Document_and_Entity_Informatio
Document and Entity Information | 15 Months Ended |
Mar. 31, 2014 | |
Document And Entity Information | ' |
Entity Registrant Name | 'VIEW SYSTEMS INC |
Entity Central Index Key | '0001075857 |
Document Type | 'S-1 |
Document Period End Date | 31-Mar-14 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Is Entity a Well-known Seasoned Issuer? | 'No |
Is Entity a Voluntary Filer? | 'No |
Is Entity's Reporting Status Current? | 'Yes |
Entity Filer Category | 'Smaller Reporting Company |
Balance_Sheets_annual
Balance Sheets - annual (Annual Member, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash | $53,078 | $107,181 |
Accounts receivable | 46,424 | 41,675 |
Inventory | 24,109 | 142,065 |
Prepaid expenses | 32,889 | 109,062 |
Total current assets | 156,500 | 399,983 |
Property and Equipment (Net) | 10,392 | 16,150 |
Other Assets | ' | ' |
Prepaid expenses (non-current portion) | ' | 27,266 |
Deposits | 2,872 | 2,872 |
Total other assets | 2,872 | 30,138 |
Total assets | 169,764 | 446,271 |
Accounts payable and accrued expenses | 357,803 | 681,197 |
Deferred compensation | 124,190 | 28,102 |
Accrued and withheld payroll taxes payable | 170,509 | 155,886 |
Accrued interest payable | 43,125 | 54,885 |
Accrued royalties payable | 225,000 | 225,000 |
Loans from stockholders | 251,054 | 199,173 |
Notes payable | 126,116 | 197,058 |
Stock settlement payable | ' | 124,578 |
Deferred revenue | 121,975 | 215,976 |
Total current liabilities | 1,419,772 | 1,881,855 |
Long-term portion of notes payable | 46,098 | 76,231 |
Total liabilities | 1,465,870 | 1,958,086 |
Convertible preferred stock, authorized 10,000,000 shares, $.001 par value, Issued and outstanding 3,489,647 Issued and outstanding 2,989,647 | 3,490 | 2,990 |
Common stock, authorized 950,000,000 shares, $.001 par value,Issued and outstanding 222,399,749 Issued and outstanding 170,421,178 | 222,399 | 170,421 |
Stock settlement in process | ' | -124,578 |
Common stock issuable | 538,720 | 267,000 |
Additional paid in capital | 25,550,331 | 23,775,297 |
Accumulated deficit | -27,611,046 | -25,602,945 |
Total stockholders' deficit | -1,296,106 | -1,511,815 |
Total Liabilities and Stockholders' Deficit | $169,764 | $446,271 |
Balance_Sheets
Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' | ' | ' |
Cash | $13,101 | $53,078 | $13,897 | $107,181 |
Accounts receivable | 67,150 | 46,424 | ' | ' |
Inventory | 10,954 | 24,109 | ' | ' |
Prepaid expenses | ' | 32,889 | ' | ' |
Total current assets | 91,205 | 156,500 | ' | ' |
Property and Equipment (Net) | 8,792 | 10,392 | ' | ' |
Other Assets | ' | ' | ' | ' |
Deposits | 2,872 | 2,872 | ' | ' |
Total other assets | 2,872 | 2,872 | ' | ' |
Total assets | 102,869 | 169,764 | ' | ' |
Current Liabilities | ' | ' | ' | ' |
Accounts payable and accrued expenses | 504,689 | 357,803 | ' | ' |
Deferred compensation | 180,395 | 124,190 | ' | ' |
Accrued and withheld payroll taxes payable | 167,550 | 170,509 | ' | ' |
Accrued interest payable | 50,625 | 43,125 | ' | ' |
Accrued royalties payable | 225,000 | 225,000 | ' | ' |
Loans from stockholders | 287,855 | 251,054 | ' | ' |
Notes payable | 114,544 | 126,116 | ' | ' |
Deferred revenue | 135,670 | 121,975 | ' | ' |
Total current liabilities | 1,666,328 | 1,419,772 | ' | ' |
Long-Term Liabilities | ' | ' | ' | ' |
Long-term portion of notes payable | 39,158 | 46,098 | ' | ' |
Total liabilities | 1,705,486 | 1,465,870 | ' | ' |
Stockholders' Deficit | ' | ' | ' | ' |
Convertible preferred stock, authorized 10,000,000 shares, $.001 par value, Issued and outstanding 3,489,647 | 3,490 | 3,490 | ' | ' |
Common stock, authorized 950,000,000 shares, $.001 par value, Issued and outstanding 248,030,860 at March 31, 2014 and Issued and outstanding 222,399,749 at Deceember 31, 2013 | 248,030 | 222,399 | ' | ' |
Common stock issuable | 16,000 | 538,720 | ' | ' |
Additional paid in capital | 26,119,920 | 25,550,331 | ' | ' |
Accumulated deficit | -27,990,057 | -27,611,046 | ' | ' |
Total stockholders' deficit | -1,602,617 | -1,296,106 | ' | ' |
Total Liabilities and Stockholders' Deficit | $102,869 | $169,764 | ' | ' |
Balance_Sheets_Parenthetical_a
Balance Sheets (Parenthetical) - annual (Annual Member, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred Stock Shares Par Value | $0.00 | $0.00 |
Preferred Stock Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock Shares Issued | 3,489,647 | 2,989,647 |
Preferred Stock Shares Outstanding | 3,489,647 | 2,989,647 |
Common Stock Shares Par Value | $0.00 | $0.00 |
Common Stock Shares Authorized | 950,000,000 | 950,000,000 |
Common Stock Shares Issued | 222,399,749 | 170,421,178 |
Common Stock Shares Outstanding | 222,399,749 | 170,421,178 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2007 |
Statement of Financial Position [Abstract] | ' | ' | ' | ' |
Preferred Stock Shares Par Value | $0.00 | $0.00 | ' | ' |
Preferred Stock Shares Authorized | 10,000,000 | 10,000,000 | ' | ' |
Preferred Stock Shares Issued | 3,489,647 | 3,489,647 | 89,647 | ' |
Preferred Stock Shares Outstanding | 3,489,647 | 3,489,647 | ' | 7,171,725 |
Common Stock Shares Par Value | $0.00 | $0.00 | ' | ' |
Common Stock Shares Authorized | 950,000,000 | 950,000,000 | ' | ' |
Common Stock Shares Issued | 248,030,860 | 222,399,749 | ' | ' |
Common Stock Shares Outstanding | 248,030,860 | 222,399,749 | ' | ' |
Statements_of_Operations_annua
Statements of Operations- annual (Annual Member, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | ' | ' |
Products sales and installation | $460,653 | $745,852 |
Revenue from extended warranties | 90,040 | 104,604 |
Total revenue | 550,693 | 850,456 |
Cost of sales | 317,242 | 420,543 |
Gross profit | 233,451 | 429,913 |
Operating expenses | ' | ' |
General and administrative | 341,390 | 361,393 |
Professional fees | 1,037,204 | 623,352 |
Salaries and benefits | 368,555 | 312,180 |
Total operating expenses | 1,747,149 | 1,296,925 |
Loss from operations | -1,513,698 | -867,012 |
Other income (expense) | ' | ' |
Gain from on renegotiated debt | 43,561 | 41,010 |
Stock-based compensation expense | -450,000 | ' |
Bad debt | -7,848 | ' |
Interest expense | -80,116 | -62,020 |
Total other income (expense) | -494,403 | -21,010 |
Net loss | ($2,008,101) | ($888,022) |
Net loss per share (basic and diluted) | ($0.01) | ($0.01) |
Weighted average shares outstanding (basic and diluted) | 194,843,005 | 157,505,068 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues | ' | ' |
Products sales and installation | $53,917 | $320,741 |
Revenue from extended warranties | 36,356 | 17,489 |
Total revenue | 90,273 | 338,230 |
Cost of sales | 19,071 | 197,490 |
Gross profit | 71,202 | 140,740 |
Operating expenses | ' | ' |
General and administrative | 60,576 | 55,849 |
Professional fees | 280,737 | 89,386 |
Salaries and benefits | 100,019 | 67,488 |
Total operating expenses | 441,332 | 212,733 |
Loss from operations | -370,130 | -71,993 |
Other income (expense) | ' | ' |
Stock compensation expense | ' | -450,000 |
Interest expense | -8,881 | -12,894 |
Total other income (expense) | 8,881 | 462,894 |
Net loss | ($379,011) | ($534,887) |
Net loss per share (basic and diluted) | $0 | $0 |
Weighted average shares outstanding (basic and diluted) | 244,557,551 | 173,621,178 |
Statements_of_Cash_Flows_annua
Statements of Cash Flows- annual (Annual Member, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net loss | ($2,008,101) | ($888,022) |
Depreciation | 12,597 | 14,976 |
Common stock issued/issuable in payment of services | 585,438 | ' |
Preferred stock issued in payment of services | 225,000 | 44,297 |
Stock option expense | 450,000 | ' |
Bad debt | 7,848 | ' |
(Gain) loss from renegotiated debt | -43,561 | -41,010 |
Interest expense paid with stock | 16,133 | 15,000 |
Accounts receivable | -12,597 | 36,547 |
Inventories | 117,956 | 19,284 |
Prepaid expenses | ' | 29,100 |
Accounts payable and accrued expenses | -188,953 | 211,811 |
Deferred compensation | 96,088 | -47,411 |
Payroll taxes accrued and withheld | 14,623 | 18,490 |
Accrued interest | 36,960 | 27,045 |
Deferred revenue | -94,001 | -182,102 |
Net cash used in operating activities | -784,570 | -262,599 |
Additions to fixed assets | -6,839 | ' |
Proceeds from sales of common stock | 518,000 | 322,500 |
Proceeds from issuable common stock | 217,500 | ' |
Proceeds/payments from stockholders loans | 31,806 | 49,006 |
Principal payments on notes payable | -30,000 | -30,767 |
Net cash provided by financing activities | 737,306 | 340,739 |
(Decrease) increase in cash | -54,103 | 78,140 |
Cash at beginning of period | 107,181 | 29,041 |
Cash at end of period | 53,078 | 107,181 |
Interest | 910 | 680 |
Income Taxes | ' | ' |
Notes payable paid down with common stock issuable | 111,000 | ' |
Accrued interest paid with issuable common stock | 48,720 | 60,000 |
Loans from stockholders paid with common stock | 17,500 | 15,000 |
Accounts payable and accrued expense paid with common stock | 90,900 | 137,001 |
Accounts payable paid with issuable stock | ' | 10,104 |
Stock settlement payable | '124,578 | '   — |
Issuance of common stock issuable | 267,000 | ' |
Notes payable paid by shareholder | 35,075 | ' |
Common stock issued for prepayment of services | 20,000 | 285,000 |
Preferred stock issued for prepayment of services | ' | 118,125 |
Deferred compensation paid with common stock | ' | $43,338 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($379,011) | ($534,887) |
Depreciation | 1,600 | 2,882 |
Common stock issued/issuable in payment of services | 80,389 | 57,266 |
Stock option expense | ' | 450,000 |
Interest expense paid with debt | 1,321 | ' |
(Increase) decrease in cash from: | ' | ' |
Accounts receivable | -20,726 | -91,639 |
Inventories | 13,155 | 113,296 |
Accounts payable and accrued expenses | 146,886 | -104,226 |
Deferred compensation | 56,205 | 36,670 |
Payroll taxes accrued and withheld | -2,959 | 8,433 |
Accrued interest | 7,500 | 10,980 |
Deferred revenue | 13,695 | -86,474 |
Net cash used in operating activities | -81,945 | -137,699 |
Cash flows from financing activities: | ' | ' |
Proceeds from sales of common stock | 25,000 | 35,000 |
Proceeds/payments from stockholders loans | 29,040 | 16,861 |
Principal payments on notes payable | -12,072 | -7,446 |
Net cash provided by financing activities | 41,968 | 44,415 |
Decrease in cash | -39,977 | -93,284 |
Cash at beginning of period | 53,078 | 107,181 |
Cash at end of period | 13,101 | 13,897 |
Cash paid for: | ' | ' |
Interest | 60 | ' |
Income Taxes | ' | ' |
Non-Cash Investing and Financing Activities: | ' | ' |
Loans from stockholders paid with common stock | ' | 7,500 |
Issuance of common stock issuable | 522,720 | 267,000 |
Notes payable paid by shareholder | $6,440 | ' |
Shareholders_Equity_annual
Shareholders Equity- annual (USD $) | Preferred Stock | Common Stock | Stock Issuable | Settlement In Progress | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit |
Beginning Balance, Value (Annual Member) | $1,490 | $131,179 | ' | ($124,578) | $22,820,075 | ($24,714,923) |
Beginning Balance, Shares (Annual Member) | 1,489,647 | 131,179,400 | ' | ' | ' | ' |
Stock issued for cash, Shares (Annual Member) | ' | 16,152,778 | ' | ' | ' | ' |
Stock issued for cash, Value (Annual Member) | ' | 16,153 | ' | ' | 306,347 | ' |
Stock issued in payment of services, accounts payable, deferred compensation and accrued interest, Shares (Annual Member) | ' | 23,089,000 | ' | ' | ' | ' |
Stock issued in payment of services, accounts payable, deferred compensation and accrued interest , Value (Annual Member) | ' | 23,089 | ' | ' | 488,912 | ' |
Stock issued in payment of services and accounts payable, Shares (Annual Member) | 1,500,000 | ' | ' | ' | ' | ' |
Stock issued in payment of services and accounts payable, Value (Annual Member) | 1,500 | ' | ' | ' | 159,963 | ' |
Common stock issuable (Annual Member) | ' | ' | 267,000 | ' | ' | ' |
Net loss for the period (Annual Member) | ' | ' | ' | ' | ' | -888,022 |
Ending Balance, Value (Annual Member) | 2,990 | 170,421 | 267,000 | -124,578 | 23,775,297 | -25,602,945 |
Ending Balance, Shares (Annual Member) | 2,989,647 | 170,421,178 | ' | ' | ' | ' |
Issuance of prior period issuable stock, Value (Annual Member) | ' | 12,000,000 | -267,000 | ' | 255,000 | ' |
Stock issued for cash, Shares (Annual Member) | ' | 20,866,667 | ' | ' | ' | ' |
Stock issued for cash, Value (Annual Member) | ' | 20,867 | ' | ' | 497,133 | ' |
Stock issued in payment of services and accounts payable, Shares (Annual Member) | ' | 13,111,904 | ' | ' | ' | ' |
Stock issued in payment of services and accounts payable, Value (Annual Member) | ' | 13,111 | ' | ' | 314,889 | ' |
Stock issued in payment of shareholder loans, Shares (Annual Member) | ' | 1,500,000 | ' | ' | ' | ' |
Stock issued in payment of shareholder loans, Value (Annual Member) | ' | 1,500 | ' | ' | 6,000 | ' |
Stock issued in payment of accounts payable, Shares (Annual Member) | ' | 4,500,000 | ' | ' | 86,400 | ' |
Stock issued in payment of accounts payable, Value (Annual Member) | ' | 4,500 | ' | ' | ' | ' |
Stock issued for services, Shares (Annual Member) | 500,000 | ' | ' | ' | ' | ' |
Stock issued for services, Value (Annual Member) | 500 | ' | ' | ' | 224,500 | ' |
Stock compensation (Annual Member) | ' | ' | ' | ' | 450,000 | ' |
Stock settlement (Annual Member) | ' | ' | ' | 124,578 | -58,888 | ' |
Common stock issuable (Annual Member) | ' | ' | 538,720 | ' | ' | ' |
Net loss for the period (Annual Member) | ' | ' | ' | ' | ' | -2,008,101 |
Ending Balance, Value (Annual Member) | $3,490 | $222,399 | $538,720 | ' | $25,550,331 | ($27,611,046) |
Ending Balance, Shares (Annual Member) | 3,489,647 | 222,399,749 | ' | ' | ' | ' |
1_NATURE_OF_OPERATIONS_AND_SUM
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - annual | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Nature of Operations | |||||||||||||||
View Systems, Inc. (the “Company”) designs, develops and sells computer software and hardware used in conjunction with surveillance capabilities. The technology utilizes the compression and decompression of digital inputs. In March 2002, the Company acquired Milestone Technology, Inc., which has developed a concealed weapons detection portal. In July 2009, the Company acquired FibreXpress, Inc., which is a company that specializes in developing and selling equipment and components for the fiber optic and communication cable industries. | |||||||||||||||
Basis of Consolidation | |||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Milestone Technology, Inc. and FibreXpress, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||
Use of Estimates | |||||||||||||||
Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from the estimates that were used. | |||||||||||||||
Accounts Receivable | |||||||||||||||
