Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Mar. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ALR Technologies Inc. | ' |
Document Type | '10-K | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 239,477,909 |
Entity Public Float | ' | $3,195,704 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001087022 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Cash | $29,558 | $11,082 |
Prepaid expenses and other | 4,388 | 16,829 |
Total assets | 33,946 | 27,911 |
Liabilities and Stockholders’ Deficit | ' | ' |
Accounts payable and accrued liabilities | 1,112,020 | 1,002,183 |
Interest payable | 2,075,017 | 1,569,321 |
Advances payable | ' | 105,613 |
Lines of credit from related parties | 6,508,730 | 4,534,287 |
Related party promissory notes payable | 2,861,966 | 2,861,966 |
Unrelated party promissory notes payable | 2,424,353 | 2,424,353 |
Total liabilities | 14,982,086 | 12,497,723 |
Stockholders’ Deficit | ' | ' |
Preferred stock Authorized: 500,000,000 (2012 - 500,000,000) shares of preferred stock with a par value of $0.001 per share Shares issued and outstanding: None (2012: None) preferred stock were issued and outstanding | 0 | 0 |
Common stock Authorized: 500,000,000 (2012 - 500,000,000) shares of common stock with a par value of $0.001 per share Shares issued and outstanding: 239,477,909 shares of common stock (2012 – 236,477,909 shares of common stock | 239,477 | 236,477 |
Additional paid-in capital | 33,670,337 | 33,154,436 |
Accumulated deficit | -48,857,954 | -45,860,725 |
Stockholders’ deficit | -14,948,140 | -12,469,812 |
Total liabilities and stockholders’ deficit | $33,946 | $27,911 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, authorized | 500,000,000 | 500,000,000 |
Preferred stock, par value of $0.001 (in Dollars per share) | $0.00 | $0.00 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, issued | 239,477,909 | 236,477,909 |
Common stock, outstanding | 239,477,909 | 236,477,909 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 12 Months Ended | 182 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Revenue | ' | ' | ' |
Sales | ' | ' | $2,994,931 |
Cost of sales | ' | ' | 3,325,639 |
Gross profit (loss) | ' | ' | -330,708 |
Expenses | ' | ' | ' |
Depreciation | ' | ' | 52,694 |
Product development | 340,949 | 584,355 | 4,349,319 |
Market development | ' | 242,425 | 900,940 |
Professional fees | 394,770 | 135,218 | 2,420,394 |
Selling, general and administration | 939,360 | 945,352 | 14,406,865 |
1,675,079 | 1,907,350 | 22,130,212 | |
Loss from operations | 1,675,079 | 1,907,350 | 22,460,920 |
Interest expense | 1,339,399 | 6,461,210 | 26,111,436 |
Write down of equipment | ' | ' | 36,623 |
Other expense (income) | -17,249 | -39,900 | 248,975 |
Net loss for year | ($2,997,229) | ($8,328,660) | ($48,857,954) |
Loss per share, basic and diluted (in Dollars per share) | ($0.01) | ($0.04) | ' |
Weighted average number of common shares outstanding, basic and diluted (in Shares) | 237,703,855 | 221,245,669 | ' |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Deficit (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
at Oct. 20, 1998 | ' | ' | ' | ' |
Balance at year end (in Shares) | 213,527,909 | ' | ' | ' |
Shares issued for cash | $11,745 | $281,913 | ' | $293,658 |
Shares issued for cash (in Shares) | 11,745,316 | ' | ' | ' |
Shares issued in business combination | 36,533 | 958,646 | ' | 995,179 |
Shares issued in business combination (in Shares) | 36,533,130 | ' | ' | ' |
Shares re-acquired and cancelled | -27,000 | -112,178 | ' | -139,178 |
Shares re-acquired and cancelled (in Shares) | -27,000,000 | ' | ' | ' |
Shares issued for debt settlement | 190,249 | 9,722,224 | ' | 9,912,473 |
Shares issued for debt settlement (in Shares) | 190,249,463 | ' | ' | ' |
2,000 | 595,649 | ' | 597,649 | |
Stock-based compensation (in Shares) | 2,000,000 | ' | ' | ' |
Imputed interest | ' | 2,818,562 | ' | 2,818,562 |
Net loss for the year | ' | ' | -32,255,396 | -32,255,396 |
at Dec. 31, 2010 | 213,527 | 23,428,360 | -32,255,396 | -8,613,509 |
Balance at year end (in Shares) | 213,977,909 | ' | ' | ' |
' | 2,682,855 | ' | 2,682,855 | |
Shares issued for stock options exercised | 450 | 44,550 | ' | 45,000 |
Shares issued for stock options exercised (in Shares) | 450,000 | ' | ' | ' |
Imputed interest | ' | 179,261 | ' | 179,261 |
Net loss for the year | ' | ' | -5,276,669 | -5,276,669 |
at Dec. 31, 2011 | 213,977 | 26,335,026 | -37,532,065 | -10,983,062 |
Balance at year end (in Shares) | 236,447,909 | ' | ' | 236,477,909 |
' | 5,597,662 | ' | 5,597,662 | |
Shares issued for stock options exercised | 22,500 | 1,052,500 | ' | 1,075,000 |
Shares issued for stock options exercised (in Shares) | 22,500,000 | ' | ' | -22,500,000 |
Imputed interest | ' | 169,248 | ' | 169,248 |
Net loss for the year | ' | ' | -8,328,660 | -8,328,660 |
at Dec. 31, 2012 | 236,477 | 33,154,436 | -45,860,725 | -12,469,812 |
Balance at year end (in Shares) | 239,477,909 | ' | ' | 239,477,909 |
' | 244,913 | ' | 244,913 | |
Shares issued for stock options exercised | 3,000 | 87,000 | ' | 90,000 |
Shares issued for stock options exercised (in Shares) | 3,000,000 | ' | ' | -3,000,000 |
Imputed interest | ' | 183,988 | ' | 183,988 |
Net loss for the year | ' | ' | -2,997,229 | -2,997,229 |
at Dec. 31, 2013 | $239,477 | $33,670,337 | $48,857,954 | ($14,948,140) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | 182 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | ' | ' | ' |
Net loss | ($2,997,229) | ($8,328,660) | ($48,857,954) |
Depreciation | ' | ' | 52,694 |
Stock-based compensation-product development | 5,996 | 1,749 | 536,363 |
Stock-based compensation-interest expenses | ' | 5,377,907 | 13,330,984 |
Stock-based compensation-selling, general and admin | 65,958 | 197,017 | 3,486,791 |
Stock-based compensation-professional fees | 172,959 | ' | 217,774 |
Stock-based compensation-market development | ' | 20,989 | 20,989 |
Other non-cash items included in net loss | ' | ' | 341,629 |
Unpaid Interest expense on line of credit | 578,039 | 406,732 | 1,232,944 |
Non-cash imputed interest expenses | 183,988 | 169,248 | 3,351,064 |
Equity instruments issued to settle liabilities | ' | ' | 1,871,718 |
Changes in assets and liabilities: | ' | ' | ' |
Decrease in prepaid expenses | 12,441 | -13,217 | -4,388 |
Increase in accounts payable and accrued liabilities | 64,224 | 134,214 | 1,570,163 |
Increase in advances payable | ' | 5,086 | 3,152,071 |
Increase in interest payable | 505,696 | 499,041 | 4,738,007 |
Increase in other working capital balances | ' | ' | 8,727 |
Cash used in operating activities | -1,407,928 | -1,529,894 | -14,950,424 |
INVESTING ACTIVITIES | ' | ' | ' |
Purchase of equipment | ' | ' | -43,078 |
Cash used in investing activities | ' | ' | -43,078 |
FINANCING ACTIVITIES | ' | ' | ' |
Other financing activities | ' | ' | -115,472 |
Expenditures to repurchase shares | ' | ' | -342,038 |
Proceeds from issuance of shares | ' | ' | 1,512,403 |
Repayment of promissory notes payable | ' | ' | -970,879 |
Proceeds from issuance of promissory notes | ' | ' | 9,418,676 |
Proceeds from lines of credit | 1,426,404 | 1,529,974 | 5,520,370 |
Net cash provided by financing activities | 1,426,404 | 1,529,974 | 15,023,060 |
Net increase in cash | 18,476 | 80 | 29,558 |
Cash, beginning of period | 11,082 | 11,002 | ' |
Cash, end of period | 29,558 | 11,082 | 29,558 |
Supplemental cash flow information: | ' | ' | ' |
Interest expense incurred in connection with options granted in exchange for increase in borrowing limit on existing line of credit financing | ' | 5,377,907 | ' |
Options exercised for reduction in accounts payable | 60,000 | ' | ' |
Options exercised for reduction in interest payable | $30,000 | $1,075,000 | ' |
1_Basis_of_Presentation_Nature
1. Basis of Presentation, Nature of Operations and Going Concern | 12 Months Ended |
Dec. 31, 2013 | |
Basisof Presentation Natureof Operationsand Going Concern [Abstract] | ' |
Basisof Presentation Natureof Operationsand Going Concern | ' |
1. Basis of Presentation, Nature of Operations and Going Concern | |
ALR Technologies Inc. (the “Company”) was incorporated under the laws of the state of Nevada on March 24, 1987 as Mo Betta Corp. On October 21, 1998 the Company acquired a subsidiary, which was subsequently disposed of, through a reverse take-over acquisition. On December 28, 1998, the Company changed its name to ALR Technologies Inc. On April 15, 2008, the Company incorporated a wholly-owned subsidiary in Canada under the name Canada ALRTech Health Systems Inc. The Company has developed a compliance monitoring system that will allow for health care professionals to remotely monitor patient health conditions and provide patient health management. On October 17, 2011 the Company announced that it had received Section 510(k) clearance from the United States Food and Drug Administration for its Health-e-Connect System. The Company is currently seeking pilot programs to deploy its product. | |
These consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”) on a going-concern basis, which presumes the realization of assets and the discharge of liabilities and commitments in the normal course of operations for the foreseeable future. Several adverse conditions cast substantial doubt on the validity of this assumption. The Company has incurred significant losses over the past several fiscal years (2013 - $2,997,229; 2012 - $8,328,660), is currently unable to self-finance its operations, has a working capital deficit of $14,948,140 (2012 - $12,469,812), accumulated deficit of $48,857,954 (2012 - $45,860,725), limited resources, no source of operating cash flow, and no assurance that sufficient funding will be available to conduct continued product development activities. If the Company is able to finance its required product development activities, there is no assurance the Company’s current projects will be commercially viable or profitable. The Company has debts comprised of accounts payable, advances, interest, lines of credit and promissory notes payable totaling $14,982,086 currently due, due on demand or considered delinquent. There is no assurance that the Company will not face additional legal action from creditors regarding delinquent accounts payable, payroll payable, advances, promissory notes and interest payable. Any one or a combination of these above conditions could result in the failure of the business and cause the Company to cease operations | |
The Company’s ability to continue as a going-concern is dependent upon the continued financial support of its creditors and its ability to obtain financing to fund working capital and overhead requirements, fund the development of the Company’s product line and ultimately, the Company’s ability to achieve profitable operations and repay overdue obligations. Management has obtained short-term financing from related parties through lines of credit facilities with available borrowing in principal amount up to $6,000,000(As of December 31, 2013 the total principal balance outstanding was $5,520,540). The resolution of whether the Company is able to continue as a going concern is dependent upon the realization of management’s plans. If additional financing is required, the Company plans to raise needed capital through the exercise of share options and by future common share private placements. There can be no assurance that the Company will be able to raise any additional debt or equity capital from the sources described above, or that the lenders in the line of credit arrangements will maintain the availability of borrowing from the line. If management is unsuccessful in obtaining short-term financing or achieving long-term profitable operations, the Company will be required to cease operations. | |
