Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document And Entity Information | ' |
Entity Registrant Name | 'PAWS Pet Company, Inc. |
Entity Central Index Key | '0001346973 |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Is Entity's Reporting Status Current? | 'Yes |
Entity Filer Category | 'Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 112,958,134 |
Document Fiscal Period Focus | 'Q3 |
Document Fiscal Year Focus | '2013 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $8,301 | $81,755 |
Prepaid expenses | 1,600 | 1,600 |
Total current assets | 9,901 | 83,355 |
Property and equipment, at cost | 169,136 | 169,136 |
Less: accumulated depreciation and amortization | -154,984 | -116,753 |
Total property and equipment, net | 14,152 | 52,383 |
Total assets | 24,053 | 135,738 |
Current liabilities: | ' | ' |
Accounts and accrued expenses payable | 1,908,039 | 1,596,826 |
Convertible debentures, net of debt discount of $24,390 and $160,067 at September 30, 2013 and December 31, 2012, respectively | 619,360 | 655,433 |
Litigation accrual, discontinued operations | 332,953 | 87,491 |
Accounts and accrued expenses payable, discontinued operations | 621,697 | 778,074 |
Total current liabilities | 3,482,049 | 3,117,824 |
Non-current liabilities: | ' | ' |
Warrant liability | 616,388 | 248,368 |
Total liabilities | 4,098,437 | 3,366,192 |
Commitments and contingencies | ' | ' |
Stockholders' deficit: | ' | ' |
Common stock, no par value, 1.1 billion shares authorized, 112,958,134 and 86,509,928 issued and outstanding at September 30, 2013 and December 31, 2012, respectively | ' | ' |
Additional paid-in capital | 16,116,215 | 11,566,930 |
Accumulated deficit from inception until discontinuance of operations (January 31, 2012) | -13,957,796 | -13,918,140 |
Accumulated deficit since inception of development stage (February 1, 2012) to September 30, 2013 | -6,232,803 | -879,244 |
Total stockholders' deficit | -4,074,384 | -3,230,454 |
Total liabilities and stockholders' deficit | 24,053 | 135,738 |
Series B Preferred Stock [Member] | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock, no par value, 10 million shares authorized | ' | ' |
Series C Preferred Stock [Member] | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock, no par value, 10 million shares authorized | ' | ' |
Series A Preferred Stock [Member] | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock, no par value, 10 million shares authorized | ' | ' |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Convertible debentures current, debt discount | $24,390 | $160,067 |
Preferred stock, no par value | ' | ' |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ' | ' |
Common stock, no par value | ' | ' |
Common stock, shares authorized | 1,100,000,000 | 1,100,000,000 |
Common stock, issued | 112,958,134 | 86,509,928 |
Common stock, outstanding | 112,958,134 | 86,509,928 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, shares outstanding | 80,000 | 0 |
Preferred stock liquidation preference value | 2,400,000 | 0 |
Series C Preferred Stock [Member] | ' | ' |
Preferred stock, shares outstanding | 2,005 | 0 |
Preferred stock liquidation preference value | $2,005,000 | $0 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | ' | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | 20 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Operating expense: | ' | ' | ' | ' | ' |
Sales, general and administrative | $446,248 | $348,336 | $814,375 | $1,874,259 | $2,547,716 |
Loss from operations | -446,248 | -348,336 | -814,375 | -1,874,259 | -2,547,716 |
Other income (expense): | ' | ' | ' | ' | ' |
Interest expense (including $3,456, $91,863 $162,099, $303,347 and $573,431 respectively, of amortization of debt discount) | -10,089 | -93,962 | -191,303 | -313,350 | -614,413 |
Loan default fee | -45,250 | ' | -45,250 | ' | -45,250 |
Financing fee | ' | -427,073 | ' | -427,073 | -427,073 |
Net (loss) gain on conversion of convertible notes | ' | -8,339 | -2,214,611 | 61,661 | -2,152,950 |
Subsidiary acquisition costs | ' | ' | -1,720,000 | ' | -1,720,000 |
Impairment of goodwill | ' | ' | ' | -1,035,168 | -1,035,168 |
Warrant liability valuation adjustment, net | 1,701,554 | 1,133,795 | -368,020 | 2,748,819 | 2,314,567 |
Other income (expense), net | 1,646,215 | 604,421 | -4,539,184 | 1,034,889 | -3,680,287 |
Income (loss) before income taxes | 1,199,967 | 256,085 | -5,353,559 | -839,370 | -6,228,003 |
Provision for income taxes | ' | ' | ' | -1,600 | -1,600 |
Income (loss) from continuing operations | 1,199,967 | 256,085 | -5,353,559 | -840,970 | -6,229,603 |
Discontinued operations: | ' | ' | ' | ' | ' |
Loss from discontinued operations, net of tax | -3,733 | ' | -39,656 | -252,079 | ' |
Net income (loss) | $1,196,234 | $256,085 | ($5,393,215) | ($1,093,049) | ($6,229,603) |
Net income (loss) per share, basic and diluted | $0.01 | $0 | ($0.06) | ($0.02) | ($0.08) |
Weighted average shares used in calculation of basic and diluted net loss per share | 97,979,539 | 59,324,455 | 91,100,690 | 65,970,450 | 81,277,591 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | 20 Months Ended | ||
Sep. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' | ' |
Amortization of debt discount | $3,456 | $91,863 | $162,099 | $303,347 | $573,431 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | 20 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net loss | ($5,393,215) | ($1,093,049) | ($6,229,603) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization | 38,231 | 47,840 | 86,904 |
Equity based compensation | 6,348 | 25,173 | 31,521 |
Warrant valuation adjustment, net | 368,020 | -2,748,819 | -2,314,567 |
Accelerated amortization of debt discount from conversion of debenture | 11,974 | 59,080 | 71,054 |
Amortization of debt discount | 150,125 | 244,267 | 502,377 |
Loan default fee | 45,250 | ' | 45,250 |
Net loss (gain) on conversion of convertible notes | 2,214,611 | -61,661 | 2,152,950 |
Subsidiary acquisition costs | 1,720,000 | ' | 1,720,000 |
Impairment of goodwill | ' | 1,035,168 | 1,035,168 |
Common shares issued in lieu of cash to Intellicell for license fee | ' | 58,209 | 58,209 |
Common shares issued in lieu of cash for interest and penalty interest | 14,704 | 6,432 | 21,342 |
Common shares issued in lieu of cash for services rendered by non-employees | 287,200 | 818,514 | 1,105,714 |
Common shares issued in lieu of cash compensation to employees | ' | 144,000 | 144,000 |
Financing fee | ' | 427,073 | 427,073 |
Changes in certain assets and liabilities: | ' | ' | ' |
Receivable due from credit card clearing house | ' | 59,418 | ' |
Prepaid expenses | ' | -1,686 | -63 |
Security deposits and other | ' | 39,689 | 39,689 |
Accounts payable and accrued expenses | 314,213 | -177,656 | 675,263 |
Accounts payable and accrued expenses, discontinued operations | 89,085 | 845,233 | ' |
Net cash used in operating activities | -133,454 | -272,775 | -427,719 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of property and equipment | ' | ' | ' |
Net cash used in investing activities | ' | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from sale of preferred and common stock | 32,500 | 225,000 | 257,500 |
Proceeds from issuance of debt | 27,500 | 102,500 | 130,000 |
Net cash provided by financing activities | 60,000 | 327,500 | 387,500 |
Net change in cash and cash equivalents | -73,454 | 54,725 | -40,219 |
Cash and cash equivalents at beginning of period | 81,755 | 38,256 | 48,520 |
Cash and cash equivalents at end of period | 8,301 | 92,981 | 8,301 |
Cash paid during the year for: | ' | ' | ' |
Income taxes | ' | ' | ' |
Interest expense | ' | ' | ' |
Non-cash transactions: | ' | ' | ' |
Conversion of convertible debentures to 6,655,581, 2,283,898 and 8,939,479 shares of common stock, respectively | 97,450 | 42,000 | 139,450 |
Subsidiary acquisition costs | 1,720,000 | 1,035,168 | 2,755,168 |
Issuance of Series C shares in exchange for warrants and interest | $2,695,000 | ' | ' |
Statements_of_Cash_Flows_Paren
Statements of Cash Flows (Parenthetical) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 20 Months Ended | ||
Sep. 04, 2012 | Apr. 30, 2012 | Jan. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Statement of Cash Flows [Abstract] | ' | ' | ' | ' | ' | ' |
Issuance of common stock for conversion of convertile debentures | 2,033,898 | 250,000 | 1,300,000 | 6,655,581 | 2,283,898 | 8,939,479 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||
Sep. 30, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Summary of Significant Accounting Policies | ' | ||
1. Summary of Significant Accounting Policies | |||
Basis of Presentation | |||
The accompanying unaudited condensed consolidated financial statements of The PAWS Pet Company, Inc. (the “Company”), formerly known as Pet Airways, Inc., and its wholly owned subsidiaries Pet Airways, Inc. (“Pet Airways”), Advanced Access Pharmacy Services, LLC (“AAPS”) and Impact Social Networking, Inc.(“ISN”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. In the opinion of the Company’s management, the accompanying condensed consolidation financial statements reflect all adjustments, consisting of normal, recurring adjustments, considered necessary for a fair presentation of the results for the interim periods ended September 30, 2013 and 2012 and for the period from the inception of the development stage (February 1, 2012) to September 30, 2013. Although management believes that the disclosures in these unaudited condensed consolidated financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in financial statements that have been prepared in accordance GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The results for the nine month period ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013 and for the period from the inception of the development stage (February 1, 2012) to December 31, 2013. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2012. | |||
Certain prior period amounts have been reclassified or adjusted to conform to the current presentation. These reclassifications and adjustments had no material impact on the consolidated financial position, results of operations and net cash flows from operations for all periods presented. | |||
Going Concern Matters | |||
The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company does not presently have adequate cash from operations or financing activities to meet its long-term financing needs. For the nine month period ended September 30, 2013 and the year ended December 31, 2012, the Company had $8,301 and $81,755, respectively, in cash and cash equivalents to use in executing its business plan at September 30, 2013 and December 31, 2012, respectively. As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $5,393,215 for the nine months ended September 30, 2013 and a net loss during the development stage from inception (February 1, 2012) through September 30, 2013 of $6,229,603. As a result of these and other factors, the Company’s independent registered public accounting firm has included an explanatory paragraph in their audited consolidated financial statements and footnotes in the Annual Report on Form 10-K for the year ended December 31, 2012 as to the substantial doubt about the Company’s ability to continue as a going concern. | |||