Accounts receivable consists of amounts due from customers. Management periodically reviews the open accounts and makes a determination as to the ultimate collectability of each account. Once it is determined that collection is in doubt the account is written off as a bad debt. In order to provide for accounts that may become uncollectible in the future, the Company has established an allowance for doubtful accounts. The balance of the allowance for doubtful accounts is based on management’s judgment and the Company’s prior experience with managing accounts receivable. | |||||||||||||||
The Company recognized bad debt expense of $7,848 and $0 for the years ended December 31, 2013 and 2012, respectively. Management’s determination is that the remaining balance is collectible and therefore no allowance for possible uncollectible accounts receivable has been recorded for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||
Revenue Recognition | |||||||||||||||
The Company has three main products, namely the concealed weapons detection system, the visual first responder system and the Viewmaxx digital video system. In all cases revenue is considered earned when the product is shipped to the customer, installed (if necessary) and accepted by the customer as a completed sale. The concealed weapons detection system and the digital video system each require installation and training. The customer can engage us for installation and training, which is a revenue source separate and apart from the sale of the product. In those cases revenue is recognized at the completion of the installation and training and acceptance by the customer. However, the customer can also self-install or can engage another firm to provide installation and training. Each product has an unconditional 30 day warranty, during which time the product can be returned for a complete refund. Customers can purchase extended warranties, which provide for replacement or repair of the unit beyond the period provided by the unconditional warranty. Warranties can be purchased for various periods but generally they are for one year period that begins after any other warranties expire. The revenue from warranties is recognized on a straight line bases over the period covered by the warranty. Prior to the issuance of financial statements management reviews any returns subsequent to the end of the accounting period which are from sales recognized during the accounting period, and makes appropriate adjustments as necessary. Product prices are fixed or determinable and products are only shipped when collectability is reasonably assured. | |||||||||||||||
Inventories | |||||||||||||||
Inventories are stated at the lower of cost or market. Cost is determined by the last-in-first-out method (LIFO). As of December 31, 2013 and 2012 the Company’s inventory consisted of a number of assembled units as well as unassembled parts of the product. | |||||||||||||||
Property and Equipment | |||||||||||||||
Property and equipment is recorded at cost and depreciated over their useful lives, using the straight-line and accelerated depreciation methods. Upon sale or retirement, the cost and related accumulated depreciation are eliminated from the respective accounts, and the resulting gain or loss is included in the results of operations. The useful lives of property and equipment for purposes of computing depreciation are as follows: | |||||||||||||||
Equipment | 5-7 years | ||||||||||||||
Software tools | 3 years | ||||||||||||||
Repairs and maintenance charges which do not increase the useful lives of assets are charged to operations as incurred. Depreciation expense for the periods ended December 31, 2013 and 2012 amounted to $12,597 and $14,976, respectively. | |||||||||||||||
Income Taxes | |||||||||||||||
Income taxes are recorded under the assets and liabilities method whereby deferred tax assets and liabilities are recognized for the future tax consequences, measured by enacted tax rates, attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the rate change becomes effective. Valuation allowances are recorded for deferred tax assets when it is more likely than not that such deferred tax assets will not be realized. | |||||||||||||||
The Company files income tax returns in the U.S. federal jurisdictions, and in various state jurisdictions. The Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years prior to 2010. The company policy is to recognize interest related to unrecognized tax benefits as income tax expense. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. | |||||||||||||||
Research and Development | |||||||||||||||
Research and development costs are expensed as incurred. | |||||||||||||||
Advertising | |||||||||||||||
Advertising costs are charged to operations as incurred. Advertising costs for the periods ended December 31, 2013 and 2012 were $11,497 and $10,808, respectively. | |||||||||||||||
Nonmonetary Transactions | |||||||||||||||
Nonmonetary transactions are accounted for in accordance with ASC 845 “ Nonmonetary Transactions” which requires the transfer or distribution of a nonmonetary asset or liability to be based generally, on the fair value of the asset or liability that is received or surrendered, whichever is more clearly evident. | |||||||||||||||
Financial Instruments | |||||||||||||||
For most financial instruments, including cash, accounts receivable, accounts payable and accruals, management believes that the carrying amount approximates fair value, as the majority of these instruments are short-term in nature. | |||||||||||||||
Stock-Based Compensation | |||||||||||||||
We account for share-based compensation at fair value. Share-based compensation cost for stock options granted to employees, board members and service providers is determined at the grant date using an option pricing model that uses level 3 unobservable inputs. The value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service period. | |||||||||||||||
Net Loss Per Common Share | |||||||||||||||
Basic net loss per common share is computed by dividing net loss available to common stockholder by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares and dilutive potential common share equivalents then outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and warrants in addition to shares that may be issued in the event that convertible debt is exchanged for shares of common stock. The calculation of the net loss per share available to common stockholders for the periods ended December 31, 2013 and 2012 does not include potential shares of common stock equivalents, as their impact would be antidilutive. The following reconciles amounts reported in the financial statements: | |||||||||||||||
Net Loss | Shares | Per-share | |||||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||||
Year ended December 31, 2013 | $ | (2,008,101 | ) | $ | 194,843,005 | $ | (0.01 | ) | |||||||
Year ended December 31, 2012 | $ | (888,022 | ) | $ | 157,505,608 | $ | (0.01 | ) |
1_NATURE_OF_OPERATIONS_AND_SUM1
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations | |
View Systems, Inc. (the “Company”) designs, develops and sells computer software and hardware used in conjunction with surveillance capabilities. The technology utilizes the compression and decompression of digital inputs. In March 2002, the Company acquired Milestone Technology, Inc., which has developed a concealed weapons detection portal. In July 2009, the Company acquired FiberXpress, Inc., which is a company that specializes in developing and selling equipment and components for the fiber optic and communication cable industries. | |
Basis of Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, FiberXpress, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | |
Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from the estimates that were used. | |
Accounts Receivable | |
Accounts receivable consists of amounts due from customers. Management periodically reviews the open accounts and makes a determination as to the ultimate collectability of each account. Once it is determined that collection is in doubt the account is written off as a bad debt. In order to provide for accounts that may become uncollectible in the future, the Company has established an allowance for doubtful accounts. The balance of the allowance for doubtful accounts is based on management’s judgment and the Company’s prior experience with managing accounts receivable. | |
The Company recognized bad debt expense of $0 and $0 for the periods ended March 31, 2014 and 2013, respectively. Management’s determination that the remaining balance is collectible and therefore no allowance for possible uncollectible accounts receivable has been recorded for the period ended March 31, 2014 and for the year ended December 31, 2013. | |
Revenue Recognition | |
The Company has three main products, namely the concealed weapons detection system, the visual first responder system and the Viewmaxx digital video system. In all cases revenue is considered earned when the product is shipped to the customer, installed (if necessary) and accepted by the customer as a completed sale. The concealed weapons detection system and the digital video system each require installation and training. The customer can engage us for installation and training, which is a revenue source separate and apart from the sale of the product. In those cases revenue is recognized at the completion of the installation and training and acceptance by the customer. However, the customer can also self-install or can engage another firm to provide installation and training. Each product has an unconditional 30 day warranty, during which time the product can be returned for a complete refund. Customers can purchase extended warranties, which provide for replacement or repair of the unit beyond the period provided by the unconditional warranty. Warranties can be purchased for various periods but generally they are for one year period that begins after any other warranties expire. The revenue from warranties is recognized on a straight line bases over the period covered by the warranty. Prior to the issuance of financial statements management reviews any returns subsequent to the end of the accounting period which are from sales recognized during the accounting period, and makes appropriate adjustments as necessary. Product prices are fixed or determinable and products are only shipped when collectability is reasonably assured. | |
Inventories | |
Inventories are stated at the lower of cost or market. Cost is determined by the last-in-first-out method (LIFO). As of March 31, 2014 and December 31, 2013 the Company’s inventory consisted of assembled units as well as unassembled parts of products. | |
Property and Equipment | |
Property and equipment is recorded at cost and depreciated over their useful lives, using the straight-line and accelerated depreciation methods. Upon sale or retirement, the cost and related accumulated depreciation are eliminated from the respective accounts, and the resulting gain or loss is included in the results of operations. The useful lives of property and equipment for purposes of computing depreciation are as follows: | |
Equipment 5-7 years | |
Software tools 3 years | |
Depreciation expense for the periods ended March 31, 2014 and 2013 amounted to $1,600 and $2,882, respectively. | |
Stock-Based Compensation | |
We account for share-based compensation at fair value. Share-based compensation cost for stock options granted to employees, board members and service providers is determined at the grant date using an option pricing model that uses level 3 unobservable inputs. The value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service period. | |
Income Taxes | |
Income taxes are recorded under the assets and liabilities method whereby deferred tax assets and liabilities are recognized for the future tax consequences, measured by enacted tax rates, attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the rate change becomes effective. Valuation allowances are recorded for deferred tax assets when it is more likely than not that such deferred tax assets will not be realized. | |
The Company files income tax returns in the U.S. federal jurisdictions, and in various state jurisdictions. The Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years prior to 2009. the company policy is to recognize interest related to unrecognized tax benefits as income tax expense. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. | |
Net Loss Per Common Share | |
Basic net loss per common share is computed by dividing net loss available to common stockholder by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares and dilutive potential common share equivalents then outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and warrants in addition to shares that may be issued in the event that convertible debt is exchanged for shares of common stock. The calculation of the net loss per share available to common stockholders for the periods ended March 31, 2014 and 2013 does not include potential shares of common stock equivalents, as their impact would be antidilutive. |
2_GOING_CONCERN_annual
2. GOING CONCERN- annual | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Annual Member | ||
2. GOING CONCERN | ' | ' |
2. GOING CONCERN | 2. GOING CONCERN | |
The Company has incurred and continues to incur, losses from operations. For the periods ended March 31, 2014 and 2013, the Company incurred net losses of $379,011 and $534,88, respectively. In addition, certain notes payable have come due and the Company is in default. | The Company has incurred and continues to incur, losses from operations. For the years ended December 31, 2013 and 2012, the Company incurred net losses of $2,008,101 and $888,022, respectively. In addition, certain notes payable have come due and the note holders are demanding payment. | |
Management is actively working to cure these situations and has implemented major plans for the future growth and development of the Company. Management is in the process of renegotiating more favorable repayment terms on the notes payable and the Company anticipates that these negotiations will result in extended payment plans. In addition, during 2014 and 2013, the Company implemented marketing and information strategies to increase public awareness of its products and thereby sales. It has established new international markets which it believes will be the source for sales growth in the very near future. It also was able to reduce the per-unit cost of manufacturing its products. Additionally, the Company has increased the efficiency of its processes and focused its development efforts on products that appear to have greater sales potential. | Management is very actively working to cure these situations. It has implemented major plans to for the future growth and development of the Company. Management is in the process of renegotiating more favorable repayment terms on the notes payable and the Company anticipates that these negotiations will result in extended payment plans. In addition, during 2013 and 2012, the Company implemented marketing and information strategies to increase public awareness of its products and thereby sales. It has established new international markets which it believes will be the source for sales growth in the very near future. It also was able to reduce the per-unit cost of manufacturing its products. Additionally, the Company has increased the efficiency of its processes and focused its development efforts on products that appear to have greater sales potential. | |