All of the Company’s debt is either due on demand or is in default, while continuing to accrue interest at its stated rate. The Company will seek to obtain creditors’ consents to delay repayment of the outstanding promissory notes payable and related interest thereto, until it is able to replace this financing with funds generated by operations, recapitalization with replacement debt or from equity financings through private placements. While some of the Company’s creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. In the past, creditors have successfully commenced legal action against the Company to recover debts outstanding. In those instances, the Company was able to obtain financing from related parties to cover the verdict or settlement; however, there is no assurance that the Company would be able to obtain the same financing in the future. If the Company is unsuccessful in obtaining financing to cover any potential verdicts or settlements, the Company will be required to cease operations. | |
The Company’s activities will necessitate significant uses of working capital beyond 2013. Additionally, the Company’s capital requirements will depend on many factors, including the success of the Company’s continued product development and distribution efforts. The Company plans to continue financing its operations with the lines of credit it has available. | |
While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or if additional capital is needed, that such funds, if available, will be obtainable on terms satisfactory to the Company. | |
2_Significant_accounting_polic
2. Significant accounting policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Significant Accounting Policies [Text Block] | ' | |
2. Significant accounting policies | ||
a) | Development stage company | |
Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, developing operating assets and raising capital. Accordingly, the Company is considered to be in the development stage as defined in ASC 915 Development Stage Entities. While the Company generated revenues from its previous generation of products, the Company has not generated any revenues from its current principal operations, and there is no assurance of future revenues. | ||
b) | Principles of consolidation | |
These consolidated financial statements include the accounts of the Company and its integrated wholly-owned subsidiary. All significant inter-company balances and transactions have been eliminated. | ||
c) Comparative information | ||
When necessary, prior years’ consolidated financial statements have been reclassified to conform to the current year presentation. | ||
d) | Options and warrants issued in consideration for debt. | |
The Company allocates the proceeds received from debt between the liability and the options and warrants issued in consideration for the debt, based on their relative fair values, at the time of issuance. The amount allocated to the options or warrants is recorded as additional paid in capital and as a discount to the related debt. The discount is amortized to interest expense on a yield basis over the term of the related debt. | ||
e) | Stock-based compensation | |
The Company follows the fair value method of accounting for stock-based compensation. The Company estimates the fair value of share-based payment awards on the date of grant using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s consolidated financial statements. The Company estimates the fair value of the stock options using the Black-Scholes valuation model. The Black-Scholes valuation model requires the input of highly subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. | ||
f) | Income taxes | |
Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and operating loss carry-forwards that are available to be carried forward to future years for tax purposes. | ||
Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When it is not considered to be more likely than not that a deferred income tax asset will be realized, a valuation allowance is provided for the excess. | ||
The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (“FASB”) ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of December 31, 2013, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. | ||
g) | Use of estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates are reasonable; however, actual results could differ from those estimates. | ||
h) | Loss per share | |
Basic loss per common share is calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted loss per common share is calculated by dividing the net loss by the sum of the weighted average number of common shares outstanding and the dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of the shares issuable upon exercise of stock options and warrants calculated using the treasury stock method. Common equivalent shares are not included in the calculation of the weighted average number of shares outstanding for diluted loss per common shares when the effect would be anti-dilutive. | ||
i) | Contingencies | |
Liabilities for loss contingencies, arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Recoveries from third parties that are probable of realization are separately recorded, and are not offset against the related liability. | ||
j) | Segmented information | |
The Company primarily operates in one reportable segment, the medical devices segment, in the United States. The majority of the Company’s assets are located in United States. | ||
k) | Comprehensive income | |
Comprehensive income is the overall change in the net assets of the Company for a period, other than changes attributable to transactions with stockholders. It is made up of net income and other comprehensive income. Other comprehensive income consists of net income and other gains and losses affecting stockholders’ equity that under generally accepted accounting principles are excluded from net income. The Company has no items of other comprehensive income (loss) in any period presented. Therefore, as presented in the Company’s consolidated statements of loss, net loss equals comprehensive loss. | ||
l) | Fair value of financial instruments | |
The Company’s financial instruments include cash, accounts payable, promissory notes payable and lines of credit. The fair values of these financial instruments approximate their carrying values due to the relatively short periods to maturity of these instruments. For fair value measurement, U.S. GAAP establishes a three-tier hierarchy which prioritizes the inputs used in the valuation methodologies in measuring fair value: | ||
Level 1 — observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||
Level 2 — include other inputs that are directly or indirectly observable in the marketplace. | ||
Level 3 — unobservable inputs which are supported by little or no market activity. | ||
m) Recently issued and adopted accounting pronouncements | ||
i. Adopted | ||
In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (ASU 2011-11). The amendments in ASU 2011-11 require the disclosure of information on offsetting and related arrangements for financial and derivative instruments to enable users of its financial statements to understand the effect of those arrangements on its financial position. Amendments under ASU 2011-11 were to be applied retrospectively for fiscal years, and interim periods within those years, beginning after January 1, 2013. The adoption of this update did not have a material impact on the consolidated financial statements of the Company. | ||
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive (ASU 2013-02). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (AOCI). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The adoption of this update did not have a material impact on the consolidated financial statements of the Company. | ||
ii. Issued, Not Adopted | ||
In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendment provides specific guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this Update are effective for annual and interim periods within those fiscal years beginning after December 15, 2013. The Company is in the process of assessing the impact of this update on its consolidated financial statements. | ||
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. | ||
3_Interest_advances_and_promis
3. Interest, advances and promissory notes payable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Interest Advancesand Promissory Notes Payable [Abstract] | ' | ||||||||
Interest Advancesand Promissory Notes Payable | ' | ||||||||
3. Interest, advances and promissory notes payable | |||||||||
a) Interest payable | |||||||||
A summary of the interest payable activity is as follows: | |||||||||
Balance, December 31, 2011 | $ | 1,930,695 | |||||||
Interest incurred on promissory notes payable | 505,571 | ||||||||
Repayment of interest payable through line of credit | (6,500 | ) | |||||||
Repayment of interest payable through exercise of options | (860,244 | ) | |||||||
Other | (201 | ) | |||||||
Balance, December 31, 2012 | $ | 1,569,321 | |||||||
Interest incurred on promissory notes payable | 505,571 | ||||||||
Other | 125 | ||||||||
Balance, December 31, 2013 | $ | 2,075,017 | |||||||
Interest payable is to the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Relatives of directors | $ | 1,046,523 | $ | 586,697 | |||||
Non-related parties | 1,028,494 | 982,624 | |||||||
$ | 2,075,017 | $ | 1,569,321 | ||||||
All interest payable incurred is from interest incurred at the stated rate of promissory notes issued by the Company. The payment terms, security and any interest payable are based on the underlying promissory notes payable that the Company has outstanding. | |||||||||
b) Advances Payable | |||||||||
A summary of the advances payable activity is as follows: | |||||||||
Balance, December 31, 2011 | $ | 100,527 | |||||||
Advances accrued | 60,000 | ||||||||
Advances repaid from proceeds of line of credit | (54,914 | ) | |||||||
Balance, December 31, 2012 | $ | 105,613 | |||||||
Advances accrued | 30,000 | ||||||||
Advances repaid from proceeds of line of credit | (20,000 | ) | |||||||
Transfer of balance to accounts payable | (115,613 | ) | |||||||
Balance, December 31, 2013 | $ | - | |||||||
Advances payable are to the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Advances payable to: | |||||||||
Companies controlled by directors | $ | - | $ | 65,488 | |||||
Current and former directors | - | 40,125 | |||||||
$ | - | $ | 105,613 | ||||||
Advances payable are unsecured, have no stated terms of interest and are due on demand. | |||||||||
c) Promissory notes payable | |||||||||
A summary of the promissory notes payable activity is as follows: | |||||||||
Balance, December 31, 2013 and 2012 | $ | 2,424,353 | |||||||
