Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Trading Symbol | 'qwikf |
Entity Registrant Name | 'QWICK MEDIA INC. |
Entity Central Index Key | '0001128790 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 71,128,456 |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Well Known Seasoned Issuer | 'No |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current | ' | ' |
Cash | $241,327 | $143,280 |
Receivables | 182,262 | 152,922 |
Inventory | 230,593 | 344,208 |
Prepaid expenses | 2,161 | 889 |
Total Current Assets | 656,343 | 641,299 |
Property and Equipment | 37,077 | 80,338 |
Total Assets | 693,420 | 721,637 |
Current | ' | ' |
Accounts payable and accrued liabilities | 124,805 | 174,393 |
Due to related parties | 4,529,913 | 2,073,960 |
Accrued dividends payable | 430,035 | 227,241 |
Total Liabilities | 5,084,753 | 2,475,594 |
Redeemable Preferred Stock | 2,027,945 | 2,027,945 |
STOCKHOLDERS' DEFICIENCY | ' | ' |
Common Stock Authorized: 400,000,000 common shares, $0.001 par value; 100,000,000 preferred shares, $0.001 par value, and series as determined by directors. Issued: 71,128,456 common shares at December 31, 2013 and 2012 | 71,128 | 71,128 |
Additional Paid-in Capital | 4,835,551 | 4,826,099 |
Deficit Accumulated During The Development Stage | -11,325,957 | -8,679,129 |
Total Stockholders' Deficiency | -6,419,278 | -3,781,902 |
Total Liabilities and Stockholders' Deficiency | $693,420 | $721,637 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Par Value Per Share | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Par Value Per Share | $0.00 | $0.00 |
Common Stock, Shares, Issued | 71,128,456 | 71,128,456 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | 159 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Revenue | $110,553 | $146,619 | $84,145 | $350,186 |
Expenses | ' | ' | ' | ' |
Advertising and promotion | 13,402 | 89,126 | 149,372 | 258,328 |
Amortization | 43,620 | 42,918 | 26,284 | 113,118 |
Consulting fees | 32,075 | 94,880 | 277,825 | 490,437 |
Filing fees | 12,839 | 11,730 | 13,997 | 55,584 |
Foreign exchange | 84,791 | -17,380 | 8,252 | 399,422 |
Interest and bank charges | 208,076 | 210,352 | 56,147 | 688,619 |
Inventory costs | 254,342 | 25,062 | 0 | 279,404 |
Management fees | 241,701 | 256,962 | 242,326 | 1,028,782 |
Mineral property exploration expenditures | 0 | 0 | 0 | 8,500 |
Mineral property option payments | 0 | 0 | 0 | 3,428 |
Office and administrative | 271,134 | 403,223 | 527,438 | 1,242,786 |
Oil and gas property exploration expenditures | 0 | 0 | 0 | 202,686 |
Professional fees | 192,171 | 159,262 | 98,617 | 896,622 |
Rent | 221,568 | 203,931 | 178,706 | 643,092 |
Salaries, wages and benefits | 1,091,594 | 1,675,220 | 1,135,857 | 4,348,505 |
Software development costs | 0 | 0 | 442,579 | 638,660 |
Travel | 90,068 | 124,285 | 102,744 | 378,170 |
Total Expenses | 2,757,381 | 3,279,571 | 3,260,144 | 11,676,143 |
Net Loss For The Period | ($2,646,828) | ($3,132,952) | ($3,175,999) | ($11,325,957) |
Basic And Diluted Loss Per Common Share | ($0.04) | ($0.04) | ($0.05) | ' |
Weighted Average Number Of Common Shares Outstanding | 71,128,000 | 71,128,000 | 61,940,000 | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | 159 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Cash Flows (Used In) Provided By: Operating Activities | ' | ' | ' | ' |
Net loss for the period | ($2,646,828) | ($3,132,952) | ($3,175,999) | ($11,325,957) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' | ' |
Amortization | 43,620 | 42,918 | 26,284 | 113,118 |
Foreign exchange on debt settlement | 0 | 0 | 0 | 226,512 |
Stock-based compensation | 9,452 | 81,178 | 195,399 | 286,029 |
Changes in operating assets and liabilities: | ' | ' | ' | ' |
Receivables | -29,699 | -49,680 | -330,875 | -460,034 |
Prepaid expenses | -1,271 | 48,621 | -49,510 | -2,161 |
Inventory | 113,615 | -47,826 | -179,294 | -230,593 |
Due to related parties | 2,455,953 | 2,243,364 | 109,309 | 5,540,844 |
Accrued dividends payable | 202,794 | 203,350 | 23,891 | 430,035 |
Accounts payable and accrued liabilities | -49,589 | 62,562 | 74,252 | 447,423 |
Net cash provided by (used in) operating activities | 98,047 | -548,465 | -3,306,543 | -4,974,784 |
Investing Activities | ' | ' | ' | ' |
Subsidiary cash upon acquisition | 0 | 0 | 0 | 15,465 |
Purchase of property and equipment | 0 | -36,830 | -59,732 | -138,434 |
Net cash (used in) investing activities | 0 | -36,830 | -59,732 | -122,969 |
Financing Activities | ' | ' | ' | ' |
Proceeds from share issuances | 0 | 0 | 1,217,002 | 2,678,002 |
Proceeds from notes payable | 0 | 0 | 1,000,000 | 1,661,078 |
Proceeds from preferred shares | 0 | 0 | 1,000,000 | 1,000,000 |
Net cash provided by financing activities | 0 | 0 | 3,217,002 | 5,339,080 |
Net Increase (Decrease) In Cash | 98,047 | -585,295 | -149,273 | 241,327 |
Cash, Beginning Of Period | 143,280 | 728,575 | 877,848 | 0 |
Cash, End Of Period | 241,327 | 143,280 | 728,575 | 241,327 |
Non-cash Financing Activities | ' | ' | ' | ' |
Common stock issued to settle debt | 0 | 0 | 403,211 | 984,841 |
Supplemental Disclosure of Cash Flow Information | ' | ' | ' | ' |
Interest paid | 0 | 0 | 0 | 0 |
Income taxes paid | $0 | $0 | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIENCY) EQUITY (USD $) | COMMON STOCK [Member] | ADDITIONAL PAID-IN CAPITAL [Member] | SHARE SUBSCRIPTION RECEIVED [Member] | DEFICIT ACCUMULATED DURING THE DEVELOPMENT STAGE [Member] | CUMULATIVE TRANSLATION ADJUSTMENT [Member] | Total |
Beginning Balance at Oct. 05, 2000 | ' | ' | ' | ' | ' | ' |
November 2000 - Shares issued for cash at $0.001 | $6,500 | ' | ' | ' | ' | $6,500 |
November 2000 - Shares issued for cash at $0.001 (Shares) | 6,500,000 | ' | ' | ' | ' | ' |
November 2000 - Shares issued for cash at $0.01 | 6,000 | 54,000 | ' | ' | ' | 60,000 |
November 2000 - Shares issued for cash at $0.01 (Shares) | 6,000,000 | ' | ' | ' | ' | ' |
December 2000 - Shares issued for cash at $0.25 | 38 | 9,462 | ' | ' | ' | 9,500 |
December 2000 - Shares issued for cash at $0.25 (Shares) | 38,000 | ' | ' | ' | ' | ' |
Translation adjustment | ' | ' | ' | ' | 660 | 660 |
Net loss for the year | ' | ' | ' | -7,310 | ' | -7,310 |
Ending Balance at Dec. 31, 2000 | 12,538 | 63,462 | ' | -7,310 | 660 | 69,350 |
Ending Balance (Shares) at Dec. 31, 2000 | 12,538,000 | ' | ' | ' | ' | ' |
Translation adjustment | ' | ' | ' | ' | -752 | -752 |
Net loss for the year | ' | ' | ' | -54,811 | ' | -54,811 |
Ending Balance at Dec. 31, 2001 | 12,538 | 63,462 | ' | -62,121 | -92 | 13,787 |
Ending Balance (Shares) at Dec. 31, 2001 | 12,538,000 | ' | ' | ' | ' | ' |
Translation adjustment | ' | ' | ' | ' | 16 | 16 |
Net loss for the year | ' | ' | ' | -24,972 | ' | -24,972 |
Ending Balance at Dec. 31, 2002 | 12,538 | 63,462 | ' | -87,093 | -76 | -11,169 |
Ending Balance (Shares) at Dec. 31, 2002 | 12,538,000 | ' | ' | ' | ' | ' |
Translation adjustment | ' | ' | ' | ' | -205 | -205 |
Net loss for the year | ' | ' | ' | -271,508 | ' | -271,508 |
Ending Balance at Dec. 31, 2003 | 12,538 | 63,462 | ' | -358,601 | -281 | -282,882 |
Ending Balance (Shares) at Dec. 31, 2003 | 12,538,000 | ' | ' | ' | ' | ' |
Translation adjustment | ' | ' | ' | ' | 281 | 281 |
Net loss for the year | ' | ' | ' | -72,049 | ' | -72,049 |
Ending Balance at Dec. 31, 2004 | 12,538 | 63,462 | ' | -430,650 | ' | -354,650 |
Ending Balance (Shares) at Dec. 31, 2004 | 12,538,000 | ' | ' | ' | ' | ' |
Net loss for the year | ' | ' | ' | -49,562 | ' | -49,562 |
Ending Balance at Dec. 31, 2005 | 12,538 | 63,462 | ' | -480,212 | ' | -404,212 |
Ending Balance (Shares) at Dec. 31, 2005 | 12,538,000 | ' | ' | ' | ' | ' |
Net loss for the year | ' | ' | ' | -67,488 | ' | -67,488 |
Ending Balance at Dec. 31, 2006 | 12,538 | 63,462 | ' | -547,700 | ' | -471,700 |
Ending Balance (Shares) at Dec. 31, 2006 | 12,538,000 | ' | ' | ' | ' | ' |
Net loss for the year | ' | ' | ' | -74,191 | ' | -74,191 |
Ending Balance at Dec. 31, 2007 | 12,538 | 63,462 | ' | -621,891 | ' | -545,891 |
Ending Balance (Shares) at Dec. 31, 2007 | 12,538,000 | ' | ' | ' | ' | ' |
Net loss for the year | ' | ' | ' | -104,412 | ' | -104,412 |
Ending Balance at Dec. 31, 2008 | 12,538 | 63,462 | ' | -726,303 | ' | -650,303 |
Beginning Balance (Shares) at Dec. 31, 2008 | 12,538,000 | ' | ' | ' | ' | ' |
September 2009 - Shares issued for settling debt at $0.015 | 38,775 | 542,855 | ' | ' | ' | 581,630 |
September 2009 - Shares issued for settling debt at $0.015 (Shares) | 38,775,366 | ' | ' | ' | ' | ' |
Shares issued pursuant to share exchange agreement | 4,789 | 953,018 | ' | -190,387 | ' | 767,420 |
Shares issued pursuant to share exchange agreement (Shares) | 4,789,035 | ' | ' | ' | ' | ' |
Net loss for the year | ' | ' | ' | -351,291 | ' | -351,291 |
Ending Balance at Dec. 31, 2009 | 56,102 | 1,559,335 | ' | -1,267,981 | ' | 347,456 |