Historically, the Company has financed its operations primarily through private financing. It is management’s intention to finance operations during the remainder of 2014 primarily through increased sales although there will still be a need for additional equity financing. In addition, management is actively seeking out mergers and acquisitions which would be beneficial to the future growth of the Company. There can be no assurance, however, that this financing will be successful and the Company may be required to further reduce expenses and scale back operations. | Historically, the Company has financed its operations primarily through private financing. It is management’s intention to finance operations during the remainder of 2014 primarily through increased sales although there will still be a need for additional equity financing. In addition, management is actively seeking out mergers and acquisitions which would be beneficial to the future growth of the Company. There can be no assurance, however, that this financing will be successful and the Company may be required to further reduce expenses and scale back operations. | |
As previously noted the Company is currently in default on a $50,000 loan from a stockholder. | As previously noted the Company is currently in default on a $50,000 loan from a stockholder. | |
The consolidated financial statements presented above and the accompanying Notes have been prepared on a going concern basis, which contemplates the realization of assets and discharge of liabilities in the normal course of business for the foreseeable future, and does not include any adjustments to reflect possible future effects on the recoverability and classification of assets, or the amounts and classification of liabilities that may result from the outcome of any extraordinary regulatory action, which would affect our ability to continue as a going concern. | The consolidated financial statements presented above and the accompanying Notes have been prepared on a going concern basis, which contemplates the realization of assets and discharge of liabilities in the normal course of business for the foreseeable future, and does not include any adjustments to reflect possible future effects on the recoverability and classification of assets, or the amounts and classification of liabilities that may result from the outcome of any extraordinary regulatory action, which would affect our ability to continue as a going concern. | |
Due to the conditions and events discussed above, there is substantial doubt about the Company’s ability to continue as a going concern. | Due to the conditions and events discussed above, there is substantial doubt about the Company’s ability to continue as a going concern. |
2_GOING_CONCERN
2. GOING CONCERN | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
2. GOING CONCERN | ' |
2. GOING CONCERN | |
The Company has incurred and continues to incur, losses from operations. For the periods ended March 31, 2014 and 2013, the Company incurred net losses of $379,011 and $534,88, respectively. In addition, certain notes payable have come due and the Company is in default. | |
Management is actively working to cure these situations and has implemented major plans for the future growth and development of the Company. Management is in the process of renegotiating more favorable repayment terms on the notes payable and the Company anticipates that these negotiations will result in extended payment plans. In addition, during 2014 and 2013, the Company implemented marketing and information strategies to increase public awareness of its products and thereby sales. It has established new international markets which it believes will be the source for sales growth in the very near future. It also was able to reduce the per-unit cost of manufacturing its products. Additionally, the Company has increased the efficiency of its processes and focused its development efforts on products that appear to have greater sales potential. | |
Historically, the Company has financed its operations primarily through private financing. It is management’s intention to finance operations during the remainder of 2014 primarily through increased sales although there will still be a need for additional equity financing. In addition, management is actively seeking out mergers and acquisitions which would be beneficial to the future growth of the Company. There can be no assurance, however, that this financing will be successful and the Company may be required to further reduce expenses and scale back operations. | |
As previously noted the Company is currently in default on a $50,000 loan from a stockholder. | |
The consolidated financial statements presented above and the accompanying Notes have been prepared on a going concern basis, which contemplates the realization of assets and discharge of liabilities in the normal course of business for the foreseeable future, and does not include any adjustments to reflect possible future effects on the recoverability and classification of assets, or the amounts and classification of liabilities that may result from the outcome of any extraordinary regulatory action, which would affect our ability to continue as a going concern. | |
Due to the conditions and events discussed above, there is substantial doubt about the Company’s ability to continue as a going concern. |
3_NEW_ACCOUNTING_PRONOUNCEMENT
3. NEW ACCOUNTING PRONOUNCEMENTS- annual (Annual Member) | 12 Months Ended |
Dec. 31, 2013 | |
Annual Member | ' |
3. NEW ACCOUNTING PRONOUNCEMENTS | ' |
3. NEW ACCOUNTING PRONOUNCEMENTS | |
The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. The Company has reviewed the recently issued pronouncements and concluded that there are no new accounting standards are applicable to the Company. | |
3_NEW_ACCOUNTING_PRONOUNCEMENT1
3. NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
3. NEW ACCOUNTING PRONOUNCEMENTS | ' |
3. NEW ACCOUNTING PRONOUNCEMENTS | |
The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. The Company has reviewed the recently issued pronouncements and concluded that there are no new accounting standards are applicable to the Company. |
4_NOTES_PAYABLE_annual
4. NOTES PAYABLE- annual | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||
Annual Member | ||||||||||||||||||
4. NOTES PAYABLE | ' | ' | ||||||||||||||||
4. NOTES PAYABLE | 4. NOTES PAYABLE | |||||||||||||||||
Notes payable as of March 31, 2014 and December 31, 2013 consists of the following: | Notes payable as of December 31, 2013 and December 31, 2012 consists of the following: | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | 2013 | 2012 | |||||||||||||||
Stockholder | ||||||||||||||||||
An unsecured loan from a stockholder which is payable on demand with interest at 12%. The note was dated November 1, 2007 and the note matures and the principal is payable upon the demand of the lender. The note was paid in full during 2013 primarily through the issuance of common stock issuable. | $ | — | $ | 116,000 | ||||||||||||||
Lafayette Community Bank | 66,156 | 72,596 | ||||||||||||||||
A term loan secured by a stockholder, payable in monthly installments of $2,587 commencing in December 25, 2009 but refinanced in May 2011. The loan is due in full on May 18, 2016. Interest accrues monthly at 7.5% per annum. | Investor | |||||||||||||||||
Stockholder | 50,000 | 50,000 | An unsecured loan from an investor, payable in monthly installments of $5,000 commencing July 1, 2013 until paid in full. The loan bears no interest and is the amount due as a result of a settlement of the stock settlement payable mentioned below. | 45,000 | — | |||||||||||||
Demand loan payable with interest at 5% per month. The loan is secured by the Company’s accounts receivable. The note payable matured on December 17, 2009 at which the debt became due and payable and therefore the loan is currently in default. | ||||||||||||||||||
Investor | 35,000 | 45,000 | Lafayette Community Bank | |||||||||||||||
An unsecured loan from an investor, payable in monthly installments of $5,000 commencing July 1, 2013 until paid in full. The loan bears no interest and is the amount due as a result of a settlement of the stock settlement payable mentioned below. | A term loan secured by a stockholder, payable in monthly installments of $2,587 commencing in December 25, 2009 but refinanced in May 2011. The loan is due in full on May 18, 2016 and interest accrues monthly at 7.5% per annum. | 72,596 | 97,185 | |||||||||||||||
Chase | 2,546 | 4,618 | ||||||||||||||||
A secured loan to finance the purchase of a truck, payable monthly in installments of $533, which includes interest at 5.34% per annum. | Stockholder | |||||||||||||||||
TOTAL | $ | 153,702 | $ | 172,214 | Demand loan payable with interest at 5% per month dated September 18, 2009. The loan is secured by the Company’s accounts receivable. The note was payable in full on December 17, 2009 so this debt is currently in default. | 50,000 | 50,000 | |||||||||||
Less current portion | 114,544 | 126,116 | Chase | |||||||||||||||
Equipment loan to finance the purchases of a truck, payable monthly in installments of $533, which include interest at 5.34% per annum. | 4,618 | 10,104 | ||||||||||||||||
Non-current portion | $ | 39,158 | $ | 46,098 | ||||||||||||||
TOTAL | 172,214 | 273,289 | ||||||||||||||||
Principal payments for the next five years ending March 31: | Less current portion | 126,116 | 197,058 | |||||||||||||||
2015 | $ | 114,544 | Non-current portion | $ | 46,098 | $ | 76,231 | |||||||||||
2016 | 29,093 | |||||||||||||||||
2017 | 10,065 | Principal payments for the next five years: | ||||||||||||||||
Thereafter | 0 | |||||||||||||||||
TOTAL | $ | 153,702 | 2014 | $ | 126,116 | |||||||||||||
2015 | 28,555 | |||||||||||||||||
2016 | 17,543 | |||||||||||||||||
Thereafter | — | |||||||||||||||||
TOTAL | $ | 172,214 |
4_NOTES_PAYABLE
4. NOTES PAYABLE | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
4. NOTES PAYABLE | ' | ||||||||
4. NOTES PAYABLE | |||||||||
Notes payable as of March 31, 2014 and December 31, 2013 consists of the following: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Lafayette Community Bank | 66,156 | 72,596 | |||||||
A term loan secured by a stockholder, payable in monthly installments of $2,587 commencing in December 25, 2009 but refinanced in May 2011. The loan is due in full on May 18, 2016. Interest accrues monthly at 7.5% per annum. | |||||||||
Stockholder | 50,000 | 50,000 | |||||||
Demand loan payable with interest at 5% per month. The loan is secured by the Company’s accounts receivable. The note payable matured on December 17, 2009 at which the debt became due and payable and therefore the loan is currently in default. | |||||||||
Investor | 35,000 | 45,000 | |||||||
An unsecured loan from an investor, payable in monthly installments of $5,000 commencing July 1, 2013 until paid in full. The loan bears no interest and is the amount due as a result of a settlement of the stock settlement payable mentioned below. | |||||||||
Chase | 2,546 | 4,618 | |||||||
A secured loan to finance the purchase of a truck, payable monthly in installments of $533, which includes interest at 5.34% per annum. | |||||||||
TOTAL | $ | 153,702 | $ | 172,214 | |||||
Less current portion | 114,544 | 126,116 | |||||||
Non-current portion | $ | 39,158 | $ | 46,098 | |||||
Principal payments for the next five years ending March 31: | |||||||||
2015 | $ | 114,544 | |||||||
2016 | 29,093 | ||||||||
2017 | 10,065 | ||||||||
Thereafter | 0 | ||||||||
TOTAL | $ | 153,702 |
5_INCOME_TAXES_annual
5. INCOME TAXES- annual | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||
Annual Member | ||||||||||
INCOME TAXES | ' | ' | ||||||||
5. INCOME TAXES | INCOME TAXES | |||||||||
For income tax purposes the Company has net operating loss carry forwards of $26,158,000 as of December 31, 2013 that may be used to offset future taxable income. In the instance of future corporate acquisitions, the net operating losses may be used to offset the future taxable income of a qualifying subsidiary corporation which meets IRS regulations governing such situations. The losses have accumulated since 1998 and they will start to expire in 2018. IRS regulations also provide that significant changes in ownership (greater that 50%) could result in the expiration of some of the net operating loss carry forwards. As of the date of this report the Company has not made an analysis of the changes in ownership to determine if any of these losses have expired. Due to the continuous losses from operations the Company has assigned a full valuation allowance against its deferred tax assets. | For income tax purposes the Company has net operating loss carry forwards of approximately $20 million as of December 31, 2013 that may be used to offset future taxable income. In the instance of future corporate acquisitions, the net operating losses may be used to offset the future taxable income of a qualifying subsidiary corporation which meets IRS regulations governing such situations. The losses have accumulated since 1998 and they will start to expire in 2018. IRS regulations also provide that significant changes in ownership (greater than 50%) could result in the expiration of some of the net operating loss carry forwards. As of the date of this report the Company has not made an analysis of the changes in ownership to determine of any of these losses have expired. | |||||||||
The components of the net deferred tax asset as of December 31, 2013 are as follows: | ||||||||||
Effect of net operating loss carry forward | $ | 10,986,000 | ||||||||
Less evaluation allowance | (10,986,000 | ) | ||||||||
Net deferred tax asset | $ | — | ||||||||
The components of income tax expense (benefit) are as follows: | ||||||||||
Year ended | ||||||||||
31-Dec | 31-Dec | |||||||||
2013 | 2012 | |||||||||
Net loss per financial statements which approximates net loss | ||||||||||
per income tax returns | $ | (2,008,101 | ) | $ | (88,022 | ) | ||||
Income tax expense (benefit) applying prevailing | ||||||||||