The Company will require additional working capital to continue its operations during the next 12 months and to support its long-term growth strategies. Since the company was unable to meet the conditions permitted to make draw downs under its financing arrangement with Socius, the Company needs to seek alternative funding required through one or more sources and credit facilities, if available, or through the sale of debt or issuance of additional equity securities. However, there is no assurance that funding of any type would be available to the Company, or that it would be available at rates or other terms and conditions that would be financially acceptable and viable to the Company in the long term. If the Company is unable to raise the necessary additional financing when needed, the Company may be required to stop developing technologies, sell assets or enter into a merger or other combination with a third party, any of which could adversely affect the value of its common stock, or render it worthless. If the Company issues additional debt or equity securities, such securities may enjoy rights, privileges and priorities (including but not limited to coupon rates, conversion rights, rights to fixed or preferential dividends, anti-dilution rights or preference as to the distribution of assets upon a liquidation) superior to those enjoyed by holders of the Company’s common stock, thereby diluting the value of the Company’s common stock. | |||
The Company’s prospects must be considered in light of the risks, expenses and difficulties encountered by companies at an early stage of development, particularly given that the Company has limited financial resources. The Company may not be successful in addressing such risks and difficulties. | |||
Critical Accounting Policies and Estimates | |||
The preparation of the Company’s unaudited condensed consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. The Company based these estimates and assumptions on historical experience and evaluates them on an on-going basis to ensure they remain reasonable under current conditions. Actual results could differ from those estimates. Critical accounting policies and estimates are summarized below. | |||
Revenue Recognition | |||
The Company recognizes revenue when the earnings process is completed. The Company is not currently generating revenue. | |||
Derivative Liabilities | |||
The Company has utilized convertible debentures with warrants to purchase shares of common stock to settle certain liabilities and fund operations resulting in the recording of a derivative liability. Current guidance for valuing and classifying transactions of this type includes Accounting Standards Codification (“ASC”)470-20 “Debt with Conversion and Other Options”. Accordingly, the Company has used the Black-Scholes option-pricing model as its method of determining the fair value of the convertible debenture issued with a warrant. The resulting calculation of the beneficial conversion feature (“BCF”) and warrant equity component are recorded to additional paid in capital (“APIC”) with an offset discount to the principal value of the convertible debenture. The Company has used the effective yield interest method for amortizing the discount to interest expense over the maturity term of the convertible debenture. The Company records to interest expense the unamortized discount value associated with a debenture converted in a period. | |||
The Company accounts for certain of its warrants (see Note 2, Equity, Socius CG II, Ltd. Financing) as derivatives under the guidance of ASC 815-10, Accounting for Derivative Instruments and Hedging Activities, and ASC 815-40, Contracts in an Entity’s Own Stock. | |||
Accruals for Contingent Liabilities | |||
The Company makes estimates of liabilities that arise from various contingencies for which values are not fully known at the date of the accrual or during the periodic financial planning and analysis cycle. These contingencies may include, but are not limited, to accruals for reserves for expenses, costs and awards involving legal settlements. Events may occur that are resolved over a period of time or on a specific future date. Management makes estimates using the facts available of the probability of the outcomes and range of cost, if measureable, of these occurrences and charges them to expense in the appropriate periods. If the ultimate resolution of any event is different than management’s estimate caused by a change in facts or material operating assumptions, corresponding entries to earnings may be required. | |||
Equity Based Compensation | |||
The Company applies ASC 718-10 Stock Compensation and ASC 505-50 Equity Based Payments to Non-Employees in accounting for stock options issued to employees and non-employees, respectively. For stock options and warrants issued to non-employees, the Company applies the same standard, which requires the recognition of compensation cost based upon the fair value of stock options and warrant at the grant date using the Black-Scholes option pricing model. The Company’s determination of fair value of share-based payment awards on the date of grant using the option-pricing model is affected by its equity price as well as assumptions regarding its expected equity price volatility over the term of the awards, the selection of a risk free interest rate, the ultimate disposition of the award and the impact of the award on earnings per share. For example, in calculating the expected equity price volatility, the Company may consider using its historical experience only, its experience plus that of a publicly trade index volatility experience, or a blended volatility experience for public peer companies. The Company also evaluates carefully the expected life term of an award though the vesting of awards to date have been immediate. Finally, the Company attempts to use a risk free rate that is widely quoted and pertinent across a broad range of transactions. | |||
Cash and Cash Equivalents | |||
The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at financial institutions that are insured by the Federal Deposit Insurance Corporation. | |||
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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. | |||
Reservation System and Development Costs | |||
The Company accounts for its reservation system (“website”) and development costs in accordance with ASC 350-50 “Website Development Costs.“All costs incurred in the planning stage are expensed as incurred. Costs incurred in the website application and infrastructure development stage are accounted for in accordance with ASC 350-50, which requires the capitalization of certain costs that meet specific criteria. Costs incurred in the day to day operation of the website are expensed as incurred. Costs associated with the development of the Company’s social media application were expensed in the month when they incurred. | |||
Fair Value Measurements | |||
The Company has adopted a single definition of fair value, a framework for measuring fair value, and expanded disclosures concerning fair value. In this valuation, the exchange price is the price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date and fair value is a market-based measurement and not an entity-specific measurement. | |||
The Company utilizes the following hierarchy in fair value measurements: | |||
● | Level 1 – Inputs use quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. | ||
● | Level 2 – Inputs use other inputs that are observable, either directly or indirectly. These inputs include quoted prices for similar assets and liabilities in active markets as well as other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. | ||
● | Level 3 – Inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. | ||
Depreciation, Amortization and Capitalization | |||
The Company records depreciation and amortization, when appropriate, using the straight-line method over the estimated useful life of the assets (three to five years). Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the property’s useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removed from the appropriate accounts and the resultant gain or loss is included in operating income or loss. | |||
Long-Lived Assets | |||
The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful life of its trademark costs. If and when such factors, events or circumstances indicate possible impairment to its trademark costs, the Company would make an estimate of undiscounted cash flows over the remaining lives of the respective assets in measuring recoverability from future operations. The Company incurred no impairment losses during 2013. The Company incurred $1,035,168 of impairment losses for the nine months ended September 30, 2012 and for the period from the inception of the development stage (February 1, 2012) to September 30, 2013, respectively. | |||
Income Taxes | |||
The Company follows ASC 740, Income Taxes, therefore, deferred tax assets or liabilities are recorded to reflect the future tax consequences of temporary differences between the financial reporting basis of assets and liabilities and their tax basis at each year-end. These amounts are adjusted, as appropriate, to reflect enacted changes in tax rates expected to be in effect when the temporary differences reverse. | |||
The Company records deferred tax assets and liabilities based on the differences between the financial statement and tax bases of assets and liabilities and on operating loss carry forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||
Recent Accounting Pronouncements | |||
Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying condensed consolidated financial statements. |
Business_Overview_and_Organiza
Business Overview and Organizational History | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Business Overview and Organizational History | ' |
2. Business Overview and Organizational History | |
Business Overview | |
From inception until January 2012, the Company, through its wholly-owned subsidiary, Pet Airways, operated an airline designed specifically for the comfortable and safe transportation of pets by traveling in the main cabin of the aircraft. Pet owners booked their pets on flights online at the Company’s website or booked with its agents by phone. On the day of the scheduled flight, pet owners dropped off their pets at one of the Company’s facilities located at the departure airport. The Company placed the pet passengers into a pet-friendly carrier and then boarded the carrier into the main cabin of the aircraft. The Company ran a scheduled coast to coast service. By the end of January 2012, the Company suspended flight operations due to low bookings and insufficient funds. | |
On February 23, 2012, pursuant to a share exchange agreement the Company acquired the all of the issued and outstanding capital stock of Impact Social Networking, Inc. (“ISN”), a Georgia corporation in exchange for 7,394,056 shares of the Company’s common stock, no par value per share valued at $1,035,168 on the date of the acquisition. ISN owns a number of technology assets that had not reached technical feasibility at the time of the acquisition. With the exception of these technology assets ISN had no other assets or liabilities at the time of the acquisition, and had except for the development costs incurred for these assets, had no other costs and no revenue. Following, the acquisition, the Company commenced a new strategy of developing technologies for pet owners and pet caregivers. | |
