AudioEye (AEYE) 10-Q 17 Jul 15 2015 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2015	Jul. 15, 2015
Document And Entity Information
Entity Registrant Name	AUDIOEYE INC
Entity Central Index Key	1,362,190
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		81,517,530
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2015	Dec. 31, 2014
Current Assets
Cash	$ 760,277	$ 1,672,901
Accounts receivable, net	23,918	261,676
Related party receivables	10,000	10,000
Marketable securities held in related party	13,800	13,800
Non-marketable securities held in related party	50,000	50,000
Subscription receivable		1,175,000
Prepaid expenses and other current assets	139,399	90,688
Total Current Assets	997,394	3,274,065
Property and equipment, net	568	651
Intangible assets, net	2,993,083	3,097,293
Goodwill	700,528	700,528
Total Assets	4,691,573	7,072,537
Current Liabilities
Accounts payable and accrued expenses	505,726	779,891
Billings in excess of costs	32,500	123,908
Notes and loans payable-current	24,000	24,000
Related party payables	0	228,983
Total Current Liabilities	562,226	1,156,782
Long Term Liabilities
Notes and loans payable-long term	43,800	51,800
Total Long Term Liabilities	43,800	51,800
Total Liabilities	$ 606,026	$ 1,208,582
STOCKHOLDERS' EQUITY
Preferred stock, $0.00001 par value, 10,000,000 shares authorized, none issued and outstanding, as of March 31, 2015 and December 31, 2014, respectively
Common stock, $0.00001 par value, 250,000,000 shares authorized, 79,467,530 and 77,817,861 issued and outstanding, as of March 31, 2015 and December 31, 2014, respectively	$ 794	$ 778
Treasury stock	(623,000)	(623,000)
Additional paid in capital	24,759,845	23,516,463
Accumulated deficit	(20,052,092)	(17,030,286)
Total Stockholders' Equity	4,085,547	5,863,955
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 4,691,573	$ 7,072,537

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Preferred Stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common Stock, shares authorized	250,000,000	250,000,000
Common Stock, shares issued	79,467,530	77,817,861
Common Stock, shares outstanding	79,467,530	77,817,861

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 101,038	$ 42,527
Revenues from related party	0	3,125
Total revenues	101,038	45,652
Cost of revenues	462,131	41,153
Gross (Loss) Profit	(361,093)	4,499
Operating expenses:
Selling and marketing	366,368	270,383
Research and development	142,282	130,624
General and administrative expenses	2,021,226	1,667,600
Amortization and depreciation	133,944	99,273
Total operating expenses	2,663,820	2,167,880
Operating loss	(3,024,913)	(2,163,381)
Other income (expense)
Interest income (expense)	3,107	(6,983)
Total other income (expense)	3,107	(6,983)
Net loss	$ (3,021,806)	$ (2,170,364)
Net loss per common share - basic and diluted (in dollars per share)	$ (0.04)	$ (0.04)
Weighted average common shares outstanding - basic and diluted (in shares)	78,736,420	54,215,367

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash Flows from operating activities:
Net (loss)	$ (3,021,806)	$ (2,170,364)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	133,944	99,273
Stock, option and warrant expense	559,793	849,148
Common stock issued for services	314,663
Amortization of debt discount		1,155
Changes in operating assets and liabilities:
Accounts receivable	237,758	(649,841)
Related party receivable		(1,125)
Prepaid expenses and other current assets	(48,713)	(49,643)
Accounts payable and accruals	(274,164)	791,153
Billings in excess of costs	(91,408)	11,321
Related party payables	(228,983)	(156,424)
Net cash used in operating activities	(2,418,916)	(1,275,347)
Cash Flows from investing activities:
Cash paid for intangible assets	(29,650)	(113,476)
Net cash used in by investing activities	(29,650)	(113,476)
Cash Flows from financing activities:
Repayment of note payable	(8,000)	(160,000)
Issuance of common stock for cash	325,000	181,537
Collection of stock subscription receivable	1,175,000
Issuance of equity for cash exercise of options and warrants	43,942	13,000
Net cash provided by financing activities	1,535,942	34,537
Net decrease in cash	(912,624)	(1,354,286)
Cash - beginning of period	1,672,901	1,847,004
Cash - end of period	760,277	492,718
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	$ 307	$ 3,658