Ending Balance (Shares) at Dec. 31, 2009 | 56,102,401 | ' | ' | ' | ' | ' |
Share subscriptions received | ' | ' | 1,385,000 | ' | ' | 1,385,000 |
Net loss for the year | ' | ' | ' | -1,102,197 | ' | -1,102,197 |
Ending Balance at Dec. 31, 2010 | 56,102 | 1,559,335 | 1,385,000 | -2,370,178 | ' | 630,259 |
Beginning Balance (Shares) at Dec. 31, 2010 | 56,102,401 | ' | ' | ' | ' | ' |
Shares issued for cash at $0.20 per share | 13,010 | 2,588,992 | -1,385,000 | ' | ' | 1,217,002 |
Shares issued for cash at $0.20 per share (Shares) | 13,010,000 | ' | ' | ' | ' | ' |
Shares issued to settle debt at $0.20 | 2,016 | 401,195 | ' | ' | ' | 403,211 |
Shares issued to settle debt at $0.20 (Shares) | 2,016,055 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | 195,399 | ' | ' | ' | 195,399 |
Net loss for the year | ' | ' | ' | -3,175,999 | ' | -3,175,999 |
Ending Balance at Dec. 31, 2011 | 71,128 | 4,744,921 | ' | -5,546,177 | ' | -730,128 |
Ending Balance (Shares) at Dec. 31, 2011 | 71,128,456 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | 81,178 | ' | ' | ' | 81,178 |
Net loss for the year | ' | ' | ' | -3,132,952 | ' | -3,132,952 |
Ending Balance at Dec. 31, 2012 | 71,128 | 4,826,099 | ' | -8,679,129 | ' | -3,781,902 |
Ending Balance (Shares) at Dec. 31, 2012 | 71,128,456 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | 9,452 | ' | ' | ' | 9,452 |
Net loss for the year | ' | ' | ' | -2,646,828 | ' | -2,646,828 |
Ending Balance at Dec. 31, 2013 | $71,128 | $4,835,551 | ' | ($11,325,957) | ' | ($6,419,278) |
Ending Balance (Shares) at Dec. 31, 2013 | 71,128,456 | ' | ' | ' | ' | ' |
NATURE_OF_OPERATIONS_AND_GOING
NATURE OF OPERATIONS AND GOING CONCERN | 12 Months Ended | ||
Dec. 31, 2013 | |||
NATURE OF OPERATIONS AND GOING CONCERN [Text Block] | ' | ||
1 | NATURE OF OPERATIONS AND GOING CONCERN | ||
a) | Organization | ||
Qwick Media Inc. (“the Company”) is governed by the corporate laws of the Cayman Islands. It is currently a reporting issuer in the Province of British Columbia, Canada. Principal executive offices are located in Vancouver, British Columbia, Canada. The registered office is in the Cayman Islands. | |||
The Company was incorporated on October 5, 2000 under the laws of the State of Nevada. Effective June 26, 2006, it re-domiciled from the State of Nevada to the State of Washington. Effective July 7, 2009, it re-domiciled from the State of Washington to the State of Wyoming for the sole purpose of effecting a continuance to the Cayman Islands. Effective July 28, 2009, the Company re-domiciled to the Cayman Islands and became a foreign private issuer with the US Securities and Exchange Commission (“SEC”). | |||
On October 6, 2009, the Company changed its name from “Tuscany Mineral, Ltd.” to “Tuscany Minerals Ltd.”. On June 22, 2010, the Company changed its name to “Qwick Media Inc.” | |||
On January 28, 2011, the Company completed the acquisition of Qeyos Ad Systems Inc. (“Qeyos”), pursuant to which it acquired all of the issued and outstanding common shares of Qeyos from its shareholders in exchange for the issuance of a total of 4,789,035 shares of the Company’s common stock on the basis of one share of common stock for each common share of Qeyos. As a result of the acquisition of the Qeyos shares, the Company ceased to be a shell company and is now in the business of developing interactive proprietary software, intellectual property and hardware. | |||
For accounting purposes, the acquisition was accounted for at historical carrying values in a manner similar to the pooling of interests method since the chief executive officer and controlling shareholder of the Company was also the chief executive officer and controlling shareholder of Qeyos. Transfers or exchanges of equity instruments between entities under common control are recorded at the carrying amount of the transferring entity at the date of transfer and fair value, goodwill or other intangible asset adjustments are not recorded. Our consolidated financial statements and reported results of operations reflect these carryover values, and our reported results of operations and stockholders’ equity have been retroactively restated for all periods presented to reflect the results of operations of Qeyos and the Company as if the acquisition had occurred on September 30, 2009, the date the Company and Qeyos commenced common control. | |||
On April 19, 2011, the Company incorporated Wuxi Xun Fu Information Technology Co., Ltd. in China, a wholly-owned subsidiary of the Company. | |||
For all periods presented, all significant inter-company accounts and transactions have been eliminated in the consolidated financial statements. | |||
b) | Development Stage Activities | ||
The Company had been in the exploration stage since its formation and had not realized any revenues during the exploration stage. The Company had previous exploration activities in the natural gas and oil business in 2003 and in the acquisition and exploration of mining properties prior to 2003. As at December 31, 2010, the Company was an inactive shell company. | |||
On January 28, 2011, the Company acquired Qeyos Ad Systems Inc., which is in the business of developing and customizing software and hardware for use in digital media kiosks. Accordingly, the Company ceased to be an inactive shell company and became a development stage company. | |||
c) | Going Concern | ||
The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. | |||
As shown in the accompanying consolidated financial statements, the Company has incurred accumulated losses of $11,325,957 for the period from October 5, 2000 (date of inception) to December 31, 2013. The future of the Company is dependent upon its ability to obtain adequate financing and upon future profitable operations. Management has plans to seek additional capital financing through private placement and a public offering of the Company’s common stock and from the issuance of promissory notes. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2013 | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | ' | ||
2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), and are expressed in US dollars. These consolidated financial statements include the accounts of the Company and the accounts of the Company’s wholly owned subsidiaries, Qeyos Ad Systems Inc., incorporated in Canada, and Wuxi Xun Fu Information Technology Co., Ltd., incorporated in China. The Company’s fiscal year-end is December 31. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgement. | |||
The consolidated financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below: | |||
a) | Cash and Cash Equivalents | ||
Cash consists of cash on deposit with high quality major financial institutions. The carrying amounts approximated fair market value due to the liquidity of these deposits. For purposes of the balance sheets and statements of cash flows, the Company considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents. The Company had no cash equivalents at December 31, 2013 and 2012. | |||
b) | Use of Estimates and Assumptions | ||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses for the reporting period. Management evaluates estimates and judgments on an ongoing basis. Actual results could differ from these estimates. The significant areas requiring management’s estimates and assumptions include the fair value of shares issued to settle debt, stock based compensation, valuation of receivables and inventory, estimated life, amortization rates and impairment of long-lived assets, valuation allowance for income tax purposes, and fair value measurement of financial instruments. | |||
c) | Revenue Recognition | ||
The Company recognizes revenue when all of the following criteria are met: (1) the Company has evidence of an arrangement with a customer; (2) the Company delivers the specified products; (3) license agreement terms are fixed or determinable and free of contingencies or uncertainties that may alter the agreement such that it may not be complete and final; and (4) collection is probable. | |||
d) | Software Development Costs | ||
The Company accounts for software development costs in accordance with ASC 985-20, Software - Cost of Software to Be Sold, Leased, whereby costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established and all research and development activities for the other components of the product or processes have been completed, at which time any additional costs are capitalized. | |||
To December 31, 2013, software development costs, comprised of salaries, wages and benefits, have been charged to operations as the research and development activities for other components of the product and processes have not been completed. | |||
In accordance with ASC 985-705, software modification costs, comprised of salaries, wages and benefits, to satisfy hardware upgrades and changes in system configurations, are expensed as incurred. | |||
