Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 11, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Bluefire Renewables, Inc. | ' |
Entity Central Index Key | '0001370489 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 181,242,551 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $41,120 | $46,992 |
Accounts receivable | 76,723 | ' |
Department of Energy grant receivable | 103,356 | ' |
Costs of financing | ' | 1,031 |
Prepaid expenses | 20,034 | 4,636 |
Total current assets | 241,233 | 52,659 |
Property, plant and equipment, net of accumulated depreciation of $106,492 and $106,041, respectively | 110,789 | 111,240 |
Total assets | 352,022 | 163,899 |
Current liabilities: | ' | ' |
Accounts payable | 832,916 | 1,108,684 |
Accrued liabilities | 183,383 | 272,910 |
Convertible notes payable, net of discount of $1,250 and $75,695, respectively | 98,750 | 322,385 |
Notes payable, net of discount of $32,699 and $0, respectively | 347,301 | ' |
Line of credit, related party | 51,230 | 11,230 |
Note payable to a related party | 200,000 | 200,000 |
Derivative liability | 87,500 | 122,309 |
Total current liabilities | 1,801,080 | 2,037,518 |
Outstanding warrant liability | 296 | 58 |
Total liabilities | 1,801,376 | 2,037,576 |
Redeemable noncontrolling interest | 858,417 | 856,044 |
Stockholders' deficit: | ' | ' |
Preferred stock, no par value, 1,000,000 shares authorized; none issued and outstanding | ' | ' |
Common stock, $0.001 par value; 500,000,000 shares authorized; 156,704,560 and 73,486,861 shares issued; and 156,672,388 and 68,910,395 outstanding, as of June 30, 2014 and December 31, 2013, respectively | 156,704 | 68,943 |
Additional paid-in capital | 16,395,771 | 16,123,744 |
Treasury stock at cost, 32,172 shares at June 30, 2014 and December 31, 2013 | -101,581 | -101,581 |
Accumulated deficit | -18,758,665 | -18,820,827 |
Total stockholders' deficit | -2,307,771 | -2,729,721 |
Total liabilities and stockholders' deficit | $352,022 | $163,899 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Property, plant and equipment, accumulated depreciation | $106,492 | $106,041 |
Convertible notes payable, discount | $1,250 | $75,695 |
Preferred stock, no par value | ' | ' |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 156,704,560 | 73,486,861 |
Common stock, shares outstanding | 156,672,388 | 68,910,395 |
Treasury stock, shares | 32,172 | 32,172 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues: | ' | ' | ' | ' |
Consulting fees | $128,705 | ' | $214,225 | $2,020 |
Department of Energy grant revenue | 323,917 | 551,828 | 849,503 | 617,939 |
Total revenues | 452,622 | 551,828 | 1,063,728 | 619,959 |
Cost of revenue | ' | ' | ' | ' |
Consulting revenue | 12,369 | ' | 12,369 | ' |
Gross margin | 440,253 | 551,828 | 1,051,359 | 619,959 |
Operating expenses: | ' | ' | ' | ' |
Project development | 201,548 | 128,301 | 415,473 | 246,688 |
General and administrative | 181,676 | 176,263 | 475,028 | 398,602 |
Total operating expenses | 383,224 | 304,564 | 890,501 | 645,290 |
Operating income (loss) | 57,029 | 247,264 | 160,858 | -25,331 |
Other income and (expense): | ' | ' | ' | ' |
Amortization of debt discount | -34,323 | -44,513 | -84,541 | -125,616 |
Interest expense | -20,896 | -19,386 | -36,552 | -76,447 |
Related party interest expense | -1,417 | -462 | -1,754 | -919 |
Gain on settlement of accounts payable and accrued liabilities | ' | ' | 95,990 | ' |
Gain / (loss) from change in fair value of warrant liability | 174 | 7,736 | -238 | 21,855 |
Gain / (loss) from change in fair value of derivative liability | 86,527 | 90,236 | -67,737 | 59,505 |
Loss on excess of derivative over face value | ' | -28,507 | ' | -28,507 |
Total other income and (expense) | 30,065 | 5,104 | -94,832 | -150,129 |
Income (loss) before income taxes | 87,094 | 252,368 | 66,026 | -175,460 |
Provision (benefit) for income taxes | -252 | -355 | 1,491 | 751 |
Net income (loss) | 87,346 | 252,723 | 64,535 | -176,211 |
Net income (loss) attributable to non-controlling interest | 1 | -685 | 2,373 | -2,742 |
Net income (loss) attributable to controlling interest | $87,345 | $253,408 | $62,162 | ($173,469) |
Basic and diluted income (loss) per common share | $0 | $0.01 | $0 | $0 |
Weighted average common shares outstanding, basic and diluted | 155,680,081 | 35,699,485 | 133,116,512 | 34,807,751 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $64,535 | ($176,211) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Change in the fair value of warrant liability | 238 | -21,855 |
Change in fair value of derivative liability | 67,737 | -59,505 |
Loss on excess fair value of derivative liability | ' | 28,507 |
Gain on settlement of accounts payable and accrued liabilities | -95,990 | ' |
Share-based compensation | 46,711 | 9,075 |
Amortization | 87,600 | 154,439 |
Depreciation | 451 | 1,989 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -76,723 | -93,294 |
Department of Energy grant receivable | -103,356 | ' |
Prepaid expenses and other current assets | -15,398 | -4,608 |
Accounts payable | -86,423 | 127,993 |
Accrued liabilities | -87,754 | -124,860 |
Net cash used in operating activities | -198,372 | -158,330 |
Cash flows from investing activities: | ' | ' |
Construction in progress | ' | 3,892 |
Net cash provided by investing activities | ' | 3,892 |
Cash flows from financing activities: | ' | ' |
Proceeds from convertible notes payable | 35,000 | 110,000 |
Repayment of convertible notes payable | -262,500 | ' |
Proceeds from notes payable | 380,000 | ' |
Proceeds from related party line of credit/notes payable | 40,000 | ' |
Net cash provided by financing activities | 192,500 | 110,000 |
Net decrease in cash and cash equivalents | -5,872 | -44,438 |
Cash and cash equivalents beginning of period | 46,992 | 59,603 |
Cash and cash equivalents end of period | 41,120 | 15,165 |
Supplemental disclosures of cash flow information | ' | ' |
Interest | 98,179 | ' |
Income taxes | ' | 751 |
Supplemental schedule of non-cash investing and financing activities: | ' | ' |
Conversion of convertible notes payable into common stock | 32,500 | 101,000 |
Interest converted to common stock | 1,300 | 4,040 |
Discount on fair value of warrants issued with note payable | 42,323 | ' |
Derivative liability reclassed to additional paid-in capital | ' | 86,187 |
Liabilities settled in connection with the Liabilities Purchase Agreement | $133,935 | ' |
Organization_and_Business
Organization and Business | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Business | ' |
NOTE 1 – ORGANIZATION AND BUSINESS | |
BlueFire Renewables, Inc. (“BlueFire” or the “Company”) was incorporated in the State of Nevada on March 28, 2006 (“Inception”). BlueFire was established to deploy the commercially ready and patented process for the conversion of cellulosic waste materials to ethanol (“Arkenol Technology”) under a technology license agreement with Arkenol, Inc. (“Arkenol”). BlueFire’s use of the Arkenol Technology positions it as a cellulose-to-ethanol company with demonstrated production of ethanol from urban trash (post-sorted “MSW”), rice and wheat straws, wood waste and other agricultural residues. The Company’s goal is to develop and operate high-value carbohydrate-based transportation fuel production facilities in North America, and to provide professional services to such facilities worldwide. These “biorefineries” will convert widely available, inexpensive, organic materials such as agricultural residues, high-content biomass crops, wood residues, and cellulose from MSW into ethanol. | |
On July 15, 2010, the board of directors of BlueFire, by unanimous written consent, approved the filing of a Certificate of Amendment to the Company’s Articles of Incorporation with the Secretary of State of Nevada, changing the Company’s name from BlueFire Ethanol Fuels, Inc. to BlueFire Renewables, Inc. On July 20, 2010, the Certificate of Amendment was accepted by the Secretary of State of Nevada. | |
On November 25, 2013, the Company filed an amendment to the Company’s articles of incorporation with the Secretary of State of the State of Nevada, to increase the Company’s authorized common stock from one hundred million (100,000,000) shares of common stock, par value $0.001 per share, to five hundred million (500,000,000) shares of common stock, par value $0.001 per share. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Summary of Significant Accounting Policies | ' | ||||
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Management’s Plans | |||||
Going Concern | |||||
The Company has incurred losses since Inception. Management has funded operations primarily through proceeds received in connection with the reverse merger, loans from its majority shareholder, the private placement of the Company’s common stock in December 2007 for net proceeds of approximately $14,500,000, the issuance of convertible notes with warrants in July and in August 2007, various convertible notes, and Department of Energy reimbursements throughout 2009 to 2014. The Company may encounter further difficulties in establishing operations due to the time frame of developing, constructing and ultimately operating the planned bio-refinery projects. | |||||
As of June 30, 2014, the Company has negative working capital of approximately $1,560,000. Management has estimated that operating expenses for the next 12 months will be approximately $1,700,000, excluding engineering costs related to the development of bio-refinery projects. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Throughout the remainder of 2014, the Company intends to fund its operations with remaining reimbursements under the Department of Energy contract as available, as well as seek additional funding in the form of equity or debt. The Company’s ability to get reimbursed under the DOE contract is dependent on the availability of cash to pay for the related costs and the availability of funds remaining under the contract after the discontinuance of the Department of Energy contract further disclosed in Note 3. As of August 11, 2014, the Company expects the current resources available to them will only be sufficient for a period of approximately one month unless significant additional financing is received. Management has determined that the general expenditures must be reduced and additional capital will be required in the form of equity or debt securities. In addition, if we cannot raise additional short term capital we may consume all of our cash reserved for operations. There are no assurances that management will be able to raise capital on terms acceptable to the Company. If we are unable to obtain sufficient amounts of additional capital, we may be required to reduce the scope of our planned development, which could harm our business, financial condition and operating results. The financial statements do not include any adjustments that might result from these uncertainties. | |||||
Additionally, the Company’s Lancaster plant is currently shovel ready, except for the air permit which the Company will need to renew and only requires minimal capital to maintain until funding is obtained for the construction. This project shall continue once we receive the funding necessary to construct the facility. | |||||
As of December 31, 2010, the Company completed the detailed engineering on our proposed Fulton Project, procured all necessary permits for construction of the plant, and began site clearing and preparation work, signaling the beginning of construction. As of June 30, 2014, all site preparation activities have been completed, including clearing and grating of the site, building access roads, completing railroad tie-ins to connect the site to the rail system, and finalizing the layout plan to prepare for the site foundation. As of December 31, 2013, the construction-in-progress was deemed impaired due to the discontinuance of future funding from the DOE further described in Note 3. | |||||
We estimate the total construction cost of the bio-refineries to be in the range of approximately $300 million for the Fulton Project and approximately $100 million to $125 million for the Lancaster Biorefinery. These cost approximations do not reflect any increase/decrease in raw materials or any fluctuation in construction cost that would be realized by the dynamic world metals markets or inflation of general costs of construction. The Company is currently in discussions with potential sources of financing for these facilities but no definitive agreements are in place. The Company cannot continue significant development or furtherance of the Fulton project until financing for the construction of the Fulton plant is obtained. | |||||
Basis of Presentation | |||||