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2015
ORGANIZATION AND BASIS OF PRESENTATION
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION The accompanying unaudited interim financial statements of AudioEye, Inc. and its wholly-owned subsidiary (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on July 10, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended December 31, 2014 as reported in the Company’s Annual Report on Form 10-K have been omitted. Corporate Information and Background AudioEye, Inc. was formed as a Delaware corporation on May 20, 2005. The Company focuses on providing its customers with the most complete and inclusive web accessibility solution available. The Company’s suite of technologies allows its customers to provide their site visitors with an enhanced web experience. When implemented, the Company believes its solutions offer businesses the opportunity to reach more customers, improve brand image, and build additional brand loyalty. In addition, the Company’s solutions provide organizations with the ability to comply with internationally accepted web content accessibility guidelines (WCAG) as well as United States, Canadian and United Kingdom accessibility laws. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. Revenue Recognition Revenue is recognized when all applicable recognition criteria have been met, which generally include: (a) persuasive evidence of an existing arrangement; (b) a fixed or determinable price; (c) delivery has occurred or service has been rendered; and (d) the collectability of the sales price is reasonably assured. For software and technology development contracts where applicable, the Company recognizes revenues on a percentage of completion method based upon several factors including but not limited to: (a) an estimate of total hours and milestones to complete; (b) the total hours completed; (c) the delivery of services rendered; (d) the change in estimates; and (e) the collectability of the contract. Licensing revenues for intangible assets, including intellectual property such as patents and trademarks, are recognized when all applicable criteria have been met: (a) persuasive evidence of an existing arrangement; (b) a fixed or determinable price; (c) the delivery has occurred or service has been rendered; and (d) the collectability of the sales price is reasonably assured. Licensing revenues are recognized over the term of the contract or, in the case of a perpetual license, revenues are recognized in the period the criteria have been met. In transactions where the Company engages in a non-cash exchange, the Company follows ASC 845 and any potential revenue is recorded as other income.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2015
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 2: RELATED PARTY TRANSACTIONS For the three months ended March 31, 2015 and 2014, there were revenues earned of $-0- and $3,125, respectively, for services performed for related parties. The Company holds 60,000 shares in Peartrack Security Systems, formerly Ecologic Transportation, as of March 31, 2015 resulting from the conversion of a $60,000 accounts receivable balance in 2014. In 2014, the Company invested $50,000 in Cannonball Red in return for 97,500 shares held as of March 31, 2015. Both companies are affiliated with related parties. In summary, as of March 31, 2015 and December 31, 2014 the total balances of related party payables were $0 and $228,983, respectively. As of March 31, 2015 and December 31, 2014, there were outstanding receivables of $10,000 and $10,000, respectively, for services performed for related parties.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2015
NOTES PAYABLE
NOTES PAYABLE	NOTE 3: NOTES PAYABLE As of March 31, 2015 and December 31, 2014, the Company had current and long term notes payable of $24,000 and $24,000 and $43,800 and $51,800, respectively as shown in the table below. Notes and loans payable March 31, 2015 December 31, 2014 Short Term Maryland TEDCO Note $ $ Total $ $ Long Term Maryland TEDCO Note $ $ Total $ $ As of December 31, 2012, the Company had an outstanding loan to a third party in the amount of $74,900, which was originally issued during 2006 as part of an investment agreement. The loan was unsecured and bore interest at 25% per year for four years. The Company had accrued interest of $74,900, which was included in accounts payable and accrued expenses on the balance sheet. The note was in default until October 24, 2011, at which time the Company entered into a Termination and Release Agreement (“Release”) with the noteholder. The terms of the Release, among other things, terminated the Investment Agreement between the parties, and required the Company to issue a Promissory Note to the noteholder in the combined amount of principal and accrued interest owed to date, for a total principal amount of $149,800 (the “Maryland TEDCO Note”). The Maryland TEDCO Note is interest free, and is payable in monthly installments of $2,000 beginning November 1, 2011. As of March 31, 2015 and December 31, 2014 the principal amount owing was $67,800 and $75,800, respectively, of which $24,000 and $24,000, respectively, has been recorded as the current portion of the note, and $43,800 and $51,800, respectively, as the long-term portion of the note, respectively.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 4: STOCKHOLDERS’ EQUITY As of March 31, 2015 and December 31, 2014, the Company had 79,467,530 and 77,817,861 shares of common stock issued and outstanding, respectively. On January 15, 2015, the Company sold an additional 812,500 units under a private placement that had its initial close in December 2014 (the “December 2014 Private Placement”) to one institutional investor for gross proceeds of $325,000 with no commission payable. Each unit in the December 2014 Private Placement consisted of one share of the Company’s common stock and warrants to purchase ¼ of a share for every common share purchased. The warrants have a term of five years and an exercise price of $0.60 per share. On March 5, 2015, Paul Arena resigned as Chairman of the Board of Directors and Executive Chairman and was designated by AIM Group, Inc. as a consultant to the Company for the term of one year. On March 5, 2015, the Company and Mr. Arena, pursuant to a Separation and Release Agreement, agreed to the issuance of 500,000 restricted common shares in lieu of the January 27, 2014 issuance of 3,000,000 Performance Share Units. The agreement calls for the immediate release of 250,000 common shares, or 50%, and up to 250,000 common shares, or 50%, be held in escrow until April 1, 2016 or until the Company’s 2015 audited financials are final. The 250,000 shares earned during the three months ended March 31, 2015 were valued and expensed at $117,500. The remaining 250,000 shares are not expected to be earned. From January 1, 2015 through March 31, 2015, the Company also issued 109,899 shares of common stock pursuant to exercise of warrants for total proceeds of $43,942. The Company also issued 477,314 additional shares of common stock for services provided for a total expense of $197,163.

