Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 24, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'MACROSOLVE INC | ' | ' |
Entity Central Index Key | '0001178727 | ' | ' |
Trading Symbol | 'mcve | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Well-Known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $3,588,179 |
Entity Common Stock, Shares Outstanding | ' | 190,764,559 | ' |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash | $706,211 | $659,204 |
Accounts receivable - trade | 38,791 | 74,056 |
Prepaid expenses and notes receivable | 32,594 | 19,330 |
Total current assets | 777,596 | 752,590 |
PROPERTY AND EQUIPMENT, at cost: | 4,237 | 21,651 |
Less - accumulated depreciation | -1,586 | -19,462 |
Net property and equipment | 2,651 | 2,189 |
OTHER ASSETS: | ' | ' |
Available-for-sale investment - DecisionPoint Systems, Inc | 324,190 | 493,827 |
Available-for-sale investment - MEDL Mobile Holdings, Inc | 39,537 | ' |
Available-for-sale Investment - Endexx Corporation | 7,675 | ' |
Intangible assets, net of amortization | 70,223 | 64,227 |
Total other assets | 441,625 | 558,054 |
TOTAL ASSETS | 1,221,872 | 1,312,833 |
CURRENT LIABILITIES: | ' | ' |
Note Payable - Oklahoma Technology Commercialization Center- Current | 112,500 | 90,000 |
Accounts payable - trade and accrued liabilities | 181,172 | 82,226 |
Note payable - Related party | 22,500 | ' |
Total current liabilities | 316,172 | 172,226 |
LONG-TERM DEBT, less current maturities | ' | ' |
Note Payable - Shareholders | 533,681 | 533,681 |
Note Payable - Oklahoma Technology Commercialization Center | 20,000 | 125,000 |
Convertible debentures, net of discount of $54,545 and $72,727 respectively | 95,455 | 77,273 |
Total long-term debt, less current maturities | 649,136 | 735,954 |
TOTAL LIABILITIES | 965,308 | 908,180 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, $.01 par value; authorized 10,000,000 shares; 0 shares issued and outstanding, at December 31, 2013 and 2012, respectively | ' | ' |
Common stock, $.01 par value; authorized 500,000,000 shares; issued and outstanding 190,764,586 and 182,163,896 shares, at December 31, 2013 and 2012, respectively | 1,907,645 | 1,821,638 |
Additional paid-in capital | 19,922,670 | 19,720,319 |
Accumulated other comprehensive income | -399,936 | -204,173 |
Accumulated deficit | -21,173,815 | -20,933,131 |
Total stockholders' equity | 256,564 | 404,653 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,221,872 | $1,312,833 |
BALANCE_SHEETS_Parentheticals
BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Convertible debentures, net of discount | $54,545 | $72,727 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 190,764,586 | 182,163,896 |
Common stock, shares outstanding | 190,764,586 | 182,163,896 |
STATEMENTS_OF_INCOME_AND_COMPR
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ' | ' |
Revenues | $1,454,337 | $2,433,745 |
Cost of revenues | 854,471 | 1,029,985 |
Gross profit | 599,866 | 1,403,760 |
General and administrative expense | 777,920 | 1,431,869 |
Loss from operations | -178,054 | -28,109 |
Other income (expense) | ' | ' |
Interest income | 6,681 | 164 |
Interest expense | -69,311 | -1,998,429 |
Loss on Derivatives | ' | -4,028,085 |
Total other expense | -62,630 | -6,026,350 |
Net loss from continuing operations | -240,684 | -6,054,459 |
DISCONTINUED OPERATIONS | ' | ' |
Loss from operations of discontinued Illume Mobile Operations | ' | -2,097,940 |
Loss on sales of discontinued operations | ' | -106,538 |
Net loss from discontinued operations | ' | -2,204,478 |
NET LOSS | -240,684 | -8,258,937 |
OTHER COMPREHENSIVE INCOME, net of tax | ' | ' |
Unrealized holding loss arising during the period | -195,763 | -204,173 |
COMPREHENSIVE INCOME | -436,447 | -8,463,110 |
LOSS ALLOCABLE TO COMMON STOCKHOLDERS: | ' | ' |
Net loss | -240,684 | -8,258,937 |
Loss allocable to common stockholders | ($240,684) | ($8,258,937) |
Weighted average number of common shares outstanding | 185,938,398 | 163,405,338 |
Basic and diluted net income (loss) from continuing operations per share | $0 | ($0.04) |
Basic and diluted net loss from discontinued operations per share | ' | ($0.01) |
Basic and diluted net income (loss) per share | $0 | ($0.05) |
STATEMENTS_OF_STOCKHOLDERS_EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
BALANCE, at Dec. 31, 2011 | ($1,391,296) | $1,223,869 | $10,059,029 | ' | ($12,674,194) |
BALANCE ( in shares) at Dec. 31, 2011 | ' | 122,386,894 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net loss | -8,258,937 | ' | ' | ' | -8,258,937 |
Comprehensive Loss | -8,463,110 | ' | ' | -204,173 | ' |
Derivative liabiilties written off to additional paid-in capital | 4,473,289 | ' | 4,473,289 | ' | ' |
Debt discount recorded for beneficial conversion feature | 1,475,000 | ' | 1,475,000 | ' | ' |
Common Stock issued for Services | 278,450 | 28,000 | 250,450 | ' | ' |
Common Stock issued for Services (in shares) | ' | 2,800,000 | ' | ' | ' |
Common Stock issued for cash | 250,000 | 25,000 | 225,000 | ' | ' |
Common Stock issued for cash (in shares) | ' | 2,500,000 | ' | ' | ' |
Common Stock issued for conversion of debt and accrued interest | 3,187,491 | 418,159 | 2,769,332 | ' | ' |
Common Stock issued for conversion of debt and accrued interest (in shares) | ' | 41,815,921 | ' | ' | ' |
Compensation expense related to stock awards | 500,718 | 127,237 | 373,481 | ' | ' |
Compensation expense related to stock awards (in shares) | ' | 12,723,747 | ' | ' | ' |
Option expense | 94,738 | ' | 94,738 | ' | ' |
Cancellation of shares | -627 | -627 | ' | ' | ' |
Cancellation of shares (in shares) | ' | -62,666 | ' | ' | ' |
BALANCE, at Dec. 31, 2012 | 404,653 | 1,821,638 | 19,720,319 | -204,173 | -20,933,131 |
BALANCE ( in shares) at Dec. 31, 2012 | ' | 182,163,896 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net loss | -240,684 | ' | ' | ' | -240,684 |
Comprehensive Loss | -436,447 | ' | ' | -195,763 | ' |
Derivative liabiilties written off to additional paid-in capital | ' | ' | ' | ' | ' |
Debt discount recorded for beneficial conversion feature | ' | ' | ' | ' | ' |
MEDL Holdings investment | ' | ' | ' | ' | ' |
Stock issued in exchange for available-for-sale securities | 58,338 | 25,000 | 33,338 | ' | ' |
Stock issued in exchange for available for sale securities (in shares) | ' | 2,500,000 | ' | ' | ' |
Compensation expense related to stock awards | 140,000 | 61,007 | 78,993 | ' | ' |
Compensation expense related to stock awards (in shares) | ' | 6,100,690 | ' | ' | ' |
Option expense | 90,020 | ' | 90,020 | ' | ' |
BALANCE, at Dec. 31, 2013 | $256,564 | $1,907,645 | $19,922,670 | ($399,936) | ($21,173,815) |
BALANCE ( in shares) at Dec. 31, 2013 | ' | 190,764,586 | ' | ' | ' |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
OPERATING ACTIVITIES: | ' | ' |
Net loss | ($240,684) | ($8,258,937) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 3,384 | 517,509 |
Loss on disposal of fixed assets | 435 | 4,245 |
Loss on sales of assets to DecisionPoint | ' | 106,538 |
Bad debt expense | ' | 141,277 |
Amortization of debt discount | 18,182 | 1,847,477 |
Loss on derivative liability | ' | 4,028,085 |
Equity based compensation | 140,000 | 779,168 |
Option expense | 90,020 | 94,738 |
Cancellation of shares | ' | -627 |
Stock received from Endexx Corporation for revenue | -15,000 | ' |
Changes in current assets and liabilities: | ' | ' |
Decrease in accounts receivable - trade | 9,998 | 195,969 |
Decrease (Increase) in prepaid expenses and other | -543 | 223,747 |
Increase (decrease) in accounts payable - trade and accrued liabilities | 121,446 | -272,950 |
(Decrease) increase in unearned income | ' | 5,571 |
Net cash provided by (used in) operating activities | 127,238 | -588,190 |
INVESTING ACTIVITIES: | ' | ' |
Cash received from notes receivable | 12,546 | ' |
Purchase of equipment | -1,467 | -8,580 |
Cash received from sale of Illume Mobile | ' | 250,000 |
Software development costs | ' | -233,390 |
Patent application fees | -8,810 | -4,568 |
Net cash provided by investing activities | 2,269 | 3,462 |
FINANCING ACTIVITIES: | ' | ' |
Proceeds from convertible debt | ' | 180,000 |
Proceeds from shareholder loan | ' | 778,300 |
Proceeds from sale of common stock | ' | 250,000 |
Repayments of shareholder loan | ' | -115,000 |
Repayments of notes payable | -82,500 | -22,500 |
Repayment of bank line of credit | ' | -100,000 |
Net cash (used in) provided by financing activities | -82,500 | 970,800 |
NET INCREASE IN CASH | 47,007 | 386,072 |
CASH, beginning of period | 659,204 | 273,132 |
CASH, end of period | 706,211 | 659,204 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Cash paid interest | 1,059 | 27,071 |
Cash paid income taxes | ' | ' |
Noncash investing and financing activities for the year ended December 31: | ' | ' |
Stock issued for conversion of debt and accrued interest | ' | 3,187,491 |
Stock issued in exchange for available-for-sale securities | 58,338 | ' |
Stock received from DecisionPoint Systems for sale of Illume Mobile assets | ' | 698,000 |
Change in fair value for available-for-sale securities | -195,763 | -204,173 |
Re-classification of accounts receivable to note receivable | 25,267 | ' |
Re-classification of accrued salary to noted payable to related party | 22,500 | ' |
Re-classification of shareholders loan from Short term to Long term | ' | 169,306 |
Re-classification of shareholders loan from long term to convertible debt | ' | 320,000 |
Re-classification of accrued interest to note payable - shareholders | ' | 21,075 |
Debt discount recorded for derivative liability | ' | 100,000 |
Debt discount recorded for beneficial conversion feature | ' | 1,475,000 |
Derivative liabiilties written off to additional paid-in capital | ' | $4,473,289 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
Nature of Operations: | |||||||||||||||||
MacroSolve, Inc. is an Oklahoma corporation formed on January 17, 1997, under the laws of the State of Oklahoma. We are focused on intellectual property licensing and enforcement of our patent in the mobile app market development space. We also offer consulting services related to mobile app development, marketing and financing of mobile app businesses. In addition, until July 31, 2012, we conducted business as Illume Mobile, engaged in the design, delivery and integration of custom solutions for the application of mobile technology in business processes. | |||||||||||||||||
Reclassifications: | |||||||||||||||||
Certain prior year amounts have been reclassified to conform to the current year presentation. | |||||||||||||||||
Use of Estimates: | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Concentration of Credit Risk: | |||||||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and trade receivables. The Company places its cash with high credit quality financial institutions. At times such cash may be in excess of the FDIC limit. With respect to trade receivables, the Company routinely assesses the financial strength of its customers and, as a consequence, believes that the receivable credit risk exposure is limited. | |||||||||||||||||
Cash Equivalents: | |||||||||||||||||
Cash equivalents are represented by operating accounts or money market accounts maintained with insured financial institutions, including all highly-liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of December 31, 2013 and 2012. | |||||||||||||||||
Accounts and Notes Receivable and Credit Policies: | |||||||||||||||||
Trade accounts receivable consist of amounts due from the sale of solution services and software licenses. Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days of receipt of the invoice. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts based on historical collection experience and a review of the current status of trade accounts receivable. At December 31, 2013 and 2012, the Company deems $0 and $5,700 as uncollectible, respectively. Bad debts expense was $0 in 2013 and $141,277 in 2012 of which $135,577 consisted of a customer note receivable that the Company deemed uncollectible following the sale of Illume Mobile. | |||||||||||||||||
On June 1, 2013, one customer issued a promissory note for an amount of $25,268 to the Company, to replace the accounts receivable owed to the Company. As of December 31, 2013, the note receivable has a balance of $12,721, will mature on May 31, 2014 and with interest calculated at the prime interest rate published in the Wall Street Journal plus five percent. | |||||||||||||||||
Property and Equipment: | |||||||||||||||||
Property and equipment is recorded at cost when acquired. Depreciation is provided principally on the straight-line method over the estimated useful lives of the related assets, which is 3-7 years for equipment, furniture and fixtures, hardware and software. Leasehold improvements are being amortized over a 7 year estimated useful life. A majority of the company’s fixed assets were associated with Illume Mobile, a division which was sold to DecisionPoint Systems, Inc. on July 31, 2012. Property and equipment consists of the following at December 31, 2013 and 2012: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Computer hardware | $ | 3,639 | $ | 16,197 | |||||||||||||
Furniture and fixtures | 598 | 5,454 | |||||||||||||||
4,237 | 21,651 | ||||||||||||||||
Less - accumulated depreciation | 1,586 | 19,462 | |||||||||||||||
$ | 2,651 | $ | 2,189 | ||||||||||||||
Expenditures for maintenance and repairs are charged to expense as incurred, whereas expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. | |||||||||||||||||
Marketable Securities: | |||||||||||||||||
All marketable securities are classified as available-for-sale securities. Available-for-sale securities are carried at fair value with resulting unrealized gains and losses, reported as a component of accumulated other comprehensive loss. | |||||||||||||||||
Long-Lived Assets: | |||||||||||||||||
The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10-35, “Impairment or Disposal of Long-lived Assets”. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were incurred during the periods ended December 31, 2013 and 2012. | |||||||||||||||||
Derivative Financial Instruments: | |||||||||||||||||
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a Black-Scholes option pricing model, assuming maximum value, in accordance with ASC 815-15 “Derivative and Hedging” to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. | |||||||||||||||||
Beneficial Conversion Features: | |||||||||||||||||
The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative fair value of detachable instruments included in the financing transaction, if any, to the fair value of the common shares at the commitment date to be received upon conversion. | |||||||||||||||||
Fair Value of Financial Instruments: | |||||||||||||||||
The Company measures its financial assets and liabilities in accordance with the requirements of FASB ASC 820, “Fair Value Measurements and Disclosures”. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. | |||||||||||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. | |||||||||||||||||
Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | |||||||||||||||||
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of December 31, 2013 and 2012: | |||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-13 | |||||||||||||||||
Derivative liability | - | - | $ | 0 | $ | 0 | |||||||||||