The accompanying unaudited consolidated interim financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities Exchange Commission. Certain information and disclosures normally included in the annual financial statements prepared in accordance with the accounting principles generally accepted in the Unites States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these financial statements have been included. Such adjustments consist of normal recurring adjustments. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2013. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the full year. | |||||
In July 2014, the Company elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the company to remove the inception to date information and all references to development stage. | |||||
Principles of Consolidation | |||||
The consolidated financial statements include the accounts of BlueFire Renewables, Inc., and its wholly-owned subsidiaries, BlueFire Ethanol, Inc., and Sucre Source LLC. BlueFire Ethanol Lancaster, LLC, and BlueFire Fulton Renewable Energy LLC (excluding 1% interest sold) are wholly-owned subsidiaries of BlueFire Ethanol, Inc. All intercompany balances and transactions have been eliminated in consolidation. | |||||
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 revenues and expenses during the reported periods. Actual results could materially differ from those estimates. | |||||
Project Development | |||||
Project development costs are either expensed or capitalized. The costs of materials and equipment that will be acquired or constructed for project development activities, and that have alternative future uses, both in project development, marketing or sales, will be classified as property and equipment and depreciated over their estimated useful lives. To date, project development costs include the research and development expenses related to the Company’s future cellulose-to-ethanol production facilities. During three and six-months ended June 30, 2014 and 2013, research and development costs included in Project Development were approximately $202,000, $128,000, $415,000, and $247,000, respectively. | |||||
Convertible Debt | |||||
Convertible debt is accounted for under the guidelines established by Accounting Standards Codification (“ASC”) 470-20 “Debt with Conversion and Other Options”. ASC 470-20 governs the calculation of an embedded beneficial conversion, which is treated as an additional discount to the instruments where derivative accounting (explained below) does not apply. The amount of the value of warrants and beneficial conversion feature may reduce the carrying value of the instrument to zero, but no further. The discounts relating to the initial recording of the derivatives or beneficial conversion features are accreted over the term of the debt. | |||||
The Company calculates the fair value of warrants and conversion features issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718 “Compensation – Stock Compensation”, except that the contractual life of the warrant or conversion feature is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense. | |||||
The Company accounts for modifications of its BCF’s in accordance with ASC 470-50 “Modifications and Extinguishments”. ASC 470-50 requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment. | |||||
Equity Instruments Issued with Registration Rights Agreement | |||||
The Company accounts for these penalties as contingent liabilities, applying the accounting guidance of ASC 450 “Contingencies”. This accounting is consistent with views established in ASC 825 “Financial Instruments”. Accordingly, the Company recognizes damages when it becomes probable that they will be incurred and amounts are reasonably estimable. | |||||
In connection with the Company signing the $2,000,000 Equity Facility with TCA on March 28, 2012, the Company agreed to file a registration statement related to the transaction with the Securities and Exchange Commission (“SEC”) covering the shares that may be issued to TCA under the Equity Facility within 45 days of closing. Although under the Registration Rights Agreement the registration statement was to be declared effective within 90 days following closing, it was not declared effective. The Company was working with TCA to resolve this issue and, on April 11, 2014, the Equity Facility was canceled and related convertible note repaid in full. No penalties were incurred as part of the repayment. | |||||
Fair Value of Financial Instruments | |||||
The Company follows the guidance of ASC 820 – “Fair Value Measurement and Disclosure”. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: | |||||
Level 1. Observable inputs such as quoted prices in active markets; | |||||
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |||||
Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||
The Company did not have any level 1 financial instruments at June 30, 2014 or December 31, 2013. | |||||
As of June 30, 2014, the Company’s warrant liability and derivative liability are considered level 2 items (see Notes 4 and 5). | |||||
As of June 30, 2014 and December 31, 2013 the Company’s redeemable non-controlling interest is considered a level 3 item and changed during the six months ended June 30, 2014 as follows. | |||||
Balance at December 31, 2013 | $ | 856,044 | |||
Net income attributable to non-controlling interest | 2,373 | ||||
Balance at June 30, 2014 | $ | 858,417 | |||
Risks and Uncertainties | |||||
The Company’s operations are subject to new innovations in product design and function. Significant technical changes can have an adverse effect on product lives. Design and development of new products are important elements to achieve and maintain profitability in the Company’s industry segment. The Company may be subject to federal, state and local environmental laws and regulations. The Company does not anticipate expenditures to comply with such laws and does not believe that regulations will have a material impact on the Company’s financial position, results of operations, or liquidity. The Company believes that its operations comply, in all material respects, with applicable federal, state, and local environmental laws and regulations. | |||||
Income (loss) per Common Share | |||||
The Company presents basic income (loss) per share (“EPS”) and diluted EPS on the face of the consolidated statement of operations. Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. As of June 30, 2014 and 2013, the Company had 7,778,571 and 928,571 warrants, respectively, for which all of the exercise prices were in excess of the average closing price of the Company’s common stock during the corresponding period and thus no shares are considered dilutive under the treasury stock method of accounting and their effects would have been antidilutive due to the loss in certain of the periods presented. | |||||
Derivative Financial Instruments | |||||
We do not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of our financial instruments. However, under the provisions ASC 815 – “Derivatives and Hedging” certain financial instruments that have characteristics of a derivative, as defined by ASC 815, such as embedded conversion features on our Convertible Notes, that are potentially settled in the Company’s own common stock, are classified as liabilities when either (a) the holder possesses rights to net-cash settlement or (b) physical or net-share settlement is not within our control. In such instances, net-cash settlement is assumed for financial accounting and reporting purposes, even when the terms of the underlying contracts do not provide for net-cash settlement. Derivative financial instruments are initially recorded, and continuously carried, at fair value each reporting period. | |||||
The value of the embedded conversion feature is determined using the Black-Scholes option pricing model. All future changes in the fair value of the embedded conversion feature will be recognized currently in earnings until the note is converted or redeemed. Determining the fair value of derivative financial instruments involves judgment and the use of certain relevant assumptions including, but not limited to, interest rate risk, credit risk, volatility and other factors. The use of different assumptions could have a material effect on the estimated fair value amounts. | |||||
Redeemable - Non-controlling Interest | |||||
Redeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets outside permanent equity. As these redeemable non-controlling interests provide for redemption features not solely within the control of the issuer, we classify such interests outside of permanent equity in accordance with ASC 480, “Distinguishing Liabilities from Equity”. All redeemable non-controlling interest reported in the consolidated statements of operations reflects the respective interests in the income or loss after income taxes of the subsidiaries attributable to the other parties, the effect of which is removed from the net loss available to the Company. The Company accreted the redemption value of the redeemable non-controlling interest over the redemption period using the straight-line method. | |||||
New Accounting Pronouncements | |||||
In June 2014, the FASB issued ASU No. 2014-10, which eliminates the concept of a development stage entity, or DSE, in its entirety from GAAP. Under existing guidance, DSEs are required to report incremental information, including inception-to-date financial information, in their financial statements. A DSE is an entity devoting substantially all of its efforts to establishing a new business and for which either planned principal operations have not yet commenced or have commenced but there has been no significant revenues generated from that business. Entities classified as DSEs will no longer be subject to these incremental reporting requirements after adopting ASU No. 2014-10. ASU No. 2014-10 is effective for fiscal years beginning after December 15, 2014, with early adoption permitted. Retrospective application is required for the elimination of incremental DSE disclosures. Prior to the issuance of ASU No. 2014-10, the Company had met the definition of a DSE since its inception. The Company elected to adopt this ASU early, and therefore it has eliminated the incremental disclosures previously required of DSEs, starting with this Quarterly Report on Form 10-Q. | |||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements. |
Development_Contracts
Development Contracts | 6 Months Ended |
Jun. 30, 2014 | |
Development Contracts | ' |
Development Contracts | ' |
NOTE 3 – DEVELOPMENT CONTRACTS | |
Department of Energy Awards 1 and 2 | |
In February 2007, the Company was awarded a grant for up to $40 million from the U.S. Department of Energy’s (“DOE”) cellulosic ethanol grant program to develop a solid waste biorefinery project at a landfill in Southern California. During October 2007, the Company finalized Award 1 for a total approved budget of just under $10,000,000 with the DOE. This award was a 60%/40% cost share, whereby 40% of approved costs may be reimbursed by the DOE pursuant to the total $40 million award announced in February 2007. | |
In December 2009, as a result of the American Recovery and Reinvestment Act, the DOE increased the Award 2 to a total of $81 million for Phase II of its Fulton Project. This is in addition to a renegotiated Phase I funding for development of the biorefinery of approximately $7 million out of the previously announced $10 million total. This brought the DOE’s total award to the Fulton project to approximately $88 million. The Company is currently drawing down on funds for Phase II of its Fulton Project. In September 2012 Award 1 was officially closed. | |
Since 2009, our operations had been financed to a large degree through funding provided by the DOE. We rely on access to this funding as a source of liquidity for capital requirements not satisfied by the cash flow from our operations. If we are unable to access government funding our ability to finance our projects and/or operations and implement our strategy and business plan will be severely hampered. | |
On December 23, 2013, the Company received notice from the DOE indicating that the DOE would no longer provide funding under Award 2 due to the Company’s inability to comply with certain deadlines related to providing certain information to the DOE with respect to the Company’s future financing arrangements for the Fulton Project. The Company is seeking to re-establish funding under Award 2 and has initiated the appeals process with the DOE. The Company shall exhaust all options available to it in order to reverse the DOE’s decision. Until the Company is notified of the outcome of its appeal, and as of August 11, 2014, we still have approximately $418,000 available under the grant prior to September 30, 2014. We cannot guarantee that we will continue to receive grants, loan guarantees, or other funding for our projects from the DOE. | |
As of June 30, 2014, the Company has received reimbursements of approximately $12,670,000 under these awards. |