OPTIONS

OPTIONS	3 Months Ended
	Mar. 31, 2015
OPTIONS.
OPTIONS	NOTE 5: OPTIONS As of March 31, 2015 and December 31, 2014, the Company has granted options to purchase 13,302,900 and 11,434,350 shares of common stock, respectively. Number of Options Wtd Avg. Exercise Price Wtd Avg. Remaining Term Exercisable Intrinsic Value of Exercisable Options Outstanding at December 31, 2014 $ $ Granted — Forfeited — Outstanding at March 31, 2015 $ $ The option grants during the three months ended March 31, 2015 were valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 2.67 to 3.26 years, expected volatility of 100%, risk free interest rate of 0.76% to 1.83%, and expected dividend yield of 0%. On January 5, 2015, the Company issued 37,500 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.43, and expire on January 5, 2020. The value on the grant date of the options was $10,357 and the option expense for the three months ended March 31, 2015 was determined to be $1,608. On January 9, 2015, the Company issued 100,000 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.40, and expire on January 9, 2020. The value on the grant date of the options was $25,679 and the option expense for the three months ended March 31, 2015 was determined to be $3,799. On February 2, 2015, the Company issued 17,500 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.59, and expire on February 2, 2020. The value on the grant date of the options was $6,183 and the option expense for the three months ended March 31, 2015 was determined to be $6 4 4. On February 23, 2015, the Company issued 35,000 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.50, and expire on February 23, 2020. The value on the grant date of the options was $11,246 and the option expense for the three months ended March 31, 2015 was determined to be $739. On March 5, 2015, the Company issued 150,000 options, which vest 33.33% immediately and 16.66% every 90 days thereafter, have an exercise price of $0.40, and expire on March 5, 2018. The value on the grant date of the options was $44,252 and the option expense for the three months ended March 31, 2015 was determined to be $16,852. On March 12, 2015, the Company issued 1,981,550 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.44, and expire on March 12, 2020. The value on the grant date of the options was $609,722 and the option expense for the three months ended March 31, 2015 was determined to be $21,159. On March 16, 2015, the Company issued 47,000 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.47, and expire on March 16, 2020. The value on the grant date of the options was $15,365 and the option expense for the three months ended March 31, 2015 was determined to be $421. For the three months ended March 31, 2015, expense amortized for options issued prior to January 1, 2015 was $332,343. For the three months ended March 31, 2015 and 2014, total stock compensation expense related to the options totaled $377,566 and $306,134, respectively. For the three months ended March 31, 2015 and 2014, stock compensation expense related to the options, warrants and performance stock units totaled $559,793 and $807,356, respectively. The total stock compensation expense related to the options, warrants and performance stock units to be amortized through March 2018 is $2,110,036 as of March 31, 2015.

WARRANTS

WARRANTS	3 Months Ended
	Mar. 31, 2015
WARRANT
WARRANTS	NOTE 6: WARRANTS Below is a table summarizing the Company’s outstanding warrants as of March 31, 2015 and December 31, 2014: Number of Warrants Wtd Avg. Exercise Price Wtd Avg. Remaining Term Exercisable Intrinsic Value of Exercisable Warrants Outstanding at December 31, 2014 $ $ Exercised — — Granted — — Outstanding at March 31, 2015 $ $ The warrant grants during the three months ended March 31, 2015 were valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 1.50 to 3.26 years, expected volatility of 100%, risk free interest rate of 0.29% to 1.63%, and expected dividend yield of 0%. On January 15, 2015, the Company sold an additional 812,500 units under the December 2014 Private Placement to one institutional investor for gross proceeds of $325,000 with no commission payable. Each unit in the December 2014 Private Placement consisted of one share of the Company’s common stock and warrants to purchase ¼ of a share for every common share purchased. The warrants consisted of warrants to purchase up to 203,125 shares of the Company’s common stock. The warrants have a term of five years and an exercise price of $0.60 per share. The fair value on the grant date of the warrants was $76,629 and the expense for the three months ended March 31, 2015 was determined to be $0. As of March 31, 2015, these warrants have not been exercised. On January 29, 2015, the Company issued three-year fully-vested warrants to purchase 150,000 shares of the Company’s common stock with an exercise price of $0.40 per share. The fair value on the grant date of the warrants was $61,066 and the expense for the three months ended March 31, 2015 was determined to be $3,393. As of March 31, 2015, these warrants have not been exercised. For the three months ended March 31, 2015 and 2014, the Company has incurred warrant-based expense of $54,741 and $405,569, respectively. For the three months ended March 31, 2015 and 2014, stock compensation expense related to the options, warrants and performance stock units totaled $559,793 and $807,356, respectively. The total stock compensation expense related to the options, warrants and performance stock units to be amortized through March 2018 is $2,110,036 as of March 31, 2015.

