Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 13, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'COPsync, Inc. | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 175,514,501 | ' |
Entity Public Float | ' | ' | $10,503,235 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001383154 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $414,051 | $174,444 |
Accounts receivable, net | 101,807 | 110,069 |
Inventories | 357,933 | 337,420 |
Prepaid expenses and other current assets | 116,573 | 48,836 |
Total Current Assets | 990,364 | 670,769 |
PROPERTY AND EQUIPMENT | ' | ' |
Computer hardware | 68,847 | 64,796 |
Computer software | 36,936 | 20,713 |
Fleet vehicles | 134,987 | 168,663 |
Furniture and fixtures | 7,872 | 7,872 |
Total Property and Equipment | 248,642 | 262,044 |
Less: Accumulated Depreciation | -113,489 | -102,702 |
Net Property and Equipment | 135,153 | 159,342 |
OTHER ASSETS | ' | ' |
Software development costs, net | 436,471 | 872,936 |
Total Other Assets | 436,471 | 872,936 |
TOTAL ASSETS | 1,561,988 | 1,703,047 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 1,419,170 | 1,227,839 |
Deferred revenues | 2,878,264 | 1,213,911 |
Convertible notes payable, current portion | 20,000 | 0 |
Notes payable, current portion | 412,405 | 180,305 |
Total Current Liabilities | 4,729,839 | 2,622,055 |
LONG-TERM LIABILITIES | ' | ' |
Deferred revenues | 1,052,749 | 622,737 |
Convertible notes payable | 594,163 | 372,731 |
Notes payable, non-current portion | 107,329 | 69,263 |
Total Long-Term Liabilities | 1,754,241 | 1,064,731 |
Total Liabilities | 6,484,080 | 3,686,786 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Common stock, par value $0.0001 per share, 500,000,000 shares authorized; 175,014,501 and 171,284,201 issued and outstanding, respectively | 17,501 | 17,129 |
Common stock to be issued, 15,000 and 70,000 shares, respectively | 1,500 | 7,000 |
Additional paid-in-capital | 13,709,972 | 12,803,341 |
Accumulated deficit | -18,651,112 | -14,811,256 |
Total Stockholders' Deficit | -4,922,092 | -1,983,739 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 1,561,988 | 1,703,047 |
Series A Preferred Stock [Member] | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Preferred stock, value issued | 10 | 10 |
Series B Preferred Stock [Member] | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Preferred stock, value issued | $37 | $37 |
Balance_Sheets_Parentheticals
Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 175,014,501 | 171,284,201 |
Common stock, shares outstanding | 175,014,501 | 171,284,201 |
Common stock to be issued | 15,000 | 70,000 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 100,000 | 100,000 |
Preferred stock, shares outstanding | 100,000 | 100,000 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 375,000 | 375,000 |
Preferred stock, shares issued | 375,000 | 375,000 |
Preferred stock, shares outstanding | 375,000 | 375,000 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
REVENUES | ' | ' |
Hardware, installation and other revenue | $2,944,827 | $1,663,489 |
Software license/subscription revenue | 1,780,790 | 1,561,469 |
Total Revenues | 4,725,617 | 3,224,958 |
COST OF REVENUES | ' | ' |
Hardware and other costs | 2,556,737 | 1,602,869 |
Software license/subscriptions | 912,103 | 739,286 |
Total Cost of Revenues | 3,468,840 | 2,342,155 |
GROSS PROFIT | 1,256,777 | 882,803 |
OPERATING EXPENSES | ' | ' |
Research and development | 2,157,597 | 2,218,156 |
Sales and marketing | 1,289,892 | 1,545,883 |
General and administrative | 1,396,909 | 1,270,496 |
Total Operating Expenses | 4,844,398 | 5,034,535 |
LOSS FROM OPERATIONS | -3,587,621 | -4,151,732 |
OTHER INCOME (EXPENSE) | ' | ' |
Interest income | 7 | 24 |
Interest expense | -29,033 | -25,398 |
Gain/(Loss) on asset disposals | 1,791 | -5,535 |
Total Other Income (Expense) | -27,235 | -30,909 |
NET LOSS BEFORE INCOME TAXES | -3,614,856 | -4,182,641 |
INCOME TAXES | 0 | 0 |
NET LOSS | -3,614,856 | -4,182,641 |
Series B preferred stock dividend | -105,000 | -105,288 |
Accretion of beneficial conversion feature on preferred shares dividends issued in kind | 0 | -18,796 |
Cost of Series B warrants extension | -120,000 | 0 |
NET LOSS ATTRIBUTABLE TO COMMONSHAREHOLDERS | ($3,839,856) | ($4,306,725) |
LOSS PER COMMON SHARE - BASIC & DILUTED (in Dollars per share) | ($0.02) | ($0.03) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC & DILUTED (in Shares) | 173,799,481 | 157,157,002 |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (Deficit) (USD $) | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common stock to be issued [Member] | Common stock to be issued [Member] | Common stock to be issued [Member] | Common stock to be issued [Member] | Common stock to be issued [Member] | Common Stock Warrants To Be Issued [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Stock Issued to Two Resellers [Member] | Stock Issued for Cash [Member] | Stock Issued for Previous Deposits [Member] | Total |
Stock Subscribed by Two Private Investors [Member] | Stock Issued to Two Resellers [Member] | Stock Issued for Cash [Member] | Stock Issued for Previous Deposits [Member] | Stock Subscribed by Two Private Investors [Member] | Stock Issued to Two Resellers [Member] | Stock Issued for Cash [Member] | Stock Issued for Previous Deposits [Member] | Stock Subscribed by Two Private Investors [Member] | Stock Issued to Two Resellers [Member] | Stock Issued for Cash [Member] | Stock Issued for Previous Deposits [Member] | ||||||||||||
Balance at Dec. 31, 2011 | $10 | $37 | ' | ' | ' | ' | $14,826 | ' | ' | ' | ' | $284,315 | $131,961 | ' | ' | ' | ' | $9,886,601 | ($10,504,531) | ' | ' | ' | ($186,781) |
Balance (in Shares) at Dec. 31, 2011 | 100,000 | 375,000 | ' | ' | ' | ' | 148,251,688 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation of the vested portion of employee and non-employee stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 174,365 | ' | ' | ' | ' | 174,365 |
Common stock to be issued | ' | ' | 60 | 178 | ' | ' | ' | -60,000 | -179,315 | 7,000 | ' | ' | ' | 59,940 | 179,137 | ' | ' | ' | ' | ' | 7,000 | 7,000 | 7,000 |
Common stock to be issued (in Shares) | ' | ' | 600,000 | 1,784,061 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000 | 70,000 |
Common stock issued for conversion of notes payable | ' | ' | ' | ' | ' | ' | 241 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 241,203 | ' | ' | ' | ' | 241,444 |
Common stock issued for conversion of notes payable (in Shares) | ' | ' | ' | ' | ' | ' | 2,414,449 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series B preferred stock - cumulative dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105,288 | -105,288 | ' | ' | ' | ' |
Accretion of Beneficial Conversion Feature on Preferred Shares dividends issued in kind | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,796 | -18,796 | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,182,641 | ' | ' | ' | -4,182,641 |
Common stock shares issued for cash | ' | ' | ' | 61 | 15 | ' | 1,745 | ' | ' | ' | ' | ' | ' | ' | 60,624 | 14,985 | ' | 1,743,255 | ' | 60,685 | 15,000 | ' | 1,745,000 |
Common stock shares issued for cash (in Shares) | ' | ' | ' | 606,848 | 150,000 | ' | 17,450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lapsed - common stock to be issued per an agreement with an advisory firm at $0.60 per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -45,000 | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | ' |
Lapsed - common stock warrant to be issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -131,961 | ' | ' | ' | ' | 131,961 | ' | ' | ' | ' | ' |
Capital contributed/co-founders' forfeiture of contractual compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,000 | ' | ' | ' | ' | 79,000 |
Common stock issued for services rendered at $0.10 per share | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,186 | ' | ' | ' | ' | 3,189 |
Common stock issued for services rendered at $0.10 per share (in Shares) | ' | ' | ' | ' | ' | ' | 27,155 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of restricted stock grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | 60,000 |
Balance at Dec. 31, 2012 | 10 | 37 | ' | ' | ' | ' | 17,129 | ' | ' | ' | ' | 7,000 | ' | ' | ' | ' | ' | 12,803,341 | -14,811,256 | ' | ' | ' | -1,983,739 |
Balance (in Shares) at Dec. 31, 2012 | 100,000 | 375,000 | ' | ' | ' | ' | 171,284,201 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation of the vested portion of employee and non-employee stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 184,973 | ' | ' | ' | ' | 184,973 |
Common stock to be issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | 1,500 |
Common stock to be issued (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | 15,000 |
Cost of Series B warrant extension | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | -120,000 | ' | ' | ' | ' |
Common stock issued for conversion of notes payable | ' | ' | ' | ' | ' | ' | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,082 | ' | ' | ' | ' | 19,100 |
Common stock issued for conversion of notes payable (in Shares) | ' | ' | ' | ' | ' | ' | 191,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series B preferred stock - cumulative dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105,000 | -105,000 | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,614,856 | ' | ' | ' | -3,614,856 |
Common stock shares issued for cash | ' | ' | ' | ' | 347 | 7 | ' | ' | ' | ' | -7,000 | ' | ' | ' | ' | 346,583 | 6,993 | ' | ' | ' | 346,930 | ' | 346,930 |
Common stock shares issued for cash (in Shares) | ' | ' | ' | ' | 3,469,300 | 70,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,469,300 |
Capital contributed/co-founders' forfeiture of contractual compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,000 | ' | ' | ' | ' | 79,000 |
Amortization of restricted stock grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | 45,000 |
Balance at Dec. 31, 2013 | $10 | $37 | ' | ' | ' | ' | $17,501 | ' | ' | ' | ' | $1,500 | ' | ' | ' | ' | ' | $13,709,972 | ($18,651,112) | ' | ' | ' | ($4,922,092) |
Balance (in Shares) at Dec. 31, 2013 | 100,000 | 375,000 | ' | ' | ' | ' | 175,014,501 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statements_of_Stockholders_Equ1
Statements of Stockholders' Equity (Deficit) (Parentheticals) (USD $) | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 |
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common stock to be issued [Member] | Common stock to be issued [Member] | Common stock to be issued [Member] | |