Available-for-sale securities | $ | 371,402 | - | - | $ | 371,402 | |||||||||||
31-Dec-12 | |||||||||||||||||
Derivative liability | - | - | $ | 0 | $ | 0 | |||||||||||
Available-for-sale securities | $ | 493,827 | - | - | $ | 493,827 | |||||||||||
Revenue Recognition and Unearned Revenue: | |||||||||||||||||
The Company recognizes revenue only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured. Revenues from intellectual property licenses are recognized upon issuance of the license. When intellectual property licenses are received under a contingent fee agreement with the law firm of Antonelli, Harrington & Thompson LLP, the applicable contingent legal expense is recorded as a cost of sale. In the event a non-exclusive intellectual property license is granted within the scope of a contracted app development project, ten percent (10%) of the contract amount is deemed to be payment for the license. Revenue from software product licensing is recognized ratably over the license period. Unearned income associated with Illume Mobile contracts of $36,971 was transferred to DecisionPoint Systems as part of the Illume Mobile asset sale in July 2012. | |||||||||||||||||
Solution services revenues, including advisory services, consist primarily of professional services contracted to third party customers or clients under contract for specific projects. Contracted projects that are fixed price are accounted for under the percentage-of-completion method of accounting. Revenue from contracted projects that are for provision of services is recognized at the time the service is provided. The Company no longer offers solutions services after the sale of Illume Mobile in July 2012. | |||||||||||||||||
Software Development Costs: | |||||||||||||||||
The Company accounts for software development costs in accordance with ASC 985-20, “Costs of Computer Software to be Sold, Leased, or Otherwise Marketed”. Costs incurred prior to the establishment of technological feasibility are expensed as incurred as research and development costs. Costs incurred after establishing technological feasibility and before the product is released for sale to customers are capitalized. These costs are amortized over three years and are reviewed for impairment at each period end. The Company sold a total of $1,213,550 in gross capitalized software development costs and associated $194,070 in accumulated amortization, or a net of $1,019,480, to DecisionPoint Systems in July 2012. Amortization expense in 2012 totaled $500,910 and consisted of $161,037 in Illume Mobile development costs, $2,814 in patent costs and $337,059 related to Mobiz360, including a one-time amortization of $293,054 net capitalized development costs, In May 2012, MoBiz360, an incomplete prototype website marketplace for an amount of $337,059, was conveyed to Clint Parr, our former president and CEO, as consideration for an undetermined equity interest in Mr. Parr’s new company. As of December 31, 2013, Mr. Parr’s new company is still not operational. The net value of MoBiz360 for an amount of $293,054 was written off as amortization expense during the year ended December 31, 2012. The Company is not presently developing software. | |||||||||||||||||
Income Taxes: | |||||||||||||||||
The Company accounts for income taxes utilizing ASC 740, “Income Taxes” (SFAS No. 109). ASC 740 requires the measurement of deferred tax assets for deductible temporary differences and operating loss carry forwards, and of deferred tax liabilities for taxable temporary differences. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. The effects of future changes in tax laws or rates are not included in the measurement. The Company recognizes the amount of taxes payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences of events and transactions that have been recognized in the Company’s financial statements or tax returns. The Company currently has substantial net operating loss carry forwards. The Company has recorded a 100% valuation allowance against net deferred tax assets due to uncertainty of their ultimate realization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | |||||||||||||||||
Employee Stock-Based Compensation: | |||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation-Stock Compensation”. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant-date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. | |||||||||||||||||
Non-Employee Stock-Based Compensation: | |||||||||||||||||
The Company accounts for stock-based compensation in accordance with the provision of ASC 505, “Equity Based Payments to Non-Employees” (“ASC 505”), Share Based Payments to Non-Employees, and ASC 505 which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. | |||||||||||||||||
Related Parties: | |||||||||||||||||
A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. | |||||||||||||||||
Earnings or Loss per Share: | |||||||||||||||||
The Company accounts for earnings per share pursuant to ASC 260, Earnings per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. As there was a net loss for the periods, basic and diluted loss per share is the same for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
Management does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company's financial statements. |
Investment
Investment | 12 Months Ended | |
Dec. 31, 2013 | ||
DecisionPoint Systems, Inc | ' | |
Investment [Line Items] | ' | |
Investments in advance to affiliates subsidiaries associates and joint ventures | ' | |
2 | INVESTMENT IN DECISIONPOINT SYSTEMS, INC. | |
As further described in Footnote #17, on July 31, 2012, the Company sold the Illume Mobile assets and operations to DecisionPoint Systems, Inc. (DPSI) for $250,000 cash and 617,284 shares of DPSI stock. The shares were recorded at fair value on July 31, 2012 of $698,000. In accordance with ASC 320, the stock is classified as available-for-sale equity and the unrealized market gains or losses are recorded as Other Comprehensive Income. The shares were valued at fair value of $324,190 and $493,827 at December 31, 2013 and 2012, respectively, with the decrease in fair value of $169,637 and $204,173 at December 31, 2013 and 2012, respectively, recorded in Other Comprehensive Income. | ||
MEDL Mobile Holdings, Inc | ' | |
Investment [Line Items] | ' | |
Investments in advance to affiliates subsidiaries associates and joint ventures | ' | |
3 | INVESTMENT IN MEDL MOBILE HOLDINGS, INC. | |
On March 8, 2013, the Company entered into an agreement with MEDL Mobile Holdings, Inc. (MEDL) to bring forth a program that offers access to the Company’s ‘816’ patent to app developers. MEDL received the right to grant a license to its clients on a ‘per install’ basis on a revenue sharing arrangement with the Company. As a part of the agreement, each Company received $50,000 worth of the other’s stock with the price per share determined by the Volume Weighted Average Price (“VWAP”) for each stock for the last twenty trading days prior to execution of the agreement. The Company received 147,692 shares of MEDL stock priced at $0.34 per share and MEDL received 2,500,000 shares of the Company’s stock priced at $0.02 per share. The shares were recorded at fair value on March 8, 2013 of $58,338. In accordance with ASC 320, the stock is classified as available-for-sale equity and the unrealized market gains or losses are recorded as Other Comprehensive Income. The shares were valued at fair value of $39,537 at December 31, 2013 with the decrease in fair value of $18,801 at December 31, 2013 recorded in Other Comprehensive Income. | ||
ENDEXX CORPORATION | ' | |
Investment [Line Items] | ' | |
Investments in advance to affiliates subsidiaries associates and joint ventures | ' | |
4. | INVESTMENT IN ENDEXX CORPORATION | |
On June 5, 2013, the Company entered into six month agreement with Endexx Corporation (EDXC) to coordinate business planning, investor interests and intellectual property for a mobile app venture that uniquely addresses advertising market analytics. Additionally, Endexx received a variable limited ‘816’ license during the course of the business advisory engagement while its app is in development with the agreement that a permanent license will be negotiated upon completion. Endexx paid the Company $15,000 compensation by issuing 125,000 shares of EDXC restricted stock priced at $.12 per share and the balance in accounts receivable. The shares were recorded at fair value on June 5, 2013 for an amount of $15,000. In accordance with ASC 320, the stock is classified as available-for-sale equity and the unrealized market gains or losses are recorded as Other Comprehensive Income. The shares were valued at fair value of $7,675 at December 31, 2013 with the decrease in fair value of $7,325 at December 31, 2013 recorded in Other Comprehensive Income. |
Line_of_Credit
Line of Credit | 12 Months Ended | |
Dec. 31, 2013 | ||
Debt Disclosure [Abstract] | ' | |
LINE OF CREDIT | ' | |
5. | LINE OF CREDIT | |
The Company had an advancing term loan with a financial institution of up to $100,000 with interest only payable monthly at the greater of 5.75% or prime rate plus 1.0% (4.25% at September 30, 2012), until September 2012, and secured by substantially all assets of the company and the personal guarantees of a company director. In exchange for the guaranty, the director receives a $3,000 commitment fee and a five year warrant to purchase $100,000 of stock with a strike price of ten cents ($0.10) per share. The loan was repaid in October 2012 and was not renewed. |
Oklahoma_Technology_Commercial
Oklahoma Technology Commercialization Center Note Payable | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
OKLAHOMA TECHNOLOGY COMMERCIALIZATION CENTER NOTE PAYABLE | ' | ||||
6. | OKLAHOMA TECHNOLOGY COMMERCIALIZATION CENTER NOTE PAYABLE | ||||
The Company carries a note from the State of Oklahoma Technology Business Finance Program (OTCC loan) represented originally by a $150,000 refundable award to be repaid at two times the amount of the award. The balance includes accrued interest (imputed at 14.27%), through September 2007. The monthly payments were suspended in October 2008 and resumed in October 2012 in the amount of $7,500 per month. The Company repaid $22,500 in 2012 and $82,500 in 2013. The total balance due at December 31, 2013 is $132,500 with $112,500 classified as current liabilities and $20,000 classified as long-term debt. The total balance due at December 31, 2012 is $215,000 with $90,000 classified as current liabilities and $125,000 classified as long-term debt. | |||||
The aggregate minimum maturities of the note payable for each of the next two years are as follows: | |||||
2014 | $ | 112,500 | |||
2015 | $ | 20,000 | |||
Total | $ | 132,500 |
Note_Payable_Related_Party
Note Payable Related Party (Related Party [Member]) | 12 Months Ended | |
Dec. 31, 2013 | ||
Related Party [Member] | ' | |
Short-term Debt [Line Items] | ' | |
NOTE PAYABLE - RELATED PARTY | ' | |
7. | NOTE PAYABLE – RELATED PARTY | |
On September 30, 2013, the Company reclassified $13,500 deferred compensation to a note payable due to Chief Financial Officer Kendall Carpenter as stipulated in her employment agreement. The note bears a 6% interest rate and is due by September 30, 2014. On December 31, 2013, the Company reclassified $9,000 deferred compensation to a note payable due to Kendall Carpenter as stipulated in her employment agreement. The note bears a 6% interest rate and is due by December 31, 2014. There was no unpaid accrued interest at December 31, 2013. |
Note_Payable_Shareholders
Note Payable Shareholders (Shareholders [Member]) | 12 Months Ended | |
Dec. 31, 2013 | ||
Shareholders [Member] | ' | |
Short-term Debt [Line Items] | ' | |
NOTE PAYABLE - SHAREHOLDERS | ' | |
8. | NOTE PAYABLE - SHAREHOLDERS | |
As of December 31, 2011, the Company had recorded $169,306 in notes payable to directors. During 2012, multiple directors advanced $778,300 on short-term notes bearing 12% interest rates and mature on September 30, 2012. Four directors agreed to amend their notes by $320,000 which were reclassified as long-term debt upon issuance of 2012 Convertible Debenture Series C, see note 9. During the same year, $115,000 in notes was repaid in cash and $21,075 in accrued interest was reclassified as note payable. The total amount due to multiple directors of $533,681, including accrued interest, was rolled over into new notes dated September 30, 2012. The new notes are secured by the unencumbered 75% of patent settlement license fees and provide for accrued interest at 6% payable on maturity at January 1, 2015. The total balance due at December 31, 2013 and 2012 is $533,681. The accrued interest at December 31, 2013, 2012 is $40,092 and $8,177, respectively. | ||
The Company analyzed the modification of the term under ASC 470-60 “Trouble Debt Restructurings” and ASC 470-50 “Extinguishment of Debt”. The Company determined the modification is substantial and the transaction should be accounted for as an extinguishment with the old debt written off and the new debt initially recorded at fair value with a new effective interest rate. The Company also determined that the fair value of the new debt is the same as the fair value of the old debt. Thus no gain or loss was recognized upon the extinguishment. |
Convertible_Debentures
Convertible Debentures (Convertible Debt [Member]) | 12 Months Ended | |
Dec. 31, 2013 | ||
Convertible Debt [Member] | ' | |
Short-term Debt [Line Items] | ' | |
CONVERTIBLE DEBENTURES | ' | |
9 | CONVERTIBLE DEBENTURES | |
2010 Convertible Debenture | ||
During November 2010, a director invested $50,000 in the Convertible Debenture Series 2010 plus Series B Warrants. The debenture bore a 2% interest rate, a maturity date of December 31, 2015 and included a warrant for the right to purchase 95,493 shares at a $.2618 exercise price with a December 31, 2015 maturity date. Upon conversion, the director was entitled to receive the number of shares of Common Stock that could be purchased with two hundred percent (200%) of the face amount of the Debentures together with accrued interest and with the Common Stock valued using the weighted average price for the five-day trading period before the notice of conversion. The debenture became convertible on June 30, 2011. On March 1, 2012, the debenture was converted to 940,734 shares of stock. Accrued interest of $1,285 was settled in full during September, 2012. | ||
The Company analyzed the conversion option of all the 2010 convertible debt. As discussed in Footnote 13, the Company considered derivative accounting under ASC 815-15 “Derivatives and Hedging” and determined that the embedded conversion feature should be classified as a liability due to there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The embedded conversion feature was measured at fair value at the date of inception and at the end of each reporting period or termination of the instrument with the change in fair value recorded to earnings. | ||
2011 Convertible Debenture – Series A Warrants | ||
