Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Nov. 15, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'TAPIMMUNE INC | ' |
Entity Central Index Key | '0001094038 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $0 |
Entity Common Stock, Shares Outstanding | ' | 145,383,515 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash | $4,933 | $33,839 |
Due from government agency | 1,050 | 1,077 |
Prepaid expenses and deposits | 118,954 | 15,004 |
Deferred financing costs (Note 5) | 25,084 | 37,452 |
Toatal ASSETS | 150,021 | 87,372 |
Current Liabilities | ' | ' |
Accounts payable and accrued liabilities (Note 12) | 1,457,298 | 1,941,716 |
Research agreement obligations (Note 3) | 492,365 | 415,998 |
Derivative liability – conversion option (Note 4) | 195,300 | 867,575 |
Derivative liability – warrants (Note 4) | 89,195 | 977,086 |
Convertible notes payable (Note 5) | 2,348,756 | 1,376,230 |
Loans payable (Note 6) | 10,000 | 10,000 |
Promissory notes (Note 7) | 277,942 | 167,942 |
Due to related parties (Note 8) | 381,846 | 373,346 |
Total Current Liabilities | 5,252,702 | 6,129,893 |
Stockholders’ Deficit | ' | ' |
Common stock, $0.001 par value, 150,000,000 shares authorized 144,308,515 shares issued and outstanding (2012 – 76,402,958) | 142,410 | 76,404 |
Additional paid-in capital | 46,381,379 | 43,483,947 |
Shares and warrants to be issued (Note 9) | 384,343 | 352,859 |
Deficit accumulated during the development stage | -51,950,968 | -49,894,083 |
Accumulated other comprehensive loss | -59,845 | -61,648 |
Total Stockholders’ Deficit | -5,102,681 | -6,042,521 |
Total LIABILITIES AND STOCKHOLDERS’ DEFICIT | $150,021 | $87,372 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock par value | $0.00 | $0.00 |
Common stock shares authorized | 150,000,000 | 150,000,000 |
Common stock shares issued | 144,308,515 | 76,402,958 |
Common stock shares outstanding | 144,308,515 | 76,402,958 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | 170 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Expenses | ' | ' | ' | ' | ' |
Consulting fees | $51,000 | $57,260 | $117,367 | $119,790 | $2,338,867 |
Consulting fees – stock-based (Note 9) | 6,679 | 109,728 | 90,447 | 2,283,561 | 8,128,819 |
Depreciation | ' | ' | ' | ' | 213,227 |
General and administrative | 70,466 | 268,286 | 365,898 | 880,353 | 4,295,250 |
Interest and finance charges (Note 4) | 22,957 | 214,811 | 139,840 | 411,783 | 6,715,927 |
Management fees (Note 8) | 58,500 | 22,500 | 175,500 | 125,100 | 3,249,803 |
Management fees–stock-based (Notes 8 and 9) | 3,749 | 31,334 | 31,238 | 146,960 | 4,480,236 |
Professional fees | 69,938 | 21,757 | 455,226 | 208,866 | 5,871,335 |
Research and development (Note 8) | 30,000 | 71,061 | 218,778 | 432,289 | 7,187,373 |
Research and development – stock-based | ' | ' | ' | ' | 612,000 |
Net Expenses | 313,289 | 796,737 | 1,594,294 | 4,608,702 | 43,092,837 |
Net Loss Before Other Items | -313,289 | -796,737 | -1,594,294 | -4,608,702 | -43,092,837 |
Other Items | ' | ' | ' | ' | ' |
Foreign exchange (loss) gain | ' | -7,193 | 5,896 | 2,304 | 51,583 |
Changes in fair value of derivative liabilities (Note 4) | 266,077 | 121,385 | 2,144,566 | 544,576 | 6,448,958 |
Accretion of interest on convertible debt | -646,765 | ' | -934,261 | ' | -934,261 |
Loss on debt financing | -104,000 | -85,550 | -200,000 | -85,550 | -1,573,263 |
Gain (loss) on settlement of debt (Note 9) | -168,392 | ' | -1,478,792 | 28,688 | -13,169,593 |
Gain on extinguishment of derivative liabilities - warrants (Note 4) | ' | ' | ' | ' | 290,500 |
Interest income | ' | ' | ' | ' | 33,344 |
Loss on disposal of assets | ' | ' | ' | ' | -5,399 |
Net Loss for the Period | -966,369 | -768,095 | -2,056,885 | -4,118,684 | -51,950,968 |
Basic and Diluted Net Loss per Share | ($0.01) | ($0.01) | ($0.02) | ($0.07) | ' |
Weighted Average Number of Common Shares Outstanding | $126,618,840 | $73,128,058 | $102,635,443 | $62,560,295 | ' |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | 170 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net loss | ($2,056,885) | ($4,118,684) | ($51,950,968) |
Adjustments to reconcile net loss to net cash from operating activities: | ' | ' | ' |
Depreciation | ' | ' | 213,228 |
Non-cash loss on debt financing | 200,000 | 85,550 | 1,573,263 |
Changes in fair value of derivative liabilities | -2,144,566 | -544,576 | -6,448,958 |
Loss (gain) on settlement of debt | 1,478,792 | -28,688 | 13,169,593 |
Gain on extinguishment of derivative liabilities - warrants | ' | ' | -290,500 |
Loss on disposal of assets | ' | ' | 5,399 |
Non-cash interest and financing charges | 934,261 | ' | 6,402,760 |
Stock based compensation | 121,685 | 2,430,521 | 13,237,305 |
Changes in operating assets and liabilities: | ' | ' | ' |
Due from government agency | ' | ' | -1,055 |
Prepaid expenses and deposits | -103,950 | 34,123 | -142,954 |
Deferred financing costs | 23,368 | -1,118 | 11,165 |
Accounts payable and accrued liabilities | 716,371 | 940,661 | 6,313,652 |
Research agreement obligations | 76,367 | 106,218 | 710,496 |
NET CASH USED IN OPERATING ACTIVITIES | -754,557 | -1,095,993 | -17,197,574 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Issuance of shares, net | 231,651 | 455,000 | 11,092,226 |
Convertible notes, net | 335,000 | 206,000 | 2,458,906 |
Proceeds from promissory notes | ' | 67,942 | ' |
Proceeds from loans payable | ' | 21,000 | 428,000 |
Notes and loans payable | ' | ' | 919,845 |
Advances from (to) related parties | 159,000 | 99,544 | 1,958,783 |
Stock subscriptions | ' | ' | 140,000 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 725,651 | 849,486 | 16,997,760 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Purchase of furniture and equipment | ' | ' | -218,626 |
Cash acquired on reverse acquisition | ' | ' | 423,373 |
NET CASH PROVIDED by INVESTING ACTIVITIES | ' | ' | 204,747 |
INCREASE (DECREASE) IN CASH | -28,906 | -246,507 | 4,933 |
CASH, BEGINNING OF PERIOD | 33,839 | 250,234 | ' |
CASH, END OF PERIOD | $4,933 | $3,727 | $4,933 |
RESTATEMENT_OF_CONSOLIDATED_FI
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS | ' | ||||||||||||
NOTE 1A: RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||
We have restated our consolidated financial statements as of and for the year ended December 31, 2012 relating to the Company’s accounting for derivative liabilities and certain other accounts. We had recorded the derivative liabilities without accurately reflecting the effect of conversion of certain convertible notes and proper classification of some of the liabilities. | |||||||||||||
The impact of the restatement on the consolidated financial statements as of and for the year ended December 31, 2012, is shown in the following table: | |||||||||||||
As reported | Adjustment | As restated | |||||||||||
Balance sheet data — December 31, 2012 | |||||||||||||
Cash | $ | 50,679 | $ | (16,840 | ) | $ | 33,839 | ||||||
Total Assets | 104,212 | (16,840 | ) | 87,372 | |||||||||
Accounts payable and accrued liabilities | 2,058,556 | (116,840 | ) | 1,941,716 | |||||||||
Derivative liability – conversion option | 798,300 | 69,275 | 867,575 | ||||||||||
Derivative liability - warrants | 677,086 | 300,000 | 977,086 | ||||||||||
Convertible notes payable | 1,376,230 | 100,000 | 1,476,230 | ||||||||||
Due to related parties | 366,697 | 6,649 | 373,346 | ||||||||||
Total liabilities | 5,770,809 | 359,084 | 6,129,893 | ||||||||||
Additional paid-in capital | 43,545,947 | (62,000 | ) | 43,483,947 | |||||||||
Deficit accumulated during the development stage | (49,580,159 | ) | (313,924 | ) | (49,894,083 | ) | |||||||
Stockholders’ deficiency | $ | (5,666,597 | ) | $ | (375,924 | ) | $ | (6,042,521 | ) | ||||
As reported | Adjustment | As restated | |||||||||||
Consolidated Statement of Operations data | |||||||||||||
For the year ended December 31, 2012 | |||||||||||||
Management fees | $ | 295,600 | $ | 6,649 | $ | 302,249 | |||||||
Net Loss Before Other Items | (6,222,798 | ) | (6,649 | ) | (6,229,447 | ) | |||||||
Changes in fair value of derivative liabilities | 536,527 | (307,375 | ) | 229,252 | |||||||||
NET LOSS | $ | (5,857,943 | ) | $ | (313,924 | ) | $ | (6,171,867 | ) | ||||
As reported | Adjustment | As restated | |||||||||||
Consolidated Statement of Operations data | |||||||||||||
From July 27, 1999 (inception) to December 31, 2012 | |||||||||||||
Management fees | $ | 3,067,654 | $ | 6,649 | $ | 3,074,303 | |||||||
Net Loss Before Other Items | (41,491,894 | ) | (6,649 | ) | (41,498,543 | ) | |||||||
Changes in fair value of derivative liabilities | 4,611,667 | (307,375 | ) | 4,304,392 | |||||||||
NET LOSS | $ | (49,580,159 | ) | $ | (313,924 | ) | $ | (49,894,083 | ) | ||||
NATURE_OF_OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NATURE OF OPERATIONS | ' |
Note 1: Nature of Operations | |
TapImmune Inc. (the “Company”), a Nevada corporation incorporated in 1992, is a clinical development stage company which was formed for the purpose of building a biotechnology business specializing in the discovery and development of immunotherapeutics aimed at the treatment of cancer, and therapies for infectious diseases, autoimmune disorders and transplant tissue rejection. | |
Since inception, the Company has been party to various Collaborative Research Agreements (“CRA”) working with universities to carry out development of the licensed technology and providing TapImmune the option to acquire the rights to commercialize any additional technologies developed within the CRA. The lead product candidate, a set of Class II HER2/neu antigens is in Phase I clinical trials in breast cancer patients at the Mayo Clinic. This product will be combined with a novel Class I HER2/neu antigen in further clinical trials and with TapImmune’s expression vector technology containing TAP in a “boost” strategy. TapImmune has a license and an exclusive option to license the HER2/neu antigen technologies from the Mayo Clinic. The TAP technology is now wholly owned and with no ongoing license or royalty, resulting from these license agreements is an immunotherapy vaccine, on which the Company has been completing pre-clinical work in anticipation of clinical trials. Specifically, the Company has obtained and expanded on three U.S. and international patents, tested various viral vectors, licensed a viral vector and is working towards production of a clinical grade vaccine. The Company plans to continue development of the lead product vaccine through to clinical trials in both oncology and infectious diseases alone or in partnership with other vaccine developers. | |
These consolidated financial statements have been prepared on the basis of a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at September 30, 2013, the Company had a working capital deficiency of $5,102,681 and has incurred significant losses since inception. Further losses are anticipated in the development stage raising substantial doubt as to the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on raising additional capital to fund ongoing research and development, maintenance and protection of patents, accommodation from certain debt obligations and ultimately on generating future profitable operations. Planned expenditures relating to future clinical trials of the Company’s immunotherapy vaccine will require significant additional funding. The Company is dependent on future financings to fund ongoing research and development as well as working capital requirements. The Company’s future capital requirements will depend on many factors including the rate and extent of scientific progress in its research and development programs, the timing, cost and scope involved in clinical trials, obtaining regulatory approvals, pursuing further patent protections and the timing and costs of commercialization activities. | |
Management is addressing going concern remediation through seeking new sources of capital, restructuring and retiring debt through conversion to equity and debt settlement arrangements with creditors, cost reduction programs and seeking possible joint venture participation. Management’s plans are intended to return the Company to financial stability and improve continuing operations. The Company is continuing initiatives to raise capital through private placements, related party loans and other institutional sources to meet immediate working capital requirements. | |
Additional funding was raised through equity and debt placements in 2013 and 2012, and management intends to continue restructuring outstanding debt and equity instruments. Additional capital is required currently to expand programs including pre-clinical work and to establish future manufacturing contracts necessary for clinical trials for the lead TAP (Transporters of Antigen Processing) vaccine and infectious disease adjuvant technology. Strategic partnerships will be needed to continue the product development portfolio and fund development costs. These measures, if successful, may contribute to reduce the risk of going concern uncertainties for the Company over the next twelve months. | |
There is no certainty that the Company will be able to arrange sufficient funding to satisfy current debt obligations or to continue development of products to marketability. |
UNAUDITED_CONSOLIDATED_FINANCI
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR AN INTERIM PERIOD | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR AN INTERIM PERIOD | ' |
Note 2: UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR AN INTERIM PERIOD | |
Basis of Presentation | |
In the opinion of management, the accompanying balance sheets and related interim statements of operations and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses. Significant areas requiring management’s estimates and assumptions include deferred taxes and related tax balances and disclosures, determining the fair value of stock-based compensation and stock based transactions, the fair value of the components of the convertible notes payable, foreign exchange gains and losses, allocation of costs to research and development and accrued liabilities. Matters impacting the company’s ability to continue as a going concern and contingencies also involve the use of estimates and assumptions. | |
Interim results are not necessarily indicative of results for a full year. The information included in this quarterly report on Form 10-Q should be read in conjunction with information included in the Company’s annual report on Form 10-K filed on May 15, 2013, with the U.S. Securities and Exchange Commission. |
RESEARCH_AGREEMENTS
RESEARCH AGREEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
Research and Development [Abstract] | ' |
RESEARCH AGREEMENTS | ' |
Note 3: Research Agreements | |
Crucell Holland B.V. (“Crucell”) – Research License and Option Agreement | |
Effective August 7, 2003, Crucell and the Company’s subsidiary GPI entered into a five-year research license and option agreement. In addition, retroactively effective August 7, 2008, the Company negotiated an amended license agreement for the use of Crucell’s adenovirus technology. The Company was required to make annual license payments on the anniversary of the effective date for the three year term equal to €75,000 per annum for three years through December 2011. As at September 30, 2013, the Company accrued $492,365 (€378,384) under the amended agreement, inclusive of interest on outstanding amounts. | |
The Company is currently delinquent on making its annual license payments under the amended license agreement. Crucell has the right to cancel the agreement; however, to date, the Company has not received any notice terminating the license agreement. | |
Mayo Clinic –License Option Agreement | |