e) | Inventory | ||
Inventory is recorded at the lower of cost or market with cost being determined on the weighted average method. When required, a provision is made to reduce excess and obsolete inventory to estimated net realizable value. The net realizable value of inventory is generally considered to be the selling price in the ordinary course of business less the estimated costs of completion and estimated costs to make the sale. Inventory consists of computers, general, monitors, printers, modems, and parts and enclosures. | |||
f) | Equipment and Amortization | ||
Equipment is recorded at cost and amortized using the declining-balance and straight-line method at rates determined to estimate the useful lives of the assets. The annual rates used in calculating amortization are as follows: | |||
Computer hardware | 30% straight-line | ||
Computer software | 50% declining-balance | ||
Office furniture | 20% declining-balance | ||
Equipment | 30% declining-balance | ||
Leasehold improvements | straight-line over the term of the lease | ||
g) | Foreign Currency Translation | ||
The Company’s functional currency is the U.S. dollar. Transactions in foreign currency are translated in accordance with ASC Topic 830, Foreign Currency Matters, into U.S. dollars and reporting as follows: | |||
i) | monetary items at the exchange rate prevailing at the balance sheet date; | ||
ii) | non-monetary items at the historical exchange rate; | ||
iii) | revenue and expense at the average exchange rate in effect during the applicable accounting period. | ||
Gains and losses on foreign currency transactions are reported in the statements of operations. | |||
h) | Basic and Diluted Loss Per Share | ||
The Company computes loss per share in accordance with ASC 260, Earnings Per Share. Under these provisions, basic loss per share is computed using the weighted average number of common stock outstanding during the periods. Diluted loss per share is computed using the weighted average number of common and potentially dilutive common stock outstanding during the period. As the Company generated net losses in the periods presented, the basic and diluted loss per share is the same as the exercise of options or warrants would be anti-dilutive. | |||
i) | Fair Value of Financial Instruments | ||
ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. | |||
These tiers are: | |||
• | Level 1 – defined as observable inputs such as quoted prices in active markets; | ||
• | Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and | ||
• | Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||
Cash consists of cash on deposit with a high quality major financial institution. The carrying cost approximates fair value due to the liquidity of these deposits. The carrying amounts of other financial assets and liabilities comprising accounts payable and accrued liabilities, due to related parties, were a reasonable approximation of their fair value. | |||
j) | Income Taxes | ||
The Company has adopted ASC 740, Income Taxes. This standard requires the use of an asset and liability approach for financial accounting, and reporting on income taxes. Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. | |||
k) | Asset Impairment | ||
Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate the carrying amount may not be recoverable, pursuant to guidance established in ASC 360-50, Impairment or Disposal of Long-lived Assets. The Company determines impairment by comparing the undiscounted future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, assets are written down to fair value. | |||
l) | Comprehensive Loss | ||
ASC 220, Comprehensive Income establishes standards for the reporting and display of comprehensive items in the consolidated financial statements. As at December 31, 2013, 2012 and 2011, the Company had no items that represent a comprehensive income or loss and, therefore, has not included a statement of comprehensive loss in the consolidated financial statements. | |||
m) | Equity Instruments | ||
In situations where common shares are issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and services is based on the stock price as of the earliest of: | |||
i) | the date at which the counterparty’s performance is complete; | ||
ii) | the date at which a commitment for performance by the counterparty to earn the common shares is reached; or | ||
iii) | the date at which the common shares are issued if they are fully vested and non-forfeitable at that date. | ||
The Company has a stock-based compensation plan which is described more fully in Note 6. The Company measures the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognizes compensation expense over the requisite service period for awards expected to vest. Except for transactions with employees and directors, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received, or the fair value of the equity instruments issued, whichever is more reliably measurable. Additionally, the Company has determined that the dates used to value the transaction are either: | |||
i) | The date at which a commitment for performance by the counter party to earn the equity instruments is established; or | ||
ii) | The date at which the counter party’s performance is complete. | ||
n) | Recent Accounting Pronouncements | ||
In November 2011, ASC guidance was issued related to disclosures about offsetting assets and liabilities. The new standard requires disclosures to allow investors to better compare financial statements prepared under U.S GAAP with financial statements prepared under IFRS. The update is effected for the Company’s fiscal year beginning January 1, 2013, and interim periods within those annual periods. Retrospective application is required. In January 2013, ASC guidance was issued to clarify that the disclosure requirements are limited to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (i) offset in the financial statements or (ii) subject to an enforceable master netting arrangement or similar agreement. The Company’s January 1, 2013 adoption of the updated guidance had no impact on the Company’s consolidated financial position, results of operations or cash flows. | |||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRS. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on or after January 1, 2013. The Company’s January 1, 2013 adoption of the updated guidance had no impact on the Company’s consolidated financial position, results of operations or cash flows. | |||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The amendments in ASU 2013-04 provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this Update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this standard are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of the pronouncement to have a material effect on its consolidated financial statements. | |||
In April 2013, the FASB issued ASU No. 2013-07, Presentation of Financial Statements (Top 205): Liquidation Basis of Accounting. The objective of ASU No. 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The amendments in this standard is effective prospectively for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. The Company does not expect the adoption of the pronouncement to have a material effect on its consolidated financial statements. | |||
In March 2013, ASC guidance was issued related to Foreign Currency Matters to clarify the treatment of cumulative translation adjustments when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The updated guidance also resolves the diversity in practice for the treatment of business combinations achieved in stages in a foreign entity. The update is effective prospectively for the Company’s fiscal year beginning January 1, 2014. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows. | |||
In July 2013, ASC guidance was issued related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The updated guidance requires an entity to net its unrecognized tax benefits against the deferred tax assets for net operating loss carryforwards, similar tax losses, or tax credit carryforwards in the same jurisdiction. A gross presentation will be required only if such carryforwards are not available or would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax position. The update is effective prospectively for the Company’s fiscal year beginning January 1, 2014. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows. |
INVENTORY
INVENTORY | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
INVENTORY [Text Block] | ' | ||||||
3 | INVENTORY | ||||||
2013 | 2012 | ||||||
Computers | $ | 45,382 | $ | 2,765 | |||
Monitors | 114,126 | 31,146 | |||||
Printers | 15,880 | − | |||||
Parts and enclosures | 31,426 | 291,301 | |||||
General | 23,779 | 18,996 | |||||
$ | 230,593 | $ | 344,208 | ||||