PERFORMANCE SHARE UNITS

PERFORMANCE SHARE UNITS	3 Months Ended
	Mar. 31, 2015
PERFORMANCE SHARE UNITS
PERFORMANCE SHARE UNITS	NOTE 7: PERFORMANCE SHARE UNITS On January 27, 2014, the Company entered into a Performance Share Unit Agreement under the AudioEye, Inc. 2013 Incentive Compensation Plan with Paul Arena, the Company’s Executive Chairman. Mr. Arena was granted an award of up to an aggregate of 3,000,000 Performance Share Units (“PSUs”). Each PSU represents the right to receive one share of the Company’s common stock. The number of PSUs for a performance period will be determined by the level of achievement of performance goals in accordance with the terms and provisions of the Performance Share Unit Agreement. On March 5, 2015, Paul Arena resigned as Chairman of the Board of Directors and Executive Chairman and was designated by AIM Group, Inc. as a consultant to the Company for the term of one year. On March 5, 2015, the Company and Mr. Arena, pursuant to a Separation and Release Agreement, agreed to the issuance of 500,000 restricted common shares in lieu of the January 27, 2014 issuance of 3,000,000 PSUs. Below is a table summarizing the Company’s outstanding performance share units as of March 31, 2015 and December 31, 2014: Wtd Avg. Number of PSUs Wtd Avg. Grant Price Remaining Term Outstanding at December 31, 2014 $ Forfeited Outstanding at March 31, 2015 $ For the three months ended March 31, 2015 and 2014, the Company has incurred performance share unit-based expense of $127,486 and $95,653, respectively. For the three months ended March 31, 2015 and 2014, stock compensation expense related to the options, warrants and performance share units totaled $559,793 and $807,356, respectively. The total stock compensation expense related to the options, warrants and performance share units to be amortized through March 2018 is $2,110,036 as of March 31, 2015.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2015
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE 8: INTANGIBLE ASSETS As of March 31, 2015, patents, technology and other intangibles with contractual terms were generally amortized over their estimated useful lives of five or ten years. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. Prior to any impairment adjustment, intangible assets consisted of the following: March 31, December 31, 2015 2014 Patents $ $ Software Development Costs Accumulated Amortization ) ) Intangible Assets, Net $ $ Software development costs and licensing intangible assets both have an estimated useful life of 3 years. Software development costs are incurred during the building of the Company’s Internet platform. Software development costs are subject to annual impairment testing. Amortization expense totaled $104,210 and $99,273 for the three months ended March 31, 2015 and 2014, respectively.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 9: FAIR VALUE MEASUREMENTS The following are the Company’s assets and liabilities, measured at fair value on a recurring basis, as of March 31, 2015 and December 31, 2014: Fair Value Fair Value Hierarchy Marketable securities, March, 31, 2015 $ Level 1 Marketable securities, December 31, 2014 $ Level 1 Fair value is an estimate of the exit price, representing the amount that would be received to, sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction cost. Fair value measurement under generally accepted accounting principles provides for use of a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the Company. Level 3: Unobservable inputs reflect the assumptions that the Company develops based on available information about what market participants would use in valuing the asset or liability. An asset or liability’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 and Level 2 assets or liabilities.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 10: SUBSEQUENT EVENTS Effective April 24, 2015, Nathaniel Bradley resigned as Chief Executive Officer and President of the Company. Effective with his resignation as Chief Executive Officer and President, the Company’s board of directors appointed Mr. Bradley to serve as Founder and Chief Innovation Officer as well as Treasurer of the Company. Effective May 1, 2015, Mr. Bradley agreed to reduce his annual base salary to $125,000. Effective April 24, 2015, the Company’s board of directors appointed Sean Bradley to serve as President of the Company as well as continuing as Chief Technology Officer and Secretary. Effective May 1, 2015, Mr. Bradley agreed to reduce his annual base salary to $150,000. Effective April 24, 2015, James Crawford resigned as Chief Operating Officer and Treasurer of the Company. Also on April 24, 2015, the Company and Crawdad, LLC. (“Crawdad”), a limited liability company wholly owned by Mr. Crawford, entered into a Consulting Agreement pursuant to which Crawdad, through Mr. Crawford, is to provide certain consulting services to the Company for a period of 12 months for a consulting fee of $5,000 per month. Commencing on May 1, 2015, the Company sold an aggregate of 175,000 shares of Series A Convertible Preferred Stock (the “Preferred Stock”) to 12 accredited investors at a purchase price of $10.00 per share (the “Purchase Price”) for proceeds of $1,750,000 in a private placement. Each share of the Preferred Stock may be converted into shares of common stock of the Company by dividing the Purchase Price plus any accumulated dividends with respect to such share by an initial conversion price of $0.1754 (subject to adjustment for stock splits, stock dividends and similar actions). The Company may redeem the Preferred Stock at any time for a per share amount equal to $12.50 plus accumulated dividends. The Preferred Stock will bear a dividend of 5% of the purchase price when, as and if declared by the Board of Directors of the Company. On May 18, 2015, the Company filed amended quarterly reports on Form 10-Q for the periods ended March 31, June 30 and September 31, 2014 to reflect the restatement of the Company’s financial statements for the restated periods and the change in management’s conclusion regarding the effectiveness of the Company’s disclosure controls and procedures and internal control over financial reporting. On June 2, 2015, the Company issued 150,000 options, which vest 33.33% immediately and 16.66% every 3 months thereafter, have an exercise price of $0.1625, and expire on June 2, 2018. On June 2, 2015, the Company granted 1,250,000 shares of common stock and five-year warrants to purchase up to 2,000,000 shares of common stock at an exercise price of $0.16 per share. On June 2, 2015, the Company granted 800,000 shares of common stock and five-year warrants to purchase up to 1,000,000 shares of common stock at an exercise price of $0.16 per share. On June 15, 2015, the Company issued 500,000 options, which vest 50% immediately, 25% after one year and 1.04% every month thereafter, have an exercise price of $0.15, and expire on June 15, 2020. On July 1, 2015, the Company entered into an Executive Employment Agreement with Carr Bettis pursuant to which Dr. Bettis was employed as our Executive Chairman/Chairman of the Board. The term of the Executive Employment Agreement is one year commencing July 1, 2015, terminable at will by either us or Dr. Bettis and subject to extension upon mutual agreement. He is to receive a base annual salary of $175,000 during the employment period, paid at the end of every calendar quarter in the form of options to purchase shares of our common stock. The number of options to be issued for each quarterly period will be determined by means of a Black Scholes valuation whereby the number of options issued would have a value at the time of issuance equal to the dollar value of Dr. Bettis’ base salary for each calendar quarter. He is entitled to receive bonuses at the sole discretion of our board of directors or the compensation committee. Dr. Bettis is also entitled to equity awards under our incentive compensation plans.