For details regarding the license option agreement with Mayo Clinic, please refer to Note 11. |
DERIVATIVE_WARRANT_AND_CONVERS
DERIVATIVE WARRANT AND CONVERSION OPTION LIABILITY AND FAIR VALUE | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||||||||||
DERIVATIVE WARRANT AND CONVERSION OPTION LIABILITY AND FAIR VALUE | ' | ||||||||||||||||||||||||||
Note 4: DERIVATIVE WARRANT AND CONVERSION OPTION LIABILITY AND FAIR VALUE | |||||||||||||||||||||||||||
The Company has evaluated the application ASC 480-10 Distinguishing liabilities from equity, ASC 815-40 Contracts in an Entity’s Own Equity and ASC 718-10 Compensation – Stock Compensation to the issued and outstanding warrants to purchase common stock that were issued with the convertible notes, private placements, consulting agreements, and various debt settlements during 2009 through 2013. Based on the guidance, management concluded these instruments are required to be accounted for as derivatives either due to a ratchet down protection feature available on the exercise price (Note 5) or a holder’s right to put the warrants back to the Company for cash under certain conditions or a conversion option feature with conversion into variable number of shares. Under ASC 815-40-25, the Company records the fair value of these warrants and conversion options (derivatives) on its balance sheet, at fair value, with changes in the values reflected in the statements of operations as “Changes in fair value of derivative liabilities”. The fair value of the share purchase warrants are recorded on the balance sheet under ‘Derivative liability – warrants’ and the fair value of the conversion options are recorded on the balance sheet under ‘Derivative liability – conversion option’. | |||||||||||||||||||||||||||
ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820-10 describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3 – Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. The Company’s Level 3 liabilities consist of the derivative liabilities associated with the warrants issued with the convertible notes during the year ended December 31, 2011. At December 31, 2012 and September 30, 2013, all of the Company’s derivative liabilities were categorized as Level 3 fair value liabilities. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | |||||||||||||||||||||||||||
Level 3 Valuation Techniques | |||||||||||||||||||||||||||
Financial liabilities are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial liabilities consist of the notes and warrants for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. | |||||||||||||||||||||||||||
Determining fair value of share purchase warrants and conversion options, given the Company’s stage of development and financial position, is highly subjective and identifying appropriate measurement criteria and models is subject to uncertainty. There are several generally accepted pricing models for warrants and options and derivative provisions. The Company has chosen to value the warrants and conversion option on the notes that contain ratchet down provisions using the Binomial model and Black-Scholes model under the following assumptions: | |||||||||||||||||||||||||||
31-Dec-12 | 30-Sep-13 | ||||||||||||||||||||||||||
Expected Life (Years) | Risk free Rate | Dividend yield | Volatility | Expected Life (Years) | Risk free Rate | Dividend yield | Volatility | ||||||||||||||||||||
Share purchase warrants | 0.08 to 3.78 | 0.02% to 0.36% | 0 | % | 199 | % | 1.10 to 3.03 | 0.09% to 0.63% | 0 | % | 199 | % | |||||||||||||||
31-Dec-12 | 30-Sep-13 | ||||||||||||||||||||||||||
Expected Life (Years) | Risk free Rate | Dividend yield | Volatility | Expected Life (Years) | Risk free Rate | Dividend yield | Volatility | ||||||||||||||||||||
Conversion Option | 0.003 to 0.89 | 0.05% to 0.19% | 0 | % | 100.88% to 141.21% | 0.14 to 0.78 | 0.02% to 0.15% | 0 | % | 108% to 161.97% | |||||||||||||||||
The foregoing assumptions are reviewed quarterly and are subject to change based primarily on management’s assessment of the probability of the events described occurring. Accordingly, changes to these assessments could materially affect the valuations. | |||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet under Derivative liability – warrants and Derivative liability – conversion option: | |||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Derivative liability - warrants | $ | 89,195 | — | — | $ | 89,195 | $ | 89,195 | |||||||||||||||||||
Derivative liability – conversion option | 195,300 | — | — | 195,300 | 195,300 | ||||||||||||||||||||||
Total | $ | 284,495 | — | — | $ | 284,495 | $ | 284,495 | |||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Derivative liability - warrants | $ | 977,086 | — | — | $ | 977,086 | $ | 977,086 | |||||||||||||||||||
Derivative liability – conversion option | 867,575 | — | — | 867,575 | 867,575 | ||||||||||||||||||||||
Total | $ | 1,844,661 | — | — | $ | 1,844,661 | $ | 1,844,661 | |||||||||||||||||||
The table below provides a summary of the changes in fair value, including net transfers, in and/or out, of financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2013 and the year ended December 31, 2012: | |||||||||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs | |||||||||||||||||||||||||||
Derivative liability - warrants | Derivative liability – conversion option | Total | |||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,317,834 | $ | — | $ | 1,317,834 | |||||||||||||||||||||
Additions during the year | 300,000 | 737,700 | 1,037,700 | ||||||||||||||||||||||||
Total unrealized (gains) or losses included in net loss | (597,127 | ) | 129,875 | (467,252 | ) | ||||||||||||||||||||||
Debt settlement | (43,621 | ) | — | (43,621 | ) | ||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | ||||||||||||||||||||||||
Balance, December 31, 2012 | 977,086 | 867,575 | 1,844,661 | ||||||||||||||||||||||||
Additions during the period | 200,000 | 363,300 | 563,300 | ||||||||||||||||||||||||
Total unrealized (gains) or losses included in net loss | (1,087,891 | ) | (1,035,575 | ) | (2,123,466 | ) | |||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | ||||||||||||||||||||||||
Balance, September 30, 2013 | $ | 89,195 | $ | 195,300 | $ | 284,495 | |||||||||||||||||||||
The fair value of the warrants is determined using a Binomial option pricing model. The valuation of warrants is subjective and is affected by changes in inputs to the valuation model including the price per share of common stock, the historical volatility of the stock price, risk-free rates based on U.S. Treasury security yields, the expected term of the warrants and dividend yield. Changes in these assumptions can materially affect the fair value estimate. The Company could ultimately incur amounts to settle the warrant at a cash settlement value that is significantly different than the carrying value of the liability on the financial statements. The Company will continue to classify the fair value of the warrants as a liability until the warrants are exercised, expire, or are amended in a way that would no longer require these warrants to be classified as a liability. Changes in the fair value of the common stock warrants liability are recognized as a component of other income (expense) in the statement of operations. | |||||||||||||||||||||||||||
The net cash settlement value at the time of any future Fundamental Transaction will depend upon the value of the following inputs at that time: the consideration value per share of the Company’s common stock, the volatility of the Company’s common stock, the remaining term of the warrant from announcement date, the risk-free interest rate based on U.S. Treasury security yields, and the Company’s dividend yield. The warrant requires use of a volatility assumption equal to the greater of 100% and the 100-day volatility function determined as of the trading day immediately following announcement of a Fundamental Transaction. | |||||||||||||||||||||||||||
CONVERTIBLE_NOTES_PAYABLE
CONVERTIBLE NOTES PAYABLE | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Payables and Accruals [Abstract] | ' | ||||||||||||||||
CONVERTIBLE NOTES PAYABLE | ' | ||||||||||||||||
Note 5: CONVERTIBLE NOTES PAYABLE | |||||||||||||||||
The following is a summary of debt instrument transactions that are relevant to the current period: | |||||||||||||||||
Face Value | Principal Repayment/ | Unamortized | Balance at | ||||||||||||||
Settlement/Re-issued | Note | September 30, | |||||||||||||||
Discount | 2013 | ||||||||||||||||
February 2011 Secured Convertible Notes | |||||||||||||||||
Senior Secured Notes, due February 24, 2014 | $ | 1,184,694 | $ | 203,836 | $ | 53,676 | $ | 927,182 | |||||||||
April 2011 Secured Convertible Notes | |||||||||||||||||
Senior Secured Notes, due April 4, 2014 | 215,000 | — | 17,481 | 197,519 | |||||||||||||
June 2011 Secured Convertible Note | |||||||||||||||||
Senior Secured Notes, due June 6, 2014 | 30,000 | — | 1,885 | 28,115 | |||||||||||||
August 8, 2012 Convertible Note | |||||||||||||||||
Note due August 8, 2013 | 111,430 | 111,430 | — | — | |||||||||||||
August 12, 2012 Convertible Note | |||||||||||||||||
Note became due November 12, 2012 | 27,500 | — | — | 27,500 | |||||||||||||
August 20, 2012 Convertible Note | |||||||||||||||||
Note due August 20, 2013 | 20,000 | — | — | 20,000 | |||||||||||||
September 18, 2012 Convertible Note | |||||||||||||||||
Note due October 1, 2013 | 82,500 | 58,750 | — | 23,750 | |||||||||||||
October 2012 Convertible Note | |||||||||||||||||
Note due October 15, 2013 | 340,000 | — | 13,972 | 326,028 | |||||||||||||
October 9, 2012 Convertible Notes | 100,000 | 100,000 | — | — | |||||||||||||
Note due April 30, 2013 | |||||||||||||||||
November 1, 2012 Convertible Note | |||||||||||||||||
Note due April 30, 2013 | 31,471 | 31,471 | — | — | |||||||||||||
November 20, 2012 Convertible Note | |||||||||||||||||
Note due November 20, 2013 | 55,710 | 44,962 | — | 10,748 | |||||||||||||
December 14, 2012 Convertible Note | |||||||||||||||||
Note due April 18, 2013 | 189,210 | 189,210 | — | — | |||||||||||||
December 18, 2012 Convertible Note | |||||||||||||||||
Note due December 14, 2013 | 50,000 | — | — | 50,000 | |||||||||||||
January 5, 2013 Convertible Notes | 567,729 | 115,000 | — | 452,729 | |||||||||||||
February 27, 2013 Convertible Note | |||||||||||||||||
Note due February 27, 2014 | 58,500 | — | 22,808 | 35,692 | |||||||||||||
April 2, 2013 Convertible Notes | 80,967 | — | — | 80,967 | |||||||||||||
April 18, 2013 Convertible Note | |||||||||||||||||
Note due December 18, 2013 | 60,000 | — | 9,868 | 50,132 | |||||||||||||
May 5, 2013 Convertible Notes | 45,000 | — | — | 45,000 | |||||||||||||
May 14, 2013 Convertible Note | |||||||||||||||||
Note due May 14, 2014 | 126,000 | — | 78,016 | 47,984 | |||||||||||||
June 27, 2013 Convertible Note | |||||||||||||||||
Note due June 27, 2014 | 37,620 | — | 26,571 | 11,049 | |||||||||||||
June 19, 2013 Convertible Note | |||||||||||||||||
Note due June 19, 2014 | 115,000 | 83,000 | 28,325 | 3,675 | |||||||||||||
July 12, 2013 Convertible Note | |||||||||||||||||
Note due July 12, 2014 | 125,000 | 28,200 | 86,114 | 10,686 | |||||||||||||
Total | $ | 3,653,331 | $ | 965,859 | $ | 338,716 | $ | 2,348,756 | |||||||||
The following is a summary of debt instrument transactions that are relevant to the previous year: | |||||||||||||||||
Principal Repayment/ | Unamortized | Balance at | |||||||||||||||
Settlement | Note | December 31, | |||||||||||||||
Face Value | Discount | 2012 | |||||||||||||||
February 2011 Secured Convertible Notes | |||||||||||||||||
Senior Secured Notes, due February 24, 2014 | $ 1,184,694 | $ 203,836 | $ 153,358 | $ 827,500 | |||||||||||||
April 2011 Secured Convertible Notes | |||||||||||||||||
Senior Secured Notes, due April 4, 2014 | 215,000 | - | 43,140 | 171,860 | |||||||||||||
June 2011 Secured Convertible Note | |||||||||||||||||
Senior Secured Notes, due June 6, 2014 | 30,000 | - | 3,953 | 26,047 | |||||||||||||
August 8, 2012 Convertible Note | |||||||||||||||||
Note due August 8, 2013 | 111,430 | - | 67,163 | 44,267 | |||||||||||||
August 12, 2012 Convertible Note | |||||||||||||||||
Note became due November 12, 2012 | 27,500 | - | - | 27,500 | |||||||||||||
August 20, 2012 Convertible Note | |||||||||||||||||
Note due August 20, 2013 | 20,000 | - | 12,712 | 7,288 | |||||||||||||
September 18, 2012 Convertible Note | |||||||||||||||||
Note due October 1, 2013 | 82,500 | - | 59,741 | 22,759 | |||||||||||||
October 2012 Convertible Note | |||||||||||||||||
Note due October 15, 2013 | 340,000 | - | 268,275 | 71,725 | |||||||||||||
November 1, 2012 Convertible Note | |||||||||||||||||
Note due April 30, 2013 | 31,471 | - | 18,200 | 13,271 | |||||||||||||
November 20, 2012 Convertible Note | |||||||||||||||||
Note due November 20, 2013 | 55,710 | - | 49,605 | 6,105 | |||||||||||||
December 14, 2012 Convertible Note | |||||||||||||||||
Note due April 18, 2013 | 189,210 | - | 81,302 | 107,908 | |||||||||||||
December 18, 2012 Convertible Note | |||||||||||||||||
Note due December 14, 2013 | 50,000 | - | - | 50,000 | |||||||||||||
Total | $ 2,337,515 | $ 203,836 | $ 757,449 | $ 1,376,230 | |||||||||||||
February 2011 Secured Convertible Notes | |||||||||||||||||
On February 24, 2011, the Company entered into a securities purchase agreement with accredited investors to place Senior Secured Convertible Notes (the “February 2011 Notes”) with a maturity date of three years after the issuance thereof in the aggregate principal amount of $1,184,694. In connection with the issuance of the February 2011 Notes, the Company entered into a 2011 Security Agreement with the note holders securing the February 2011 Notes with all of the Company’s assets. One year after the issuance of the February 2011 Notes, the note holders have the option to convert a portion or all of the outstanding balance of the February 2011 Notes including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.15 per share. | |||||||||||||||||
The February 2011 Notes bear interest at the rate of 10% per annum except in case of default, in which case they bear interest at the rate of 20% per annum. The interest is due on the February 2011 Notes at the end of each three month period, starting three months from their issuance. One year after the issuance of the February 2011 Notes, the Company may elect to prepay a portion of the principal. If the Company makes such an election, the holders may elect to receive such prepayment in cash or in shares of the Company’s common stock, at a conversion rate of $0.15 per share, or in a combination thereof. | |||||||||||||||||
The Company paid a finders’ fee of $41,500. The finder’s fee was accounted for as deferred financing costs, and is being amortized over the term of the notes. At September 30, 2013, $4,662 of the $25,084 in deferred financing costs relates to the February 2011 Notes which remains unamortized. | |||||||||||||||||
In connection with the issuance of the February 2011 Notes, the Company issued 2,369,388 warrants, exercisable into common stock at $0.25 with five year terms. The Company may force the exercise of the warrants at any time that the average volume weighted average price of the Company’s common stock over the prior ten trading days is greater than $0.50, the average daily dollar volume of the Company’s common stock sold over those ten trading days is greater than $25,000 and there is an effective registration statement covering the resale of the shares underlying the warrants. | |||||||||||||||||