Stock Subscribed by Two Private Investors [Member] | Stock Issued for Cash [Member] | Stock Issued for Cash [Member] | Stock Issued for Services [Member] | Stock Issued Conversion of Debt [Member] | Stock Issued Conversion of Debt [Member] | Stock Issued for Previous Deposits [Member] | Stock Issued for Cash [Member] | Advisory Firm Agreement [Member] | ||
Per share | $0.10 | $0.10 | $0.10 | $0.10 | ' | ' | $0.10 | $0.10 | $0.60 | $0.10 |
Conversion, per share | ' | ' | ' | ' | $0.10 | $0.10 | ' | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss | ($3,614,856) | ($4,182,641) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 472,400 | 472,612 |
Employee and non-employee stock compensation | 184,973 | 174,365 |
Common stock issued for services rendered | 0 | 3,189 |
Amortization of restricted stock grants | 45,000 | 60,000 |
Capital contributed/co-founders' forfeiture of contractual compensation | 79,000 | 79,000 |
Stock issued for cash received in prior year | 0 | 15,000 |
Bad debt Expense | 30,000 | 11,426 |
Gain on asset disposals | -1,791 | 5,535 |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable | -21,738 | -28,358 |
Inventories | -20,513 | -323,638 |
Prepaid expenses and other current assets | -67,737 | 38,074 |
Deferred revenues | 2,094,365 | 249,200 |
Accounts payable and accrued expenses | 193,852 | 726,787 |
Net Cash Used in Operating Activities | -627,045 | -2,699,449 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Proceeds from asset disposals | 107,800 | 0 |
Purchases of property and equipment | -119,744 | -31,700 |
Net Cash Used by Investing Activities | -11,944 | -31,700 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from notes payable | 570,621 | 120,000 |
Payments on notes payable | -300,455 | -101,409 |
Proceeds received on convertible notes | 260,000 | 0 |
Proceeds from stock deposit for common stock to be issued | 1,500 | 7,000 |
Proceeds from issuance of common stock for cash | 346,930 | 1,805,685 |
Net Cash Provided by Financing Activities | 878,596 | 1,831,276 |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 239,607 | -899,873 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 174,444 | 1,074,317 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 414,051 | 174,444 |
SUPPLEMENTAL DISCLOSURES: | ' | ' |
Cash paid for interest | 17,860 | 33,083 |
Cash paid for income tax | 7,449 | 7,339 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Purchased a fleet vehicle involving a trade-in and collaterial swap on existing notes payable | 0 | 86,315 |
Conversion of convertible notes, plus accrued interest into 191,000 and 2,414,449 shares of common stock, respectively | 19,100 | 241,444 |
Cost of Series B warrants extension | 120,000 | 0 |
Issuance of common stock for prior year stock subscriptions | 7,000 | 239,315 |
Financing of insurance policy | 34,069 | 26,485 |
Accretion of beneficial conversion feature on preferred shares dividends issued in kind | 0 | 18,796 |
Series B Preferred stock dividends | $105,000 | $105,288 |
Statements_of_Cash_Flows_Paren
Statements of Cash Flows (Parentheticals) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Conversion of convertible notes, shares | 191,000 | 2,414,449 |
NOTE_1_NATURE_OF_ORGANIZATION_
NOTE 1 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS | |
COPsync, Inc. (the “Company”) sells the COPsync service, which is a real-time, in-car information sharing, communication and data interoperability network for law enforcement agencies. The COPsync service enables patrol officers to collect, report and share critical data in real-time at the point of incident and obtain instant access to various local, state and federal law enforcement databases. The COPsync service also eliminates manual processes and increases officer productivity by enabling officers to electronically write tickets, process DUI and other arrests and document accidents and other incidents. The Company believes that the service saves lives, reduces unsolved crimes and assists in apprehending criminals through such features as a nationwide officer safety alert system, GPS/auto vehicle location and distance-based alerts for crimes in progress, such as child abductions, bank robberies and police pursuits. The Company has designed its system to be “vendor neutral,” meaning it can be used with products and services offered by other law enforcement technology vendors. Additionally, the Company’s system architecture is designed to scale nationwide. | |
In addition to the Company’s core COPsync information sharing, data interoperability and communication network service, in 2012 it released two complementary service/product offerings. These new product offerings were WARRANTsync, a statewide misdemeanor warrant clearing database, and VidTac, an in-vehicle video camera system for law enforcement. | |
WARRANTsync is designed to be a statewide misdemeanor warrant clearing database. It enables law enforcement officers in the field to receive notice of outstanding warrants in real-time at the point of a traffic stop. The WARRANTsync system enables the offender to pay the outstanding warrant fees and costs using a credit card or debit card. Following payment, the offender is given a receipt and the transaction is complete. This product represents a very small portion of our revenues and could be viewed as an enhancement feature to our core COPsync service. | |
VidTac is a software-driven video system for law enforcement. Traditional in-vehicle video systems are “hardware centric” DVR-based systems. The video capture, compression and encryption of the video stream is performed by the DVR. The estimated price of these high-end, digital DVR-based systems range from $5,100 to $11,000 per system. These DVR-based systems are typically replaced, at the same expensive price point, every three to four years as new patrol vehicles are placed into service. | |
The VidTac system is price advantageous vis-a-vis other high-end video systems. The Company is offering it for sale at a much lower price than the average price of DVR-based video systems. Furthermore, for those agencies that already have in-vehicle computers, the VidTac system eliminates the need for the agency to purchase a second computer, i.e., the DVR, and eliminates the need to replace this second (DVR) computer every three to four years. The Company believes that the VidTac system will accelerate the Company’s revenue growth and help it achieve profitability. | |
The Company also offers the COPsync911 threat alert, first introduced in the second quarter of 2013, for use in schools, hospitals, day care facilities, governmental office buildings, energy infrastructure and other facilities with a high level of concern about security. When used in schools, the COPsync911 service enables school personnel to instantly and silently send emergency alerts directly to the closest law enforcement officers in their patrol vehicles, and to the local 911 dispatch center, with the mere click of an icon located on every computer within the facility. The alert is also sent to the cell phones of all law enforcement officers in the area and to all teachers, administrators, and other staff at the school, alerting them of imminent danger. The Company expects its COPsync911 service to reduce emergency law enforcement response times by five to seven minutes. | |
At December 31, 2013, the Company had cash and cash equivalents of $414,051, a working capital deficit of $3,739,475 and an accumulated deficit of $18,651,112. The Company took the following steps in fiscal year 2013, and in the first quarter of 2014, to manage its liquidity, to avoid default on any third-party obligations and to continue growing its business towards cash-flow break-even, and ultimately profitability: | |
1) The Company increased the volume of its new orders. For the twelve month period ended December 31, 2013, the Company signed service agreements for approximately $5,852,000 in new orders, compared to approximately $2,913,000 in new orders for the comparable period in 2012, an increase of approximately 101%. | |
2) The Company introduced the COPsync911 real-time threat alert service, which the Company believes is the only service of its kind in the United States, that enables a person (such as a schoolteacher in a school) to instantaneously and silently send emergency alerts directly to local law enforcement officers in their patrol vehicles and the local emergency dispatch center with just the click of a computer mouse. The Company is primarily offering the COPsync911 service in the State of Texas, but began offering it in other selected regions of the United States in the third quarter of 2013. For the twelve months ended December 31, 2013, the Company had booked new orders of approximately $361,000 for the COPsync911 service since its introduction in the second quarter of 2013. The Company expects the pace of COPsync911 sales to accelerate as its sales team becomes familiar with the service and the strategies for selling it and as newly engaged resellers begin to sell the service. The Company expects COPsync911 bookings from its direct and channel sales efforts to range between $1.2 million and $2.0 million for fiscal year 2014. | |
3) The Company’s procurement processes for third party hardware employs “just in time” principles, meaning that the Company attempts to schedule delivery to the customer of the third party hardware it sells immediately after it receives the hardware. The Company also continues its attempts to collect customer prepayments for the third party hardware it sells at or about the time it orders the hardware. This change in the processing of third party hardware has helped the Company significantly in managing its working capital. | |
4) The Company’s key vendors continue to accommodate its extended payment terms or practices for its outstanding payables balances, but the Company is uncertain how long these accommodations will continue. | |
6) In the first quarter of 2014, the Company received a $475,000 loan from the City of Pharr, Texas, and it expects to receive an additional $375,000 loan from the city in April or May of 2014. | |
7) During 2013, we raised new capital funds of $608,430 from investors, consisting of $346,930 for 3,469,300 shares of our common stock, $260,000 for convertible promissory notes, and $1,500 for common stock shares to be issued in 2014. In the first quarter of 2014, we initiated a capital raise of approximate $500,000, of which $30,000 has been raised as of the date of this report. We are currently in talks with certain revenue-based funding investment groups to raise the balance of this amount. | |