Notes_Payable
Notes Payable | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Notes Payable | ' | ||||||||
NOTE 4 – NOTES PAYABLE | |||||||||
On March 28, 2012 the Company entered into a $300,000 promissory note with a third party. See Note 9 for additional information. | |||||||||
As further described below, the Company has entered into several convertible notes with Asher Enterprises, Inc. Under the terms of these notes, the Company is to repay any principal balance and interest, at 8% per annum at a given maturity date which is generally less than one year. The Company has the option to prepay the convertible promissory notes prior to maturity at varying prepayment penalty rates specified under the agreement. The convertible promissory notes are convertible into shares of the Company’s common stock after six months as calculated by multiplying 58% (42% discount to market) by the average of the lowest three closing bid prices during the 10 days prior to the conversion date. | |||||||||
The Company determined that since the conversion prices are variable and do not contain a floor, the conversion feature represents a derivative liability upon the ability to convert the loan after the six month period specified above. Since the conversion feature is only convertible after six months, there is no derivative liability upon issuance. However, the Company will account for the derivative liability upon the passage of time and the note becoming convertible if not extinguished, as defined above. | |||||||||
On July 31, 2012, the Company issued a convertible note of $63,500 to Asher Enterprises, Inc. pursuant to the terms above, with a maturity date of May 2, 2013. In accordance with the terms of the note, the note became convertible on January 27, 2013. | |||||||||
The Company calculated the derivative liability using the Black-Scholes pricing model for the note upon the initial date the note became convertible and recorded the fair market value of the derivative liability of approximately $47,000, resulting in a discount to the note. The discount was amortized over the term of the note and accelerated as the note was converted. As of June 30, 2014, all amounts outstanding in relation to this note have been converted to equity through the issuance of 1,642,578 shares of common stock. | |||||||||
On October 11, 2012, the Company issued a convertible note of $37,500 to Asher Enterprises, Inc. pursuant to the terms above, with a maturity date of July 15, 2013. In accordance with the terms of the note, the note became convertible on April 9, 2013. | |||||||||
The Company calculated the derivative liability using the Black-Scholes pricing model for the note upon the initial date the note became convertible and recorded the fair market value of the derivative liability of approximately $66,000, resulting in a discount to the note and an additional day one charge of $28,507 for the excess value of the derivative liability over the face value of the note. The excess value was recognized as an expense in the accompanying statement of operations. The discount was amortized over the term of the note. As of June 30, 2014 the note was fully converted through the issuance of 2,262,860 shares of common stock. | |||||||||
On December 21, 2012, the Company agreed to a convertible note of $32,500 to Asher Enterprises, Inc, which was funded in January 2013, such note had an interest rate of 8% per annum with a maturity date of September 26, 2013. In accordance with the terms of the note, the note became convertible on June 19, 2013. | |||||||||
The Company calculated the derivative liability using the Black-Scholes pricing model for the note upon the initial date the note became convertible and recorded the fair market value of the derivative liability of approximately $15,600, resulting in a discount to the note. The discount was amortized over the term of the note and accelerated as the note was converted. As of June 30, 2014, the note was fully converted into 4,017,599 shares of common stock. | |||||||||
On February 11, 2013, the Company agreed to a convertible note of $53,000 to Asher Enterprises, Inc. pursuant to the terms above, with a maturity date of November 13, 2013. In accordance with the terms of the note, the note became convertible on August 10, 2013. | |||||||||
The Company calculated the derivative liability using the Black-Scholes pricing model for the note upon the initial date the note became convertible and recorded the fair market value of the derivative liability of approximately $49,500, resulting in a discount to the note. The discount was amortized over the term of the note and accelerated as the note was converted. As of June 30, 2014, the entire discount was amortized to interest expense, with no remaining unamortized discount and the note was fully converted into 9,689,211 shares of common stock. | |||||||||
On June 13, 2013, the Company agreed to a convertible note of $32,500 to Asher Enterprises, Inc. pursuant to the terms above, with a maturity date of March 17, 2014. In accordance with the terms of the note, the note became convertible on December 10, 2013. | |||||||||
The Company calculated the derivative liability using the Black-Scholes pricing model for the note upon the initial date the note became convertible and recorded the fair market value of the derivative liability of approximately $28,000, resulting in a discount to the note. The discount was amortized over the term of the note and accelerated as the note was converted. As of June 30, 2014, the entire discount was amortized to interest expense, with no remaining unamortized discount and the note was fully converted into 22,207,699 shares of common stock. See below for assumptions used in valuing the derivative liability. | |||||||||
On December 19, 2013, the Company agreed to a convertible note of $37,500 to Asher Enterprises, Inc. which was funded and effective in January 2014 with terms identified above and a maturity date of December 23, 2014. The conversion feature was not triggered until after quarter end due to the effective date of the note being in January 2014. Subsequent to June 30, 2014, all of the principal and accrued interest outstanding in relation to this note were converted to equity through the issuance of 24,537,990 shares of common stock. | |||||||||
Using the Black-Scholes pricing model, with the range of inputs listed below, we calculated the fair market value of the conversion feature at inception (as applicable), at each conversion event, and at quarter end. Based on valuation conducted during the six months and at June 30, 2014 of derivative liabilities related to Asher Enterprises, Inc. notes, the Company recognized a gain on derivative liabilities of $86,527, which is included in the accompanying statement of operations within Gain (loss) from change in fair value of derivative liabilities. | |||||||||
During the six months ending June 30, 2014, the range of inputs used to calculate derivative liabilities noted above were as follows: | |||||||||
Six months ended | |||||||||
30-Jun-14 | |||||||||
Annual dividend yield | - | ||||||||
Expected life (years) | 0.04 - 0.18 | ||||||||
Risk-free interest rate | 0.04 - 0.07 | % | |||||||
Expected volatility | 197 | % | |||||||
In addition, fees paid to secure the convertible debt were accounted for as deferred financing costs and capitalized in the accompanying balance sheet or considered an on-issuance discount to the notes. The deferred financing costs and discounts, as applicable, are amortized over the term of the notes. | |||||||||
As of June 30, 2014, the Company amortized on-issuance discounts totaling $1,250 with approximately $1,250 remaining. | |||||||||
Tarpon Bay Convertible Notes | |||||||||
Pursuant to a 3(a)10 transaction with Tarpon Bay Partners LLC (“Tarpon”), on November 4, 2013, the Company issued to Tarpon a convertible promissory note in the principal amount of $25,000 (the “Tarpon Initial Note”). Under the terms of the Tarpon Initial Note, the Company shall pay Tarpon $25,000 on the date of maturity which was January 30, 2014. This note is convertible by Tarpon into the Company’s Common Shares at a 50% discount to the lowest closing bid price for the Common Stock for the twenty (20) trading days ending on the trading day immediately before the conversion date. | |||||||||
Also pursuant to the 3(a)10 transaction with Tarpon, on December 23, 2013, the Company issued a convertible promissory note in the principal amount of $50,000 in favor of Tarpon as a success fee (the “Tarpon Success Fee Note”). The Tarpon Success Fee Note was due on June 30, 2014. The Tarpon Success Fee Note is convertible into shares of the Company’s common stock at a conversion price for each share of Common Stock at a 50% discount from the lowest closing bid price in the twenty (20) trading days prior to the day that Tarpon requests conversion. | |||||||||
Each of the above notes were issued without funds being received. Accordingly, the notes were issued with a full on-issuance discount that was amortized over the term of the notes. During the six months ended June 30, 2014, amortization of approximately $51,960 was recognized to interest expense related to the discounts on the notes. | |||||||||
As of June 30, 2014, both the Tarpon Initial Note and the Tarpon Success Fee Note were in default. Subsequent to quarter end, the Company paid the Tarpon Initial Note (See Note 10), although the Tarpon Success Fee Note is still in default as of August 11, 2014. | |||||||||
Because the conversion price is variable and does not contain a floor, the conversion feature represents a derivative liability upon issuance. Accordingly, the Company calculated the derivative liability using the Black-Sholes pricing mode for the notes upon inception, resulting in a day one loss of approximately $96,000. The derivative liability was marked to market as of June 30, 2014 which resulted in a loss of approximately $20,000. The Company used the following assumptions as of June 30, 2014 and December 31, 2013: | |||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
Annual dividend yield | 0 | % | 0 | % | |||||
Expected life (years) | 0.00 - 0.01 | 0.8 | |||||||
Risk-free interest rate | 0.02 | % | 0.02 | % | |||||
Expected volatility | 234 | % | 159 | % | |||||
During the six months ended June 30, 2014, the Company paid $12,500 in cash on the Tarpon Initial Note, and subsequent to June 30, 2014, the Company paid the remaining $12,500 in cash. | |||||||||
AKR Promissory Note | |||||||||
On April 8, 2014, the Company finalized a $350,000 promissory note in favor of AKR Inc (“AKR Note”). Under the terms of the agreement, the note is due on April 8, 2015, and requires the Company to (i) incur interest at five percent (5%) per annum; (ii) issue on April 8, 2014 to AKR warrants allowing them to buy 7,350,000 common shares of the Company at an exercise price of $0.007 per common share, such warrants to expire on April 8, 2016 (“AKR Warrant A”); (iii) issue on August 8, 2014 to AKR warrants allowing them to buy 7,350,000 common shares of the Company at an exercise price of $0.007 per common share, such warrants to expire on April 8, 2016 (“AKR Warrant B”); and (iv) issue on November 8, 2014 to AKR warrants allowing them to buy 8,400,000 common shares of the Company at an exercise price of $0.007 per common share, such warrants to expire on April 8, 2016 (“AKR Warrant C”). The Company may prepay the debt, prior to maturity with no prepayment penalty. | |||||||||
The Company valued the warrants as of the date of the note and recorded a discount of $42,380 based the relative fair value of the warrants compared to the debt. During the six months ended June 30, 2014 the Company amortized $9,681 of the discount to interest expense. As of June 30, 2014 unamortized discount of $32,699 remains. The Company assessed the fair value of the warrants based on the Black-Scholes pricing model. See below for variables used in assessing the fair value. | |||||||||
8-Apr-14 | |||||||||
Annual dividend yield | - | ||||||||
Expected life (years) of | 1.41 - 2.00 | ||||||||
Risk-free interest rate | 0.4 | % | |||||||
Expected volatility | 183% - 206 | % | |||||||
On April 24, 2014, the Company finalized an additional $30,000 promissory note in favor of AKR Inc (“2nd AKR Note”). Under the terms of the agreement, the note is due on July 24, 2014, although the Company and AKR Inc extended the maturity date as disclosed in Note 10. Under the terms of this note, the Company is to repay any principal balance and interest, at 5% per annum at maturity. Company may prepay the debt, prior to maturity with no prepayment penalty. |
Outstanding_Warrant_Liability
Outstanding Warrant Liability | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Outstanding Warrant Liability | ' | ||||||||
NOTE 5 – OUTSTANDING WARRANT LIABILITY | |||||||||