ORGANIZATION AND BASIS OF PRE16

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2015
ORGANIZATION AND BASIS OF PRESENTATION
Reclassification	Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation.
Revenue Recognition	Revenue Recognition Revenue is recognized when all applicable recognition criteria have been met, which generally include: (a) persuasive evidence of an existing arrangement; (b) a fixed or determinable price; (c) delivery has occurred or service has been rendered; and (d) the collectability of the sales price is reasonably assured. For software and technology development contracts where applicable, the Company recognizes revenues on a percentage of completion method based upon several factors including but not limited to: (a) an estimate of total hours and milestones to complete; (b) the total hours completed; (c) the delivery of services rendered; (d) the change in estimates; and (e) the collectability of the contract. Licensing revenues for intangible assets, including intellectual property such as patents and trademarks, are recognized when all applicable criteria have been met: (a) persuasive evidence of an existing arrangement; (b) a fixed or determinable price; (c) the delivery has occurred or service has been rendered; and (d) the collectability of the sales price is reasonably assured. Licensing revenues are recognized over the term of the contract or, in the case of a perpetual license, revenues are recognized in the period the criteria have been met. In transactions where the Company engages in a non-cash exchange, the Company follows ASC 845 and any potential revenue is recorded as other income.

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2015
NOTES PAYABLE
Schedule of current and long term notes payable	Notes and loans payable March 31, 2015 December 31, 2014 Short Term Maryland TEDCO Note $ $ Total $ $ Long Term Maryland TEDCO Note $ $ Total $ $

OPTIONS (Tables)

OPTIONS (Tables)	3 Months Ended
	Mar. 31, 2015
OPTIONS.
Summary of the Company's outstanding and exercisable options	Number of Options Wtd Avg. Exercise Price Wtd Avg. Remaining Term Exercisable Intrinsic Value of Exercisable Options Outstanding at December 31, 2014 $ $ Granted — Forfeited — Outstanding at March 31, 2015 $ $

WARRANTS (Tables)

WARRANTS (Tables)	3 Months Ended
	Mar. 31, 2015
WARRANT
Summary of the Company's outstanding warrants	Number of Warrants Wtd Avg. Exercise Price Wtd Avg. Remaining Term Exercisable Intrinsic Value of Exercisable Warrants Outstanding at December 31, 2014 $ $ Exercised — — Granted — — Outstanding at March 31, 2015 $ $

PERFORMANCE SHARE UNITS (Tables

PERFORMANCE SHARE UNITS (Tables)	3 Months Ended
	Mar. 31, 2015
PERFORMANCE SHARE UNITS
Summary of outstanding performance share units	Wtd Avg. Number of PSUs Wtd Avg. Grant Price Remaining Term Outstanding at December 31, 2014 $ Forfeited Outstanding at March 31, 2015 $

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2015
INTANGIBLE ASSETS
Schedule of intangible assets	March 31, December 31, 2015 2014 Patents $ $ Software Development Costs Accumulated Amortization ) ) Intangible Assets, Net $ $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2015
FAIR VALUE MEASUREMENTS
Schedule of fair value of marketable securities	Fair Value Fair Value Hierarchy Marketable securities, March, 31, 2015 $ Level 1 Marketable securities, December 31, 2014 $ Level 1

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Revenue from related party	$ 0	$ 3,125
Cost method investment	50,000		$ 50,000
Related party payables	0		228,983
Related party receivables	$ 10,000		10,000
Peartrack Security Systems
Shares owned	60,000
Ecologic Transportation
Conversion of accounts receivable			60,000
Cannonball Red
Shares owned	97,500
Cost method investment			$ 50,000

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	Oct. 24, 2011	Oct. 24, 2011	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2012
Notes Payable
Short Term			$ 24,000	$ 24,000
Long Term			43,800	51,800
Maryland TEDCO Note
Notes Payable
Short Term			24,000	24,000
Long Term			43,800	51,800
Carrying amount of debt			$ 67,800	$ 75,800
Face amount of debt	$ 149,800	$ 149,800
Monthly payments		$ 2,000
Loans Payable
Notes Payable
Carrying amount of debt					$ 74,900
Interest rate	25.00%	25.00%
Due date from the date of issuance	4 years
Accrued interest	$ 74,900	$ 74,900

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	Jul. 15, 2015shares	Mar. 05, 2015shares	Jan. 15, 2015USD ($)item$ / sharesshares	Jan. 15, 2015USD ($)item$ / sharesshares	Sep. 30, 2014shares	Jan. 27, 2014shares	Mar. 31, 2015USD ($)shares	Mar. 31, 2014USD ($)	Dec. 31, 2014shares
STOCKHOLDERS' EQUITY
Common Stock, shares issued							79,467,530		77,817,861
Common Stock, shares outstanding							79,467,530		77,817,861
Stockholders' Equity
Units sold to accredited investors (in shares)			812,500	812,500
Number of accredited investors | item			1	1
Proceeds from sale of units to accredited investors | $			$ 325,000	$ 325,000
Commissions payable from sale to institutional investors | $			$ 0
Units sold to accredited investors, number of common shares			1		1
Number of common shares that can be purchased against each warrant issued to institutional investor			0.25	0.25
Term of warrants issued to accredited investor			5 years	5 years
Exercise price of units (in dollars per share) | $ / shares			$ 0.60	$ 0.60
Common stock issued for services (in shares)							727,314
Expenses related to common stock issued for service | $							$ 314,663
Common stock issued for exercise of warrants (in shares)							109,899
Issuance of equity for cash exercise of options and warrants | $							$ 43,942	$ 13,000
Mr. Arena | PSUs
Stockholders' Equity
Number of units granted (in shares)						3,000,000
Mr. Arena | Restricted Shares
Stockholders' Equity
Number of options awarded		500,000
Percentage of restricted shares issued		50.00%
Percentage of shares held in escrow		50.00%
Mr. Arena | Restricted Shares | Expected results
Stockholders' Equity
Shares are not expected to be earned	250,000
Mr. Arena | Restricted Shares | Maximum
Stockholders' Equity
Shares held in escrow		250,000
Mr. Arena | Restricted Shares | Immediate vesting
Stockholders' Equity
Number of options awarded		250,000
Stock option expense | $							$ 117,500
AIM | Mr. Arena
Stockholders' Equity
Term of consulting agreement		1 year