On March 16, 2012, the Company launched a beta version of a social media application called “Pawdoodle.” This was an application that could be used in conjunction with social media platforms such as Facebook, Twitter and Google Plus. Pawdoodle was presumed to be the first social networking application that had been developed specifically for pet owners and pet caregivers that worked across a number of social media platforms. By using Pawdoodle, pet owners could build web pages for their pets, post and view pictures of their pets, follow pet breeds and pet adoptions. Pawdoodle also allowed pet owners to store pet microchip data. | |
In September 2012, the Company discontinued the Pawdoodle application. | |
On March 9, 2013 the Company entered into a Securities Exchange Agreement whereby the Company issued 80,000 shares of the Company’s Series B Convertible Preferred Stock (the “B Preferred”) to the members of Advanced Access Pharmacy Services, LLC, a Nevada limited liability company (“AAPS”) in exchange for all of the outstanding units of limited liability company membership interests of AAPS. AAPS had neither assets nor liabilities at the time of the exchange and had generated no revenue nor incurred any costs. In connection with this transaction the Company recorded an expense of $1,720,000 based upon the March 9, 2013 fair market value of the B Preferred. | |
AAPS was created to exploit specific niche opportunities in wholesale and retail pharmacies. AAPS intends to focus on workers’ compensation and in-office physician pharmacy distribution as well as the limited purchase and collection of pharmaceutical and services related receivables. Leveraging decades of experience in pharmacy and medical receivables collections of the people being hired, the Company believes that it should be able to achieve significant profitability in a very short period with very limited investment. | |
On June 29, 2013 the Company increased its authorized number of shares of common stock to 1,100,000,000. | |
Organizational History | |
The Company was incorporated in the State of Illinois on June 6, 2005 as American Antiquities, Inc. In June 2010, the Company formed Pet Airways by the conversion of successor entity Panther Air Cargo, LLC (“Panther Air”) a limited liability company. Effective the date of the conversion, Panther Air began operating as Pet Airways, Inc. (Florida). | |
On August 13, 2010, the Company completed a reverse acquisition transaction through a share exchange with Pet Airways (the “Acquisition”), whereby the Company acquired all of the issued and outstanding capital stock of Pet Airways in exchange for 25,000,000 shares of the Company’s common stock, which constituted approximately 73% of its issued and outstanding capital stock on a post-acquisition basis as of and immediately after the consummation of the Acquisition. | |
Upon completion of the Acquisition, the Company changed its name from American Antiquities, Inc. to Pet Airways, Inc. and commenced trading under the symbol “PAWS” on the OTC QB. The OTC QB market tier of the OTC market helps investors identify companies that are current in their reporting obligations with the SEC. OTC QB securities are quoted on OTC Markets Group’s quotation and trading system. On July 27, 2011, the Company filed Articles of Amendment to amend its Articles of Incorporation to change its name to The PAWS Pet Company, Inc. | |
The share exchange transaction was treated as a reverse acquisition for accounting purposes, with Pet Airways as the acquirer and The PAWS Pet Company, Inc. as the acquired party. Unless the context suggests otherwise, references in this report to business and financial information for periods prior to the consummation of the reverse acquisition, refer to the business and financial information of Pet Airways, Inc. and its predecessors. For accounting purposes, the acquisition of Pet Airways, Inc. has been treated as a recapitalization with no adjustment to the historical book and tax basis of the Company’s assets and liabilities. | |
In January 2012, the Company suspended flight operations and ceased airline operations. | |
On February 23, 2012, pursuant to the Agreement the Company acquired the all of the issued and outstanding capital of ISN, a Georgia corporation in exchange for 7,394,056 shares of the Company’s common stock, no par value per share valued at $1,035,168 on the date of the acquisition. ISN owns a number of technology assets that had not reached technical feasibility at the time of the acquisition. With the exception of these technology assets ISN had no other assets or liabilities at the time of the acquisition, and had except for the development costs incurred for these assets, had no other costs and no revenue. Following, the acquisition, the Company commenced a new strategy of developing technologies for pet owners and pet caregivers. In September 2012, the Company closed the social media application and is currently evaluating alternative business strategies. | |
On July 13, 2012 the Company increased its authorized number of shares of common stock to 350,000,000. On June 29, 2013 the Company increased its authorized number of shares of common stock to 1,100,000,000. |
Equity
Equity | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Equity | ' | ||||||||||
3. Equity | |||||||||||
Series B Preferred Stock | |||||||||||
On May 15, 2013, the Company filed an amended and restated Certificate of Designations of Preferences, Rights and Limitations of Series B Preferred Stock (the “Certificate of Designations B”) with the Secretary of State of the State of Illinois that designated 80,000 such shares as Series B Preferred Stock (the “Series B Stock”). A summary of the Certificate of Designations is set forth below: | |||||||||||
Ranking The Series B Stock ranks, with respect to rights upon liquidation, winding-up or dissolution, (i) senior to the Common Stock, Series A and B Preferred Stock, and any other classes of stock or series of preferred stock of the Company whether authorized now, or at any time in the future, unless any such subordination to any other class or series of Preferred Stock, is expressly agreed to, pursuant to an affirmative vote or written consent of Holders of at least sixty-seven percent (67%) of the Series B Stock issued and outstanding at the time of any such vote or written consent. and (ii) junior to any and all existing and future indebtedness of the Company. | |||||||||||
Right of Conversion Any Holder of Series B Stock shall have the right to convert any or all of the Holder’s Series B Stock into a number of fully paid and non-assessable shares of Common Stock for each share of Series B Stock so converted. The number of shares of Common Stock to be issued shall be the number that is equal to 0.001% of the number of shares of the Common Stock that would be issued and outstanding after the hypothetical conversion and issuance of all of the outstanding shares of any and all classes of convertible stock and/or any and all other convertible debt instruments, options and/or warrants outstanding at the time of conversion (the “Conversion Ratio”). In no event shall the Conversion Ratio be less than four thousand, three hundred (4,300) shares of Common Stock and in no event shall the Conversion Ratio be more than ten thousand (10,000) shares of Common Stock | |||||||||||
Dividends Series B Stock shall not be entitled to dividends. | |||||||||||
Liquidation In the event of any liquidation, dissolution or winding-up of the affairs of the Corporation (collectively, a “Liquidation”), the sole participation to which the Holders of shares of Series B Stock then issued and outstanding (the “Series B Stockholders”) shall be entitled, out of the assets of the Corporation legally available for distribution to its stockholders, whether from capital, surplus or earnings, to receive, before any payment shall be made to the holders of the Common Stock or any other class or series of preferred stock ranking on Liquidation junior to such Series B Stock, an amount per share equal to $30 (thirty dollars). If upon any such Liquidation, the remaining assets of the Corporation available for distribution to its shareholders shall be insufficient to pay the Holders of shares of Series B Stock the full amount to which they shall be entitled, the Holders of shares of Series B Stock, and of any class or series of stock ranking upon liquidation on a parity with the Series B Stock, shall share pari passu in any distribution of the remaining assets and funds of the Corporation in proportion to the respective liquidation amounts that would otherwise be payable to the Holders of preferred stock with respect to the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full. | |||||||||||
As of September 30, 2013, 80,000 shares of Series B Stock were outstanding. | |||||||||||
Series C Preferred Stock | |||||||||||
On May 15, 2013, the Company filed a Certificate of Designations of Preferences, Rights and Limitations of Series C Preferred Stock (the “Certificate of Designations C”) with the Secretary of State of the State of Illinois that designated 50,000 such shares as Series C Preferred Stock (the “Series C Stock”). A summary of the Certificate of Designations is set forth below: | |||||||||||
Ranking The Series C Stock ranks, with respect to rights upon liquidation, winding-up or dissolution, (i) senior to the Common Stock, Series A Preferred Stock, and any other classes of stock or series of preferred stock of the Company whether authorized now, or at any time in the future, unless any such subordination to any other class or series of Preferred Stock, is expressly agreed to, pursuant to an affirmative vote or written consent of Holders of at least sixty-seven percent (67%) of the Series C Stock issued and outstanding at the time of any such vote or written consent. and (ii) junior to Series C Preferred Stock, and any and all existing and future indebtedness of the Company. | |||||||||||
Right of Conversion Any Holder of Series C Stock shall have the right to convert any or all of the Holder’s Series C Stock into a number of fully paid and non-assessable shares of Common Stock for each share of Series C Stock so converted. The number of shares of Common Stock shares that is equal to sixty-six percent (66%) of the lowest closing price of the Common Stock, as quoted on any exchange or market upon which the Common Stock is traded over the sixty (60) calendar days preceding the date the Corporation and the Holder enter into an agreement to issue for shares of Series C Stock, for each share of Class C Stock being converted, provided, however, such ratio shall not be less than $0.005 nor more than $.01. | |||||||||||
Dividends Series C Stock shall not be entitled to dividends. | |||||||||||
Liquidation In the event of any liquidation, dissolution or winding-up of the affairs of the Corporation (collectively, a “Liquidation”), the sole participation to which the Holders of shares of Series C Stock then issued and outstanding (the “Series C Stockholders”) shall be entitled, out of the assets of the Corporation legally available for distribution to its stockholders, whether from capital, surplus or earnings, to receive, before any payment shall be made to the holders of the Common Stock or any other class or series of preferred stock ranking on Liquidation junior to such Series C Stock, an amount per share equal to $100 (one hundred). If upon any such Liquidation, the remaining assets of the Corporation available for distribution to its shareholders shall be insufficient to pay the Holders of shares of Series C Stock the full amount to which they shall be entitled, the Holders of shares of Series C Stock, and of any class or series of stock ranking upon liquidation on a parity with the Series C Stock, shall share pari passu in any distribution of the remaining assets and funds of the Corporation in proportion to the respective liquidation amounts that would otherwise be payable to the Holders of preferred stock with respect to the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full. | |||||||||||