During April 2011, the Company began offering its Convertible Debentures - Series 2011 and Series A Warrants. The Debentures bore a 12% interest rate, a maturity date of December 31, 2016 and included warrants in an amount equal to the principal amount divided by 50% of the Debenture conversion price. Total numbers of warrants attached with the convertible debentures are 18,475,827 with a exercise price equal to 50% of the debenture conversion price. Upon conversion, the holder was entitled to receive the number of shares of Common Stock that could have been purchased with 200% of the principal amount of the Debenture, together with accrued and unpaid interest and the shares valued using the weighted average price for a five-day trading period preceding the Debenture investment. The Company issued $1,675,000 in debentures in 2011 to sixteen investors. During 2012, fifteen of the sixteen investors elected to convert a total of $1,575,000 Debenture Series 2011 into 16,831,553 shares of common stock. A total of $179,312 in accrued interest on the converted debentures was settled, $16,167 in cash and $163,145 with 870,543 shares of common stock. As of December 31, 2013 and 2012, there is one outstanding debenture for $100,000. The Company accounted for the intrinsic value of a Beneficial Conversion Feature inherent to a convertible note payable as a discount of $1,475,000 recorded to the convertible debenture. Amortization of debt discount of $18,182 and $1,402,273 was recognized in 2013 and 2012, respectively. The remaining balance of unamortized discount is $54,545 and $72,727 at December 31, 2013 and 2012, respectively. Accrued interest outstanding on the debenture as of December 31, 2013 and 2012 are $30,429 and $18,396, respectively. | ||
As a result of the issuance of 2010 convertible debt to a director and because the debt became convertible on June 30, 2011, the conversion option of all other third party convertible notes became tainted. Under ASC 815-15“Derivatives and Hedging”, all other tainted share settleable instruments must be reclassified from equity to liability. As a result of the full conversion of 2010 convertible debts on March 1, 2012, the derivative treatment on these other third party convertible notes ended and the derivative liabilities for an amount of $ 683,602 must be reclassified back to equity. See discussion in Note 13. | ||
2011 Convertible Debenture – Series B Warrants | ||
During July 2011, the Company began offering its Convertible Debentures Series 2011 and Series B warrants. The Debentures bore a 12% interest rate, a maturity date of December 31, 2016 and included warrants in an amount equal to the principal amount divided by the Debenture conversion price. Total numbers of warrants attached with the convertible debentures are 8,961,614 with an exercise price equal to the debenture conversion price. Upon conversion, the holder was entitled to receive the number of shares of Common Stock that could have been purchased with 200% of the principal amount of the Debenture, together with accrued and unpaid interest and the shares valued using the weighted average price for a five-day trading period preceding the Debenture investment provided however, that the conversion price shall not be less than ten cents per share at any time and the conversion price shall not be more than ten cents per share for investments made prior to October 1, 2011. By resolution of the Board on December 16, 2011, the ten cent conversion price per share was extended to investments made after October 1, 2011. The Company issued $896,161 in debentures in 2011 to nineteen investors. During 2012, eighteen of the nineteen investors elected to convert a total of $846,161 Debenture Series 2011 into 16,923,227 shares of common stock. A total of $45,941 in accrued interest on the converted debentures was settled with 459,412 shares of common stock. As of December 31, 2013 and 2012 there is one outstanding debenture for $50,000. Accrued interest as December 31, 2013 and 2012 are $13,216 and $7,200, respectively. | ||
As a result of the issuance of 2010 convertible debt to a director and because the debt became convertible on June 30, 2011, the conversion option of all other third party convertible notes became tainted. Under ASC 815-15“Derivatives and Hedging”, all other tainted share settleable instruments must be reclassified from equity to liability. As a result of the full conversion of 2010 convertible debts on March 1, 2012, the derivative treatment on these other third party convertible notes ended and the derivative liabilities for an amount of $663,160 must be reclassified back to equity. See discussion in Note 13. | ||
2012 Convertible Debenture – Series C Warrants | ||
On February 17, 2012, the Company began offering the Putable-Callable Debenture Series 2012 and Series C Warrants. The debentures bear interest at 8% per annum and mature on December 31, 2019. The convertible debenture is convertible at a conversion price equal to the weighted average price for the three-day trading period before the notice of conversion. The convertible note is also subject to dilutive adjustments for share issuances (full ratchet reset feature). On that date, the Company sold $500,000 of debentures to four directors of which $320,000 are converted from shareholders notes payable and invested $180,000 in new proceeds. Total numbers of warrants attached with the convertible debentures are 2,500,000 with an exercise price equal $0.1. On April 23, 2012, the directors converted $500,000 of debentures and $7,242 in accrued interest to 5,790,452 shares of restricted common stock and 2,500,000 Series C warrants were cancelled. | ||
Because these convertible debentures have full reset adjustments tied to future issuances of equity securities by the Company, they are subject to derivative liability treatment under ASC 815-40-15 “Determining whether an Instrument (or Embedded feature) is Indexed to an Entity's Own Stock”. ASC 815-40-15 require as of the date the convertible debenture issued, the derivative liability to be measured at fair value and $445,204 is recorded as a debt discount. As a result of full conversion on April 23, 2012, the derivative treatment on these convertible debentures ended and the derivative liabilities for an amount of $536,528 must be reclassified back to equity with the change in fair value of $91,324 recorded to loss on derivative liability. |
Stock_Options
Stock Options | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
STOCK OPTIONS | ' | ||||||||
10 | STOCK OPTIONS | ||||||||
During 2012, 27,700,000 options were granted, 211,600 options vested and 26,595,804 were forfeited, as follows: | |||||||||
On May 18, 2012, five directors each received 40,000 options, for a total of 200,000 options, as compensation. The options were immediately vested with a expiration date of May 18, 2017 and a strike price of $.10. On May 18, 2012, 27,500,000 options were granted to directors and management as incentive bonuses. The options vesting schedule is tied to market performance, with strike prices ranging from $.125 and $.40, and bear a expiration date of May 18, 2018. The options are unvested at December 31, 2013. | |||||||||
Of the 211,600 options which vested in 2012: 49,600 have an expiration date of September 11, 2014 and a strike price of $2.21, 160,000 have an expiration date of May 18, 2017 and a strike price of $.10, and 2,000 have an expiration date of April 26, 2017 and a strike price of $.21. | |||||||||
Of the 26,595,804 options which were forfeited in 2012: 3,200,000 issued to directors and management had an expiration date of September 27, 2017 and a strike price of $.50, 280,000 issued to a former director had expiration dates ranging from September 11, 2014 to May 18, 2017 and strike prices ranging from $.03 to $.60, 395,804 were issued to former employees who voluntarily terminated with expiration dates ranging from September 11, 2014 and April 25, 2017 and strike prices ranging from $.21 to $2.50, and 22,720,000 were issued to former officers and employees who were not retained following the sale of Illume Mobile with expiration dates ranging from May 18, 2018 to October 6, 2017 and strike prices ranging from $0.125 and $2.50. | |||||||||
During 2013, no options were granted, 39,200 options vested, and 63,120 options expired, as follows: | |||||||||
Of the 39,200 options that vested in 2013: all had an expiration date of September 11, 2014 and a strike price of $2.21. | |||||||||
Of the 63,120 options that expired in 2013, expirations occurred between January 1, 2013 and July 1, 2013 and the strike prices were $.60. | |||||||||
The calculated value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model, assuming maximum value, which values options based on the estimated fair value of the Company’s common stock at the grant date, the option strike price, the expected life of the option, the estimated volatility of the stock, the expected dividend payments, and the risk-free interest rate over the expected life of the option. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted is based on the vesting period and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Stock based compensation expense of $90,020 and $94,738 was recognized in 2013 and 2012 for employee options based on the Black-Scholes computation. | |||||||||
A summary of stock option activity as of December 31, 2013 and 2012 and changes during the periods then ended is presented below: | |||||||||
Stock Options | |||||||||
Weighted | |||||||||
Options | Average | ||||||||
Exercise Price | |||||||||
Outstanding – December 31, 2011 | 11,829,507 | $ | 0.52 | ||||||
Granted | 27,700,000 | $ | 0.26 | ||||||
Forfeited or Expired | (26,595,804 | ) | $ | 0.32 | |||||
Outstanding – December 31, 2012 | 12,933,703 | $ | 0.36 | ||||||
Exercisable – December 31, 2012 | 5,394,503 | $ | 0.51 | ||||||
Granted | - | $ | 0 | ||||||
Forfeited or Expired | (63,120 | ) | $ | 0.6 | |||||
Outstanding – December 31, 2013 | 12,870,584 | $ | 0.37 | ||||||
Exercisable – December 31, 2013 | 5,370,584 | $ | 0.52 | ||||||
Total Options outstanding and exercisable at December 31, 2013 and 2012 had an aggregate intrinsic value of $-0- and a weighted-average remaining contractual term of 2.9 and 3.7 years, respectively. | |||||||||
A summary of the status of the Company’s nonvested options and restricted stock as of December 31, 2013 and 2012 is presented below: | |||||||||
Stock Options | |||||||||
Nonvested Shares | Options | ||||||||
Nonvested - Beginning of Year 2012 | 6,028,450 | ||||||||
2012 Granted | 27,700,000 | ||||||||
2012 Vested | (211,600 | ) | |||||||
2012 Forfeited | (25,977,650 | ) | |||||||
Nonvested – End of Year 2012 | 7,539,200 | ||||||||
2013 Granted | - | ||||||||
2013 Vested | (39,200 | ) | |||||||
2013 Forfeited | ( - | ) | |||||||
Nonvested- End of Year 2013 | 7,500,000 | ||||||||
As of December 31, 2013 and 2012, there was $290,938 and $380,958 unrecognized compensation cost related to nonvested share-based compensation arrangements under the stock bonus plan. The weighted-average remaining vesting period is 3 years. |
Common_Stock_Warrants
Common Stock Warrants | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Common Stock Warrants [Abstract] | ' | ||||||||||||||||
COMMON STOCK WARRANTS | ' | ||||||||||||||||
11 | COMMON STOCK WARRANTS | ||||||||||||||||
During 2012, 5,000,000 warrants were issued and 8,666,680 were expired, as follows: | |||||||||||||||||
In February 2012, investors in the Putable-Callable Debenture Series 2012 and Series C warrants acquired 2,500,000 common stock purchase warrants with a strike price of $.10. The warrants with a fair value of $237,500 were cancelled in April 2012 when the investors elected to convert the debentures to common stock. See Note 9. | |||||||||||||||||
In March 2012, investors in the 2012 Common Stock Private Offering acquired 2,500,000 Series C warrants. The warrants remain outstanding and expire December 31, 2017 and bear a $0.15 strike price. | |||||||||||||||||
During 2013 no warrants were issued or expired. | |||||||||||||||||
The following table summarizes information about outstanding warrants at December 31, 2013: | |||||||||||||||||
Year Issued | Number | Remaining Contractual Life in Years | Number Currently Exercisable | Weighted Average | |||||||||||||
Outstanding | Exercise | ||||||||||||||||
Price | |||||||||||||||||
2009 | 21,682,372 | 0.6 | 21,682,372 | $ | 0.1 | ||||||||||||
2010 | 10,236,227 | 0.9 | 10,236,227 | $ | 0.1 | ||||||||||||
2011 | 29,680,086 | 3.0 | 29,680,086 | $ | 0.10 | ||||||||||||
2012 | 2,500,000 | 4 | 2,500,000 | $ | 0.15 | ||||||||||||
Total | 64,098,685 | 1.9 | 64,098,685 | $ | 0.1 |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |
Dec. 31, 2013 | ||
Stockholders Equity Note [Abstract] | ' | |
SHAREHOLDERS' EQUITY | ' | |
12. | SHAREHOLDERS’ EQUITY | |
Shares issued for convertible notes: | ||
During the year ended December 31, 2012, convertible debt of $2,971,161 along with accrued interest of $216,330 were converted into 41,815,921 common shares. See Note 9. | ||
Shares issued for services: | ||
During the year ended December 31, 2013, the Company issued 6,100,690 shares of common stock to employees and directors as compensation. The shares were valued at the market price on the respective dates of issuance, and the fair value of the shares was determined to be $140,000. | ||
During the year ended December 31, 2012, the Company issued 15,523,747 shares of common stock to employees and third party consultants as compensation. The shares were valued at the market price on the respective dates of issuance, and the fair value of the shares was determined to be $779,168. The Company cancelled 62,666 unvested shares valued at $627 in various stock bonus programs upon the voluntary termination of several former employees. | ||
Shares issued in exchange for available-for-sale securities | ||
During the year ended December 31, 2013, the Company issued 2,500,000 shares of restricted common stock to MEDL Mobile Holdings, Inc. in exchange for 147,692 shares of MEDL stock. The shares issued were valued at the fair market value of MEDL stock on the agreement date, which is $58,338. See Footnote 3. | ||
Shares issued for cash | ||
During the year ended December 31, 2012, the Company issued 2,500,000 shares of restricted common stock in a 2012 Private Stock Sale for $250,000 cash. |
Derivative_Liabilities
Derivative Liabilities | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Derivative Liabilities [Abstract] | ' | ||||
DERIVATIVE LIABILITIES | ' | ||||
13. | DERIVATIVE LIABILITIES | ||||
2010 Convertible Debenture | |||||
The Company issued a $50,000 2010 Convertible Debenture which became convertible on June 30, 2011. | |||||
As discussed in Note 9, the Company determined that the instruments embedded in the convertible note should be classified as liabilities and recorded at fair value due to there being no explicit limit to the number of shares to be delivered upon settlement of the above convertible debentures. The fair value of the instruments was determined by using Black-Scholes option-pricing model, assuming maximum value. | |||||
As a result of full conversion on March 1, 2012, under ASC 815- 15 “Derivatives and Hedging”, the instruments are measured at fair value at the date of termination with the change in fair value recorded to earnings. The fair value of the instruments related to the 2010 convertible debenture was $40,182 and was recognized as loss on derivative and reclassified out of liabilities to equity. | |||||
2011 Convertible Debenture | |||||
