 | 9,665,000 | ' | ' | 75,000 |
Allocated Discount | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 135,600 | 135,600 | ' | ' | ' | ' | 1,916,480 | 1,916,480 | ' | ' | ' | ' | 44,024 | 44,024 | ' | ' | ' | ' | 55,030 | 55,030 | ' | ' | ' | ' | 27,515 | 27,515 | ' | ' | ' | ' | 1,243,681 | 1,243,681 | ' | ' | ' | ' | 526,400 | 526,400 | ' | ' | ' | ' | 935,720 | 935,720 | ' | ' | ' | ' | 4,884,450 | 4,884,450 | ' | ' | 0 |
Amortized Discount | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 135,600 | 135,600 | ' | ' | ' | ' | 1,916,480 | 1,916,480 | ' | ' | ' | ' | 44,024 | 44,024 | ' | ' | ' | ' | 55,030 | 55,030 | ' | ' | ' | ' | 27,515 | 27,515 | ' | ' | ' | ' | 1,243,681 | 1,243,681 | ' | ' | ' | ' | 526,400 | 526,400 | ' | ' | ' | ' | 935,720 | 935,720 | ' | ' | ' | ' | 4,884,450 | 4,884,450 | ' | ' | 0 |
Discount at Period End | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | 0 |
Carrying Amount at Period End | 9,665,000 | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' | 150,000 | 150,000 | ' | ' | ' | ' | 1,770,000 | 1,770,000 | ' | ' | ' | ' | 160,000 | 160,000 | ' | ' | ' | ' | 200,000 | 200,000 | ' | ' | ' | ' | 100,000 | 100,000 | ' | ' | ' | ' | 4,520,000 | 4,520,000 | ' | ' | ' | ' | 1,200,000 | 1,200,000 | ' | ' | ' | ' | 1,490,000 | 1,490,000 | ' | ' | ' | ' | 9,665,000 | 9,665,000 | ' | ' | 75,000 |
Short Term Related | 75,000 | 75,000 | ' | 0 | 75,000 | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 75,000 | 75,000 | ' | ' | 0 | 75,000 | ' |
Short Term Non Related | 75,000 | 75,000 | ' | 0 | 75,000 | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | 0 | 0 | 75,000 | 75,000 | ' | ' | 0 | 75,000 | ' |
Long Term Related | 775,000 | 465,000 | ' | 0 | 0 | ' | 0 | 150,000 | 150,000 | 0 | ' | ' | 1,770,000 | 1,770,000 | 0 | 0 | ' | ' | 0 | 160,000 | 160,000 | 0 | ' | ' | 0 | 0 | 200,000 | 200,000 | ' | ' | 0 | 0 | 100,000 | 100,000 | ' | ' | 4,505,000 | 4,505,000 | 15,000 | 15,000 | ' | ' | 1,100,000 | 1,100,000 | 100,000 | 100,000 | ' | ' | 1,440,000 | 1,440,000 | 50,000 | 50,000 | ' | ' | 8,815,000 | 9,125,000 | 775,000 | 465,000 | ' | ' | 0 | 0 | ' |
Long Term Non Related | $775,000 | $465,000 | ' | $0 | $0 | ' | $0 | $150,000 | $150,000 | $0 | ' | ' | $1,770,000 | $1,770,000 | $0 | $0 | ' | ' | $0 | $160,000 | $160,000 | $0 | ' | ' | $0 | $0 | $200,000 | $200,000 | ' | ' | $0 | $0 | $100,000 | $100,000 | ' | ' | $4,505,000 | $4,505,000 | $15,000 | $15,000 | ' | ' | $1,100,000 | $1,100,000 | $100,000 | $100,000 | ' | ' | $1,440,000 | $1,440,000 | $50,000 | $50,000 | ' | ' | $8,815,000 | $9,125,000 | $775,000 | $465,000 | ' | ' | $0 | $0 | ' |
Note_9_Convertible_Notes_Payab4
Note 9 - Convertible Notes Payable (Details) - Convertible Debt Maturity Payments (USD $) | Sep. 30, 2014 |
Note 9 - Convertible Notes Payable (Details) - Convertible Debt Maturity Payments [Line Items] | ' |
Total | $9,665,000 |
Convertible Debt [Member] | ' |
Note 9 - Convertible Notes Payable (Details) - Convertible Debt Maturity Payments [Line Items] | ' |
2014 | 75,000 |
2015 | 0 |
2016 | $9,590,000 |
Note_10_Fair_Value_Measurement2
Note 10 - Fair Value Measurement (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Note 10 - Fair Value Measurement (Details) [Line Items] | ' |
Goodwill, Other Changes (in Dollars) | $57,169 |
Minimum [Member] | ' |
Note 10 - Fair Value Measurement (Details) [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '3 years |
Maximum [Member] | ' |
Note 10 - Fair Value Measurement (Details) [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '15 years |
Note_10_Fair_Value_Measurement3
Note 10 - Fair Value Measurement (Details) - Fair Value of Liabilities Measured on a Recurring Basis (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | $5,288,028 | [1],[2] | $9,070,183 | [1] |
Conversion Feature Liability [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 0 | [1],[2] | 0 | [1] |
Conversion Feature Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 0 | [1],[2] | 0 | [1] |