Unrelated Lenders | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Unsecured promissory notes payable to unrelated lenders: | |||||||||
Interest at 1% per month, repayable on March 31, 2009, | $ | 450,000 | $ | 450,000 | |||||
due on demand | |||||||||
Interest at 1% per month, with $50,000 repayable on | 887,455 | 887,455 | |||||||
December 31, 2004, $75,000 repayable on August 18, 2007, | |||||||||
$75,000 repayable on November 19, 2007 and the balance | |||||||||
due on demand. All are due on demand, accruing interest at | |||||||||
the same rate. | |||||||||
Interest at 0.625% per month, with $50,000 repayable on | 150,000 | 150,000 | |||||||
October 5, 2004, $40,000 repayable on December 31, 2004, | |||||||||
and $60,000 repayable on July 28, 2006, all due on demand | |||||||||
Non-interest-bearing, repayable on July 17, 2005, due on | 270,912 | 270,912 | |||||||
demand | |||||||||
Non-interest-bearing loan repayable at $25,000 per month | 310,986 | 310,986 | |||||||
beginning October 2009, none repaid to date | |||||||||
Non-interest-bearing loan, due January 15, 2011 (Unpaid) | 125,000 | 125,000 | |||||||
Promissory notes payable, secured by a guarantee from a director | 230,000 | 230,000 | |||||||
and relative of a director, bearing interest at 1% per month, with | |||||||||
$200,000 repayable on July 31, 2003, all due on demand | |||||||||
Total Arms Length Promissory Notes | $ | 2,424,353 | $ | 2,424,353 | |||||
d) Promissory notes payable to related parties: | |||||||||
A summary of the promissory notes payable activity is as follows: | |||||||||
Balance, December 31, 2013 and 2012 | $ | 2,861,966 | |||||||
Relatives of Directors | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Promissory notes payable to relatives of directors collateralized by a | |||||||||
general security agreement on all the assets of the Company, due on | |||||||||
demand: | |||||||||
Interest at 1% per month | $ | 845,619 | $ | 845,619 | |||||
Interest at 1.25% per month | 51,347 | 51,347 | |||||||
Interest at the U.S. bank prime rate plus 1% | 500,000 | 500,000 | |||||||
Promissory notes payable, unsecured, to relatives of a director, | 1,465,000 | 1,465,000 | |||||||
bearing interest at 1% per month, due on demand | |||||||||
Total Related Promissory Notes | $ | 2,861,966 | $ | 2,861,966 | |||||
e) Interest expense | |||||||||
During the year ended December 31, 2013, the Company incurred interest expense of $1,339,399 (2012: $6,461,210) substantially as follows: | |||||||||
- | $505,571 (2012: $505,571) incurred on promissory notes (note 3(c)) and other payables; | ||||||||
- | $578,039 (2012: $406,732) incurred on lines of credit payable as shown in note 4; | ||||||||
- | $183,988 (2012: $169,248) incurred from the calculation of imputed interest on accounts payable outstanding for longer than one year, advances payable and promissory notes payable, which had no stated interest rate; and | ||||||||
- | $70,000 (2012: $nil) incurred on interest and penalties due to the Internal Revenue Service for which Company is seeking relief | ||||||||
- | $nil (2012: $5,377,907) incurred on stock options granted to creditors (note 5 (c)). | ||||||||
4_Lines_of_Credit
4. Lines of Credit | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Linesof Credit Related Party [Abstract] | ' | ||||||||
Linesof Credit Related Party | ' | ||||||||
4. Lines of Credit | |||||||||
As of December 31, 2013, the Company has two lines of credit as follows: | |||||||||
Creditor | Interest | Borrowing | Repayment | Amount | Accrued | Total | Security | Purpose | |
Rate * | Limit | Terms | Outstanding | Interest | |||||
Line of Credit -Chairman | 1% | $4,000,000 | Due on | $ 3,520,540 | $ 451,805 | $3,972,345 | General Security | General Corporate | |
Demand | over Assets | Requirements | |||||||
Line of Credit - Wife of | 1% | $2,000,000 | Due on | $ 2,000,000 | $ 536,385 | $2,536,385 | General Security | General Corporate | |
Chairman | Demand | over Assets | Requirements | ||||||
Total | $ 5,520,540 | $ 988,190 | $ 6,508,730 | ||||||
* per Month | |||||||||
As of December 31, 2012, the Company has two lines of credit as follows: | |||||||||
Creditor | Interest | Borrowing | Repayment | Amount | Accrued | Total | Security | Purpose | |
Rate * | Limit | Terms | Outstanding | Interest | |||||
Line of Credit - Chairman | 1% | $2,500,000 | Due on | $ 2,096,966 | $ 143,936 | $ 2,237,902 | General Security | General Corporate | |
Demand | over Assets | Requirements | |||||||
Line of Credit - Wife of | 1% | $2,000,000 | Due on | $ 2,000,000 | $ 296,385 | $ 2,296,385 | General Security | General Corporate | |
Chairman | Demand | over Assets | Requirements | ||||||
Total | $ 4,093,966 | $ 440,321 | $ 4,534,287 | ||||||
* per month | |||||||||
During the year ended December 31, 2012, as consideration for increasing the borrowing limits of the two lines of credit, the Company has granted 80,000,000 options (note 5(c)). | |||||||||
5_Capital_Stock
5. Capital Stock | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||||||||||||||
5. Capital Stock | |||||||||||||||||||||||||
a) | Authorized share capital | ||||||||||||||||||||||||
500,000,000 shares of common stock with a par value of $0.001 per share and 500,000,000 shares of preferred stock with a par value of $0.001 per share. | |||||||||||||||||||||||||
b) | Issued share capital | ||||||||||||||||||||||||
During the year ended December 31, 2013: | |||||||||||||||||||||||||
On January 2, 2013, a Director of the Company exercised their option to acquire 1,000,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company recorded a reduction of $30,000 in accrued interest due and payable to a Director and Officer of the Company. | |||||||||||||||||||||||||
On November 15, 2013, a consultant of the Company exercised their option to acquire 2,000,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company recorded a reduction of $60,000 of accrued accounts payable to the consultant. | |||||||||||||||||||||||||
During the year ended December 31, 2012: | |||||||||||||||||||||||||
On August 15, 2012, a creditor and relative of a Director and Officer exercised their option to acquire 20,000,000 shares of common stock of the Company at an exercise of $0.05 per share. The creditor applied $1,000,000 in accrued payable due to the creditor on their promissory notes and line of credit. | |||||||||||||||||||||||||
On December 31, 2012, a director of the Company exercised their option to acquire 2,500,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company received a reduction of $75,000 in accrued interest due and payable to a Director and Officer of the Company. | |||||||||||||||||||||||||
b) | Stock options | ||||||||||||||||||||||||
During the year ended December 31, 2013: | |||||||||||||||||||||||||
On January 1, 2013, the Company granted a consultant the options to acquire 1,000,000 shares of its common stock at an exercise price of $0.03 per share for a term of five years. The stock based compensation expense recognized related to the grant of the options was $29,983. During the year ended December 31, 2013, these options were exercised in full. | |||||||||||||||||||||||||
On January 28, 2013, the Company granted the option to acquire 2,300,000 shares of common stock of the Company that vest as follow: | |||||||||||||||||||||||||
- | 700,000 immediately | ||||||||||||||||||||||||
- | 50,000 per month for ten consecutive months, commencing January 31, 2013 for a total of 500,000 | ||||||||||||||||||||||||
- | 200,000 on January 27, 2014 | ||||||||||||||||||||||||
- | 200,000 on January 27, 2015 | ||||||||||||||||||||||||
- | 200,000 in November 2014 subject to approval from to COO of the Company | ||||||||||||||||||||||||
- | 200,000 in December 2015 subject to approval from to COO of the Company | ||||||||||||||||||||||||
- | 300,000 subject to performance vesting criteria | ||||||||||||||||||||||||
The Company recognized compensation expense of $61,956 related to the options that vested during the year. The stock based compensation expense related to the unvested stock options to be recognized if the options vest is $29,979. | |||||||||||||||||||||||||
On March 26, 2013, the Company granted a consultant the options to acquire 500,000 shares of its common stock at an exercise price of $0.03 per share for a term of five years. The option does not vest until the consultant enters into a full-time employment or equivalent role with the Company. Therefore, no compensation expense related to these options has been recognized. The stock based compensation expense related to the unvested stock options to be recognized if the options vest is $17,489. | |||||||||||||||||||||||||
On April 1, 2013, the Company granted a consultant the option to acquire 1,250,000 shares of its common stock at an exercise price of $0.07 per share for a term of five years. The stock-based compensation expense related to the grant of this option was $43,706. | |||||||||||||||||||||||||
On April 9, 2013, the Company granted two consultants each the respective and individual option to acquire 1,000,000 shares (500,000 shares each) of its common stock at an exercise price of $0.03 per share for a term of five years. The option does not vest for either consultant until the individuals enter into a full-time employment or equivalent role with the Company. Therefore, no compensation expense related to these options has been recognized. The stock based compensation expense related to the unvested stock options to be recognized if the options vest is $19,987. | |||||||||||||||||||||||||
On May 1, 2013, the Company granted one consultant the option to acquire 2,000,000 shares of common stock of the Company at an exercise price of $0.03 per share for a period of five years. The stock based compensation expense recognized related to this option grant was $99,937. During the year ended December 31, 2013, these options were exercised in full. | |||||||||||||||||||||||||
On October 1, 2013, the Company granted the option to acquire 500,000 shares of common stock at an exercise price of $0.03 per share to a consultant of the Company. The option to acquire the shares of common stock vests as follows: | |||||||||||||||||||||||||
- | 250,000 at the time of the grant | ||||||||||||||||||||||||
- | 250,000 one year from the date of grant | ||||||||||||||||||||||||
The compensation expense recognized related to this option grant was $9,331. The compensation expense related to the unvested stock options to be recognized if the options vest is $5,598. | |||||||||||||||||||||||||
During the year ended December 31, 2012: | |||||||||||||||||||||||||
On June 27, 2012: | |||||||||||||||||||||||||
- | the 20,000,000 stock options granted to the Chairman on March 6, 2011, in connection with the Company’s credit agreement with the Chairman of the Company, were modified as follows: | ||||||||||||||||||||||||
- All stock options remaining unvested were immediately vested | |||||||||||||||||||||||||
- | The exercise price was reduced from $0.125 per share to $0.07 per share and subsequently reduced to $0.05 per share on December 28, 2012 | ||||||||||||||||||||||||
The stock based compensation expense from vesting of the un-vested options was $1,484,334 and the stock based compensation expense related to the modification of the stock options was $1,280. | |||||||||||||||||||||||||