Federal and state income tax rates | (843,400 | ) | (373,000 | ) | ||||||
Less valuation allowance | 843,400 | 373,000 | ||||||||
Net income tax expense | $ | — | $ | — | ||||||
Net income tax benefit is not recognized at this time because there is no reasonable expectation that the benefit will be realized in the future. | ||||||||||
The Company has adopted accounting rules that prescribe when to recognize and how to measure the financial statement effects, if any, of income tax positions taken or expected on its income tax returns. These new rules require management to evaluate the likelihood that, upon examination by relevant taxing jurisdictions, those income tax positions would be sustained. | ||||||||||
Based on that evaluation, if it were more than fifty percent (50%) probable that a material amount of income tax would be imposed at the entity level upon examination by the relevant taxing authorities, a liability would be recognized in the accompanying balance sheet along with any interest and penalties that would result from that assessment. Should any such penalties and interest be incurred, the Company’s policy would be to recognize them as operating expenses. | ||||||||||
Due to continuous losses from operations the Company has assigned a full valuation allowance against its deferred tax assets. |
5_INCOME_TAXES
5. INCOME TAXES | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
5. INCOME TAXES | ' |
5. INCOME TAXES | |
For income tax purposes the Company has net operating loss carry forwards of $26,158,000 as of December 31, 2013 that may be used to offset future taxable income. In the instance of future corporate acquisitions, the net operating losses may be used to offset the future taxable income of a qualifying subsidiary corporation which meets IRS regulations governing such situations. The losses have accumulated since 1998 and they will start to expire in 2018. IRS regulations also provide that significant changes in ownership (greater that 50%) could result in the expiration of some of the net operating loss carry forwards. As of the date of this report the Company has not made an analysis of the changes in ownership to determine if any of these losses have expired. Due to the continuous losses from operations the Company has assigned a full valuation allowance against its deferred tax assets. | |
6_CONVERTIBLE_PREFERRED_STOCK_
6. CONVERTIBLE PREFERRED STOCK- annual (Annual Member) | 12 Months Ended |
Dec. 31, 2013 | |
Annual Member | ' |
6. CONVERTIBLE PREFERRED STOCK | ' |
6. CONVERTIBLE PREFERRED STOCK | |
In July 2005 the Company issued 7,171,725 shares of Series A Preferred Stock in payment of services. The issuance had been previously authorized by the Board of Directors. Each share of Series A Preferred Stock has a liquidation preference, in the event of liquidation of the corporation, of $0.001 per share before any payment or distribution is made to the holders of common stock. | |
During 2008 the Board of Directors approved a reverse split of the stock in which one new share of preferred stock was issued in exchange for each 80 shares of stock outstanding. Accordingly, the total issued of preferred stock was adjusted from 7,171,725 shares to 89,647 shares. The par value and the total authorized shares did not change. | |
Effective in 2010 the initial issuance of preferred of Series A Preferred can be converted into common stock in the ratio of 15:1. During 2011 the Board of Directors authorized the issuance of an additional 1,400,000 shares of Series A Preferred Stock in payment of a loan from a shareholder in the amount of $64,000 and also in payment of services in the amount of $34,000. These additional shares can be converted to common stock in 2013. Each share is entitled to fifteen votes and shall be entitled to vote on any matters brought to a vote on the common stock shareholder. | |
During 2012 the Board of Directors authorized the issuance of an additional 1,500,000 shares of Series A Preferred Stock in payment of deferred compensation and current compensation in the amount of $161,463. | |
During 2013 the Board of Directors authorized the issuance of an additional 500,000 shares of Series A Preferred Stock in payment of professional services in the amount of $225,000. |
6_PREFERRED_STOCK
6. PREFERRED STOCK | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
6. PREFERRED STOCK | ' |
6. PREFERRED STOCK | |
In July 2005 the Company issued 7,171,725 shares of Series A Preferred Stock in payment of services. The issuance had been previously authorized by the Board of Directors. Each share of Series A Preferred Stock has a liquidation preference, in the event of liquidation of the corporation, of $0.001 per share before any payment or distribution is made to the holders of common stock. | |
During 2008 the Board of Directors approved a reverse split of the stock in which one new share of preferred stock was issued in exchange for each 80 shares of stock outstanding. Accordingly, the total issued of preferred stock was adjusted from 7,171,725 shares to 89,647 shares. The par value and the total authorized shares did not change. | |
Effective in 2010 the initial issuance of preferred of Series A Preferred can be converted into common stock in the ratio of 15:1. During 2011 the Board of Directors authorized the issuance of an additional 1,400,000 shares of Series A Preferred Stock in payment of a loan from a shareholder in the amount of $64,000 and also in payment of services in the amount of $34,000. These additional shares can be converted to common stock in 2013. Each share is entitled to fifteen votes and shall be entitled to vote on any matters brought to a vote on the common stock shareholder. | |
During 2012 the Board of Directors authorized the issuance of an additional 1,500,000 shares of Series A Preferred Stock in payment of deferred compensation and current compensation of $161,463. | |
During 2013 the Board of Directors authorized the issuance of an additional 500,000 shares of Series A Preferred Stock in payment of services of $225,000. |
7_OPERATING_LEASE_annual
7. OPERATING LEASE- annual (Annual Member) | 12 Months Ended |
Dec. 31, 2013 | |
Annual Member | ' |
7. OPERATING LEASE | ' |
7. OPERATING LEASE | |
The Company leases 3,600 sq. ft. of office and warehouse space at 1550 Caton Center Drive, Suites D and E, Baltimore, Maryland, under a non-cancellable operating lease which expires in December 2014. The original base rent was $3,077 per month with a 3% annual rent escalator clause.The current monthly rent is $3,464. Rent expense, which includes the Caton Center property as well as some other short-term leases, was $44,652and $45,941 for the periods ended December 31, 2013 and 2012, respectively. |
7_OPERATING_LEASE
7. OPERATING LEASE | 3 Months Ended |
Mar. 31, 2014 | |
Leases [Abstract] | ' |
7. OPERATING LEASE | ' |
7. OPERATING LEASE | |
The Company leases 3,600 sq. ft. of office and warehouse space at 1550 Caton Center Drive, Suites D and E, Baltimore, Maryland, under a non-cancellable operating lease which expires in December 2014. The original base rent was $3,077 per month with a 3% annual rent escalator clause. The current monthly rent is $3,464. Rent expense, which includes the Caton Center property as well as some other short-term leases, was $10,477 and $13,145 for the periods ended March 31, 2014 and 2013, respectively. |
8_STOCK_BASED_COMPENSATION_ann
8. STOCK BASED COMPENSATION- annual (Annual Member) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Annual Member | ' | ||||||||||||||||||
8. STOCK BASED COMPENSATION | ' | ||||||||||||||||||
8. STOCK BASED COMPENSATION | |||||||||||||||||||
During the periods ended December 31, 2012 and 2011 the Company granted restricted stock to independent contractors and consultants for payment of services. | |||||||||||||||||||
On April 2, 2010 the Company adopted its 2010 Equity Incentive Plan. Reserved for equity issuances under the Equity Incentive Plan are 50,000,000 shares of our common stock. During 2011 14,116,433 shares of common stock were issued under the provisions of the 2010 Equity Incentive Plan for which $92,065 of expenses were recognized. | |||||||||||||||||||
On June 1, 2010 the Company adopted its 2010 Service Provider Stock Compensation Plan. Reserved for equity issuances under the Service Provider Stock Compensation Plan are 50,000,000 shares of our common stock. No equity issuances were made during the reporting period from the 2010 Service Provider Stock Compensation Plan. | |||||||||||||||||||
During 2013 and 2012, the Company issued the following compensatory shares outside of its existing Stock Option and Restricted Share Plans at the discretion of the Board of Directors: | |||||||||||||||||||
For the year ended December 31, 2013 13,111,904 shares of common stock were issued in payment of expenses and prepaid expenses amounting to $328,000. | |||||||||||||||||||
For the year ended December 31, 2012 14,250,000 shares of common stock were issued in payment of expenses and prepaid expenses amounting to $285,000. | |||||||||||||||||||
For the year ended December 31, 2012 1, 500,000 shares of preferred stock were issued in payment of expenses and liabilities amounting to $161,463. | |||||||||||||||||||
In addition, 4,500,000 shares of common stock were issued during 2013 in payment of accounts payable of $90,900 and another 1,500,000 shares of common stock were issued in payment of notes payable of $7,500. | |||||||||||||||||||
In addition, shares of common stock were issued in 2012 in payment of accounts payable amounting to $28,500, in payment of accrued compensation of $108,501, in payment of notes payable of $15,000 and accrued interest of $75,000. | |||||||||||||||||||
Independent contractors and consultants’ expense was based on the estimated value of services rendered or the value of the common stock issued, if more reliably determined. | |||||||||||||||||||
Stock Options and Warrants | |||||||||||||||||||
On April 2, 2010, the Company adopted its 2010 Equity Incentive Plan, which authorized, among other forms of incentives, the issuance of stock options. Reserved for equity issuances under the 2010 Equity Incentive Plan are 50,000,000 shares of our common stock. No equity issuances have been made from the 2010 Equity Incentive Plan. Stock options, which may be tax qualified and non-qualified, are exercisable for a period of up to ten years at prices at or above market prices as established on the date of the grant. | |||||||||||||||||||
Stock Options | |||||||||||||||||||
Certain nonqualified stock options were issued during the year ended December 31, 2013 to a member of the board of directors as compensation for services performed. | |||||||||||||||||||
Weighted | Weighted Average | Aggregate | |||||||||||||||||
Number of | Average | Remaining | Intrinsic | ||||||||||||||||
Options | Exercise Price | Contractual Life | Value | ||||||||||||||||
Outstanding at January 1, 2013 | — | $ | — | — | $ | — | |||||||||||||
Granted | 15,000,000 | $ | 0.03 | 4.14 | $ | — | |||||||||||||
Exercised | — | $ | — | — | $ | — | |||||||||||||
Forfeited | (5,000,000 | ) | $ | — | — | $ | — | ||||||||||||
Outstanding at December 31, 2013 | 10,000,000 | $ | 0.03 | 4.14 | $ | — | |||||||||||||
Exercisable at December 31, 2013 | 10,000,000 | $ | 0.03 | 4.14 | $ | — | |||||||||||||
The Company uses the Black-Scholes option pricing model to calculate the fair value of options. Significant assumptions used in this model include: | |||||||||||||||||||
Year ended | |||||||||||||||||||
31-Dec | 31-Dec | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Annual Dividend | — | NA | |||||||||||||||||
Expected Life (in years) | 5 | NA | |||||||||||||||||
Risk Free Interest Rate | 0.78 | % | NA | ||||||||||||||||
Expected Volatility | 325.25 | % | NA | ||||||||||||||||
The 10,000,000 options granted for the year ended December 31, 2013 had a weighted average grant date fair value of $0.03. |
8_STOCK_BASED_COMPENSATION
8. STOCK BASED COMPENSATION | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
8. STOCK BASED COMPENSATION | ' | ||||||||||||||||||
8. STOCK BASED COMPENSATION | |||||||||||||||||||
During the periods ended March 31, 2014 and 2013 the Company issued stock in payment of services and debts as follows: | |||||||||||||||||||
For the three month period ended March 31, 2014 the Board authorized the issuance of 2,000,000 shares of common stock in payment of services amounting to $47,500. In addition, 23,631,111 shares were issued during 2014 for stock shown as issuable as of December 31, 2013. | |||||||||||||||||||
For the three month period ended March 31, 2013, 1,000,000 shares of common stock were issued in payment of services in the amount of $30,000. In addition, 1,500,00 shares were issued in payment of loans in the amount $7,500. In both instances, although authorized prior to March 31, 2013, the shares were not issued until April 2013. | |||||||||||||||||||
Independent contractors and consultants’ expense was based on the value of services rendered or the value of the common stock issued, if more reliably determined. | |||||||||||||||||||
Stock Options and Warrants | |||||||||||||||||||
On April 2, 2010, the Company adopted its 2010 Equity Incentive Plan, which authorized, among other forms of incentives, the issuance of stock options. Reserved for equity issuances under the 2010 Equity Incentive Plan are 50,000,000 shares of our common stock. No equity issuances have been made from the 2010 Equity Incentive Plan. Stock options, which may be tax qualified and non-qualified, are exercisable for a period of up to ten years at prices at or above market prices as established on the date of the grant. | |||||||||||||||||||
Stock Options | |||||||||||||||||||
Certain nonqualified stock options were issued during the period ended March 31, 2013 to a member of the board of directors as compensation for services performed. | |||||||||||||||||||
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||
Outstanding at January 1, 2013 | 10,000,000 | $ | 0.03 | 4.14 | $ | — | |||||||||||||
Granted | — | — | — | — | |||||||||||||||
Exercised | — | — | — | ||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||
Outstanding | 10,000,000 | $ | 0.03 | 3.88 | $ | — | |||||||||||||
Exercisable | 10,000,000 | $ | 0.03 | 3.88 | $ | — | |||||||||||||
The Company uses the Black-Scholes option pricing model to calculate the fair value of options. |
9_RELATED_PARTY_TRANSACTIONS_a
9. RELATED PARTY TRANSACTIONS- annual | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Annual Member | ||
9. RELATED PARTY TRANSACTIONS | ' | ' |
9. RELATED PARTY TRANSACTIONS | 9. RELATED PARTY TRANSACTIONS | |