8) The Company is in the process of trying to secure up to $1.5 million in funding pursuant to an EB-5 visa program, which the Company hopes to close in June 2014. The EB-5 program is a program under which foreign nationals loan money to U.S. companies who are creating U.S. jobs. Following the job creation, the foreign lenders receive U.S. “green cards.” The Company currently has a letter of intent with a financier for the EB-5 project. The financier has already completed the economic impact analysis for the project, which will be located in Pharr, Texas. The Company will use a portion of any proceeds from this EB-5 program to repay the bridge loan funds it received from the City of Pharr, Texas. Any remaining funds will be used for general working capital purposes, including our anticipated hiring of at least 30 employees in the Pharr, Texas area over the ensuing 24 months, who will office in a recently refurbished leased facility owned by the City of Pharr. | |
9) The Company plans to reduce its research and development expenses in 2014 by approximately $700,000 from the amount it spent in 2013. The Company also expects to collect cash from renewing customers of approximately $1.9 million in 2014, an estimated $800,000 increase over the approximately $1.1 million cash from renewing customers collected in 2013. These two factors have the potential of creating a net positive effect of approximately $1.5 million to the Company’s operations. Assuming an equivalency in new orders (sales) in 2014 compared to 2013, and given that the Company used cash from operations of $627,045 in 2013, this potential $1.5 million benefit positions the Company to potentially generate cash from operations during 2014. Moreover, the Company believes that it has the capability to reduce further operating expenses, should circumstances warrant. | |
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has accumulated significant losses as it has been developing its current and recently added offerings. The Company has had recurring losses and expects to report losses for fiscal 2014. The Company believes that cash flow from operations, together with the potential sources of debt, equity and revenue-based financing outlined above will be sufficient to fund the Company’s anticipated operations for fiscal 2014. | |
NOTE_2_SUMMARY_OF_SIGNIFICANT_
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
a. Basis of Presentation | |||||||||
The accompanying financial statements include the accounts of the Company, and are prepared on the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America. | |||||||||
b. Reclassifications | |||||||||
Certain prior year items have been reclassified to conform to the current year presentation. These reclassifications had no impact on the Company’s net loss. | |||||||||
c. Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with maturities at the date of purchase of three months or less to be cash equivalents. | |||||||||
The Company's cash and cash equivalents, at December 31, consisted of the following: | |||||||||
2013 | 2012 | ||||||||
Cash in bank | $ | 414,001 | $ | 172,443 | |||||
Money market funds | 50 | 2,001 | |||||||
Cash and cash equivalents | $ | 414,051 | $ | 174,444 | |||||
d. Concentrations of credit risk | |||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. Cash and cash equivalents are deposited in demand and money market accounts in two financial institutions in the United States. Accounts at financial institutions in the United States are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. At times, the Company’s deposits or investments may exceed federally insured limits. At December 31, 2013, the Company had approximately $215,000 at two financial institutions in excess of FDIC insured limits. The Company has not experienced any losses in such accounts. | |||||||||
To date, accounts receivable have been derived principally from revenue earned from end users, which are local and state government agencies. The Company performs periodic credit evaluations of its customers, and does not require collateral. | |||||||||
Accounts receivable are recorded net of the allowance for doubtful accounts. The Company provides an allowance for doubtful accounts that is based upon a review of outstanding receivables, historical collection information and existing economic conditions. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. At December 31, 2013 and 2012, the Company has recorded an allowance for doubtful accounts of $30,000 and $0, respectively. | |||||||||
e. Use of Estimates | |||||||||
The preparation of accompanying 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 amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. The Company’s significant estimates include primarily those required in the valuation or impairment analysis of capitalization of labor under software development costs, property and equipment, revenue recognition, allowances for doubtful accounts, stock-based compensation, warrants, litigation accruals and valuation allowances for deferred tax assets. Although the Company believes that adequate accruals have been made for unsettled issues, additional gains or losses could occur in future years from resolutions of outstanding matters. Actual results could differ materially from original estimates. | |||||||||
f. Inventory | |||||||||
Inventory is stated at the lower of cost (determined using the first-in, first-out method) or market. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence or impaired balances. No such adjustments have been made in years 2013 or 2012. | |||||||||
g. Property and Equipment | |||||||||
Property and equipment is recorded at cost. Major additions and improvements are capitalized, while ordinary maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of equipment retired or sold are removed from the accounts and any differences between the non-depreciated amount and the proceeds from the sale are recorded as gain or loss on asset disposals. | |||||||||
Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, ranging as follows: | |||||||||
Computer hardware/software | 3 years | ||||||||
Fleet vehicles | 5 years | ||||||||
Furniture and fixtures | 5 to 7 years | ||||||||
Depreciation expense on property and equipment was $35,935 and $36,132 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
h. Long-lived Assets | |||||||||
The Company reviews its long-lived assets including property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Examples of such events could include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset, a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business or a significant change in the operations of an acquired business. | |||||||||
An impairment test involves a comparison of undiscounted cash flows from the use of the asset to the carrying value of the asset. Measurement of an impairment loss is based on the amount that the carrying value of the asset exceeds its fair value. No impairment losses were incurred in the periods presented. | |||||||||
i. Software Development Costs | |||||||||
Certain software development costs incurred subsequent to the establishment of technological feasibility may be capitalized and amortized over the estimated lives of the related products. Through mid-year 2010, the Company capitalized certain software development costs accordingly. | |||||||||
The Company determined technological feasibility to be established upon completion of (1) product design, (2) detail program design, (3) consistency between product and program design and (4) review of detail program design to ensure that high risk development issues have been resolved. Upon the general release of the COPsync service offering to customers, development costs for that product were amortized over fifteen years based on management’s then estimated economic life of the product. | |||||||||
The Company has not capitalized any of the software development efforts associated with its new product offerings, WARRANTsync, VidTac and COPsync911, because the time period between achieving technological feasibility and product release for both of these product offerings was very short. As a result, the incurred costs have been recorded as research and development costs in years 2013 and 2012. | |||||||||
j. Research and Development | |||||||||
Research and development costs are charged to expense as incurred. | |||||||||
k. Fair Value of Financial Instruments | |||||||||
The carrying amounts of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and short-term debt approximate fair value due to their relatively short maturities. The carrying amounts of notes payable approximate fair value based on market interest rates currently available to the Company. | |||||||||
The fair value framework requires a categorization of assets and liabilities, which are required at fair value, into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: | |||||||||
Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. | |||||||||
Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. | |||||||||
Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. | |||||||||
At December 31, 2013 and 2012, the Company had no such assets or liabilities that were reported at fair value. | |||||||||
l. Revenue Recognition | |||||||||
The Company’s business is to sell subscriptions to the COPsync service, which is a real-time, in-car information sharing, communication and data interoperability network for law enforcement agencies. The agencies subscribe to the service for a specified period of time (usually for twelve to forty-eight months), for a specified number of officers per agency, and at a fixed subscription fee per officer. | |||||||||
In the process of selling the subscription service, the Company is requested from time-to-time to also sell computers and computer-related hardware (“hardware”) used to provide the in-vehicle service should the customer not already have the hardware, as well as hardware installation services, the initial agency and officer set-up and training services and, sometimes, software integration services for enhanced service offerings. | |||||||||
The Company’s most common sales are: | |||||||||
1) for new customers – a multiple-element arrangement involving (a) the subscription fee, (b) integration of the COPsync software and a hardware appliance (where the hardware and software work together to deliver the essential functionality of the service) to include related services for hardware installation and agency and officer set-up and training and (c) if applicable, software integration services for enhanced service offerings; and | |||||||||
2) for existing customers – the subscription fees for the annual renewal of an agency’s COPsync subscription service, upon the completion of the agency’s previous subscription period. | |||||||||