The Company issued 428,571 warrants to purchase common stock in connection with the Stock Purchase Agreement entered into on January 19, 2011 with Lincoln Park Capital, LLC (See Note 9). These warrants are accounted for as a liability under ASC 815. The Company assesses the fair value of the warrants quarterly based on the Black-Scholes pricing model. See below for variables used in assessing the fair value. | |||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
Annual dividend yield | - | - | |||||||
Expected life (years) of | 1.55 | 2.05 | |||||||
Risk-free interest rate | 0.47 | % | 0.38 | % | |||||
Expected volatility | 214 | % | 150 | % | |||||
In connection with these warrants, the Company recognized a gain/(loss) on the change in fair value of warrant liability of $174, $7,736, ($238), and $21,855 from the change in fair value of these warrants during the three and six-months ended June 30, 2014 and 2013. | |||||||||
Expected volatility is based primarily on historical volatility. Historical volatility was computed using weekly pricing observations for recent periods that correspond to the expected life of the warrants. The Company believes this method produces an estimate that is representative of our expectations of future volatility over the expected term of these warrants. The Company currently has no reason to believe future volatility over the expected remaining life of these warrants is likely to differ materially from historical volatility. The expected life is based on the remaining term of the warrants. The risk-free interest rate is based on U.S. Treasury securities rates. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
NOTE 6 – COMMITMENTS AND CONTINGENCIES | |
Fulton Project Lease | |
On July 20, 2010, the Company entered into a thirty year lease agreement with Itawamba County, Mississippi for the purpose of the development, construction, and operation of the Fulton Project. At the end of the primary 30 year lease term, the Company shall have the right for two additional thirty year terms. The current lease rate is computed based on a per acre rate per month that is approximately $10,300 per month. The lease stipulates the lease rate is to be reduced at the time of the construction start by a Property Cost Reduction Formula which can substantially reduce the monthly lease costs. The lease rate shall be adjusted every five years to the Consumer Price Index. | |
Rent expense under non-cancellable leases was approximately $30,900, $30,900, $61,800, and $61,800 during the three and six-months ended June 30, 2014 and 2013, respectively. | |
As of June 30, 2014 and December 31, 2013, $0, and $233,267 of the monthly lease payments were included in accounts payable on the accompanying balance sheets During the first half of 2014, the County of Itawamba gave the Company credit for past site preparation reimbursements provided to the County through DOE reimbursements totaling approximately $96,000 which was recorded as a gain in the accompanying statement of operations. The remaining past due balances from December 31, 2013 were paid in full. | |
Legal Proceedings | |
On February 26, 2013, the Company received notice that the Orange County Superior Court (the “Court”) issued a Minute Order (the “Order”) in connection with certain shareholders’ claims of breach of contract and declaratory relief related to 5,740,741 warrants (the “Warrants”) issued by the Company. | |
Pursuant to the Order, the Court ruled in favor of the shareholders on the two claims, finding that the Warrants contain certain anti-dilution protective provisions which provide for the re-adjustment of the exercise price of such Warrants upon certain events and that such exercise price per share of the Warrants must be decreased to $0.00. | |
The Company has considered these warrants exercised based on the notice of exercise received from the respective shareholders in December 2012. | |
On March 7, 2013, the shareholders making claims provided their request for judgment based on the Order received, which has been initially refused by the Court via a second minute order received by the Company on April 8, 2013. On April 15, 2013, the Company’s counsel submitted a proposed judgment to the Court as per the Courts request, which followed the Order and provided for no monetary damages against the Company. On May 14, 2013, this proposed judgment was approved by the Court (“Judgment”). | |
On June 20, 2013, the Company filed motions to vacate the Judgment, a motion for a new trial, and a motion to stay enforcement of the Judgment, all of which were denied on June 27, 2013. | |
On August 2, 2013, pursuant to the exercise notice of the Warrants, and the Order, the Company issued 5,740,741 shares to certain shareholders. See Note 9 for additional information. | |
Other than the above, we are currently not involved in litigation that we believe will have a materially adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our company’s or our company’s subsidiaries’ officers or directors in their capacities as such, in which an adverse decision is expected to have a material adverse effect. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
NOTE 7 – RELATED PARTY TRANSACTIONS | |
On December 15, 2010, the Company entered into a loan agreement (the “Loan Agreement”) by and between Arnold Klann, the Chief Executive Officer (“CEO”), Chairman of the board of directors and majority shareholder of the Company, as lender (the “Lender”), and the Company, as borrower. Pursuant to the Loan Agreement, the Lender agreed to advance to the Company a principal amount of Two Hundred Thousand United States Dollars ($200,000) (the “Loan”). The Loan Agreement requires the Company to (i) pay to the Lender a one-time amount equal to fifteen percent (15%) of the Loan (the “Fee Amount”) in cash or shares of the Company’s common stock at a value of $0.50 per share, at the Lender’s option; and (ii) issue the Lender warrants allowing the Lender to buy 500,000 common shares of the Company at an exercise price of $0.50 per common share, such warrants expired on December 15, 2013. The Company has promised to pay in full the outstanding principal balance of any and all amounts due under the Loan Agreement within thirty (30) days of the Company’s receipt of investment financing or a commitment from a third party to provide One Million United States Dollars ($1,000,000) to the Company or one of its subsidiaries (the “Due Date”), to be paid in cash. | |
On November 10, 2011, the Company obtained a line of credit in the amount of $40,000 from its CEO to provide additional liquidity to the Company as needed, at his sole discretion. Under the terms of the note, the Company is to repay any principal balance and interest, at 12% per annum, within 30 days of receiving qualified investment financing of $100,000 or more. During the three months ended June 30, 2014, the CEO loaned the Company an additional $40,000 under the line of credit, bringing the balance to $51,230, which is in excess of the line of credit limit, however, subsequent to June 30, 2014, the Company and the CEO amended this line of credit so that the maximum amount that could be borrowed is $55,000 (See Note 10). |
Redeemable_NonControlling_Inte
Redeemable Non-Controlling Interest | 6 Months Ended |
Jun. 30, 2014 | |
Noncontrolling Interest [Abstract] | ' |
Redeemable Noncontrolling Interest | ' |
NOTE 8 – REDEEMABLE NON-CONTROLLING INTEREST | |
On December 23, 2010, the Company sold a one percent (1%) membership interest in its operating subsidiary, BlueFire Fulton Renewable Energy, LLC (“BlueFire Fulton” or the “Fulton Project”), to an accredited investor for a purchase price of $750,000 (“Purchase Price”). The Company maintains a 99% ownership interest in the Fulton Project. In addition, the investor received a right to require the Company to redeem the 1% interest for $862,500, or any pro-rata amount thereon. The redemption is based upon future contingent events based upon obtaining financing for the construction of the Fulton Project. The third party equity interests in the consolidated joint ventures are reflected as redeemable non-controlling interests in the Company’s consolidated financial statements outside of equity. The Company accreted the redeemable non-controlling interest for the total redemption price of $862,500 through the estimated forecasted financial close, originally estimated to be the end of the third quarter of 2011. | |
Net income (loss) attributable to the redeemable non-controlling interest during for the three and six-months ended June 30, 2014 and 2013 was $1, $(685), $2,373, and $(2,742), respectively which netted against the value of the redeemable non-controlling interest in temporary equity. The allocation of income (loss) was presented on the statement of operations. |
Stockholders_Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Deficit | ' |
NOTE 9 – STOCKHOLDERS’ DEFICIT | |
Stock-Based Compensation | |
During the three and six-months ended June 30, 2014 and 2013, the Company recognized stock-based compensation, including consultants, of approximately $9,700, $0, $46,700, and $9,100, to general and administrative expenses and $0, $0, $0, and $0 to project development expenses, respectively. There is no additional future compensation expense to record as of June 30, 2014 based on the previous awards. | |
Stock Purchase Agreement | |
On January 19, 2011, the Company signed a $10 million purchase agreement (the “Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“LPC”), an Illinois limited liability company. The Company also entered into a registration rights agreement with LPC whereby we agreed to file a registration statement related to the transaction with the U.S. Securities & Exchange Commission (“SEC”) covering the shares that may be issued to LPC under the Purchase Agreement within ten days of the agreement. Although under the Purchase Agreement the registration statement was to be declared effective by March 31, 2011, LPC did not terminate the Purchase Agreement. The registration statement was declared effective on May 10, 2011, without any penalty. The Purchase Agreement was terminated in July 18, 2013. During the three and six-months ended June 30, 2014 and 2013 the Company drew $0, $0, $0, and $0 on the Purchase Agreement. | |
Upon signing the Purchase Agreement, BlueFire received $150,000 from LPC as an initial purchase under the $10 million commitment in exchange for 428,571 shares of our common stock and warrants to purchase 428,571 shares of our common stock at an exercise price of $0.55 per share. The warrants contain a ratchet provision in which the exercise price will be adjusted based on future issuances of common stock, excluding certain issuances; if issuances are at prices lower than the current exercise price (see Note 6). The warrants have an expiration date of January 2016. | |
Equity Facility Agreement | |
On March 28, 2012, BlueFire finalized a committed equity facility (the “Equity Facility”) with TCA Global Credit Master Fund, LP, a Cayman Islands limited partnership (“TCA”), whereby the parties entered into (i) a committed equity facility agreement (the “Equity Agreement”) and (ii) a registration rights agreement (the “Registration Rights Agreement”). Pursuant to the terms of the Equity Agreement, for a period of twenty-four (24) months commencing on the date of effectiveness of the Registration Statement (as defined below), TCA committed to purchase up to $2,000,000 of BlueFire’s common stock, par value $0.001 per share (the “Shares”), pursuant to Advances (as defined below), covering the Registrable Securities (as defined below). The purchase price of the Shares under the Equity Agreement is equal to ninety-five percent (95%) of the lowest daily volume weighted average price of BlueFire’s common stock during the five (5) consecutive trading days after BlueFire delivers to TCA an Advance notice in writing requiring TCA to advance funds (an “Advance”) to BlueFire, subject to the terms of the Equity Agreement. The “Registrable Securities” include (i) the Shares; and (ii) any securities issued or issuable with respect to the Shares by way of exchange, stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization or otherwise. As further consideration for TCA entering into and structuring the Equity Facility, BlueFire paid to TCA a fee by issuing to TCA shares of BlueFire’s common stock that equal a dollar amount of $110,000 (the “Facility Fee Shares”). It is the intention of BlueFire and TCA that the value of the Facility Fee Shares shall equal $110,000. In the event the value of the Facility Fee Shares issued to TCA does not equal $110,000 after a nine month evaluation date, the Equity Agreement provides for an adjustment provision allowing for necessary action (either the issuance of additional shares to TCA or the return of shares previously issued to TCA to BlueFire’s treasury) to adjust the number of Facility Fee Shares issued. BlueFire also entered into the Registration Rights Agreement with TCA. Pursuant to the terms of the Registration Rights Agreement, BlueFire is obligated to file a registration statement (the “Registration Statement”) with the U.S. Securities and Exchange Commission (the “SEC’) to cover the Registrable Securities within 45 days of closing. BlueFire must use its commercially reasonable efforts to cause the Registration Statement to be declared effective by the SEC by a date that is no later than 90 days following closing. | |