The Company issued $1,675,000 and $896,161 in 2011 Convertible Debenture – Series A and B, respectively. As discussed in the Note 9, as a result of the issuance of 2010 convertible debt to a director and because the debt became convertible on June 30, 2011, the conversion option of all other third party convertible notes became tainted. On March 1, 2012 the 2010 convertible debenture was fully converted to common stock, the conversion feature of these other convertible debts was no longer tainted. Under ASC 815-15 “Derivatives and Hedging”, the conversion feature of these other convertible debts must be measured at fair value on termination date with the change in fair value recorded to earnings. The fair value of the conversion feature on these other convertible debts on March 1, 2012 was $1,346,762 and was recognized as loss on derivative and reclassified out of liabilities to equity. The fair value of the instruments was determined by using Black-Scholes option-pricing model, assuming maximum value. | |||||
2012 Convertible Debenture | |||||
As discussed in note 9 on February 17, 2012, the Company issued $500,000 in 2012 Convertible Debenture Series C which had a reset to its conversion price. Under ASC 815-40-15 “Determining whether an Instrument (or Embedded feature) is Indexed to an Entity's Own Stock”, on the date the convertible debenture issued, the derivative liability was measured at fair value. The fair value of the conversion feature was determined to be $445,204 and was recognized as debt discount. | |||||
As a result of full conversion on April 23, 2012, the derivative treatment on these convertible debentures ended, the instruments are re-measured at fair value at the date of termination with the change in fair value recorded to earning. The fair value of the instrument was $536,528 and was re-classified out of liabilities to equity. The change in fair value of $91,324 was recognized as loss on derivative. Also the debt discount of $445,204 was fully amortized. The fair value of the instruments was determined by using Black-Scholes option-pricing model, assuming maximum value. | |||||
Warrants | |||||
The Company had 67,765,365 warrants outstanding on December 31, 2011. On March 1, 2012, as a result of full conversion of the 2010 convertible debentures, under ASC 815- 15 “Derivatives and Hedging”, the instruments are measured at fair value at the date of termination with the change in fair value recorded to earnings. The fair value of the instruments related to the warrants was $2,507,317 and was recognized as loss on derivative and reclassified out of liabilities to equity. The fair value of the instruments was determined by using Black-Scholes option-pricing model, assuming maximum value. | |||||
The Company issued 2,500,000 in warrants on February 17, 2012 which was during the period the 2010 Debenture created derivative accounting. Therefore, the Company recorded $195,000 as derivative liability on the issuance date and was reclassified out of equity to liabilities. On March 1, 2012, as a result of full conversion of the 2010 convertible debentures, under ASC 815- 15 “Derivatives and Hedging”, the instruments are measured at fair value at the date of termination with the change in fair value recorded to earnings. The fair value of the instruments related to the warrants was $237,500 and was reclassified out of liabilities to equity. The change in fair value of $42,500 was recognized as loss on derivative. The fair value of the instruments was determined by using Black-Scholes option-pricing model, assuming maximum value. | |||||
The following table summarizes the derivative liabilities included in the balance sheet: | |||||
Balance at December 31, 2011 | $ | 0 | |||
Record derivative liability as debt discount | 445,204 | ||||
Change in fair value of derivative liability | 4,028,085 | ||||
Settlement of derivative liability due to conversion of related notes | (4,473,289 | ) | |||
Balance at December 31, 2012 | $ | 0 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
14. | INCOME TAXES | ||||||||
The Company uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. | |||||||||
During the years ended December 31, 2013 and 2012, the Company incurred net losses, and, therefore, had no tax liability. The net deferred asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $13,576,705 and $13,586,303 for 2013 and 2012, respectively and will begin expiring in 2023. | |||||||||
Deferred tax assets consist of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability. Deferred tax assets consist of the following: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Net operating loss carry-forwards | $ | 4,616,080 | $ | 4,619,343 | |||||
Valuation allowance | (4,616,080 | ) | (4,616,343 | ) | |||||
$ | -0- | $ | -0- | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2013 | ||
Commitments and Contingencies [Abstract] | ' | |
COMMITMENTS AND CONTINENGENCIES | ' | |
15 | .COMMITMENTS AND CONTINGENCIES | |
At December 31, 2013, the Company has no obligation under any operating leases. | ||
As of March 28, 2014, the Company is not a party to any lawsuits. | ||
The Company entered into an employment agreement on October 23, 2012 with its CFO, Kendall Carpenter. The agreement provides for an annual base salary of $150,000 and an annual cash salary of at least $96,000 with the difference between the base salary and actual cash salary rolled into short term notes which accrue interest at 6% per annum. On September 30, 2013, the Company issued a $13,500 note to Ms. Carpenter with a due date of September 30, 2014. On December 31, 2013, the Company issued a $9,000 note to Ms. Carpenter with a due date of December 31, 2014. The Company paid Ms. Carpenter $489 in interest during 2013 and there was no accrued interest due at December 31, 2013. | ||
Rent expense in 2012 was $110,462. The Company’s office lease was assumed by DecisionPoint Systems, Inc. on July 31, 2012 following their purchase of Illume Mobile. Due to the small number of employees, we no longer maintain a physical workspace, but allow our employees to work remotely. |
Concentrations
Concentrations | 12 Months Ended | |
Dec. 31, 2013 | ||
Concentrations [Abstract] | ' | |
CONCENTRATIONS | ' | |
16 | .CONCENTRATIONS | |
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of trade receivables. The Company performs ongoing credit evaluations of its customers and generally does not require collateral related to its receivables. At December 31, 2013, accounts receivable from one patent licensee comprised approximately 50% of the company’s total accounts receivable-trade. Revenues from twenty-six customers approximated 97% of total revenues for 2013. At December 31, 2012, accounts receivable from three patent licensees comprised approximately 74% of the Company’s total accounts receivable-trade. Revenues from twenty-eight customers approximated 77% of total revenues for 2012. |
Discontinued_Operations_Pursua
Discontinued Operations Pursuant To The Sale of Illume Mobile Assets | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||
DISCONTINUED OPERATIONS PURSUANT TO THE SALE OF ILLUME MOBILE ASSETS | ' | ||||
17. | DISCONTINUED OPERATIONS PURSUANT TO THE SALE OF ILLUME MOBILE ASSETS | ||||
In July 2012, the Company began negotiations with DecisionPoint Systems, Inc. to sell the Illume Mobile assets and operations. On July 31, 2012 (the “Closing Date”), MacroSolve, Inc. (the "Company”) entered into an asset purchase agreement (the “Purchase Agreement”) with DecisionPoint Systems, Inc. (the “Buyer”). Pursuant to the Purchase Agreement, effective on the Closing Date, the Company sold substantially all of the assets relating to its Illume Mobile business, for a purchase price of $948,000, of which $250,000 was paid in cash and $698,000 was paid in the form of 617,284 shares of the Buyer’s common stock (valued at $1.13 per share based on the fair value on closing date). | |||||
The Company has the right to receive an earn-out payment from the Buyer (the “Earn-Out Payment”) of up to $500,000 (of which 50% will be paid in cash, and 50% will be paid in shares of common stock of the Buyer, valued at the last closing price of the Buyer’s common stock on the one year anniversary of the Closing Date). The Earn-Out Payment is incremental based upon net revenues. If net revenue is $3,000,000 or more, the entire Earn-Out Payment will be due. During 2013, the Company determined that the Earn-Out payment was not achieved. | |||||
In connection with the Purchase Agreement, on the Closing Date, the Company and the Buyer entered into a patent license agreement (the “License Agreement”), pursuant to which the Company granted the Buyer a non-exclusive license under a patent held by the Company pertaining to information collection using mobile computers (the “Licensed Patent”) to make, have made, sell, offer for sale or import any product or service which in the absence of the License Agreement would infringe at least one claim of the Licensed Patent (including specifically the Company’s ReForm™ Development Platform) in and into the United States and to practice the Licensed Methods (as defined in the License Agreement), in the United States, during the term of the Licensed Patent. The Buyer agreed to pay the Company a licensing fee/royalty payment of (i) 7.5% of Net Revenues (as defined in the License Agreement) received from the sale of Software Products (as defined in the License Agreement) and/or Licensed Methods, and (ii) 5% of Net Revenues from the sale of Custom Development Services (as defined in the License Agreement). The Company also granted the Buyer an option to purchase a non-exclusive perpetual license under the Licensed Patent at a purchase price of $500,000. The Company has received approximately $97,684 in royalties through December 31, 2013. | |||||
In connection with the Purchase Agreement, on the Closing Date, the Company and the Buyer entered into a non-competition and non-solicitation agreement (the “Non-Competition Agreement”). Pursuant to the Non-Competition Agreement, for a period of three years commencing on the Closing Date, the Company agreed not to engage in activities in the United States and Canada competitive with the products sold by the Company’s Illume Mobile business as of July 31, 2012, and the Buyer agreed not to engage in activities in the United States and Canada competitive with the products sold by the Company (not related to the assets sold pursuant to the Purchase Agreement). The Company also agreed, for a period of three years, commencing on the Closing Date, not to solicit or hire (unless such employee has been terminated by the Buyer) employees of the Buyer, and the Buyer agreed, for a period of three years commencing on the Closing Date, not to solicit employees of the Company (except as contemplated by the Purchase Agreement). | |||||
The following table summarized the book value of the assets sold and liabilities assumed by DecisionPoint Systems, Inc. at the acquisition date. | |||||
Cash received | $ | 250,000 | |||
Stock received | $ | 698,000 | |||
Liabilities assumed by DecisionPoint Systems, Inc. | |||||
Accrued liabilities | $ | 25,000 | |||
Accounts payable | $ | 13,838 | |||
Deferred revenue | $ | 36,971 | |||
Assets sold to DecisionPoint Systems, Inc. | |||||
Prepaid expenses | $ | (14,885 | ) | ||
Property and Equipment, net | $ | (83,507 | ) | ||
Software development costs | $ | (1,019,480 | ) | ||
Accounts receivable | $ | (12,475 | ) | ||
Loss on sales of discontinued operations | $ | (106,538 | ) | ||
The following table summarized the results of discontinued operations for the year ended December 31, 2012. | |||||
Year Ended | |||||
31-Dec-12 | |||||
Revenue | $ | 637,507 | |||
Cost of revenues | $ | 351,654 | |||
Gross profit | $ | 285,853 | |||
General and administrative expense | $ | 2,383,793 | |||
Loss from discontinued operations | $ | (2,097,940 | ) |
Restatement
Restatement | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Restatement [Abstract] | ' | ||||||||||||||||
Restatement | ' | ||||||||||||||||
18 | Restatement | ||||||||||||||||
During the course of the re-audit of 2012, errors were discovered in previously reported asset, liability, equity, revenue and expense accounts, further described as follows: | |||||||||||||||||
a. | In July 2012, the Company recorded $500,000 in unearned income related to the potential earn-out after twelve months associated with the sale of Illume Mobile. The earn-out was not achieved during 2013, so the original balance sheet entry was reversed effective July 31, 2012. | ||||||||||||||||
b. | As part of the sale of Illume Mobile on July 31, 2012, the Company received $750,000 in common stock of DecisionPoint Systems, Inc. with the number of shares determined by a twenty day value-weighted average computation (VWAP). The actual fair market value of the shares on July 31, 2012 was less than the twenty-day VWAP, resulting in a $52,000 reduction in the originally-recorded value of the investment in DecisionPoint Systems, Inc. common stock. | ||||||||||||||||
c. | On December 31, 2012, the Company valued its investment in DecisionPoint based on the VWAP for the fourth quarter. The actual fair market value of the shares on December 31, 2012 was less than the fourth quarter VWAP, resulting in a $34,048 reduction in the originally-reported investment on that date offset by the Other Comprehensive Income account. | ||||||||||||||||
d. | The Company previously recorded $9,909 on December 31, 2012 in liability related to fourth quarter 2012 stock based compensation for shares that were issued in January 2013 and recorded as expense at the recipients’ taxable basis. These shares were restated as issued in 2012, the offsetting liability of $9,909 was reversed, and $23,318 was recognized as an increase in common stock and $23,319 was recognized as additional paid in capital. Also $8,073 of accrued interest was re-classified from long term debt to accrued liabilities. | ||||||||||||||||
e. | The outstanding 2011 Convertible Debenture Series A was determined to have been issued at a discount, resulting in a $72,727 contra liability to the debenture liability. Also additional $1,475,000 was recorded as additional paid-in capital for debt discount recorded for beneficial conversion feature and $1,402,273 was recorded as interest expense for amortization of debt discount. | ||||||||||||||||
f. | In 2012, the Company issued 1,850,000 shares of stock to a financial advisory service firm in exchange for services valued at $168,000. The actual fair market value of the shares on the date issued was $30,950 greater resulting in an increase in additional paid-in capital and G&A expense. | ||||||||||||||||
g. | The Company issued 750,000 shares to another financial advisory service firm in 2012 in exchange for services valued at $45,000. The actual fair market value of the shares on the date issued was $24,000 greater resulting in an increase in additional paid in capital and G&A. | ||||||||||||||||
h. | The Company discovered $12,574 in legal and travel expenses that had been charged to additional paid-in capital as financing expenses which should have been charged to G&A expense and reclassified that amount to expense. | ||||||||||||||||
i. | The Company previously recorded first, second and third quarter 2012 stock based compensation as expense at the recipients’ taxable basis. As a result, an additional $356,369 was recorded as additional paid-in capital and G&A expense. | ||||||||||||||||