During the periods reflected on this report certain shareholders made cash advances to the Company to help with short-term working capital needs. The net proceeds from stockholders with unstructured payment plans amounted to $29,040 and $31,806 for the period ended March 31, 2014 and for the year ended December 31, 2013, respectively. The total balance due on unstructured loans from shareholders amount to $287,855 and $251,054 at March 31, 2014 and December 31, 2013, respectively. Loans from stockholders made with repayment terms are included in Notes Payable and described above. | During the periods reflected on this report certain shareholders made cash advances to the Company to help with short-term working capital needs. The net proceeds from stockholders with unstructured payment plans amounted to $31,806 and 49,006 for the years ended December 31, 2013 and 2012, respectively. The total balance due on unstructured loans from shareholders amounted to $251,054 and $199,173 at December 31, 2013 and 2012, respectively. Loans from stockholders made with repayment terms are described in Note 4 above. | |
Also, please see Note 13 regarding a contingent liability payable to the Company’s CEO in the case of an occurrence of certain events relating to a significant change of control. | During the year ended December 31, 2013 a Board member provided professional services to the Company for which he was paid $25,000 in cash and awarded 7,113,333 shares of common stock with a value of $173,500. Of the total shares 1,680,000 were issued subsequent to December 31, 2013 and are reflected on the financial statements as issuable common stock. | |
During the period ended March 31, 2014 and Board member accrued fees for professional services to the Company in the amount of $45,000 which were paid subsequent to March 31, 2014. | During the year ended December 31, 2012 the Company’s Chief Executive Officer was issued 1,000,000 shares of convertible preferred stock as a payment for compensation accrued during 2012 and 2011 in the amount of $43,338. He was also issued 1,839,000 shares of common stockas a payment for compensation accrued during 2011 and 2012 in the amount of $108,501. In addition, in December 2012 the Board of Directors authorized the issuance of 8,000,000 shares of common stock to the Chief Executive Officer as payment for compensation accrued during 2011 and 2012 in the amount of $160,000. These shares were issued subsequent to December 31, 2012 and are reflected on the financial statements as issuable common stock. | |
During the year ended December 31, 2013 a Board member provided professional services to the Company for which he was paid $25,000 in cash and awarded 7,113,333 shares of common stock with a value of $173,500. Of the total shares 1,680,000 were issued subsequent to December 31, 2013 and are reflected on the financial statements as issuable common stock. |
9_RELATED_PARTY_TRANSACTIONS
9. RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
9. RELATED PARTY TRANSACTIONS | ' |
9. RELATED PARTY TRANSACTIONS | |
During the periods reflected on this report certain shareholders made cash advances to the Company to help with short-term working capital needs. The net proceeds from stockholders with unstructured payment plans amounted to $29,040 and $31,806 for the period ended March 31, 2014 and for the year ended December 31, 2013, respectively. The total balance due on unstructured loans from shareholders amount to $287,855 and $251,054 at March 31, 2014 and December 31, 2013, respectively. Loans from stockholders made with repayment terms are included in Notes Payable and described above. | |
Also, please see Note 13 regarding a contingent liability payable to the Company’s CEO in the case of an occurrence of certain events relating to a significant change of control. | |
During the period ended March 31, 2014 and Board member accrued fees for professional services to the Company in the amount of $45,000 which were paid subsequent to March 31, 2014. | |
During the year ended December 31, 2013 a Board member provided professional services to the Company for which he was paid $25,000 in cash and awarded 7,113,333 shares of common stock with a value of $173,500. Of the total shares 1,680,000 were issued subsequent to December 31, 2013 and are reflected on the financial statements as issuable common stock. |
10_STOCK_SETTLEMENT_IN_PROCESS
10. STOCK SETTLEMENT IN PROCESS- annual | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Annual Member | ||
10. STOCK SETTLEMENT IN PROCESS | ' | ' |
10. STOCK SETTLEMENT IN PROCESS | 10. STOCK SETTLEMENT IN PROCESS | |
During 2006 the Company negotiated a loan from an individual in the amount of $100,000. Under the terms of the loan it was to be repaid in full within one year together with interest at the rate of 15% per annum. The Company was unable to pay the loan when due and under the threat of litigation the note holder was given 3,500,000 shares of common stock. The stock was issued on January 28, 2010. At that time the principal, accrued interest and legal fees amounted to $163,366. Under the terms of a court ordered stipulation agreement if the note holder was unable to liquidate the stock in full payment of the stipulated amount then the Company would be obligated to issue more stock to him to make up for the shortage. As a part of the agreement the note holder is required to account for proceeds realized from the sales of stock. | During 2006 the Company negotiated a loan from an individual in the amount of $100,000. Under the terms of the loan it was to be repaid in full within one year together with interest at the rate of 15% per annum. The Company was unable to pay the loan when due and under the threat of litigation the note holder was given 3,500,000 shares of common stock. The stock was issued on January 28, 2010. At that time the principal, accrued interest and legal fees amounted to $163,366. Under the terms of a court ordered stipulation agreement if the note holder was unable to liquidate the stock in full payment of the stipulated amount then the Company would be obligated to issue more stock to him to make up for the shortage.As a part of the agreement the note holder is required to account for proceeds realized from the sales of stock. The note holder has yet to report any stock sales so this settlement is considered to be in process. | |
During the year ended December 31, 2011 $38,788 was levied against the Company’s bank accounts as a result of a legal action brought to force collection of the balance. The note holder’s contention was that stock sales had fallen well short of the balance due and thus he was due to be paid. While the Company had a complaint that they had not been provided with any information regarding sales of stock, management was unable to stave off the forced levy. As a result of the levy the debt balance as of December 31, 2011 was reduced to $124,578. | During the year ended December 31, 2011 $38,788 was levied against the Company’s bank accounts as a result of a legal action brought to force collection of the balance. The note holder’s contention was that stock sales had fallen well short of the balance due and thus he was due to be paid. While the Company had a complaint that they had not been provided with any information regarding sales of stock management was unable to stave off the forced levy. As a result of the levy the debt balance as of December 31, 2011 was reduced to $124,578. | |
Subsequent to June 30, 2013 the note holder reported that he had sold all of the 3,500,000 shares of the common stock noted above. After giving effect to those proceeds, and the note holder and the Company agreed to settle the remaining debt for $75,000. As a result, the Company has agreed to make monthly payments of $5,000, commencing in July 2013, until the debt is paid in full. The agreement provides that there is no interest due on this debt. As of March 31, 2014 the balance due on this agreement was $35,000 and an additional $5,000 payment was made April 1, 2014. | Subsequent to June 30, 2013 the note holder reported that he had sold all of the 3,500,000 shares of the common stock noted above. After giving effect to those proceeds, and the note holder and the Company agreed to settle the remaining debt for $75,000. As a result, the Company has agreed to make monthly payments of $5,000, commencing in July 2013, until the debt is paid in full. The agreement provides that there is no interest due on this debt. As of December 31, 2013 the balance due on this agreement was $45,000. |
10_STOCK_SETTLEMENT_IN_PROCESS1
10. STOCK SETTLEMENT IN PROCESS | 3 Months Ended |
Mar. 31, 2014 | |
Notes to Financial Statements | ' |
10. STOCK SETTLEMENT IN PROCESS | ' |
10. STOCK SETTLEMENT IN PROCESS | |
During 2006 the Company negotiated a loan from an individual in the amount of $100,000. Under the terms of the loan it was to be repaid in full within one year together with interest at the rate of 15% per annum. The Company was unable to pay the loan when due and under the threat of litigation the note holder was given 3,500,000 shares of common stock. The stock was issued on January 28, 2010. At that time the principal, accrued interest and legal fees amounted to $163,366. Under the terms of a court ordered stipulation agreement if the note holder was unable to liquidate the stock in full payment of the stipulated amount then the Company would be obligated to issue more stock to him to make up for the shortage. As a part of the agreement the note holder is required to account for proceeds realized from the sales of stock. | |
During the year ended December 31, 2011 $38,788 was levied against the Company’s bank accounts as a result of a legal action brought to force collection of the balance. The note holder’s contention was that stock sales had fallen well short of the balance due and thus he was due to be paid. While the Company had a complaint that they had not been provided with any information regarding sales of stock, management was unable to stave off the forced levy. As a result of the levy the debt balance as of December 31, 2011 was reduced to $124,578. | |
Subsequent to June 30, 2013 the note holder reported that he had sold all of the 3,500,000 shares of the common stock noted above. After giving effect to those proceeds, and the note holder and the Company agreed to settle the remaining debt for $75,000. As a result, the Company has agreed to make monthly payments of $5,000, commencing in July 2013, until the debt is paid in full. The agreement provides that there is no interest due on this debt. As of March 31, 2014 the balance due on this agreement was $35,000 and an additional $5,000 payment was made April 1, 2014. |
11_ISSUABLE_COMMON_STOCK_annua
11. ISSUABLE COMMON STOCK- annual (Annual Member) | 12 Months Ended |
Dec. 31, 2013 | |
Annual Member | ' |
11. ISSUABLE COMMON STOCK | ' |
11. ISSUABLE COMMON STOCK | |
During 2013 the Board of Directors authorized the issuance of 23,371,111 shares of common stock that were not issued until after December 31, 2013. These authorizations were 11,911,111 shares for $217,500 of cash, 6,660,000 shares of common stock in payment of services amounting to $121,500, 1,400,000 shares of common stock in payment of accounts payable of $30,000 and 3,400,000 shares in payment of notes payable and accrued interest of $169,720. | |
During December 2012 the Board of Directors authorized the issuance of 12,000,000 shares of common stock in payment of services in the amount of $267,000. The certificates were issued subsequent to December 31, 2012. |
11_CHANGE_TO_PRIOR_FINANCIAL_S
11. CHANGE TO PRIOR FINANCIAL STATEMENT | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
11. CHANGE TO PRIOR FINANCIAL STATEMENT | ' |
11. CHANGE TO PRIOR FINANCIAL STATEMENT | |
During 2013 it was noticed that the par value of preferred stock had been incorrectly reported as $0.01 per share while the correct par value was $0.001 per share. Accordingly, an adjustment was made to decrease the total par value of preferred stock issued and increase additional paid in capital in the amount of $26,907. This adjustment had no effect on previously reported results of operations and also had no effect on the carrying value or historical costs of any assets or liabilities. |
12_JOINT_VENTURE_PROFIT_SHARIN
12. JOINT VENTURE PROFIT SHARING- annual (Annual Member) | 12 Months Ended |
Dec. 31, 2013 | |
Annual Member | ' |
12. JOINT VENTURE PROFIT SHARING | ' |
12. JOINT VENTURE PROFIT SHARING | |
During 2011 the Company entered into an agreement with CRA, Inc. regarding a sale of 60 scanners to a municipal school system. Under the terms of the deal CRA, Inc. purchased all of the materials and paid substantially all of the cost, View Systems, Inc. assembled the products, shipped the scanners for installation and billed the school system. The terms of the agreement provide that each party is to share equally in the profits. As of December 31, 2012 the Company has estimated that it owed CRA $63,561 which is CRA’s share on the profit is reflected on the financial statements as a component of cost of sales. However, since the project was not completed as of December 31, 2012 the ultimate calculation of profit could be made until the job is considered completed. During 2013 the parties agreed to settle the debt for $20,000 which was paid in full prior to December 31, 2013. |
12_CONTINGENT_LIABILITIES
12. CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
12. CONTINGENT LIABILITIES | ' |
12. CONTINGENT LIABILITIES | |
Effective January 1, 2014 the Board of Directors authorized a new employment contract with Gunther Than, CEO of View Systems, Inc. That employment contract provides that in the event of a change in control of the Board of Directors or a buyout or a takeover or a substantial change of management structure Mr. Than will receive a minimum of three year’s salary plus 4.8 million shares of unrestricted stock or the equivalent in cash at Mr. Than’s direction. Mr. Than’s base salary is $240,000 per annum. |
13_CONCENTRATIONS_annual
13. CONCENTRATIONS- annual (Annual Member) | 12 Months Ended |
Dec. 31, 2013 | |
Annual Member | ' |
13. CONCENTRATIONS | ' |
13. CONCENTRATIONS | |
During the years ended December 31, 2013 and 2012 the Company received 47% and 22% of its product sales revenue for a single state municipal agency. The contract with this agency was completed during 2013. |
13_RECLASSIFICATIONS
13. RECLASSIFICATIONS | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
13. RECLASSIFICATIONS | ' |
13. RECLASSIFICATIONS | |
Certain items presented for the prior period have been reclassified to conform to the current period presentation. |
14_SUBSEQUENT_EVENT_annual
14. SUBSEQUENT EVENT- annual (Annual Member) | 12 Months Ended |
Dec. 31, 2013 | |
Annual Member | ' |
14. SUBSEQUENT EVENT | ' |
14. SUBSEQUENT EVENT | |