OPTIONS (Details)

OPTIONS (Details) - USD ($)

Mar. 31, 2015

Mar. 16, 2015

Mar. 12, 2015

Mar. 05, 2015

Feb. 23, 2015

Feb. 02, 2015

Jan. 09, 2015

Jan. 05, 2015

Dec. 31, 2014

Mar. 31, 2015

Mar. 31, 2014

Jan. 29, 2015

Significant assumptions used in the valuation

Share based compensation expense

$ 559,793

$ 807,356

Exercise price (in dollars per share)

$ 0.40

Total stock compensation expense to be amortized through March 2018

$ 2,110,036

Options

Options

Options issued and outstanding

13,302,900

11,434,350

11,434,350

Number of options:

Outstanding at beginning of the period (in shares)

11,434,350

Granted (in shares)

2,368,550

Less Forfeited (in shares)

500,000

Outstanding at the end of the period (in shares)

13,302,900

11,434,350

13,302,900

Exercisable (in shares)

7,061,300

5,635,250

Wtd Avg. Exercise Price

Outstanding at beginning of the period (in dollars per share)

$ 0.47

Granted (in dollars per share)

0.44

Less Forfeited (in dollars per share)

0.40

Outstanding at end of the period (in dollars per share)

$ 0.47

$ 0.47

$ 0.47

Wtd Avg. Remaining Term

SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2

3 years 9 months

3 years 9 months 15 days

Granted, Wtd Avg. Remaining Term

4 years 9 months 22 days

Forfeited, Wtd Avg. Remaining Term

3 years 9 months 29 days

SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2

3 years 9 months

3 years 9 months 15 days

Intrinsic Value

Outstanding at beginning of the period, Intrinsic Value (in dollars)

$ 460,941

Outstanding at end of the period, Intrinsic Value (in dollars)

$ 446,189

$ 460,941

$ 446,189

Significant assumptions used in the valuation

Expected volatility (as a percent)

100.00%

Expected dividend yield (as a percent)

0.00%

Share based compensation expense

$ 377,566

$ 306,134

Number of options awarded

2,368,550

Options | Minimum

Significant assumptions used in the valuation

Expected term

2 years 8 months 1 day

Risk-free interest rate (as a percent)

0.76%

Options | Maximum

Significant assumptions used in the valuation

Expected term

3 years 3 months 4 days

Risk-free interest rate (as a percent)

1.83%

Options | Options Granted On 5 January 2015 Member

Number of options:

Granted (in shares)

37,500

Significant assumptions used in the valuation

Grant date fair value of options

$ 10,357

Share based compensation expense

$ 1,608

Number of options awarded

37,500

Exercise price (in dollars per share)

$ 0.43

Options | Options Granted On 5 January 2015 Member | Vesting every month

Significant assumptions used in the valuation

Vesting percentage

2.01%

Options | Options Granted On 5 January 2015 Member | Vesting after one year

Significant assumptions used in the valuation

Vesting percentage

50.00%

Vesting period

1 year

Options | Options Granted On 9 January 2015 Member

Number of options:

Granted (in shares)

100,000

Significant assumptions used in the valuation

Grant date fair value of options

$ 25,679

Share based compensation expense

$ 3,799

Number of options awarded

100,000

Exercise price (in dollars per share)

$ 0.40

Options | Options Granted On 9 January 2015 Member | Vesting every month

Significant assumptions used in the valuation

Vesting percentage

2.01%

Options | Options Granted On 9 January 2015 Member | Vesting after one year

Significant assumptions used in the valuation

Vesting percentage

50.00%

Vesting period

1 year

Options | Options Granted On 2 February 2015 Member

Number of options:

Granted (in shares)

17,500

Significant assumptions used in the valuation

Grant date fair value of options

$ 6,183

Share based compensation expense

$ 644

Number of options awarded

17,500

Exercise price (in dollars per share)

$ 0.59

Options | Options Granted On 2 February 2015 Member | Vesting every month

Significant assumptions used in the valuation

Vesting percentage

2.01%

Options | Options Granted On 2 February 2015 Member | Vesting after one year

Significant assumptions used in the valuation

Vesting percentage

50.00%

Vesting period

1 year

Options | Options Granted On 23 February 2015 Member

Number of options:

Granted (in shares)

35,000

Significant assumptions used in the valuation

Grant date fair value of options

$ 11,246

Share based compensation expense

$ 739

Number of options awarded

35,000

Exercise price (in dollars per share)

$ 0.50

Options | Options Granted On 23 February 2015 Member | Vesting every month

Significant assumptions used in the valuation

Vesting percentage

2.01%

Options | Options Granted On 23 February 2015 Member | Vesting after one year

Significant assumptions used in the valuation

Vesting percentage

50.00%

Vesting period

1 year

Options | Options Granted On 5 March 2015 Member

Number of options:

Granted (in shares)

150,000

Significant assumptions used in the valuation

Grant date fair value of options

$ 44,252

Share based compensation expense

$ 16,852

Number of options awarded

150,000

Exercise price (in dollars per share)