j. | The Company issued 7,500,000 options in 2012 which only vest under certain market conditions which have not been met but did not record an expense for the options. Under ASC 718, these unvested options have been recorded with a $94,738 increase in additional paid-in capital and G&A expense. | ||||||||||||||||
k. | Under ASC 815-15, the 2010 Debenture which didn’t convert until March 2012 had a conversion feature which caused the 2011 Debenture Series A, 2011 Debenture Series B instruments to be deemed derivative instruments as well as warrants outstanding at that date. Under ASC 815, the 2012 Debenture Series C is deemed to be derivative instrument due to a reset provision in the conversion price. As a result, the Company recorded $4,028,085 as loss on derivative liability, $4,473,289 as derivative liabilities written off to additional paid-in capital and $445,204 to interest expense for amortization of debt discount. | ||||||||||||||||
l. | The Company previously reported the operations of Illume Mobile as continuing operations from January 1, 2012 through June 30, 2012. Illume Mobile’s 2012 $2,204,478 loss from operations has been restated resulting in a reclassifications of net revenues, cost of revenues, operating expenses and G&A expenses to discontinued operations. | ||||||||||||||||
The restatements as of December 31, 2012 are as follows: | |||||||||||||||||
) e, k | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
As Reported | Adjustments | Restated | |||||||||||||||
Cash | $ | 659,204 | $ | - | $ | 659,204 | |||||||||||
Accounts receivable - trade | 74,056 | - | 74,056 | ||||||||||||||
Prepaid expenses and other | 519,330 | a | (500,000 | ) | 19,330 | ||||||||||||
Net property and equipment | 2,189 | - | 2,189 | ||||||||||||||
Available-for-sale investment - DecisionPoint Systems, Inc. | 579,875 | b, c | (86,048 | ) | 493,827 | ||||||||||||
Intangible assets, net of amortization | 64,227 | 64,227 | |||||||||||||||
TOTAL ASSETS | $ | 1,898,881 | $ | (586,048 | ) | $ | 1,312,833 | ||||||||||
Note Payable - Oklahoma Technology Commercialization Center- Current | $ | 90,000 | $ | - | $ | 90,000 | |||||||||||
Accounts payable - trade and accrued liabilities | 84,062 | d | (1,836 | ) | 82,226 | ||||||||||||
Unearned income | 500,000 | a | (500,000 | ) | - | ||||||||||||
TOTAL LONG-TERM DEBT, less current maturities | 816,752 | d, e, k | (80,798 | ) | 735,954 | ||||||||||||
TOTAL LIABILITIES | 1,490,814 | (582,634 | ) | 908,180 | |||||||||||||
Common stock | 1,798,320 | d | 23,318 | 1,821,638 | |||||||||||||
Additional paid-in capital | 13,230,111 | d, e, f, g, h, i, j, k | 6,490,208 | 19,720,319 | |||||||||||||
Accumulated other comprehensive income | (170,125 | ) | c | (34,048 | ) | (204,173 | ) | ||||||||||
Accumulated deficit | (14,450,239 | ) | (6,482,892 | ) | (20,933,131 | ) | |||||||||||
TOTAL STOCKHOLDER'S EQUITY | 408,067 | (3,414 | ) | 404,653 | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,898,881 | $ | (586,048 | ) | $ | 1,312,833 | ||||||||||
As of December 31, 2012 | |||||||||||||||||
As Reported | Adjustments | Restated | |||||||||||||||
Net revenues | $ | 2,988,393 | l | $ | (554,648 | ) | $ | 2,433,745 | |||||||||
Cost of revenues | 1,305,853 | l | (275,868 | ) | 1,029,985 | ||||||||||||
Gross profit | 1,682,540 | (278,780 | ) | 1,403,760 | |||||||||||||
General and administrative expense | 3,025,071 | d, f, g, h, i, j, l | (1,593,202 | ) | 1,431,869 | ||||||||||||
Loss from operations | (1,342,531 | ) | 1,314,422 | (28,109 | ) | ||||||||||||
Total other expense | (238,906 | ) | (5,787,444 | ) | (6,026,350 | ) | |||||||||||
Net loss from continuing operations | (1,581,437 | ) | (4,473,022 | ) | (6,054,459 | ) | |||||||||||
DISCONTINUED OPERATIONS | (194,608 | ) | b, l | (2,009,870 | (2,204,478 | ) | |||||||||||
NET LOSS | (1,776,045 | ) | (6,482,892 | ) | (8,258,937 | ) | |||||||||||
OTHER COMPREHENSIVE INCOME | (170,125 | ) | c | (34,048 | ) | (204,173 | ) | ||||||||||
COMPREHENSIVE LOSS | $ | (1,946,170 | ) | $ | (6,516,940 | ) | $ | (8,463,110 | ) | ||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Event | ' | |
19 | Subsequent Event | |
On March 7, 2014, the United States Patent and Trademark Office (“USPTO”) sent the Company an office action related to an ex parte reexamination of the Company’s 7,822,816 patent, which rejected all the claims in the patent (the “USPTO Office Action”). The Company has two months to file a request for the patent examiners to reconsider the USPTO Office Action. As a result of the USPTO Office Action, the Company has withdrawn all outstanding litigation relating the ‘816 patent without prejudice, which will allow it to refile such pending suits if the USPTO Office Action is rescinded or the Company’s rights under the ‘816 patent are restored. The Company will be unable to pursue any new lawsuits until the USPTO Office Action is resolved. The Company is presently conferring with its legal counsel and evaluating its options with regard to the USPTO Office Action. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Nature of Operations: | ' | ||||||||||||||||
Nature of Operations: | |||||||||||||||||
MacroSolve, Inc. is an Oklahoma corporation formed on January 17, 1997, under the laws of the State of Oklahoma. We are focused on intellectual property licensing and enforcement of our patent in the mobile app market development space. We also offer consulting services related to mobile app development, marketing and financing of mobile app businesses. In addition, until July 31, 2012, we conducted business as Illume Mobile, engaged in the design, delivery and integration of custom solutions for the application of mobile technology in business processes. | |||||||||||||||||
Reclassifications: | ' | ||||||||||||||||
Reclassifications: | |||||||||||||||||
Certain prior year amounts have been reclassified to conform to the current year presentation. | |||||||||||||||||
Use of Estimates: | ' | ||||||||||||||||
Use of Estimates: | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Concentration of Credit Risk: | ' | ||||||||||||||||
Concentration of Credit Risk: | |||||||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and trade receivables. The Company places its cash with high credit quality financial institutions. At times such cash may be in excess of the FDIC limit. With respect to trade receivables, the Company routinely assesses the financial strength of its customers and, as a consequence, believes that the receivable credit risk exposure is limited. | |||||||||||||||||
Cash Equivalents: | ' | ||||||||||||||||
Cash Equivalents: | |||||||||||||||||
Cash equivalents are represented by operating accounts or money market accounts maintained with insured financial institutions, including all highly-liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of December 31, 2013 and 2012. | |||||||||||||||||
Accounts Receivable and Credit Policies: | ' | ||||||||||||||||
Accounts and Notes Receivable and Credit Policies: | |||||||||||||||||
Trade accounts receivable consist of amounts due from the sale of solution services and software licenses. Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days of receipt of the invoice. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts based on historical collection experience and a review of the current status of trade accounts receivable. At December 31, 2013 and 2012, the Company deems $0 and $5,700 as uncollectible, respectively. Bad debts expense was $0 in 2013 and $141,277 in 2012 of which $135,577 consisted of a customer note receivable that the Company deemed uncollectible following the sale of Illume Mobile. | |||||||||||||||||
On June 1, 2013, one customer issued a promissory note for an amount of $25,268 to the Company, to replace the accounts receivable owed to the Company. As of December 31, 2013, the note receivable has a balance of $12,721, will mature on May 31, 2014 and with interest calculated at the prime interest rate published in the Wall Street Journal plus five percent. | |||||||||||||||||
Property and Equipment: | ' | ||||||||||||||||
Property and Equipment: | |||||||||||||||||
Property and equipment is recorded at cost when acquired. Depreciation is provided principally on the straight-line method over the estimated useful lives of the related assets, which is 3-7 years for equipment, furniture and fixtures, hardware and software. Leasehold improvements are being amortized over a 7 year estimated useful life. A majority of the company’s fixed assets were associated with Illume Mobile, a division which was sold to DecisionPoint Systems, Inc. on July 31, 2012. Property and equipment consists of the following at December 31, 2013 and 2012: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Computer hardware | $ | 3,639 | $ | 16,197 | |||||||||||||
Furniture and fixtures | 598 | 5,454 | |||||||||||||||
4,237 | 21,651 | ||||||||||||||||
Less - accumulated depreciation | 1,586 | 19,462 | |||||||||||||||
$ | 2,651 | $ | 2,189 | ||||||||||||||
Expenditures for maintenance and repairs are charged to expense as incurred, whereas expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. | |||||||||||||||||
Marketable Securities: | ' | ||||||||||||||||
Marketable Securities: | |||||||||||||||||
All marketable securities are classified as available-for-sale securities. Available-for-sale securities are carried at fair value with resulting unrealized gains and losses, reported as a component of accumulated other comprehensive loss. | |||||||||||||||||
Long-Lived Assets: | ' | ||||||||||||||||
Long-Lived Assets: | |||||||||||||||||
The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10-35, “Impairment or Disposal of Long-lived Assets”. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were incurred during the periods ended December 31, 2013 and 2012. | |||||||||||||||||
Derivative Financial Instruments: | ' | ||||||||||||||||
Derivative Financial Instruments: | |||||||||||||||||
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a Black-Scholes option pricing model, assuming maximum value, in accordance with ASC 815-15 “Derivative and Hedging” to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. | |||||||||||||||||
Beneficial Conversion Features: | ' | ||||||||||||||||
Beneficial Conversion Features: | |||||||||||||||||
The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative fair value of detachable instruments included in the financing transaction, if any, to the fair value of the common shares at the commitment date to be received upon conversion. | |||||||||||||||||
Fair Value of Financial Instruments: | ' | ||||||||||||||||
Fair Value of Financial Instruments: | |||||||||||||||||
The Company measures its financial assets and liabilities in accordance with the requirements of FASB ASC 820, “Fair Value Measurements and Disclosures”. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. | |||||||||||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. | |||||||||||||||||
Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | |||||||||||||||||
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of December 31, 2013 and 2012: | |||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-13 | |||||||||||||||||
Derivative liability | - | - | $ | 0 | $ | 0 | |||||||||||
Available-for-sale securities | $ | 371,402 | - | - | $ | 371,402 | |||||||||||
31-Dec-12 | |||||||||||||||||
Derivative liability | - | - | $ | 0 | $ | 0 | |||||||||||
Available-for-sale securities | $ | 493,827 | - | - | $ | 493,827 | |||||||||||
Revenue Recognition and Unearned Revenue: | ' | ||||||||||||||||
Revenue Recognition and Unearned Revenue: | |||||||||||||||||
The Company recognizes revenue only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured. Revenues from intellectual property licenses are recognized upon issuance of the license. When intellectual property licenses are received under a contingent fee agreement with the law firm of Antonelli, Harrington & Thompson LLP, the applicable contingent legal expense is recorded as a cost of sale. In the event a non-exclusive intellectual property license is granted within the scope of a contracted app development project, ten percent (10%) of the contract amount is deemed to be payment for the license. Revenue from software product licensing is recognized ratably over the license period. Unearned income associated with Illume Mobile contracts of $36,971 was transferred to DecisionPoint Systems as part of the Illume Mobile asset sale in July 2012. | |||||||||||||||||
Solution services revenues, including advisory services, consist primarily of professional services contracted to third party customers or clients under contract for specific projects. Contracted projects that are fixed price are accounted for under the percentage-of-completion method of accounting. Revenue from contracted projects that are for provision of services is recognized at the time the service is provided. The Company no longer offers solutions services after the sale of Illume Mobile in July 2012. | |||||||||||||||||
Software Development Costs: | ' | ||||||||||||||||
Software Development Costs: | |||||||||||||||||
The Company accounts for software development costs in accordance with ASC 985-20, “Costs of Computer Software to be Sold, Leased, or Otherwise Marketed”. Costs incurred prior to the establishment of technological feasibility are expensed as incurred as research and development costs. Costs incurred after establishing technological feasibility and before the product is released for sale to customers are capitalized. These costs are amortized over three years and are reviewed for impairment at each period end. The Company sold a total of $1,213,550 in gross capitalized software development costs and associated $194,070 in accumulated amortization, or a net of $1,019,480, to DecisionPoint Systems in July 2012. Amortization expense in 2012 totaled $500,910 and consisted of $161,037 in Illume Mobile development costs, $2,814 in patent costs and $337,059 related to Mobiz360, including a one-time amortization of $293,054 net capitalized development costs, In May 2012, MoBiz360, an incomplete prototype website marketplace for an amount of $337,059, was conveyed to Clint Parr, our former president and CEO, as consideration for an undetermined equity interest in Mr. Parr’s new company. As of December 31, 2013, Mr. Parr’s new company is still not operational. The net value of MoBiz360 for an amount of $293,054 was written off as amortization expense during the year ended December 31, 2012. The Company is not presently developing software. | |||||||||||||||||
Income Taxes Costs: | ' | ||||||||||||||||
Income Taxes: | |||||||||||||||||
The Company accounts for income taxes utilizing ASC 740, “Income Taxes” (SFAS No. 109). ASC 740 requires the measurement of deferred tax assets for deductible temporary differences and operating loss carry forwards, and of deferred tax liabilities for taxable temporary differences. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. The effects of future changes in tax laws or rates are not included in the measurement. The Company recognizes the amount of taxes payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences of events and transactions that have been recognized in the Company’s financial statements or tax returns. The Company currently has substantial net operating loss carry forwards. The Company has recorded a 100% valuation allowance against net deferred tax assets due to uncertainty of their ultimate realization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | |||||||||||||||||