- | in connection with the Company’s credit agreement with the Chairman of the Company, the Company granted the Chairman an additional 15,750,000 stock options with an exercise price of $0.07 per share and expiry date on March 6, 2016. The stock based compensation expense related to these stock options was $1,130,988. | ||||||||||||||||||||||||
- | the 1,000,000 stock options issued to the President of the Company on May 4, 2011 were modified to reduce the exercise price from $0.20 per share to $0.07 per share. The modification of the stock options resulted in no change in compensation expense. | ||||||||||||||||||||||||
- | the 100,000 stock options issued to a consultant on May 4, 2011, were modified to reduce the exercise price from $0.20 per share to $0.07 per share. The modification of the stock options resulted in no change in compensation expense. This consultant was appointed to the Board of Directors in August 2012. | ||||||||||||||||||||||||
- | the Company granted 700,000 stock options to five consultants with exercise prices of $0.07 per share, expiring on June 27, 2017. Of the 700,000 stock options, 500,000 stock options vest on the grant date and 200,000 have the following vesting terms: | ||||||||||||||||||||||||
- 100,000 vest on May 28, 2013 | |||||||||||||||||||||||||
- 100,000 vest on May 29, 2014 | |||||||||||||||||||||||||
As a result of this grant, the Company incurred $39,354 of stock-based compensation expense which was allocated on the Consolidated Statements of Operations i) $16,616 to general and administrative ii) $20,989 to market development and iii) $1,749 to product development. | |||||||||||||||||||||||||
On August 15, 2012, a creditor and relative of a Director and Officer exercised 20,000,000 stock options at an exercise of $0.05 per share, which the Company applied against $139,755 in accrued interest due and payable to the creditor on promissory notes and a line of credit. | |||||||||||||||||||||||||
On August 21, 2012, the Company granted 500,000 stock options to two newly appointed directors of the Company with an exercise price of $0.06 per share and expiry date on August 16, 2017 and vesting immediately upon the grant date. The stock based compensation expense related to these stock options was $29,975. | |||||||||||||||||||||||||
On December 28, 2012, the Company: | |||||||||||||||||||||||||
- | Reduced the exercise price of 20,000,000 stock options granted to the Chairman on March 6, 2011, from $0.07 per share to $0.05 per share. The stock based compensation expense related to the modification of the stock options was immaterial to recognize; | ||||||||||||||||||||||||
- | in connection with the Company’s credit agreement with the Chairman of the Company, granted 14,250,000 stock options to the Chairman with an exercise price of $0.05 per share and expiry date on December 28, 2017 and vesting immediately upon the grant date. The stock based compensation expense related to these stock options was $612,361; | ||||||||||||||||||||||||
- | granted 50,000,000 stock options to the Chairman, in connection with the Company’s credit agreement with the Chairman of the Company providing for a credit facility of $1,500,000 with interest at 1% per month on amounts drawn down. The stock options have an exercise price of $0.03 per share and expiry date on December 28, 2017 and vesting immediately upon the grant date. The stock based compensation expense related to these stock options was $2,148,944; | ||||||||||||||||||||||||
- | granted an option to the Company’s President to acquire 1,000,000 shares of common stock at an exercise price of $0.03 per share to expire on December 28, 2017. The stock based compensation expense related to these stock options was $42,979; | ||||||||||||||||||||||||
- | granted an option to a director of the Company to acquire 2,500,000 shares of common stock at an exercise price of $0.03 per share to expire on December 28, 2017. The stock based compensation expense related to these stock options was $107,447; and | ||||||||||||||||||||||||
- | reduced the exercise price for previously granted stock options to acquire 37,750,000 shares of the Company’s common stock from $0.07 per share to $0.05 per share. There was no additional compensation expense related to this modification of stock options. | ||||||||||||||||||||||||
On December 31, 2012, a director of the Company exercised 2,500,000 stock options at an exercise price of $0.03 per share, which the Company applied against accrued interest due and payable to a Director and Officer of the Company upon the Company receiving written approval from the Director and Officer to use interest accrued of $75,000 as consideration for the exercise price of the consultant’s 2,500,000 stock options. As a result of this exercise of stock options, the Company issued 2,500,000 shares of common stock. | |||||||||||||||||||||||||
A summary of stock option activity is as follows: | |||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||||
Outstanding, beginning of period | 125,000,000 | $ | 0.04 | 62,800,000 | $ | 0.04 | |||||||||||||||||||
Granted | 8,550,000 | 0.04 | 84,700,000 | 0.03 | |||||||||||||||||||||
Exercised | (3,000,000 | ) | (0.03 | ) | (22,500,000 | ) | (0.05 | ) | |||||||||||||||||
Outstanding, end of period | 130,550,000 | $ | 0.04 | 125,000,000 | $ | 0.04 | |||||||||||||||||||
Exercisable, end of period | 127,800,000 | $ | 0.04 | 124,800,000 | $ | 0.04 | |||||||||||||||||||
The options outstanding at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Expiry Date | Options | Exercise | Intrinsic | Options | Exercise | Intrinsic | |||||||||||||||||||
Price | Value | Price | Value | ||||||||||||||||||||||
7-Mar-15 | 20,000,000 | $ | 0.05 | - | 20,000,000 | $ | 0.05 | - | |||||||||||||||||
30-Sep-15 | 1,200,000 | $ | 0.25 | - | 1,200,000 | $ | 0.25 | - | |||||||||||||||||
29-Nov-15 | - | $ | 0.05 | - | - | $ | 0.05 | - | |||||||||||||||||
6-Mar-16 | 35,750,000 | $ | 0.05 | - | 35,750,000 | $ | 0.05 | - | |||||||||||||||||
4-May-16 | 1,000,000 | $ | 0.05 | - | 1,000,000 | $ | 0.05 | - | |||||||||||||||||
23-May-16 | 100,000 | $ | 0.05 | - | 100,000 | $ | 0.05 | - | |||||||||||||||||
27-May-17 | 700,000 | $ | 0.05 | - | 700,000 | $ | 0.05 | - | |||||||||||||||||
31-May-17 | 500,000 | $ | 0.25 | - | 500,000 | $ | 0.05 | - | |||||||||||||||||
16-Aug-17 | 500,000 | $ | 0.05 | - | 500,000 | $ | 0.05 | - | |||||||||||||||||
28-Dec-17 | 14,250,000 | $ | 0.05 | - | 14,250,000 | $ | 0.05 | - | |||||||||||||||||
28-Dec-17 | 51,000,000 | $ | 0.03 | - | 51,000,000 | $ | 0.03 | - | |||||||||||||||||
28-Jan-18 | 2,300,000 | $ | 0.05 | - | - | - | - | ||||||||||||||||||
26-Mar-18 | 500,000 | $ | 0.03 | - | - | - | - | ||||||||||||||||||
1-Apr-18 | 1,250,000 | $ | 0.07 | - | - | - | - | ||||||||||||||||||
9-Apr-18 | 1,000,000 | $ | 0.03 | - | - | - | - | ||||||||||||||||||
1-Oct-18 | 500,000 | $ | 0.03 | - | - | - | - | ||||||||||||||||||
Total | 130,550,000 | $ | 0.04 | - | 125,000,000 | $ | 0.04 | - | |||||||||||||||||
Weighted Average Remaining | 3.03 | 3.98 | |||||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||||
The Company uses the fair value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined using the Black-Scholes Option Pricing Model based on the following weighted average assumptions: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Risk-free interest rate | 2.52 | % | 2.52 | % | |||||||||||||||||||||
Expected life | 5 years | 5 years | |||||||||||||||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||||||||||||||
Expected volatility | 299 | % | 306 | % | |||||||||||||||||||||
Forfeiture rate | 0 | % | 0 | % | |||||||||||||||||||||
The weighted average fair value for the options granted during 2013 was $0.04 (2012: $0.03). | |||||||||||||||||||||||||
The fair value of the stock options granted was allocated as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||
Directors and relatives of Directors | $ | - | $ | 5,377,907 | |||||||||||||||||||||
Total interest expense director and relative of directors | - | 5,377,907 | |||||||||||||||||||||||
Selling, general and administration: | |||||||||||||||||||||||||
Directors and officers | - | 180,402 | |||||||||||||||||||||||
Non-employees | 65,958 | 16,615 | |||||||||||||||||||||||
Total interest expense selling, general and administration | 65,958 | 197,017 | |||||||||||||||||||||||
Product development: | |||||||||||||||||||||||||
Non-employees | 5,996 | 1,749 | |||||||||||||||||||||||
Total interest expense product development | 5,996 | 1,749 | |||||||||||||||||||||||
Market development : | |||||||||||||||||||||||||
Non-employees | - | 20,989 | |||||||||||||||||||||||
Total interest expense market development | - | 20,989 | |||||||||||||||||||||||
Professional fees: | |||||||||||||||||||||||||
Non-employees | 172,959 | - | |||||||||||||||||||||||
Total interest expense professional fees | 172,959 | - | |||||||||||||||||||||||
Total interest expense stock options granted | $ | 244,913 | $ | 5,597,662 | |||||||||||||||||||||
6_Contingencies
6. Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Loss Contingency [Abstract] | ' |
Contingencies Disclosure [Text Block] | ' |
6. Contingencies | |
Accounts payable and accrued liabilities as of December 31, 2013 include $180,666 (2012 - $180,666) of amounts owing to a supplier, which the Company is in the process of disputing. The outcome of this matter cannot be determined at this time. Any adjustment will be recorded in the period that an agreement with the supplier is reached and the amount becomes determinable. | |
The Company has had three judgments made against it relating to overdue promissory notes and accrued interest and a fourth creditor has demanded repayment of an overdue promissory note and accrued interest. To date, the Company has not repaid any of these promissory notes and related accrued interest and could be subject to further action. The legal liability, totaling $934,000, of these promissory notes and related accrued interest have been fully recognized and recorded by the Company. | |
7_Related_party_transactions_a
7. Related party transactions and balances | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||
7. Related party transactions and balances | |||||||||
2013 | 2012 | ||||||||
Development costs: | |||||||||
Consulting services rendered by an individual who was a director and | $ | - | $ | 30,000 | |||||
officer of the Company in the role as officer of the Company | |||||||||
Interest expense: | |||||||||
Promissory notes issued to relatives of the Chairman & Chief Executive | 306,226 | 306,226 | |||||||
Officer of the Company | |||||||||
Lines of credit from the Chairman & Chief Executive Officer of the | 578,039 | 406,732 | |||||||
Company and his spouse | |||||||||
Stock options granted to the Chairman & Chief Executive Officer | - | 5,377,907 | |||||||
Selling, general and administration: | |||||||||
Consulting fees to the Chairman & Chief Executive Officer of the | 189,600 | 189,600 | |||||||
Company accrued on the line of credit extended to the Company | |||||||||
Consulting fees to a director of the Company in his roles as a consultant to | 126,000 | - | |||||||
the Company | |||||||||