Conversion Feature Liability [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 1,533,362 | [1],[2] | 3,126,206 | [1] |
Conversion Feature Liability [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 1,533,362 | [1],[2] | 3,126,206 | [1] |
Warrant Liability [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 0 | [1],[2] | 0 | [1] |
Warrant Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 0 | [1],[2] | 0 | [1] |
Warrant Liability [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 3,754,666 | [1],[2] | 5,943,977 | [1] |
Warrant Liability [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 3,754,666 | [1],[2] | 5,943,977 | [1] |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 0 | [1],[2] | 0 | [1] |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | 0 | [1],[2] | 0 | [1] |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Derivatives: (1) (2) | ' | ' | ||
Derivative liability fair value | $5,288,028 | [1],[2] | $9,070,183 | [1] |
[1] | The fair value at the measurement date is equal to their carrying value on the balance sheet | |||
[2] | The fair value of the derivative instruments was estimated using the Income Approach and the Black Scholes option pricing model with the following assumptions for the nine months ended September 30, 2014 |
Note_10_Fair_Value_Measurement4
Note 10 - Fair Value Measurement (Details) - Fair Value Assumptions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Risk free interest rate | 0.11% | ' |
Dividend yield | 0.00% | 0.00% |
Conversion Feature Liability [Member] | Minimum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Expected life | '1 year 3 months | '1 year |
Conversion Feature Liability [Member] | Maximum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Expected life | '1 year 6 months | '2 years |
Warrant Liability [Member] | Minimum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Expected life | '1 year 3 months | '1 year |
Warrant Liability [Member] | Maximum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Expected life | '2 years 6 months | '2 years 3 months |
Minimum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Risk free interest rate | ' | 0.12% |
Expected volatility | 124.60% | 166.70% |
Maximum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Risk free interest rate | ' | 0.13% |
Expected volatility | 178.80% | 217.10% |
Note_10_Fair_Value_Measurement5
Note 10 - Fair Value Measurement (Details) - Fair Value of Assets Aquired on Non-recurring Basis (Promasys B.V. [Member], Fair Value, Measurements, Nonrecurring [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Acquired assets (3) | ' | ' | ||
Promasys B.V. customer lists (4) | $117,103 | [1],[2] | $134,739 | [1],[2] |
Promasys B.V. software code (4) | 59,484 | [1],[2] | 70,512 | [1],[2] |
Promasys B.V. URLs/website (4) | 43,745 | [1],[2] | 64,991 | [1],[2] |
Total | 220,332 | [1] | 270,242 | [1] |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Acquired assets (3) | ' | ' | ||
Promasys B.V. customer lists (4) | 0 | [1],[2] | ' | |
Promasys B.V. software code (4) | 0 | [1],[2] | ' | |
Promasys B.V. URLs/website (4) | 0 | [1],[2] | ' | |
Total | 0 | [1] | ' | |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Acquired assets (3) | ' | ' | ||
Promasys B.V. customer lists (4) | 0 | [1],[2] | ' | |
Promasys B.V. software code (4) | 0 | [1],[2] | ' | |
Promasys B.V. URLs/website (4) | 0 | [1],[2] | ' | |
Total | 0 | [1] | ' | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Acquired assets (3) | ' | ' | ||
Promasys B.V. customer lists (4) | 136,253 | [1],[2] | ' | |
Promasys B.V. software code (4) | 72,943 | [1],[2] | ' | |
Promasys B.V. URLs/website (4) | 68,814 | [1],[2] | ' | |
Total | $278,010 | [1] | ' | |
[1] | The fair value of the acquired assets was estimated using the Income Approach with a discounted cash flow valuation methodology applied. | |||