In connection with the issuance of approximately 280,000 shares for the $110,000 facility fee as described above, the Company capitalized said amount within deferred financings costs in the accompanying balance sheet as of March 31, 2012, along with other costs incurred as part Equity Facility and the Convertible Note described below. Additional costs related to the Equity Facility and paid from the funds of the Convertible Note described below, were approximately $60,000. Aggregate costs of the Equity Facility were $170,000. Because these costs were to access the Equity Facility, earned by TCA regardless of the Company drawing on the Equity Facility, and not part of a funding, they are treated akin to debt costs The deferred financings costs related to the Equity Facility were amortized over one (1) year on a straight-line basis. The Company believed this accelerated amortization, which is less than the two year Equity Facility term, was appropriate based on substantial doubt about the Company’s ability to continue as a going concern. As of December 31, 2012, the Company determined that it was not probable the Registration Statement would become effective under the original structure of the agreement and accordingly, wrote off all remaining deferred financing costs related to the Equity Agreement. | |
On March 28, 2012, BlueFire entered into a security agreement (the “Security Agreement”) with TCA, related to a $300,000 convertible promissory note issued by BlueFire in favor of TCA (the “Convertible Note”). The Security Agreement granted to TCA a continuing, first priority security interest in all of BlueFire’s assets, wheresoever located and whether now existing or hereafter arising or acquired. On March 28, 2012, BlueFire issued the Convertible Note in favor of TCA. The maturity date of the Convertible Note was March 28, 2013, and the Convertible Note bore interest at a rate of twelve percent (12%) per annum with a default rate of eighteen percent (18%) per annum. The Convertible Note was convertible into shares of BlueFire’s common stock at a price equal to ninety-five percent (95%) of the lowest daily volume weighted average price of BlueFire’s common stock during the five (5) trading days immediately prior to the date of conversion. The Convertible Note had the option to be prepaid in whole or in part at BlueFire’s option without penalty. The proceeds received by the Company under the purchase agreement were used for general working capital purposes which include costs reimbursed under the DOE cost share program. | |
In connection with the Convertible Note, approximately $93,000 was withheld and immediately disbursed to cover costs of the Convertible Note and Equity Facility described above. The costs related to the Convertible Note were $24,800 which were capitalized as deferred financing costs; were amortized on a straight-line basis over the term of the Convertible Note. In addition, $7,500 was dispersed to cover legal fees. After all costs, the Company received approximately $207,000 in cash from the Convertible Note. Amortization of the deferred financing costs during the six months ended June 30, 2014 and 2013 was approximately $0 and $38,617, respectively. As of June 30, 2014, there were no remaining deferred financing costs. | |
This note contained an embedded conversion feature whereby the holder could convert the note at a discount to the fair value of the Company’s common stock price. Based on applicable guidance the embedded conversion feature was considered a derivative instrument and bifurcated. This liability was recorded on the face of the financial statements as “derivative liability”, and was revalued each reporting period. During the three months ended June 30, 2014, the note was repaid in full along with accrued interest and fees thereon. Accordingly, the remaining derivative liability of $13,189 was transferred to equity. | |
On April 11, 2014, the Convertible Note with TCA was repaid in full. | |
Liability Purchase Agreement | |
On December 9, 2013, The Circuit Court of the Second Judicial Circuit in and for Leon County, Florida (the “Court”), entered an order (the “Order”) approving, among other things, the fairness of the terms and conditions of an exchange pursuant to Section 3(a)(10) of the Securities Act of 1933, in accordance with a stipulation of settlement (the “Settlement Agreement”) between the Company, and Tarpon Bay Partners, LLC, a Florida limited liability company (“Tarpon”), in the matter entitled Tarpon Bay Partners, LLC v. BlueFire Renewables, Inc., Case No. 2013-CA-2975 (the “Action”). Tarpon commenced the Action against the Company on November 21, 2013 to recover an aggregate of $583,710 of past-due accounts payable of the Company, which Tarpon had purchased from certain creditors of the Company pursuant to the terms of separate receivable purchase agreements between Tarpon and each of such vendors (the “Assigned Accounts”), plus fees and costs (the “Claim”). The Assigned Accounts relate to certain legal, accounting, financial services, and the repayment of aged debt. The Order provides for the full and final settlement of the Claim and the Action. The Settlement Agreement became effective and binding upon the Company and Tarpon upon execution of the Order by the Court on December 9, 2013. Notwithstanding anything to the contrary in the Stipulation, the number of shares beneficially owned by Tarpon will not exceed 9.99% of the Company’s Common Stock. In connection with the Settlement Agreement, the Company relied on the exemption from registration provided by Section 3(a)(10) under the Securities Act. | |
Pursuant to the terms of the Settlement Agreement approved by the Order, the Company shall issue and deliver to Tarpon shares (the “Settlement Shares”) of the Company’s Common Stock in one or more tranches as necessary, and subject to adjustment and ownership limitations, sufficient to generate proceeds such that the aggregate Remittance Amount (as defined in the Settlement Agreement) equals the Claim. In addition, pursuant to the terms of the Settlement Agreement, the Company issued to Tarpon the Tarpon Initial Note in the principal amount of $25,000. Under the terms of the Tarpon Initial Note, the Company shall pay Tarpon $25,000 on the date of maturity which was January 30, 2014. This Note is convertible by Tarpon into the Company’s Common Shares (See Note 4). | |
Pursuant to the fairness hearing, the Order, and the Company’s agreement with Tarpon, on December 23, 2013, the Company issued the Tarpon Success Fee Note in the principal amount of $50,000 in favor of Tarpon as a commitment fee. The Tarpon Success Fee Note was due on June 30, 2014. The Tarpon Success Fee Note is convertible into shares of the Company’s common stock (See Note 4). | |
In connection with the settlement, on December 18, 2013 the Company issued 6,619,835 shares of Common Stock to Tarpon in which gross proceeds of $29,802 were generated from the sale of the Common Stock. In connection with the transaction, Tarpon received fees of $7,450 and providing payments of $22,352 to settle outstanding vendor payables. During the six months ended June 30, 2014, the Company issued Tarpon 61,010,000 shares of Common Stock from which gross proceeds of $163,406 were generated from the sale of the Common Stock. In connection with the transaction, Tarpon received fees of $42,402 and providing payments of $121,004 to settle outstanding vendor payables. Any shares not used by Tarpon are subject to return to the Company. Accordingly, the Company accounts for these shares as issued but not outstanding until the shares have been sold by Tarpon and the proceeds are known. Net proceeds received by Tarpon are included as a reduction to accounts payable or other liability as applicable, as such funds are legally required to be provided to the party Tarpon purchased the debt from. | |
Warrants Exercised | |
Some of our warrants contain a provision in which the exercise price is to be adjusted for future issuances of common stock at prices lower than their current exercise price. | |
In 2012, certain shareholders’ owning an aggregate of 5,740,741 warrants made claims of the Company that the exercise price of their warrants should have been adjusted due to a certain issuance of common shares by the Company (see Note 6). The Company believed that said issuance would not trigger adjustment based on the terms of the respective agreements. | |
On December 4, 2012, these shareholders presented exercise forms to the Company to exercise all 5,740,741 warrants for a like amount of common shares. The warrants were exercised at $0.00, which is the amount the shareholders’ believed the new exercise price should be based the ratchet provision and their claims. | |
On February 26, 2013, the Company received notice that the Court issued an Order in connection with these certain shareholders’ claims of breach of contract and declaratory relief related to 5,740,741 warrants issued by the Company. | |
Pursuant to the Order, the Court ruled in favor of the shareholders on the two claims, finding that the Warrants contain certain anti-dilution protective provisions which provide for the re-adjustment of the exercise price of such Warrants upon certain events and that such exercise price per share of the Warrants must be decreased to $0.00. | |
The Company has considered these warrants exercised based on the notice of exercise received from the respective shareholders in December 2012. The Company determined, that based on the Order by the Court a ratchet event had taken place based on the Order and claims made. The Company used December 4, 2012 as the date in which the new terms were considered to be in force based on the Shareholders’ notice to exercise on that date and the Courts subsequent Order that allowed the Shareholders to do so. | |
As such, the modification of the exercise price was treated as an extinguishment of the warrants under the previous terms, with a revaluation of the warrants with new terms. As such, the warrant liability was valued immediately before extinguishment with the gain/loss recognized through earnings and remaining value reclassified to equity. Because there was only approximately one week of remaining life under the unmodified terms and because the previous exercise price was out of the money ($2.90) compared to the price of our common stock on the day of extinguishment ($0.14), the warrant value upon extinguishment was considered to be near zero based on a Black-Scholes calculation, which also used volatility of 104.2% and risk-free rate of 0.07%. | |
In addition, the new warrant liability was valued immediately after the modification but prior to the exercise by the Shareholders with the new value being recognized through earnings. The “new” warrants had a fixed price, fixed number of shares, and effectively no ratchet provision based on the Order. There were no circumstances at that time that would require or allow for net cash settlement. As such, the warrants qualified for equity accounting under ASC 815. The Company valued the warrants with new terms at approximately $804,000 based on the fair value of the Company’s common stock on December 4, 2012 ($0.14) as it was considered an immediate exercise and therefore, the value of the shares was known on the date of exercise. Accordingly, the warrants were considered committed shares to be issued in the consolidated balance sheets as of December 31, 2012. On August 2, 2013, the Company issued these 5,740,741 shares and the value transferred to additional paid-in capital. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
NOTE 10 – SUBSEQUENT EVENTS | |
Subsequent to June 30, 2014, the holder of various convertible notes, converted $37,500 in principal, along with $1,500 of accrued interest, of a note with a maturity date of December 23, 2014, into 24,537,990 shares of common stock. See Note 4 for more information on the conversion features of the notes. | |
Subsequent to June 30, 2014, the Company paid the remaining $12,500 on the Tarpon Initial Note. | |
Subsequent to June 30, 2014, the Company issued the AKR Warrant B, consisting of warrants to purchase 7,350,000 shares of the Company’s common stock, in connection with the AKR Note transaction on April 8, 2014 (See Note 4). | |