On March 10, 2014 the Company filed a Form S-1 with the SEC the purpose of which is to allow the Company to sell up to 100,000,000 shares of common stock directly to the public at a stated price of $0.04 per share. The funds raised by this offering will be used to reduce debt and provide working capital. The Form S-1 is pending approval by the SEC which will take at least 30 days from the date filed. |
15_CHANGE_TO_PRIOR_FINANCIAL_S
15. CHANGE TO PRIOR FINANCIAL STATEMENT- annual (Annual Member) | 12 Months Ended |
Dec. 31, 2013 | |
Annual Member | ' |
15. CHANGE TO PRIOR FINANCIAL STATEMENT | ' |
15. CHANGE TO PRIOR FINANCIAL STATEMENT | |
During 2013 it was noticed that the par value of preferred stock had been incorrectly reported as $0.01 per share while the correct par value was $0.001 per share. Accordingly, an adjustment was made to decrease the total par value of preferred stock issued and increase additional paid in capital in the amount of $26,907. The adjustment is reflected in beginning balances of preferred stock and additional paid-in-capital as of December 31, 2011. This adjustment had no effect on previously reported results of operations and also had no effect on the carrying value or historical costs of any assets or liabilities. |
1_NATURE_OF_OPERATIONS_AND_SUM2
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)- annual | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||
Annual Member | ||||||||||||||||
Nature of Operations | ' | ' | ||||||||||||||
Nature of Operations | Nature of Operations | |||||||||||||||
View Systems, Inc. (the “Company”) designs, develops and sells computer software and hardware used in conjunction with surveillance capabilities. The technology utilizes the compression and decompression of digital inputs. In March 2002, the Company acquired Milestone Technology, Inc., which has developed a concealed weapons detection portal. In July 2009, the Company acquired FiberXpress, Inc., which is a company that specializes in developing and selling equipment and components for the fiber optic and communication cable industries. | View Systems, Inc. (the “Company”) designs, develops and sells computer software and hardware used in conjunction with surveillance capabilities. The technology utilizes the compression and decompression of digital inputs. In March 2002, the Company acquired Milestone Technology, Inc., which has developed a concealed weapons detection portal. In July 2009, the Company acquired FibreXpress, Inc., which is a company that specializes in developing and selling equipment and components for the fiber optic and communication cable industries. | |||||||||||||||
Basis of Consolidation | ' | ' | ||||||||||||||
Basis of Consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Milestone Technology, Inc. and FibreXpress, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||
Use of Estimates | ' | ' | ||||||||||||||
Use of Estimates | Use of Estimates | |||||||||||||||
Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from the estimates that were used. | Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from the estimates that were used. | |||||||||||||||
Revenue Recognition | ' | ' | ||||||||||||||
Revenue Recognition | Revenue Recognition | |||||||||||||||
The Company has three main products, namely the concealed weapons detection system, the visual first responder system and the Viewmaxx digital video system. In all cases revenue is considered earned when the product is shipped to the customer, installed (if necessary) and accepted by the customer as a completed sale. The concealed weapons detection system and the digital video system each require installation and training. The customer can engage us for installation and training, which is a revenue source separate and apart from the sale of the product. In those cases revenue is recognized at the completion of the installation and training and acceptance by the customer. However, the customer can also self-install or can engage another firm to provide installation and training. Each product has an unconditional 30 day warranty, during which time the product can be returned for a complete refund. Customers can purchase extended warranties, which provide for replacement or repair of the unit beyond the period provided by the unconditional warranty. Warranties can be purchased for various periods but generally they are for one year period that begins after any other warranties expire. The revenue from warranties is recognized on a straight line bases over the period covered by the warranty. Prior to the issuance of financial statements management reviews any returns subsequent to the end of the accounting period which are from sales recognized during the accounting period, and makes appropriate adjustments as necessary. Product prices are fixed or determinable and products are only shipped when collectability is reasonably assured. | The Company has three main products, namely the concealed weapons detection system, the visual first responder system and the Viewmaxx digital video system. In all cases revenue is considered earned when the product is shipped to the customer, installed (if necessary) and accepted by the customer as a completed sale. The concealed weapons detection system and the digital video system each require installation and training. The customer can engage us for installation and training, which is a revenue source separate and apart from the sale of the product. In those cases revenue is recognized at the completion of the installation and training and acceptance by the customer. However, the customer can also self-install or can engage another firm to provide installation and training. Each product has an unconditional 30 day warranty, during which time the product can be returned for a complete refund. Customers can purchase extended warranties, which provide for replacement or repair of the unit beyond the period provided by the unconditional warranty. Warranties can be purchased for various periods but generally they are for one year period that begins after any other warranties expire. The revenue from warranties is recognized on a straight line bases over the period covered by the warranty. Prior to the issuance of financial statements management reviews any returns subsequent to the end of the accounting period which are from sales recognized during the accounting period, and makes appropriate adjustments as necessary. Product prices are fixed or determinable and products are only shipped when collectability is reasonably assured. | |||||||||||||||
Inventories | ' | ' | ||||||||||||||
Inventories | Inventories | |||||||||||||||
Inventories are stated at the lower of cost or market. Cost is determined by the last-in-first-out method (LIFO). As of March 31, 2014 and December 31, 2013 the Company’s inventory consisted of assembled units as well as unassembled parts of products. | Inventories are stated at the lower of cost or market. Cost is determined by the last-in-first-out method (LIFO). As of December 31, 2013 and 2012 the Company’s inventory consisted of a number of assembled units as well as unassembled parts of the product. | |||||||||||||||
Property and Equipment | ' | ' | ||||||||||||||
Property and Equipment | Property and Equipment | |||||||||||||||
Property and equipment is recorded at cost and depreciated over their useful lives, using the straight-line and accelerated depreciation methods. Upon sale or retirement, the cost and related accumulated depreciation are eliminated from the respective accounts, and the resulting gain or loss is included in the results of operations. The useful lives of property and equipment for purposes of computing depreciation are as follows: | Property and equipment is recorded at cost and depreciated over their useful lives, using the straight-line and accelerated depreciation methods. Upon sale or retirement, the cost and related accumulated depreciation are eliminated from the respective accounts, and the resulting gain or loss is included in the results of operations. The useful lives of property and equipment for purposes of computing depreciation are as follows: | |||||||||||||||
Equipment 5-7 years | Equipment | 5-7 years | ||||||||||||||
Software tools 3 years | Software tools | 3 years | ||||||||||||||
Depreciation expense for the periods ended March 31, 2014 and 2013 amounted to $1,600 and $2,882, respectively. | Repairs and maintenance charges which do not increase the useful lives of assets are charged to operations as incurred. Depreciation expense for the periods ended December 31, 2013 and 2012 amounted to $12,597 and $14,976, respectively. | |||||||||||||||
Income Taxes | ' | ' | ||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||
Income taxes are recorded under the assets and liabilities method whereby deferred tax assets and liabilities are recognized for the future tax consequences, measured by enacted tax rates, attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the rate change becomes effective. Valuation allowances are recorded for deferred tax assets when it is more likely than not that such deferred tax assets will not be realized. | Income taxes are recorded under the assets and liabilities method whereby deferred tax assets and liabilities are recognized for the future tax consequences, measured by enacted tax rates, attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the rate change becomes effective. Valuation allowances are recorded for deferred tax assets when it is more likely than not that such deferred tax assets will not be realized. | |||||||||||||||
The Company files income tax returns in the U.S. federal jurisdictions, and in various state jurisdictions. The Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years prior to 2009. the company policy is to recognize interest related to unrecognized tax benefits as income tax expense. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. | The Company files income tax returns in the U.S. federal jurisdictions, and in various state jurisdictions. The Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years prior to 2010. The company policy is to recognize interest related to unrecognized tax benefits as income tax expense. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. | |||||||||||||||
Research and Development | ' | ' | ||||||||||||||
Research and Development | ||||||||||||||||
Research and development costs are expensed as incurred. | ||||||||||||||||
Advertising | ' | ' | ||||||||||||||
Advertising | ||||||||||||||||
Advertising costs are charged to operations as incurred. Advertising costs for the periods ended December 31, 2013 and 2012 were $11,497 and $10,808, respectively. | ||||||||||||||||
Nonmonetary Transactions | ' | ' | ||||||||||||||
Nonmonetary Transactions | ||||||||||||||||
Nonmonetary transactions are accounted for in accordance with ASC 845 “ Nonmonetary Transactions” which requires the transfer or distribution of a nonmonetary asset or liability to be based generally, on the fair value of the asset or liability that is received or surrendered, whichever is more clearly evident. | ||||||||||||||||
Financial Instruments | ' | ' | ||||||||||||||
Financial Instruments | ||||||||||||||||
For most financial instruments, including cash, accounts receivable, accounts payable and accruals, management believes that the carrying amount approximates fair value, as the majority of these instruments are short-term in nature. | ||||||||||||||||
Stock-Based Compensation | ' | ' | ||||||||||||||
Stock Options | Stock-Based Compensation | |||||||||||||||
We account for share-based compensation at fair value. Share-based compensation cost for stock options granted to employees, board members and service providers is determined at the grant date using an option pricing model that uses level 3 unobservable inputs. The value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service period. | We account for share-based compensation at fair value. Share-based compensation cost for stock options granted to employees, board members and service providers is determined at the grant date using an option pricing model that uses level 3 unobservable inputs. The value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service period. | |||||||||||||||
Net Loss Per Common Share | ' | ' | ||||||||||||||
Net Loss Per Common Share | Net Loss Per Common Share | |||||||||||||||
Basic net loss per common share is computed by dividing net loss available to common stockholder by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares and dilutive potential common share equivalents then outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and warrants in addition to shares that may be issued in the event that convertible debt is exchanged for shares of common stock. The calculation of the net loss per share available to common stockholders for the periods ended March 31, 2014 and 2013 does not include potential shares of common stock equivalents, as their impact would be antidilutive. | Basic net loss per common share is computed by dividing net loss available to common stockholder by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares and dilutive potential common share equivalents then outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and warrants in addition to shares that may be issued in the event that convertible debt is exchanged for shares of common stock. The calculation of the net loss per share available to common stockholders for the periods ended December 31, 2013 and 2012 does not include potential shares of common stock equivalents, as their impact would be antidilutive. The following reconciles amounts reported in the financial statements: | |||||||||||||||
Net Loss | Shares | Per-share | ||||||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||||||
Year ended December 31, 2013 | $ | (2,008,101 | ) | $ | 194,843,005 | $ | (0.01 | ) | ||||||||
Year ended December 31, 2012 | $ | (888,022 | ) | $ | 157,505,608 | $ | (0.01 | ) |
1_NATURE_OF_OPERATIONS_AND_SUM3
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
Nature of Operations | |
View Systems, Inc. (the “Company”) designs, develops and sells computer software and hardware used in conjunction with surveillance capabilities. The technology utilizes the compression and decompression of digital inputs. In March 2002, the Company acquired Milestone Technology, Inc., which has developed a concealed weapons detection portal. In July 2009, the Company acquired FiberXpress, Inc., which is a company that specializes in developing and selling equipment and components for the fiber optic and communication cable industries. | |
Basis of Consolidation | ' |
Basis of Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, FiberXpress, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from the estimates that were used. | |
Accounts Receivable | ' |
Accounts Receivable | |