Employee Stock-Based Compensation: | ' | ||||||||||||||||
Employee Stock-Based Compensation: | |||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation-Stock Compensation”. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant-date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. | |||||||||||||||||
Non-Employee Stock-Based Compensation: | ' | ||||||||||||||||
Non-Employee Stock-Based Compensation: | |||||||||||||||||
The Company accounts for stock-based compensation in accordance with the provision of ASC 505, “Equity Based Payments to Non-Employees” (“ASC 505”), Share Based Payments to Non-Employees, and ASC 505 which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. | |||||||||||||||||
Related Parties: | ' | ||||||||||||||||
Related Parties: | |||||||||||||||||
A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. | |||||||||||||||||
Earnings or Loss per Share: | ' | ||||||||||||||||
Earnings or Loss per Share: | |||||||||||||||||
The Company accounts for earnings per share pursuant to ASC 260, Earnings per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. As there was a net loss for the periods, basic and diluted loss per share is the same for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
Management does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company's financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of property and equipment | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Computer hardware | $ | 3,639 | $ | 16,197 | |||||||||||||
Furniture and fixtures | 598 | 5,454 | |||||||||||||||
4,237 | 21,651 | ||||||||||||||||
Less - accumulated depreciation | 1,586 | 19,462 | |||||||||||||||
$ | 2,651 | $ | 2,189 | ||||||||||||||
Schedule of fair value, assets and liabilities | ' | ||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-13 | |||||||||||||||||
Derivative liability | - | - | $ | 0 | $ | 0 | |||||||||||
Available-for-sale securities | $ | 371,402 | - | - | $ | 371,402 | |||||||||||
31-Dec-12 | |||||||||||||||||
Derivative liability | - | - | $ | 0 | $ | 0 | |||||||||||
Available-for-sale securities | $ | 493,827 | - | - | $ | 493,827 | |||||||||||
Oklahoma_Technology_Commercial1
Oklahoma Technology Commercialization Center Note Payable (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Summary of maturities of long-term debt | ' | ||||
2014 | $ | 112,500 | |||
2015 | $ | 20,000 | |||
Total | $ | 132,500 |
Stock_Options_Tables
Stock Options (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Schedule of stock option activity | ' | ||||||||
Stock Options | |||||||||
Weighted | |||||||||
Options | Average | ||||||||
Exercise Price | |||||||||
Outstanding – December 31, 2011 | 11,829,507 | $ | 0.52 | ||||||
Granted | 27,700,000 | $ | 0.26 | ||||||
Forfeited or Expired | (26,595,804 | ) | $ | 0.32 | |||||
Outstanding – December 31, 2012 | 12,933,703 | $ | 0.36 | ||||||
Exercisable – December 31, 2012 | 5,394,503 | $ | 0.51 | ||||||
Granted | - | $ | 0 | ||||||
Forfeited or Expired | (63,120 | ) | $ | 0.6 | |||||
Outstanding – December 31, 2013 | 12,870,584 | $ | 0.37 | ||||||
Exercisable – December 31, 2013 | 5,370,584 | $ | 0.52 | ||||||
Schedule of nonvested options and restricted stock | ' | ||||||||
Stock Options | |||||||||
Nonvested Shares | Options | ||||||||
Nonvested - Beginning of Year 2012 | 6,028,450 | ||||||||
2012 Granted | 27,700,000 | ||||||||
2012 Vested | (211,600 | ) | |||||||
2012 Forfeited | (25,977,650 | ) | |||||||
Nonvested – End of Year 2012 | 7,539,200 | ||||||||
2013 Granted | - | ||||||||
2013 Vested | (39,200 | ) | |||||||
2013 Forfeited | ( - | ) | |||||||
Nonvested- End of Year 2013 | 7,500,000 |
Common_Stock_Warrants_Tables
Common Stock Warrants (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Common Stock Warrants [Abstract] | ' | ||||||||||||||||
Schedule of outstanding warrant | ' | ||||||||||||||||
Year Issued | Number | Remaining Contractual Life in Years | Number Currently Exercisable | Weighted Average | |||||||||||||
Outstanding | Exercise | ||||||||||||||||
Price | |||||||||||||||||
2009 | 21,682,372 | 0.6 | 21,682,372 | $ | 0.1 | ||||||||||||
2010 | 10,236,227 | 0.9 | 10,236,227 | $ | 0.1 | ||||||||||||
2011 | 29,680,086 | 3.0 | 29,680,086 | $ | 0.10 | ||||||||||||
2012 | 2,500,000 | 4 | 2,500,000 | $ | 0.15 | ||||||||||||
Total | 64,098,685 | 1.9 | 64,098,685 | $ | 0.1 |
Derivative_Liabilities_Tables
Derivative Liabilities (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Derivative Liabilities [Abstract] | ' | ||||
Summarizes derivative liabilities | ' | ||||
Balance at December 31, 2011 | $ | 0 | |||
Record derivative liability as debt discount | 445,204 | ||||
Change in fair value of derivative liability | 4,028,085 | ||||
Settlement of derivative liability due to conversion of related notes | (4,473,289 | ) | |||
Balance at December 31, 2012 | $ | 0 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Schedule of components of the Company's net deferred taxes | ' | ||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Net operating loss carry-forwards | $ | 4,616,080 | $ | 4,619,343 | |||||
Valuation allowance | (4,616,080 | ) | (4,616,343 | ) | |||||
$ | -0- | $ | -0- | ||||||
Discontinued_Operations_Pursua1
Discontinued Operations Pursuant To The Sale of Illume Mobile Assets (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||
Schedule of disposal groups Including discontinued operations, balance sheet | ' | ||||
Cash received | $ | 250,000 | |||
Stock received | $ | 698,000 | |||
Liabilities assumed by DecisionPoint Systems, Inc. | |||||
Accrued liabilities | $ | 25,000 | |||
Accounts payable | $ | 13,838 | |||
Deferred revenue | $ | 36,971 | |||
Assets sold to DecisionPoint Systems, Inc. | |||||
Prepaid expenses | $ | (14,885 | ) | ||
Property and Equipment, net | $ | (83,507 | ) | ||
Software development costs | $ | (1,019,480 | ) | ||
Accounts receivable | $ | (12,475 | ) | ||
Loss on sales of discontinued operations | $ | (106,538 | ) | ||
Schedule of disposal groups Including discontinued operations, income statement | ' | ||||
Year Ended | |||||
31-Dec-12 | |||||
Revenue | $ | 637,507 | |||
Cost of revenues | $ | 351,654 | |||
Gross profit | $ | 285,853 | |||
General and administrative expense | $ | 2,383,793 | |||
Loss from discontinued operations | $ | (2,097,940 | ) |
Restatement_Tables
Restatement (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Restatement [Abstract] | ' | ||||||||||||||||
Schedule of restated financial statements | ' | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
As Reported | Adjustments | Restated | |||||||||||||||
Cash | $ | 659,204 | $ | - | $ | 659,204 | |||||||||||
Accounts receivable - trade | 74,056 | - | 74,056 | ||||||||||||||
Prepaid expenses and other | 519,330 | a | (500,000 | ) | 19,330 | ||||||||||||
Net property and equipment | 2,189 | - | 2,189 | ||||||||||||||
Available-for-sale investment - DecisionPoint Systems, Inc. | 579,875 | b, c | (86,048 | ) | 493,827 | ||||||||||||
Intangible assets, net of amortization | 64,227 | 64,227 | |||||||||||||||
TOTAL ASSETS | $ | 1,898,881 | $ | (586,048 | ) | $ | 1,312,833 | ||||||||||
Note Payable - Oklahoma Technology Commercialization Center- Current | $ | 90,000 | $ | - | $ | 90,000 | |||||||||||
Accounts payable - trade and accrued liabilities | 84,062 | d | (1,836 | ) | 82,226 | ||||||||||||
Unearned income | 500,000 | a | (500,000 | ) | - | ||||||||||||
TOTAL LONG-TERM DEBT, less current maturities | 816,752 | d, e, k | (80,798 | ) | 735,954 | ||||||||||||
TOTAL LIABILITIES | 1,490,814 | (582,634 | ) | 908,180 | |||||||||||||
Common stock | 1,798,320 | d | 23,318 | 1,821,638 | |||||||||||||
Additional paid-in capital | 13,230,111 | d, e, f, g, h, i, j, k | 6,490,208 | 19,720,319 | |||||||||||||
Accumulated other comprehensive income | (170,125 | ) | c | (34,048 | ) | (204,173 | ) | ||||||||||
Accumulated deficit | (14,450,239 | ) | (6,482,892 | ) | (20,933,131 | ) | |||||||||||
TOTAL STOCKHOLDER'S EQUITY | 408,067 | (3,414 | ) | 404,653 | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,898,881 | $ | (586,048 | ) | $ | 1,312,833 | ||||||||||
As of December 31, 2012 | |||||||||||||||||
As Reported | Adjustments | Restated | |||||||||||||||
Net revenues | $ | 2,988,393 | l | $ | (554,648 | ) | $ | 2,433,745 | |||||||||
Cost of revenues | 1,305,853 | l | (275,868 | ) | 1,029,985 | ||||||||||||
Gross profit | 1,682,540 | (278,780 | ) | 1,403,760 | |||||||||||||
General and administrative expense | 3,025,071 | d, f, g, h, i, j, l | (1,593,202 | ) | 1,431,869 | ||||||||||||
Loss from operations | (1,342,531 | ) | 1,314,422 | (28,109 | ) | ||||||||||||
Total other expense | (238,906 | ) | e, k | (5,787,444 | ) | (6,026,350 | ) | ||||||||||
Net loss from continuing operations | (1,581,437 | ) | (4,473,022 | ) | (6,054,459 | ) | |||||||||||
DISCONTINUED OPERATIONS | (194,608 | ) | b, l | (2,009,870 | ) | (2,204,478 | ) | ||||||||||
NET LOSS | (1,776,045 | ) | (6,482,892 | ) | (8,258,937 | ) | |||||||||||
OTHER COMPREHENSIVE INCOME | (170,125 | ) | c | (34,048 | ) | (204,173 | ) | ||||||||||
COMPREHENSIVE LOSS | $ | (1,946,170 | ) | $ | (6,516,940 | ) | $ | (8,463,110 | ) | ||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Summary of property and equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment,Gross | $4,237 | $21,651 |
Less - accumulated depreciation | 1,586 | 19,462 |
Net property and equipment | 2,651 | 2,189 |
Computer Hardware | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment,Gross | 3,639 | 16,197 |
Furniture and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment,Gross | $598 | $5,454 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of fair value assets and liabilities(Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 11, 2012 | Feb. 17, 2012 | Dec. 31, 2011 |
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Derivative liability | $0 | $0 | $237,500 | $195,000 | $0 |
Available-for-sale Securities | 371,402 | 493,827 | ' | 493,827 | ' |
Level 1 | ' | ' | ' | ' | ' |
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Derivative liability | ' | ' | ' | ' | ' |
Available-for-sale Securities | -371,402 | 493,827 | ' | ' | ' |
Level 2 | ' | ' | ' | ' | ' |
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Derivative liability | ' | ' | ' | ' | ' |
Available-for-sale Securities | ' | ' | ' | ' | ' |
Level 3 | ' | ' | ' | ' | ' |
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ' | ' | ' |
Derivative liability | 0 | 0 | ' | ' | ' |
Available-for-sale Securities | ' | ' | ' | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Detail Textuals) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 01, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | 31-May-12 | Jul. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Patents | Mobiz 360 | Mobiz 360 | Decision Point System | Illume Mobile Development | Illume Mobile Assets and Operations | Illume Mobile Assets and Operations | Hardware | Hardware | Furniture and fixtures | Furniture and fixtures | Office equipment | Office equipment | Software | Software | Leasehold improvements | ||||
Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | ||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation method | 'Straight-line method | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Lives (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | '3 years | '7 years | '3 years | '7 years | '3 years | '7 years | '3 years | ' |
Period of threshold limit for payment | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of contract amount for payment for license | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of valuation allowance | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bad debt expense | ' | $141,277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years |
Unearned income | ' | ' | ' | ' | ' | ' | ' | ' | 135,577 | 36,971 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized computer software, gross | ' | ' | ' | ' | ' | ' | 1,213,550 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expenses of capitalized computer software | ' | 500,910 | ' | 2,814 | 337,059 | ' | 194,070 | 161,037 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized computer software, net | ' | ' | ' | ' | 293,054 | 337,059 | 1,019,480 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of capitalized computer software | ' | 337,059 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | ' | ' | ' | ' | 293,054 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Uncollectibles | 0 | 5,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of promissory notes | ' | ' | 25,268 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Receivable | $12,721 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | 31-May-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_in_Decisionpoint_Sy
Investment in Decisionpoint Systems, Inc. (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investment [Line Items] | ' | ' | ' |
Unrealized holding loss arising during the period | ' | ($195,763) | ($204,173) |
DecisionPoint Systems, Inc | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Cash received from sale of assets | 250,000 | ' | ' |
Number of share received | 617,284 | ' | ' |
Nature of transaction | 'Company sold the Illume Mobile assets and operations to DecisionPoint Systems, Inc. | ' | ' |
Fair value of shares | 698,000 | 324,190 | 493,827 |
Unrealized holding loss arising during the period | ' | $169,637 | $204,173 |
Investment_in_Medl_Mobile_Hold
Investment in Medl Mobile Holdings, Inc. (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 08, 2013 | Dec. 31, 2013 | |
MEDL Mobile Holdings, Inc | MEDL Mobile Holdings, Inc | |||
Investment [Line Items] | ' | ' | ' | ' |
Value of share received | ' | ' | $50,000 | ' |
Number of share received | ' | ' | 2,500,000 | ' |
Number of shares issued | ' | ' | 147,692 | ' |
Equity issuance price per share | ' | ' | $0.34 | ' |
Nature of transaction | ' | ' | 'Company entered into an agreement with MEDL Mobile Holdings, Inc. (MEDL) to bring forth a program that offers access to the Company's 816' patent to app developers | ' |
Shares valued at fair value | 324,190 | 493,827 | 58,338 | 39,537 |
Unrealized holding loss arising during the period | ($195,763) | ($204,173) | ' | $18,801 |
Share price | ' | ' | $0.02 | ' |
Investment_in_Endexx_Corporati
Investment in Endexx Corporation (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 05, 2013 | Dec. 31, 2013 | |
ENDEXX CORPORATION | ENDEXX CORPORATION | |||
Investment [Line Items] | ' | ' | ' | ' |
Value of share received | ' | ' | $15,000 | ' |
Number of share received | ' | ' | 125,000 | ' |
Share price | ' | ' | $0.12 | ' |
Nature of transaction | ' | ' | 'Company entered into six month agreement with Endexx Corporation (EDXC) to coordinate business planning, investor interests and intellectual property for a mobile app venture that uniquely addresses advertising market analytics. | ' |
Fair value of shares | ' | ' | 15,000 | 7,675 |
Unrealized holding loss arising during the period | ($195,763) | ($204,173) | ' | $7,325 |
Line_of_Credit_Details
Line of Credit (Details) (USD $) | 0 Months Ended | 12 Months Ended |
Sep. 30, 2012 | Dec. 31, 2013 | |
Interest Rate Calculation Greater Of [Abstract] | ' | ' |
Strike price of warrants | ' | 0.1 |
Line of credit | ' | ' |
Interest Rate Calculation Greater Of [Abstract] | ' | ' |
Advancing term loan | ' | $100,000 |
Description of variable rate basis | ' | '$100,000 |