As of September 30, 2013, 2,005 shares of Series C Stock were outstanding. | |||||||||||
Series A Preferred Stock | |||||||||||
On May 27, 2011, the Company filed an amended and restated Certificate of Designations of Preferences, Rights and Limitations of Series A Preferred Stock (the “Certificate of Designations”) with the Secretary of State of the State of Illinois that designated 500 such shares as Series A Preferred Stock (the “Series A Stock”). A summary of the Certificate of Designations is set forth below: | |||||||||||
Ranking The Series A Stock ranks, with respect to rights upon liquidation, winding-up or dissolution, (i) senior to the Common Stock and (ii) junior to Series B and C Stock and any other series of preferred stock, and any and all existing and future indebtedness of the Company. | |||||||||||
No right of Conversion Series A Stock is not convertible into Common Stock. | |||||||||||
Dividends and Other Distributions Commencing on the date of issuance of any such shares of Series A Stock, holders of Series A Stock shall be entitled to receive dividends on each outstanding share of Series A Stock, which shall accrue at a rate equal to 10% per annum from the date of issuance. Accrued dividends shall be payable upon redemption of the Series A Stock. So long as any shares of Series A Stock are outstanding, no dividends or other distributions may be paid, declared or set apart with respect to any junior securities other than dividends or other distributions payable on the Common Stock solely in the form of additional shares of Common Stock. After payment of dividends at the annual rates set forth above, any additional dividends declared shall be distributed ratably among all holders of Series A Stock and Common Stock in proportion to the number of shares of Common Stock that would be held by each such holder of Series A Stock as if the Series A Stock were converted into Common Stock by taking the Series A Liquidation Value (as defined below) divided by the market price of one share of Common Stock on the date of distribution. | |||||||||||
Liquidation Upon any liquidation, dissolution or winding up of the Company after payment or provision for payment of debts and other liabilities of the Company and any liquidation preferences to the senior securities. Series B Stock and Series C Stock has liquidation preference to the Series A Stock., before any distribution or payment is made to the holders of any junior securities, the holders of Series A Stock shall first be entitled to be paid out of the assets of the Company available for distribution to its stockholders an amount with respect to the Series A Liquidation Value, after which any remaining assets of the Company shall be distributed ratably among the holders of the Series A Stock and the holders of junior securities, as if the Series A Stock were converted into Common Stock by taking the Series A Liquidation Value divided by the market price of one share of Common Stock on the date of distribution. | |||||||||||
Redemption The Company may redeem, for cash or by an offset against any outstanding note payable from Socius to the Company that was issued by Socius CG II, Ltd. (“Socius”), any or all of the Series A Stock at any time at a redemption price per share equal to $10,000 per share of Series A Stock, plus any accrued but unpaid dividends with respect to such share of Series A Stock (the “Series A Liquidation Value”). | |||||||||||
On June 2, 2011, the Company’s Board of Directors designated 1,200,000 shares as Series A Stock. As of September 30, 2013, no shares of Series A Stock were outstanding. | |||||||||||
Socius CG II, Ltd. Financing | |||||||||||
On June 3, 2011, the Company entered into a securities purchase agreement with Socius, pursuant to which it secured $500,000 of immediate funding through the issuance and sale of 2,253,470 shares of common stock and a warrant to purchase up to 20,476,707 shares of common stock at an initial exercise price of $1.02 (subject to anti-dilution adjustments). In addition, Socius agreed to purchase up to an additional $5 million in non-convertible shares of Preferred Stock from the Company over the next two years, subject to the Company meeting certain conditions. | |||||||||||
Subject to the terms and conditions of the securities purchase agreement, beginning 75 days after the closing of the initial purchase, at the Company’s sole discretion, the Company may submit to Socius a tranche notice to purchase a certain dollar amount of the Company’s Preferred Stock at $10,000 per share. The maximum amount that may be funded under any tranche cannot exceed 20% of the cumulative trading volume of the common stock for the 10 trading day-period prior to the applicable tranche notice date. | |||||||||||
In connection with the securities purchase agreement, the Company agreed to issue on the 75thday anniversary of the initial purchase by Socius, 1,126,735 shares of common stock to Socius as consideration for executing the securities purchase agreement. The fair value of the consideration was $371,823 using the August 18, 2011 common stock closing price of $0.33 per share and was recorded as a deferred financing fee. | |||||||||||
In addition, with the closing of the Socius financing, the Company approved the issuance of an aggregate of 1,800,000 shares of common stock as contingent consideration valued at $1,260,000 using the June 3, 2011 common stock closing price of $0.70 per share to two non-employee consultants. The share issuance was recorded as a financing cost charged against APIC. | |||||||||||
In connection with the issuance of the warrant to purchase up to 20,476,707 shares of common stock at an initial exercise price of $1.02 (subject to full ratchet, anti-dilution adjustment), using the Black Scholes option pricing model that valued the warrants at $0.70 and $0.65 per share at June 3 and September 30, 2011 respectively, the Company recorded a charge to operations of $12,839,860 and a credit to additional paid in capital of $470,000. In connection with the Socius transaction we recorded total deferred financing fees of $427,073 during the year ended December 31, 2011. As of March 31, 2012, the deferred financing fee balance was $427,073, however, because access to the $5 million financing is based on a percentage formula of the dollar value of stock traded, the Company determined that it is unlikely that sufficient stock volume will be reached over the balance of the term of the financing and has expensed the deferred financing fees of $427,073 during the quarter ended September 30, 2012. The warrant agreement has an anti-dilution clause included and therefore the Company has had to issue additional warrants at the same time as new shares were sold to third parties. The following table shows all warrants outstanding with their issuance date and exercise price. | |||||||||||
Date issued | Exercise price | Number of shares | |||||||||
3-Jun-11 | $ | 1.02 | 20,476,707 | ||||||||
29-Dec-11 | $ | 0.2 | 458,678 | ||||||||
3-Feb-12 | $ | 0.14 | 4,336,503 | ||||||||
2-Mar-12 | $ | 0.14 | 252,449 | ||||||||
2-Apr-12 | $ | 0.05 | 53,811 | ||||||||
10-Apr-12 | $ | 0.12 | 3,995,247 | ||||||||
20-Apr-12 | $ | 0.12 | 405,839 | ||||||||
20-Apr-12 | $ | 0.12 | 828,089 | ||||||||
25-Apr-12 | $ | 0.12 | 184,335 | ||||||||
27-Apr-12 | $ | 0.12 | 302,046 | ||||||||
7-Jun-12 | $ | 0.01 | 109,489 | ||||||||
15-Jun-12 | $ | 0.01 | 733,848 | ||||||||
30-Jun-12 | $ | 0.01 | 761,126 | ||||||||
24-Jul-12 | $ | 0.01 | 217,390 | ||||||||
1-Sep-12 | $ | 0.01 | 219,723 | ||||||||
Total | 33,335,280 | ||||||||||
The value of the derivative warrant liability was $616,388 and $248,368 at September 30, 2013 and December 31, 2012, respectively. | |||||||||||
Common Stock Issued | |||||||||||
The Company has issued common stock various times during 2012 and 2013, the following table shows each date, reason for issuance, fair value of the transaction and number of shares issued: | |||||||||||
Date issued | Reason for issuance | Fair value | Number of shares | ||||||||
26-Jan-12 | Common Stock issued for license agreement | $ | 5,500 | 45,833 | |||||||
23-Feb-12 | Common Stock issued in acquisition of subsidiary | $ | 1,035,168 | 7,394,056 | |||||||
26-Feb-12 | Common Stock issued for license agreement | $ | 6,417 | 45,833 | |||||||
26-Mar-12 | Common Stock issued for license agreement | $ | 4,583 | 45,833 | |||||||
31-Mar-12 | Common Stock issued for debenture interest | $ | 4,442 | 49,354 | |||||||
2-Apr-12 | Common Stock issued for cash | $ | 10,000 | 200,000 | |||||||
10-Apr-12 | Common Stock issued for services | $ | 740,514 | 6,170,950 | |||||||
20-Apr-12 | Common Stock issued for services | $ | 180,000 | 1,500,000 | |||||||
27-Apr-12 | Common Stock issued for services | $ | 42,000 | 350,000 | |||||||
30-Apr-12 | Common stock issued in conversion of debenture | $ | 100,000 | 250,000 | |||||||
1-May-12 | Common Stock issued for license agreement | $ | 41,709 | 595,836 | |||||||
7-Jun-12 | Common Stock issued for cash | $ | 15,000 | 1,500,000 | |||||||
15-Jun-12 | Common Stock issued for cash | $ | 100,000 | 10,000,000 | |||||||
30-Jun-12 | Common Stock issued for cash | $ | 100,000 | 10,000,000 | |||||||
30-Jun-12 | Common Stock issued for debenture interest | $ | 1,763 | 44,063 | |||||||
4-Sep-12 | Common stock issued as partial conversion of debenture | $ | 12,000 | 2,033,898 | |||||||
30-Sep-12 | Common Stock issued for debenture interest | $ | 228 | 41,545 | |||||||
31-Dec-12 | Common Stock issued for debenture interest | $ | 206 | 41,545 | |||||||
Total 2012 | 40,308,746 | ||||||||||
14-Mar-13 | Common Stock issued for services | $ | 7,200 | 1,000,000 | |||||||
31-Mar-13 | Common Stock issued for debenture interest | $ | 1,145 | 40,875 | |||||||
10-May-13 | Reverse issuance of common stock in lieu of debenture interest and issued Series C preferred stock instead | $ | (234 | ) | (18,000 | ) | |||||
30-Jun-13 | Common Stock issued for debenture interest | $ | 1,774 | 34,875 | |||||||
2-Aug-13 | Common stock issued as partial conversion of debenture | $ | 15,000 | 815,217 | |||||||
6-Aug-13 | Common Stock issued as conversion of Series C Stock | $ | 56,000 | 11,200,000 | |||||||
20-Aug-13 | Common stock issued as partial conversion of debenture | $ | 15,000 | 574,713 | |||||||
20-Aug-13 | Common Stock issued as conversion of Series C Stock | $ | 11,500 | 2,300,000 | |||||||
23-Aug-13 | Common stock issued as partial conversion of debenture | $ | 8,250 | 316,092 | |||||||
26-Aug-13 | Common Stock issued as conversion of Series C Stock | $ | 10,000 | 2,000,000 | |||||||
3-Sep-13 | Common stock issued in conversion of debenture | $ | 16,900 | 744,493 | |||||||
16-Sep-13 | Common stock issued as partial conversion of debenture | $ | 12,000 | 1,061,947 | |||||||
17-Sep-13 | Common Stock issued as conversion of Series C Stock | $ | 16,000 | 3,200,000 | |||||||
23-Sep-13 | Common stock issued as partial conversion of debenture | $ | 20,000 | 1,980,198 | |||||||
27-Sep-13 | Common stock issued in conversion of debenture | $ | 10,350 | 1,162,921 | |||||||
30-Sep-13 | Common Stock issued for debenture interest | $ | 645 | 34,875 | |||||||