Subsequent to June 30, 2014, the Company finalized an extension to the 2nd AKR Note, which amends the original note so that the maturity date is now December 31, 2014 (See Note 4). | |
Subsequent to June 30, 2014, the Company and the CEO amended a line of credit provided by the CEO in order to grant additional liquidity to the Company as needed from a maximum of $40,000 to a maximum amount of $55,000. All of the other terms remained the same. See Note 7 for more information on the line of credit. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Going Concern | ' | ||||
Going Concern | |||||
The Company has incurred losses since Inception. Management has funded operations primarily through proceeds received in connection with the reverse merger, loans from its majority shareholder, the private placement of the Company’s common stock in December 2007 for net proceeds of approximately $14,500,000, the issuance of convertible notes with warrants in July and in August 2007, various convertible notes, and Department of Energy reimbursements throughout 2009 to 2014. The Company may encounter further difficulties in establishing operations due to the time frame of developing, constructing and ultimately operating the planned bio-refinery projects. | |||||
As of June 30, 2014, the Company has negative working capital of approximately $1,560,000. Management has estimated that operating expenses for the next 12 months will be approximately $1,700,000, excluding engineering costs related to the development of bio-refinery projects. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Throughout the remainder of 2014, the Company intends to fund its operations with remaining reimbursements under the Department of Energy contract as available, as well as seek additional funding in the form of equity or debt. The Company’s ability to get reimbursed under the DOE contract is dependent on the availability of cash to pay for the related costs and the availability of funds remaining under the contract after the discontinuance of the Department of Energy contract further disclosed in Note 3. As of August 11, 2014, the Company expects the current resources available to them will only be sufficient for a period of approximately one month unless significant additional financing is received. Management has determined that the general expenditures must be reduced and additional capital will be required in the form of equity or debt securities. In addition, if we cannot raise additional short term capital we may consume all of our cash reserved for operations. There are no assurances that management will be able to raise capital on terms acceptable to the Company. If we are unable to obtain sufficient amounts of additional capital, we may be required to reduce the scope of our planned development, which could harm our business, financial condition and operating results. The financial statements do not include any adjustments that might result from these uncertainties. | |||||
Additionally, the Company’s Lancaster plant is currently shovel ready, except for the air permit which the Company will need to renew and only requires minimal capital to maintain until funding is obtained for the construction. This project shall continue once we receive the funding necessary to construct the facility. | |||||
As of December 31, 2010, the Company completed the detailed engineering on our proposed Fulton Project, procured all necessary permits for construction of the plant, and began site clearing and preparation work, signaling the beginning of construction. As of June 30, 2014, all site preparation activities have been completed, including clearing and grating of the site, building access roads, completing railroad tie-ins to connect the site to the rail system, and finalizing the layout plan to prepare for the site foundation. As of December 31, 2013, the construction-in-progress was deemed impaired due to the discontinuance of future funding from the DOE further described in Note 3. | |||||
We estimate the total construction cost of the bio-refineries to be in the range of approximately $300 million for the Fulton Project and approximately $100 million to $125 million for the Lancaster Biorefinery. These cost approximations do not reflect any increase/decrease in raw materials or any fluctuation in construction cost that would be realized by the dynamic world metals markets or inflation of general costs of construction. The Company is currently in discussions with potential sources of financing for these facilities but no definitive agreements are in place. The Company cannot continue significant development or furtherance of the Fulton project until financing for the construction of the Fulton plant is obtained. | |||||
Basis of Presentation | ' | ||||
Basis of Presentation | |||||
The accompanying unaudited consolidated interim financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities Exchange Commission. Certain information and disclosures normally included in the annual financial statements prepared in accordance with the accounting principles generally accepted in the Unites States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these financial statements have been included. Such adjustments consist of normal recurring adjustments. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2013. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the full year. | |||||
In July 2014, the Company elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the company to remove the inception to date information and all references to development stage. | |||||
Principles of Consolidation | ' | ||||
Principles of Consolidation | |||||
The consolidated financial statements include the accounts of BlueFire Renewables, Inc., and its wholly-owned subsidiaries, BlueFire Ethanol, Inc., and Sucre Source LLC. BlueFire Ethanol Lancaster, LLC, and BlueFire Fulton Renewable Energy LLC (excluding 1% interest sold) are wholly-owned subsidiaries of BlueFire Ethanol, Inc. All intercompany balances and transactions have been eliminated in consolidation. | |||||
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 revenues and expenses during the reported periods. Actual results could materially differ from those estimates. | |||||
Project Development | ' | ||||
Project Development | |||||
Project development costs are either expensed or capitalized. The costs of materials and equipment that will be acquired or constructed for project development activities, and that have alternative future uses, both in project development, marketing or sales, will be classified as property and equipment and depreciated over their estimated useful lives. To date, project development costs include the research and development expenses related to the Company’s future cellulose-to-ethanol production facilities. During three and six-months ended June 30, 2014 and 2013, research and development costs included in Project Development were approximately $202,000, $128,000, $415,000, and $247,000, respectively. | |||||
Convertible Debt | ' | ||||
Convertible Debt | |||||
Convertible debt is accounted for under the guidelines established by Accounting Standards Codification (“ASC”) 470-20 “Debt with Conversion and Other Options”. ASC 470-20 governs the calculation of an embedded beneficial conversion, which is treated as an additional discount to the instruments where derivative accounting (explained below) does not apply. The amount of the value of warrants and beneficial conversion feature may reduce the carrying value of the instrument to zero, but no further. The discounts relating to the initial recording of the derivatives or beneficial conversion features are accreted over the term of the debt. | |||||
The Company calculates the fair value of warrants and conversion features issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of ASC 718 “Compensation – Stock Compensation”, except that the contractual life of the warrant or conversion feature is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense. | |||||
The Company accounts for modifications of its BCF’s in accordance with ASC 470-50 “Modifications and Extinguishments”. ASC 470-50 requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment. | |||||
Equity Instruments Issued with Registration Rights Agreement | ' | ||||
Equity Instruments Issued with Registration Rights Agreement | |||||
The Company accounts for these penalties as contingent liabilities, applying the accounting guidance of ASC 450 “Contingencies”. This accounting is consistent with views established in ASC 825 “Financial Instruments”. Accordingly, the Company recognizes damages when it becomes probable that they will be incurred and amounts are reasonably estimable. | |||||
In connection with the Company signing the $2,000,000 Equity Facility with TCA on March 28, 2012, the Company agreed to file a registration statement related to the transaction with the Securities and Exchange Commission (“SEC”) covering the shares that may be issued to TCA under the Equity Facility within 45 days of closing. Although under the Registration Rights Agreement the registration statement was to be declared effective within 90 days following closing, it was not declared effective. The Company was working with TCA to resolve this issue and, on April 11, 2014, the Equity Facility was canceled and related convertible note repaid in full. No penalties were incurred as part of the repayment. | |||||
Fair Value of Financial Instruments | ' | ||||
Fair Value of Financial Instruments | |||||
The Company follows the guidance of ASC 820 – “Fair Value Measurement and Disclosure”. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: | |||||
Level 1. Observable inputs such as quoted prices in active markets; | |||||
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |||||
Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||
The Company did not have any level 1 financial instruments at June 30, 2014 or December 31, 2013. | |||||
As of June 30, 2014, the Company’s warrant liability and derivative liability are considered level 2 items (see Notes 4 and 5). | |||||
As of June 30, 2014 and December 31, 2013 the Company’s redeemable non-controlling interest is considered a level 3 item and changed during the six months ended June 30, 2014 as follows. | |||||
Balance at December 31, 2013 | $ | 856,044 | |||
Net income attributable to non-controlling interest | 2,373 | ||||
Balance at June 30, 2014 | $ | 858,417 | |||
Risks and Uncertainties | ' | ||||
Risks and Uncertainties | |||||
The Company’s operations are subject to new innovations in product design and function. Significant technical changes can have an adverse effect on product lives. Design and development of new products are important elements to achieve and maintain profitability in the Company’s industry segment. The Company may be subject to federal, state and local environmental laws and regulations. The Company does not anticipate expenditures to comply with such laws and does not believe that regulations will have a material impact on the Company’s financial position, results of operations, or liquidity. The Company believes that its operations comply, in all material respects, with applicable federal, state, and local environmental laws and regulations. | |||||
Income (loss) per Common Share | ' | ||||
Income (loss) per Common Share | |||||
The Company presents basic income (loss) per share (“EPS”) and diluted EPS on the face of the consolidated statement of operations. Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. As of June 30, 2014 and 2013, the Company had 7,778,571 and 928,571 warrants, respectively, for which all of the exercise prices were in excess of the average closing price of the Company’s common stock during the corresponding period and thus no shares are considered dilutive under the treasury stock method of accounting and their effects would have been antidilutive due to the loss in certain of the periods presented. | |||||
Derivative Financial Instruments | ' | ||||
Derivative Financial Instruments | |||||
We do not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of our financial instruments. However, under the provisions ASC 815 – “Derivatives and Hedging” certain financial instruments that have characteristics of a derivative, as defined by ASC 815, such as embedded conversion features on our Convertible Notes, that are potentially settled in the Company’s own common stock, are classified as liabilities when either (a) the holder possesses rights to net-cash settlement or (b) physical or net-share settlement is not within our control. In such instances, net-cash settlement is assumed for financial accounting and reporting purposes, even when the terms of the underlying contracts do not provide for net-cash settlement. Derivative financial instruments are initially recorded, and continuously carried, at fair value each reporting period. | |||||