Basis spread on variable rate | ' | 1.00% |
Interest payable on loan interest percentage | 4.25% | 5.75% |
Commitment fee amount | ' | 3,000 |
Term period of warrant | ' | '5 years |
Purchase of stock | ' | $100,000 |
Strike price of warrants | ' | 0.1 |
Oklahoma_Technology_Commercial2
Oklahoma Technology Commercialization Center Note Payable (Details) (USD $) | Dec. 31, 2013 |
Maturities of Long-term Debt [Abstract] | ' |
2014 | $112,500 |
2015 | 20,000 |
Total | $132,500 |
Note_Payable_Related_Party_Det
Note Payable - Related Party (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 23, 2012 | |
Kendall Carpenter [Member] | Kendall Carpenter [Member] | Kendall Carpenter [Member] | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Deferred compensation | ' | $9,000 | $13,500 | $150,000 |
Interest rate, notes payable | ' | 6.00% | 6.00% | 6.00% |
Accrued interest on notes payable | $489 | ' | ' | ' |
Maturity date | 31-May-14 | 31-Dec-14 | 30-Sep-14 | ' |
Note_Payable_Shareholder_Detai
Note Payable - Shareholder (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | |
Director | New Promissory Notes | New Promissory Notes | Director [Member] | Director [Member] | Director [Member] | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Notes payable | ' | ' | ' | ' | $533,681 | $533,681 | $169,306 |
Short - term notes advanced by multiple directors | ' | ' | ' | ' | 778,300 | ' | ' |
Interest rate, notes payable | ' | ' | 6.00% | ' | 12.00% | ' | ' |
Number of directors | ' | 4 | ' | ' | ' | ' | ' |
Re-classification of shareholders loan from long term to convertible debt | ' | 320,000 | ' | ' | ' | ' | ' |
Repayments of shareholder loan | ' | 115,000 | ' | ' | ' | ' | ' |
Re-classification of accrued interest to note payable - shareholders | ' | 21,075 | ' | ' | ' | ' | ' |
Long term notes payable | 533,681 | 533,681 | ' | ' | ' | ' | ' |
Percentage of patent settlement license fees | ' | ' | 75.00% | ' | ' | ' | ' |
Maturity date | 31-May-14 | ' | 1-Jan-15 | ' | 30-Sep-12 | ' | ' |
Accrued interest on notes payable | $489 | ' | $40,092 | $8,177 | ' | ' | ' |
Convertible_Debentures_Details
Convertible Debentures (Details) | 1 Months Ended | 12 Months Ended | 13 Months Ended | 12 Months Ended | 13 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||
Feb. 17, 2012 | Jul. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2011 | Mar. 11, 2012 | Dec. 31, 2011 | Apr. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2011 | Mar. 01, 2012 | Nov. 30, 2010 | Jul. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 23, 2012 | Feb. 17, 2012 | Feb. 17, 2012 | |
USD ($) | Investors | USD ($) | USD ($) | Investors | USD ($) | USD ($) | Convertible Debenture Series 2011 Plus | Warrant A | Warrant A | Warrant A | Warrant B | Warrant B | Warrant B | Warrant B | Warrant B | Warrant C | Warrant C | Warrant C | |
Convertible Debenture Series 2011 Plus | Convertible Debenture Series 2011 Plus | Convertible Debenture Series 2011 Plus | Convertible Debenture Series 2010 Plus | Convertible Debenture Series 2010 Plus | Convertible Debenture Series 2011 Plus | Convertible Debenture Series 2011 Plus | Convertible Debenture Series 2011 Plus | Convertible Debenture Series 2012 Plus | Convertible Debenture Series 2012 Plus | Convertible Debenture Series 2012 Plus | |||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | |||||||||
Investors | Investors | Director | |||||||||||||||||
Investment of Directors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,675,000 | ' | $50,000 | $896,161 | ' | ' | ' | $180,000 | ' |
Debentures Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | 2.00% | 12.00% | ' | ' | ' | 8.00% | ' |
Debentures Meturity Date | ' | ' | 31-May-14 | ' | ' | ' | ' | ' | ' | ' | 31-Dec-16 | ' | 31-Dec-15 | 31-Dec-16 | ' | ' | ' | 31-Dec-19 | ' |
Debt instrument shares purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95,493 | ' | ' | ' | ' | ' | ' |
Debt Conversion Converted Instrument Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.26 | ' | ' | ' | ' | ' | ' |
Debt instrument amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 18,182 | 1,402,273 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument discount | ' | ' | 54,545 | 72,727 | ' | ' | ' | ' | 54,545 | 72,727 | 1,475,000 | ' | ' | ' | ' | ' | 445,204 | ' | ' |
Debt conversion, converted instrument, amount | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | ' | ' | ' | 846,161 | ' | ' | 500,000 | 320,000 | ' |
Number of common stock called by warrants | ' | ' | ' | ' | 1,575,000 | ' | ' | 16,831,553 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount of debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' | ' | 200.00% | ' | ' | ' | ' | ' |
Debt conversion price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 0.10 |
Debt conversion settlement value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 163,145 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion settlement in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,167 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion settlement shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 870,543 | ' | ' | 459,412 | ' | ' | ' | 2,500,000 | ' |
Debetures converted into shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 940,734 | ' | 16,923,227 | ' | ' | ' | 5,790,452 | ' |
Accrued interest on converted debentures | ' | ' | ' | ' | ' | ' | ' | ' | 30,429 | 18,396 | 179,312 | 1,285 | ' | 45,941 | 13,216 | 7,200 | 7,242 | ' | ' |
Total numbers of warrants attached with convertible debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,475,827 | ' | ' | ' | ' | ' | ' | 2,500,000 | ' |
Percentage of Conversion Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 200.00% | ' | ' | ' | ' | ' | ' |
Number of trading period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 days | ' | '5 days | '5 days | ' | ' | ' | ' | ' |
Shares issued for conversion of debenture and warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 163,145 | ' | ' | 50,000 | ' | ' | ' | 500,000 | ' |
Number of investors elected to convert debentures into common stock | ' | 18 | ' | ' | 15 | ' | ' | ' | ' | ' | 16 | ' | ' | 19 | ' | ' | ' | 4 | ' |
Accrued interest on notes payable | ' | ' | 489 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | 195,000 | ' | 0 | 0 | ' | 237,500 | 0 | ' | 683,602 | ' | ' | ' | ' | ' | 663,160 | ' | 536,528 | ' | ' |
Convertible debenture ,Conversion price, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The convertible debenture is convertible at a conversion price equal to the weighted average price for the three-day trading period before the notice of conversion. | ' |
Loss on derivatives | 42,500 | ' | 0 | 4,028,085 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,324 | ' | ' |
Convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,961,614 | ' | ' | ' | ' | ' |
Stock_Options_Schedule_of_stoc
Stock Options - Schedule of stock option activity (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
18-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options | ' | ' | ' | ' |
Outstanding - Beginning Balance | ' | 12,933,703 | 11,829,507 | ' |
Granted | 200,000 | ' | 27,700,000 | ' |
Forfeited or Expired | ' | -63,120 | -26,595,804 | ' |
Outstanding - Ending balance | ' | 12,870,584 | 12,933,703 | ' |
Exercisable - Ending balance | ' | 5,370,584 | 5,394,503 | 5,801,057 |
Stock Options Weighted Average Exercise Price | ' | ' | ' | ' |
Outstanding - Beginning balance | ' | $0.36 | $0.52 | ' |
Exercisable - Beginning balance | ' | $0.51 | $0.52 | ' |
Granted | ' | $0 | $0.26 | ' |
Forfeited or Expired | ' | $0.60 | $0.32 | ' |
Outstanding - Beginning balance | ' | $0.37 | $0.36 | ' |
Exercisable - Ending balance | ' | $0.52 | $0.51 | ' |
Employee Stock Plans | Stock Options | ' | ' | ' | ' |
Stock Options | ' | ' | ' | ' |
Outstanding - Beginning Balance | ' | ' | ' | 11,829,507 |
Outstanding - Ending balance | ' | ' | 15,441,703 | 11,829,507 |
Exercisable - Ending balance | ' | ' | 5,394,503 | 5,801,057 |
Stock Options Weighted Average Exercise Price | ' | ' | ' | ' |
Outstanding - Beginning balance | ' | ' | ' | $0.52 |
Exercisable - Beginning balance | ' | ' | ' | $0.52 |
Outstanding - Beginning balance | ' | ' | $0.35 | $0.52 |
Exercisable - Ending balance | ' | ' | $0.51 | $0.52 |
Stock_Options_Summary_of_statu
Stock Options - Summary of status of the company's nonvested options and restricted stock (Details 1) (USD $) | 1 Months Ended | 12 Months Ended | |||
18-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock Plans | Employee Stock Plans | ||||
Stock Options | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' | ' | ' |
Nonvested- Beginning of Year | ' | 7,539,200 | 6,028,450 | 10,047,200 | 6,028,450 |
Granted | 200,000 | ' | 27,700,000 | ' | ' |
Vested | ' | -39,200 | -211,600 | ' | ' |
Forfeited | ' | ' | -25,977,650 | ' | ' |
Nonvested-End of year | ' | 7,500,000 | 7,539,200 | 10,047,200 | 6,028,450 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' | ' | ' |
Nonvested - Beginning of Year | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | ' | ' |
Vested | ' | ' | ' | ' | ' |
Forfeited | ' | ' | ' | ' | ' |
Nonvested- End of year | ' | ' | ' | ' | ' |
Stock_Options_Details_Textual
Stock Options (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |
18-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | |
Director | |||
Stock Options (Textual) | ' | ' | ' |
Number of options granted | 200,000 | ' | 27,700,000 |
Number of options vested. | ' | -39,200 | -211,600 |
Number of options forfeited | ' | -63,120 | -26,595,804 |
Number of directors | ' | ' | 4 |
Expiration Date | 18-May-18 | ' | ' |
Exercise price of options granted | ' | $0 | $0.26 |
Stock based compensation | ' | $140,000 | $779,168 |
Weighted average grant date fair value | ' | ' | ' |
Weighted-average remaining contractual term of options exercisable | ' | ' | '2 years |
Unrecognized compensation cost | ' | 290,938 | 380,958 |
Weighted-average remaining vesting period | ' | '3 years | ' |
Strike price 2.21 | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Number of options vested. | ' | 39,200 | 49,600 |
Expiration Date | ' | 11-Sep-14 | 11-Sep-14 |
Exercise price of options granted | ' | $2.21 | $2.21 |
Strike price 0.10 | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Number of options vested. | ' | ' | 160,000 |
Expiration Date | ' | ' | 18-May-17 |
Exercise price of options granted | ' | ' | $0.10 |
Strike price 0.21 | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Number of options vested. | ' | ' | 2,000 |
Expiration Date | ' | ' | 26-Apr-17 |
Exercise price of options granted | ' | ' | $0.21 |
Strike price 0.60 | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Number of options forfeited | ' | 63,120 | ' |
Exercise price of options granted | ' | $0.60 | ' |
Minimum | Strike price 0.60 | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Expiration Date | ' | 1-Jan-13 | ' |
Maximum | Strike price 0.60 | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Expiration Date | ' | 1-Jul-13 | ' |
Former director | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Number of options forfeited | ' | ' | 280,000 |
Exercise price of options granted | ' | ' | $0.50 |
Exercise price, lower range | ' | ' | $0.03 |
Exercise price, upper range | ' | ' | $0.60 |
Former director | Minimum | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Expiration Date | ' | ' | 11-Sep-14 |
Former director | Maximum | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Expiration Date | ' | ' | 25-Apr-17 |
Former employee | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Number of options forfeited | ' | ' | 395,804 |
Expiration Date | ' | ' | 18-May-18 |
Exercise price, lower range | ' | ' | $0.21 |
Exercise price, upper range | ' | ' | $2.50 |
Former employee | Minimum | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Expiration Date | ' | ' | 11-Sep-14 |
Former employee | Maximum | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Expiration Date | ' | ' | 25-Apr-17 |
Former officers and employees | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Number of options forfeited | ' | ' | 22,720,000 |
Expiration Date | ' | ' | 6-Oct-17 |
Former officers and employees | Maximum | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Expiration Date | ' | ' | 31-Dec-15 |
Exercise price, lower range | ' | ' | $0.13 |
Exercise price, upper range | ' | ' | $2.50 |
Employee Stock Option [Member] | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Stock based compensation | ' | 90,020 | 94,738 |
Aggregate intrinsic value | ' | $0 | $0 |
Weighted-average remaining contractual term of options exercisable | ' | '2 years 10 months 24 days | '3 years 8 months 12 days |
Employee Stock Option [Member] | Director | ' | ' | ' |
Stock Options (Textual) | ' | ' | ' |
Number of options granted | 40,000 | ' | ' |
Number of directors | 5 | ' | ' |
Expiration Date | 18-May-17 | ' | ' |
Exercise price of options granted | 0.1 | ' | ' |
Exercise price, lower range | 0.125 | ' | ' |
Exercise price, upper range | 0.4 | ' | ' |
Stock based compensation | ' | $0 | $0 |
Common_Stock_Warrants_Informat
Common Stock Warrants - Information about outstanding warrants (Details) | 12 Months Ended | |
Dec. 31, 2013 | Feb. 17, 2012 | |
Class of Warrant or Right [Line Items] | ' | ' |
Number Outstanding | 64,098,685 | 2,500,000 |
Remaining Contractual Life in Years | '1 year 10 months 24 days | ' |
Number Currently Exercisable | 64,098,685 | ' |
Weighted Average Exercise Price | 0.1 | ' |
Warrant issued in 2009 | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number Outstanding | 21,682,372 | ' |
Remaining Contractual Life in Years | '7 months 6 days | ' |
Number Currently Exercisable | 21,682,372 | ' |
Weighted Average Exercise Price | 0.1 | ' |
Warrant issued in 2010 | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number Outstanding | 10,236,227 | ' |
Remaining Contractual Life in Years | '10 months 24 days | ' |
Number Currently Exercisable | 10,236,227 | ' |
Weighted Average Exercise Price | 0.1 | ' |
Warrant issued in 2011 | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number Outstanding | 29,680,086 | ' |
Remaining Contractual Life in Years | '3 years | ' |
Number Currently Exercisable | 29,680,086 | ' |
Weighted Average Exercise Price | 0.1 | ' |
Warrant issued in 2012 | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Number Outstanding | 2,500,000 | ' |
Remaining Contractual Life in Years | '4 years | ' |
Number Currently Exercisable | 2,500,000 | ' |
Weighted Average Exercise Price | 0.15 | ' |
Common_Stock_Warrants_Detail_T
Common Stock Warrants (Detail Textuals) (USD $) | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Apr. 30, 2011 | Dec. 31, 2013 | Mar. 31, 2012 | Feb. 29, 2012 | |
Line of Credit [Member] | Debenture Series 2012 Plus Series C Warrants | Debenture Series 2012 Plus Series C Warrants | |||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of warrants issued | ' | 5,000,000 | ' | ' | ' | ' | ' |
Class of warrant or right expired | ' | 8,666,680 | ' | ' | ' | ' | ' |
Fair value of warrant cancelled | $237,500 | ' | ' | ' | ' | ' | ' |
Number of common stock called by warrants | ' | ' | ' | 1,575,000 | ' | 2,500,000 | 2,500,000 |
Strike price of warrants | ' | ' | 0.1 | ' | 0.1 | 0.15 | 0.1 |
Shareholders_Equity_Detail
Shareholders' Equity (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 08, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