Stock options granted to directors of the Company, including a director | $ | - | $ | 180,402 | |||||
who is also the President and COO of the Company | |||||||||
Except as discussed in the next paragraph, all transactions with related parties were incurred in the normal course of operations and measured at the exchange amount, which is the amount of consideration established and agreed upon by the transacting parties. | |||||||||
Interest on promissory notes payable to related parties, management compensation and compensation paid to a relative of a director have been recorded at the exchange amount, which is the amount agreed to by the parties. Options granted to related parties have been recorded at their estimated fair value as disclosed note 5(c). | |||||||||
Included in accounts payable is $12,000 (2012 - $nil) due to a Director of the Company. | |||||||||
8_Commitments
8. Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Compensation Related Costs [Abstract] | ' | ||||
Compensation Related Costs, General [Text Block] | ' | ||||
8. Commitments: | |||||
The Company has annual compensation arrangements with the following individuals: | |||||
Sidney Chan | $ | 180,000 | |||
Lawrence Weinstein | $ | 156,000 | |||
The contracts are automatically renewed annually and may be terminated by the Company at any time, effective thirty or sixty days after delivery of notice, without any further compensation. | |||||
The terms of Mr. Chan’s contract provides for monthly consulting fees of $15,000 per month and vehicle allowance of $800 per month as Chief Executive Officer of the Company. The contract also provides for a commission of 1% of net sales during the term of the agreement. The initial term of the contract is for one year and automatically renews for continuous one year terms. | |||||
The terms of Mr. Weinstein’s contract provides for periodic increases in the amount of monthly compensation following the first year as President and Chief Operating Officer of the Company. Since the start of 2011, Mr. Weinstein earns $13,000 per month as agreed upon by Mr. Weinstein and the other directors through his employment arrangement. The contract is for one year and automatically renews for continuous one year terms. | |||||
In addition, if more than 50% of the Company’s stock or assets are sold, Messrs. Chan will be compensated for entering into non-compete agreements based on the selling price of the Company or its assets as follows: | |||||
2% of sales price up to $24,999,999 plus | |||||
3% of sales price between $25,000,000 and $49,999,999 plus | |||||
4% of sales price between $50,000,000 and $199,999,999 plus | |||||
5% of sales price in excess of $200,000,000 | |||||
Any other amounts distributed to each key employee are to be determined by the Board of Directors. | |||||
9_Financial_instruments
9. Financial instruments | 12 Months Ended | ||
Dec. 31, 2013 | |||
Disclosure Text Block Supplement [Abstract] | ' | ||
Financial Instruments Disclosure [Text Block] | ' | ||
9. Financial instruments | |||
The Company’s financial instruments consist of cash, accounts payable and accrued liabilities, advances payable, interest payable and promissory notes payable. | |||
Fair value | |||
The fair values of cash and certain accounts payable and accrued liabilities approximate their carrying values due to the relatively short periods to maturity of these instruments. | |||
Certain accounts payable have been outstanding longer than one year. The Company has recorded imputed interest at a rate of 1% per month over the period the payables have been outstanding for longer than one year, with a corresponding amount recognized in additional paid-in capital. The calculated amount represents the implicit compensation for the use of funds beyond a reasonable term for regular trade payables. | |||
For the purposes of fair value analysis, promissory notes payable can be separated into two classes of financial liabilities. | |||
i. Interest-bearing promissory notes, lines of credit and related interest payable | |||
ii. Non-interest-bearing promissory notes past due | |||
The interest-bearing promissory notes payable are all delinquent and have continued to accrue interest at their stated rates. The Company currently does not have the funds to extinguish these debts and will continue to incur interest until such time as the liabilities are extinguished. There is not an active market for delinquent loans for a Company with a similar financial position. Management asserts the carrying values of the promissory notes and related interest payable are a reasonable estimate of fair value as they represent the Company’s best estimate of their legal obligation for these debts. As there is no observable market for interest rates on similar promissory notes, the fair value was estimated using level 2 inputs in the fair value hierarchy. | |||
The Company has three non-interest-bearing promissory notes payable past due. The first is several years delinquent and there have been no renegotiated repayment terms. There is not an active market for default loans not bearing interest nor is there an observable market for lending to companies with a financial position similar to the Company. The Company has recorded imputed interest at a rate of 1% per month over the life of the promissory notes, with a corresponding amount recognized in additional paid-in capital representing the implicit compensation for the use of funds. Management asserts the payment date for these amounts cannot be reasonably determined. Management further asserts there is not a determinable interest rate for arm’s-length borrowings based on the current financial position of the Company and asserts the carrying value is the best estimate of the Company’s legal liability and represents the fair value for the promissory note. This would be considered a level 2 input in the fair value hierarchy. | |||
The fair value of advances payable cannot be determined as they are related party amounts that have no stated terms of repayment. There is no market for similar instruments. The Company has recorded imputed interest at a rate of 1% per month over the life of the advances payable, with a corresponding amount recognized in additional paid-in capital representing the implicit compensation for the use of funds. | |||
Credit risk | |||
Financial instruments that potentially subject the Company to credit risk consist of cash. The Company only has an immaterial cash balance and is not exposed to significant credit risk. | |||
Market risk | |||
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. | |||
i. Interest rate risk | |||
Interest rate risk consists of two components: | |||
a) | Cash Flow Risk | ||
To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk. | |||
The Company is exposed to interest rate cash flow risk on promissory notes payable of $500,000, which incur a variable interest rate of prime plus 1%. A hypothetical change of 1% on interest rates would increase or decrease net loss and comprehensive loss by $5,000. | |||
b) | Price Risk | ||
To the extent that changes in prevailing market interest rates differ from the interest rate on the Company’s monetary assets and liabilities, the Company is exposed to price risk. | |||
The Company’s promissory notes payable consist of $500,000 of variable interest rate notes and $4,786,319 of fixed interest rate notes. All of these notes are past due and are currently due on demand while interest continues to accrue. Due to the delinquency of the fixed interest rate promissory notes payable, there is no active market for these instruments and fluctuations in market interest rates do not have a significant impact on their estimated fair values as of December 31, 2013. | |||
At December 31, 2013, the effect on the net loss and comprehensive loss of a hypothetical change of 1% in market interest rate cannot be reasonably determined. | |||
Foreign currency risk | |||
The Company incurs certain accounts payable, advances payable and expenses in Canadian dollars and is exposed to fluctuations in changes in exchange rates between the US and Canadian dollars. As at December 31, 2012, the effect on net loss and comprehensive loss of a hypothetical change of 10% between the US and Canadian dollar would not be material. The Company has not entered into any foreign currency contracts to mitigate risk. | |||
10_Income_taxes
10. Income taxes: | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
10. Income taxes: | |||||||||
The provision for income taxes differs from the result that would be obtained by applying the statutory tax rate of 34% (2012 - 34%) to income before income taxes. The difference results from the following items: | |||||||||
2013 | 2012 | ||||||||
Computed expected benefit of income taxes | $ | (1,019,058 | ) | $ | (2,831,744 | ) | |||
Stock-based compensation | 83,270 | 1,903,205 | |||||||
Non-deductible interest expense | 62,556 | 57,544 | |||||||
Permanent differences | 718,312 | - | |||||||
Increase in valuation allowance | 154,920 | 870,995 | |||||||
Income tax provision | $ | - | $ | - | |||||
The components of the net deferred income tax asset, the statutory tax rate and the amount of the valuation allowance are as follows: | |||||||||
2013 | 2012 | ||||||||
Net operating loss carried forward | $ | 29,141,241 | $ | 28,685,595 | |||||
Tax rate | 34 | % | 34 | % | |||||
Deferred income tax assets | 9,908,022 | 9,753,102 | |||||||
Valuation allowance | (9,908,022 | ) | (9,753,102 | ) | |||||
Net deferred income tax asset | $ | - | $ | - | |||||
The potential benefit of the deferred income tax asset has not been recognized in these financial statements since it cannot be assured that it is more likely than not that such benefit will be utilized in future years. The Company believes that the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred income tax assets such that a full valuation allowance has been recorded. | |||||||||
The operating losses amounting to $29,141,241 for utilization in the United States of America, the jurisdiction where they were incurred, will expire between 2019 and 2033 if they are not used. The following table lists the fiscal year in which the loss was incurred and the expiration date of the operating loss carry-forwards: | |||||||||
Fiscal Year | Amount | Expiry Date | |||||||
1999 | $ | 88,022 | 2019 | ||||||
2000 | 4,425,866 | 2020 | |||||||
2001 | 3,681,189 | 2021 | |||||||
2002 | 2,503,951 | 2022 | |||||||
2003 | 2,775,900 | 2023 | |||||||
2004 | 1,250,783 | 2024 | |||||||
2005 | 1,304,283 | 2025 | |||||||
2006 | 1,532,322 | 2026 | |||||||
2007 | 1,479,818 | 2027 | |||||||
2008 | 1,599,919 | 2028 | |||||||
2009 | 1,723,146 | 2029 | |||||||
2010 | 822,678 | 2030 | |||||||
2011 | 1,746,615 | 2031 | |||||||
2012 | 1,638,421 | 2032 | |||||||
2013 | 2,568,328 | 2033 | |||||||
Total | $ | 29,141,241 | |||||||
11_Subsequent_Events
11. Subsequent Events: | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
11. Subsequent Events: | ||
The Company has evaluated subsequent events through the date the consolidated financial statements were issued and filed with SEC. The Company has determined that the following events warrant disclosure: | ||