During the year, the Company recorded inventory write-down in the amount of $217,719 (2012 - $Nil). |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
PROPERTY AND EQUIPMENT [Text Block] | ' | |||||||||
4 | PROPERTY AND EQUIPMENT | |||||||||
2013 | ||||||||||
Accumulated | Net Book | |||||||||
Cost | Amortization | Value | ||||||||
Computer hardware | $ | 38,713 | $ | 30,524 | $ | 8,189 | ||||
Computer software | 1,324 | 1,286 | 38 | |||||||
Office furniture | 21,012 | 12,875 | 8,137 | |||||||
Equipment | 41,882 | 24,610 | 17,272 | |||||||
Leasehold improvements | 47,628 | 44,187 | 3,441 | |||||||
$ | 150,559 | $ | 113,482 | $ | 37,077 | |||||
2012 | ||||||||||
Accumulated | Net Book | |||||||||
Cost | Amortization | Value | ||||||||
Computer hardware | $ | 38,713 | $ | 19,569 | $ | 19,144 | ||||
Computer software | 1,324 | 1,182 | 142 | |||||||
Office furniture | 21,012 | 6,926 | 14,086 | |||||||
Equipment | 41,882 | 13,257 | 28,625 | |||||||
Leasehold improvements | 47,628 | 29,287 | 18,341 | |||||||
$ | 150,559 | $ | 70,221 | $ | 80,338 |
RELATED_PARTY_TRANSACTIONS_AND
RELATED PARTY TRANSACTIONS AND AMOUNTS OWING | 12 Months Ended | ||
Dec. 31, 2013 | |||
RELATED PARTY TRANSACTIONS AND AMOUNTS OWING [Text Block] | ' | ||
5 | RELATED PARTY TRANSACTIONS AND AMOUNTS OWING | ||
For the year ended December 31, 2013, the Company carried out a number of transactions with related parties in the normal course of business. These transactions were recorded at their exchange amount, which is the amount of consideration established and agreed to by the related parties. | |||
The following are related party transactions and amounts owing at December 31, 2013 that are not otherwise disclosed elsewhere: | |||
a) | The Company paid management fees of $240,210 (2012 - $256,858 ; 2011 - $256,327) to companies controlled by officers for the year ended December 31, 2013. | ||
b) | The Company recorded stock-based compensation of $3,972 (2012 - $50,004 ; 2011 - $131,118) as consulting fees paid to directors and officers for the year ended December 31, 2013. | ||
c) | As of December 31, 2013, amounts owing to related parties consists of $4,534,392 (2012 - $2,073,965) owed to a director and companies controlled by a director, and $12,889 (2012 - $18,815) owed to a company controlled by an officer. The amounts owed are unsecured, non-interest bearing and due on demand. | ||
d) | Interest expensed by the Company relating to notes payable due to a company with a common director amounted to $Nil (2012 - $Nil ; 2011 - $27,945) for the year ended December 31, 2013. |
STOCK_OPTIONS
STOCK OPTIONS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
STOCK OPTIONS [Text Block] | ' | |||||||||||||
6 | STOCK OPTIONS | |||||||||||||
The Company adopted a Stock Option Plan under which the Company can grant up to 6,620,230 shares of its common stock to the officers, directors, employees and consultants. | ||||||||||||||
On January 28, 2011, the Company granted 2,400,000 stock options to directors, officers, and employees exercisable at $0.20 per share to December 29, 2015. The options vest 50% on the date of grant, 25% on the first anniversary and 25% on the second anniversary. During the year ended December 31, 2013, the Company recorded stock-based compensation of $3,972 (2012 - $40,146 ; 2011 - $185,113) as consulting expense related to these options. | ||||||||||||||
On May 1, 2011, the Company granted 300,000 stock options to a consultant exercisable at $0.20 per share to December 29, 2015. The options vest 50% on the date of grant, 25% on the first anniversary and 25% on the second anniversary. During the year ended December 31, 2013, the Company recorded stock-based compensation of $2,686 (2012 - $29,993 ; 2011 - $21,832) as consulting expense related to these options. | ||||||||||||||
On July 1, 2011, the Company granted 60,000 stock options to an employee exercisable at $0.60 per share. 50% of the options vest on the date of grant and expire on July 30, 2013. Another 25% vest on the first anniversary and expire on July 30, 2014. The last 25% vest on the second anniversary and expire on July 30, 2015. During the year ended December 31, 2013, the Company recorded stock-based compensation of $163 (2012 - $963 ; 2011 - $682) as consulting expense related to these options. | ||||||||||||||
On November 1, 2011, the Company granted 360,000 stock options to an employee exercisable at $0.60 per share. 50% of the options vest on the date of grant and expire on July 30, 2013. Another 25% vest on the first anniversary and expire on July 30, 2014. The last 25% vest on the second anniversary and expire on July 30, 2015. During the year ended December 31, 2013, the Company recorded stock-based compensation of $2,562 (2012 - $9,736 ; 2011 - $682) as consulting expense related to these options. | ||||||||||||||
On March 1, 2012, the Company granted 300,000 stock options to a consultant exercisable at $0.60 per share. 50% of the options vest on the date of grant and expire on February 28, 2013. Another 25% vest on the first anniversary and expire on February 28, 2014. The last 25% vest on the second anniversary and expire on February 28, 2015. During the year ended December 31, 2013, the Company recorded stock-based compensation of $69 (2012 - $340) as consulting expense related to these options. | ||||||||||||||
The fair values of stock options granted were estimated at the date of grant using the Black-Scholes option- pricing model and the weighted average grant date fair value of stock options granted during the year ended December 31, 2012 was $0.001 (2011 - $0.10). During the year ended December 31, 2013, the Company recorded stock-based compensation of $9,452 (2012 - $81,178 ; 2011 - $195,399) as consulting expense related to the vesting of stock options. | ||||||||||||||
The fair value assumptions used were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected dividend yield | − | 0% | 0% | |||||||||||
Risk-free interest rate | − | 0.43% | 1.92% | |||||||||||
Expected volatility | − | 54% | 66% | |||||||||||
Expected option life (in years) | − | 1 | 4.54 - 5.00 | |||||||||||
The following table summarizes the continuity of the Company’s stock options: | ||||||||||||||
Weighted- | ||||||||||||||
Weighted | Average | |||||||||||||
Average | Remaining | Aggregate | ||||||||||||
Number of | Exercise | Contractual | Intrinsic | |||||||||||
Options | Price | Term (years) | Value | |||||||||||
Outstanding, December 31, 2011 | 2,720,000 | $ | 0.26 | 4.98 | $ | − | ||||||||
Granted | 300,000 | $ | 0.6 | |||||||||||
Expired | (200,000 | ) | $ | 0.2 | ||||||||||
Outstanding, December 31, 2012 | 2,820,000 | $ | 0.3 | 2.56 | $ | − | ||||||||
Expired | (360,000 | ) | $ | 0.6 | ||||||||||
Outstanding, December 31, 2013 | 2,460,000 | $ | 0.26 | 1.86 | $ | − | ||||||||
Exercisable, December 31, 2013 | 2,385,000 | $ | 0.25 | 1.88 | $ | − | ||||||||
A summary of the status of the Company’s non-vested options and changes are presented below: | ||||||||||||||
Weighted | ||||||||||||||
Average | ||||||||||||||
Number of | Grant Date | |||||||||||||
Options | Fair Value | |||||||||||||
Non-vested at December 31, 2011 | 1,360,000 | $ | 0.1 | |||||||||||
Granted | 300,000 | $ | 0.001 | |||||||||||
Expired | (50,000 | ) | $ | 0.11 | ||||||||||
Vested | (830,000 | ) | $ | 0.08 | ||||||||||
Non-vested at December 31, 2012 | 780,000 | $ | 0.08 | |||||||||||
Vested | (705,000 | ) | $ | 0.09 | ||||||||||
Non-vested at December 31, 2013 | 75,000 | $ | 0.001 | |||||||||||
As at December 31, 2013, there was $8 (2012 - $9,460) in total unrecognized compensation cost related to non-vested stock options. | ||||||||||||||
As at December 31, 2013, the following stock options were outstanding: | ||||||||||||||
Number of Options | Exercise Price | Expiry Date | ||||||||||||
75,000 | $0.60 | February 28, 2014* | ||||||||||||
15,000 | $0.60 | 30-Jul-14 | ||||||||||||
90,000 | $0.60 | 30-Nov-14 | ||||||||||||
75,000 | $0.60 | 28-Feb-15 | ||||||||||||
15,000 | $0.60 | 30-Jul-15 | ||||||||||||
90,000 | $0.60 | 30-Nov-15 | ||||||||||||
2,100,000 | $0.20 | 29-Dec-15 | ||||||||||||
2,460,000 | * Subsequently expired |
REDEEMABLE_PREFERRED_STOCK
REDEEMABLE PREFERRED STOCK | 12 Months Ended | ||
Dec. 31, 2013 | |||
REDEEMABLE PREFERRED STOCK [Text Block] | ' | ||
7 | REDEEMABLE PREFERRED STOCK | ||
On November 15, 2011, the Company created one series of the 100,000,000 preferred shares it is authorized to issue, consisting of 25,000,000 shares, to be designated as Class A Preferred Shares. The principal terms of the Class A Preferred Shares are as follows: | |||
Voting rights – The Class A Preferred Shares have voting rights (one vote per share) equal to those of the Company’s common stock. | |||
Dividend rights – The Class A Preferred Shares carry a cumulative cash dividend of 10% per annum. The accrued dividends payable are classified as interest expense in the statements of operations. | |||