The Company allocated the net proceeds to the warrants based on the calculated fair value at the date of issuance. The fair value of the warrants was recorded at $483,355 and recognized as derivative liabilities and the debt was recorded at $701,339. The debt discount is being accreted over the three year term of the February 2011 Notes using the effective interest rate method. | |||||||||||||||||
During the year ended December 31, 2012, one of the investors settled the principal amount of $203,836 and accrued interest of $16,419 of the February 2011 Notes in exchange for December 14, 2012 Convertible Note (the “December 14, 2012 Note”). | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $99,682 was recorded for the February 2011 Notes. | |||||||||||||||||
April 2011 Secured Convertible Notes | |||||||||||||||||
On April 4, 2011, the Company entered into a securities purchase agreement with accredited investors to place Senior Secured Convertible Notes (the “April 2011 Notes”) with a maturity date of three years after the issuance thereof in the aggregate principal amount of $215,000. In connection with the issuance of the April 2011 Notes, the Company entered into a 2011 Security Agreement with the note holders securing the April 2011 Notes with a secondary security interest in all of the Company’s assets. One year after the issuance of the April 2011 Notes, the note holders have the option to convert a portion or all of the outstanding balance of the April 2011 Notes including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.15 per share. | |||||||||||||||||
The April 2011 Notes bear interest at the rate of 10% per annum except in case of default, in which case they bear interest at the rate of 20% per annum. The interest is due on the April 2011 Notes at the end of each three month period, starting three months from their issuance. One year after the issuance of the April 2011 Notes, the Company may elect to prepay a portion of the principal. If the Company makes such an election, the holders may elect to receive such prepayment in cash or in shares of the Company’s common stock, at a conversion rate of $0.15 per share, or in a combination thereof. | |||||||||||||||||
The Company paid a finders’ fee of $4,550. The finder’s fee was accounted for as deferred financing costs, and is being amortized over the term of the notes. At September 30, 2013, $756 of the $25,084 in deferred financing costs relates to the April 2011 Notes. | |||||||||||||||||
In connection with the issuance of the April 2011 Notes, the Company issued 430,000 warrants, exercisable into common stock at $0.25 with 2 year terms. The Company may force the exercise of the warrants at any time that the average volume weighted average price of the Company’s common stock over the prior ten trading days is greater than $0.50, the average daily dollar volume of the Company’s common stock sold over those ten trading days is greater than $25,000 and there is an effective registration statement covering the resale of the shares underlying the warrants. | |||||||||||||||||
The Company allocated the net proceeds to the warrants based on the calculated fair value. The fair value of the warrants was recorded at $130,720 and recognized as derivative liabilities and the debt was recorded at $84,280. The debt discount is being accreted over the three year term of the April 2011 Notes using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $25,658 was recorded for the April 2011 Notes. | |||||||||||||||||
June 2011 Secured Convertible Note | |||||||||||||||||
On June 6, 2011, the Company entered into a securities purchase agreement with accredited investors to place Senior Secured Convertible Note (the “June 2011 Note”) with a maturity date of three years after the issuance thereof in the aggregate principal amount of $30,000. In connection with the issuance of the June 2011 Note, the Company entered into a 2011 Security Agreement with the note holder securing the June 2011 Note with a secondary security interest in all of the Company’s assets. One year after the issuance of the June 2011 Note, the note holder has the option to convert a portion or all of the outstanding balance of the June 2011 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.15 per share. | |||||||||||||||||
The June 2011 Note bears interest at the rate of 10% per annum except in case of default, in which case it bears interest at the rate of 20% per annum. The interest is due on the June 2011 Note at the end of each three month period, starting three months from its issuance. One year after the issuance of the June 2011 Note, the Company may elect to prepay a portion of the principal. If the Company makes such an election, the holders may elect to receive such prepayment in cash or in shares of the Company’s common stock, at a conversion rate of $0.15 per share, or in a combination thereof. | |||||||||||||||||
In connection with the issuance of the June 2011 Note, the Company issued 60,000 warrants, exercisable into common stock at $0.25 with two year terms. The Company may force the exercise of the warrants at any time that the average volume weighted average price of the Company’s common stock over the prior ten trading days is greater than $0.50, the average daily dollar volume of the Company’s common stock sold over those ten trading days is greater than $25,000 and there is an effective registration statement covering the resale of the shares underlying the warrants. | |||||||||||||||||
The Company allocated the net proceeds to the warrants based on the calculated fair value. The fair value of the warrants was recorded at $8,280 and recognized as derivative liabilities and the debt was recorded at $21,720. The debt discount is being accreted over the three year term of the June 2011 Note using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $2,067 was recorded for the June 2011 Note. | |||||||||||||||||
August 8, 2012 Convertible Note | |||||||||||||||||
On August 8, 2012, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the “August 8, 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $111,430. Consideration under the notes consisted of $92,000 in cash proceeds after $8,000 payment of finders’ fee and an original issue discount of $11,430. The note holder has the option to convert a portion or all of the outstanding balance of the August 8, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or 70% of the lowest traded price in the 25 trading days prior to conversion. | |||||||||||||||||
The August 8, 2012 Note carried no interest if the Company repaid the note within 90 days from issuance. If the Company does not repay the note within 90 days, a one-time interest of 5% shall apply to the principal sum. The company did not repay the note within 90 days of issuance and a one-time interest of 5% was accrued in the year ended December 31, 2012. | |||||||||||||||||
During the nine months ended September 30, 2013, the investor converted the principal amount of $111,430 and accrued interest of the August 8, 2012 Note into common shares (Note 9). | |||||||||||||||||
The finder’s fee of $8,000 was accounted for as deferred financing costs, and was amortized over the term of the note and has been fully expensed during the current period on the conversion of the debt. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion option was recorded at $155,700 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted in an accounting loss on debt financing of $55,700. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.19%, dividend yield of 0% and volatility of 139.77%. The debt discount has been accreted up to the dates of conversion using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $67,163 was recorded for the August 8, 2012 Note. | |||||||||||||||||
August 12, 2012 Convertible Note | |||||||||||||||||
On August 12, 2012, the Company entered into a securities purchase agreement with accredited investors to place a Convertible Note (the “August 12, 2012 Note”) with a maturity date of three months after the issuance thereof in the aggregate principal amount of $27,500. Consideration under the notes consisted of $25,000 in cash proceeds after an original issue discount of $2,500. The note holder has the option to convert a portion or all of the outstanding balance of the August 8, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or on similar terms as of any future financings with more favorable terms. The agreement provides for the Company to issue 50,000 shares to the note holder as risk premium. The 50,000 shares were valued at $6,250 and recorded as loss on debt financing and obligation to issue shares. | |||||||||||||||||
The August 12, 2012 Note bears interest at the rate of 10% per annum. | |||||||||||||||||
The Company allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion option was recorded at $31,100 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted in an accounting loss on debt financing of $6,100. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of three months, risk free rate of 0.11%, dividend yield of 0% and volatility of 138.31%. The debt discount was accreted over the three month term of the August 12, 2012 Note using the effective interest rate method. | |||||||||||||||||
The Company has not repaid the August 12, 2012 Note as of September 30, 2013, which is in default. The note is accruing interest rate of 10% per year. | |||||||||||||||||
August 20, 2012 Convertible Note | |||||||||||||||||
On August 20, 2012, the Company entered into a securities purchase agreement with accredited investors to place a Convertible Note (the “August 20, 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $20,000. The note holder has the option to convert a portion or all of the outstanding balance of the August 20, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or 70% of the lowest traded price in the 25 trading days prior to conversion. | |||||||||||||||||
The August 20, 2012 Note bears interest at the rate of 8% per annum. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion option was recorded at $36,100 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted in an accounting loss on debt financing of $16,100. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.19%, dividend yield of 0% and volatility of 140.11%. The debt discount was accreted over the one year term of the August 20, 2012 Note using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $12,712 was recorded for the August 20, 2012 Note. | |||||||||||||||||
The Company has not repaid the August 20, 2012 Note as of September 30, 2013, which is in default. The note is accruing interest rate of 8% per year. | |||||||||||||||||
September 18, 2012 Convertible Note | |||||||||||||||||
On September 18, 2012, the Company entered into a securities purchase agreement with accredited investors to place a Convertible Note (the “September 18, 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $82,500. Consideration under the notes consisted of $69,000 in cash proceeds after $6,000 payment of finders’ fee and an original issue discount of $7,500. The note holder has the option to convert a portion or all of the outstanding balance of the September 18, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or 70% of the lowest traded price in the 20 trading days prior to conversion. | |||||||||||||||||
The September 18, 2012 Note carries no interest other than the amortization of the original issue discount. | |||||||||||||||||
The finder’s fee of $6,000 was accounted for as deferred financing costs, and was amortized over the term of the note which has been fully amortized. | |||||||||||||||||
During the nine months ended September 30, 2013, the investor converted the principal amount and accrued interest of $75,000 and accrued interest into common shares (Note 9). The balance remaining on the September 18, 2012 Note as on September 30, 2013 was $23,750. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion option was recorded at $76,400 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted in an accounting loss on debt financing of $1,400. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.20%, dividend yield of 0% and volatility of 141.43%. The debt discount is being accreted over the one year term using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $20,060 was recorded for the September, 2012 Note. | |||||||||||||||||
October 2012 Convertible Note | |||||||||||||||||
On October 15, 2012, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the “October 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $340,000. Consideration under the notes consisted of $310,000 in cash proceeds after $10,000 payment of legal fee and an original issue discount of $30,000. The note holder has the option to convert a portion or all of the outstanding balance of the October 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.12 per share or to a new lower issuance price if the Company issues shares (or reduces the conversion or exercise price for outstanding debt or warrants) for less than $0.12. | |||||||||||||||||
The October 2012 Note carries an interest rate of 8% per year. There are seven installment payments due on the note beginning on the seventh month after its issuance and each month thereafter until maturity. | |||||||||||||||||
The legal fee of $10,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At September 30, 2013, $411 of the $25,084 in deferred financing costs relates to the October 2012 Note which remains unamortized, and is presented in current assets on the Company’s Balance Sheet. | |||||||||||||||||
Provided that there is sufficient volume in the trading of the Company’s common stock and other criteria are met, the Company may elect to make any payment due on an installment date in shares of common stock. If the Company elects to make a payment in shares of common stock, the number of shares that the Company issues will be equal to the amount to be converted divided by the lesser of the conversion price or 70% of the average of the three lowest closing bid prices of the shares of common stock during the prior twenty consecutive trading days. Unless otherwise agreed in writing by both parties, at no time will the holder convert any amount of the debenture into common stock that would result in the holder owning more than 4.99% of the common stock outstanding. | |||||||||||||||||
As part of the agreement, the Company also issued 3,000,000 warrants to the note holder exercisable at $0.25/share expiring on October 31, 2016. | |||||||||||||||||
The warrants include price adjustment provisions whereby the exercise price will be adjusted downwards based on future grants, which results in a share issuance at a per share amount less than $0.25 per share, or repricing of any existing warrants to a lower price. During the nine months ended September 30, 2013, the investor converted the 3,000,000 warrants under a cashless exercise provision for 1,898,588 shares of common stock (Note 9). | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option and equity based on the calculated fair value. The fair value of the conversion option was recorded at $248,000 and recognized as a derivative liability and the equity was recorded at $62,000. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.19%, dividend yield of 0% and volatility of 139.16%. The debt discount is being accreted over the one year term of the October 2012 Note using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $254,301 was recorded for the October 2012 Note. | |||||||||||||||||
October 9, 2012 Convertible Note | |||||||||||||||||
On October 9, 2012, the Company converted accounts payable of $100,000 into convertible notes (the “October 9, 2012 Note”). The note holder has the option to convert a portion or all of the outstanding balance of the October 9, 2012 Note into shares of the Company’s common stock at a conversion rate of $0.11 per share. The note has no terms of repayment and no interest charges. Only under certain events of default the note will incur an interest rate of 20% per year. | |||||||||||||||||