Accounts receivable consists of amounts due from customers. Management periodically reviews the open accounts and makes a determination as to the ultimate collectability of each account. Once it is determined that collection is in doubt the account is written off as a bad debt. In order to provide for accounts that may become uncollectible in the future, the Company has established an allowance for doubtful accounts. The balance of the allowance for doubtful accounts is based on management’s judgment and the Company’s prior experience with managing accounts receivable. | |
The Company recognized bad debt expense of $0 and $0 for the periods ended March 31, 2014 and 2013, respectively. Management’s determination that the remaining balance is collectible and therefore no allowance for possible uncollectible accounts receivable has been recorded for the period ended March 31, 2014 and for the year ended December 31, 2013. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company has three main products, namely the concealed weapons detection system, the visual first responder system and the Viewmaxx digital video system. In all cases revenue is considered earned when the product is shipped to the customer, installed (if necessary) and accepted by the customer as a completed sale. The concealed weapons detection system and the digital video system each require installation and training. The customer can engage us for installation and training, which is a revenue source separate and apart from the sale of the product. In those cases revenue is recognized at the completion of the installation and training and acceptance by the customer. However, the customer can also self-install or can engage another firm to provide installation and training. Each product has an unconditional 30 day warranty, during which time the product can be returned for a complete refund. Customers can purchase extended warranties, which provide for replacement or repair of the unit beyond the period provided by the unconditional warranty. Warranties can be purchased for various periods but generally they are for one year period that begins after any other warranties expire. The revenue from warranties is recognized on a straight line bases over the period covered by the warranty. Prior to the issuance of financial statements management reviews any returns subsequent to the end of the accounting period which are from sales recognized during the accounting period, and makes appropriate adjustments as necessary. Product prices are fixed or determinable and products are only shipped when collectability is reasonably assured. | |
Inventories | ' |
Inventories | |
Inventories are stated at the lower of cost or market. Cost is determined by the last-in-first-out method (LIFO). As of March 31, 2014 and December 31, 2013 the Company’s inventory consisted of assembled units as well as unassembled parts of products. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment is recorded at cost and depreciated over their useful lives, using the straight-line and accelerated depreciation methods. Upon sale or retirement, the cost and related accumulated depreciation are eliminated from the respective accounts, and the resulting gain or loss is included in the results of operations. The useful lives of property and equipment for purposes of computing depreciation are as follows: | |
Equipment 5-7 years | |
Software tools 3 years | |
Depreciation expense for the periods ended March 31, 2014 and 2013 amounted to $1,600 and $2,882, respectively. | |
Stock-Based Compensation | ' |
Stock Options | |
We account for share-based compensation at fair value. Share-based compensation cost for stock options granted to employees, board members and service providers is determined at the grant date using an option pricing model that uses level 3 unobservable inputs. The value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service period. | |
Income Taxes | ' |
Income Taxes | |
Income taxes are recorded under the assets and liabilities method whereby deferred tax assets and liabilities are recognized for the future tax consequences, measured by enacted tax rates, attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the rate change becomes effective. Valuation allowances are recorded for deferred tax assets when it is more likely than not that such deferred tax assets will not be realized. | |
The Company files income tax returns in the U.S. federal jurisdictions, and in various state jurisdictions. The Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years prior to 2009. the company policy is to recognize interest related to unrecognized tax benefits as income tax expense. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. | |
Net Loss Per Common Share | ' |
Net Loss Per Common Share | |
Basic net loss per common share is computed by dividing net loss available to common stockholder by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares and dilutive potential common share equivalents then outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and warrants in addition to shares that may be issued in the event that convertible debt is exchanged for shares of common stock. The calculation of the net loss per share available to common stockholders for the periods ended March 31, 2014 and 2013 does not include potential shares of common stock equivalents, as their impact would be antidilutive. |
1_NATURE_OF_OPERATIONS_AND_SUM4
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)- annual (Annual Member) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Annual Member | ' | ||||||||||||||
Net Loss Per Common Share | ' | ||||||||||||||
Net Loss | Shares | Per-share | |||||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||||
Year ended December 31, 2013 | $ | (2,008,101 | ) | $ | 194,843,005 | $ | (0.01 | ) | |||||||
Year ended December 31, 2012 | $ | (888,022 | ) | $ | 157,505,608 | $ | (0.01 | ) |
4_NOTES_PAYABLE_Tables_annual
4. NOTES PAYABLE (Tables)- annual | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||
Annual Member | ||||||||||||||||
Components of Notes Payable | ' | ' | ||||||||||||||
2013 | 2012 | |||||||||||||||
Stockholder | ||||||||||||||||
An unsecured loan from a stockholder which is payable on demand with interest at 12%. The note was dated November 1, 2007 and the note matures and the principal is payable upon the demand of the lender. The note was paid in full during 2013 primarily through the issuance of common stock issuable. | $ | — | $ | 116,000 | ||||||||||||
Investor | ||||||||||||||||
An unsecured loan from an investor, payable in monthly installments of $5,000 commencing July 1, 2013 until paid in full. The loan bears no interest and is the amount due as a result of a settlement of the stock settlement payable mentioned below. | 45,000 | — | ||||||||||||||
Lafayette Community Bank | ||||||||||||||||
A term loan secured by a stockholder, payable in monthly installments of $2,587 commencing in December 25, 2009 but refinanced in May 2011. The loan is due in full on May 18, 2016 and interest accrues monthly at 7.5% per annum. | 72,596 | 97,185 | ||||||||||||||
Stockholder | ||||||||||||||||
Demand loan payable with interest at 5% per month dated September 18, 2009. The loan is secured by the Company’s accounts receivable. The note was payable in full on December 17, 2009 so this debt is currently in default. | 50,000 | 50,000 | ||||||||||||||
Chase | ||||||||||||||||
Equipment loan to finance the purchases of a truck, payable monthly in installments of $533, which include interest at 5.34% per annum. | 4,618 | 10,104 | ||||||||||||||
TOTAL | 172,214 | 273,289 | ||||||||||||||
Less current portion | 126,116 | 197,058 | ||||||||||||||
Non-current portion | $ | 46,098 | $ | 76,231 | ||||||||||||
Schedule of Principal Payments | ' | ' | ||||||||||||||
2015 | $ | 114,544 | 2014 | $ | 126,116 | |||||||||||
2016 | 29,093 | 2015 | 28,555 | |||||||||||||
2017 | 10,065 | 2016 | 17,543 | |||||||||||||
Thereafter | 0 | Thereafter | — | |||||||||||||
TOTAL | $ | 153,702 | ||||||||||||||
TOTAL | $ | 172,214 |
4_NOTES_PAYABLE_Tables
4. NOTES PAYABLE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Components of Notes Payable | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Lafayette Community Bank | 66,156 | 72,596 | |||||||
A term loan secured by a stockholder, payable in monthly installments of $2,587 commencing in December 25, 2009 but refinanced in May 2011. The loan is due in full on May 18, 2016. Interest accrues monthly at 7.5% per annum. | |||||||||
Stockholder | 50,000 | 50,000 | |||||||
Demand loan payable with interest at 5% per month. The loan is secured by the Company’s accounts receivable. The note payable matured on December 17, 2009 at which the debt became due and payable and therefore the loan is currently in default. | |||||||||
Investor | 35,000 | 45,000 | |||||||
An unsecured loan from an investor, payable in monthly installments of $5,000 commencing July 1, 2013 until paid in full. The loan bears no interest and is the amount due as a result of a settlement of the stock settlement payable mentioned below. | |||||||||
Chase | 2,546 | 4,618 | |||||||
A secured loan to finance the purchase of a truck, payable monthly in installments of $533, which includes interest at 5.34% per annum. | |||||||||
TOTAL | $ | 153,702 | $ | 172,214 | |||||
Less current portion | 114,544 | 126,116 | |||||||
Non-current portion | $ | 39,158 | $ | 46,098 | |||||
Schedule of Principal Payments | ' | ||||||||
2015 | $ | 114,544 | |||||||
2016 | 29,093 | ||||||||
2017 | 10,065 | ||||||||
Thereafter | 0 | ||||||||
TOTAL | $ | 153,702 |
5_INCOME_TAXES_Tables_annual
5. INCOME TAXES (Tables)- annual (Annual Member) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Annual Member | ' | ||||||||
Deferred Tax Asset | ' | ||||||||
Effect of net operating loss carry forward | $ | 10,986,000 | |||||||
Less evaluation allowance | (10,986,000 | ) | |||||||
Net deferred tax asset | $ | — | |||||||
Tax Expense Benefit | ' | ||||||||
Year ended | |||||||||
31-Dec | 31-Dec | ||||||||
2013 | 2012 | ||||||||
Net loss per financial statements which approximates net loss | |||||||||
per income tax returns | $ | (2,008,101 | ) | $ | (88,022 | ) | |||
Income tax expense (benefit) applying prevailing | |||||||||
Federal and state income tax rates | (843,400 | ) | (373,000 | ) | |||||
Less valuation allowance | 843,400 | 373,000 | |||||||
Net income tax expense | $ | — | $ | — |
8_STOCK_BASED_COMPENSATION_Tab
8. STOCK BASED COMPENSATION (Tables)- annual (Annual Member) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Annual Member | ' | ||||||||||||||||||
Stock options issued to member of board of driectors | ' | ||||||||||||||||||
Weighted | Weighted Average | Aggregate | |||||||||||||||||
Number of | Average | Remaining | Intrinsic | ||||||||||||||||
Options | Exercise Price | Contractual Life | Value | ||||||||||||||||
Outstanding at January 1, 2013 | — | $ | — | — | $ | — | |||||||||||||
Granted | 15,000,000 | $ | 0.03 | 4.14 | $ | — | |||||||||||||
Exercised | — | $ | — | — | $ | — | |||||||||||||
Forfeited | (5,000,000 | ) | $ | — | — | $ | — | ||||||||||||
Outstanding at December 31, 2013 | 10,000,000 | $ | 0.03 | 4.14 | $ | — | |||||||||||||
Exercisable at December 31, 2013 | 10,000,000 | $ | 0.03 | 4.14 | $ | — | |||||||||||||
Fair Value of Options | ' | ||||||||||||||||||
Year ended | |||||||||||||||||||
31-Dec | 31-Dec | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Annual Dividend | — | NA | |||||||||||||||||
Expected Life (in years) | 5 | NA | |||||||||||||||||
Risk Free Interest Rate | 0.78 | % | NA | ||||||||||||||||
Expected Volatility | 325.25 | % | NA |
8_STOCK_BASED_COMPENSATION_Tab1
8. STOCK BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Stock Options | ' | ||||||||||||||||||
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||
Outstanding at January 1, 2013 | 10,000,000 | 0.03 | 4.14 | $ | — | ||||||||||||||
Granted | — | $ | — | — | — | ||||||||||||||
Exercised | — | — | — | ||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||
Outstanding | 10,000,000 | $ | 0.03 | 3.88 | $ | — | |||||||||||||
Exercisable | 10,000,000 | $ | 0.03 | 3.88 | $ | — |
1_NATURE_OF_OPERATIONS_AND_SUM5
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Loss Per Common Share (Details)- annual (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Annual Member | Annual Member | |||
Net Loss | ($379,011) | ($534,887) | ($2,008,101) | ($888,022) |
Shares | 244,557,551 | 173,621,178 | 194,843,005 | 157,505,068 |
Per-share | ' | ' | ($0.01) | ($0.01) |
1_NATURE_OF_OPERATIONS_AND_SUM6
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)- annual (USD $) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Annual Member | Annual Member | Useful Life Equipment Minimum [Member] | Useful Life Equipment Maximum [Member] | Useful Life Software Tools [Member] | |||
Annual Member | Annual Member | Annual Member | |||||
Bad Debt Expense | ' | ' | $7,848 | $0 | ' | ' | ' |
Useful Lives of Property Plant and Equipment | ' | ' | ' | ' | '5 | '7 | '3 |
Depreciation Expense | 1,600 | 2,882 | 12,597 | 14,976 | ' | ' | ' |
Advertising Costs | ' | ' | $11,497 | $10,808 | ' | ' | ' |
1_NATURE_OF_OPERATIONS_AND_SUM7
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' |
Depreciation Expense | $1,600 | $2,882 | ' |
Allowance for Doubtful Accounts | $0 | ' | $0 |
2_GOING_CONCERN_Details_Narrat
2. GOING CONCERN (Details Narrative)- annual (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Annual Member | Annual Member | |||
Net Loss | ($379,011) | ($534,887) | $2,008,101 | $888,022 |
Loans in default, due to stockholder | $50,000 | ' | $50,000 | ' |
2_GOING_CONCERN_Details_Narrat1
2. GOING CONCERN (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Net Loss | ($379,011) | ($534,887) |
Loans in default, due to stockholder | $50,000 | ' |
4_NOTES_PAYABLE_Details_annual
4. NOTES PAYABLE (Details)- annual (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Annual Member | Annual Member | Stockholder | Stockholder | Investor | Investor | Lafayette Community Bank | Lafayette Community Bank | Stockholder 2 | Stockholder 2 | Chase | Chase | |||
Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | |||||
TOTAL | $153,702 | $172,214 | $172,214 | $273,289 | ' | $116,000 | $45,000 | ' | $72,596 | $97,185 | $50,000 | $50,000 | $4,618 | $10,104 |
Less current portion | 114,544 | 126,116 | 126,116 | 197,058 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current portion | $39,158 | $46,098 | $46,098 | $76,231 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
4_NOTES_PAYABLE_Schedule_of_Pr
4. NOTES PAYABLE - Schedule of Principal Payments (Details) (USD $) | Mar. 31, 2014 |
Debt Disclosure [Abstract] | ' |
2015 | $114,544 |
2016 | 29,093 |
2017 | 10,065 |
Thereafter | 0 |
TOTAL | $153,702 |
4_NOTES_PAYABLE_Details_annual1
4. NOTES PAYABLE - (Details)- annual (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Annual Member | ||