Conversion rights – The holders of the Class A Preferred Shares have the right to convert the Class A Preferred Shares, from time to time, at the option of the holder, into one common share until July 31, 2015 at the following conversion prices: | |||
i) | $0.60 per Common Share if converted at any time up to and including July 31, 2012; | ||
ii) | $1.00 per Common Share if converted at any time between August 1, 2012 and July 31, 2013; and | ||
iii) | $1.50 per Common Share if converted at any time between August 1, 2013 and July 31, 2015. | ||
Redemption rights – At any time, the holders of the Class A Preferred Shares may elect to have the Company redeem the Class A Preferred Shares for an amount equal to $1.00 per share. At any time, the Company may redeem the Class A Preferred Shares for an amount equal to $1.00 per share. | |||
The Company has classified the Class A Preferred Shares as liability because they are redeemable beyond the control of the issuer. | |||
During the year ended December 31, 2011, the Company completed a private placement with a company owned by the Company's President and Chief Executive Officer, consisting of the issuance of 1,000,000 Class A Preferred Shares at a price of $1.00 per Class A Share for gross proceeds of $1,000,000, and converted the principal amount of a debenture and accrued interest thereon to the related party, into an aggregate of 1,027,945 Class A Preferred Shares, at a conversion price of $1.00 per Class A Preferred Share. As at December 31, 2013, the holder of the Class A Preferred Shares had agreed to not exercise the retractable rights, to have the Company redeem the Class A Preferred Shares, for the next 2 years. |
COMMITMENTS_AND_CONTRACTUAL_OB
COMMITMENTS AND CONTRACTUAL OBLIGATIONS | 12 Months Ended | ||
Dec. 31, 2013 | |||
COMMITMENTS AND CONTRACTUAL OBLIGATIONS [Text Block] | ' | ||
8 | COMMITMENTS AND CONTRACTUAL OBLIGATIONS | ||
The Company had no significant commitments or contractual obligations with any parties respecting executive compensation, consulting arrangements, or other matters other than disclosed below. Management services provided are on a month-to-month basis. | |||
a) | On October 15, 2013, the Company entered into a consulting agreement with a director of the Company whereby the Company will pay $12,000 per month for consulting services provided for a term of six months. The fees will be payable as to a minimum of $6,000 in cash payment and up to $6,000 in equity or debt of the Company. | ||
b) | The Company has entered into leases for the provision of facility space until January 31, 2014, and continued on a month-to-month basis. The Company’s future minimum lease payments for the premise leases are as follows: | ||
Fiscal year ending December 31, 2014 | $ 10,835 (CDN$11,525) |
FINANCIAL_INSTRUMENTS_AND_RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT [Text Block] | ' | ||||
9 | FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | ||||
The following table presents information about the Company’s financial instruments that have been measured at fair value as of December 31, 2013, and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair values: | |||||
31-Dec-13 | FAIR | ||||
VALUE | TOTAL | ||||
INPUT | HELD-FOR- | CARRYING | FAIR | ||
LEVEL | TRADING | VALUE | VALUE | ||
Financial assets | |||||
Cash | 1 | $241,327 | $241,327 | $241,327 | |
31-Dec-12 | FAIR | ||||
VALUE | TOTAL | ||||
INPUT | HELD-FOR- | CARRYING | FAIR | ||
LEVEL | TRADING | VALUE | VALUE | ||
Financial assets | |||||
Cash | 1 | $143,280 | $143,280 | $143,280 | |
Due to the nature of cash, accounts payable and redeemable preferred stock, the fair value of these instruments approximated their carrying value. |
SEGMENTED_INFORMATION
SEGMENTED INFORMATION | 12 Months Ended | |
Dec. 31, 2013 | ||
SEGMENTED INFORMATION [Text Block] | ' | |
10 | SEGMENTED INFORMATION | |
The Company’s business is considered as operating in one segment being the development of software and hardware for use in digital media kiosks. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES [Text Block] | ' | ||||||||||
11 | INCOME TAXES | ||||||||||
The provision for income taxes differs from the result which would be obtained by applying the statutory income tax rate of 26% (2012 - 26%) to income before income taxes. The difference results from the following items: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Computed expected (benefit) income taxes | $ | (675,000 | ) | $ | (782,000 | ) | $ | (768,000 | ) | ||
Increase in valuation allowance | 675,000 | 782,000 | 768,000 | ||||||||
$ | - | $ | - | $ | - | ||||||
Significant components of the Company’s deferred income tax assets are as follows: | |||||||||||
2013 | 2012 | ||||||||||
Deferred income tax asset | $ | 2,791,000 | $ | 2,116,000 | |||||||
Valuation allowance | (2,791,000 | ) | (2,116,000 | ) | |||||||
$ | - | $ | - | ||||||||
The Company has net operating losses of approximately $10,734,000 (2012 - $8,140,000), which if unutilized, will expire through to 2033. Future tax benefits, which may arise as a result of these losses, have not been recognized in these consolidated financial statements and have been offset by a valuation allowance. | |||||||||||
The Company and its subsidiaries file income tax returns in Canada and China. These tax returns are subject to examination by local taxation authorities provided the tax years remain open to audit under the relevant statutes of limitations. |
Recovered_Sheet1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Cash and Cash Equivalents [Policy Text Block] | ' | ||
a) | Cash and Cash Equivalents | ||
Cash consists of cash on deposit with high quality major financial institutions. The carrying amounts approximated fair market value due to the liquidity of these deposits. For purposes of the balance sheets and statements of cash flows, the Company considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents. The Company had no cash equivalents at December 31, 2013 and 2012. | |||
Use of Estimates and Assumptions [Policy Text Block] | ' | ||
b) | Use of Estimates and Assumptions | ||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses for the reporting period. Management evaluates estimates and judgments on an ongoing basis. Actual results could differ from these estimates. The significant areas requiring management’s estimates and assumptions include the fair value of shares issued to settle debt, stock based compensation, valuation of receivables and inventory, estimated life, amortization rates and impairment of long-lived assets, valuation allowance for income tax purposes, and fair value measurement of financial instruments. | |||
Revenue Recognition [Policy Text Block] | ' | ||
c) | Revenue Recognition | ||
The Company recognizes revenue when all of the following criteria are met: (1) the Company has evidence of an arrangement with a customer; (2) the Company delivers the specified products; (3) license agreement terms are fixed or determinable and free of contingencies or uncertainties that may alter the agreement such that it may not be complete and final; and (4) collection is probable. | |||
Software Development Costs [Policy Text Block] | ' | ||
d) | Software Development Costs | ||
The Company accounts for software development costs in accordance with ASC 985-20, Software - Cost of Software to Be Sold, Leased, whereby costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established and all research and development activities for the other components of the product or processes have been completed, at which time any additional costs are capitalized. | |||
To December 31, 2013, software development costs, comprised of salaries, wages and benefits, have been charged to operations as the research and development activities for other components of the product and processes have not been completed. | |||
In accordance with ASC 985-705, software modification costs, comprised of salaries, wages and benefits, to satisfy hardware upgrades and changes in system configurations, are expensed as incurred. | |||
Inventory [Policy Text Block] | ' | ||
e) | Inventory | ||
Inventory is recorded at the lower of cost or market with cost being determined on the weighted average method. When required, a provision is made to reduce excess and obsolete inventory to estimated net realizable value. The net realizable value of inventory is generally considered to be the selling price in the ordinary course of business less the estimated costs of completion and estimated costs to make the sale. Inventory consists of computers, general, monitors, printers, modems, and parts and enclosures. | |||
Equipment and Amortization [Policy Text Block] | ' | ||
f) | Equipment and Amortization | ||