[2] | The acquired Promasys B.V. software code, customer list and URLs/website are not measured on a recurring basis since their initial fair value has been deemed to have a finite life and is being amortized periodically. Instead the Company performs an impairment analysis on a quarterly basis in order to determine whether the carrying value of the assets reflects the fair value of the assets in a market based transaction. |
Note_10_Fair_Value_Measurement6
Note 10 - Fair Value Measurement (Details) - Fair Value of Goodwill (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Goodwill | $618,541 | $675,710 |
Fair Value, Inputs, Level 3 [Member] | Promasys B.V. [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | $618,541 | $675,710 |
Note_10_Fair_Value_Measurement7
Note 10 - Fair Value Measurement (Details) - Unrealized Gain or Loss Included in Earnings (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Unrealized Gain or Loss Included in Earnings [Abstract] | ' | ' |
The net amount of gains/(losses) for the period included in earnings attributable to the unrealized gain/(loss) from changes in derivative liabilities at the reporting date | $4,410,241 | ($2,524,671) |
Total unrealized gains/(losses) included in earnings | $4,410,241 | ($2,524,671) |
Note_10_Fair_Value_Measurement8
Note 10 - Fair Value Measurement (Details) - Change in Level 3 Financial Liabilities Fair Value (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Derivatives: | ' | ' |
Balance, Beginning of year | $9,070,183 | $8,574,921 |
Net Realized Gains/(Losses) | 0 | 0 |
Net Unrealized (gains)/losses relating to instruments still held at the reporting date | -4,410,241 | 95,121 |
Net purchases, issuances and settlements | 628,086 | 400,141 |
Net transfers in and/or out of Level 3 | 0 | 0 |
Balance, end of period | 5,288,028 | 9,070,183 |
Conversion Feature Liability [Member] | ' | ' |
Derivatives: | ' | ' |
Balance, Beginning of year | 3,126,206 | 2,287,323 |
Net Realized Gains/(Losses) | 0 | 0 |
Net Unrealized (gains)/losses relating to instruments still held at the reporting date | -1,592,844 | 838,883 |
Net purchases, issuances and settlements | 0 | 0 |
Net transfers in and/or out of Level 3 | 0 | 0 |
Balance, end of period | 1,533,362 | 3,126,206 |
Warrant Liability [Member] | ' | ' |
Derivatives: | ' | ' |
Balance, Beginning of year | 5,943,977 | 6,287,598 |
Net Realized Gains/(Losses) | 0 | 0 |
Net Unrealized (gains)/losses relating to instruments still held at the reporting date | -2,817,397 | -743,762 |
Net purchases, issuances and settlements | 628,086 | 400,141 |
Net transfers in and/or out of Level 3 | 0 | 0 |
Balance, end of period | $3,754,666 | $5,943,977 |
Note_11_Commitments_and_Contin2
Note 11 - Commitments and Contingencies (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Operating Leases, Rent Expense | $663,961 | $665,932 |
Patent Royalty Percentage Obligation | 2.00% | ' |
Other Expenses | $120,809 | $144,972 |
Note_11_Commitments_and_Contin3
Note 11 - Commitments and Contingencies (Details) - Future Minimum Lease Payments (USD $) | Sep. 30, 2014 |
Future Minimum Lease Payments [Abstract] | ' |
2014 | $169,095 |
2015 | 657,752 |
2016 | 369,825 |
2017 | 52,234 |
2018 | 5,354 |
Total | $1,254,260 |
Note_11_Commitments_and_Contin4
Note 11 - Commitments and Contingencies (Details) - Minimum Royalty Payments Per Year (USD $) | Sep. 30, 2014 |
Minimum Royalty Payments Per Year [Abstract] | ' |
2014 | $625,000 |
2015 | 450,000 |
2016 | 450,000 |
2017 | 450,000 |
Total | $1,975,000 |
Note_12_Related_Party_Transact1
Note 12 - Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 18, 2013 | Mar. 18, 2013 | Jan. 02, 2013 | Apr. 04, 2014 | Feb. 01, 2013 | Feb. 22, 2013 | Apr. 21, 2014 | Dec. 05, 2013 | Feb. 22, 2013 | Feb. 22, 2013 | Sep. 30, 2009 | Oct. 06, 2012 | Feb. 22, 2013 | Sep. 30, 2009 | Dec. 31, 2009 | Dec. 31, 2010 | Dec. 31, 2010 | Sep. 30, 2009 | Oct. 05, 2011 | Nov. 23, 2011 | Oct. 28, 2011 | 13-May-11 | Apr. 13, 2010 | Oct. 31, 2011 | Sep. 30, 2011 | Sep. 30, 2010 | Jun. 29, 2010 | Dec. 16, 2008 | Aug. 29, 2008 | Dec. 31, 2011 | Sep. 30, 2014 | Jan. 02, 2014 | Feb. 22, 2013 | Jan. 02, 2013 | Mar. 31, 2011 | Sep. 30, 2009 | Sep. 30, 2008 | Jun. 30, 2008 | Feb. 29, 2008 | Dec. 16, 2008 | Aug. 29, 2008 | Jul. 31, 2014 | Jul. 31, 2014 | Apr. 04, 2014 | Mar. 18, 2013 | Sep. 30, 2014 | Dec. 18, 2013 | |