a) | On February 5, 2014, a default judgment was rendered against the Company whereby it was ordered to repay $125,000 of loan principal in addition to interest of 8% per annum from January 16, 2011 until the date the loan is repaid along with costs of the action. The loan principal is part of the component of the judgments disclosed in note 6. The interest of approximately $30,000 is not included in note 6 as previously, there was no stated rate of interest on that note. To date, the Company has not repaid any of these amounts owing. | |
b) | On February 7, 2014, the Company: | |
i. | granted a consultant the option to acquire 300,000 shares of common stock at an exercise price of $0.05 per share for a term of five years. Options in respect of 150,000 shares would vest immediately with the balance vesting after 12 months. | |
ii. | granted a consultant the option to acquire 400,000 shares of common stock at an exercise price $0.03 per share for a term of five years. Options vest as follow: | |
- | options in respect of 100,000 shares vest immediately, | |
- | options in respect of 100,000 shares vest at the time a pilot project for the Company’s Health-e-Connect is initiated with a specified corporation, | |
- | options in respect of 100,000 shares vest at the time a software sharing deal has been executed between the Company and a major specified corporation, and | |
- | options in respect of 100,000 shares vest at the time a national, co promotable deal for the Company’s Health-e-Connect has been executed between the Company and a major specified corporation; | |
Provided that those performance conditions are met or complied with in form and substance reasonably satisfactory to the Company by March 15, 2015. | ||
c) | On March 24, 2014, the Company agreed to the following in exchange for amending the borrowing limit on its line of credit with the Chairman increased from $4,000,000 to $5,500,000: | |
i. | grant options to acquire 83,333,500 shares of common stock of the Company at a price of $0.03 per share for a term of five years, | |
ii. | modify the exercise price of the option to acquire 35,750,000 shares of common stock of the Company, granted June 2012, from $0.05 per share to $0.03 per share, | |
iii. | modify the exercise price of the option to acquire 14,250,000 shares of common stock of the Company, granted December 2012, from $0.05 per share to $0.03 per share, | |
iv. | modify the exercise price of the option granted January 2011 to the spouse of the Chairman, to acquire 20,000,000 shares of common stock of the Company from $0.05 per share to $0.03 per share, and | |
v. | grant options the spouse of the Chairman to acquire 26,666,700 shares of common stock of the Company at an exercise price of $0.03 per share for a term of five years. | |
The Company and the Chairman are in the process of amending the line of credit agreement. | ||
3_Interest_advances_and_promis1
3. Interest, advances and promissory notes payable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Interest Advancesand Promissory Notes Payable [Abstract] | ' | ||||||||
Schedule of Interest Payable Activity | ' | ||||||||
Balance, December 31, 2011 | $ | 1,930,695 | |||||||
Interest incurred on promissory notes payable | 505,571 | ||||||||
Repayment of interest payable through line of credit | (6,500 | ) | |||||||
Repayment of interest payable through exercise of options | (860,244 | ) | |||||||
Other | (201 | ) | |||||||
Balance, December 31, 2012 | $ | 1,569,321 | |||||||
Interest incurred on promissory notes payable | 505,571 | ||||||||
Other | 125 | ||||||||
Balance, December 31, 2013 | $ | 2,075,017 | |||||||
Schedule of Interest Payable | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Relatives of directors | $ | 1,046,523 | $ | 586,697 | |||||
Non-related parties | 1,028,494 | 982,624 | |||||||
$ | 2,075,017 | $ | 1,569,321 | ||||||
Schedule of Advances Payable Activity | ' | ||||||||
Balance, December 31, 2011 | $ | 100,527 | |||||||
Advances accrued | 60,000 | ||||||||
Advances repaid from proceeds of line of credit | (54,914 | ) | |||||||
Balance, December 31, 2012 | $ | 105,613 | |||||||
Advances accrued | 30,000 | ||||||||
Advances repaid from proceeds of line of credit | (20,000 | ) | |||||||
Transfer of balance to accounts payable | (115,613 | ) | |||||||
Balance, December 31, 2013 | $ | - | |||||||
Schedule of Advances Payable | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Advances payable to: | |||||||||
Companies controlled by directors | $ | - | $ | 65,488 | |||||
Current and former directors | - | 40,125 | |||||||
$ | - | $ | 105,613 | ||||||
Schedule of Promissory Notes Payable | ' | ||||||||
Balance, December 31, 2013 and 2012 | $ | 2,424,353 | |||||||
Schedule of Activity of Promissory Notes Payable to Unrelated Lenders | ' | ||||||||
Unrelated Lenders | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Unsecured promissory notes payable to unrelated lenders: | |||||||||
Interest at 1% per month, repayable on March 31, 2009, | $ | 450,000 | $ | 450,000 | |||||
due on demand | |||||||||
Interest at 1% per month, with $50,000 repayable on | 887,455 | 887,455 | |||||||
December 31, 2004, $75,000 repayable on August 18, 2007, | |||||||||
$75,000 repayable on November 19, 2007 and the balance | |||||||||
due on demand. All are due on demand, accruing interest at | |||||||||
the same rate. | |||||||||
Interest at 0.625% per month, with $50,000 repayable on | 150,000 | 150,000 | |||||||
October 5, 2004, $40,000 repayable on December 31, 2004, | |||||||||
and $60,000 repayable on July 28, 2006, all due on demand | |||||||||
Non-interest-bearing, repayable on July 17, 2005, due on | 270,912 | 270,912 | |||||||
demand | |||||||||
Non-interest-bearing loan repayable at $25,000 per month | 310,986 | 310,986 | |||||||
beginning October 2009, none repaid to date | |||||||||
Non-interest-bearing loan, due January 15, 2011 (Unpaid) | 125,000 | 125,000 | |||||||
Promissory notes payable, secured by a guarantee from a director | 230,000 | 230,000 | |||||||
and relative of a director, bearing interest at 1% per month, with | |||||||||
$200,000 repayable on July 31, 2003, all due on demand | |||||||||
Total Arms Length Promissory Notes | $ | 2,424,353 | $ | 2,424,353 | |||||
Schedule of Notes Payable Related Parties | ' | ||||||||
Balance, December 31, 2013 and 2012 | $ | 2,861,966 | |||||||
Schedule of Note Payable Activity Related Parties | ' | ||||||||
Relatives of Directors | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Promissory notes payable to relatives of directors collateralized by a | |||||||||
general security agreement on all the assets of the Company, due on | |||||||||
demand: | |||||||||
Interest at 1% per month | $ | 845,619 | $ | 845,619 | |||||
Interest at 1.25% per month | 51,347 | 51,347 | |||||||
Interest at the U.S. bank prime rate plus 1% | 500,000 | 500,000 | |||||||
Promissory notes payable, unsecured, to relatives of a director, | 1,465,000 | 1,465,000 | |||||||
bearing interest at 1% per month, due on demand | |||||||||
Total Related Promissory Notes | $ | 2,861,966 | $ | 2,861,966 |
4_Lines_of_Credit_Tables
4. Lines of Credit (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||
Linesof Credit Related Party [Abstract] | ' | ' | ||||||||||||||||
Schedule Line of Credit Related Party | ' | ' | ||||||||||||||||
Creditor | Interest | Borrowing | Repayment | Amount | Accrued | Total | Security | Purpose | Creditor | Interest | Borrowing | Repayment | Amount | Accrued | Total | Security | Purpose | |
Rate * | Limit | Terms | Outstanding | Interest | Rate * | Limit | Terms | Outstanding | Interest | |||||||||
Line of Credit -Chairman | 1% | $4,000,000 | Due on | $ 3,520,540 | $ 451,805 | $3,972,345 | General Security | General Corporate | Line of Credit - Chairman | 1% | $2,500,000 | Due on | $ 2,096,966 | $ 143,936 | $ 2,237,902 | General Security | General Corporate | |
Demand | over Assets | Requirements | Demand | over Assets | Requirements | |||||||||||||
Line of Credit - Wife of | 1% | $2,000,000 | Due on | $ 2,000,000 | $ 536,385 | $2,536,385 | General Security | General Corporate | Line of Credit - Wife of | 1% | $2,000,000 | Due on | $ 2,000,000 | $ 296,385 | $ 2,296,385 | General Security | General Corporate | |
Chairman | Demand | over Assets | Requirements | Chairman | Demand | over Assets | Requirements | |||||||||||
Total | $ 5,520,540 | $ 988,190 | $ 6,508,730 | Total | $ 4,093,966 | $ 440,321 | $ 4,534,287 |
5_Capital_Stock_Tables
5. Capital Stock (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||||||||||||||
Outstanding, beginning of period | 125,000,000 | $ | 0.04 | 62,800,000 | $ | 0.04 | |||||||||||||||||||
Granted | 8,550,000 | 0.04 | 84,700,000 | 0.03 | |||||||||||||||||||||
Exercised | (3,000,000 | ) | (0.03 | ) | (22,500,000 | ) | (0.05 | ) | |||||||||||||||||
Outstanding, end of period | 130,550,000 | $ | 0.04 | 125,000,000 | $ | 0.04 | |||||||||||||||||||
Exercisable, end of period | 127,800,000 | $ | 0.04 | 124,800,000 | $ | 0.04 | |||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | ' | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Expiry Date | Options | Exercise | Intrinsic | Options | Exercise | Intrinsic | |||||||||||||||||||
Price | Value | Price | Value | ||||||||||||||||||||||
7-Mar-15 | 20,000,000 | $ | 0.05 | - | 20,000,000 | $ | 0.05 | - | |||||||||||||||||
30-Sep-15 | 1,200,000 | $ | 0.25 | - | 1,200,000 | $ | 0.25 | - | |||||||||||||||||
29-Nov-15 | - | $ | 0.05 | - | - | $ | 0.05 | - | |||||||||||||||||
6-Mar-16 | 35,750,000 | $ | 0.05 | - | 35,750,000 | $ | 0.05 | - | |||||||||||||||||
4-May-16 | 1,000,000 | $ | 0.05 | - | 1,000,000 | $ | 0.05 | - | |||||||||||||||||
23-May-16 | 100,000 | $ | 0.05 | - | 100,000 | $ | 0.05 | - | |||||||||||||||||
27-May-17 | 700,000 | $ | 0.05 | - | 700,000 | $ | 0.05 | - | |||||||||||||||||
31-May-17 | 500,000 | $ | 0.25 | - | 500,000 | $ | 0.05 | - | |||||||||||||||||
16-Aug-17 | 500,000 | $ | 0.05 | - | 500,000 | $ | 0.05 | - | |||||||||||||||||
28-Dec-17 | 14,250,000 | $ | 0.05 | - | 14,250,000 | $ | 0.05 | - | |||||||||||||||||
28-Dec-17 | 51,000,000 | $ | 0.03 | - | 51,000,000 | $ | 0.03 | - | |||||||||||||||||
28-Jan-18 | 2,300,000 | $ | 0.05 | - | - | - | - | ||||||||||||||||||
26-Mar-18 | 500,000 | $ | 0.03 | - | - | - | - | ||||||||||||||||||
1-Apr-18 | 1,250,000 | $ | 0.07 | - | - | - | - | ||||||||||||||||||
9-Apr-18 | 1,000,000 | $ | 0.03 | - | - | - | - | ||||||||||||||||||
1-Oct-18 | 500,000 | $ | 0.03 | - | - | - | - | ||||||||||||||||||
Total | 130,550,000 | $ | 0.04 | - | 125,000,000 | $ | 0.04 | - | |||||||||||||||||
Weighted Average Remaining | 3.03 | 3.98 | |||||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Risk-free interest rate | 2.52 | % | 2.52 | % | |||||||||||||||||||||
Expected life | 5 years | 5 years | |||||||||||||||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||||||||||||||
Expected volatility | 299 | % | 306 | % | |||||||||||||||||||||
Forfeiture rate | 0 | % | 0 | % | |||||||||||||||||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||
Directors and relatives of Directors | $ | - | $ | 5,377,907 | |||||||||||||||||||||
Total interest expense director and relative of directors | - | 5,377,907 | |||||||||||||||||||||||
Selling, general and administration: | |||||||||||||||||||||||||
Directors and officers | - | 180,402 | |||||||||||||||||||||||