Equipment is recorded at cost and amortized using the declining-balance and straight-line method at rates determined to estimate the useful lives of the assets. The annual rates used in calculating amortization are as follows: | |||
Computer hardware | 30% straight-line | ||
Computer software | 50% declining-balance | ||
Office furniture | 20% declining-balance | ||
Equipment | 30% declining-balance | ||
Leasehold improvements | straight-line over the term of the lease | ||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||
g) | Foreign Currency Translation | ||
The Company’s functional currency is the U.S. dollar. Transactions in foreign currency are translated in accordance with ASC Topic 830, Foreign Currency Matters, into U.S. dollars and reporting as follows: | |||
i) | monetary items at the exchange rate prevailing at the balance sheet date; | ||
ii) | non-monetary items at the historical exchange rate; | ||
iii) | revenue and expense at the average exchange rate in effect during the applicable accounting period. | ||
Gains and losses on foreign currency transactions are reported in the statements of operations. | |||
Basic and Diluted Loss Per Share [Policy Text Block] | ' | ||
h) | Basic and Diluted Loss Per Share | ||
The Company computes loss per share in accordance with ASC 260, Earnings Per Share. Under these provisions, basic loss per share is computed using the weighted average number of common stock outstanding during the periods. Diluted loss per share is computed using the weighted average number of common and potentially dilutive common stock outstanding during the period. As the Company generated net losses in the periods presented, the basic and diluted loss per share is the same as the exercise of options or warrants would be anti-dilutive. | |||
Fair Value of Financial Instruments [Policy Text Block] | ' | ||
i) | Fair Value of Financial Instruments | ||
ASC 820, Fair Value Measurements and Disclosures and ASC 825, Financial Instruments establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. | |||
These tiers are: | |||
• | Level 1 – defined as observable inputs such as quoted prices in active markets; | ||
• | Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and | ||
• | Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||
Cash consists of cash on deposit with a high quality major financial institution. The carrying cost approximates fair value due to the liquidity of these deposits. The carrying amounts of other financial assets and liabilities comprising accounts payable and accrued liabilities, due to related parties, were a reasonable approximation of their fair value. | |||
Income Taxes [Policy Text Block] | ' | ||
j) | Income Taxes | ||
The Company has adopted ASC 740, Income Taxes. This standard requires the use of an asset and liability approach for financial accounting, and reporting on income taxes. Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. | |||
Asset Impairment [Policy Text Block] | ' | ||
k) | Asset Impairment | ||
Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate the carrying amount may not be recoverable, pursuant to guidance established in ASC 360-50, Impairment or Disposal of Long-lived Assets. The Company determines impairment by comparing the undiscounted future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, assets are written down to fair value. | |||
Comprehensive Loss [Policy Text Block] | ' | ||
l) | Comprehensive Loss | ||
ASC 220, Comprehensive Income establishes standards for the reporting and display of comprehensive items in the consolidated financial statements. As at December 31, 2013, 2012 and 2011, the Company had no items that represent a comprehensive income or loss and, therefore, has not included a statement of comprehensive loss in the consolidated financial statements. | |||
Equity Instruments [Policy Text Block] | ' | ||
m) | Equity Instruments | ||
In situations where common shares are issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and services is based on the stock price as of the earliest of: | |||
i) | the date at which the counterparty’s performance is complete; | ||
ii) | the date at which a commitment for performance by the counterparty to earn the common shares is reached; or | ||
iii) | the date at which the common shares are issued if they are fully vested and non-forfeitable at that date. | ||
The Company has a stock-based compensation plan which is described more fully in Note 6. The Company measures the compensation cost of stock options and other stock-based awards to employees and directors at fair value at the grant date and recognizes compensation expense over the requisite service period for awards expected to vest. Except for transactions with employees and directors, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received, or the fair value of the equity instruments issued, whichever is more reliably measurable. Additionally, the Company has determined that the dates used to value the transaction are either: | |||
i) | The date at which a commitment for performance by the counter party to earn the equity instruments is established; or | ||
ii) | The date at which the counter party’s performance is complete. | ||
Recent Accounting Pronouncements [Policy Text Block] | ' | ||
n) | Recent Accounting Pronouncements | ||
In November 2011, ASC guidance was issued related to disclosures about offsetting assets and liabilities. The new standard requires disclosures to allow investors to better compare financial statements prepared under U.S GAAP with financial statements prepared under IFRS. The update is effected for the Company’s fiscal year beginning January 1, 2013, and interim periods within those annual periods. Retrospective application is required. In January 2013, ASC guidance was issued to clarify that the disclosure requirements are limited to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (i) offset in the financial statements or (ii) subject to an enforceable master netting arrangement or similar agreement. The Company’s January 1, 2013 adoption of the updated guidance had no impact on the Company’s consolidated financial position, results of operations or cash flows. | |||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRS. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on or after January 1, 2013. The Company’s January 1, 2013 adoption of the updated guidance had no impact on the Company’s consolidated financial position, results of operations or cash flows. | |||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The amendments in ASU 2013-04 provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this Update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this standard are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of the pronouncement to have a material effect on its consolidated financial statements. | |||
In April 2013, the FASB issued ASU No. 2013-07, Presentation of Financial Statements (Top 205): Liquidation Basis of Accounting. The objective of ASU No. 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The amendments in this standard is effective prospectively for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. The Company does not expect the adoption of the pronouncement to have a material effect on its consolidated financial statements. | |||
In March 2013, ASC guidance was issued related to Foreign Currency Matters to clarify the treatment of cumulative translation adjustments when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. The updated guidance also resolves the diversity in practice for the treatment of business combinations achieved in stages in a foreign entity. The update is effective prospectively for the Company’s fiscal year beginning January 1, 2014. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows. | |||
In July 2013, ASC guidance was issued related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The updated guidance requires an entity to net its unrecognized tax benefits against the deferred tax assets for net operating loss carryforwards, similar tax losses, or tax credit carryforwards in the same jurisdiction. A gross presentation will be required only if such carryforwards are not available or would not be used by the entity to settle any additional income taxes resulting from disallowance of the uncertain tax position. The update is effective prospectively for the Company’s fiscal year beginning January 1, 2014. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Schedule of Amortization Rates [Table Text Block] | ' | ||
Computer hardware | 30% straight-line | ||
Computer software | 50% declining-balance | ||
Office furniture | 20% declining-balance | ||
Equipment | 30% declining-balance | ||
Leasehold improvements | straight-line over the term of the lease |
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Inventory [Table Text Block] | ' | ||||||
2013 | 2012 | ||||||
Computers | $ | 45,382 | $ | 2,765 | |||