The value of the embedded conversion feature is determined using the Black-Scholes option pricing model. All future changes in the fair value of the embedded conversion feature will be recognized currently in earnings until the note is converted or redeemed. Determining the fair value of derivative financial instruments involves judgment and the use of certain relevant assumptions including, but not limited to, interest rate risk, credit risk, volatility and other factors. The use of different assumptions could have a material effect on the estimated fair value amounts. | |||||
Redeemable - Non-Controlling Interest | ' | ||||
Redeemable - Non-controlling Interest | |||||
Redeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets outside permanent equity. As these redeemable non-controlling interests provide for redemption features not solely within the control of the issuer, we classify such interests outside of permanent equity in accordance with ASC 480, “Distinguishing Liabilities from Equity”. All redeemable non-controlling interest reported in the consolidated statements of operations reflects the respective interests in the income or loss after income taxes of the subsidiaries attributable to the other parties, the effect of which is removed from the net loss available to the Company. The Company accreted the redemption value of the redeemable non-controlling interest over the redemption period using the straight-line method. | |||||
New Accounting Pronouncements | ' | ||||
New Accounting Pronouncements | |||||
In June 2014, the FASB issued ASU No. 2014-10, which eliminates the concept of a development stage entity, or DSE, in its entirety from GAAP. Under existing guidance, DSEs are required to report incremental information, including inception-to-date financial information, in their financial statements. A DSE is an entity devoting substantially all of its efforts to establishing a new business and for which either planned principal operations have not yet commenced or have commenced but there has been no significant revenues generated from that business. Entities classified as DSEs will no longer be subject to these incremental reporting requirements after adopting ASU No. 2014-10. ASU No. 2014-10 is effective for fiscal years beginning after December 15, 2014, with early adoption permitted. Retrospective application is required for the elimination of incremental DSE disclosures. Prior to the issuance of ASU No. 2014-10, the Company had met the definition of a DSE since its inception. The Company elected to adopt this ASU early, and therefore it has eliminated the incremental disclosures previously required of DSEs, starting with this Quarterly Report on Form 10-Q. | |||||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Schedule of Redeemable Noncontrolling Interest Considered Level Three | ' | ||||
As of June 30, 2014 and December 31, 2013 the Company’s redeemable non-controlling interest is considered a level 3 item and changed during the six months ended June 30, 2014 as follows. | |||||
Balance at December 31, 2013 | $ | 856,044 | |||
Net income attributable to non-controlling interest | 2,373 | ||||
Balance at June 30, 2014 | $ | 858,417 |
Notes_Payable_Tables
Notes Payable (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Short-term Debt [Line Items] | ' | ||||||||
Schedule of Fair Market Value of the Conversion Features Using the Black-Scholes Pricing Model | ' | ||||||||
During the six months ending June 30, 2014, the range of inputs used to calculate derivative liabilities noted above were as follows: | |||||||||
Six months ended | |||||||||
30-Jun-14 | |||||||||
Annual dividend yield | - | ||||||||
Expected life (years) | 0.04 - 0.18 | ||||||||
Risk-free interest rate | 0.04 - 0.07 | % | |||||||
Expected volatility | 197 | % | |||||||
Tarpon Bay Convertible Notes [Member] | ' | ||||||||
Short-term Debt [Line Items] | ' | ||||||||
Schedule of Derivative Liability Using Black Schole Price | ' | ||||||||
The Company used the following assumptions as of June 30, 2014 and December 31, 2013: | |||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
Annual dividend yield | 0 | % | 0 | % | |||||
Expected life (years) | 0.00 - 0.01 | 0.8 | |||||||
Risk-free interest rate | 0.02 | % | 0.02 | % | |||||
Expected volatility | 234 | % | 159 | % | |||||
AKR Promissory Note [Member] | ' | ||||||||
Short-term Debt [Line Items] | ' | ||||||||
Schedule of Derivative Liability Using Black Schole Price | ' | ||||||||
8-Apr-14 | |||||||||
Annual dividend yield | - | ||||||||
Expected life (years) of | 1.41 - 2.00 | ||||||||
Risk-free interest rate | 0.4 | % | |||||||
Expected volatility | 183% - 206 | % |
Outstanding_Warrant_Liability_
Outstanding Warrant Liability (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Schedule of Black-Scholes Option Pricing Model Assumptions to Estimate Fair Value of Warrants | ' | ||||||||
The Company assesses the fair value of the warrants quarterly based on the Black-Scholes pricing model. See below for variables used in assessing the fair value. | |||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
Annual dividend yield | - | - | |||||||
Expected life (years) of | 1.55 | 2.05 | |||||||
Risk-free interest rate | 0.47 | % | 0.38 | % | |||||
Expected volatility | 214 | % | 150 | % |
Organization_and_Business_Deta
Organization and Business (Details Narrative) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Nov. 25, 2013 | Nov. 25, 2013 |
Minimum [Member] | Maximum [Member] | |||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 100,000,000 | 500,000,000 |
Common stock, par value | $0.00 | $0.00 | $0.00 | $0.00 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 12 Months Ended | 6 Months Ended | |||||||
Dec. 31, 2007 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 28, 2012 | Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Warrant [Member] | Warrant [Member] | Bluefire Fulton Renewable Energy Llc [Member] | TCA [Member] | Fulton Project [Member] | Lancaster Biorefinery [Member] | Lancaster Biorefinery [Member] | Next Twelve Months [Member] | ||||||
Minimum [Member] | Maximum [Member] | ||||||||||||
SignificantAccountingPoliciesLineItems [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of stock through private placement | $14,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital deficit | ' | 1,560,000 | ' | 1,560,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated operating expenses | ' | 383,224 | 304,564 | 890,501 | 645,290 | ' | ' | ' | ' | ' | ' | ' | 1,700,000 |
Construction costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | 100,000,000 | 125,000,000 | ' |
Ownership interest in Bluefire Fulton Renewable Energy LLC sold | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' |
Research and development expenses | ' | 202,000 | 128,000 | 415,000 | 247,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase agreement amount | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | ' | ' | ' | ' |
Ant-dilutive securities excluded from computation of earnings per share | ' | ' | ' | 0 | 0 | 7,778,571 | 928,571 | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
Summary Of Significant Accounting Policies - Schedule of Redeemable Noncontrolling Interest Considered Level Three (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Balance at the beginning | ' | ' | $856,044 | ' |
Net income attributable to non-controlling interest | 1 | -685 | 2,373 | -2,742 |
Balance at the end | $858,417 | ' | $858,417 | ' |
Development_Contracts_Details_
Development Contracts (Details Narrative) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||||||||
Aug. 11, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 31, 2007 | Dec. 31, 2009 | Oct. 31, 2007 | Dec. 31, 2009 | Dec. 31, 2009 | Oct. 31, 2007 | Feb. 28, 2007 | |
Company Cost Share [Member] | U.S. Department Of Energy [Member] | U.S. Department Of Energy [Member] | U.S. Department Of Energy [Member] | U.S. Department Of Energy [Member] | U.S. Department Of Energy [Member] | U.S. Department Of Energy [Member] | ||||||
Phase II [Member] | Project One [Member] | Company Cost Share [Member] | Maximum [Member] | |||||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from Grants | ' | $323,917 | $551,828 | $849,503 | $617,939 | ' | $88,000,000 | $10,000,000 | $81,000,000 | $7,000,000 | ' | $40,000,000 |
Award, percentage | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | 40.00% | ' |
Reimbursements received under awards plan | ' | ' | ' | 12,670,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total grant available to Entity under awards | $418,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_Payable_Details_Narrative
Note Payable (Details Narrative) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||||
Jun. 13, 2013 | Feb. 11, 2013 | Dec. 21, 2012 | Oct. 11, 2012 | Jul. 31, 2012 | Mar. 28, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 19, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 23, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 08, 2014 | Apr. 24, 2014 | Apr. 08, 2014 | Apr. 08, 2014 | Apr. 08, 2014 | Apr. 08, 2014 | |
AKR Warrant B [Member] | Note One [Member] | Note One [Member] | Note Two [Member] | Note Three [Member] | Note Four [Member] | Note Five [Member] | Note Six [Member] | Note Six [Member] | Tarpon Initial Note [Member] | Tarpon Initial Note [Member] | Tarpon Initial Note [Member] | Tarpon Initial Note [Member] | Tarpon Success Fee Note [Member] | Tarpon Bay Convertible Notes [Member] | Tarpon Bay Convertible Notes [Member] | AKR Promissory Note [Member] | AKR Promissory Note [Member] | AKR Promissory Note [Member] | AKR Promissory Note [Member] | AKR Promissory Note [Member] | AKR Promissory Note [Member] | |||||||||
Subsequent Event [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Subsequent Event [Member] | Day One Loss On Derivative [Member] | AKR Warrant B [Member] | AKR Warrant A [Member] | AKR Warrant B [Member] | AKR Warrant C [Member] | |||||||||||||||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note | ' | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $350,000 | $30,000 | ' | ' | ' | ' |
Convertible note issued | 32,500 | 53,000 | 32,500 | 37,500 | 63,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,500 | ' | 25,000 | 25,000 | 50,000 | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, original debt, interest rate of debt | ' | 8.00% | 8.00% | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, converted instrument, expiration or due date | 17-Mar-14 | 13-Nov-13 | 26-Sep-13 | 15-Jul-13 | 2-May-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23-Dec-14 | ' | 30-Jan-14 | ' | ' | ' | 30-Jun-14 | ' | ' | 8-Apr-15 | ' | ' | ' | ' | ' |
Debt instrument convertible conversion price description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The convertible promissory notes are convertible into shares of the Company’s common stock after six months as calculated by multiplying 58% (42% discount to market) by the average of the lowest three closing bid prices during the 10 days prior to the conversion date. | 50% discount to the lowest closing bid price for the Common Stock for the twenty (20) trading days ending on the trading day immediately before the conversion date. | 50% discount from the lowest closing bid price in the twenty (20) trading days prior to the day that Tarpon requests conversion. | ||||||||||||||||||||||||||||
Derivative liability, fair value, net | 28,000 | 49,500 | 15,600 | 66,000 | ' | ' | ' | ' | ' | 47,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, converted instrument, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,642,578 | 2,262,860 | 4,017,599 | 9,689,211 | 22,207,699 | 24,537,990 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excessive value of the derivative liabilities | ' | ' | ' | 28,507 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, unamortized discount | ' | ' | ' | ' | ' | ' | 1,250 | 75,695 | ' | 0 | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,699 | ' | ' | ' | ' | ' |
Debt instrument, amortized discount | ' | ' | ' | ' | ' | ' | 1,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,681 | ' | ' | ' | ' | ' |
Amortization interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,960 | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,527 | ' | ' | ' | ' | ' | 20,000 | 96,000 | ' | ' | ' | ' | ' | ' |
Debt, principal and accrued interest outstanding | ' | ' | ' | ' | ' | ' | 1,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, interest percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' |
Warrants to buy common shares | ' | ' | ' | ' | ' | ' | ' | ' | 7,350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,350,000 | 7,350,000 | ' | 8,400,000 |
Warrants, exercise price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.007 | 0.007 | ' | 0.007 |
Warrants, expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8-Apr-16 | 8-Apr-16 | 8-Apr-16 |