During the nine months ended September 30, 2013, the note was amended and assigned to a third party with price adjustment features ratified by the Company and converted into 5,368,956 shares of the Company. The Company recorded $135,527 as loss on settlement of debt (Note 9). | |||||||||||||||||
November 1, 2012 Convertible Note | |||||||||||||||||
During the year ended December 31, 2012, the Company converted a promissory note of $100,000 (Note 7) with an accredited investor into three convertible notes totaling $105,000. The three convertible notes were assigned to a third party. In November and December 2012, the holder converted $73,737 of principal and interest into 1,262,727 shares. The Company recorded $66,801 as loss on settlement of debt (Note 9). | |||||||||||||||||
The third Convertible Note (the “November 1, 2012 Note”) was issued with a maturity date of six months in the aggregate principal amount of $31,471. The note holder has the option to convert a portion or all of the outstanding balance of the November 1, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or 65% of the lowest bid price in the 20 trading days prior to conversion. | |||||||||||||||||
The November 1, 2012 Note bears interest at the rate of 10% per annum starting on November 15, 2012. If the Company is in default under certain events, the November 1, 2012 Note shall incur interest at the rate of 20% per annum retroactively. | |||||||||||||||||
The Company had allocated the balance of the November 1, 2012 Note to the conversion option and debt based on the calculated fair value. The fair value of the conversion option was recorded at $27,300 and recognized as a derivative liability and the debt was recorded at $4,171. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of 0.49 year, risk free rate of 0.09%, dividend yield of 0% and volatility of 127.26%. The debt discount was accreted over the 0.49 year term of the November 1, 2012 Note using the effective interest rate method. | |||||||||||||||||
During the nine months ended September 30, 2013, the investor converted the November 1, 2012 Note and accrued interest into 512,822 common shares (Note 9). | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $7,921 was recorded for the November 1, 2012 Note. | |||||||||||||||||
November 20, 2012 Convertible Note | |||||||||||||||||
On November 20, 2012, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the “November 20, 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $55,710. Consideration under the notes consisted of $50,000 in cash proceeds after $4,000 payment of finder’s fee and an original issue discount of $5,710. The note holder has the option to convert a portion or all of the outstanding balance of the November 20, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or 70% of the lowest traded price in the 25 trading days prior to conversion. | |||||||||||||||||
The November 20, 2012 Note carried no interest if the Company repaid the note within 90 days from issuance. If the Company does not repay the note within 90 days, a one-time interest of 5% shall apply to the principal sum. The company did not repay the note within 90 days of issuance and a one-time interest of 5% in the current period. | |||||||||||||||||
The finder’s fee of $4,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At September 30, 2013, $559 of the $25,084 in deferred financing costs relates to the November 20, 2012 Note. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion option was recorded at $69,000 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted in an accounting loss on debt financing of $19,000. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.16%, dividend yield of 0% and volatility of 134.71%. The debt discount is being accreted over the one year term of the November 20, 2012 Note using the effective interest rate method. | |||||||||||||||||
During the nine months ended September 30, 2013, the investor converted the principal amount of $44,962 and accrued interest of the November 20, 2012 Note into 5,600,000 common shares (Note 9). | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $39,513 was recorded for the November 20, 2012 Note. | |||||||||||||||||
December 14, 2012 Convertible Note | |||||||||||||||||
On December 14, 2012, the Company converted part of the February 2011 Notes in the amount of $220,255 into a convertible note (the “December 14, 2012 Note”) with a maturity date of four months after the issuance thereof in the aggregate principal amount of $252,280. Consideration under the notes consisted of $220,255 from February 2011 Notes, $10,000 payment of legal fee and an original issue discount of $22,025. The December 14, 2012 Note is repayable in four equal installments with accrued interest, starting on January 18, 2013 and subsequently, the same day on each of the following calendar months. The Company can elect to pay the installments in cash or shares of Company’s common stock. | |||||||||||||||||
The December 14, 2012 Note bears interest at the rate of 8% per annum. In the event of default under certain conditions, the interest will accrue at the rate of 18% per annum. | |||||||||||||||||
The note holder has the option to convert a portion or all of the outstanding balance of the December 14, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of 70% of the three lowest closing bid prices in the 20 trading days prior to conversion. | |||||||||||||||||
In December 2012, the December 14, 2012 Note was assigned to a third party and the Company paid the first installment of $65,032 consisting of principal and interest in 1,078,477 shares. The fair value of the shares was determined to be $96,523 based on the quoted market price of $0.09 per share. The Company recorded $31,491 as loss on settlement of debt (Note 9). | |||||||||||||||||
The Company has allocated the balance of $189,210 of the December 14, 2012 Note to the conversion option and debt based on the calculated fair value. The fair value of the conversion option was recorded at $94,100 and recognized as a derivative liability and the debt was recorded at $95,110. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of 0.35 year, risk free rate of 0.06%, dividend yield of 0% and volatility of 100.88%. The debt discount was being accreted over the 0.45 year term of the December 14, 2012 Note using the effective interest rate method. | |||||||||||||||||
During the nine months ended September 30, 2013, the investor converted the remaining balance of the note of $189,210 and accrued interest on the December 14, 2012 Note into common shares (Note 9). | |||||||||||||||||
December 18, 2012 Convertible Note | |||||||||||||||||
On December 18, 2012, the Company entered into a securities purchase agreement with accredited investors to place convertible notes (the “December 18, 2012 Notes”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $50,000. The note holders have the option to convert a portion or all of the outstanding balance of the December 18, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.10 per share. | |||||||||||||||||
The December 18, 2012 Notes carry an interest rate of 9%, due and payable on the maturity date. | |||||||||||||||||
January 5, 2013 Convertible Notes | |||||||||||||||||
On January 5, 2013, the Company exchanged amounts due to related parties into convertible notes (the “January 5, 2013 Notes”) with no terms of repayment and no interest charges in the aggregate principal amount of $567,729. The related parties have the option to convert a portion or all of the outstanding balance of the January 5, 2013 Notes into shares of the Company’s common stock at a conversion rate of $0.12 per share. | |||||||||||||||||
In July, 2013, one of the related parties assigned $115,000 of the convertible note to a third party with amendments to adjustment of conversion price ratified by the Company. As of September 30, 2013, $452,729 of the January 5, 2013 Notes is outstanding. | |||||||||||||||||
February 27, 2013 Convertible Note | |||||||||||||||||
On February 27, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the “February 27, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $58,500. Consideration under the notes consisted of $46,000 in cash proceeds after $4,000 payment of finders’ fee and an original issue discount of $8,500. The note holder has the option to convert a portion or all of the outstanding balance including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or 70% of the lowest traded price in the 25 trading days prior to conversion. | |||||||||||||||||
The February 27, 2013 Note carries no interest if the Company repays the note within 90 days from issuance. If the Company does not repay the note within 90 days, a one-time interest of 5% shall apply to the principal sum. The company did not repay the note within 90 days of issuance and a one-time interest of 5% was accrued in the current period. | |||||||||||||||||
The finder’s fee of $4,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At September 30, 2013, $1,644 of the $25,084 in deferred financing costs relates to the February 27, 2013 Note. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion option was recorded at $44,700 and recognized as a derivative liability and the debt was recorded at $5,300. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.17%, dividend yield of 0% and volatility of 123.76%. The debt discount is being accreted over the one year term of the February 27, 2013 Note using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $32,692 was recorded for the February 27, 2013 Note. | |||||||||||||||||
April 2, 2013 Convertible Note | |||||||||||||||||
On April 2, 2013, the Company exchanged accounts payable into convertible notes (the “April 2, 2013 Note”) in the aggregate principal amount of $80,967. The note holder has the option to convert a portion or all of the outstanding balance of the April 2, 2013 Note into shares of the Company’s common stock at a conversion rate of $0.07 per share. The note will incur an interest rate of 8% per year unless the Company defaults under certain conditions, in which case, the note will incur an interest rate of 20% per year. | |||||||||||||||||
April 18, 2013 Convertible Note | |||||||||||||||||
On April 18, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the “April 18, 2013 Note”) with a maturity date of eight months after the issuance thereof in the aggregate principal amount of $60,000. Consideration under the notes consisted of $50,000 in cash proceeds after $5,000 payment of transaction costs and an original issue discount of $5,000. The note holder has the option to convert a portion or all of the outstanding balance of the April 18, 2013 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.12 per share or 70% of the average of the lowest closing bidding price in the 20 trading days prior to conversion. | |||||||||||||||||
The April 18, 2013 Note carries an interest rate of 8% per year unless the note is in default under certain conditions, in which case, the interest rate would be 18% per year. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion option was recorded at $27,800 and recognized as a derivative liability and the debt was recorded at $27,200. The fair value of the conversion option was calculated using the Black Scholes option pricing model under the following assumptions: estimated life of eight months, risk free rate of 0.10%, dividend yield of 0% and volatility of 115.82%. The debt discount is being accreted over the eight month term of the April 18, 2013 Note using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $22,932 was recorded for the April 18, 2013 Note. | |||||||||||||||||
May 5, 2013 Convertible Note | |||||||||||||||||
On May 5, 2013, the Company exchanged accounts payable into convertible notes (the “May 5, 2013 Note”) in the aggregate principal amount of $45,000. The note holder has the option to convert a portion or all of the outstanding balance of the May 5, 2013 Note into shares of the Company’s common stock at a conversion rate of $0.07 per share. The note will incur an interest rate of 8% per year unless the Company defaults under certain conditions, in which case, the note will incur an interest rate of 20% per year. | |||||||||||||||||
May 14, 2013 Convertible Note | |||||||||||||||||
On May 14, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the “May 14, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $126,000. The Company also issued 2,000,000 warrants to the note holder, exercisable at $0.06 per share with a four year term. Consideration under the notes consisted of $110,000 in cash proceeds after $5,000 payment of finders’ fee and an original issue discount of $11,000. The note holder has the option to convert a portion or all of the outstanding balance including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.072 per share or 70% of the average of the lowest closing bid prices in the 20 trading days prior to conversion. | |||||||||||||||||
The May 14, 2013 Note carries an interest rate of 8% per year unless the note is in default, in which case, the note will incur an interest rate of 18% per year. | |||||||||||||||||
The finder’s fee of $5,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At September 30, 2013 , $3,096 of the $25,084 in deferred financing costs relates to the May 14, 2013 Note. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option and warrants based on the calculated fair values. The fair value of the conversion option was recorded at $115,000 and fair value of the warrants was recorded as $96,000 recognized as a derivative liabilities and the debt was recorded at $nil. The transaction resulted in an accounting loss on debt financing of $96,000. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.15%, dividend yield of 0% and volatility of 149.87%. The debt discount is being accreted over the one year term of the May 14, 2013 Note using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $47,984 was recorded for the May 14, 2013 Note. | |||||||||||||||||
June 27, 2013 Convertible Note | |||||||||||||||||
On June 27, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the “June 27, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $37,620. Consideration under the notes consisted of $30,000 in cash proceeds after $3,000 payment of finder’s fee and an original issue discount of $4,620. The note holder has the option to convert a portion or all of the outstanding balance of the June 27, 2013 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or 70% of the lowest traded price in the 25 trading days prior to conversion. | |||||||||||||||||
The June 27, 2013 Note carries no interest if the Company repays the note within 90 days from issuance. If the Company does not repay the note within 90 days, a one-time interest of 5% shall apply to the principal sum. The company did not repay the note within 90 days of issuance and a one-time interest of 5% was accrued in the current period. | |||||||||||||||||
The finder’s fee of $3,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At September 30, 2013, $2,244 of the $25,084 in deferred financing costs relates to the June 27, 2013 Note which remains unamortized. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion option was recorded at $30,200 and recognized as a derivative liability and the debt was recorded at $2,800. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.15%, dividend yield of 0% and volatility of 156.41%. The debt discount is being accreted over the one year term of the June 27, 2013 Note using the effective interest rate method. | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $9,349 was recorded for the June 27, 2013 Note. | |||||||||||||||||