$ 0.40

Options | Options Granted On 5 March 2015 Member | Immediate vesting

Significant assumptions used in the valuation

Vesting percentage

33.33%

Options | Options Granted On 5 March 2015 Member | Vesting every 90 days

Significant assumptions used in the valuation

Vesting percentage

16.66%

Vesting period

90 days

Options | Options Granted On 12 March 2015 Member

Number of options:

Granted (in shares)

1,981,550

Significant assumptions used in the valuation

Grant date fair value of options

$ 609,722

Share based compensation expense

$ 21,159

Number of options awarded

1,981,550

Exercise price (in dollars per share)

$ 0.44

Options | Options Granted On 12 March 2015 Member | Vesting every month

Significant assumptions used in the valuation

Vesting percentage

2.01%

Options | Options Granted On 12 March 2015 Member | Vesting after one year

Significant assumptions used in the valuation

Vesting percentage

50.00%

Vesting period

1 year

Options | Options Granted On 16 March 2015 Member

Number of options:

Granted (in shares)

47,000

Significant assumptions used in the valuation

Grant date fair value of options

$ 15,365

Share based compensation expense

$ 421

Number of options awarded

47,000

Exercise price (in dollars per share)

$ 0.47

Options | Options Granted On 16 March 2015 Member | Vesting every month

Significant assumptions used in the valuation

Vesting percentage

2.01%

Options | Options Granted On 16 March 2015 Member | Vesting after one year

Significant assumptions used in the valuation

Vesting percentage

50.00%

Vesting period

1 year

Options | Options issued prior to January 1, 2015

Significant assumptions used in the valuation

Share based compensation expense

$ 332,343

WARRANTS (Details)

WARRANTS (Details)	Mar. 31, 2015USD ($)$ / sharesshares	Jan. 29, 2015USD ($)$ / sharesshares	Jan. 15, 2015USD ($)item$ / sharesshares	Jan. 15, 2015USD ($)item$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Sep. 30, 2014shares	Mar. 31, 2015USD ($)$ / sharesshares	Mar. 31, 2015USD ($)$ / sharesshares	Mar. 31, 2014USD ($)
Warrants rights
Expenses for grant of warrants							$ 0	$ 3,393
Units sold to accredited investors (in shares) | shares			812,500	812,500
Number of accredited investors | item			1	1
Proceeds from sale of units to accredited investors			$ 325,000	$ 325,000
Commissions payable from sale to institutional investors			$ 0
Units sold to accredited investors, number of common shares | shares			1			1
Number of common shares that can be purchased against each warrant issued to institutional investor | shares			0.25	0.25
Term of warrant		3 years
Warrants to purchase shares | shares		150,000	203,125	203,125
Term of warrants issued to accredited investor			5 years	5 years
Exercise price of units (in dollars per share) | $ / shares			$ 0.60	$ 0.60
Strike price (in dollars per share) | $ / shares		$ 0.40
Grant date fair value of warrants		$ 61,066	$ 76,629	$ 76,629
Share based compensation expense								559,793	$ 807,356
Unamortized Share based compensation expense	$ 2,110,036						$ 2,110,036	$ 2,110,036
Warrants
Number of warrants
Number of shares, beginning | shares								16,527,989
Number of shares, exercised | shares								109,855
Number of shares, granted | shares								353,125
Number of shares, ending | shares	16,771,259				16,527,989		16,771,259	16,771,259
Exercisable | shares	14,071,488				12,604,407		14,071,488	14,071,488
Weighted average exercise price
Weighted average exercise price, beginning (in dollars per share) | $ / shares								$ 0.46
Weighted average exercise price, exercised (in dollars per share) | $ / shares								0.40
Weighted average exercise price, granted (in dollars per share) | $ / shares								0.52
Weighted average exercise price, ending (in dollars per share) | $ / shares	$ 0.44				$ 0.46		$ 0.44	$ 0.44
"Wtd Avg. Remaining Term "
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms	3 years 5 months 12 days				3 years 8 months 9 days
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms	3 years 5 months 12 days				3 years 8 months 9 days
Intrinsic Value
Outstanding at beginning of the period								$ 309,821
Outstanding at end of the period	$ 467,316				$ 309,821		$ 467,316	$ 467,316
Warrants rights
Expected volatility (as a percent)								100.00%
Expected dividend yield (as a percent)								0.00%
Share based compensation expense								$ 54,741	$ 405,569
Unamortized Share based compensation expense	$ 2,110,036						$ 2,110,036	$ 2,110,036
Minimum | Warrants
Warrants rights
Expected term								1 year 6 months
Risk-free interest rate (as a percent)								0.29%
Maximum | Warrants
Warrants rights
Expected term								3 years 3 months 4 days
Risk-free interest rate (as a percent)								1.63%

PERFORMANCE SHARE UNITS (Detail

PERFORMANCE SHARE UNITS (Details) - USD ($)	Mar. 31, 2015	Mar. 05, 2015	Dec. 31, 2014	Jan. 27, 2014	Mar. 31, 2015	Mar. 31, 2014
Wtd Avg. Remaining Term
Stock compensation expense related to the options and warrants					$ 559,793	$ 807,356
Total stock compensation expense to be amortized through March 2018	$ 2,110,036				$ 2,110,036
PSUs
Number of PSUs
Number of shares, beginning					4,500,000
Forfeited					3,000,000
Number of shares, ending	1,500,000		4,500,000		1,500,000
Wtd Avg. Grant Price
Weighted average exercise price, beginning (in dollars per share)					$ 0.40
Forfeited (in dollars per share)					0.33
Weighted average exercise price, ending (in dollars per share)	$ 0.54		$ 0.40		$ 0.54
Wtd Avg. Remaining Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsWeightedAverageRemainingContractualTermsGrantsInPeriod	1 year		2 years
Forfeited					2 years 8 months 1 day
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsWeightedAverageRemainingContractualTermsGrantsInPeriod	1 year		2 years
Stock compensation expense related to the options and warrants					$ 127,486	$ 95,653
Mr. Arena | Restricted Shares
PERFORMANCE SHARE UNITS
Number of options awarded		500,000
Mr. Arena | PSUs
PERFORMANCE SHARE UNITS
Performance share unit agreement granted (in shares)				3,000,000
Number of shares issued for each performance share unit				1
AIM | Mr. Arena
PERFORMANCE SHARE UNITS
Term of Consulting Agreement		1 year