The Company recognizes revenue when all of the following have occurred: (1) the Company has entered into a legally binding arrangement with a customer resulting in the existence of persuasive evidence of an arrangement; (2) delivery has occurred, evidenced when product title transfers to the customer; (3) customer payment is deemed fixed or determinable and free of contingencies and significant uncertainties; and (4) collection is probable. | |||||||||
The sales of the hardware and related services for hardware installation and agency and officer set-up and training are reported as “Hardware, installation and other revenues” in the Company’s Statement of Operations. The sale of the VidTac product offering is considered a hardware sale and is reported in this revenue classification. | |||||||||
The subscription fees and software integration services are reported as “software license/subscriptions revenues” in the Company’s Statement of Operations. The subscription fees include termed licenses for the contracted officers to have access to the service and the right to receive telephonic customer and technical support, as well as software updates, during the subscription period. Support for the hardware is normally provided by the hardware manufacturer. | |||||||||
The sale of the WARRANTsync and COPsync911 product offerings are reported in “software license/subscriptions revenues.” The products’ revenue stream consists of two elements: (1) an integration element, which is recognized upon integration and customer acceptance; and (2) a subscription element, which is recognized ratably over the service period upon customer acceptance. WARRANTsync represents a very small portion of our revenues and could be viewed as an enhancement feature to our COPsync Network. | |||||||||
The receipt and acceptance of an executed customer’s service agreement, which outlines all of the particulars of the sale event, is the primary method of determining that persuasive evidence of an arrangement exists. | |||||||||
Delivery generally occurs for the different elements of revenue as follows: | |||||||||
(1) For multiple-element arrangements involving new customers – contractually the lesser period of time of sixty days from contract date or the date officer training services are completed. The Company requests the agency to complete a written customer acceptance at the time training is completed, which will override the contracted criteria discussed immediately above. | |||||||||
(2) The subscription fee – the date the officer training is completed and written customer acceptance is received. | |||||||||
(3) Software integration services for enhanced service offerings – upon the completion of the integration efforts and verification that the enhanced service offering is available for use by the agency. | |||||||||
Fees are typically considered to be fixed or determinable at the inception of an arrangement, generally based on specific services and products to be delivered pursuant to the executed service agreement. Substantially all of the Company’s service agreements do not include rights of return or acceptance provisions. To the extent that agreements contain such terms, the Company recognizes revenue once the acceptance provisions or right of return lapses. Payment terms to customers generally range from net “upon receipt of invoice” to “net 30 days from invoice date.” In 2013, the Company adopted a policy of requesting new customers purchasing a significant amount of equipment to prepay for the equipment at the time the equipment was ordered from the Company’s suppliers. These prepayments are recorded on the Company’s Balance Sheet as Current Deferred Revenues. | |||||||||
The Company assesses the ability to collect from its customers based on a number of factors, including credit worthiness of the customer and the past transaction history with the customer. If the customer is not deemed credit worthy, the Company defers all revenue from the arrangement until payment is received and all other revenue recognition criteria have been met. | |||||||||
As indicated above, some customer orders contain multiple elements. The Company allocates revenue to each element in an arrangement based on relative selling price. The selling price for a deliverable is based on its vendor specific objective evidence (“VSOE”), if available, third party evidence ("TPE"), if VSOE is not available, or the Company’s best estimate of selling price ("ESP"), if neither VSOE nor TPE is available. The maximum revenue the Company recognizes on a delivered element is limited to the amount that is not contingent upon the delivery of additional items. Many of the Company’s service agreements contain grants (or discounts) provided to the contracting agency. These grants or discounts have been allocated across all of the different elements based upon the respective, relative selling price. | |||||||||
The Company determines VSOE for subscription fees for the initial contract period based upon the rate charged to customers on a stand-alone subscription service. VSOE for renewal pricing is based upon the stated rate for the renewed subscription service, which is stated in the service agreement or contract entered into. The renewal rate is generally equal to the stated rate in the original contract. The Company has a history of such renewals, the vast majority of which are at the stated renewal rate on a customer-by customer-basis. Subscription fee revenue is recognized ratably over the life of the service agreement. | |||||||||
The Company has determined that the selling price of hardware products include the related services for hardware installation and agency and officer set-up and training, as well as integration services for enhanced service offerings, which are sold separately and, as a result, it has VSOE for these products. | |||||||||
For almost all of the Company’s new service agreements, as well as renewal agreements, billing and payment terms are agreed to up front or in advance of performance milestones. These payments are initially recorded as deferred revenue and subsequently recognized as revenue as follows: | |||||||||
(1) Integration of the COPsync software and a hardware appliance (where the hardware and software work together to deliver the essential functionality of the service) to include related services for hardware installation and agency and officer set-up and training – immediately upon delivery. | |||||||||
(2) The subscription fee – ratably over the contracted subscription period, commencing on the delivery date. | |||||||||
(3) Software integration services for enhanced service offerings – immediately upon the Company’s completion of the integration and verification that the enhanced service is available for the agency’s use. | |||||||||
(4) Renewals – ratably over the renewed subscription or service period commencing on the completion of the previous subscription or service period. | |||||||||
m. Income Taxes | |||||||||
The Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which are recorded on the Company’s Balance Sheets. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. Changes in the Company’s valuation allowance in a period are recorded through the income tax provision on the Company’s Statements of Operations. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. | |||||||||
The Company periodically assesses uncertain tax positions that the Company has taken or expects to take on a tax return (including a decision whether to file or not to file a return in a particular jurisdiction). The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company evaluated its tax positions and determined that there were no uncertain tax positions for the years ended December 31, 2013 and 2012. | |||||||||
n. Share Based Compensation | |||||||||
The Company accounts for all share-based payment transactions using a fair-value based measurement method. The Company calculates stock option-based compensation by estimating the fair value of each option as of its date of grant using the Black-Scholes option pricing model. These amounts are expensed over the respective vesting periods of each award using the straight-line attribution method. The Company has historically issued stock options and vested and non-vested stock grants to employees and, beginning in 2012, to outside directors, whose only condition for vesting has been continued employment or service during the related vesting or restriction period. | |||||||||
o. Newly Adopted Pronouncements | |||||||||
Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. | |||||||||
p. Preferred Stock Issuances with Beneficial Conversion Features | |||||||||
The Company uses the effective conversion price of preferred shares issued based on the proceeds received to compute the intrinsic value of the embedded conversion feature on preferred stock issuances with detachable warrants. The Company calculates an effective conversion price and uses that price to measure the intrinsic value of the embedded conversion option. | |||||||||
NOTE_3_INVENTORY
NOTE 3 - INVENTORY | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
NOTE 3 - INVENTORY | |||||||||
Inventory consisted of the following at December 31, 2013 and 2012, respectively: | |||||||||
December 31, | |||||||||
Category | 2013 | 2012 | |||||||
Raw materials | $ | - | $ | 168,511 | |||||
Work-in-process | - | - | |||||||
Finished goods | 357,933 | 168,909 | |||||||
Total Inventory | $ | 357,933 | $ | 337,420 | |||||
The Company’s total inventory values did not change significantly between years 2013 and 2012; however the mix of inventory between raw materials and finished goods did change dramatically. | |||||||||
There was no raw materials inventory to be reported at December 31, 2013. The raw materials inventory reported at December 31, 2012, relating solely to the Company’s VidTac product, was eliminated in 2013 as the Company took delivery of the balance of finished goods procured by the Company’s first demand purchase order for 500 units, which was placed with the Company’s contract manufacturer in mid-year 2012. The Company had previously selected and entered into a manufacturing agreement with a contract manufacturer to build its new VidTac unit, at a contracted price and to the Company’s specifications. | |||||||||