Chief Technology Officer [Member] | Chief Technology Officer [Member] | Chief Technology Officer [Member] | Director [Member] | Director [Member] | Director [Member] | Chief Operating Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Convertible Debentures 12% [Member] | Convertible Debentures 10% [Member] | Promissory Note 8 [Member] | The Northern Trust Company [Member] | The Northern Trust Company [Member] | The Northern Trust Company [Member] | ||||||||
Promissory Note [Member] | Promissory Note [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Aggregated September 30, 2009 [Member] | Purchased From Chief Financial Officer [Member] | Convertible Debentures [Member] | Convertible Debentures [Member] | Aggregated December 31, 2009 [Member] | Issued December 31, 2010 [Member] | Issued December 31, 2010 2 [Member] | Aggregated September 30, 2009 [Member] | Former Director [Member] | Former Director [Member] | |||||||||||||||||||||||||||||||||||
Note 12 - Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,600,000 | ' | $980,000 | ' | $529,000 | $2,866,879 | ' | ' | ' | $150,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | 2.00% | 12.00% | ' | 12.00% | 10.00% | 12.00% | 10.00% | 12.00% | 12.00% | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 12.00% | ' | 12.00% | ' | 12.00% | 12.00% | ' | ' | ' | ' | 12.00% | 10.00% | ' | ' | 12.00% | ' | ' | ' |
Convertible Notes Payable | 9,665,000 | ' | 9,665,000 | ' | ' | ' | ' | ' | ' | 5,000 | 150,000 | 160,000 | 150,000 | 25,000 | ' | 125,000 | 4,475,000 | 4,350,000 | 1,440,000 | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,260,000 | ' | ' | ' | 1,770,000 | ' | ' | 1,770,000 | 4,200,000 | 510,000 | ' | 5,075,000 | 2,270,000 | 160,000 | 150,000 | ' | ' | ' | ' |
Due to Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,760,879 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,350,000 | 510,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | 0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,700,000 | 3,540,000 | 6,400,000 | ' | 3,920,000 | ' | 2,116,000 | 11,467,517 | ' | ' | ' | ' | 10,150,000 | 4,540,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.50 | ' | ' | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Number of Equity Instruments | ' | ' | 24,620,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants and Rights Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,760,000 | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' | $0.25 | ' | $0.25 | $0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Conversion, Original Debt, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,197,500 | 409,379 | ' | 130,000 | 60,000 | 123,000 | 96,000 | 450,000 | 82,000 | 342,000 | 695,000 | 115,000 | ' | ' | 767,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | 4,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | 4,000,000 |
Line of Credit Facility, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' |
Line of Credit Facility, Periodic Payment, Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,500 | ' | ' |
Long-term Line of Credit | 3,700,000 | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' |
Line of Credit Facility, Interest Rate at Period End | 2.25% | ' | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | ' |
Interest Expense, Related Party | $578,735 | $588,425 | $1,818,911 | $1,750,327 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_13_Stockholders_Deficit_D
Note 13 - Stockholders' (Deficit) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||
Sep. 30, 2014 | Jul. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jul. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jul. 31, 2014 | |