2014 | $114,544 | $126,116 |
2015 | 29,093 | 28,555 |
2016 | 10,065 | 17,543 |
Thereafter | 0 | ' |
TOTAL | $153,702 | $172,214 |
4_NOTES_PAYABLE_Components_of_
4. NOTES PAYABLE - Components of Notes Payable (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
TOTAL | $153,702 | $172,214 |
Less current portion | 114,544 | 126,116 |
Non-current portion | 39,158 | 46,098 |
Lafayette Community Bank [Member] | ' | ' |
TOTAL | 66,156 | 72,596 |
Stockholder [Member] | ' | ' |
TOTAL | 50,000 | 50,000 |
Investor [Member] | ' | ' |
TOTAL | 35,000 | 45,000 |
Chase [Member] | ' | ' |
TOTAL | $2,546 | $4,618 |
5_INCOME_TAXES_Deferred_Tax_As
5. INCOME TAXES - Deferred Tax Asset (Details)- annual (Annual Member, USD $) | Dec. 31, 2013 |
Annual Member | ' |
Effect of net operating loss carry forward | $10,986,000 |
Less evaluation allowance | -10,986,000 |
Net deferred tax asset | ' |
5_INCOME_TAXES_Tax_Expense_Ben
5. INCOME TAXES - Tax Expense Benefit (Details)- annual (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Annual Member | Annual Member | |||
Net loss | ($379,011) | ($534,887) | ($2,008,101) | ($888,022) |
Income tax expense (benefit) applying prevailing federal and state income tax rates | ' | ' | -843,400 | -373,000 |
Less valuation allowance | ' | ' | 843,400 | 373,000 |
Net income tax expense | ' | ' | ' | ' |
5INCOME_TAXES_Details_Narrativ
5.INCOME TAXES (Details Narrative)- annual (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Annual Member | ||
Net Operating Loss Carry Forward | $26,158,000 | $20,000,000 |
5_INCOME_TAXES_Details_Narrati
5. INCOME TAXES (Details Narrative) (USD $) | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ' |
Net Operating Loss Carry Forward | $26,158,000 |
6_CONVERTIBLE_PREFERRED_STOCK_1
6. CONVERTIBLE PREFERRED STOCK (Details Narrative)- annual (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2005 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2008 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2008 | Dec. 31, 2005 | Dec. 31, 2008 | |
Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | ||||||||
Stock Issued for Service | 7,171,725 | 1,000,000 | ' | ' | ' | ' | ' | 6,660,000 | 225,000 | ' | 34,000 | ' | 7,171,725 | ' |
Value per share | ' | ' | $0.00 | ' | ' | $0.00 | ' | ' | $0.00 | $0.00 | ' | ' | $0.00 | ' |
Reverse Stock Split | ' | ' | ' | ' | 0.0125 | ' | ' | ' | ' | ' | ' | 80 | ' | ' |
Preferred Stock Outstanding Beginning | ' | ' | ' | ' | 7,171,725 | 3,489,647 | 3,489,647 | 3,489,647 | 2,989,647 | ' | ' | ' | ' | 7,171,725 |
Preferred Shares Outstanding Ending | ' | ' | 3,489,647 | ' | 89,647 | 3,489,647 | ' | ' | 3,489,647 | 2,989,647 | ' | 89,647 | ' | ' |
Conversion Ratio | ' | ' | ' | '15:1 | ' | ' | ' | ' | ' | ' | '15:1. | ' | ' | ' |
Additional Shares Authorized | ' | ' | 500,000 | 1,400,000 | ' | ' | ' | ' | 500,000 | 1,500,000 | 1,400,000 | ' | ' | ' |
Common Stock Issued for Payment value | ' | ' | ' | $64,000 | ' | ' | ' | $1,400,000 | ' | ' | $64,000 | ' | ' | ' |
Amount of current and oncurrent compensation | ' | ' | $225,000 | $34,000 | ' | ' | ' | ' | ' | $161,463 | ' | ' | ' | ' |
6_PREFERRED_STOCK_Details_Narr
6. PREFERRED STOCK (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jul. 31, 2005 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2008 | Mar. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Stock Issued for Service | 7,171,725 | 1,000,000 | ' | ' | ' | ' | ' |
Value per share | $0.00 | ' | ' | ' | ' | ' | ' |
Reverse Stock Split | ' | ' | ' | ' | 0.0125 | ' | ' |
Preferred Stock Outstanding Beginning | ' | ' | ' | ' | 7,171,725 | 3,489,647 | 3,489,647 |
Preferred Shares Outstanding Ending | ' | ' | 3,489,647 | ' | 89,647 | 3,489,647 | ' |
Conversion Ratio | ' | ' | ' | '15:1 | ' | ' | ' |
Additional Shares Authorized | ' | ' | 500,000 | 1,400,000 | ' | ' | ' |
Common Stock Issued for Payment value | ' | ' | ' | $64,000 | ' | ' | ' |
Amount of current and noncurrent compensation | ' | ' | $225,000 | $34,000 | ' | ' | ' |
7_OPERATING_LEASE_Details_Narr
7. OPERATING LEASE (Details Narrative)- annual (Annual Member, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Annual Member | ' | ' | ' | ' |
Rent Expense | ' | $44,652 | $45,941 | $3,077 |
Rent Expense | $3,464 | ' | ' | ' |
7_OPERATING_LEASE_Details_Narr1
7. OPERATING LEASE (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Leases [Abstract] | ' | ' |
Base Rent | $3,077 | ' |
Annual Rent Escalator Clause Percentage | 3.00% | ' |
Monthly Rent | 3,464 | ' |
Rent Expense | $10,477 | $13,145 |
8_STOCK_BASED_COMPENSATION_Sto
8. STOCK BASED COMPENSATION - Stock Options (Details)- annual (Annual Member) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2010 | |
Outstanding at January 1, 2013 | ' | 14,116,433 |
Granted | 10,000,000 | ' |
Options Held [Member] | ' | ' |
Outstanding at January 1, 2013 | ' | ' |
Granted | 15,000,000 | ' |
Exercised | ' | ' |
Forfeited | -5,000,000 | ' |
Outstanding at December 31, 2013 | 10,000,000 | ' |
Exercisable at December 31, 2013 | 10,000,000 | ' |
Weighted Average Exercise Price | ' | ' |
Outstanding at January 1, 2013 | ' | ' |
Granted | 0.03 | ' |
Exercised | ' | ' |
Forfeited | ' | ' |
Outstanding at December 31, 2013 | 0.03 | ' |
Exercisable at December 31, 2013 | 0.03 | ' |
Weighted Average Remaining Contractual Life | ' | ' |
Outstanding at January 1, 2013 | ' | ' |
Granted | 4.14 | ' |
Exercised | ' | ' |
Forfeited | ' | ' |
Outstanding at December 31, 2013 | 4.14 | ' |
Exercisable at December 31, 2013 | 4.14 | ' |
Weighted Average Remaining Contractual Life | ' | ' |
Outstanding at January 1, 2013 | ' | ' |
Granted | ' | ' |
Exercised | ' | ' |
Forfeited | ' | ' |
Outstanding at December 31, 2013 | ' | ' |
Exercisable at December 31, 2013 | ' | ' |
8_STOCK_BASED_COMPENSATION_Sto1
8. STOCK BASED COMPENSATION - Stock Options (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Outstanding | 10,000,000 |
Outstanding, Per Share | $0.03 |
Outstanding | '4 years 1 month |
Outstanding, Value | ' |
Granted | ' |
Granted, Per Share | ' |
Granted | '0 years |
Granted, Value | ' |
Exercised | ' |
Exercised, Per Share | ' |
Exercised, Value | ' |
Forfeited | ' |
Forfeited, Per Share | ' |
Forfeited, Value | ' |
Outstanding | 10,000,000 |
Outstanding, Per Share | $0.03 |
Outstanding | '3 years 10 months |
Outstanding, Value | ' |
Exercisable | 10,000,000 |
Exercisable, Per Share | $0.03 |
Exercisable | '3 years 10 months |
Exercisable, Value | ' |
8_STOCK_BASED_COMPENSATION_Sig
8. STOCK BASED COMPENSATION - Significant Assumptions Used (Details)- annual (Annual Member, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Annual Member | ' | ' |
Annual Dividend | ' | ' |
Expected Life (in years) | '5 years | '0 years |
Risk Free Interest Rate | 78.00% | ' |
Expected Volatility | 32525.00% | ' |
8_STOCK_BASED_COMPENSATION_Det
8. STOCK BASED COMPENSATION (Details Narrative)- annual (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Annual Member | Annual Member | Annual Member | Annual Member | Discharge of Debt [Member] | Discharge of Debt [Member] | Discharge of Debt [Member] | Discharge of Debt [Member] | ||||
Annual Member | Annual Member | Annual Member | Annual Member | ||||||||
Shares for Equity Incentive Plan | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' |
Stock Issued for Employee Compensation | ' | ' | ' | ' | ' | ' | 14,116,433 | ' | 108,501 | ' | 108,501 |
Employee Stock option expense | ' | $450,000 | ' | $450,000 | ' | $92,065 | ' | ' | ' | ' | ' |
Shares Authorized for Equity Incentive Program | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' |
Shares issued For Expenses and Liabilitites | ' | ' | ' | 13,111,904 | 14,250,000 | ' | ' | 4,500,000 | 15,000 | 75,000 | 1,500,000 |
Amount of Expenses and Liabilities | ' | ' | ' | 328,000 | 285,000 | ' | ' | 90,900 | 161,463 | ' | 161,463 |
Preferred Stock Issued | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | 5,000,000 |
Options Granted During Period | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' |
Value of Stock Options | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Accrued Interest | $50,625 | ' | $43,125 | $43,125 | $54,885 | ' | ' | ' | ' | ' | ' |
8_STOCK_BASED_COMPENSATION_Det1
8. STOCK BASED COMPENSATION (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2005 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | |
Equity [Abstract] | ' | ' | ' | ' |
Stock Issued for Services, Shares | 7,171,725 | 1,000,000 | ' | ' |
Stock Issued for Services, Value | ' | $30,000 | ' | ' |
Stock Issued for Loans, Shares | ' | 1,500,000 | 3,500,000 | 3,500,000 |
Stock Issued for Loans, Value | ' | $7,500 | ' | ' |
9_RELATED_PARTY_TRANSACTIONS_D
9. RELATED PARTY TRANSACTIONS (Details Narrative)- annual (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||
Dec. 31, 2010 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Annual Member | Annual Member | Annual Member | Annual Member | CEO Compensation | CEO Compensation | CEO Compensation | Stock Compensation | ||
Annual Member | Annual Member | Annual Member | Annual Member | ||||||
Related Party Loans Current | ' | ' | $31,806 | $49,006 | ' | ' | ' | ' | ' |
Total Loans From Related Parties | ' | ' | 251,054 | 199,173 | ' | ' | ' | ' | ' |
Cash Payment for Services | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' |
Common stock | ' | ' | 1,680,000 | ' | ' | 1,000,000 | 1,839,000 | 8,000,000 | 7,113,333 |
Common Stock Issued for Payment value | $64,000 | $1,400,000 | ' | ' | $64,000 | $43,338 | $108,501 | $160,000 | $173,500 |
9_RELATED_PARTY_TRANSACTIONS_D1
9. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2005 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Due to Shareholders | ' | $287,855 | ' | $251,054 |
Net Proceeds from Stockholders | ' | 29,040 | 16,861 | 31,806 |
Accrued Professional Fees, Related Party | ' | 45,000 | ' | ' |
Professional Fees Paid, Cash | ' | ' | ' | 25,000 |
Stock issued in payment of services and accounts payable, Shares | 7,171,725 | ' | 1,000,000 | ' |
Common stock issued for prepayment of services | ' | ' | 30,000 | ' |
Stockholder [Member] | ' | ' | ' | ' |
Stock issued in payment of services and accounts payable, Shares | ' | ' | ' | 7,113,333 |
Common stock issued for prepayment of services | ' | ' | ' | $173,500 |
10_STOCK_SETTLEMENT_IN_PROCESS2
10. STOCK SETTLEMENT IN PROCESS (Details Narrative)- annual (USD $) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Mar. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2006 | |
Loan from Individual | ' | ' | ' | ' | ' | $100,000 |
Interest Rate | ' | ' | ' | ' | ' | 15.00% |
Shares issued for Settlement | 1,500,000 | 3,500,000 | 3,500,000 | ' | ' | ' |
Legal Fees and Interest | ' | ' | 163,366 | ' | ' | ' |
Amount Levied | ' | ' | ' | ' | 38,788 | ' |
Remainder of Account Payable | ' | ' | ' | 35,000 | 124,578 | ' |
Loan from Individual | ' | ' | ' | 5,000 | ' | ' |
Annual Member | ' | ' | ' | ' | ' | ' |
Loan from Individual | ' | 31 | ' | ' | ' | 100,000 |
Interest Rate | ' | 0.00% | ' | ' | ' | 15.00% |
Shares issued for Settlement | ' | 3,500,000 | 3,500,000 | ' | ' | ' |
Legal Fees and Interest | ' | ' | 163,366 | ' | ' | ' |
Amount Levied | ' | ' | ' | ' | 38,788 | ' |
Remainder of Account Payable | ' | 75,000 | ' | 30,000 | 124,578 | ' |
Loan from Individual | ' | 5,000 | ' | ' | ' | ' |
10_STOCK_SETTLEMENT_IN_PROCESS3
10. STOCK SETTLEMENT IN PROCESS (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Mar. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2006 | |
Notes to Financial Statements | ' | ' | ' | ' | ' | ' |
Loan from Individual | ' | ' | ' | ' | ' | $100,000 |
Interest Rate | ' | ' | ' | ' | ' | 15.00% |
Shares issued for Settlement | 1,500,000 | 3,500,000 | 3,500,000 | ' | ' | ' |
Legal Fees and Interest | ' | ' | 163,366 | ' | ' | ' |
Amount Levied | ' | ' | ' | ' | 38,788 | ' |
Remainder of Account Payable | ' | ' | ' | 35,000 | 124,578 | ' |
Loan from Individual | ' | ' | ' | $5,000 | ' | ' |
11_ISSUABLE_COMMON_STOCK_Detai
11. ISSUABLE COMMON STOCK (Details Narrative)- annual (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2005 | Mar. 31, 2013 | Dec. 31, 2010 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2005 | Dec. 31, 2011 | |
Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | Annual Member | |||||||
New Shares Issued | ' | ' | ' | 248,030,860 | 222,399,749 | ' | 23,371,111 | 222,399,749 | 170,421,178 | ' | ' | ' |
Shares Issued for Cash | ' | ' | ' | ' | ' | ' | 11,911,111 | ' | ' | ' | ' | ' |
Proceeds from Sale of Stock | ' | ' | ' | ' | ' | ' | $217,500 | ' | ' | ' | ' | ' |
Stock issued in payment of services and accounts payable, Shares | 7,171,725 | 1,000,000 | ' | ' | ' | ' | 6,660,000 | 225,000 | ' | 34,000 | 7,171,725 | ' |
Fees for Services | ' | ' | ' | ' | ' | ' | 121,500 | ' | ' | ' | ' | ' |
Stock Issued For Accounts Payable | ' | ' | 64,000 | ' | ' | ' | 1,400,000 | ' | ' | 64,000 | ' | ' |
Stock Issued for Notes Payable | ' | ' | ' | ' | ' | ' | 3,400,000 | 225,000 | 44,297 | ' | ' | ' |
Acoounts Payable | ' | ' | ' | $35,000 | ' | $124,578 | $30,000 | $75,000 | ' | ' | ' | $124,578 |
11_CHANGE_TO_PRIOR_FINANCIAL_S1
11. CHANGE TO PRIOR FINANCIAL STATEMENT (Details Narrative) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Preferred Stock, Par Value | $0.00 | $0.00 |
Additional Paid in Capital | $26,119,920 | $25,550,331 |
Scenario, Previously Reported [Member] | ' | ' |
Preferred Stock, Par Value | ' | $0.01 |
Scenario, Restatement Adjustment [Member] | ' | ' |
Preferred Stock, Par Value | ' | $0.00 |
Additional Paid in Capital | ' | $26,907 |
12_JOINT_VENTURE_PROFIT_SHARIN1
12. JOINT VENTURE PROFIT SHARING (Details Narrative)- annual (Annual Member, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Annual Member | ' | ' |
Accounts Payable | $20,000 | $63,561 |
12_CONTINGENT_LIABILITY_Detail
12. CONTINGENT LIABILITY (Details Narrative) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Contingent Liability Details Narrative | ' |
Base Salary | $240,000 |
13_CONCENTRATIONS_Details_Narr
13. CONCENTRATIONS (Details Narrative)- annual (Annual Member) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Annual Member | ' | ' |
Percentage of the Company's product sales revenue received from a single state municipal agency | 47.00% | 22.00% |
14_SUBSEQUENT_EVENT_Details_Na
14. SUBSEQUENT EVENT (Details Narrative)- annual (Annual Member, USD $) | Mar. 10, 2014 |
Annual Member | ' |
S1 Submitted to SEC | 100,000,000 |
Price per share | $0.04 |
15_CHANGE_TO_PRIOR_FINANCIAL_S1
15. CHANGE TO PRIOR FINANCIAL STATEMENT (Details Narrative)- annual (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2005 |
Annual Member | Annual Member | Annual Member | |||
Incorrect Preferred Stock Value | ' | ' | $0 | ' | ' |
Preferred Stock Shares Par Value | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Paid in Capital | ' | ' | $26,907 | ' | ' |