The increase in finished goods inventory at December 31, 2013 related to the sharp increase in 2013 customer bookings for new hardware associated with its COPsync service. The term hardware includes primarily computer laptops, printers and ancillary parts, such as electronic components, connectors, adapters and cables. Further, the nature of these increased bookings related to new and existing customers, the latter of which, had elected to replace their existing hardware. The timing of the receipt of these new orders, the associated procurement cycle and installation timetables all culminated in the Company possessing the large amount of inventory at December 31, 2013. These various components of hardware are all considered finished goods because the individual items may be, and are, sold in a package arrangement, or on an individual basis, normally at the same pricing structure. but not because of the VidTac-related inventory. Finished goods inventory for VidTac had been depleted at December 31, 2013, because of sales of the new product and the effective, non-placement of a second demand purchase order in 2013. | |||||||||
With regards to the VidTac product, the manufacturing agreement entered into in 2012 calls for the Company to periodically place a demand purchase order for a fixed number of finished units to be manufactured and delivered as finished goods. The Company’s initial demand purchase order was for 500 finished units and, as of December 31, 2012, the Company had taken delivery of approximately 236 finished units. | |||||||||
At December 31, 2012, the Company reported raw materials inventory of $168,511 which represented certain completed, top-level component assemblies not yet incorporated into finished VidTac units. This reporting occurred because the Company agreed for the contract manufacturer to invoice the Company for the top-level component assemblies since the Company pushed the new product’s release date out beyond its original September 2012 date to mid-November 2012. The contract manufacturer had used the original delivery dates contained in the Company’s demand purchase order to procure components. At the time these sub-assemblies were incorporated into finished units, the Company was credited by the contract manufacturer at the sub-assembly prices. | |||||||||
The Company’s purchase orders placed with the contract manufacturer are non-cancellable in nature; however, there are some relief provisions: (1) the Company may change the original requested delivery dates if the Company gives sufficient advance notice to the contact manufacturer; and (2) should the Company elect to cancel a purchase order in total or in part, it would be financially responsible for any materials that could not be returned by the contract manufacturer to its source suppliers. | |||||||||
For fiscal 2013, the Company placed a second demand purchase order valued at $1,400,000 with the contract manufacturer for finished units to be delivered ratably throughout the year. The payment terms associated with this purchase order were net 45 days from invoice date; however, the contracted manufacturer agreed to assist the Company by allowing extended payment terms on outstanding or unpaid invoices associated with the first demand purchaser order, but modified the Company’s payment terms on the second demand purchase order to a prepayment arrangement or “pay as you go” basis, requiring approximately 50% in prepayments. | |||||||||
NOTE_4_SOFTWARE_DEVELOPMENT_CO
NOTE 4 - SOFTWARE DEVELOPMENT COSTS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Research and Development [Abstract] | ' | ||||||||
Research, Development, and Computer Software Disclosure [Text Block] | ' | ||||||||
NOTE 4 - SOFTWARE DEVELOPMENT COSTS | |||||||||
Software development costs as of December 31, 2013 and 2012, respectively, were as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Capitalized software development costs | $ | 2,724,082 | $ | 2,724,082 | |||||
Accumulated amortization | (1,410,803 | ) | (974,338 | ) | |||||
Sub-total | 1,313,279 | $ | 1,749,744 | ||||||
Cumulative Impairment charge | (876,808 | ) | -876,808 | ||||||
Total | $ | 436,471 | $ | 872,936 | |||||
Future amortization expense is as follows: | |||||||||
Year Ended December 31, | Expense | ||||||||
2014 | $ | 436,471 | |||||||
Amortization expense related to these costs was $436,465 and $436,480 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
NOTE_5_INCOME_TAXES
NOTE 5 - INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
NOTE 5 - INCOME TAXES | |||||||||
As of December 31, 2013, the Company had federal net operating loss carry-forwards available to reduce taxable income of approximately $12,860,000. The net operating loss carry-forwards expire between 2029 and 2032. | |||||||||
Deferred tax assets and liabilities at December 31, consist of the following: | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carry-forwards | $ | 4,372,400 | $ | 3,206,200 | |||||
- | - | ||||||||
Total deferred tax assets | 4,372,400 | 3,206,200 | |||||||
Valuation allowance | (4,372,400 | ) | (3,206,200 | ) | |||||
Net deferred tax assets | $ | - | $ | - | |||||
Income tax benefit differs from the expected statutory rate as follows: | |||||||||
2013 | 2012 | ||||||||
Expected federal income tax benefit | $ | (1,529,500 | ) | $ | (1,212,400 | ) | |||
Stock expense | 15,300 | 21,200 | |||||||
Stock option and warrant expense | 123,100 | 59,300 | |||||||
Other | 224,900 | 26,900 | |||||||
Change in valuation allowance | 1,166,200 | 1,105,000 | |||||||
Income tax benefit | $ | – | $ | – | |||||
A full valuation allowance has been established for the Company's net deferred tax assets since the realization of such assets through the generation of future taxable income is uncertain. | |||||||||
Under the Tax Reform Act of 1986, the amounts of, and the benefit from, net operating losses and tax credit carry-forwards may be impaired or limited in certain circumstances. These circumstances include, but are not limited to, a cumulative stock ownership change of greater than 50%, as defined, over a three-year period. | |||||||||
NOTE_6_NOTES_PAYABLE
NOTE 6 - NOTES PAYABLE | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
Debt Disclosure [Text Block] | ' | |||||||||||||||||||
NOTE 6 - NOTES PAYABLE | ||||||||||||||||||||
Notes payable as of December 31, 2013 and 2012 consisted of the following: | ||||||||||||||||||||
Collateral | Interest | Monthly | December 31, | |||||||||||||||||
Type | (If any) | Rate | Payments | Maturity | 2013 | 2012 | ||||||||||||||
Bank | Autos | 6.75 | % | $ | 308 | Sep. 2013 | - | 1,047 | ||||||||||||
Bank | Autos | 7 | % | $ | 799 | Nov. 2014 | - | 17,140 | ||||||||||||
Bank | Autos | 6 | % | $ | 468 | Jan. 2017 | 15,749 | 20,256 | ||||||||||||
Bank | Autos | 6 | % | $ | 406 | Sep. 2016 | - | 16,307 | ||||||||||||
Bank | Autos | 6 | % | $ | 449 | Sep. 2016 | - | 18,044 | ||||||||||||
Bank | Autos | 6 | % | $ | 638 | Sep. 2016 | - | 25,354 | ||||||||||||
Bank | Autos | 6.5 | % | $ | 1,017 | Jun. 2018 | 47,401 | - | ||||||||||||
Bank | Autos | 6.5 | % | $ | 220 | Jul. 2018 | 10,392 | - | ||||||||||||
Insurance | - | 3.79 | % | $ | 3,093 | Nov. 2014 | 34,069 | 31,420 | ||||||||||||
Demand Note | Inventory | 16 | % | $ | - | May-14 | 313,477 | - | ||||||||||||
Demand Note | - | 9.9 | % | $ | - | Mar. 2014 | 98,646 | - | ||||||||||||
Demand Note | - | 3 | % | $ | - | - | - | 120,000 | ||||||||||||
Total notes payable | $ | 519,734 | $ | 249,568 | ||||||||||||||||
Less: Current portion | $ | (412,405 | ) | $ | (180,305 | ) | ||||||||||||||
Long-term portion | $ | 107,329 | $ | 69,263 | ||||||||||||||||
Future principal payments on long-term debt are as follows: | ||||||||||||||||||||
2014 | $ | 412,405 | ||||||||||||||||||
2015 | 67,277 | |||||||||||||||||||
2016 | 18,410 | |||||||||||||||||||
2017 | 14,342 | |||||||||||||||||||
2018 & thereafter | 7,300 | |||||||||||||||||||
Total | $ | 519,734 | ||||||||||||||||||
During 2013, the Company made total payments of $300,455 on its notes payable, consisting of total monthly payments of $51,161 on existing notes payable involving the short-term financing of the Company’s business insurance policies and automobile loans, repayment of the $120,000 demand note issued to the Company’s chief executive officer described below, repayment of the $60,000 demand note issued to the spouse of the Company’s chief executive officer described below, and $69,294 involving the payoff of automobile loans in connection with the Company’s efforts to replace the vehicles used by its sales force with more fuel efficient vehicles. Accordingly, the Company sold six vehicles for $107,800, which were being financed with bank notes. Proceeds from the sales of $69,294 were used to pay-off the balances of the related bank notes, and the balance of the proceeds was to purchase new vehicles. The Company financed the remaining acquisition costs of the new automobiles by executing a new bank note for $51,880, with terms of ratable, monthly payments, a five year life and a 6.5% annual interest rate. Also during the third quarter of 2013, the Company financed the acquisition of a single vehicle by executing a new bank note for $11,195, with terms of ratable, monthly payments, a five year life and a 6.5% annual interest rate. With the sale of the previously owned vehicles and the purchase of the new vehicles, the Company’s outside sales force is now driving more fuel efficient vehicles, resulting in cost savings to the Company. | ||||||||||||||||||||
In December 2012, the Company’s chief executive officer loaned the Company $120,000, which was evidenced by a demand promissory note, bearing 3% interest. The principal amount of the note was repaid in the first quarter of fiscal 2013. The accrued interest was included in the principal amount of a new convertible promissory note described Note 7. | ||||||||||||||||||||
In August 2013, two individuals loaned the Company $50,000 each to procure third-party hardware for a specific, new contract. Both of the notes mature on March 31, 2014 and bear a simple interest rate of 9.9% per annum, payable upon maturity. One of the two notes requires repayment upon maturity. The other note calls for the same maturity date, provided that the Company must make monthly principal payments beginning in the fourth quarter of 2013 and continuing until the note matures. Subsequent to December 31, 2013, one holder of the notes has elected to extend his $50,000 promissory note to April 2015. The second note holder was paid the outstanding principal balance, plus accrued interest, in March 2014. | ||||||||||||||||||||
In November 2013, the Company executed two short-term notes payable in the aggregate amount of $313,477 with an equipment financing company for the specific purpose of financing the purchase of certain third-party equipment to be sold to contracted customers. Both notes mature in May 2014, bear interest at 16% per annum, are payable upon maturity, and are collateralized by the third-party equipment being procured. The equipment financing company is owned by one of the Company’s outside directors. | ||||||||||||||||||||