Monitors | 114,126 | 31,146 | |||||
Printers | 15,880 | − | |||||
Parts and enclosures | 31,426 | 291,301 | |||||
General | 23,779 | 18,996 | |||||
$ | 230,593 | $ | 344,208 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||
Schedule of Property and Equipment [Table Text Block] | ' | ' | ||||||||||||||||||
2013 | ||||||||||||||||||||
2012 | ||||||||||||||||||||
Accumulated | Net Book | |||||||||||||||||||
Cost | Amortization | Value | Accumulated | Net Book | ||||||||||||||||
Cost | Amortization | Value | ||||||||||||||||||
Computer hardware | $ | 38,713 | $ | 30,524 | $ | 8,189 | ||||||||||||||
Computer software | 1,324 | 1,286 | 38 | Computer hardware | $ | 38,713 | $ | 19,569 | $ | 19,144 | ||||||||||
Office furniture | 21,012 | 12,875 | 8,137 | Computer software | 1,324 | 1,182 | 142 | |||||||||||||
Equipment | 41,882 | 24,610 | 17,272 | Office furniture | 21,012 | 6,926 | 14,086 | |||||||||||||
Leasehold improvements | 47,628 | 44,187 | 3,441 | Equipment | 41,882 | 13,257 | 28,625 | |||||||||||||
Leasehold improvements | 47,628 | 29,287 | 18,341 | |||||||||||||||||
$ | 150,559 | $ | 113,482 | $ | 37,077 | |||||||||||||||
$ | 150,559 | $ | 70,221 | $ | 80,338 |
STOCK_OPTIONS_Tables
STOCK OPTIONS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected dividend yield | − | 0% | 0% | |||||||||||
Risk-free interest rate | − | 0.43% | 1.92% | |||||||||||
Expected volatility | − | 54% | 66% | |||||||||||
Expected option life (in years) | − | 1 | 4.54 - 5.00 | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||
Weighted- | ||||||||||||||
Weighted | Average | |||||||||||||
Average | Remaining | Aggregate | ||||||||||||
Number of | Exercise | Contractual | Intrinsic | |||||||||||
Options | Price | Term (years) | Value | |||||||||||
Outstanding, December 31, 2011 | 2,720,000 | $ | 0.26 | 4.98 | $ | − | ||||||||
Granted | 300,000 | $ | 0.6 | |||||||||||
Expired | (200,000 | ) | $ | 0.2 | ||||||||||
Outstanding, December 31, 2012 | 2,820,000 | $ | 0.3 | 2.56 | $ | − | ||||||||
Expired | (360,000 | ) | $ | 0.6 | ||||||||||
Outstanding, December 31, 2013 | 2,460,000 | $ | 0.26 | 1.86 | $ | − | ||||||||
Exercisable, December 31, 2013 | 2,385,000 | $ | 0.25 | 1.88 | $ | − | ||||||||
Schedule of Non-Vested Stock Options, Activity [Table Text Block] | ' | |||||||||||||
Weighted | ||||||||||||||
Average | ||||||||||||||
Number of | Grant Date | |||||||||||||
Options | Fair Value | |||||||||||||
Non-vested at December 31, 2011 | 1,360,000 | $ | 0.1 | |||||||||||
Granted | 300,000 | $ | 0.001 | |||||||||||
Expired | (50,000 | ) | $ | 0.11 | ||||||||||
Vested | (830,000 | ) | $ | 0.08 | ||||||||||
Non-vested at December 31, 2012 | 780,000 | $ | 0.08 | |||||||||||
Vested | (705,000 | ) | $ | 0.09 | ||||||||||
Non-vested at December 31, 2013 | 75,000 | $ | 0.001 | |||||||||||
Schedule of Disclosure of Stock Options Outstanding [Table Text Block] | ' | |||||||||||||
Number of Options | Exercise Price | Expiry Date | ||||||||||||
75,000 | $0.60 | February 28, 2014* | ||||||||||||
15,000 | $0.60 | 30-Jul-14 | ||||||||||||
90,000 | $0.60 | 30-Nov-14 | ||||||||||||
75,000 | $0.60 | 28-Feb-15 | ||||||||||||
15,000 | $0.60 | 30-Jul-15 | ||||||||||||
90,000 | $0.60 | 30-Nov-15 | ||||||||||||
2,100,000 | $0.20 | 29-Dec-15 | ||||||||||||
2,460,000 | * Subsequently expired |
COMMITMENTS_AND_CONTRACTUAL_OB1
COMMITMENTS AND CONTRACTUAL OBLIGATIONS (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | |
Fiscal year ending December 31, 2014 | $ 10,835 (CDN$11,525) |
FINANCIAL_INSTRUMENTS_AND_RISK1
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | |||||||||
Schedule of Financial Instruments at Fair Value [Table Text Block] | ' | ' | ||||||||
31-Dec-13 | FAIR | 31-Dec-12 | FAIR | |||||||
VALUE | TOTAL | VALUE | TOTAL | |||||||
INPUT | HELD-FOR- | CARRYING | FAIR | INPUT | HELD-FOR- | CARRYING | FAIR | |||
LEVEL | TRADING | VALUE | VALUE | LEVEL | TRADING | VALUE | VALUE | |||
Financial assets | Financial assets | |||||||||
Cash | 1 | $241,327 | $241,327 | $241,327 | Cash | 1 | $143,280 | $143,280 | $143,280 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Schedule of Provision for Income Tax [Table Text Block] | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Computed expected (benefit) income taxes | $ | (675,000 | ) | $ | (782,000 | ) | $ | (768,000 | ) | ||
Increase in valuation allowance | 675,000 | 782,000 | 768,000 | ||||||||
$ | - | $ | - | $ | - | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||
2013 | 2012 | ||||||||||
Deferred income tax asset | $ | 2,791,000 | $ | 2,116,000 | |||||||
Valuation allowance | (2,791,000 | ) | (2,116,000 | ) | |||||||
$ | - | $ | - |
NATURE_OF_OPERATIONS_AND_GOING1
NATURE OF OPERATIONS AND GOING CONCERN (Narrative) (Details) (USD $) | 1 Months Ended | ||
Jan. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock issued for acquisition | 4,789,035 | ' | ' |
Accumulated losses | ' | $11,325,957 | $8,679,129 |
INVENTORY_Narrative_Details
INVENTORY (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Inventory write-down | $217,719 | $0 |
RELATED_PARTY_TRANSACTIONS_AND1
RELATED PARTY TRANSACTIONS AND AMOUNTS OWING (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 159 Months Ended | ||
Jan. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Share-based Compensation | ' | $9,452 | $81,178 | $195,399 | $286,029 |
Stock Issued During Period, Shares, Acquisitions | 4,789,035 | ' | ' | ' | ' |
Company Controlled by Officers [Member] | ' | ' | ' | ' | ' |
Due to Related Parties | ' | 12,889 | ' | ' | 12,889 |
Companies Controlled by Officers [Member] | ' | ' | ' | ' | ' |
Due from Related Parties | ' | ' | 18,815 | ' | ' |
Companies Controlled by Officers [Member] | Management Fees [Member] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | ' | ' | 256,327 | ' |
Director and Companies Controlled by a Director [Member] | ' | ' | ' | ' | ' |
Due to Related Parties | ' | 4,534,392 | ' | ' | 4,534,392 |
Due from Related Parties | ' | ' | 2,073,965 | ' | ' |
Directors and Officers [Member] | Consulting Fees [Member] | ' | ' | ' | ' | ' |
Share-based Compensation | ' | 3,972 | 50,004 | 131,118 | ' |
Companies Controlled by a Director [Member] | Management Fees [Member] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | 240,210 | 256,858 | ' | ' |
Director [Member] | Notes Payable [Member] | ' | ' | ' | ' | ' |
Due to Related Parties | ' | $0 | $0 | $27,945 | $0 |
STOCK_OPTIONS_Narrative_Detail
STOCK OPTIONS (Narrative) (Details) (USD $) | 12 Months Ended | 159 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | |
Stock options granted on January 28, 2011 [Member] | Stock options granted on January 28, 2011 [Member] | Stock options granted on January 28, 2011 [Member] | Stock options granted on May 1, 2011 [Member] | Stock options granted on May 1, 2011 [Member] | Stock options granted on May 1, 2011 [Member] | Stock options granted on July 1, 2011 [Member] | Stock options granted on July 1, 2011 [Member] | Stock options granted on July 1, 2011 [Member] | Stock options granted on November 1, 2011 [Member] | Stock options granted on November 1, 2011 [Member] | Stock options granted on November 1, 2011 [Member] | Stock options granted on March 1, 2012 [Member] | Stock options granted on March 1, 2012 [Member] | Stock options granted on March 1, 2012 [Member] | Date of Grant [Member] | Date of Grant [Member] | Date of Grant [Member] | Date of Grant [Member] | Date of Grant [Member] | First Anniversary [Member] | First Anniversary [Member] | First Anniversary [Member] | First Anniversary [Member] | First Anniversary [Member] | Second Anniversary [Member] | Second Anniversary [Member] | Second Anniversary [Member] | Second Anniversary [Member] | Second Anniversary [Member] | |||||
Stock options granted on January 28, 2011 [Member] | Stock options granted on May 1, 2011 [Member] | Stock options granted on July 1, 2011 [Member] | Stock options granted on November 1, 2011 [Member] | Stock options granted on March 1, 2012 [Member] | Stock options granted on January 28, 2011 [Member] | Stock options granted on May 1, 2011 [Member] | Stock options granted on July 1, 2011 [Member] | Stock options granted on November 1, 2011 [Member] | Stock options granted on March 1, 2012 [Member] | Stock options granted on January 28, 2011 [Member] | Stock options granted on May 1, 2011 [Member] | Stock options granted on July 1, 2011 [Member] | Stock options granted on November 1, 2011 [Member] | Stock options granted on March 1, 2012 [Member] | ||||||||||||||||||||