Total for 9 months ended Sept. 30, 2013 | 26,448,206 | ||||||||||
Preferred Stock Issued | |||||||||||
On March 9, 2013 the Company issued 80,000 shares Series B Stock in exchange for all of the shares of AAPS. | |||||||||||
On May 10, 2013 the Company issued 2,740 shares Series C Stock in exchange for multiple transactions involving cash purchases, conversions of debentures and related interest, and conversions of warrants issued. | |||||||||||
On July 3, 2013 the Company issued 200 Series C Stock in exchange for services. | |||||||||||
Stock Incentive Plan | |||||||||||
In 2010, the Company adopted its Stock Incentive Plan (the “Plan”). Under the Plan, at September 30, 2013 the Company had 4,000,000 shares approved and reserved for the issuance of stock options to employees, officers, directors and outside advisors. Under the Plan, the options may be granted to purchase shares of common stock at fair market value at the date of grant. | |||||||||||
At September 30, 2013 and December 31, 2012 the Company had 367,000 and 722,000 option shares outstanding, respectively, and 3,633,000 and 3,278,000 available for issuance at September 30, 2013 and December 31, 2012, respectively. | |||||||||||
On February 9, 2012 the Company adopted the 2012 Stock Incentive Plan (the “2012 Plan”). Under the 2012 Plan the Company had 10,000,000 shares and shares underlying stock options approved and reserved for the issuance to employees, officers, directors and outside advisors. At September 30, 2013 the Company had 6,170,950 shares issued under the 2012 Plan and 3,829,050 available for issuance. |
Debt_Obligations
Debt Obligations | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Obligations | ' | ||||||||
4. Debt Obligations | |||||||||
Convertible Debentures | |||||||||
In August 2010, in a series of transactions, the Company issued five unsecured, convertible debentures, with an aggregate principal balance of $500,000, with interest rates of 8% per annum and a maturity date of August 2013. The debentures are convertible into shares of the Company’s stock at a conversion price of $0.50 per share. Also, in August 2010, the Company issued an unsecured, convertible debenture in the principal amount of $500,000 with an interest rate of 8% and a maturity date of August 2013. The debenture is convertible into shares of the Company’s stock at a conversion price of $0.40 per share. Interest on the above debentures is payable quarterly. At the Company’s option, interest due may be settled in cash or shares of Company common stock. | |||||||||
In January 2011, the debenture holders of aggregate $525,000 principal amount of 8% convertible debentures elected to convert their debentures into 1,300,000 shares of common stock. | |||||||||
On March 2, 2012, the Company issued an 8% convertible debenture, with a principal balance of $47,500, and a maturity date of November 29, 2012. | |||||||||
On April 25, 2012, the Company issued an 8% convertible debenture, with a principal balance of $27,500, and a maturity date of January 18, 2013. | |||||||||
On April 30, 2012, the debenture holder of $350,000 principal amount of 14% convertible debenture elected to convert $100,000 of the debenture into 250,000 shares of common stock. | |||||||||
On July 24, 2012, the Company issued an 8% convertible debenture, with a principal balance of $27,500, and a maturity date of April 19, 2013. | |||||||||
On September 4, 2012, the Company issued 2,033,898 shares of common stock following the conversion of $12,000 of a $47,500 8% convertible debenture. | |||||||||
On May 10, 2013, the Company issued 1,615 shares of Series C Stock in exchange for a $150,000 8% convertible debenture and accrued interest. | |||||||||
On September 9, 2013, the Company issued an 8% convertible debenture, with a principal balance of $27,500, and a maturity date of June 9, 2013. | |||||||||
A loan default fee was assessed by a lender and added to the principal amount of certain debentures totaling $45,250, due to failure to meet debenture agreement requirements in filing SEC reports timely. The fee was charged to operations during the third quarter ended September 30, 2013. | |||||||||
At September 30, 2013, an aggregate of $393,750 and $250,000 principal amount 8% and 14% convertible debentures, respectively, were outstanding. | |||||||||
Debt Discount | |||||||||
On February 23, 2012, the Company issued an 8% convertible debenture that was subject to derivative liability accounting. Using the Black-Scholes option pricing model, a fair value of the debenture’s beneficial conversion feature was determined to be $34,397 and has been recorded as debt discount. | |||||||||
On April 25, 2012 the Company issued an 8% convertible debenture that was subject to derivative liability accounting. Using the Black-Scholes option pricing model, the fair value of the debenture’s beneficial conversion feature was determined to be $27,500 and has been recorded as debt discount. | |||||||||
On April 30, 2012 following the conversion of $100,000 principal amount 14% debenture, the Company accelerated debt discount amortization of $56,333 to interest expense. | |||||||||
On July 24, 2012 the Company issued an 8% convertible debenture that was subject to derivative liability accounting. Using the Black-Scholes option pricing model, the fair value of the debenture’s beneficial conversion feature was determined to be $27,500 and has been recorded as debt discount. | |||||||||
On September 4, 2012 following the conversion of $12,000 principal amount 8% debenture, the Company accelerated debt discount amortization of $2,747 to interest expense. | |||||||||
On September 9, 2013 the Company issued an 8% convertible debenture that was subject to derivative liability accounting. Using the Black-Scholes option pricing model, the fair value of the debenture’s beneficial conversion feature was determined to be $26,422 and has been recorded as debt discount. | |||||||||
For the nine month periods ended September 30, 2013 and 2012, the Company amortized to interest expense using the effective interest method $162,099 and $303,347 of the debt discount related to the convertible debentures that included $11,974 and $59,080 of accelerated debt discount amortization, respectively, due to converted debenture amounts. | |||||||||
At September 30, 2013 and December 31, 2012, the aggregate unamortized debt discount was $24,390 and $160,067, respectively. The unamortized debt discount at September 30, 2013 is being amortized to interest expense using the effective interest method through the earlier of the conversion date or the maturity dates of the convertible debentures. | |||||||||
The following table summarizes the principal, unamortized debt discount and equity components of the Company’s convertible debentures derivative liability net carrying amount: | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Principal amount 8% convertible debenture short term | $ | 393,750 | $ | 565,500 | |||||
Principal amount 14% convertible debenture | 250,000 | 250,000 | |||||||
Unamortized debt discount | (24,390 | ) | (160,067 | ) | |||||
Net carrying amount | $ | 619,360 | $ | 655,433 | |||||
Equity component (recognized in additional paid-in capital) | $ | 905,950 | $ | 879,528 |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
5. Commitments and Contingencies | |
The Company leased space for certain of its offices and airport facilities under leases expiring from one month to two years after September 30, 2013. In 2012, the Company abandoned the leased properties but remain still liable for unpaid rent which has been accrued. | |
The Company has, from time to time, been involved in legal proceedings, claims, and litigation that have occurred in the normal course of business. The Company routinely assesses its liabilities and contingencies in connection with these matters based upon the latest available information and, when necessary, seeks input from its third-party advisors when making these assessments. Described below are material pending legal proceedings (other than ordinary routine litigation incidental to the Company’s business), material proceedings known to be contemplated by governmental authorities, other proceedings arising under federal, state, or local environmental laws and regulations (including governmental proceedings involving potential fines, penalties, or other monetary sanctions in excess of $10,000) and such other pending matters that we may determine to be appropriate. | |
On April 26, 2012, a judgment was entered against our subsidiary, Pet Airways, Inc., in Circuit Court in and for Palm Beach County, Florida by Sky Way Enterprises, Inc. in the sum of $194,427 for services rendered, damages, including costs, statutory interest and attorneys’ fees. The aggregate amount is reflected in the balance sheet under ‘litigation accrual, discontinued operations’. | |
On March 4, 2013, a judgment was entered against our subsidiary, Pet Airways, Inc., in District Court of Douglas County, Nebraska by Suburban Air Freight in the sum of $88,547 for services rendered, including statutory interest and attorneys’ fees. The aggregate amount is reflected in the balance sheet under ‘litigation accrual, discontinued operations’. | |
On March 6, 2013, an order was issued a by the labor commissioner of the State of California for our subsidiary, Pet Airways, Inc., to pay a former employee Alyce Tognotti wages and penalties in the sum of $18,365 for services rendered, including penalties, statutory interest and liquidated damages. The aggregate amount is reflected in the balance sheet under ‘litigation accural, discontinued operations’. | |
On May 31, 2013, a motion for final judgment was filed against our subsidiary, Pet Airways, Inc., in Circuit Court in and for Broward County, Florida by AFCO Cargo BWI, LLC in the sum of $31,614 for services rendered, including statutory interest and attorneys’ fees. The aggregate amount is reflected in the balance sheet under ‘litigation accrual, discontinued operations’. | |
Other than the foregoing, there were no claims, actions, or lawsuits which to our knowledge are pending or threatened that could reasonably be expected to have a material effect on the results of our operations. The Company is self-insured and has not accrued a reserve against potential losses from unknown risks and liabilities. |
Net_Loss_per_Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' |
Net Loss per Share | ' |
6. Net loss per share | |
Basic earnings per share are calculated by dividing income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon conversion of preferred shares, exercise of stock options and warrants (calculated using the reverse treasury stock method). As of September 30, 2013 there were warrants and options outstanding to purchase 36.1 million shares, which exercise price averaged $0.67. The dilutive common shares equivalents, including convertible notes, preferred stock, options and warrants, of 412.6 million shares were not included in the computation of diluted earnings per share, because the inclusion would be anti-dilutive. | |
If all dilutive instruments were exercised using the reverse treasury stock method, then the total number of shares outstanding would be 506.8 million shares. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
7. Subsequent Events | |
Subsequent to September 30, 2013, the company issued a total of 5,833,333 shares of Common Stock as partial conversion of a debenture. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Presentation | ' | ||