In November 2013, the spouse of the Company’s chief executive officer loaned the Company $60,000, which was evidenced by a demand promissory note. The note was replaced shortly thereafter with a new $60,000 convertible promissory note described below. | ||||||||||||||||||||
At December 31, 2012, the notes payable balance for bank loans, all of which involved the purchase of automobiles, increased by $42,691 during the year, consisting of new notes payable totaling $87,688, partially offset by payments of $47,339. These five-year bank notes were collateralized by the associated automobiles and contained an interest rate of six percent per annum. | ||||||||||||||||||||
Also during year 2012, the Company made monthly payments totaling $24,010 on a single note payable involving the short-term financing of certain of the Company’s business insurance policies. | ||||||||||||||||||||
In October 2009, Rocket City Enterprises, Inc. (“RCTY”) filed an arbitration demand against the Company. The demand alleged breach of contract and sought repayment of a purported loan in the amount of $200,000, plus interest at 9% per annum. In November 2010, the two parties settled the matter. Pursuant to the settlement, the Company agreed to pay RCTY an aggregate amount of $130,000, $20,000 of which was paid in early April 2011 with $10,000 to be paid each succeeding calendar month until fully paid. The unpaid balance of the settlement at December 31, 2011 totaled $30,000 and was paid in full during the first quarter of 2012. | ||||||||||||||||||||
NOTE_7_CONVERTIBLE_NOTES_PAYAB
NOTE 7 - CONVERTIBLE NOTES PAYABLE | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Convertible Note Payable [Abstract] | ' | ||||||||
Convertible Note Payable [Text Block] | ' | ||||||||
NOTE 7 - CONVERTIBLE NOTES PAYABLE | |||||||||
During the first quarter of 2013, the Company issued a $120,532 convertible note to its chief executive officer following the receipt of $120,000 in cash, which the Company used for the repayment of the principal amount of a $120,000 demand note, representing a loan made to the Company by its chief executive officer in December 2012. The demand note had accrued $532 of interest, which was included in the principal amount of the convertible note. The convertible note bears 3% interest per annum and is due on March 31, 2014. The convertible note may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. | |||||||||
During the first quarter of 2013, the holder of one convertible note elected to convert the note into shares of the Company’s common stock. The total amount of the converted note on the date of conversion was $19,100 in principal. The Company issued a total of 191,000 shares of its common stock at the conversion price of $0.10 per share as stated in the note. | |||||||||
During the second quarter of 2013, the Company issued two convertible notes to individual investors in exchange for an aggregate investment of $40,000. The convertible notes bear 3% interest per annum, with one $20,000 convertible note maturing in May 2015 and the other $20,000 note maturing in June 2016. The convertible notes may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. | |||||||||
During the third quarter of 2013, the Company issued a $40,000 convertible note to its chief executive officer in exchange for an investment of $40,000. The convertible note bears 3% interest per annum and matures in the first quarter of 2014. The convertible note may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. | |||||||||
During the fourth quarter of 2013, the spouse of the Company’s chief executive officer loaned the Company $60,000, which was evidenced by a demand promissory note. The demand note was replaced shortly thereafter with a new $60,000 convertible promissory note, also bearing 3% interest and due March 31, 2014. The convertible note may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. | |||||||||
At December 31, 2013, the Company had outstanding convertible notes totaling $574,163 scheduled to mature on March 31, 2014. During the first quarter of 2014, all but one of the holders of the associated convertible promissory notes, representing $554,163 in principal aggregate amount, elected to execute either a one-year or two-year extension of the original notes. The other holder elected to convert his $20,000 convertible promissory note into shares of the Company’s common stock at a conversion price of $0.10 per share. The principal amount of the note was converted in 2014. | |||||||||
As a result of this subsequent event and consistent with applicable accounting guidelines, the Company has reclassified the aggregate principal value of $554,163 for the converted notes from Current Liabilities to Long-Term Liabilities on the Company’s Balance Sheet for the year ended December 31, 2013. | |||||||||
During 2012, three individuals elected to convert their convertible notes, representing a total of $240,000 in principal amount and $1,444 in accrued interest, into 2,414,449 shares of the Company’s common stock at a conversion price of $0.10 per share. | |||||||||
The Company accrued interest on outstanding convertible notes in the amount of $13,989 and $17,461 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Convertible notes payable at December 31, 2013 and December 31, 2012 are summarized as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Total convertible notes payable | $ | 873,263 | $ | 612,731 | |||||
Less: note conversions | $ | 259,100 | $ | 240,000 | |||||
Convertible notes payable, net | $ | 614,163 | $ | 372,731 | |||||
Less: current portion | $ | 20,000 | $ | -- | |||||
Convertible notes payable, net, long-term portion | $ | 594,163 | $ | 372,731 | |||||
NOTE_8_PREFERRED_STOCK
NOTE 8 - PREFERRED STOCK | 12 Months Ended | |
Dec. 31, 2013 | ||
Disclosure Text Block Supplement [Abstract] | ' | |
Preferred Stock [Text Block] | ' | |
NOTE 8 - PREFERRED STOCK | ||
Preferred Stock Series A | ||
The Company issued a total of 100,000 shares of its Series A Preferred Stock in April 2008 as partial consideration for its acquisition of a 100% ownership interest in PostInk Technology, LP (“PostInk”). Each share of Series A Preferred Stock is convertible into one share of common stock, but has voting rights on a basis of 750 votes per share. These shares are held by the former general partner of PostInk, which is owned by the co-founders of the Company. | ||
Each share of Series A Preferred Stock shall automatically be converted into fully-paid non-assessable shares of common stock at the then effective conversion rate for such share. The events that may trigger this automatic conversion event are as follows: 1) immediately prior to the closing of firm commitment involving an initial public offering, or 2) upon the receipt of the Company of a written request for such conversion from the holders of at least a majority of the Series A Preferred stock then outstanding, or if later, the effective date for conversion specified in such requests. | ||
Preferred Stock Series B | ||
During 2009, the Company completed a private placement of its Series B Convertible Preferred Stock and warrants to purchase its common stock in which the Company raised $1,450,000 in gross proceeds. During 2010, an additional $50,000 was raised in the private placement. | ||
The Series B Preferred Stock and the warrants were sold as a unit, with each investor receiving eight warrants to purchase one share of common stock for every share of Series B Preferred Stock purchased. The purchase price for each unit was $4.00 per share of Series B Preferred Stock purchased. | ||
As a result of this private placement, the Company issued 375,000 shares of the Company’s newly designated Series B Preferred Stock. The Series B Preferred Stock is convertible into a total of 15,000,000 shares of the Company’s common stock. In addition, as part of the private placement, the Company granted warrants to purchase an aggregate of 3,000,000 shares of its common stock. | ||
The Company used the effective conversion price of preferred shares issued based on the proceeds received to compute the intrinsic value of the embedded conversion feature on preferred stock issuances with detachable warrants. The Company allocated the proceeds received from the Series B Preferred Stock issuance and the detachable warrants included in the exchange on a relative fair value basis. The Company then calculated an effective conversion price and used that price to measure the intrinsic value of the embedded conversion option. | ||
The warrants to purchase a total of 3,000,000 shares of the Company’s common stock granted in the private placement have an exercise price of $0.20 per share and were scheduled to expire on October 14, 2013. The exercise price and the number of shares of common stock purchasable upon exercise of the warrants are subject to adjustment upon the occurrence of certain events, including, but not limited to: (i) stock dividends, stock splits or reverse stock splits; (ii) the payment of dividends on the common stock payable in shares of common stock or securities convertible into common stock; (iii) a recapitalization, reorganization or reclassification involving the common stock, or a consolidation or merger of the Company; or (iv) a liquidation or dissolution of the Company. During 2013, the Company extended the life of these warrants for four additional years. The fair value expense for this warrant extension totaled $120,000, was determined using Black Scholes valuation techniques, and reported in the Company’s Statement of Operations. | ||
Also in connection with this private placement, the Company agreed to use its best efforts to effect a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock issuable upon conversion of the Series B Preferred Stock and upon exercise of the warrants, upon the request of the holders of a majority of those shares after the second anniversary of the date of the private placement closing. It also provides for the investors to have “piggyback” registration rights to include their shares in future registrations with the Securities and Exchange Commission by the Company of the issuance or sale of its securities. The investor’s right to request a registration or inclusion of shares in a registration terminates on the date that such investor may immediately sell all of the shares of common stock issuable upon conversion of the Series B Preferred Stock and upon exercise of the warrants under Rule 144 or Rule 145 promulgated under the Securities Act. The agreement also grants to the investors a right of first refusal to purchase all, but not less than all, of certain new securities the Company may, from time to time, propose to sell after the date of the private placement agreement, and also contains certain covenants relating to the Company’s Board of Directors and requiring the Company to retain patent counsel. As of year ended December 31, 2013, the Company has not received a request of the holders of a majority of those shares to effect a registration statement with the Securities and Exchange Commission. | ||