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Intangible Assets
Accumulated Amortization	$ (1,006,422)		$ (902,212)
Intangible Assets, Net	2,993,083		3,097,293
Amortization expense	$ 104,210	$ 99,273
Minimum
Intangible Assets
Estimated useful lives of intangibles assets	5 years
Maximum
Intangible Assets
Estimated useful lives of intangibles assets	10 years
Patents
Intangible Assets
Intangible Assets, Gross	$ 3,611,380		3,611,380
Software Development Costs
Intangible Assets
Estimated useful lives of intangibles assets	3 years
Intangible Assets, Gross	$ 388,125		$ 388,125
Licensing
Intangible Assets
Estimated useful lives of intangibles assets	3 years

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Mar. 31, 2015	Dec. 31, 2014
Fair value
Marketable securities held in related party	$ 13,800	$ 13,800
Fair Value, Inputs, Level 1
Fair value
Marketable securities held in related party	$ 13,800	$ 13,800

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	Jul. 01, 2015USD ($)	Jun. 15, 2015$ / sharesshares	Jun. 02, 2015$ / sharesshares	May. 01, 2015USD ($)item$ / sharesshares	Apr. 24, 2015USD ($)	Jan. 29, 2015shares	Jan. 15, 2015USD ($)item$ / sharesshares	Jan. 15, 2015USD ($)item$ / sharesshares	Mar. 31, 2015USD ($)shares	Mar. 31, 2014USD ($)	Jun. 30, 2015USD ($)shares
Subsequent event
Number of accredited investors | item							1	1
Proceeds from sale of units to accredited investors | $							$ 325,000	$ 325,000
Exercise price of units (in dollars per share) | $ / shares							$ 0.60	$ 0.60
Common stock issued						150,000	203,125	203,125
Term of warrant						3 years
Common stock issued for services									727,314
Proceeds from exercise of warrants | $									$ 43,942	$ 13,000
Options
Subsequent event
Number of options awarded									2,368,550
Subsequent Event
Subsequent event
Number of accredited investors | item				12
Proceeds from sale of units to accredited investors | $				$ 1,750,000
Dividend rate (as a percent)				5.00%
Common stock issued for exercise of warrants (in shares)											109,855
Proceeds from exercise of warrants | $											$ 43,942
Subsequent Event | Consulting And Referral Agreements
Subsequent event
Common stock issued for services											532,960
Subsequent Event | Series A Convertible Preferred Stock
Subsequent event
Shares Issued				175,000
Share price (in dollars per share) | $ / shares				$ 10
Conversion price (in dollars per share) | $ / shares				0.1754
Redemption Price (in dollars per share) | $ / shares				$ 12.50
Subsequent Event | Options | Options Granted On 2 June 2015 Member
Subsequent event
Number of options awarded			150,000
Exercise price of units (in dollars per share) | $ / shares			$ 0.1625
Subsequent Event | Options | Options Granted On 2 June 2015 Member | Immediate vesting
Subsequent event
Vesting percentage			33.33%
Subsequent Event | Options | Options Granted On 2 June 2015 Member | Vesting every three months
Subsequent event
Vesting percentage			16.66%
Vesting period			3 months
Subsequent Event | Options | Options Granted On 15 June 2015 Member
Subsequent event
Number of options awarded		500,000
Exercise price of units (in dollars per share) | $ / shares		$ 0.15
Subsequent Event | Options | Options Granted On 15 June 2015 Member | Vesting after one year
Subsequent event
Vesting percentage		25.00%
Vesting period		1 year
Subsequent Event | Options | Options Granted On 15 June 2015 Member | Vesting every month
Subsequent event
Vesting percentage		1.04%
Subsequent Event | Options | Options Granted On 15 June 2015 Member | Immediate vesting
Subsequent event
Vesting percentage		50.00%
Subsequent Event | Nathaniel Bradley
Subsequent event
Base salary | $					$ 125,000
Subsequent Event | Sean Bradley
Subsequent event
Base salary | $					$ 150,000
Subsequent Event | James Crawford
Subsequent event
Term of consulting agreement					12 months
Consulting agreement monthly fee amount | $					$ 5,000
Subsequent Event | Carr Bettis
Subsequent event
Base salary | $	$ 175,000
Employment contract period	1 year
Exercise price of units (in dollars per share) | $ / shares			$ 0.16
Common stock issued			1,250,000
Term of warrant			5 years
Subsequent Event | Carr Bettis | Maximum
Subsequent event
Issuance of warrants (in shares)			2,000,000
Subsequent Event | Mr. Purcell
Subsequent event
Exercise price of units (in dollars per share) | $ / shares			$ 0.16
Common stock issued			800,000
Term of warrant			5 years
Subsequent Event | Mr. Purcell | Maximum
Subsequent event
Issuance of warrants (in shares)			1,000,000