Basis of Presentation | |||
The accompanying unaudited condensed consolidated financial statements of The PAWS Pet Company, Inc. (the “Company”), formerly known as Pet Airways, Inc., and its wholly owned subsidiaries Pet Airways, Inc. (“Pet Airways”), Advanced Access Pharmacy Services, LLC (“AAPS”) and Impact Social Networking, Inc.(“ISN”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. In the opinion of the Company’s management, the accompanying condensed consolidation financial statements reflect all adjustments, consisting of normal, recurring adjustments, considered necessary for a fair presentation of the results for the interim periods ended September 30, 2013 and 2012 and for the period from the inception of the development stage (February 1, 2012) to September 30, 2013. Although management believes that the disclosures in these unaudited condensed consolidated financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in financial statements that have been prepared in accordance GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The results for the nine month period ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013 and for the period from the inception of the development stage (February 1, 2012) to December 31, 2013. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2012. | |||
Certain prior period amounts have been reclassified or adjusted to conform to the current presentation. These reclassifications and adjustments had no material impact on the consolidated financial position, results of operations and net cash flows from operations for all periods presented. | |||
Going Concern Matters | ' | ||
Going Concern Matters | |||
The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company does not presently have adequate cash from operations or financing activities to meet its long-term financing needs. For the nine month period ended September 30, 2013 and the year ended December 31, 2012, the Company had $8,301 and $81,755, respectively, in cash and cash equivalents to use in executing its business plan at September 30, 2013 and December 31, 2012, respectively. As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $5,393,215 for the nine months ended September 30, 2013 and a net loss during the development stage from inception (February 1, 2012) through September 30, 2013 of $6,229,603. As a result of these and other factors, the Company’s independent registered public accounting firm has included an explanatory paragraph in their audited consolidated financial statements and footnotes in the Annual Report on Form 10-K for the year ended December 31, 2012 as to the substantial doubt about the Company’s ability to continue as a going concern. | |||
The Company will require additional working capital to continue its operations during the next 12 months and to support its long-term growth strategies. Since the company was unable to meet the conditions permitted to make draw downs under its financing arrangement with Socius, the Company needs to seek alternative funding required through one or more sources and credit facilities, if available, or through the sale of debt or issuance of additional equity securities. However, there is no assurance that funding of any type would be available to the Company, or that it would be available at rates or other terms and conditions that would be financially acceptable and viable to the Company in the long term. If the Company is unable to raise the necessary additional financing when needed, the Company may be required to stop developing technologies, sell assets or enter into a merger or other combination with a third party, any of which could adversely affect the value of its common stock, or render it worthless. If the Company issues additional debt or equity securities, such securities may enjoy rights, privileges and priorities (including but not limited to coupon rates, conversion rights, rights to fixed or preferential dividends, anti-dilution rights or preference as to the distribution of assets upon a liquidation) superior to those enjoyed by holders of the Company’s common stock, thereby diluting the value of the Company’s common stock. | |||
The Company’s prospects must be considered in light of the risks, expenses and difficulties encountered by companies at an early stage of development, particularly given that the Company has limited financial resources. The Company may not be successful in addressing such risks and difficulties. | |||
Critical Accounting Policies and Estimates | ' | ||
Critical Accounting Policies and Estimates | |||
The preparation of the Company’s unaudited condensed consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. The Company based these estimates and assumptions on historical experience and evaluates them on an on-going basis to ensure they remain reasonable under current conditions. Actual results could differ from those estimates. Critical accounting policies and estimates are summarized below. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
The Company recognizes revenue when the earnings process is completed. The Company is not currently generating revenue. | |||
Derivative Liabilities | ' | ||
Derivative Liabilities | |||
The Company has utilized convertible debentures with warrants to purchase shares of common stock to settle certain liabilities and fund operations resulting in the recording of a derivative liability. Current guidance for valuing and classifying transactions of this type includes Accounting Standards Codification (“ASC”)470-20 “Debt with Conversion and Other Options”. Accordingly, the Company has used the Black-Scholes option-pricing model as its method of determining the fair value of the convertible debenture issued with a warrant. The resulting calculation of the beneficial conversion feature (“BCF”) and warrant equity component are recorded to additional paid in capital (“APIC”) with an offset discount to the principal value of the convertible debenture. The Company has used the effective yield interest method for amortizing the discount to interest expense over the maturity term of the convertible debenture. The Company records to interest expense the unamortized discount value associated with a debenture converted in a period. | |||
The Company accounts for certain of its warrants (see Note 2, Equity, Socius CG II, Ltd. Financing) as derivatives under the guidance of ASC 815-10, Accounting for Derivative Instruments and Hedging Activities, and ASC 815-40, Contracts in an Entity’s Own Stock. | |||
Accruals for Contingent Liabilities | ' | ||
Accruals for Contingent Liabilities | |||
The Company makes estimates of liabilities that arise from various contingencies for which values are not fully known at the date of the accrual or during the periodic financial planning and analysis cycle. These contingencies may include, but are not limited, to accruals for reserves for expenses, costs and awards involving legal settlements. Events may occur that are resolved over a period of time or on a specific future date. Management makes estimates using the facts available of the probability of the outcomes and range of cost, if measureable, of these occurrences and charges them to expense in the appropriate periods. If the ultimate resolution of any event is different than management’s estimate caused by a change in facts or material operating assumptions, corresponding entries to earnings may be required. | |||
Equity Based Compensation | ' | ||
Equity Based Compensation | |||
The Company applies ASC 718-10 Stock Compensation and ASC 505-50 Equity Based Payments to Non-Employees in accounting for stock options issued to employees and non-employees, respectively. For stock options and warrants issued to non-employees, the Company applies the same standard, which requires the recognition of compensation cost based upon the fair value of stock options and warrant at the grant date using the Black-Scholes option pricing model. The Company’s determination of fair value of share-based payment awards on the date of grant using the option-pricing model is affected by its equity price as well as assumptions regarding its expected equity price volatility over the term of the awards, the selection of a risk free interest rate, the ultimate disposition of the award and the impact of the award on earnings per share. For example, in calculating the expected equity price volatility, the Company may consider using its historical experience only, its experience plus that of a publicly trade index volatility experience, or a blended volatility experience for public peer companies. The Company also evaluates carefully the expected life term of an award though the vesting of awards to date have been immediate. Finally, the Company attempts to use a risk free rate that is widely quoted and pertinent across a broad range of transactions. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at financial institutions that are insured by the Federal Deposit Insurance Corporation. | |||
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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. | |||
Reservation System and Development Costs | ' | ||
Reservation System and Development Costs | |||
The Company accounts for its reservation system (“website”) and development costs in accordance with ASC 350-50 “Website Development Costs.“All costs incurred in the planning stage are expensed as incurred. Costs incurred in the website application and infrastructure development stage are accounted for in accordance with ASC 350-50, which requires the capitalization of certain costs that meet specific criteria. Costs incurred in the day to day operation of the website are expensed as incurred. Costs associated with the development of the Company’s social media application were expensed in the month when they incurred. | |||
Fair Value Measurements | ' | ||
Fair Value Measurements | |||
The Company has adopted a single definition of fair value, a framework for measuring fair value, and expanded disclosures concerning fair value. In this valuation, the exchange price is the price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date and fair value is a market-based measurement and not an entity-specific measurement. | |||
The Company utilizes the following hierarchy in fair value measurements: | |||
● | Level 1 – Inputs use quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. | ||
● | Level 2 – Inputs use other inputs that are observable, either directly or indirectly. These inputs include quoted prices for similar assets and liabilities in active markets as well as other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. | ||
● | Level 3 – Inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. | ||
Depreciation, Amortization and Capitalization | ' | ||
Depreciation, Amortization and Capitalization | |||
The Company records depreciation and amortization, when appropriate, using the straight-line method over the estimated useful life of the assets (three to five years). Expenditures for maintenance and repairs are charged to expense as incurred. Additions, major renewals and replacements that increase the property’s useful life are capitalized. Property sold or retired, together with the related accumulated depreciation is removed from the appropriate accounts and the resultant gain or loss is included in operating income or loss. | |||
Long-Lived Assets | ' | ||
Long-Lived Assets | |||