The Series B Preferred Stock (i) accrues dividends at a rate of 7.0% per annum, payable in preference to the common stock or any other capital stock of the Company, (ii) has a preference in liquidation, or deemed liquidation, to receive the initial investment in the Series B Preferred Stock, plus accrued and unpaid dividends, (iii) is convertible into 40 shares of the Company’s common stock, subject to adjustments for issuances by the Company of common stock at less than $0.10 per share, and (iv) has the right to elect one member of the Company’s Board of Directors. | ||
For the year ended December 31, 2013, net dividends on the Series B Preferred Stock were $105,000. For the year ended December 31, 2012, dividends on the Series B Preferred Stock were $105,288. There was $18,796 for accretion of the beneficial conversion feature on the preferred shares dividends issued in kind. The Company has recorded accrued accumulated dividends as of December 31, 2013 and 2012 of $441,863 and $336,863, respectively, on the Series B Preferred Stock. | ||
· | Each share of Series B Preferred Stock shall automatically be converted into fully-paid, non-assessable shares of Common Stock at the then effective Conversion Rate for such share on the following dates: | |
o | (i) ninety (90) days after the Company has reported net income, in accordance with generally accepted accounting principles, for two (2) consecutive quarters, as reported in its quarterly reports on Form 10-Q (or annual report on Form 10-K, if applicable) filed under the Securities Exchange Act of 1934, as amended, | |
o | (ii) on the date that the Company closes on the sale of securities to purchasers other than holders of the Series B Preferred Stock that was subject to the right of first refusal set forth in the Investors’ Rights Agreement, and the purchasers of such securities require that the Series B Preferred Stock be converted into Common Stock as a condition to such closing, or | |
o | (iii) upon the receipt by the Company of a written request for such conversion from the holders of all of the Series B Preferred Stock then outstanding, or, if later, the effective date for conversion specified in such requests. | |
NOTE_9_COMMON_STOCK
NOTE 9 - COMMON STOCK | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 9 - COMMON STOCK | |
During 2013, the Company received gross proceeds totaling $346,930 from sixteen individual investors in a private placement. The private placement was completed pursuant to a series of subscription agreements between the Company and the investors. Pursuant to the terms of the subscription agreements, the Company agreed to sell to the investors an aggregate of 3,469,300 shares of the Company’s common stock and detachable four-year warrants to purchase an aggregate of 693,860 shares of common stock. | |
Also during 2013 and relating to the 2012 private placement, the Company issued 14,000 warrants relating to a $7,000 deposit in 2012 from a single investor for 70,000 shares of common stock. | |
In connection with the 2013 private placement, the Company received a series of small deposits from a single investor totaling $1,500 in 2013 for shares of common stock and associated warrants, which are anticipated to be issued in 2014. | |
During 2012, the Company received gross proceeds totaling $1,745,000 from twenty-nine individual investors in a private placement. The private placement was completed pursuant to a series of subscription agreements between the Company and the investors. Pursuant to the terms of the subscription agreements, the Company agreed to sell to the investors an aggregate of 17,450,000 shares of the Company’s common stock and detachable four-year warrants to purchase an aggregate of 3,490,000 shares of common stock. Also related to the 2012 private placement, the Company received a $7,000 deposit in 2012 for 70,000 shares of common stock and 14,000 associated warrants, both of which were issued in 2013. | |
For both of the 2013 and 2012 private placements, the common stock and the warrants were sold as an equity unit (“Equity Unit”), with each investor who purchased the common stock receiving a warrant to purchase one share of common stock for every five shares of common stock purchased by such investor. The purchase price for each Equity Unit was $0.10 per share of common stock purchased. | |
During 2012, the Company issued 27,155 shares of common stock to two outside, third party service providers for services provided the Company during the year. One issuance, to repay $2,489 in services, was for 20,155 shares of stock, priced at $0.1235 per share, which reflected ninety-five percent of the average, daily closing price of the Company’s common stock for the month of July 2012, consistent with a written agreement between the Company and the third party service provider. The second issuance, to repay $700 in services, was for 7,000 shares of stock priced at $0.10 per share. This transaction included the issuance of warrants to purchase an additional 1,400 shares of common stock. The warrants have an exercise price of $0.20 per share and expire in October 2016. The exercise price and the number of shares of common stock purchasable upon exercise of the warrants are subject to adjustment (under formula set forth in the warrants) upon the occurrence of certain events, including, but not limited to: (i) stock dividends, stock splits or reverse stock splits; (ii) the payment of dividends on the common stock payable in shares of common stock or securities convertible into common stock; (iii) a recapitalization, reorganization or reclassification involving the common stock, or a consolidation or merger of the Company; or (iv) a liquidation or dissolution of the Company. | |
During 2012, the Company issued 606,848 shares of common stock to two resellers for $60,685 of cash received in 2012, at a price of $0.10 per share of stock. | |
During 2012, the Company issued 150,000 shares of common stock to a prior-year investor. The shares were priced at $0.10 per share. The Company recorded a current-year charge of $15,000 in general and administrative expenses following verification that the cash had actually been received in a prior year. | |
During 2012, the Company issued 1,784,061 shares of common stock to two original equipment manufacturers (“OEM”) distributors for cash received and/or services rendered in prior years and reported as “Common Stock to be Issued.” The total value of these shares was $179,315. This event relates to the Company having previously executed distributor agreements with two original OEM distributors whereby common stock would be issued to the OEMs in an amount equal to the first $250,000 of licensing fees generated by the OEMs. During 2011, the Company received cash totaling $165,000 in licensing fees under these agreements. The amount of stock to be issued was determined each time a payment was made at the higher value of $0.10 per share or the average daily closing price of the stock for a period of ten business days immediately preceding the receipt of payment. As a result, a total of 1,640,909 shares of common stock had been earned by the OEM distributors during 2011 under these distributor agreements. The Company also agreed to issue 143,152 shares of common stock, valued at $0.10 per share, to one of the OEM distributors relating to $14,315 in credits issued by the Company for services rendered in 2011 on behalf of the Company by the OEM distributor. All of these shares of common stock issued under the distributor agreements were subject to transfer restrictions, and could not be sold, licensed, hypothecated or otherwise transferred by the distributor until the tenth anniversary of the issuance date, provided that these transfer restrictions lapsed in equal quarterly installments over ten years and the share transfer restrictions lapse entirely if the distributor achieved certain sale milestones. The licensing fee revenue paid by the OEMs was included in revenues and the value of shares has been included in cost of sales in the statement of operations for year 2012. | |
During 2012, the Company issued 600,000 shares of common stock to two investors in the Company’s 2011 private placement for subscriptions received in 2011. For the 2011 private placement, the common stock and the warrants were sold as an equity unit (“Equity Unit”), with each investor who purchased the common stock receiving a warrant to purchase one share of common stock for every five shares of common stock purchased by such investor. The purchase price for each Equity Unit was $0.10 per share of common stock purchased. | |
The Company also recorded contributed capital of $79,000 during each of the years ended December 31, 2013 and 2012, related to the forfeiture of contractual compensation involving the Company’s two co-founders. | |
NOTE_10_COMMON_STOCK_TO_BE_ISS
NOTE 10 - COMMON STOCK TO BE ISSUED | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Common Stock To Be Isssued [Abstract] | ' | ||||||||||||||||
Common Stock To Be Isssued [Text Block] | ' | ||||||||||||||||
NOTE 10 - COMMON STOCK TO BE ISSUED | |||||||||||||||||
Related to the Company’s 2013 private placement discussed above in Note 9, the Company received a series of small deposits from a single investor totaling $1,500 in 2013 for shares of common stock and associated warrants, which are anticipated to be issued in 2014. | |||||||||||||||||
Related to the Company’s 2012 private placement discussed above in Note 9, the Company received a deposit of $7,000 in 2012 for 70,000 shares of common stock and associated warrants, which were issued in 2013. | |||||||||||||||||