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Senior Management And Board Of Directors [Member] | ||||
Equity Incentive Plan 2009 [Member] | |||||||||||||
Note 13 - Stockholders' (Deficit) (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | 250,000,000 | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 230,000 | 230,000 | 747,500 | 747,500 | 250,000 | 250,000 | ' |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | ' | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ' |
Preferred Stock, Dividend Rate, Percentage | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | 91,504,659 | ' | 90,104,659 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Outstanding | 91,504,659 | ' | 90,104,659 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Outstanding | 48,463,517 | ' | 44,728,873 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Shares Issued | ' | ' | ' | 4,125,224 | ' | 4,125,224 | 0 | 0 | 0 | 0 | 250,000 | 250,000 | ' |
Preferred Stock, Shares Outstanding | ' | ' | ' | 4,125,224 | ' | 4,125,224 | 0 | 0 | 0 | 0 | 250,000 | 250,000 | ' |
Convertible Debt (in Dollars) | $9,665,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Number of Equity Instruments | 24,620,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Note_13_Stockholders_Deficit_D1
Note 13 - Stockholders' (Deficit) (Details) - Cumulative Arrearage of Undeclared Dividends (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Note 13 - Stockholders' (Deficit) (Details) - Cumulative Arrearage of Undeclared Dividends [Line Items] | ' | ' |
Preferred Stock, Dividend, Cumulative Arrearage | $4,616,691 | $4,410,430 |
Series A Preferred Stock [Member] | ' | ' |
Note 13 - Stockholders' (Deficit) (Details) - Cumulative Arrearage of Undeclared Dividends [Line Items] | ' | ' |
Preferred Stock, Dividend, Cumulative Arrearage | 2,534,711 | 2,328,450 |
Preferred Stock, Dividend, Cumulative Arrearage Per Share (in Dollars per share) | $0.61 | $0.56 |
Series B Preferred Stock [Member] | ' | ' |
Note 13 - Stockholders' (Deficit) (Details) - Cumulative Arrearage of Undeclared Dividends [Line Items] | ' | ' |
Preferred Stock, Dividend, Cumulative Arrearage | 609,887 | 609,887 |
Preferred Stock, Dividend, Cumulative Arrearage Per Share (in Dollars per share) | $3.05 | $3.05 |
Series C Preferred Stock [Member] | ' | ' |
Note 13 - Stockholders' (Deficit) (Details) - Cumulative Arrearage of Undeclared Dividends [Line Items] | ' | ' |
Preferred Stock, Dividend, Cumulative Arrearage | $1,472,093 | $1,472,093 |
Preferred Stock, Dividend, Cumulative Arrearage Per Share (in Dollars per share) | $4.37 | $4.37 |
Note_13_Stockholders_Deficit_D2
Note 13 - Stockholders' (Deficit) (Details) - Dividends Payable (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Series A Preferred Stock [Member] | ' | ' |
Dividends Payable [Line Items] | ' | ' |
Dividends accreted | $154,272 | $154,272 |
Divideds accreted per share | $0.04 | $0.04 |
Series B Preferred Stock [Member] | ' | ' |
Dividends Payable [Line Items] | ' | ' |
Dividends accreted | 0 | 0 |
Divideds accreted per share | $0 | $0 |
Series C Preferred Stock [Member] | ' | ' |
Dividends Payable [Line Items] | ' | ' |
Dividends accreted | $0 | $0 |
Divideds accreted per share | $0 | $0 |
Note_13_Stockholders_Deficit_D3
Note 13 - Stockholders' (Deficit) (Details) - Warrants (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Warrants Outstanding (in Shares) | 48,463,517 | 44,728,873 |
Number of Warrants Exercisable (in Shares) | 48,463,517 | ' |
Exercise Price Range $0.25 to $0.60 [Member] | Minimum [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Range of Exercise Price - Minimum | $0.25 | $0.25 |
Exercise Price Range $0.25 to $0.60 [Member] | Maximum [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Range of Exercise Price - Minimum | $0.60 | $0.60 |
Exercise Price Range $0.25 to $0.60 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Warrants Outstanding (in Shares) | 48,463,517 | 44,728,873 |