June 19, 2013 Convertible Note | |||||||||||||||||
In June, 2013, one of the related parties assigned $115,000 of its convertible note to a third party with amendments ratified by the Company (the “June 19, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $115,000. The note holder has the option to convert a portion or all of the outstanding balance of the June 19, 2013 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.04 per share or 60% of the lowest traded price in the 20 trading days prior to conversion. | |||||||||||||||||
The June 19, 2013 Note carries an interest rate of 10% per year unless the note is in default under certain conditions, in which case, the interest rate would be 20% per year. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion option was recorded at $31,600 and recognized as a derivative liability and the debt was recorded at $83,400. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.15%, dividend yield of 0% and volatility of 156.46%. The debt discount is being accreted over the one year term of the June 19, 2013 Note using the effective interest rate method. | |||||||||||||||||
During the nine months ended September 30, 2013, the third party converted the principal amount of $83,000 and accrued interest of the June 19, 2013 Note into 10,818,783 common shares (Note 9). | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $8,778 was recorded for the June 19, 2013 Note. | |||||||||||||||||
July 12, 2013 Convertible Note | |||||||||||||||||
In July, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the “July 12, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount of $125,000. The Company also issued 4,166,667 warrants to the note holder, exercisable at $0.03 per share with a five year term. Consideration under the notes consisted of $110,000 in cash proceeds after $15,000 payment of finders’ fee and an original issue discount of $11,000. The note holder has the option to convert a portion or all of the outstanding balance of the July 12, 2013 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.03 per share or 70% of the average of the lowest closing bid prices in the 20 trading days prior to conversion. | |||||||||||||||||
The July 12, 2013 Note carries an interest rate of 8% per year unless the note is in default, in which case, the note will incur an interest rate of 18% per year. | |||||||||||||||||
The finder’s fee of $15,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At September 30, 2013 , $11,712 of the $25,084 in deferred financing costs relates to the July 12, 2013 Note which remains unamortized, and is presented in current assets on the Company’s Balance Sheet. | |||||||||||||||||
The Company has allocated the net proceeds to the conversion option and warrants based on the calculated fair values. The fair value of the conversion option was recorded at $114,000 and fair value of the warrants was recorded as $104,000 recognized as a derivative liabilities and the debt was recorded at $nil. The transaction resulted in an accounting loss on debt financing of $104,000. The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.15%, dividend yield of 0% and volatility of 161.97%. The debt discount is being accreted over the one year term of the July 12, 2013 Note using the effective interest rate method. | |||||||||||||||||
During the nine months ended September 30, 2013, the investor converted the principal amount and accrued interest of $28,200 of the July 12, 2013 Note into 5,000,000 common shares (Note 9). | |||||||||||||||||
For the nine months ended September 30, 2013, accretion of the debt discount of $26,929 was recorded for the July 12, 2013 Note. | |||||||||||||||||
LOANS_PAYABLE
LOANS PAYABLE | 9 Months Ended |
Sep. 30, 2013 | |
Payables and Accruals [Abstract] | ' |
LOANS PAYABLE | ' |
Note 6: Loans payable | |
As at September 30, 2013, there were unsecured loan advances from third parties in the amount of $10,000 (December 31, 2012 - $10,000), which is due on demand. The loan is accruing interest of 10% per annum. |
PROMISSORY_NOTES
PROMISSORY NOTES | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
PROMISSORY NOTES | ' |
Note 7: Promissory noteS | |
During the year ended December 31, 2011, the Company issued a note in the amount of $100,000 towards future legal services, which matured July 24, 2011. As of December 31, 2012, the Company had received legal services in the amount of $100,000 against the note. The note bears interest at 10% per annum and may be converted into shares at equal to lower of $0.09 or 65% of the arithmetic average of the lowest closing bid prices of the Company’s shares during the consecutive twenty day trading period prior to notice of conversion. | |
During the year ended December 31, 2012, the Company issued 500,000 shares to the holder of the note in exchange for the note holder’s agreement to forbear from pursuing collections actions on the outstanding note (Note 9) and converted the promissory note into three convertible notes (Note 5). | |
During the year ended December 31, 2012, the Company issued additional promissory notes in the amount of $67,942, of which $38,000 of promissory notes were issued to an officer and a director of the Company (Note 8). The promissory notes had no interest charges and no fixed repayment terms. | |
During the nine months ended September 30, 2013, the Company converted $210,000 of accounts payable into a promissory note, payable on a preset schedule of payments starting in April 2013. Any of the late payments will incur interest at the rate of 9% per year. The Company had not made any payments and was in default of the payment schedule. The payments in default are accruing interest of 9% per year. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
Note 8: Related Party Transactions | |
During the nine months ended September 30, 2013, the Company entered into transactions with certain officers and directors of the Company as follows: | |
(a) incurred $288,000 (September 30, 2012 - $173,500) in management fees and $99,000 (September 30, 2012 - $67,500) in research and development services paid to officers and directors during the period; | |
(b) recorded $40,238 (September 30, 2012 - $31,333) in stock based compensation for the fair value of options granted to management that were granted and or vested during the period; | |
(c) converted $83,000 (September 30, 2012 - $50,000) of debt due to related parties during the period, which were settled with shares; | |
(d) issued $nil (September 30, 2012 - $38,000) in promissory notes to an officer and director of the Company (Note 5). | |
(e) converted $567,729 (September 30, 2012 - $nil) of payable into convertible notes to officers, consultant and a director of the Company (Note 5). | |
All related party transactions (other than stock based consideration) involving provision of services were recorded at the exchange amount, which is the amount established and agreed to by the related parties as representing fair value. The Company accounted for the debt settlement transactions with related parties at management’s estimate of fair value, using amounts similar to arm’s length settlements for debt settled. | |
At September 30, 2013, the Company had amounts owing to directors, consultants and officers of $381,846 (December 31, 2012 - $293,805). Amounts due to related parties are unsecured, non-interest bearing and have no specific terms of repayment. |
CAPITAL_STOCK
CAPITAL STOCK | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Brokers and Dealers [Abstract] | ' | ||||||||||||||
CAPITAL STOCK | ' | ||||||||||||||
Note 9: Capital Stock | |||||||||||||||
Share Capital | |||||||||||||||
Prior to March 27, 2007, the authorized capital of the Company consisted of 50,000,000 common shares with $0.001 par value and 5,000,000 non-voting preferred shares with $0.001 par value. On March 27, 2007, the Company’s Articles of Incorporation were amended to increase the authorized shares of common stock from 50,000,000 shares of common stock to 200,000,000 shares. On June 28, 2007, the Company completed a reverse stock split thereby issuing 1 new share for each 2.5 outstanding shares of the Company’s common stock. Accordingly, the Company’s authorized share capital was decreased from 200,000,000 common shares to 80,000,000 common shares. On January 22, 2009 the authorized shares of common stock increased from 80,000,000 shares to 500,000,000 shares. Effective July 10, 2009, the Company executed a further 1 for 10 reverse stock split while simultaneously reducing the authorized shares of common stock to 50,000,000 common shares with a $0.001 par value. Effective February 21, 2010, the Company increased its authorized shares of common stock from 50,000,000 shares to 150,000,000 common shares. The Company maintained its authorized shares of preferred stock at 5,000,000. | |||||||||||||||
All prior period share transactions included in the Company’s stock transactions and balances have been retroactively restated for the transactions described above. | |||||||||||||||
2013 Share Transactions | |||||||||||||||
In January 2013, the Company issued 231,332 shares of its common stock for conversion of one of the two November 1, 2012 Notes (Note 5) at a conversion price of $.0662 per share. The fair value of the shares was determined to be $36,550 based on the quoted market price of $0.158 per share. The Company recorded $21,230 as loss on settlement of debt. | |||||||||||||||
In February 2013, the Company issued 250,000 common shares to a consultant pursuant to a consulting agreement. The fair value of the shares was determined to be $28,925 based on the quoted market price of $0.116 per share. | |||||||||||||||
In February 2013, the Company issued 1,898,588 common shares on a cashless conversion of 3,000,000 warrants at an exercise price of $0.0572. The fair value of the shares was determined to be $246,816 based on the quoted market price of $0.13 per share. | |||||||||||||||
In March 2013, the Company issued 100,000 common shares to a consultant pursuant to a consulting agreement. The fair value of the shares was determined to be $10,010 based on the quoted market price of $0.1001 per share. | |||||||||||||||
In February and March 2013, the Company received subscription proceeds of $242,950. The subscribers purchased 3,470,709 share units at $0.07 per unit. Each unit consists of one share of Company’s common stock and one warrant exercisable at $0.07, which expires in two years. The fair value of these warrants was determined to be $245,000. | |||||||||||||||
During the nine month period ended September 30, 2013, the Company issued 3,176,334 shares of its common stock for conversion of December 14, 2012 Note (Note 5) at a conversion price of $.0603 per share. The fair value of the shares was determined to be $404,849 based on the average quoted market price of $0.1245 per share. The Company recorded $213,316 as loss on settlement of debt. | |||||||||||||||
During the nine month period ended September 30, 2013, the Company issued 1,944,444 shares of its common stock for partial conversion of September 18, 2012 Note (Note 5) at an average conversion price of $.036 per share. The fair value of the shares was determined to be $166,667 based on the average quoted market price of $0.0857 per share. The Company recorded $96,667 as loss on settlement of debt. | |||||||||||||||
During the nine month period ended September 30, 2013, the Company issued 1,050,000 shares of its common stock for partial conversion of August 8, 2012 Note (Note 5) at an average conversion price of $.0681 per share. The fair value of the shares was determined to be $110,700 based on the average quoted market price of $0.1063 per share. The Company recorded $39,160 as loss on settlement of debt. | |||||||||||||||
In April 2013, the Company issued 281,490 shares of its common stock for conversion of the balance of the November 1, 2012 Notes (Note 5) at a conversion price of $.0607 per share. The fair value of the shares was determined to be $28,490 based on the quoted market price of $0.108 per share. The Company recorded $11,059 as loss on settlement of debt. | |||||||||||||||
During the nine month period ended September 30, 2013, the Company issued 18,464,921 shares of its common stock for settlement of accounts payable in the amount of $510,572. The fair value of the shares was determined to be $1,101,527 based on the average quoted market price of $0.0597 per share. The Company recorded $585,955 as loss on settlement of debt. | |||||||||||||||
During the nine month period ended September 30, 2013, the Company issued 250,000 shares of its restricted common stock under a settlement agreement with a former director of the Company. The fair value of the shares was determined to be $8,175 based on the average quoted market price of $0.0327 per share. The Company recorded $8,175 as stock-based management fee. | |||||||||||||||
During the nine month period ended September 30, 2013, the Company issued 5,368,956 shares of its common stock for conversion of October 9, 2012 Convertible Notes (Note 5). The fair value of the shares was determined to be $248,278 based on the average quoted market price of $0.0462 per share. The Company recorded $135,527 as loss on settlement of debt. | |||||||||||||||
During the nine month period ended September 30, 2013, the Company issued 3,000,000 shares of its common stock for conversion of the balances of the August 8, 2012 Note and November 20, 2013 Note (Note 5) at an average conversion price of $.021 per share. The fair value of the shares was determined to be $137,200 based on the average quoted market price of $0.0457 per share. The Company recorded $74,200 as loss on settlement of debt. | |||||||||||||||
Between July and September 30, 2013, the Company issued 10,818,783 shares of its common stock for conversion of June 19, 2013 Convertible Note (Note 5). The fair value of the shares was determined to be $181,606 based on the average quoted market price of $0.0168 per share. The Company recorded $79,078 as loss on settlement of debt. | |||||||||||||||
In August, 2013, the Company issued 5,000,000 shares of its common stock for conversion of July 12, 2013 Convertible Note (Note 5). The fair value of the shares was determined to be $52,500 based on the quoted market price of $0.0105 per share. The Company recorded $24,300 as loss on settlement of debt. | |||||||||||||||
In August and September 2013, the Company issued 3,600,000 shares and is obligated to issue additional 2,047,238 shares of its common stock for conversion of November 20, 2012 Convertible Note (Note 5). The fair value of the shares was determined to be $52,960 based on the average quoted market price of $0.0147 per share. The Company recorded $22,748 as loss on settlement of debt. | |||||||||||||||
In September, 2013, the Company issued 1,000,000 shares of its common stock for partial conversion of September 18, 2012 Note (Note 5) at an average conversion price of $.005 per share. The fair value of the shares was determined to be $10,500 based on the quoted market price of $0.0105 per share. The Company recorded $5,500 as loss on settlement of debt. | |||||||||||||||
In August and September 2013, the Company issued 8,000,000 shares of its common stock as part of the settlement agreement of February 8, 2013. The fair value of the shares was determined to be $110,100 based on the average quoted market price of $0.0138 per share. The Company recorded $110,100 as loss on settlement of debt. | |||||||||||||||