Discount on relative fair value of warrants compared to debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,380 | ' | ' | ' | ' | ' |
Cash payment on Tarpon Initial Note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,500 | ' | ' | $12,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes_Payable_Schedule_of_Fair
Notes Payable - Schedule of Fair Market Value of Conversion Features Using Black-Scholes Pricing Model (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Short-term Debt [Line Items] | ' |
Annual dividend yield | ' |
Expected volatility | 197.00% |
Minimum [Member] | ' |
Short-term Debt [Line Items] | ' |
Expected life (years) | '15 days |
Risk-free interest rate | 0.04% |
Maximum [Member] | ' |
Short-term Debt [Line Items] | ' |
Expected life (years) | '2 months 5 days |
Risk-free interest rate | 0.07% |
Notes_Payable_Schedule_of_Deri
Notes Payable - Schedule of Derivative Liability Using Black Schole Price (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Short-term Debt [Line Items] | ' | ' |
Annual dividend yield | ' | ' |
Expected volatility | 197.00% | ' |
Minimum [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Expected life (years) | '15 days | ' |
Risk-free interest rate | 0.04% | ' |
Maximum [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Expected life (years) | '2 months 5 days | ' |
Risk-free interest rate | 0.07% | ' |
Tarpon Bay Convertible Notes [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Annual dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 0.02% | 0.02% |
Expected volatility | 234.00% | 159.00% |
Tarpon Bay Convertible Notes [Member] | Minimum [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Expected life (years) | '0 days | ' |
Tarpon Bay Convertible Notes [Member] | Maximum [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Expected life (years) | '4 days | ' |
Notes_Payable_Schedule_of_Fair1
Notes Payable - Schedule of Fair Value of Warrants Based on Black Scholes (Details) | 6 Months Ended | 0 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 08, 2014 | Apr. 08, 2014 | Apr. 08, 2014 | |
Maximum [Member] | Minimum [Member] | AKR Promissory Note [Member] | AKR Promissory Note [Member] | AKR Promissory Note [Member] | ||
Maximum [Member] | Minimum [Member] | |||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' |
Annual dividend yield | ' | ' | ' | ' | ' | ' |
Expected life (years) | ' | '2 months 5 days | '15 days | ' | '1 year 4 months 28 days | '2 years |
Risk-free interest rate | ' | 0.07% | 0.04% | 0.40% | ' | ' |
Expected volatility | 197.00% | ' | ' | ' | 183.00% | 206.00% |
Outstanding_Warrant_Liability_1
Outstanding Warrant Liability (Details Narrative) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||
Aug. 02, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 31, 2011 | |
Warrant Two [Member] | ||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' |
Gain (Loss) from change in fair value of warrant liability | ' | $174 | $7,736 | ($238) | $21,855 | ' |
Common shares issued (in shares) | 5,740,741 | ' | ' | ' | ' | 428,571 |
Outstanding_Warrant_Liability_2
Outstanding Warrant Liability - Schedule of Black-Scholes Option Pricing Model Assumptions to Estimate Fair Value of Warrants (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Class of Warrant or Right [Line Items] | ' | ' |
Annual dividend yield | ' | ' |
Expected volatility | 197.00% | ' |
Warrant [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Annual dividend yield | ' | ' |
Expected life (years) of | '1 year 6 months 18 days | '2 years 18 days |
Risk-free interest rate | 0.47% | 0.38% |
Expected volatility | 214.00% | 150.00% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jul. 20, 2010 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Aug. 02, 2013 | Feb. 26, 2013 | |
Primary lease term | '30 year | ' | ' | ' | ' | ' | ' | ' |
Lease rate per acre, per month | $10,300 | ' | ' | ' | ' | ' | ' | ' |
Lease rate renewal term | '5 years | ' | ' | ' | ' | ' | ' | ' |
Rent expense under non-cancellable leases | ' | 30,900 | 30,900 | 61,800 | 61,800 | ' | ' | ' |
Accrued lease payments | ' | 0 | ' | 0 | ' | 233,267 | ' | ' |
Gain of credit for past site preparation reimbursements | ' | ' | ' | $96,000 | ' | ' | ' | ' |
Class of warrant or right claims of breach of contract and declaratory relief number of warrants | ' | 5,740,741 | ' | 5,740,741 | ' | ' | ' | 5,740,741 |
Warrants issued | ' | ' | ' | ' | ' | ' | 5,740,741 | ' |
Warrant [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants decreased exercise price | ' | $0 | ' | $0 | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 0 Months Ended | 0 Months Ended | |||
Dec. 15, 2010 | Jun. 30, 2014 | Feb. 26, 2013 | Dec. 04, 2012 | Nov. 10, 2011 | |
Chief Executive Officer [Member] | |||||
Net proceeds from related party loan payable | $200,000 | ' | ' | ' | ' |
Loan agreement, one-time fees as a percentage of loan | 15.00% | ' | ' | ' | ' |
Loan agreement, one-time fees payable in shares of common stock, per-share value | $0.50 | ' | ' | ' | ' |
Loan agreement, warrants issued | 500,000 | ' | ' | ' | ' |
Warrants exercise price | $0.50 | $2.90 | $0 | $0 | ' |
Warrant expiration date | 15-Dec-13 | ' | ' | ' | ' |
Investment financing or a commitment amount from third party | -1,000,000 | ' | ' | ' | ' |
Line of credit, amount outstanding | ' | ' | ' | ' | 40,000 |
Line of credit, additional amount loaned | ' | ' | ' | ' | 51,230 |
Line of credit, maximum amount borrowed | ' | ' | ' | ' | $55,000 |
Notes, repayment of principal balance and interest | ' | ' | ' | ' | 12.00% |
Receiving qualified investment financing, amount description | ' | ' | ' | ' | '$100,000 or more |
Redeemable_NonControlling_Inte1
Redeemable Non-Controlling Interest (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 23, 2010 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Noncontrolling Interest [Abstract] | ' | ' | ' | ' | ' |
Ownership interest in BlueFire Fulton Renewable Energy LLC sold | 1.00% | ' | ' | ' | ' |
Proceeds from sale of LLC Unit | $750,000 | ' | ' | ' | ' |
Ownership interest in BlueFire Fulton Renewable Energy LLC | 99.00% | ' | ' | ' | ' |
Redeemable non-controlling interest | 862,500 | ' | ' | ' | ' |
Net income (loss) attributable to non-controlling interest | ' | $1 | ($685) | $2,373 | ($2,742) |
Stockholders_Deficit_Details_N
Stockholders' Deficit (Details Narrative) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | |||||||||||||||||
Aug. 02, 2013 | Dec. 15, 2010 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 21, 2013 | Jun. 13, 2013 | Feb. 26, 2013 | Feb. 11, 2013 | Dec. 31, 2012 | Dec. 21, 2012 | Dec. 04, 2012 | Oct. 11, 2012 | Jul. 31, 2012 | Dec. 19, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 23, 2013 | Jun. 30, 2014 | Jan. 19, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 28, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 28, 2013 | |
Tarpon Initial Note [Member] | Tarpon Initial Note [Member] | Tarpon Initial Note [Member] | Tarpon Initial Note [Member] | Stock Purchase Agreement [Member] | Lincoln Park Capital Fund, LLC [Member] | Lincoln Park Capital Fund, LLC [Member] | Lincoln Park Capital Fund, LLC [Member] | TCA Global Credit Master Fund, LP [Member] | TCA Global Credit Master Fund, LP [Member] | TCA Global Credit Master Fund, LP [Member] | TCA Global Credit Master Fund, LP [Member] | ||||||||||||||||
Initial Purchase [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | |||||||||||||||||||||||||
Stock based compensation relating to general and administrative expense | ' | ' | $9,700 | $0 | $46,700 | $9,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation relating to project development expense | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase agreement signed amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | 2,000,000 | ' | ' | ' |
Common stock issued for cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,802 | 163,406 | ' | ' | ' | ' | ' | 150,000 | 2,000,000 | ' | ' | ' |
Common stock issued for cash, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,619,835 | 61,010,000 | ' | ' | ' | ' | ' | 428,571 | ' | ' | ' | ' |
Warrants exercise price | ' | $0.50 | $2.90 | ' | $2.90 | ' | ' | ' | $0 | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | $0.55 | ' | ' | ' | ' | ' |
Warrant expiration date | ' | 15-Dec-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Jan-16 | ' | ' | ' | ' |
Company drew on purchase agreement | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrant accounted by the company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 428,571 | ' | ' | ' | ' | ' | ' | ' |
Facility fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,000 | ' | ' | ' |
Common shares issued for services, shares | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 280,000 | ' | ' | ' |
Common shares issued for services, value | ' | ' | ' | ' | 9,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,000 | ' | ' | ' |
Equity agreement period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' |
Price of shares as a percentage of lowest daily volume weighted average price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | 95.00% |
Payment of stock issue costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' |
Capitalized deferred costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 170,000 | ' | ' |
Deferred financings costs, amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Convertible note issued | ' | ' | ' | ' | ' | ' | ' | 32,500 | ' | 53,000 | ' | 32,500 | ' | 37,500 | 63,500 | ' | 25,000 | 25,000 | 50,000 | ' | ' | ' | ' | ' | ' | ' | 300,000 |
Convertible note interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% |
Payment for financing and issue cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93,000 | ' |
Capitalized deferred financings costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,800 | ' |
Proceeds from convertible notes payable | ' | ' | ' | ' | 35,000 | 110,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207,000 | ' |
Legal fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500 | ' |
Amortization of deferred financing costs | ' | ' | ' | ' | 0 | 38,617 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Remaining derivative liability transferred to equity | ' | ' | 13,189 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable1 | ' | ' | ' | ' | ' | ' | 583,710 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum of companies common stock2 | ' | ' | ' | ' | ' | ' | 9.99% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Placement agents fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,450 | 42,402 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount provided to outstanding settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,352 | 121,004 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares, new issues | 5,740,741 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility1 | ' | ' | ' | ' | 104.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free interest rate2 | ' | ' | ' | ' | 0.07% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right exercise price claim on number of warrants3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,740,741 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right exercise form presented on number of warrants4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,740,741 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right claims of breach of contract and declaratory relief number of warrants5 | ' | ' | 5,740,741 | ' | 5,740,741 | ' | ' | ' | 5,740,741 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quoted market price common stock6 | ' | ' | $0.14 | ' | $0.14 | ' | ' | ' | ' | ' | ' | ' | $0.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants based on common stock7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $804,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of stock, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' |
Subsequent_Events_Details_Narr
Subsequent Events (Details Narrative) (USD $) | 0 Months Ended | 6 Months Ended | 6 Months Ended | ||||
Nov. 10, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Chief Executive Officer [Member] | Tarpon Initial Note [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | AKR Warrant B [Member] | Tarpon Initial Note [Member] | ||||
Minimum [Member] | Maximum [Member] | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Notes, principal converted | ' | ' | $37,500 | ' | ' | ' | ' |
Accrued Interest | ' | ' | 1,500 | ' | ' | ' | ' |
Notes, maturity date | ' | ' | 23-Dec-14 | ' | ' | ' | ' |
Conversion of stock, shares issued | ' | ' | 24,537,990 | ' | ' | ' | ' |
Cash payment on Tarpon Initial Note | ' | 12,500 | ' | ' | ' | ' | 12,500 |
Warrants to buy common shares | ' | ' | ' | ' | ' | 7,350,000 | ' |
Line of credit, maximum amount borrowed | $55,000 | ' | ' | $40,000 | $55,000 | ' | ' |