The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful life of its trademark costs. If and when such factors, events or circumstances indicate possible impairment to its trademark costs, the Company would make an estimate of undiscounted cash flows over the remaining lives of the respective assets in measuring recoverability from future operations. The Company incurred no impairment losses during 2013. The Company incurred $1,035,168 of impairment losses for the nine months ended September 30, 2012 and for the period from the inception of the development stage (February 1, 2012) to September 30, 2013, respectively. | |||
Income Taxes | ' | ||
Income Taxes | |||
The Company follows ASC 740, Income Taxes, therefore, deferred tax assets or liabilities are recorded to reflect the future tax consequences of temporary differences between the financial reporting basis of assets and liabilities and their tax basis at each year-end. These amounts are adjusted, as appropriate, to reflect enacted changes in tax rates expected to be in effect when the temporary differences reverse. | |||
The Company records deferred tax assets and liabilities based on the differences between the financial statement and tax bases of assets and liabilities and on operating loss carry forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying condensed consolidated financial statements. |
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Schedule of Warrants Outstanding | ' | ||||||||||
The following table shows all warrants outstanding with their issuance date and exercise price. | |||||||||||
Date issued | Exercise price | Number of shares | |||||||||
3-Jun-11 | $ | 1.02 | 20,476,707 | ||||||||
29-Dec-11 | $ | 0.2 | 458,678 | ||||||||
3-Feb-12 | $ | 0.14 | 4,336,503 | ||||||||
2-Mar-12 | $ | 0.14 | 252,449 | ||||||||
2-Apr-12 | $ | 0.05 | 53,811 | ||||||||
10-Apr-12 | $ | 0.12 | 3,995,247 | ||||||||
20-Apr-12 | $ | 0.12 | 405,839 | ||||||||
20-Apr-12 | $ | 0.12 | 828,089 | ||||||||
25-Apr-12 | $ | 0.12 | 184,335 | ||||||||
27-Apr-12 | $ | 0.12 | 302,046 | ||||||||
7-Jun-12 | $ | 0.01 | 109,489 | ||||||||
15-Jun-12 | $ | 0.01 | 733,848 | ||||||||
30-Jun-12 | $ | 0.01 | 761,126 | ||||||||
24-Jul-12 | $ | 0.01 | 217,390 | ||||||||
1-Sep-12 | $ | 0.01 | 219,723 | ||||||||
Total | 33,335,280 | ||||||||||
Schedule of Common Stock Issued | ' | ||||||||||
The Company has issued common stock various times during 2012 and 2013, the following table shows each date, reason for issuance, fair value of the transaction and number of shares issued: | |||||||||||
Date issued | Reason for issuance | Fair value | Number of shares | ||||||||
26-Jan-12 | Common Stock issued for license agreement | $ | 5,500 | 45,833 | |||||||
23-Feb-12 | Common Stock issued in acquisition of subsidiary | $ | 1,035,168 | 7,394,056 | |||||||
26-Feb-12 | Common Stock issued for license agreement | $ | 6,417 | 45,833 | |||||||
26-Mar-12 | Common Stock issued for license agreement | $ | 4,583 | 45,833 | |||||||
31-Mar-12 | Common Stock issued for debenture interest | $ | 4,442 | 49,354 | |||||||
2-Apr-12 | Common Stock issued for cash | $ | 10,000 | 200,000 | |||||||
10-Apr-12 | Common Stock issued for services | $ | 740,514 | 6,170,950 | |||||||
20-Apr-12 | Common Stock issued for services | $ | 180,000 | 1,500,000 | |||||||
27-Apr-12 | Common Stock issued for services | $ | 42,000 | 350,000 | |||||||
30-Apr-12 | Common stock issued in conversion of debenture | $ | 100,000 | 250,000 | |||||||
1-May-12 | Common Stock issued for license agreement | $ | 41,709 | 595,836 | |||||||
7-Jun-12 | Common Stock issued for cash | $ | 15,000 | 1,500,000 | |||||||
15-Jun-12 | Common Stock issued for cash | $ | 100,000 | 10,000,000 | |||||||
30-Jun-12 | Common Stock issued for cash | $ | 100,000 | 10,000,000 | |||||||
30-Jun-12 | Common Stock issued for debenture interest | $ | 1,763 | 44,063 | |||||||
4-Sep-12 | Common stock issued as partial conversion of debenture | $ | 12,000 | 2,033,898 | |||||||
30-Sep-12 | Common Stock issued for debenture interest | $ | 228 | 41,545 | |||||||
31-Dec-12 | Common Stock issued for debenture interest | $ | 206 | 41,545 | |||||||
Total 2012 | 40,308,746 | ||||||||||
14-Mar-13 | Common Stock issued for services | $ | 7,200 | 1,000,000 | |||||||
31-Mar-13 | Common Stock issued for debenture interest | $ | 1,145 | 40,875 | |||||||
10-May-13 | Reverse issuance of common stock in lieu of debenture interest and issued Series C preferred stock instead | $ | (234 | ) | (18,000 | ) | |||||
30-Jun-13 | Common Stock issued for debenture interest | $ | 1,774 | 34,875 | |||||||
2-Aug-13 | Common stock issued as partial conversion of debenture | $ | 15,000 | 815,217 | |||||||
6-Aug-13 | Common Stock issued as conversion of Series C Stock | $ | 56,000 | 11,200,000 | |||||||
20-Aug-13 | Common stock issued as partial conversion of debenture | $ | 15,000 | 574,713 | |||||||
20-Aug-13 | Common Stock issued as conversion of Series C Stock | $ | 11,500 | 2,300,000 | |||||||
23-Aug-13 | Common stock issued as partial conversion of debenture | $ | 8,250 | 316,092 | |||||||
26-Aug-13 | Common Stock issued as conversion of Series C Stock | $ | 10,000 | 2,000,000 | |||||||
3-Sep-13 | Common stock issued in conversion of debenture | $ | 16,900 | 744,493 | |||||||
16-Sep-13 | Common stock issued as partial conversion of debenture | $ | 12,000 | 1,061,947 | |||||||
17-Sep-13 | Common Stock issued as conversion of Series C Stock | $ | 16,000 | 3,200,000 | |||||||
23-Sep-13 | Common stock issued as partial conversion of debenture | $ | 20,000 | 1,980,198 | |||||||
27-Sep-13 | Common stock issued in conversion of debenture | $ | 10,350 | 1,162,921 | |||||||
30-Sep-13 | Common Stock issued for debenture interest | $ | 645 | 34,875 | |||||||
Total for 9 months ended Sept. 30, 2013 | 26,448,206 |
Debt_Obligations_Tables
Debt Obligations (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Principal Unamortized Debt Discount and Equity Components | ' | ||||||||
The following table summarizes the principal, unamortized debt discount and equity components of the Company’s convertible debentures derivative liability net carrying amount: | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Principal amount 8% convertible debenture short term | $ | 393,750 | $ | 565,500 | |||||
Principal amount 14% convertible debenture | 250,000 | 250,000 | |||||||
Unamortized debt discount | (24,390 | ) | (160,067 | ) | |||||
Net carrying amount | $ | 619,360 | $ | 655,433 | |||||
Equity component (recognized in additional paid-in capital) | $ | 905,950 | $ | 879,528 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 20 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $8,301 | $92,981 | $8,301 | $92,981 | $8,301 | $81,755 | $48,520 | $38,256 |
Net loss | -1,196,234 | -256,085 | 5,393,215 | 1,093,049 | 6,229,603 | ' | ' | ' |
Impairment of losses of long lived assets | ' | ' | ' | $1,035,168 | $1,035,168 | ' | ' | ' |
Business_Overview_and_Organiza1
Business Overview and Organizational History (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 20 Months Ended | 0 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 29, 2013 | Dec. 31, 2012 | Jul. 13, 2012 | Mar. 09, 2013 | Feb. 23, 2012 | Mar. 09, 2013 | Aug. 13, 2010 | |
Advanced Access Pharmacy Services, LLC [Mmeber] | Impact Social Networking Inc [Member] | Advanced Access Pharmacy Services, LLC [Mmeber] | Pet Airways [Member] | |||||||||
Issuance of shares in business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,394,056 | ' | 25,000,000 |
Value of shares exchanged in business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,035,168 | ' | ' |
Issuance of Series B Comvertible Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' |
Busainess acquisition, transaction expense | ' | ' | ($1,720,000) | ' | ($1,720,000) | ' | ' | ' | ' | ' | $1,720,000 | ' |
Common stock, shares authorized | 1,100,000,000 | ' | 1,100,000,000 | ' | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | 350,000,000 | ' | ' | ' | ' |
Issuance of capital stock on exchange of ownership is equal to percentage of post acquisition issued and outstanding capital stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73.00% |
Equity_Details_Narrative
Equity (Details Narrative) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||||||||
Mar. 14, 2013 | Apr. 27, 2012 | Apr. 20, 2012 | Apr. 10, 2012 | Jun. 03, 2011 | Sep. 30, 2013 | 10-May-13 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 02, 2012 | Jul. 24, 2012 | Jun. 30, 2012 | Jun. 15, 2012 | Jun. 07, 2012 | Apr. 25, 2012 | Apr. 02, 2012 | Mar. 31, 2012 | Mar. 02, 2012 | Feb. 03, 2012 | Dec. 31, 2011 | Dec. 29, 2011 | Aug. 18, 2011 | Jun. 30, 2011 | Jun. 02, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 09, 2012 | Mar. 09, 2013 | Sep. 30, 2011 | Jun. 03, 2011 | 15-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | 27-May-11 | Jul. 03, 2013 | Sep. 30, 2013 | 15-May-13 | Dec. 31, 2012 | |
2010 Stock Incentive Plan [Member] | 2012 Stock Incentive Plan [Member] | 2012 Stock Incentive Plan [Member] | Advanced Access Pharmacy Services, LLC [Mmeber] | Warrant [Member] | Warrant [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | |||||||||||||||||||||||||
Preferred stock shares designated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' | ' | 500 | ' | ' | 50,000 | ' |
Preferred stock conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
In no event shall the Conversion Ratio be less than four thousand, three hundred (4,300) shares of Common Stock and in no event shall the Conversion Ratio be more than ten thousand (10,000) shares of Common Stock | ||||||||||||||||||||||||||||||||||||||||
Conversion ratio of common stock, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion ratio of common stock, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock liquidation per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30 | ' | ' | ' | ' | ' | ' | ' | $100 | ' |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | 0 | 0 | 0 | ' | ' | 2,005 | ' | 0 |
Conversion price per share of common stock, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' |
Conversion price per share of common stock, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' |
Percentage of preferred stock dividends | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pereferred stock redemption price per share | ' | ' | ' | ' | ' | $10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fund raising from secured debt | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period for consideration of secured debt | ' | ' | ' | ' | 2,253,470 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant to purchase maximum number of common stock | ' | ' | ' | ' | 20,476,707 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, price per share | ' | ' | ' | ' | $10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants, exercise price | ' | 0.12 | 0.12 | 0.12 | 1.02 | ' | ' | ' | ' | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.12 | 0.05 | ' | 0.14 | 0.14 | ' | 0.2 | ' | ' | ' | ' | ' | ' | ' | 0.65 | 0.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional payment to purchase non-convertible Preferred Stock | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of maximum amount funded under tranche | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock initial purchase consideration of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,126,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock consideration at fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 371,823 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock closing price per share | ' | ' | ' | ' | $0.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period for contingent consideration, shares | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period for contingent consideration | ' | ' | ' | ' | 1,260,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants charge to operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,839,860 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional paid in capital | ' | ' | ' | ' | ' | 16,116,215 | ' | 11,566,930 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 470,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred finance costs net | ' | ' | ' | ' | ' | ' | ' | ' | 427,073 | ' | ' | ' | ' | ' | ' | ' | 427,073 | ' | ' | 427,073 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative warrant liability value | ' | ' | ' | ' | ' | $616,388 | ' | $248,368 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Series B Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued for services | 1,000,000 | 350,000 | 1,500,000 | 6,170,950 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 | ' | ' | ' |