Non-employees | 65,958 | 16,615 | |||||||||||||||||||||||
Total interest expense selling, general and administration | 65,958 | 197,017 | |||||||||||||||||||||||
Product development: | |||||||||||||||||||||||||
Non-employees | 5,996 | 1,749 | |||||||||||||||||||||||
Total interest expense product development | 5,996 | 1,749 | |||||||||||||||||||||||
Market development : | |||||||||||||||||||||||||
Non-employees | - | 20,989 | |||||||||||||||||||||||
Total interest expense market development | - | 20,989 | |||||||||||||||||||||||
Professional fees: | |||||||||||||||||||||||||
Non-employees | 172,959 | - | |||||||||||||||||||||||
Total interest expense professional fees | 172,959 | - | |||||||||||||||||||||||
Total interest expense stock options granted | $ | 244,913 | $ | 5,597,662 |
7_Related_party_transactions_a1
7. Related party transactions and balances (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Development costs: | |||||||||
Consulting services rendered by an individual who was a director and | $ | - | $ | 30,000 | |||||
officer of the Company in the role as officer of the Company | |||||||||
Interest expense: | |||||||||
Promissory notes issued to relatives of the Chairman & Chief Executive | 306,226 | 306,226 | |||||||
Officer of the Company | |||||||||
Lines of credit from the Chairman & Chief Executive Officer of the | 578,039 | 406,732 | |||||||
Company and his spouse | |||||||||
Stock options granted to the Chairman & Chief Executive Officer | - | 5,377,907 | |||||||
Selling, general and administration: | |||||||||
Consulting fees to the Chairman & Chief Executive Officer of the | 189,600 | 189,600 | |||||||
Company accrued on the line of credit extended to the Company | |||||||||
Consulting fees to a director of the Company in his roles as a consultant to | 126,000 | - | |||||||
the Company | |||||||||
Stock options granted to directors of the Company, including a director | $ | - | $ | 180,402 | |||||
who is also the President and COO of the Company | |||||||||
8_Commitments_Tables
8. Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Compensation Related Costs [Abstract] | ' | ||||
Schedule of Officers' Compensation | ' | ||||
Sidney Chan | $ | 180,000 | |||
Lawrence Weinstein | $ | 156,000 |
10_Income_taxes_Tables
10. Income taxes: (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Computed expected benefit of income taxes | $ | (1,019,058 | ) | $ | (2,831,744 | ) | |||
Stock-based compensation | 83,270 | 1,903,205 | |||||||
Non-deductible interest expense | 62,556 | 57,544 | |||||||
Permanent differences | 718,312 | - | |||||||
Increase in valuation allowance | 154,920 | 870,995 | |||||||
Income tax provision | $ | - | $ | - | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Net operating loss carried forward | $ | 29,141,241 | $ | 28,685,595 | |||||
Tax rate | 34 | % | 34 | % | |||||
Deferred income tax assets | 9,908,022 | 9,753,102 | |||||||
Valuation allowance | (9,908,022 | ) | (9,753,102 | ) | |||||
Net deferred income tax asset | $ | - | $ | - | |||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | ' | ||||||||
Fiscal Year | Amount | Expiry Date | |||||||
1999 | $ | 88,022 | 2019 | ||||||
2000 | 4,425,866 | 2020 | |||||||
2001 | 3,681,189 | 2021 | |||||||
2002 | 2,503,951 | 2022 | |||||||
2003 | 2,775,900 | 2023 | |||||||
2004 | 1,250,783 | 2024 | |||||||
2005 | 1,304,283 | 2025 | |||||||
2006 | 1,532,322 | 2026 | |||||||
2007 | 1,479,818 | 2027 | |||||||
2008 | 1,599,919 | 2028 | |||||||
2009 | 1,723,146 | 2029 | |||||||
2010 | 822,678 | 2030 | |||||||
2011 | 1,746,615 | 2031 | |||||||
2012 | 1,638,421 | 2032 | |||||||
2013 | 2,568,328 | 2033 | |||||||
Total | $ | 29,141,241 |
1_Basis_of_Presentation_Nature1
1. Basis of Presentation, Nature of Operations and Going Concern (Details) (USD $) | 12 Months Ended | 182 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Basisof Presentation Natureof Operationsand Going Concern [Abstract] | ' | ' | ' |
Net Income (Loss) Attributable to Parent | ($2,997,229) | ($8,328,660) | ($48,857,954) |
Working Capital | 14,948,140 | 12,469,812 | 14,948,140 |
Cumulative Earnings (Deficit) | 48,857,954 | 45,860,725 | 48,857,954 |
Debt, Current | 14,982,086 | ' | 14,982,086 |
Two Lines of Credit Facility, Maximum Borrowing Capacity | 6,000,000 | ' | 6,000,000 |
Two Lines of Credit Facility, Amount Outstanding | $5,520,540 | $4,093,966 | $5,520,540 |
3_Interest_advances_and_promis2
3. Interest, advances and promissory notes payable (Details) (USD $) | 12 Months Ended | 182 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Interest Advancesand Promissory Notes Payable [Abstract] | ' | ' | ' |
Interest Expense | $1,339,399 | $6,461,210 | $26,111,436 |
undefined | 505,571 | 505,571 | 505,571 |
Interest Expense Incurred on Lines of Credit Payable | 578,039 | 406,732 | ' |
Interest Expense Incurred on Imputed Interest on Accounts Payable, Advances Payable and Promissory Notes Payable | 183,988 | 169,248 | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 70,000 | ' | ' |
Interest Expense Incurred on Stock Options Granted to Creditors | ' | $5,377,907 | ' |
3_Interest_advances_and_promis3
3. Interest, advances and promissory notes payable (Details) - Summary of the Interest Payable Activity (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of the Interest Payable Activity [Abstract] | ' | ' | ' |
$2,075,017 | $1,569,321 | $1,930,695 | |
Interest incurred on promissory notes payable | 505,571 | 505,571 | ' |
Repayment of interest payable through line of credit | ' | -6,500 | ' |
Repayment of interest payable through exercise of options | ' | -860,244 | ' |
Other | 125 | -201 | ' |
$2,075,017 | $1,569,321 | $1,930,695 |
3_Interest_advances_and_promis4
3. Interest, advances and promissory notes payable (Details) - Interest Payable (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest Payable [Abstract] | ' | ' | ' |
Relatives of directors | $1,046,523 | $586,697 | ' |
Non-related parties | 1,028,494 | 982,624 | ' |
$2,075,017 | $1,569,321 | $1,930,695 |
3_Interest_advances_and_promis5
3. Interest, advances and promissory notes payable (Details) - Summary of Advance Payable Activity (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of Advance Payable Activity [Abstract] | ' | ' | ' |
' | $105,613 | $100,527 | |
30,000 | 60,000 | ' | |
-20,000 | -54,914 | ' | |
Transfer of balance to accounts payable | -115,613 | ' | ' |
' | $105,613 | $100,527 |
3_Interest_advances_and_promis6
3. Interest, advances and promissory notes payable (Details) - Advances Payable (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Advances payable to: | ' |
Companies controlled by directors | $65,488 |
Current and former directors | 40,125 |
$105,613 |
3_Interest_advances_and_promis7
3. Interest, advances and promissory notes payable (Details) - Summary of Promissory Notes Payable (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Promissory Notes Payable [Abstract] | ' |
Balance, December 31, 2013 and 2012 | $2,424,353 |
3_Interest_advances_and_promis8
3. Interest, advances and promissory notes payable (Details) - Promissory Notes Payable - Unrelated Leaders (USD $) | Dec. 31, 2013 | Dec. 30, 2013 | Dec. 31, 2012 |
Promissory Notes Payable - Unrelated Leaders [Abstract] | ' | ' | ' |
$450,000 | $500,000 | $450,000 | |
Promissory notes payable, secured by a guarantee from a director and relative of a director, bearing interest at 1% per month, with $200,000 repayable on July 31, 2003, all due on demand | 230,000 | ' | 230,000 |
Total Arms Length Promissory Notes | $2,424,353 | ' | $2,424,353 |
3_Interest_advances_and_promis9
3. Interest, advances and promissory notes payable (Details) - Summary of Promissory Notes Payable - Related Parties (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Promissory Notes Payable - Related Parties [Abstract] | ' |
Balance, December 31, 2013 and 2012 | $2,861,966 |
Recovered_Sheet1
3. Interest, advances and promissory notes payable (Details) - Promissory Notes Payable Activity - Related Parties (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Promissory Notes Payable Activity - Related Parties [Abstract] | ' | ' |
$845,619 | $845,619 | |
Total Related Promissory Notes | $2,861,966 | $2,861,966 |
4_Lines_of_Credit_Details
4. Lines of Credit (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Linesof Credit Related Party [Abstract] | ' |
undefined | 80,000,000 |
4_Lines_of_Credit_Details_Line
4. Lines of Credit (Details) - Lines of Credit - December 31, 2013 (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Lines of Credit - December 31, 2013 [Abstract] | ' | ' |
1.00% | 1.00% | |
$4,000,000 | $2,500,000 | |
'Due on Demand | 'Due on Demand | |
3,520,540 | 2,096,966 | |
451,805 | 143,936 | |
3,972,345 | 2,237,902 | |
'General Security over Assets | 'General Security over Assets | |
'General Corporate Requirements | 'General Corporate Requirements | |
Total | 5,520,540 | 4,093,966 |
Total | 988,190 | 440,321 |
Total | $6,508,730 | $4,534,287 |
4_Lines_of_Credit_Details_Line1
4. Lines of Credit (Details) - Lines of Credit - December 31, 2012 (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Lines of Credit - December 31, 2012 [Abstract] | ' | ' |
1.00% | 1.00% | |
$4,000,000 | $2,500,000 | |
'Due on Demand | 'Due on Demand | |
3,520,540 | 2,096,966 | |
451,805 | 143,936 | |
3,972,345 | 2,237,902 | |
'General Security over Assets | 'General Security over Assets | |
'General Corporate Requirements | 'General Corporate Requirements | |
Total | 5,520,540 | 4,093,966 |
Total | 988,190 | 440,321 |
Total | $6,508,730 | $4,534,287 |
5_Capital_Stock_Details
5. Capital Stock (Details) (USD $) | 0 Months Ended | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 14 Months Ended | 23 Months Ended | 24 Months Ended | 25 Months Ended | 26 Months Ended | 37 Months Ended | 60 Months Ended | 146 Months Ended | |||||||||||||||
Mar. 31, 2013 | Jan. 02, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | 29-May-11 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Jun. 30, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jan. 27, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2014 | Jan. 27, 2015 | 28-May-13 | Mar. 31, 2015 | 29-May-14 | Dec. 28, 2017 | Dec. 31, 2010 | |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized (in Shares) | ' | ' | 500,000,000 | 500,000,000 | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | 500,000,000 | ' | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | ' | ' | $0.00 | $0.00 | ' | ' | ' | $0.00 | ' | ' | ' | ' | $0.00 | ' | ' | ' | $0.00 | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Shares Authorized (in Shares) | ' | ' | 500,000,000 | 500,000,000 | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | 500,000,000 | ' | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | ' | ' | $0.00 | $0.00 | ' | ' | ' | $0.00 | ' | ' | ' | ' | $0.00 | ' | ' | ' | $0.00 | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | ' | ' | 2,500,000 | ' | ' | ' | ' | 2,000,000 | ' | 20,000,000 | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | -3,000,000 | -22,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions, Exercise Price (in Dollars per share) | $0.03 | $0.03 | $0.03 | $0.03 | ' | ' | $0.05 | $0.03 | $0.07 | $0.05 | $0.03 | $0.07 | $0.03 | $0.07 | $0.07 | $0.03 | $0.03 | ' | $0.03 | $0.03 | ' | $0.05 | ' | ' | ' | ' | ' | $0.05 | ' |