MEDL Mobile Holdings, Inc | MEDL Mobile Holdings, Inc | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||
Private Sale of Stock [Member] | Employees and Directors [Member] | Employees and Third Party Consultants [Member] | Convertible notes [Member] | |||||
Common Stock issued for conversion of debt and accrued interest | ' | $3,187,491 | ' | ' | ' | ' | ' | $2,971,161 |
Common Stock issued for conversion of debt and accrued interest (in shares) | ' | ' | ' | ' | ' | ' | ' | 41,815,921 |
Accrued interest on notes payable | 489 | ' | ' | ' | ' | ' | ' | 216,330 |
Compensation expense related to stock awards | 140,000 | 500,718 | ' | ' | ' | 140,000 | 779,168 | ' |
Compensation expense related to stock awards (in shares) | ' | ' | ' | ' | ' | 6,100,690 | 15,523,747 | ' |
Cancellation of shares | ' | -627 | ' | ' | ' | ' | 627 | ' |
Cancellation of shares (in shares) | ' | ' | ' | ' | ' | ' | 62,666 | ' |
Number of shares of restricted common stock granted | ' | ' | 2,500,000 | ' | 2,500,000 | ' | ' | ' |
Number of share received | ' | ' | ' | 2,500,000 | ' | ' | ' | ' |
Fair value of shares | ' | ' | 39,536 | 58,338 | ' | ' | ' | ' |
Cash recieved by sale of restricted common stock | ' | ' | ' | ' | $250,000 | ' | ' | ' |
Derivative_Liabilities_Details
Derivative Liabilities (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 11, 2012 | Feb. 17, 2012 | |
Derivative Liabilities [Abstract] | ' | ' | ' | ' |
Balance at December 31, 2011 | $0 | $0 | $237,500 | $195,000 |
Record derivative liability as debt discount | ' | 445,204 | ' | ' |
Change in fair value of derivative liability | ' | 4,028,085 | ' | ' |
Settlement of derivative liability due to conversion of related notes | ' | -4,473,289 | ' | ' |
Balance at December 31, 2012 | $0 | $0 | $237,500 | $195,000 |
Derivative_Liabilities_Detail_
Derivative Liabilities (Detail Textuals) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||
Feb. 17, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 11, 2012 | Dec. 31, 2011 | Jun. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Mar. 01, 2012 | Jun. 30, 2011 | Mar. 01, 2012 | Dec. 31, 2011 | Apr. 23, 2012 | Dec. 31, 2012 | Apr. 23, 2012 | Apr. 23, 2012 | Jun. 30, 2011 | |
Convertible Debenture | Series A Convertible Debenture | Series A Convertible Debenture | Series A Convertible Debenture | Series A Convertible Debenture | Series A Convertible Debenture | Series A Convertible Debenture | Series B Convertible Debenture | Series B Convertible Debenture | Series C Convertible Debenture | Series C Convertible Debenture | Series C Convertible Debenture | Series C Convertible Debenture | Warrant | ||||||
First Issuance | First Issuance | Second Issuance | Second Issuance | Third Issuance | Third Issuance | First Issuance | First Issuance | Second Issuance | Second Conversion | ||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Debenture issued | ' | ' | ' | ' | ' | $50,000 | $1,675,000 | ' | $100,000 | ' | ' | $200,000 | ' | $896,161 | ' | $500,000 | ' | ' | ' |
Loss on derivatives | 42,500 | 0 | 4,028,085 | ' | ' | 40,182 | ' | 519,157 | ' | 1,346,762 | 105,714 | ' | 663,160 | ' | ' | ' | 91,324 | ' | 2,507,317 |
Derivative liability issuance date | ' | ' | ' | ' | ' | 1-Mar-12 | ' | ' | ' | ' | ' | ' | ' | ' | 17-Feb-17 | ' | ' | ' | ' |
Warrants outstanding | 2,500,000 | 64,098,685 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,765,365 |
Derivative liability | $195,000 | $0 | $0 | $237,500 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $445,204 | ' | ' | $536,528 | ' |
Income_Taxes_Summary_of_compon
Income Taxes - Summary of components of the company's net deferred taxes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carry forwards | $4,616,080 | $4,619,343 |
Valuation allowance | -4,616,080 | -4,619,343 |
Total deferred tax assets | $0 | $0 |
Income_Taxes_Detail_Textuals
Income Taxes (Detail Textuals) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | ' | ' |
Net operating loss carryforwards | $13,576,705 | $13,586,303 |
Operating loss carry-forward expiration period | 'begin expiring in 2023 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Detail Textuals) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 23, 2012 | |
Kendall Carpenter [Member] | Kendall Carpenter [Member] | Kendall Carpenter [Member] | |||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' |
Rent expense | ' | $110,462 | ' | ' | ' |
Deferred compensation | ' | ' | 9,000 | 13,500 | 150,000 |
Interest rate, notes payable | ' | ' | 6.00% | 6.00% | 6.00% |
Accrued interest on notes payable | 489 | ' | ' | ' | ' |
Debentures Meturity Date | 31-May-14 | ' | 31-Dec-14 | 30-Sep-14 | ' |
Basic salary | ' | ' | ' | ' | $96,000 |
Concentrations_Detail_Textuals
Concentrations (Detail Textuals) (Concentrations of credit risk) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | Customer | |
Accounts receivable | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Number of customers | 1 | 3 |
Percentage of concentrations of credit risk | 50.00% | 74.00% |
Revenue | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Number of customers | 26 | 28 |
Percentage of concentrations of credit risk | 97.00% | 77.00% |
Discontinued_Operations_Pursua2
Discontinued Operations Pursuant To The Sale of Illume Mobile Assets (Details) (Decision Point System, USD $) | Dec. 31, 2013 |
Decision Point System | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Cash received | $250,000 |
Stock received | 698,000 |
Liabilities assumed by DecisionPoint Systems, Inc. | ' |
Accrued liabilities | 25,000 |
Accounts payable | 13,838 |
Deferred revenue | 36,971 |
Assets sold to DecisionPoint Systems, Inc. | ' |
Prepaid expenses | -14,885 |
Property and Equipment, net | -83,507 |
Software development costs | -1,019,480 |
Accounts receivable | -12,475 |
Loss on sales of discontinued operations | ($106,538) |
Discontinued_Operations_Pursua3
Discontinued Operations Pursuant To The Sale of Illume Mobile Assets (Details 1) (Decision Point System, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Decision Point System | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Revenue | $637,507 |
Cost of revenues | 351,654 |
Gross profit | 285,853 |
General and administrative expense | 2,383,793 |
Loss from discontinued operations | ($2,097,940) |
Discontinued_Operations_Pursua4
Discontinued Operations Pursuant ToThe Sale of Illume Mobile Assets (Details Textual) (USD $) | 1 Months Ended | |
Jul. 31, 2012 | Dec. 31, 2013 | |
Assets Sold Under Agreements To Purchase [Line Items] | ' | ' |
Licensed patent at purchase price | $500,000 | ' |
Other receivables | ' | 97,684 |
Description buyer agreed to pay company licensing fee royalty payment | 'i) 7.5% of Net Revenues (as defined in the License Agreement) received from the sale of Software Products (as defined in the License Agreement) and/or Licensed Methods, and (ii) 5% of Net Revenues from the sale of Custom Development Services (as defined in the License Agreement). | ' |
Net revenue from sale of software products | 7.50% | ' |
Net revenues from sale of customer development services | 5.00% | ' |
"Earn-Out Payment" from buyer | ' | ' |
Assets Sold Under Agreements To Purchase [Line Items] | ' | ' |
Earn-out payment from the buyer | 500,000 | ' |
Percent of "Earn-Out Payment" paid in cash | 50.00% | ' |
Percentage of "Earn Out Payment" paid in shares | 50.00% | ' |
Net revenue in earn out payment | 3,000,000 | ' |
Illume Mobile Assets and Operations | ' | ' |
Assets Sold Under Agreements To Purchase [Line Items] | ' | ' |
Purchase price | 948,000 | ' |
Cash received from sale of assets | 250,000 | ' |
Share received from sale assets | 617,284 | ' |
Value for shares received from sale of assets | $698,000 | ' |
Share price | $1.13 | ' |
Restatement_Details
Restatement (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash | $706,211 | $659,204 | $273,132 |
Accounts receivable - trade | 38,791 | 74,056 | ' |
Prepaid expenses and other | 32,594 | 19,330 | ' |
Net property and equipment | 2,651 | 2,189 | ' |
Available-for-sale investment - DecisionPoint Systems, Inc | 324,190 | 493,827 | ' |
Intangible assets, net of amortization | 70,223 | 64,227 | ' |
TOTAL ASSETS | 1,221,872 | 1,312,833 | ' |
Note Payable - Oklahoma Technology Commercialization Center- Current | 112,500 | 90,000 | ' |
Accounts payable - trade and accrued liabilities | 181,172 | 82,226 | ' |
Unearned income | ' | ' | ' |
TOTAL LONG-TERM DEBT, less current maturities | 649,136 | 735,954 | ' |
TOTAL LIABILITIES | 965,308 | 908,180 | ' |
Common stock | 1,907,645 | 1,821,638 | ' |
Additional paid-in capital | 19,922,670 | 19,720,319 | ' |
Accumulated other comprehensive income | -399,936 | -204,173 | ' |
Accumulated deficit | -21,173,815 | -20,933,131 | ' |
TOTAL STOCKHOLDER'S EQUITY | 256,564 | 404,653 | -1,391,296 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,221,872 | 1,312,833 | ' |
As Reported | ' | ' | ' |
Cash | ' | 659,204 | ' |
Accounts receivable - trade | ' | 74,056 | ' |
Prepaid expenses and other | ' | 519,330 | ' |
Net property and equipment | ' | 2,189 | ' |
Available-for-sale investment - DecisionPoint Systems, Inc | ' | 579,875 | ' |
Intangible assets, net of amortization | ' | 64,227 | ' |
TOTAL ASSETS | ' | 1,898,881 | ' |
Note Payable - Oklahoma Technology Commercialization Center- Current | ' | 90,000 | ' |
Accounts payable - trade and accrued liabilities | ' | 84,062 | ' |
Unearned income | ' | 500,000 | ' |
TOTAL LONG-TERM DEBT, less current maturities | ' | 816,752 | ' |
TOTAL LIABILITIES | ' | 1,490,814 | ' |
Common stock | ' | 1,798,320 | ' |
Additional paid-in capital | ' | 13,230,111 | ' |
Accumulated other comprehensive income | ' | -170,125 | ' |
Accumulated deficit | ' | -14,450,239 | ' |
TOTAL STOCKHOLDER'S EQUITY | ' | 408,067 | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | ' | 1,898,881 | ' |
Adjustments | ' | ' | ' |
Cash | ' | ' | ' |
Accounts receivable - trade | ' | ' | ' |
Prepaid expenses and other | ' | -500,000 | ' |
Net property and equipment | ' | ' | ' |
Available-for-sale investment - DecisionPoint Systems, Inc | ' | ' | ' |
Intangible assets, net of amortization | ' | -86,048 | ' |
TOTAL ASSETS | ' | -586,048 | ' |
Note Payable - Oklahoma Technology Commercialization Center- Current | ' | ' | ' |
Accounts payable - trade and accrued liabilities | ' | -1,836 | ' |
Unearned income | ' | -500,000 | ' |
TOTAL LONG-TERM DEBT, less current maturities | ' | -80,798 | ' |
TOTAL LIABILITIES | ' | -582,634 | ' |
Common stock | ' | 23,318 | ' |
Additional paid-in capital | ' | 6,490,208 | ' |
Accumulated other comprehensive income | ' | -34,048 | ' |
Accumulated deficit | ' | -6,482,892 | ' |
TOTAL STOCKHOLDER'S EQUITY | ' | -3,414 | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ($586,048) | ' |
Restatement_Details_1
Restatement (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | ' | ' | ' | $1,454,337 | $2,433,745 |
Cost of revenues | ' | ' | ' | 854,471 | 1,029,985 |
Gross profit | ' | ' | ' | 599,866 | 1,403,760 |
General and administrative expense | 356,369 | 24,000 | 30,950 | 777,920 | 1,431,869 |
Loss from operations | ' | ' | ' | -178,054 | -28,109 |
Total other expense | ' | ' | ' | -62,630 | -6,026,350 |
Net loss from continuing operations | ' | ' | ' | -240,684 | -6,054,459 |
DISCONTINUED OPERATIONS | ' | ' | ' | ' | -2,204,478 |
NET LOSS | ' | ' | ' | -240,684 | -8,258,937 |
OTHER COMPREHENSIVE INCOME | ' | ' | ' | -195,763 | -204,173 |
COMPREHENSIVE INCOME | ' | ' | ' | -436,447 | -8,463,110 |
As Reported | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | 2,988,393 |
Cost of revenues | ' | ' | ' | ' | 1,305,853 |
Gross profit | ' | ' | ' | ' | 1,682,540 |
General and administrative expense | ' | ' | ' | ' | 3,025,071 |
Loss from operations | ' | ' | ' | ' | -1,342,531 |
Total other expense | ' | ' | ' | ' | -238,906 |
Net loss from continuing operations | ' | ' | ' | ' | -1,581,437 |
DISCONTINUED OPERATIONS | ' | ' | ' | ' | -194,608 |
NET LOSS | ' | ' | ' | ' | -1,776,045 |
OTHER COMPREHENSIVE INCOME | ' | ' | ' | ' | -170,125 |
COMPREHENSIVE INCOME | ' | ' | ' | ' | -1,946,170 |
Adjustments | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | -554,648 |
Cost of revenues | ' | ' | ' | ' | -275,868 |
Gross profit | ' | ' | ' | ' | -278,780 |
General and administrative expense | ' | ' | ' | ' | -1,593,202 |
Loss from operations | ' | ' | ' | ' | 1,314,422 |
Total other expense | ' | ' | ' | ' | -5,787,444 |
Net loss from continuing operations | ' | ' | ' | ' | -4,473,022 |
DISCONTINUED OPERATIONS | ' | ' | ' | ' | -2,009,870 |
NET LOSS | ' | ' | ' | ' | -6,482,892 |
OTHER COMPREHENSIVE INCOME | ' | ' | ' | ' | -34,048 |
COMPREHENSIVE INCOME | ' | ' | ' | ' | ($6,516,940) |
Restatement_Details_Textuals
Restatement (Details Textuals) (USD $) | 12 Months Ended | 7 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Jul. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
2011 Convertible Debenture Series A | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital | Illume Mobile Assets And Operations | Decisionpoint Systems Inc | Decisionpoint Systems Inc | Financial Advisory Firm | Financial Advisory Firm One | Reported | Restatement | |||
Restatement [Textual] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unearned income | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | $500,000 | ($500,000) |
Earn-out payment from the buyer | ' | ' | ' | ' | ' | ' | ' | 52,000 | 34,048 | ' | ' | ' | ' |
Stock based compensation, Liability | ' | ' | ' | 23,318 | ' | 23,319 | ' | ' | ' | ' | ' | 9,909 | 9,909 |
Number of shares issued for services | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | ' | 1,850,000 | 750,000 | ' | ' |
Common Stock issued for Services | ' | 278,450 | ' | 28,000 | ' | 250,450 | ' | ' | ' | 168,000 | 45,000 | ' | ' |
Legal and travel expenses | ' | 12,574 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debenture liability | ' | ' | 72,727 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial additional paid-in capital | ' | 24,000 | 1,475,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in additional paid-in capital | ' | 30,950 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt interest expense | ' | ' | 1,402,273 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional paid-in capital and G&A expense | ' | 356,369 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional paid-in capital and other expense | ' | 4,473,289 | ' | ' | ' | 4,473,289 | ' | ' | ' | ' | ' | ' | ' |
Option expense | 90,020 | 94,738 | ' | ' | 90,020 | 94,738 | ' | ' | ' | ' | ' | ' | ' |
Loss from operations | ($240,684) | ($6,054,459) | ' | ' | ' | ' | $2,204,478 | ' | ' | ' | ' | ' | ' |
Subsequent_Event_Details
Subsequent Event (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent event, Description | ' |
the United States Patent and Trademark Office (“USPTO”) sent the Company an office action related to an ex parte reexamination of the Company’s 7,822,816 patent, which rejected all the claims in the patent (the “USPTO Office Action”). The Company has two months to file a request for the patent examiners to reconsider the USPTO Office Action. As a result of the USPTO Office Action, the Company has withdrawn all outstanding litigation relating the ‘816 patent without prejudice, which will allow it to refile such pending suits if the USPTO Office Action is rescinded or the Company’s rights under the ‘816 patent are restored. |