Shares approved and reserved for issuance under employee benefit plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options outstanding | ' | ' | ' | ' | ' | 367,000 | ' | 722,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issed under the employee benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,170,950 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for issuance under the employee benefit plans | ' | ' | ' | ' | ' | 3,633,000 | ' | 3,278,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,829,050 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares issued for cash, debenture interest and warrants | ' | ' | ' | ' | ' | ' | 2,740 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity_Schedule_of_Warrants_Ou
Equity - Schedule of Warrants Outstanding (Details) | Sep. 30, 2013 | Sep. 02, 2012 | Jul. 24, 2012 | Jun. 30, 2012 | Jun. 15, 2012 | Jun. 07, 2012 | Apr. 27, 2012 | Apr. 25, 2012 | Apr. 20, 2012 | Apr. 10, 2012 | Apr. 02, 2012 | Mar. 02, 2012 | Feb. 03, 2012 | Dec. 29, 2011 | Jun. 03, 2011 |
Exercise price | ' | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.12 | 0.12 | 0.12 | 0.12 | 0.05 | 0.14 | 0.14 | 0.2 | 1.02 |
Number of shares | 33,335,280 | 219,723 | 217,390 | 761,126 | 733,848 | 109,489 | 302,046 | 184,335 | 828,089 | 3,995,247 | 53,811 | 252,449 | 4,336,503 | 458,678 | 20,476,707 |
Share Warrants [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | ' | ' | ' | ' | ' | ' | ' | ' | 0.12 | ' | ' | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | 405,839 | ' | ' | ' | ' | ' | ' |
Equity_Schedule_of_Common_Stoc
Equity - Schedule of Common Stock Issued (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 27, 2013 | Sep. 23, 2013 | Sep. 16, 2013 | Sep. 17, 2013 | Sep. 03, 2013 | Aug. 26, 2013 | Aug. 23, 2013 | Aug. 20, 2013 | Aug. 06, 2013 | Aug. 02, 2013 | Jun. 30, 2013 | 10-May-13 | Mar. 31, 2013 | Mar. 14, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 04, 2012 | Jun. 30, 2012 | Jun. 15, 2012 | Jun. 07, 2012 | 2-May-12 | Apr. 30, 2012 | Apr. 27, 2012 | Apr. 20, 2012 | Apr. 10, 2012 | Apr. 02, 2012 | Mar. 31, 2012 | Mar. 26, 2012 | Feb. 26, 2012 | Feb. 23, 2012 | Jan. 26, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock issued for license agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $41,709 | ' | ' | ' | ' | ' | ' | $4,583 | $6,417 | ' | $5,500 | ' | ' |
Common Stock issued in acquisition of subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,035,168 | ' | ' | ' |
Common Stock issued for debenture interest | 645 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,774 | ' | 1,145 | ' | 206 | 228 | ' | 1,763 | ' | ' | ' | ' | ' | ' | ' | ' | 4,442 | ' | ' | ' | ' | ' | ' |
Common Stock issued for cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | 15,000 | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' |
Common Stock issued for services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,200 | ' | ' | ' | ' | ' | ' | ' | ' | 42,000 | 180,000 | 740,514 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in conversion of debenture | ' | 10,350 | ' | ' | ' | 16,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued as partial conversion of debenture | ' | ' | 20,000 | 12,000 | ' | ' | ' | 8,250 | 15,000 | ' | 15,000 | ' | ' | ' | ' | ' | ' | 12,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse issuance of common stock in lieu of debenture interest and issued Series C preferred stock instead | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -234 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock issued as conversion of Series C Stock | ' | ' | ' | ' | $16,000 | ' | $10,000 | ' | $11,500 | $56,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock issued for license agreement, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 595,836 | ' | ' | ' | ' | ' | ' | 45,833 | 45,833 | ' | 45,833 | ' | ' |
Common Stock issued in acquisition of subsidiary, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,394,056 | ' | ' | ' |
Common Stock issued for debenture interest, shares | 34,875 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,875 | ' | 40,875 | ' | 41,545 | 41,545 | ' | 44,063 | ' | ' | ' | ' | ' | ' | ' | ' | 49,354 | ' | ' | ' | ' | ' | ' |
Common Stock issued for cash, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 10,000,000 | 1,500,000 | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Common Stock issued for services, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | 1,500,000 | 6,170,950 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in conversion of debenture, shares | ' | 1,162,921 | ' | ' | ' | 744,493 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued as partial conversion of debenture, shares | ' | ' | 1,980,198 | 1,061,947 | ' | ' | ' | 316,092 | 574,713 | ' | 815,217 | ' | ' | ' | ' | ' | ' | 2,033,898 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse issuance of common stock in lieu of debenture interest and issued Series C preferred stock instead, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock issued as conversion of Series C Stock, shares | ' | ' | ' | ' | 3,200,000 | ' | 2,000,000 | ' | 2,300,000 | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,448,206 | 40,308,746 |
Debt_Obligations_Details_Narra
Debt Obligations (Details Narrative) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 20 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||
Sep. 09, 2013 | Sep. 04, 2012 | Jul. 24, 2012 | Apr. 30, 2012 | Apr. 25, 2012 | Mar. 02, 2012 | Jan. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 23, 2012 | 10-May-13 | Aug. 31, 2010 | Aug. 31, 2010 | Aug. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | |
Series C Preferred Stock [Member] | 5 Unsecured Convertible Debentures [Member] | 1 Unsecured Convertible Debentures [Member] | 1 Unsecured Convertible Debenture [Member] | 8 % Debenture [Member] | 14 % Debenture [Member] | |||||||||||||||
Principal amount of unsecured debenture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | $500,000 | ' | ' | ' |
Convertible debentures, interest rate | 8.00% | 8.00% | 8.00% | 14.00% | 8.00% | 8.00% | 8.00% | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | 8.00% | 8.00% | ' | 8.00% | 14.00% |
Conversion price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.40 | ' | ' | ' |
Debt, matuirty date | 9-Jun-13 | ' | 19-Apr-13 | ' | 18-Jan-13 | 29-Nov-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Aug-13 | ' | 31-Aug-13 | ' | ' |
Amount of debentures elected to convert | ' | 12,000 | ' | 100,000 | ' | ' | 525,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debentures converted into common stock | ' | 2,033,898 | ' | 250,000 | ' | ' | 1,300,000 | ' | ' | 6,655,581 | 2,283,898 | 8,939,479 | ' | ' | 1,615 | ' | ' | ' | ' | ' |
Debenture principal amount | 27,500 | 47,500 | 27,500 | 350,000 | 27,500 | 47,500 | ' | 619,360 | ' | 619,360 | ' | 619,360 | 655,433 | ' | 150,000 | ' | ' | ' | ' | ' |
Convertible debentures outstanding amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 393,750 | 250,000 |
Loan default fee | ' | ' | ' | ' | ' | ' | ' | 45,250 | ' | 45,250 | ' | 45,250 | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt discount | ' | ' | 27,500 | ' | 27,500 | ' | ' | 24,390 | ' | 24,390 | ' | 24,390 | 160,067 | 34,397 | ' | ' | ' | ' | ' | ' |
Amortized debt discount to interest expense | 26,422 | 2,747 | ' | 56,333 | ' | ' | ' | ' | ' | 162,099 | 303,347 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accelerated debt discount amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11,974 | $59,080 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Obligations_Schedule_of_P
Debt Obligations - Schedule of Principal Unamortized Debt Discount and Equity Components (Details) (USD $) | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 09, 2013 | Sep. 04, 2012 | Jul. 24, 2012 | Apr. 30, 2012 | Apr. 25, 2012 | Mar. 02, 2012 | Feb. 23, 2012 | |
Principal amount convertible debenture short term | $619,360 | $655,433 | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt discount | -24,390 | -160,067 | ' | ' | -27,500 | ' | -27,500 | ' | -34,397 |
Net carrying amount | 619,360 | 655,433 | 27,500 | 47,500 | 27,500 | 350,000 | 27,500 | 47,500 | ' |
Equity component (recognized in Additional paid-in capital) | 905,950 | 879,528 | ' | ' | ' | ' | ' | ' | ' |
Principal Amount 8% Convertible Debenture Short Term [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount convertible debenture short term | 393,750 | 565,500 | ' | ' | ' | ' | ' | ' | ' |
Principal Amount 14% Convertible Debenture [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount convertible debenture short term | $250,000 | $250,000 | ' | ' | ' | ' | ' | ' | ' |
Debt_Obligations_Schedule_of_P1
Debt Obligations - Schedule of Principal Unamortized Debt Discount and Equity Components (Details) (Parenthetical) | Sep. 09, 2013 | Sep. 04, 2012 | Jul. 24, 2012 | Apr. 30, 2012 | Apr. 25, 2012 | Mar. 02, 2012 | Feb. 23, 2012 | Jan. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Principal Amount 8% Convertible Debenture Short Term [Member] | Principal Amount 8% Convertible Debenture Short Term [Member] | Principal Amount 14% Convertible Debenture [Member] | Principal Amount 14% Convertible Debenture [Member] | |||||||||
Convertible debentures, interest rate | 8.00% | 8.00% | 8.00% | 14.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 14.00% | 14.00% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Narrative) (USD $) | Sep. 30, 2013 | 31-May-13 | Mar. 06, 2013 | Mar. 04, 2013 | Apr. 26, 2012 |
Pet Airways, Inc. [Member] | Pet Airways, Inc. [Member] | Pet Airways, Inc. [Member] | Pet Airways, Inc. [Member] | ||
Pending governmental proceedings involving potential fines penalties | $10,000 | ' | ' | ' | ' |
Judgment against subsidiary | ' | $31,614 | $18,365 | $88,547 | $194,427 |
Net_Loss_per_Share_Details_Nar
Net Loss per Share (Details Narrative) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' |
Outstanding warrants and options to purchase of shares | 36,100,000 |
Average exercise price of warrants and options | $0.67 |
Anti-diluted shares excluded from computation shares, number | 412,600,000 |
Total number of oustanding shares | 506,800,000 |
Subsequent_Events_Details_Narr
Subsequent Events (Details Narrative) (Common Stock [Member]) | 0 Months Ended |
Sep. 30, 2013 | |
Common Stock [Member] | ' |
Number of shares converted | 5,833,333 |