2012 Share Transactions | |||||||||||||||
On March 15, 2012, the Company issued 333,334 shares of its restricted common stock to related parties, pursuant to debt settlement agreements to settle $50,000 of outstanding trade payable. At the time of issuance the fair value of the shares was determined to be $50,000 based on the quoted market price of $0.15 per share. | |||||||||||||||
On March 15, 2012, the Company issued 400,000 shares of its restricted common stock pursuant to a debt settlement and a consulting agreement. At the time of issuance the fair value of the shares was determined to be $71,200 based on the quoted market price of $0.15 per share. The Company recorded $9,930 as gain on settlement of debt. | |||||||||||||||
On March 15, 2012, the Company issued 789,778 shares of its restricted common stock in settlement of accrued interest on the outstanding 2011 Notes. At the time of issuance the fair value of the shares was determined to be $118,467 based on the quoted market price of $0.15 per share. No gain or loss was recorded on settlement. | |||||||||||||||
In March 2012, the Company received subscription proceeds of $85,000. The subscribers purchased 733,334 share units at $0.15 per unit. Each unit consists of 1 share of Company’s common stock and half a warrant exercisable at $0.40, which expires in two years. The fair value of these warrants was determined to be $5,133. | |||||||||||||||
In April 2012, the Company received subscription proceeds of $345,000. The subscribers purchased 2,300,000 share units at $0.15 per unit. Each unit consists of 1 share of Company’s common stock and half a warrant exercisable at $0.40, which expires in two years. The fair value of these warrants was determined to be $123,000. | |||||||||||||||
In April, 2012, the Company issued 100,000 shares of its restricted common stock pursuant to a debt settlement and a consulting agreement. At the time of issuance the fair value of the shares was determined to be $18,500 based on the quoted market price of $0.185 per share. The Company recorded $18,758 as gain on settlement. | |||||||||||||||
In April 2012, the Company issued 933,333 restricted common shares, at $0.15 per share, for proceeds of $140,000 received in October 2011, in a private placement. | |||||||||||||||
In April 2012, the Company issued 1,000,000 common shares to a consultant pursuant to a consulting agreement effective October 1, 2011. | |||||||||||||||
In April, 2012, the Company issued 163,334 shares of its restricted common stock in settlement of accrued interest on the outstanding 2011 Notes. At the time of issuance the fair value of the shares was determined to be $24,500 based on the quoted market price of $0.15 per share. No gain or loss was recorded on settlement. | |||||||||||||||
In May 2012, the Company issued 14,000,000 common shares to consultants pursuant to a consulting agreement (Note 12). At the time of issuance the fair value of the shares was determined to be $1,918,000 based on the quoted market price of $0.137 per share. | |||||||||||||||
In June 2012, the Company issued 35,179 shares of its restricted common stock pursuant to a consulting agreement. The fair value of the shares was determined to be $6,000 based on the quoted market price of $0.17 per share. | |||||||||||||||
In August 2012, the Company issued 500,000 shares of its restricted common stock pursuant to a consulting agreement. The fair value of the shares was determined to be $74,000 based on the quoted market price of $0.148 per share. | |||||||||||||||
In September 2012, the Company issued 500,000 shares of its restricted common stock to the holder of a promissory note in exchange for the note holder’s agreement to forebear from pursuing collection action on that note (Note 7). The fair value of the shares was determined to be $72,750 based on the quoted market price of $0.146 per share. | |||||||||||||||
In November 2012, the Company issued 437,063 shares of its common stock on election by the holder to convert part of a convertible debt (Note 5) at a conversion price of $.0572 per share. The fair value of the shares was determined to be $55,944 based on the quoted market price of $0.128 per share. The Company recorded $30,944 as loss on settlement of debt. | |||||||||||||||
In November 2012, the Company issued 597,185 shares of its common stock on election by the holder to convert part of a convertible debt (Note 5) at a conversion price of $.0586 per share. The fair value of the shares was determined to be $63,003 based on the quoted market price of $0.106 per share. The Company recorded $28,003 as loss on settlement of debt. | |||||||||||||||
In November 2012, the Company issued 228,479 shares of its common stock on election by the holder to convert part of a convertible debt (Note 5) at a conversion price of $.0601 per share. The fair value of the shares was determined to be $21,591 based on the quoted market price of $0.095 per share. The Company recorded $7,854 as loss on settlement of debt. | |||||||||||||||
In December 2012, the Company issued 1,078,477 shares of its common stock as payment of installment of $65,032 for a convertible debt (Note 5) at a conversion price of $.0603 per share. The fair value of the shares was determined to be $96,523 based on the quoted market price of $0.09 per share. The Company recorded $31,491 as loss on settlement of debt. | |||||||||||||||
Stock Compensation Plan | |||||||||||||||
On October 14, 2009, the Company adopted the 2009 Stock Incentive Plan (the “2009 Plan”) which supersedes and replaces the 2007 Stock Plan. The 2009 Plan allows for the issuance of up to 10,000,000 common shares. Options granted under the Plan shall be at prices and for terms as determined by the Board of Directors. | |||||||||||||||
On April 30, 2012, the Company granted 250,000 stock options to a management at an exercise price of $0.18 per share, vesting monthly over thirty six month period. The aggregate fair value of the grant was estimated at $45,000, or $0.18 per option, using the Black-Scholes Option Pricing Model with weighted average assumptions as follows: a risk free interest rate of 1.95%, a dividend yield of 0%, an expected volatility of 199.0%, and an expected life of 10 years. | |||||||||||||||
On May 8, 2012, the Company granted 250,000 stock options to a consultant at an exercise price of $0.17 per share, vesting monthly over twelve month period. The aggregate fair value of the grant was estimated at $40,000, or $0.17 per option, using the Black-Scholes Option Pricing Model with weighted average assumptions as follows: a risk free interest rate of 1.71%, a dividend yield of 0%, an expected volatility of 199.0%, and an expected life of 10 years. | |||||||||||||||
The expensed portion of the value of the vesting options during the nine months ended September 30, 2013 was $43,091 (September 30, 2012 - $106,072) which was recorded as stock based consulting and management fees. During the period, stock-based consulting and management fees also includes share based compensation. | |||||||||||||||
Share purchase options | |||||||||||||||
A summary of the Company’s stock options as of September 30, 2013 and changes during the period is presented below: | |||||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||||
Options | Exercise Price | Remaining Life | |||||||||||||
Balance, December 31, 2011 | 6,278,000 | $ | 0.18 | 6.85 | |||||||||||
Issued | 500,000 | 0.17 | 9.35 | ||||||||||||
Cancelled/Forfeited | (250,000 | ) | 0.35 | — | |||||||||||
Balance, December 31, 2012 | 6,528,000 | 0.18 | 6.05 | ||||||||||||
Issued | — | — | — | ||||||||||||
Cancelled/Forfeited | — | — | — | ||||||||||||
Balance, September 30, 2013 | 6,528,000 | $ | 0.18 | 5.3 | |||||||||||
At September 30, 2013, the intrinsic value of the vested options was equal to $nil (December 31, 2012 - $nil). | |||||||||||||||
A summary of the status of the Company’s unvested options as of September 30, 2013 is presented below: | |||||||||||||||
Number of | Weighted Average | ||||||||||||||
Shares | Grant-Date | ||||||||||||||
Fair Value | |||||||||||||||
Unvested, December 31, 2012 | 379,575 | $ | 0.18 | ||||||||||||
Granted | — | — | |||||||||||||
Vested | (247,630 | ) | 0.18 | ||||||||||||
Cancelled/Forfeited | — | — | |||||||||||||
Unvested, September 30, 2013 | 131,945 | $ | 0.17 | ||||||||||||
Share Purchase Warrants | |||||||||||||||
In March, 2012, the Company issued 366,668 share purchase warrants to acquire an equivalent number of common shares of the Company, at an exercise price of $0.40 per share for an exercise period of up to two years from the issuance date. The warrants were issued pursuant to the private placement of $110,000 and included within equity. The fair value of these warrants was determined to be $5,133, using the Black-Scholes Option Pricing Model with an expected life of 2 years, a risk free interest rate of 0.37%, a dividend yield of 0%, and an expected volatility of 63%. | |||||||||||||||
In April, 2012, the Company issued 1,150,000 share purchase warrants to acquire an equivalent number of common shares of the Company, at an exercise price of $0.40 per share for an exercise period of up to two years from the issuance date. The warrants were issued pursuant to a private placement and included within equity. The fair value of these warrants was determined to be $123,000, using the Black-Scholes Option Pricing Model with an expected life of 2 years, a risk free interest rate of 0.27%, a dividend yield of 0%, and an expected volatility of 146.6%. | |||||||||||||||
In October, 2012, the Company issued 3,000,000 share purchase warrants to acquire an equivalent number of common shares of the Company, at an exercise price of $0.25 per share for an exercise period of up to four years from the issuance date. The warrants were issued pursuant to a convertible debt with price adjustment features. The residual fair value of these warrants was determined to be $300,000 and recognized as a derivative liability. | |||||||||||||||
In December, 2012, the Company issued 1,000,000 share purchase warrants to acquire an equivalent number of common shares of the Company, at an exercise price of $0.10 per share for an exercise period of up to five years from the issuance date. The warrants were issued pursuant to a private placement and included within equity. The fair value of these warrants was determined to be $178,000, using the Black-Scholes Option Pricing Model with an expected life of 5 years, a risk free interest rate of 0.87%, a dividend yield of 0%, and an expected volatility of 199.0%. | |||||||||||||||
In March, 2013, the Company issued 3,470,709 share purchase warrants to acquire an equivalent number of common shares of the Company, at an exercise price of $0.07 per share for an exercise period of up to two years from the issuance date. The warrants were issued pursuant to a private placement and included within equity. The fair value of these warrants was determined to be $245,000, using the Black-Scholes Option Pricing Model with an expected life of 2 years, a risk free interest rate of 0.24%, a dividend yield of 0%, and an expected volatility of 131.02%. | |||||||||||||||
In May, 2013, the Company issued 2,000,000 share purchase warrants to acquire an equivalent number of common shares of the Company, at an exercise price of $0.06 per share for an exercise period of up to four years from the issuance date. The warrants were issued pursuant to a convertible debt with price adjustment features. The residual fair value of these warrants was determined to be $96,000 and recognized as a derivative liability. | |||||||||||||||
In July, 2013, the Company issued 4,166,667 share purchase warrants to acquire an equivalent number of common shares of the Company, at an exercise price of $0.04 per share for an exercise period of up to five years from the issuance date. The warrants were issued pursuant to a convertible debt with price adjustment features. The residual fair value of these warrants was determined to be $104,000 and recognized as a derivative liability. | |||||||||||||||
A summary of the Company’s share purchase warrants as of September 30, 2013 and changes during the period is presented below: | |||||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||||
Warrants | Exercise Price | Remaining Life | |||||||||||||
Balance, December 31, 2011 | 12,106,355 | $ | 0.56 | 2.81 | |||||||||||
Issued | 5,516,668 | 0.26 | 3.32 | ||||||||||||
Exercised, cancelled or expired | (714,400 | ) | 2.33 | — | |||||||||||
Balance, December 31, 2012 | 16,908,623 | $ | 0.39 | 2.19 | |||||||||||
Issued | 9,637,376 | 0.05 | 2.52 | ||||||||||||
Exercised | (3,000,000 | ) | 0.25 | — | |||||||||||
Extinguished or expired | (3,696,071 | ) | 0.39 | — | |||||||||||
Balance, September 30, 2013 | 19,849,928 | $ | 0.24 | 3.35 |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION AND NON-CASH INVESTING AND FINANCING ACTIVITIES | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Notes to Financial Statements | ' | ||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION AND NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ||||||||||
Note 10: Supplemental Cash Flow Information AND NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
Nine Months Ended | |||||||||||
30-Sep-13 | |||||||||||
Shares/warrants | Amount | ||||||||||
$ | |||||||||||
Shares issued pursuant to consulting arrangements | 350,000 | 38,935 | |||||||||
Shares issued pursuant to debt settlement | 18,464,921 | 400,472 | |||||||||
Shares issued pursuant to a settlement agreement | 8,000,000 | 110,100 | |||||||||
Shares issued pursuant to notes conversion | 30,471,339 | 699,427 | |||||||||
Nine Months Ended | |||||||||||
30-Sep-12 | |||||||||||
Shares/warrants | Amount | ||||||||||
$ | |||||||||||
Shares issued pursuant to debt settlement agreements | 2,126,447 | $ | 326,937 | ||||||||
Common shares issued pursuant to consulting service arrangements | 14,535,179 | $ | 1,998,000 | ||||||||
See Notes 5 and 9 for additional disclosure on non-cash transactions. | |||||||||||
Period Ended June 30, | |||||||||||
2013 | 2012 | ||||||||||
Interest paid in cash | $ | — | $ | — | |||||||
Income taxes paid | $ | — | $ | — |
CONTINGENCIES_AND_COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
CONTINGENCIES AND COMMITMENTS | ' | |
Note 11: ContingencIES AND COMMITMENTs | ||
Contingencies | ||
Tax Filings | ||
The Company has not filed income tax returns for several years in certain operating jurisdictions (Note 10), and may be subject to possible compliance penalties and interest. Management is currently not able to make a reliably measurable provision for possible liability for penalties and interest, if any, at this time, and the Company may be liable for such amounts upon assessment. Penalties and interest, if assessed in the future, will be recorded in the period such amounts are determinable. | ||
Commitments | ||
Combined Research and Operating Obligations | ||
Effective May 25, 2010, the Company entered into a research and license Option Agreement with the Mayo Clinic for the development and possible commercial use of a cancer vaccine. Subject to the approval and guidance of the United States Food and Drug Administration (“FDA”) the Mayo Clinic plans to conduct a Phase I human clinical trial (“Phase I Trial”) to test and develop the Company’s technology. | ||