Weighted Average Remaining Contractual Life | '1 year 149 days | '2 years 18 days |
Weighted Average Exercise Price | $0.35 | $0.36 |
Number of Warrants Exercisable (in Shares) | 48,463,517 | 44,728,873 |
Weighted Average Exercise Price | $0.35 | $0.36 |
Note_13_Stockholders_Deficit_D4
Note 13 - Stockholders' (Deficit) (Details) - Warrants Activity (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Warrants Activity [Abstract] | ' |
Balance at December 31, 2013 | 44,728,873 |
Issued (in Dollars) | $3,920,000 |
Exercised | 0 |
Expired/forfeited | -185,356 |
Balance at September 30, 2014 | 48,463,517 |
Warrants exercisable at September 30, 2014 | 48,463,517 |
Weighted average fair value of warrants granted during 2014 (in Dollars) | $0.15 |
Note_13_Stockholders_Deficit_D5
Note 13 - Stockholders' (Deficit) (Details) - Accumulated Other Comprehensive Gain (Loss) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Gain (Loss) [Abstract] | ' | ' | ' | ' | ' |
Foreign Currency Translation | ' | ' | ($87,604) | ($69,092) | ($69,092) |
Accumulated other comprehensive income (loss) | ' | ' | -87,604 | -69,092 | -69,092 |
Foreign Currency Translation | -86,887 | -3,006 | -110,839 | -30,485 | -18,512 |
Accumulated other comprehensive income (loss) | -86,887 | -3,006 | -110,839 | -30,485 | -18,512 |
Foreign Currency Translation | -198,443 | ' | -198,443 | ' | -87,604 |
Accumulated other comprehensive income (loss) | ($198,443) | ' | ($198,443) | ' | ($87,604) |
Note_14_Employee_Equity_Incent2
Note 14 - Employee Equity Incentive Plans (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | |
Note 14 - Employee Equity Incentive Plans (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,681,500 | ' | 5,745,000 | 10,452,500 |
Proceeds from Stock Options Exercised (in Dollars) | $0 | $0 | ' | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense (in Dollars) | 0 | 0 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $0.16 | $0.17 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | $39,697 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 73 days | ' | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Note 14 - Employee Equity Incentive Plans (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,625,000 | ' | ' | ' |
Maximum [Member] | Equity Incentive Plan 2009 [Member] | ' | ' | ' | ' |
Note 14 - Employee Equity Incentive Plans (Details) [Line Items] | ' | ' | ' | ' |
Stock Option Grant Term | '10 years | ' | ' | ' |
Equity Incentive Plan 2009 [Member] | ' | ' | ' | ' |
Note 14 - Employee Equity Incentive Plans (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 7,500,000 | ' | ' | ' |
Stock Option Expiration Term | '5 years | ' | ' | ' |
Vesting Percentage Year 1 | 50.00% | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,902,500 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 972,500 | ' | ' | ' |
Stock Incentive Plan 1998 [Member] | ' | ' | ' | ' |
Note 14 - Employee Equity Incentive Plans (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 12,500,000 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 779,000 | ' | ' | ' |
Note_14_Employee_Equity_Incent3
Note 14 - Employee Equity Incentive Plans (Details) - Stock Option Activity (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option Activity [Abstract] | ' | ' | ' |
Number of shares | 5,745,000 | ' | 10,452,500 |
Weighted average exercise price (per share) | $0.29 | ' | $0.36 |
Weighted average remaining contractual term (in years) | '1 year 127 days | '1 year 255 days | '1 year 248 days |
Aggregate intrinsic value | $115,650 | $93,945 | $149,598 |
Vested and exercisable at September 30, 2014 | 4,281,500 | ' | ' |
Vested and exercisable at September 30, 2014 | $0.23 | ' | ' |
Vested and exercisable at September 30, 2014 | '1 year 36 days | ' | ' |
Vested and exercisable at September 30, 2014 | $108,475 | ' | ' |
Number of shares | 150,000 | 350,000 | ' |
Weighted average exercise price (per share) | $0.16 | $0.17 | ' |