Maximum number of shares to be granted | ' | 6,620,230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options granted | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | 300,000 | ' | ' | 60,000 | ' | ' | 360,000 | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options exercise price | ' | $0.60 | ' | ' | ' | $0.20 | ' | ' | $0.20 | ' | ' | $0.60 | ' | ' | $0.60 | ' | $0.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Share-based Compensation | $9,452 | $81,178 | $195,399 | $286,029 | $3,972 | $40,146 | $185,113 | $2,686 | $29,993 | $21,832 | $163 | $963 | $682 | $2,562 | $9,736 | $682 | ' | $69 | $340 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to non-vested stock options | $8 | $9,460 | ' | $8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value price per share | $0.00 | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REDEEMABLE_PREFERRED_STOCK_Nar
REDEEMABLE PREFERRED STOCK (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | |
Preferred Stock, Shares Authorized | 100,000,000 | ' | 100,000,000 |
Preferred Stock, Dividend Rate, Percentage | 10.00% | ' | ' |
Temporary Equity, Redemption Price Per Share | ' | $1 | ' |
Proceeds from Issuance of Private Placement | ' | $1,000,000 | ' |
Issuance of preferred shares upon conversion of note (shares) | ' | 1,027,945 | ' |
Common shares converted up to July 31, 2012 [Member] | ' | ' | ' |
Preferred Stock, Conversion Price | 0.6 | ' | ' |
Common shares converted between August 1, 2012 and July 31, 2013 [Member] | ' | ' | ' |
Preferred Stock, Conversion Price | 1 | ' | ' |
Common shares converted between August 1, 2013 and July 31, 2015 [Member] | ' | ' | ' |
Preferred Stock, Conversion Price | 1.5 | ' | ' |
Class A Preferred Shares [Member] | ' | ' | ' |
Preferred Stock, Shares Authorized | 25,000,000 | ' | ' |
Preferred Stock, Conversion Price | 1 | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | 1,000,000 | ' |
COMMITMENTS_AND_CONTRACTUAL_OB2
COMMITMENTS AND CONTRACTUAL OBLIGATIONS (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum Cash Payment [Member] | ' |
Commitment, Monthly Amount | $6,000 |
Equity or Debt Amount of the Company [Member] | ' |
Commitment, Monthly Amount | 6,000 |
Consulting Agreement [Member] | ' |
Commitment, Monthly Amount | $12,000 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate, Continuing Operations | 26.00% | 26.00% |
Operating Loss Carryforwards | $10,734,000 | $8,140,000 |
Schedule_of_Amortization_Rates
Schedule of Amortization Rates (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Equipment [Member] | ' |
Amortization Rate | 30.00% |
Computer hardware [Member] | ' |
Amortization Rate | 30.00% |
Office furniture [Member] | ' |
Amortization Rate | 20.00% |
Computer software [Member] | ' |
Amortization Rate | 50.00% |
Schedule_of_Inventory_Details
Schedule of Inventory (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory | $230,593 | $344,208 |
Computers [Member] | ' | ' |
Inventory | 45,382 | 2,765 |
Monitors [Member] | ' | ' |
Inventory | 114,126 | 31,146 |
Printers [Member] | ' | ' |
Inventory | 15,880 | 0 |
Parts and enclosures [Member] | ' | ' |
Inventory | 31,426 | 291,301 |
General [Member] | ' | ' |
Inventory | $23,779 | $18,996 |
Schedule_of_Property_and_Equip
Schedule of Property and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Cost | $150,559 | $150,559 |
Accumulated Amortization | 113,482 | 70,221 |
Net Book Value | 37,077 | 80,338 |
Computer hardware [Member] | ' | ' |
Cost | 38,713 | 38,713 |
Accumulated Amortization | 30,524 | 19,569 |
Net Book Value | 8,189 | 19,144 |
Computer software [Member] | ' | ' |
Cost | 1,324 | 1,324 |
Accumulated Amortization | 1,286 | 1,182 |
Net Book Value | 38 | 142 |
Office furniture [Member] | ' | ' |
Cost | 21,012 | 21,012 |
Accumulated Amortization | 12,875 | 6,926 |
Net Book Value | 8,137 | 14,086 |
Equipment [Member] | ' | ' |
Cost | 41,882 | 41,882 |
Accumulated Amortization | 24,610 | 13,257 |
Net Book Value | 17,272 | 28,625 |
Leasehold improvements [Member] | ' | ' |
Cost | 47,628 | 47,628 |
Accumulated Amortization | 44,187 | 29,287 |
Net Book Value | $3,441 | $18,341 |
Schedule_of_Sharebased_Payment
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 0.43% | 1.92% |
Expected volatility | 54.00% | 66.00% |
Expected option life | '1 year | ' |
Minimum [Member] | ' | ' |
Expected option life | ' | '4 years 6 months 14 days |
Maximum [Member] | ' | ' |
Expected option life | ' | '5 years |
Schedule_of_Sharebased_Compens
Schedule of Share-based Compensation, Stock Options, Activity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Options, Outstanding, Beginning of the Period | 2,820,000 | 2,720,000 |
Weighted Average Exercise Price, Beginning of the Period | $0.30 | $0.26 |
Weighted Average Remaining Contractual Term, Beginning of the Period | '2 years 6 months 22 days | '4 years 11 months 23 days |
Number of Options, Granted in Period | ' | 300,000 |
Weighted Average Exercise Price, Grants in Period | ' | $0.60 |
Number of Options, Expired | -360,000 | -200,000 |
Weighted Average Exercise Price, Options Expired | $0.60 | $0.20 |
Number of Options, End of the Period | 2,460,000 | 2,820,000 |
Weighted Average Exercise Price, End of the Period | $0.26 | $0.30 |
Weighted Average Remaining Contractual Term, End of Period | '1 year 10 months 10 days | '2 years 6 months 22 days |
Number of Options, Exercisable End of the Period | 2,385,000 | ' |
Weighted Average Exercise Price, Exercisable, End of the Period | $0.25 | ' |
Weighted Average Remaining Contractual Term, Exercisable, End of the Period | '1 year 10 months 17 days | ' |
Aggregate Intrinsic Value, Exercisable, End of the Period | $0 | ' |
Schedule_of_NonVested_Stock_Op
Schedule of Non-Vested Stock Options, Activity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Options, Outstanding, Beginning of the Period | 2,820,000 | 2,720,000 |
Weighted Average Exercise Price, Beginning of the Period | $0.30 | $0.26 |
Number of Options, Granted in Period | ' | 300,000 |
Weighted Average Grant Date Fair Value, Options Granted | $0.00 | $0.10 |
Number of Options, Expired | -360,000 | -200,000 |
Weighted Average Exercise Price, Options Expired | $0.60 | $0.20 |
Number of Options, End of the Period | 2,460,000 | 2,820,000 |
Weighted Average Exercise Price, End of the Period | $0.26 | $0.30 |
Non-Vested Stock Options [Member] | ' | ' |
Number of Options, Outstanding, Beginning of the Period | 780,000 | 1,360,000 |
Weighted Average Exercise Price, Beginning of the Period | $0.08 | $0.10 |
Number of Options, Granted in Period | ' | 300,000 |
Weighted Average Grant Date Fair Value, Options Granted | ' | $0.00 |
Number of Options Vested | ($705,000) | ($830,000) |
Weighted Average Grant Date Fair Value, Options Vested | $0.09 | $0.08 |
Number of Options, Expired | ' | -50,000 |
Weighted Average Exercise Price, Options Expired | ' | $0.11 |
Number of Options, End of the Period | 75,000 | 780,000 |
Weighted Average Exercise Price, End of the Period | $0.00 | $0.08 |
Schedule_of_Disclosure_of_Stoc
Schedule of Disclosure of Stock Options Outstanding (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Number of Options | 2,460,000 | 2,820,000 | 2,720,000 |
Stock Options Exercise Price | $0.26 | $0.30 | $0.26 |
Expires February 28, 2014 [Member] | ' | ' | ' |
Number of Options | 75,000 | ' | ' |
Stock Options Exercise Price | $0.60 | ' | ' |
Expires July 30, 2014 [Member] | ' | ' | ' |
Number of Options | 15,000 | ' | ' |
Stock Options Exercise Price | $0.60 | ' | ' |
Expires November 30, 2014 [Member] | ' | ' | ' |
Number of Options | 90,000 | ' | ' |
Stock Options Exercise Price | $0.60 | ' | ' |
Expires February 28, 2015 [Member] | ' | ' | ' |
Number of Options | 75,000 | ' | ' |
Stock Options Exercise Price | $0.60 | ' | ' |
Expires July 30, 2015 [Member] | ' | ' | ' |
Number of Options | 15,000 | ' | ' |
Stock Options Exercise Price | $0.60 | ' | ' |
Expires November 30, 2015 [Member] | ' | ' | ' |
Number of Options | 90,000 | ' | ' |
Stock Options Exercise Price | $0.60 | ' | ' |
Expires December 29, 2015 [Member] | ' | ' | ' |
Number of Options | 2,100,000 | ' | ' |
Stock Options Exercise Price | $0.20 | ' | ' |
Schedule_of_Future_Minimum_Ren
Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | CAD | |
Operating Leases, Future Minimum Payments Due | $10,835 | 11,525 |
Schedule_of_Financial_Instrume
Schedule of Financial Instruments at Fair Value (Details) (Fair Value, Inputs, Level 1 [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Cash, Held-For-Trading | $241,327 | $143,280 |
Cash Equivalents, at Carrying Value | 241,327 | 143,280 |
Cash and Cash Equivalents, Fair Value Disclosure | $241,327 | $143,280 |
Schedule_of_Provision_for_Inco
Schedule of Provision for Income Tax (Details) (USD $) | 11 Months Ended | 12 Months Ended | |
Dec. 01, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Computed expected (benefit) income taxes | ($768,000) | ($675,000) | ($782,000) |
Increase in valuation allowance | 768,000 | 675,000 | 782,000 |
Income Tax Expense | $0 | $0 | $0 |
Schedule_of_Deferred_Tax_Asset
Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred income tax asset | $2,791,000 | $2,116,000 |
Valuation allowance | -2,791,000 | -2,116,000 |
Deferred Tax Assets, Net, Total | $0 | $0 |