The Company has agreed that, during the period of the option and upon approval of FDA to conduct Phase I Trials, will pay all the costs incurred by the Mayo Clinic, not to exceed a total of $841,000, of which, $510,572 has been paid and $50,000 accrued as of September 30, 2013 . Both Parties agree that within 30 days after the Mayo Clinic informs the Company in writing about the receipt of FDA approval, the parties shall enter into an a formal research agreement. Management anticipates that Phase 1 Trials will begin in the fourth quarter of 2013. An initial payment of $250,000 will be required within 30 days of receiving notice from the Mayo Clinic that the Phase 1 Trial will commence. | ||
Management Services Agreement | ||
In February 2011, the Company approved an employment agreement with Dr. Wilson with an initial term of 2 years, which may be automatically extended for successive one-year terms. This employment agreement provides for annual compensation of $180,000 and the grant of an option to acquire 2,000,000 shares of the Company’s common stock at $0.19 per share, 50% of which vested on March 16, 2011, while the remainder vested monthly over a period of two years (41,667 per month). The options shall be exercisable for at least five years. | ||
Consultant Agreements | ||
In April 2012, the Company entered into an investors’ relation consulting agreement for a one year term, with a one-time right to terminate the agreement at its six month anniversary. The consulting agreement provided for the Company to issue 620,690 shares to the consultant and a monthly payment of $7,500. | ||
In April 2012, the Company entered into financial consulting service agreements, which included compensation of 14,000,000 shares of common stock, whereby the Company agreed to issue additional shares to the consultants to restore their holdings to 24.8% of fully diluted capitalization of the Company if the Company completes a re-organization, re-capitalization or a liquidity event during the eighteen months commencing with the signing of these agreements. In May 2013, the Company recovered 2,800,000 of 14,000,000 common shares issued to the consultant during the year ended December 31, 2012, under a settlement agreement. | ||
In May 2012, the Company entered into a one year consulting services agreement superseding the previous management consulting agreement with Mr. Corin to provide expertise in the areas of finance and corporate development to the Management and Board of TapImmune. The consulting services agreement provides for a consulting fee of $12,000 per month from May 2012 to December 2012 and $10,000 for the following four months. The Company also granted 250,000 options to Mr. Corin, vesting equally over twelve months at an exercise price of $0.17 with a ten year term. | ||
Rental Lease Agreement | ||
In December 2011, the Company entered into a lease agreement, to start in January 2012 for a two year period. The Company will pay a monthly basic rent of $7,152 and additional rent for operating costs of 2.20% of total operating expenses of the property. | ||
The Company has obligations under various research and consulting agreements through December 31, 2014. The aggregate minimum annual payments for the years ending December 31 are as follows: | ||
2013 | $422,749 | |
2014 | 22,284 | |
$445,033 | ||
ACCOUNTS_PAYABLE_AND_ACCRUED_L
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ' | ||||||||
Note 12: accounts payable and accrued liabilities | |||||||||
Accounts Payable and Accrued Liabilities | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
$ | $ | ||||||||
Trade accounts payable | 983,303 | 1,663,315 | |||||||
Accrued liabilities | 136,395 | 242,245 | |||||||
Employee payroll | 127,083 | 61,458 | |||||||
Accrued interest | 210,517 | 74,698 | |||||||
1,457,298 | 2,041,716 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
Note 13: SUBSEQUENT EVENTS | |
In November, 2013, the Company entered into securities purchase agreements with accredited investors to place convertible notes with a maturity date of six months after the issuance thereof in the aggregate principal amount of $143,000. Consideration under the notes consisted of $130,000 in cash proceeds and an original issue discount of 10%. The note holders have the option to convert a portion or all of the outstanding balance of the notes including any accrued interest into shares of the Company’s common stock at a conversion rate of lesser than $0.01 per share or a conversion price available to any of the other debtors. The note carries no interest unless the note is in default, in which case, the note will incur an interest rate of 20% per year. | |
In November, 2013, the Company exchanged partial amount due to a related party into a convertible note with a maturity date of six months after the issuance thereof in the aggregate principal amount of $56,667. Consideration under the notes consisted of $51,000 of accounts payable and an original issue discount of 10%. The note was issued on the same terms as the notes issued to accredited investors in November 2013.In November, 2013, one of the convertible note holders elected to convert $6,360, a portion of the note, into 1,200,000 shares of the Company at a conversion price of $0.0053. |
RESTATEMENT_OF_CONSOLIDATED_FI1
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Impact of the restatement | ' | ||||||||||||
As reported | Adjustment | As restated | |||||||||||
Balance sheet data — December 31, 2012 | |||||||||||||
Cash | $ | 50,679 | $ | (16,840 | ) | $ | 33,839 | ||||||
Total Assets | 104,212 | (16,840 | ) | 87,372 | |||||||||
Accounts payable and accrued liabilities | 2,058,556 | (116,840 | ) | 1,941,716 | |||||||||
Derivative liability – conversion option | 798,300 | 69,275 | 867,575 | ||||||||||
Derivative liability - warrants | 677,086 | 300,000 | 977,086 | ||||||||||
Convertible notes payable | 1,376,230 | 100,000 | 1,476,230 | ||||||||||
Due to related parties | 366,697 | 6,649 | 373,346 | ||||||||||
Total liabilities | 5,770,809 | 359,084 | 6,129,893 | ||||||||||
Additional paid-in capital | 43,545,947 | (62,000 | ) | 43,483,947 | |||||||||
Deficit accumulated during the development stage | (49,580,159 | ) | (313,924 | ) | (49,894,083 | ) | |||||||
Stockholders’ deficiency | $ | (5,666,597 | ) | $ | (375,924 | ) | $ | (6,042,521 | ) | ||||
impact of the restatement1 | ' | ||||||||||||
As reported | Adjustment | As restated | |||||||||||
Consolidated Statement of Operations data | |||||||||||||
For the year ended December 31, 2012 | |||||||||||||
Management fees | $ | 295,600 | $ | 6,649 | $ | 302,249 | |||||||
Net Loss Before Other Items | (6,222,798 | ) | (6,649 | ) | (6,229,447 | ) | |||||||
Changes in fair value of derivative liabilities | 536,527 | (307,375 | ) | 229,252 | |||||||||
NET LOSS | $ | (5,857,943 | ) | $ | (313,924 | ) | $ | (6,171,867 | ) | ||||
impact of the restatement2 | ' | ||||||||||||
As reported | Adjustment | As restated | |||||||||||
Consolidated Statement of Operations data | |||||||||||||
From July 27, 1999 (inception) to December 31, 2012 | |||||||||||||
Management fees | $ | 3,067,654 | $ | 6,649 | $ | 3,074,303 | |||||||
Net Loss Before Other Items | (41,491,894 | ) | (6,649 | ) | (41,498,543 | ) | |||||||
Changes in fair value of derivative liabilities | 4,611,667 | (307,375 | ) | 4,304,392 | |||||||||
NET LOSS | $ | (49,580,159 | ) | $ | (313,924 | ) | $ | (49,894,083 | ) | ||||
DERIVATIVE_WARRANT_AND_CONVERS1
DERIVATIVE WARRANT AND CONVERSION OPTION LIABILITY AND FAIR VALUE (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||||||||||
Value the warrants and conversion option | ' | ||||||||||||||||||||||||||
31-Dec-12 | 30-Sep-13 | ||||||||||||||||||||||||||
Expected Life (Years) | Risk free Rate | Dividend yield | Volatility | Expected Life (Years) | Risk free Rate | Dividend yield | Volatility | ||||||||||||||||||||
Share purchase warrants | 0.08 to 3.78 | 0.02% to 0.36% | 0 | % | 199 | % | 1.10 to 3.03 | 0.09% to 0.63% | 0 | % | 199 | % | |||||||||||||||
Value the warrants and conversion option | ' | ||||||||||||||||||||||||||
31-Dec-12 | 30-Sep-13 | ||||||||||||||||||||||||||
Expected Life (Years) | Risk free Rate | Dividend yield | Volatility | Expected Life (Years) | Risk free Rate | Dividend yield | Volatility | ||||||||||||||||||||
Conversion Option | 0.003 to 0.89 | 0.05% to 0.19% | 0 | % | 100.88% to 141.21% | 0.14 to 0.78 | 0.02% to 0.15% | 0 | % | 108% to 161.97% | |||||||||||||||||
Financial assets and liabilities measured at fair value | ' | ||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Derivative liability - warrants | $ | 89,195 | — | — | $ | 89,195 | $ | 89,195 | |||||||||||||||||||
Derivative liability – conversion option | 195,300 | — | — | 195,300 | 195,300 | ||||||||||||||||||||||
Total | $ | 284,495 | — | — | $ | 284,495 | $ | 284,495 | |||||||||||||||||||
Financial assets and liabilities measured at fair value | ' | ||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Derivative liability - warrants | $ | 977,086 | — | — | $ | 977,086 | $ | 977,086 | |||||||||||||||||||
Derivative liability – conversion option | 867,575 | — | — | 867,575 | 867,575 | ||||||||||||||||||||||
Total | $ | 1,844,661 | — | — | $ | 1,844,661 | $ | 1,844,661 | |||||||||||||||||||
Changes in fair value | ' | ||||||||||||||||||||||||||
Fair Value Measurements Using Level 3 Inputs | |||||||||||||||||||||||||||
Derivative liability - warrants | Derivative liability – conversion option | Total | |||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,317,834 | $ | — | $ | 1,317,834 | |||||||||||||||||||||
Additions during the year | 300,000 | 737,700 | 1,037,700 | ||||||||||||||||||||||||
Total unrealized (gains) or losses included in net loss | (597,127 | ) | 129,875 | (467,252 | ) | ||||||||||||||||||||||
Debt settlement | (43,621 | ) | — | (43,621 | ) | ||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | ||||||||||||||||||||||||
Balance, December 31, 2012 | 977,086 | 867,575 | 1,844,661 | ||||||||||||||||||||||||
Additions during the period | 200,000 | 363,300 | 563,300 | ||||||||||||||||||||||||
Total unrealized (gains) or losses included in net loss | (1,087,891 | ) | (1,035,575 | ) | (2,123,466 | ) | |||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | ||||||||||||||||||||||||
Balance, September 30, 2013 | $ | 89,195 | $ | 195,300 | $ | 284,495 |
CONVERTIBLE_NOTES_PAYABLE_Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Payables and Accruals [Abstract] | ' | ||||||||||||||||
Summary of debt instrument transactions | ' | ||||||||||||||||
Face Value | Principal Repayment/ | Unamortized | Balance at | ||||||||||||||
Settlement/Re-issued | Note | September 30, | |||||||||||||||
Discount | 2013 | ||||||||||||||||
February 2011 Secured Convertible Notes | |||||||||||||||||
Senior Secured Notes, due February 24, 2014 | $ | 1,184,694 | $ | 203,836 | $ | 53,676 | $ | 927,182 | |||||||||
April 2011 Secured Convertible Notes | |||||||||||||||||
Senior Secured Notes, due April 4, 2014 | 215,000 | — | 17,481 | 197,519 | |||||||||||||
June 2011 Secured Convertible Note | |||||||||||||||||
Senior Secured Notes, due June 6, 2014 | 30,000 | — | 1,885 | 28,115 | |||||||||||||
August 8, 2012 Convertible Note | |||||||||||||||||
Note due August 8, 2013 | 111,430 | 111,430 | — | — | |||||||||||||
August 12, 2012 Convertible Note | |||||||||||||||||
Note became due November 12, 2012 | 27,500 | — | — | 27,500 | |||||||||||||
August 20, 2012 Convertible Note | |||||||||||||||||
Note due August 20, 2013 | 20,000 | — | — | 20,000 | |||||||||||||
September 18, 2012 Convertible Note | |||||||||||||||||
Note due October 1, 2013 | 82,500 | 58,750 | — | 23,750 | |||||||||||||
October 2012 Convertible Note | |||||||||||||||||
Note due October 15, 2013 | 340,000 | — | 13,972 | 326,028 | |||||||||||||
October 9, 2012 Convertible Notes | 100,000 | 100,000 | — | — | |||||||||||||
Note due April 30, 2013 | |||||||||||||||||
November 1, 2012 Convertible Note | |||||||||||||||||
Note due April 30, 2013 | 31,471 | 31,471 | — | — | |||||||||||||
November 20, 2012 Convertible Note | |||||||||||||||||
Note due November 20, 2013 | 55,710 | 44,962 | — | 10,748 | |||||||||||||
December 14, 2012 Convertible Note | |||||||||||||||||
Note due April 18, 2013 | 189,210 | 189,210 | — | — | |||||||||||||
December 18, 2012 Convertible Note | |||||||||||||||||
Note due December 14, 2013 | 50,000 | — | — | 50,000 | |||||||||||||
January 5, 2013 Convertible Notes | 567,729 | 115,000 | — | 452,729 | |||||||||||||
February 27, 2013 Convertible Note | |||||||||||||||||
Note due February 27, 2014 | 58,500 | — | 22,808 | 35,692 | |||||||||||||
April 2, 2013 Convertible Notes | 80,967 | — | — | 80,967 | |||||||||||||
April 18, 2013 Convertible Note | |||||||||||||||||
Note due December 18, 2013 | 60,000 | — | 9,868 | 50,132 | |||||||||||||
May 5, 2013 Convertible Notes | 45,000 | — | — | 45,000 | |||||||||||||
May 14, 2013 Convertible Note | |||||||||||||||||
Note due May 14, 2014 | 126,000 | — | 78,016 | 47,984 | |||||||||||||
June 27, 2013 Convertible Note | |||||||||||||||||
Note due June 27, 2014 | 37,620 | — | 26,571 | 11,049 | |||||||||||||
June 19, 2013 Convertible Note | |||||||||||||||||
Note due June 19, 2014 | 115,000 | 83,000 | 28,325 | 3,675 | |||||||||||||
July 12, 2013 Convertible Note | |||||||||||||||||
Note due July 12, 2014 | 125,000 | 28,200 | 86,114 | 10,686 | |||||||||||||
Total | $ | 3,653,331 | $ | 965,859 | $ | 338,716 | $ | 2,348,756 | |||||||||
Summary of debt instrument transactions | ' | ||||||||||||||||
Face Value | Principal Repayment/ | Unamortized | Balance at | ||||||||||||||
Settlement | Note | December 31, | |||||||||||||||
Discount | 2012 | ||||||||||||||||
February 2011 Secured Convertible Notes | |||||||||||||||||
Senior Secured Notes, due February 24, 2014 | $ | 1,184,694 | $ | 203,836 | $ | 153,358 | $ | 827,500 | |||||||||
April 2011 Secured Convertible Notes | |||||||||||||||||
Senior Secured Notes, due April 4, 2014 | 215,000 | — | 43,140 | 171,860 | |||||||||||||
June 2011 Secured Convertible Note | |||||||||||||||||
Senior Secured Notes, due June 6, 2014 | 30,000 | — | 3,953 | 26,047 | |||||||||||||
August 8, 2012 Convertible Note | |||||||||||||||||
Note due August 8, 2013 | 111,430 | — | 67,163 | 44,267 | |||||||||||||
August 12, 2012 Convertible Note | |||||||||||||||||
Note became due November 12, 2012 | 27,500 | — | — | 27,500 | |||||||||||||
August 20, 2012 Convertible Note | |||||||||||||||||
Note due August 20, 2013 | 20,000 | — | 12,712 | 7,288 | |||||||||||||
September 18, 2012 Convertible Note | |||||||||||||||||
Note due October 1, 2013 | 82,500 | — | 59,741 | 22,759 | |||||||||||||
October 2012 Convertible Note | |||||||||||||||||
Note due October 15, 2013 | 340,000 | — | 268,275 | 71,725 | |||||||||||||
November 1, 2012 Convertible Note | |||||||||||||||||
Note due April 30, 2013 | 31,471 | — | 18,200 | 13,271 | |||||||||||||
November 20, 2012 Convertible Note | |||||||||||||||||
Note due November 20, 2013 | 55,710 | — | 49,605 | 6,105 | |||||||||||||
December 14, 2012 Convertible Note | |||||||||||||||||
Note due April 18, 2013 | 189,210 | — | 81,302 | 107,908 | |||||||||||||
December 18, 2012 Convertible Note | |||||||||||||||||
Note due December 14, 2013 | 50,000 | — | — | 50,000 | |||||||||||||
Total | $ | 2,337,515 | $ | 203,836 | $ | 757,449 | $ | 1,376,230 |
CAPITAL_STOCK_Tables
CAPITAL STOCK (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Brokers and Dealers [Abstract] | ' | ||||||||||||||
Companybs stock options | ' | ||||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||||
Options | Exercise Price | Remaining Life | |||||||||||||
Balance, December 31, 2011 | 6,278,000 | $ | 0.18 | 6.85 | |||||||||||
Issued | 500,000 | 0.17 | 9.35 | ||||||||||||
Cancelled/Forfeited | (250,000 | ) | 0.35 | — | |||||||||||
Balance, December 31, 2012 | 6,528,000 | 0.18 | 6.05 | ||||||||||||
Issued | — | — | — | ||||||||||||
Cancelled/Forfeited | — | — | — | ||||||||||||
Balance, September 30, 2013 | 6,528,000 | $ | 0.18 | 5.3 | |||||||||||
Companybs unvested options | ' | ||||||||||||||