NonCash Proceeds from Stock Options Exercised | ' | ' | $75,000 | ' | ' | $16,616 | ' | $60,000 | ' | $1,000,000 | ' | ' | ' | ' | ' | $30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 500,000 | 1,000,000 | ' | 500,000 | ' | ' | 300,000 | ' | 2,000,000 | ' | 2,300,000 | ' | 500,000 | ' | 1,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 17,489 | 29,983 | ' | 29,975 | ' | 39,354 | ' | ' | 99,937 | ' | 61,956 | ' | 9,331 | 19,987 | 43,706 | ' | 1,484,334 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 612,361 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 500,000 | 250,000 | ' | ' | ' | ' | 200,000 | ' | ' | ' | 500,000 | ' | 200,000 | 100,000 | ' | 100,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award Options, Vested in Period, Subject to Approval (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | 200,000 | ' | ' | ' |
Stock Option Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,750,000 | ' | 244,913 | 5,597,662 | 2,682,855 | ' | ' | ' | ' | ' | ' | ' | 597,649 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grant Modified Exercise Price | ' | ' | 0.07 | 0.07 | 0.125 | ' | 0.05 | ' | ' | ' | ' | 0.2 | ' | ' | ' | ' | 0.07 | ' | ' | 0.07 | ' | 0.05 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grant Modified Director | ' | ' | ' | 20,000,000 | ' | ' | 35,750,000 | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
undefined | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Granted During Period, Value, Share-based Compensation, Gross | ' | ' | ' | ' | ' | ' | 26,666,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,250,000 | ' |
undefined | ' | ' | ' | ' | ' | ' | $14,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $37,750,000 | ' |
5_Capital_Stock_Details_Stock_
5. Capital Stock (Details) - Stock Option Activity | 0 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option Activity [Abstract] | ' | ' | ' | ' | ' | ' | ' |
' | ' | ' | ' | 125,000,000 | 125,000,000 | 62,800,000 | |
Exercisable, end of period | ' | ' | ' | ' | 127,800,000 | 127,800,000 | 124,800,000 |
Granted | ' | 100,000 | ' | ' | ' | 8,550,000 | 84,700,000 |
Exercised | 2,500,000 | ' | 2,000,000 | 20,000,000 | 1,000,000 | -3,000,000 | -22,500,000 |
125,000,000 | ' | 130,550,000 | ' | ' | 130,550,000 | 125,000,000 | |
Exercisable, end of period | 127,800,000 | ' | ' | ' | ' | ' | 127,800,000 |
5_Capital_Stock_Details_Option
5. Capital Stock (Details) - Options Outstanding | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options Outstanding [Abstract] | ' | ' | ' |
7-Mar-15 | 20,000,000 | 20,000,000 | ' |
30-Sep-15 | 1,200,000 | 1,200,000 | ' |
6-Mar-16 | 35,750,000 | 35,750,000 | ' |
4-May-16 | 1,000,000 | 1,000,000 | ' |
23-May-16 | 100,000 | 100,000 | ' |
27-May-17 | 700,000 | 700,000 | ' |
31-May-17 | 500,000 | 500,000 | ' |
16-Aug-17 | 500,000 | 500,000 | ' |
28-Dec-17 | 14,250,000 | 14,250,000 | ' |
28-Dec-17 | 51,000,000 | 51,000,000 | ' |
28-Jan-18 | 2,300,000 | ' | ' |
26-Mar-18 | 500,000 | ' | ' |
1-Apr-18 | 1,250,000 | ' | ' |
9-Apr-18 | 1,000,000 | ' | ' |
1-Oct-18 | 500,000 | ' | ' |
Total | 130,550,000 | 125,000,000 | 62,800,000 |
Weighted Average Remaining Contractual Life | '3 years 10 days | '3 years 357 days | ' |
5_Capital_Stock_Details_Fair_V
5. Capital Stock (Details) - Fair Value of Stock Options (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value of Stock Options [Abstract] | ' | ' |
Risk-free interest rate | 2.52% | 2.52% |
Expected life | '5 years | '5 years |
Expected dividends | 0.00% | 0.00% |
Expected volatility | 299.00% | 306.00% |
Forfeiture rate (in Dollars per share) | $0 | $0 |
5_Capital_Stock_Details_Fair_V1
5. Capital Stock (Details) - Fair Value of Stock Options Granted (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Interest expense: | ' | ' |
Directors and relatives of Directors | ' | $5,377,907 |
Total interest expense director and relative of directors | ' | 5,377,907 |
Selling, general and administration: | ' | ' |
Directors and officers | ' | 180,402 |
Non-employees | 65,958 | 16,615 |
Total interest expense selling, general and administration | 65,958 | 197,017 |
Product development: | ' | ' |
Non-employees | 5,996 | 1,749 |
Total interest expense product development | 5,996 | 1,749 |
Market development : | ' | ' |
Non-employees | ' | 20,989 |
Total interest expense market development | ' | 20,989 |
Professional fees: | ' | ' |
Non-employees | 172,959 | ' |
Total interest expense professional fees | 172,959 | ' |
Total interest expense stock options granted | $244,913 | $5,597,662 |
6_Contingencies_Details
6. Contingencies (Details) (USD $) | 2 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Loss Contingency [Abstract] | ' | ' | ' | ' |
Accounts Payable and Accrued Liabilities | ' | ' | $180,666 | $180,666 |
Loss Contingency, Damages Awarded, Value | $125,000 | $934,000 | ' | ' |
7_Related_party_transactions_a2
7. Related party transactions and balances (Details) (USD $) | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ' |
Accounts Payable, Related Parties | $12,000 |
7_Related_party_transactions_a3
7. Related party transactions and balances (Details) - Related Party Transactions (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Development costs: | ' | ' |
Consulting services rendered by an individual who was a director and officer of the Company in the role as officer of the Company | ' | $30,000 |
Interest expense: | ' | ' |
Promissory notes issued to relatives of the Chairman & Chief Executive Officer of the Company | 306,226 | 306,226 |
Lines of credit from the Chairman & Chief Executive Officer of the Company and his spouse | 578,039 | 406,732 |
Stock options granted to the Chairman & Chief Executive Officer | ' | 5,377,907 |
Selling, general and administration: | ' | ' |
Consulting fees to the Chairman & Chief Executive Officer of the Company accrued on the line of credit extended to the Company | 189,600 | 189,600 |
Consulting fees to a director of the Company in his roles as a consultant to the Company | 126,000 | ' |
Stock options granted to directors of the Company, including a director who is also the President and COO of the Company | ' | $180,402 |
8_Commitments_Details
8. Commitments (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Compensation Related Costs [Abstract] | ' |
Consulting Agreement with Chief Executive Officer Monthly | $15,000 |
Other Labor-related Expense, Chief Executive Officer | 800 |
Consulting Agreement with Chief Operating Officer Monthly | 13,000 |
Contingent Compensation Arrangement with Individual Cash Awards Granted Amount | $0.50 |
8_Commitments_Details_Annual_C
8. Commitments (Details) - Annual Compensation Arrangements (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Annual Compensation Arrangements [Abstract] | ' |
Sidney Chan | $180,000 |
Lawrence Weinstein | $156,000 |
9_Financial_instruments_Detail
9. Financial instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 30, 2013 | Dec. 31, 2012 |
Disclosure Text Block Supplement [Abstract] | ' | ' | ' |
Notes Payable | $450,000 | $500,000 | $450,000 |
Other Notes Payable | ' | $4,786,319 | ' |
10_Income_taxes_Details
10. Income taxes: (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2033 | |
Income Tax Disclosure [Abstract] | ' | ' |
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $0.34 | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $29,141,241 | $29,141,241 |
10_Income_taxes_Details_Provis
10. Income taxes: (Details) - Provision for Income Taxes (USD $) | 0 Months Ended | 6 Months Ended | 12 Months Ended | 146 Months Ended | ||
Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Provision for Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' |
Computed expected benefit of income taxes | ' | ' | ($1,019,058) | ($2,831,744) | ' | ' |
Stock-based compensation | 20,000,000 | 15,750,000 | 244,913 | 5,597,662 | 2,682,855 | 597,649 |
Non-deductible interest expense | ' | ' | 62,556 | 57,544 | ' | ' |
Permanent differences | ' | ' | 718,312 | ' | ' | ' |
Increase in valuation allowance | ' | ' | $154,920 | $870,995 | ' | ' |
10_Income_taxes_Details_Compon
10. Income taxes: (Details) - Components of Net Deferred Income Tax Assets (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Components of Net Deferred Income Tax Assets [Abstract] | ' | ' |
Net operating loss carried forward | $29,141,241 | $28,685,595 |
Tax rate | 34.00% | 34.00% |
Deferred income tax assets | 9,908,022 | 9,753,102 |
Valuation allowance | ($9,908,022) | ($9,753,102) |
10_Income_taxes_Details_Expira
10. Income taxes: (Details) - Expiration of Credit Taxes (USD $) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2005 | Dec. 31, 2004 | Dec. 31, 2003 | Dec. 31, 2002 | Dec. 31, 2001 | Dec. 31, 2000 | Dec. 31, 1999 | Dec. 31, 2033 | |
Expiration of Credit Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
$2,568,328 | $1,638,421 | $1,746,615 | $822,678 | $1,723,146 | $1,599,919 | $1,479,818 | $1,532,322 | $1,304,283 | $1,250,783 | $2,775,900 | $2,503,951 | $3,681,189 | $4,425,866 | $88,022 | ' | |
'2033 | '2032 | '2031 | '2030 | '2029 | '2028 | '2027 | '2026 | '2025 | '2024 | '2023 | '2022 | '2021 | '2020 | '2019 | ' | |
Total | $29,141,241 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $29,141,241 |
11_Subsequent_Events_Details
11. Subsequent Events: (Details) (USD $) | 0 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 60 Months Ended | 146 Months Ended | ||||||||||
Mar. 31, 2013 | Jan. 02, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 28, 2017 | Dec. 31, 2010 | Sep. 30, 2012 | Jun. 30, 2012 | |
Subsequent Events [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Damages Awarded, Value | ' | ' | ' | ' | $125,000 | ' | ' | ' | ' | ' | $934,000 | ' | ' | ' | ' | ' |
Loss Contingency, Interest, Damages Awarded | ' | ' | ' | ' | 0.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 500,000 | 1,000,000 | 500,000 | 300,000 | ' | 2,000,000 | 2,300,000 | ' | 500,000 | 1,250,000 | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions, Exercise Price (in Dollars per share) | $0.03 | $0.03 | $0.03 | $0.05 | $0.05 | $0.07 | $0.03 | $0.07 | $0.03 | $0.07 | $0.03 | $0.03 | $0.05 | ' | $0.05 | ' |
Debt Instrument, Convertible, Conversion Ratio | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of Stock, Price Per Share (in Dollars per share) | ' | ' | ' | $100,000 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures (in Shares) | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | 8,550,000 | 84,700,000 | ' | ' | ' | ' |
Stock Issued During Period, Value, Issued for Cash | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 293,658 | ' | ' |
Line of Credit Facility, Increase, Additional Borrowings | ' | ' | ' | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grant Modified Director | ' | ' | 20,000,000 | 35,750,000 | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grant Modified Exercise Price | ' | ' | 0.07 | 0.05 | 0.05 | ' | ' | 0.2 | ' | ' | ' | 0.07 | ' | ' | ' | 0.125 |
undefined | ' | ' | ' | 14,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | 37,750,000 | ' | ' | ' |
Stock Granted During Period, Value, Share-based Compensation, Gross | ' | ' | ' | $26,666,700 | ' | ' | ' | ' | ' | ' | ' | ' | $14,250,000 | ' | ' | ' |