Number of shares | 0 | -100,000 | ' |
Weighted average exercise price (per share) | $0 | $0.18 | ' |
Number of shares | -1,213,500 | -4,957,500 | ' |
Weighted average exercise price (per share) | $0.54 | $0.42 | ' |
Number of shares | 4,681,500 | 5,745,000 | ' |
Weighted average exercise price (per share) | $0.23 | $0.29 | ' |
Note_14_Employee_Equity_Incent4
Note 14 - Employee Equity Incentive Plans (Details) - Vested Shares (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Vested Shares [Abstract] | ' | ' |
Number of options vested | 570,834 | 593,833 |
Fair value of options vested | $66,389 | $62,204 |
Note_14_Employee_Equity_Incent5
Note 14 - Employee Equity Incentive Plans (Details) - Stock Options Oustanding (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Strike Price Range Lower Limit | $0.05 | ' |
Strike Price Range Upper Limit | $0.64 | ' |
Strike Price Range 0.00 to 0.20 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Strike Price Range Lower Limit | $0 | $0 |
Strike Price Range Upper Limit | $0.20 | $0.20 |
Outstanding Stock Options (in Shares) | 3,302,500 | 3,251,000 |
Weighted Average Remaining Contractual Life | '1 year 200 days | '2 years 58 days |
Weighted Average Outstanding Strike Price | $0.15 | $0.15 |
Vested Stock Options (in Shares) | 2,952,500 | 2,530,166 |
Weighted Average Remianing Vested Life | '1 year 3 months | '1 year 313 days |
Weighted Average Vested Strike Price | $0.15 | $0.16 |
Strike Price Range 0.21 to 0.29 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Strike Price Range Lower Limit | $0.21 | $0.21 |
Strike Price Range Upper Limit | $0.29 | $0.29 |
Outstanding Stock Options (in Shares) | 600,000 | 750,000 |
Weighted Average Remaining Contractual Life | '1 year 65 days | '1 year 233 days |
Weighted Average Outstanding Strike Price | $0.24 | $0.25 |
Vested Stock Options (in Shares) | 550,000 | 650,000 |
Weighted Average Remianing Vested Life | '346 days | '1 year 73 days |
Weighted Average Vested Strike Price | $0.25 | $0.25 |
Strike Price Range 0.30 to 0.49 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Strike Price Range Lower Limit | $0.30 | $0.30 |
Strike Price Range Upper Limit | $0.49 | $0.49 |
Outstanding Stock Options (in Shares) | 80,000 | 110,000 |
Weighted Average Remaining Contractual Life | '83 days | '357 days |
Weighted Average Outstanding Strike Price | $0.38 | $0.38 |
Vested Stock Options (in Shares) | 80,000 | 110,000 |
Weighted Average Remianing Vested Life | '83 days | '357 days |
Weighted Average Vested Strike Price | $0.38 | $0.38 |
Strike Price Range 0.50 to 0.70 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Strike Price Range Lower Limit | $0.50 | $0.50 |
Strike Price Range Upper Limit | $0.70 | $0.70 |
Outstanding Stock Options (in Shares) | 699,000 | 1,634,000 |
Weighted Average Remaining Contractual Life | '248 days | '317 days |
Weighted Average Outstanding Strike Price | $0.55 | $0.59 |
Vested Stock Options (in Shares) | 699,000 | 1,634,000 |
Weighted Average Remianing Vested Life | '248 days | '317 days |
Weighted Average Vested Strike Price | $0.55 | $0.59 |
Strike Price Range 0.00 to 0.70 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Strike Price Range Lower Limit | $0 | $0 |
Strike Price Range Upper Limit | $0.70 | $0.70 |
Outstanding Stock Options (in Shares) | 4,681,500 | 5,745,000 |
Weighted Average Remaining Contractual Life | '1 year 127 days | '1 year 255 days |
Weighted Average Outstanding Strike Price | $0.23 | $0.29 |
Vested Stock Options (in Shares) | 4,281,500 | 4,924,166 |
Weighted Average Remianing Vested Life | '1 year 36 days | '1 year 153 days |
Weighted Average Vested Strike Price | $0.23 | $0.32 |
Note_14_Employee_Equity_Incent6
Note 14 - Employee Equity Incentive Plans (Details) - Fair Value Assumptions of Share-Based Payments | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value Assumptions of Share-Based Payments [Abstract] | ' | ' |
Risk-free interest rate | 0.93% | 0.70% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 199.00% | 203.40% |