Number of | Weighted Average | ||||||||||||||
Shares | Grant-Date | ||||||||||||||
Fair Value | |||||||||||||||
Unvested, December 31, 2012 | 379,575 | $ 0.18 | |||||||||||||
Granted | - | - | |||||||||||||
Vested | -247,630 | 0.18 | |||||||||||||
Cancelled/Forfeited | - | - | |||||||||||||
Unvested, September 30, 2013 | 131,945 | $ 0.17 | |||||||||||||
Companybs share purchase warrants | ' | ||||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||||
Warrants | Exercise Price | Remaining Life | |||||||||||||
Balance, December 31, 2011 | 12,106,355 | $ | 0.56 | 2.81 | |||||||||||
Issued | 5,516,668 | 0.26 | 3.32 | ||||||||||||
Exercised, cancelled or expired | (714,400 | ) | 2.33 | — | |||||||||||
Balance, December 31, 2012 | 16,908,623 | $ | 0.39 | 2.19 | |||||||||||
Issued | 9,637,376 | 0.05 | 2.52 | ||||||||||||
Exercised | (3,000,000 | ) | 0.25 | — | |||||||||||
Extinguished or expired | (3,696,071 | ) | 0.39 | — | |||||||||||
Balance, September 30, 2013 | 19,849,928 | $ | 0.24 | 3.35 |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION AND NON-CASH INVESTING AND FINANCING ACTIVITIES (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Notes to Financial Statements | ' | ||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ||||||||||
Nine Months Ended | |||||||||||
30-Sep-13 | |||||||||||
Shares/warrants | Amount | ||||||||||
$ | |||||||||||
Shares issued pursuant to consulting arrangements | 350,000 | 38,935 | |||||||||
Shares issued pursuant to debt settlement | 18,464,921 | 400,472 | |||||||||
Shares issued pursuant to a settlement agreement | 8,000,000 | 110,100 | |||||||||
Shares issued pursuant to notes conversion | 30,471,339 | 699,427 | |||||||||
Nine Months Ended | |||||||||||
30-Sep-12 | |||||||||||
Shares/warrants | Amount | ||||||||||
$ | |||||||||||
Shares issued pursuant to debt settlement agreements | 2,126,447 | $ | 326,937 | ||||||||
Common shares issued pursuant to consulting service arrangements | 14,535,179 | $ | 1,998,000 | ||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ||||||||||
Period Ended June 30, | |||||||||||
2013 | 2012 | ||||||||||
Interest paid in cash | $ | — | $ | — | |||||||
Income taxes paid | $ | — | $ | — |
ACCOUNTS_PAYABLE_AND_ACCRUED_L1
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilitie | ' | ||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
$ | $ | ||||||||
Trade accounts payable | 983,303 | 1,663,315 | |||||||
Accrued liabilities | 136,395 | 242,245 | |||||||
Employee payroll | 127,083 | 61,458 | |||||||
Accrued interest | 210,517 | 74,698 | |||||||
1,457,298 | 2,041,716 |
RESEARCH_AGREEMENTS_Details_Na
RESEARCH AGREEMENTS (Details Narrative) (USD $) | 3 Months Ended | |
Dec. 01, 2011 | Sep. 30, 2013 | |
Research and Development [Abstract] | ' | ' |
Annual license payments | $75,000 | ' |
Accrued interest | ' | $492,365 |
CONVERTIBLE_NOTES_PAYABLE_Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Aug. 12, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Aug. 20, 2012 | Jun. 30, 2011 | Apr. 30, 2011 | Feb. 28, 2011 | Aug. 30, 2013 | Jul. 12, 2013 | Jun. 27, 2013 | 14-May-13 | 5-May-13 | Apr. 18, 2013 | Apr. 02, 2013 | Feb. 27, 2013 | Jan. 05, 2013 | Dec. 18, 2012 | Dec. 14, 2012 | Nov. 20, 2012 | Nov. 01, 2012 | Oct. 15, 2012 | Oct. 09, 2012 | Aug. 18, 2012 | Aug. 08, 2012 | Jun. 06, 2011 | Apr. 04, 2011 | Feb. 24, 2011 | |
Payables and Accruals [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,184,694 |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 |
Paid a findersb fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,500 |
Deferred financing costs | ' | 4,662 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | 25,084 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issued warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,369,388 |
Exercisable into common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 |
Common stock sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 |
Fair value of the warrants | ' | ' | ' | ' | ' | ' | ' | 483,355 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities and the debt | ' | ' | ' | ' | ' | ' | ' | 701,339 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | 203,836 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | ' | 16,419 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | 99,682 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,000 | ' |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' |
Company paid a findersb fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,550 | ' |
deferred financing cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 756 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,084 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issued warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 430,000 | ' |
Deferred financing cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' |
Common stock sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' |
Fair value of the warrants | ' | ' | ' | ' | ' | ' | 130,720 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities and the debt | ' | ' | ' | ' | ' | ' | 84,280 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | ' | ' | ' | ' | ' | 25,658 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' | ' |
Issued warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' |
Exercisable into common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' | ' |
Common stock sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' |
Fair value of the warrants | ' | ' | ' | ' | ' | 8,280 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities and the debt | ' | ' | ' | ' | ' | 21,720 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | 2,067 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,430 | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92,000 | ' | ' | ' |
Paid a findersb fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 | ' | ' | ' |
Original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,025 | ' | ' | ' | ' | ' | 11,430 | ' | ' | ' |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.09 | ' | ' | ' |
Lowest traded price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '70% | ' | ' | ' |
One-time interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5% | ' | ' | ' |
One-time interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investor converted the principal amount | ' | 111,430 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finderbs fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 | ' | ' | ' |
Fair value of the conversion option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 155,700 | ' | ' | ' |
Accounting loss on debt financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,700 | ' | ' | ' |
Accretion of the debt discount | ' | 67,163 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | 27,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issue discount | 2,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock conversion rate | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
issue shares | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares value | 6,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | '10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the conversion option | 31,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounting loss on debt financing | 6,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock conversion rate | ' | ' | ' | ' | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lowest traded price | ' | ' | ' | ' | '70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | '8% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the conversion option | ' | ' | ' | ' | 36,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounting loss on debt financing | ' | ' | ' | ' | 16,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | 12,712 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accruing interest rate | ' | ' | ' | ' | ' | ' | ' | ' | '8% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,500 | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,000 | ' | ' | ' | ' |
Finderbs fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' | ' |
Original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500 | ' | ' | ' | ' |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.09 | ' | ' | ' | ' |
Lowest traded price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '70% | ' | ' | ' | ' |
Principal amount and accrued interest | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance remaining | ' | ' | ' | ' | ' | ' | ' | ' | 23,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the conversion option | ' | 76,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounting loss on debt financing | ' | 1,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | 20,060 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 340,000 | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 310,000 | ' | ' | ' | ' | ' | ' |
payment of legal fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' |
Original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ' |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8% | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | 25,084 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issued warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' |
Converted warrants | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares | ' | 1,898,588 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the conversion option | ' | ' | ' | 248,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liability and the equity | ' | ' | ' | 62,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | ' | ' | 254,301 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Converted accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' |
Converted shares | ' | 5,368,956 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on settlement of debt | ' | 135,527 | 66,801 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Converted a promissory note | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes totaling | ' | ' | 105,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal and interest | ' | ' | 73,737 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | 1,262,727 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,471 | ' | ' | ' | ' | ' | ' | ' |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.09 | ' | ' | ' | ' | ' | ' | ' |
lowest bid price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '65% | ' | ' | ' | ' | ' | ' | ' |
Fair value of the conversion option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,300 | ' | ' | ' | ' | ' | ' | ' |
Derivative liability and the debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,171 | ' | ' | ' | ' | ' | ' | ' |
Common shares | ' | 512,822 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discoun | ' | 7,921 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,710 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Finder's fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Finderbs fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 559 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,084 | ' | ' | ' | ' | ' | ' | ' | ' |
Converted the principal amount | ' | 44,962 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | 39,513 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 220,255 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 252,280 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of legal fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Paid principal and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,032 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,078,477 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on settlement of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,491 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 189,210 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the conversion option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining balance | ' | 189,210 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9%, | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 567,729 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finders' fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issued discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | 1,644 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | 25,084 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | 32,692 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,967 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,620 |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of transaction costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | 22,932 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115,000 |
Common stock conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 126,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,096 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,084 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | 47,984 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 |
Finders' fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 |
Original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,620 |
Deferred financing costs | ' | 2,244 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | 25,084 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related parties assigned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115,000 |
Converted the principal amount | ' | 83,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | 10,818,783 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | 8,778 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issued warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,166,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finders' fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | 25,084 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount and accrued interest | ' | 28,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the debt discount | ' | $26,929 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LOANS_PAYABLE_Details_Narrativ
LOANS PAYABLE (Details Narrative) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Payables and Accruals [Abstract] | ' | ' |
Loan advances amount | $10,000 | ' |
Loan advances amount | ' | 10,000 |
Accruing interest | $10 | ' |
PROMISSORY_NOTES_Details_Narra
PROMISSORY NOTES (Details Narrative) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Notes to Financial Statements | ' | ' | ' |
Issued amount | ' | ' | $100,000 |
Legal services in the amount | ' | 100,000 | ' |
Issued shares | ' | 500,000 | ' |
Issued additional promissory notes | ' | 67,942 | ' |
Issued additional promissory notes | ' | 38,000 | ' |
Converted accounts payble | $210,000 | ' | ' |
Accruing interest | '9% | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Related Party Transactions [Abstract] | ' | ' |
Incurred management fees | $288,000 | ' |
Incurred management fees | ' | 173,500 |
Paid in research and development services | 99,000 | ' |
Paid in research and development services | ' | 67,500 |
Stock based compensation | 40,238 | ' |
Stock based compensation | ' | 31,333 |
Debt due to related parties | 83,000 | ' |
Debt due to related parties | ' | 50,000 |
Promissory notes | ' | 38,000 |
Payable into convertible notes | 567,729 | ' |
Amounts owing | 381,846 | ' |
Amounts owing | ' | $293,805 |
SUBSEQUENT_EVENTS_Details_Narr
SUBSEQUENT EVENTS (Details Narrative) (USD $) | Nov. 30, 2013 |
Subsequent Events [Abstract] | ' |
Aggregate principal amount | $143,000 |
Cash proceeds | 130,000 |
Original issue discount | '10%. |
Aggregate principal amount | 56,667 |
Accounts payable | 51,000 |
Convertible note holders | $6,360 |
Shares | 1,200,000 |
Conversion price | $0.01 |