Expected life of options (in years) | '5 years | '5 years |
Note_14_Employee_Equity_Incent7
Note 14 - Employee Equity Incentive Plans (Details) - Weighted Average Grant Date Fair Value Activity (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Weighted Average Grant Date Fair Value Activity [Abstract] | ' | ' |
Stock options granted during the nine month period ended September 30, | $0.16 | $0.17 |
Stock options vested during the nine month period ended September 30, | $0.12 | $0.10 |
Stock options forfeited during the nine month period ended September 30, | $0.43 | $0.28 |
Note_14_Employee_Equity_Incent8
Note 14 - Employee Equity Incentive Plans (Details) - Status of Non-Vested Shares (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Status of Non-Vested Shares [Abstract] | ' | ' |
Nonvested shares at January 1, 2014 | 400,000 | 820,834 |
Nonvested shares at January 1, 2014 | $0.16 | $0.13 |
Nonvested shares at September 30, 2014 | 400,000 | 820,834 |
Nonvested shares at September 30, 2014 | $0.16 | $0.13 |
Note_15_Income_Taxes_Details
Note 15 - Income Taxes (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Operating Loss Carryforwards | $54,089,558 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $1,267,477 |
Note_15_Income_Taxes_Details_R
Note 15 - Income Taxes (Details) - Reconciliation of Income Tax Expense (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Reconciliation of Income Tax Expense [Abstract] | ' | ' | ' | ' |
Federal statutory rate applied to income/(loss) before income taxes | ' | ' | $165,693 | ($1,662,692) |
Current tax expense | ' | ' | 35,407 | 48,599 |
Non deductible expenses | ' | ' | -1,482,741 | 1,144,767 |
Change in deferred assets | ' | ' | 49,571 | 37,086 |
Change in valuation allowance | ' | ' | 1,267,477 | 480,839 |
Income tax expense | $1,446 | $30,869 | $35,407 | $48,599 |
Note_15_Income_Taxes_Details_T
Note 15 - Income Taxes (Details) - The Components of Income Tax Expense (Benefit) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Note 15 - Income Taxes (Details) - The Components of Income Tax Expense (Benefit) [Line Items] | ' | ' | ' | ' |
Current tax expense | ' | ' | $35,407 | $48,599 |
Deferred tax expense/(benefit): | ' | ' | ' | ' |
Deferred tax expense (benefit) | ' | ' | -1,267,477 | -480,839 |
Valuation allowance | ' | ' | 1,267,477 | 480,839 |
Total tax expense | 1,446 | 30,869 | 35,407 | 48,599 |
Bad Debt Allowance [Member] | ' | ' | ' | ' |
Deferred tax expense/(benefit): | ' | ' | ' | ' |
Deferred tax expense (benefit) | ' | ' | -28,837 | 13,106 |
Operating Loss Carryforward [Member] | ' | ' | ' | ' |
Deferred tax expense/(benefit): | ' | ' | ' | ' |
Deferred tax expense (benefit) | ' | ' | -1,288,211 | -531,031 |
Amortization of Intangibles [Member] | ' | ' | ' | ' |
Deferred tax expense/(benefit): | ' | ' | ' | ' |
Deferred tax expense (benefit) | ' | ' | 4,111 | 0 |
Patent Litigation Settlement [Member] | ' | ' | ' | ' |
Deferred tax expense/(benefit): | ' | ' | ' | ' |
Deferred tax expense (benefit) | ' | ' | $45,460 | $37,086 |
Note_15_Income_Taxes_Details_D
Note 15 - Income Taxes (Details) - Deferred Taxes Assets and Liabilities (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Deferred Taxes Assets and Liabilities [Abstract] | ' | ' |
Amortization of intangibles | $279,587 | $283,698 |
Bad debt allowance | 52,452 | 17,608 |
Patent litigation liability accrual | 269,948 | 349,596 |
Operating loss carryforwards | 19,508,693 | 17,887,001 |
Gross deferred tax assets | 20,110,680 | 18,537,903 |
Valuation allowance | -20,110,680 | -18,537,903 |
Net deferred tax liability/(asset) | $0 | $0 |
Note_16_Subsequent_Events_Deta
Note 16 - Subsequent Events (Details) (USD $) | Sep. 30, 2014 | Oct. 07, 2014 |
Subsequent Event [Member] | ||
Note 16 - Subsequent Events (Details) [Line Items] | ' | ' |
Repayments of Lines of Credit | ' | $200,000 |
Long-term Line of Credit | $3,700,000 | $3,500,000 |