Ronald A. Woessner was elected as the Company’s chief executive officer effective October 1, 2010. Along with Mr. Woessner’s base compensation and options to acquire 2,000,000 shares of the Company’s common stock, he was also granted 2,000,000 restricted shares of common stock valued at $180,000, or $0.09 per share. One of the Company’s founders transferred 2,000,000 shares of common stock from his personal holdings to the Company to fund the grant of these shares to Mr. Woessner. The returned shares were recorded in treasury stock at a value of $180,000, or $0.09 per share. Upon issuance of the 2,000,000 shares of common stock to Mr. Woessner in the second quarter of 2011, the Company recorded the total value of $180,000 in paid-in capital. The restricted shares generally vested pro-rata and quarterly over three years. The $180,000 value was expensed on a quarterly basis, as the shares vested. Accordingly, for years ended December 31, 2013 and 2012, the Company recorded amortization of restricted stock grants of $45,000 and $60,000, respectively. As of December 31, 2013, the restricted shares are fully vested. | |||||||||||||||||
The Company received a $60,000 deposit in 2011 for 600,000 shares of common stock and associated warrants, which were issued in 2012. | |||||||||||||||||
The Company issued a total of 1,784,061 shares of common stock, with a total value of $179,315, in 2012 under the distributor agreements with two OEM distributors discussed above in Note 9. | |||||||||||||||||
The following table provides a reconciliation of the transactions, number of shares and associated common stock values for the common stock to be issued at December 31, 2013 and December 31, 2012. | |||||||||||||||||
At December 31, 2013 | At December 31, 2012 | ||||||||||||||||
Common stock to be issued per: | # of Shares | $ Value | # of Shares | $ Value | |||||||||||||
A stock deposit received for common stock to be issued at $0.10 per share | 15,000 | 1,500 | 70,000 | 7,000 | |||||||||||||
Total number of shares and value | 15,000 | $ | 1,500 | 70,000 | $ | 7,000 | |||||||||||
NOTE_11_BASIC_AND_FULLY_DILUTE
NOTE 11 - BASIC AND FULLY DILUTED LOSS PER SHARE | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
NOTE 11- BASIC AND FULLY DILUTED LOSS PER SHARE | |||||||||
The computations of basic loss per share of common stock are based on the weighted average number of common shares outstanding during the period of the financial statements. Common stock equivalents which would arise from the exercise of stock options and warrants outstanding during the period, the conversion of convertible preferred stock and dividends or the conversion of convertible notes were excluded from the loss per share attributable to common stock holders as their value is anti-dilutive. | |||||||||
The Company's common stock equivalents, at December 31, consisted of the following and have not been included in the calculation because they are anti-dilutive: | |||||||||
2013 | 2012 | ||||||||
Convertible Notes Outstanding | 6,212,191 | 3,755,487 | |||||||
Warrants Outstanding | 11,049,842 | 10,341,982 | |||||||
Stock Options Outstanding | 8,375,000 | 8,815,000 | |||||||
Preferred Stock Outstanding | 15,100,000 | 15,100,000 | |||||||
Dividends on Preferred Stock Outstanding | 5,095,374 | 3,748,150 | |||||||
Total Common Stock Equivalents | 45,832,407 | 41,760,619 | |||||||
NOTE_12_OUTSTANDING_WARRANTS
NOTE 12 - OUTSTANDING WARRANTS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||||||||||||||||||
Shareholders' Equity and Share-based Payments [Text Block] | ' | |||||||||||||||||||||||
NOTE 12 - OUTSTANDING WARRANTS | ||||||||||||||||||||||||
The 707,860 warrants issued in the 2013 private placement, as well as the 3,490,000 warrants issued in the 2012 private placement, all have an exercise price of $0.10 per share of common stock, and expire four years following the date of issuance. The exercise price and the number of shares of common stock purchasable upon exercise of the warrants are subject to adjustment (under a formula set forth in the warrants) upon the occurrence of certain events, including, but not limited to: (i) stock dividends, stock splits or reverse stock splits; (ii) the payment of dividends on the common stock payable in shares of common stock or securities convertible into common stock; (iii) a recapitalization, reorganization or reclassification involving the common stock, or a consolidation or merger of the Company; or (iv) a liquidation or dissolution of the Company. | ||||||||||||||||||||||||
During 2013, the Company’s Board of Directors approved a four year extension to the life of the warrants to purchase 3,000,000 shares of common stock issued in the 2009 private placement of its Series B Preferred Stock (See Note 8). These warrants were scheduled to expire in October 2013. The Company determined the fair market value of this extension to be $120,000 using the Black-Scholes valuation method. This determined cost is reported in the Company’s Statement of Operations for 2013. | ||||||||||||||||||||||||
In 2012, the Company issued warrants to purchase 1,400 shares of common stock in connection with the issuance of 700 shares of common stock, at $0.10 per share of stock, to an outside third party service provider for services rendered during the year. | ||||||||||||||||||||||||
Also during 2009, the Company entered into a twelve-month agreement with an advisory firm to assist the Company in corporate planning, structure and capital resources. The agreement with the advisory firm called for it to receive 75,000 restricted shares of the Company’s common stock, valued at $45,000, or $0.60 per share, which amount was expensed over the twelve-month contract at $3,750 per month. The agreement also called for the advisory firm to receive seven year warrants, with a cashless exercise feature, to purchase 1,500,000 shares of common stock at $0.10 per share, valued at $131,961. Since the Company disputed that the warrants were owed due to nonperformance by the advisory firm, the warrants have never been issued. At December 31, 2012, the Company reclassified the original $131,961 accrual from common stock warrants to be issued to paid in capital believing that the period in which the advisory firm could demand the issuance of the warrants had lapsed. | ||||||||||||||||||||||||
A summary of the status of the Company’s outstanding warrants and the changes during 2012 and 2013 is as follows: | ||||||||||||||||||||||||
Weighted Average | ||||||||||||||||||||||||
Shares | Exercise Price | |||||||||||||||||||||||
Outstanding, January 1, 2012 | 7,130,582 | $ | 0.2 | |||||||||||||||||||||
Granted | 3,611,400 | $ | 0.1 | |||||||||||||||||||||
Cancelled | - | $ | - | |||||||||||||||||||||
Expired | -400,000 | $ | 0.2 | |||||||||||||||||||||
Outstanding, December 31, 2012 | 10,341,982 | $ | 0.17 | |||||||||||||||||||||
Exercisable, December 31, 2012 | 10,341,982 | $ | 0.17 | |||||||||||||||||||||
Granted | 707,860 | $ | 0.1 | |||||||||||||||||||||
Expired | - | $ | - | |||||||||||||||||||||
Outstanding, December 31, 2013 | 11,049,842 | $ | 0.16 | |||||||||||||||||||||
Exercisable, December 31, 2013 | 11,049,842 | $ | 0.16 | |||||||||||||||||||||
The following is a summary of outstanding and exercisable warrants at December 31, 2013: | ||||||||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||||||||
Range of Exercise | Weighted | Outstanding | Weighted | Number | Weighted | |||||||||||||||||||
Prices | Average | Remaining | Average | Exercisable | Average | |||||||||||||||||||
Number | Contractual | Exercise | at 12/31/13 | Exercise | ||||||||||||||||||||
Outstanding | Life (in yrs.) | Price | Price | |||||||||||||||||||||
at 12/31/13 | ||||||||||||||||||||||||
0.1 | 4,249,260 | 2.55 | 0.1 | 4,249,260 | 0.1 | |||||||||||||||||||
0.2 | 6,800,582 | 2.5 | 0.2 | 6,800,582 | 0.2 | |||||||||||||||||||
$ | 0.1 | - | 0.2 | 11,049,842 | 2.52 | $ | 0.16 | 11,049,842 | $ | 0.16 | ||||||||||||||
NOTE_13_EMPLOYEE_OPTIONS
NOTE 13 - EMPLOYEE OPTIONS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||||||||||||
NOTE 13 - EMPLOYEE OPTIONS | |||||||||||||||||||||||||||||||||
At December 31, 2013, the Company has a stock-based compensation plan, the 2009 Long Term Incentive Plan. | |||||||||||||||||||||||||||||||||
The 2009 Long Term Incentive Plan was adopted by the Company’s Board of Directors on September 2, 2009. Non-qualified options under the 2009 Stock Long Term Incentive Plan can be granted to employees, officers, outside directors, and consultants of the Company. There are 10,000,000 shares of common stock authorized for issuance under the 2009 Long Term Incentive Plan. The outstanding options have a term of ten years and vest monthly over five years, quarterly over five years, quarterly over three years or over three years with 33.3% vesting on the one year anniversary date, and the remaining 66.7% vesting quarterly over the remaining two years. As of December 31, 2013, options to purchase 8,375,000 shares of common stock were outstanding, of which options to purchase 6,057,494 shares of common stock were exercisable, with a weighted average exercise price of $0.09 per share. | |||||||||||||||||||||||||||||||||
Share-based compensation expense is based on the estimated grant date fair value of the portion of share-based payment awards that are ultimately expected to vest during the period. The grant date fair value of stock-based awards to employees and directors is calculated using the Black-Scholes option pricing model. Historically and through the third quarter of 2013, forfeitures of share-based payment awards were reported when actual forfeitures occur. On a prospective basis, beginning in the fourth quarter of 2013, the Company applies an estimated forfeiture rate of twenty-three percent to new stock option grants. | |||||||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the Company recorded $184,973 and $174,365 in share-based compensation expenses, respectively. | |||||||||||||||||||||||||||||||||
The cash flows from tax benefits for deductions in excess of the compensation costs recognized for share-based payment awards would be classified as financing cash flows. Due to the Company’s loss position, there was no such tax benefits during the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||
The summary activity under the Company’s 2009 Long Term Incentive Plan is as follows: | |||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Weighted | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | Weighted | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | ||||||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||||||||||
Shares | Exercise Price | Shares | Exercise Price | ||||||||||||||||||||||||||||||
Outstanding at beginning of period | 8,815,000 | $ | 0.09 | 7,445,833 | $ | 0.09 | |||||||||||||||||||||||||||
Granted | 450,000 | $ | 0.1 | 2,250,000 | $ | 0.1 | |||||||||||||||||||||||||||
Exercised | – | $ | 0 | ─ | $ | 0 | |||||||||||||||||||||||||||
Forfeited/ Cancelled | (890,000 | ) | $ | 0.08 | (880,833 | ) | $ | 0.09 | |||||||||||||||||||||||||
Outstanding at period end | 8,375,000 | $ | 0.09 | $ | 83,750 | 1.5 | 8,815,000 | $ | 0.09 | $ | 81,815 | 2.51 | |||||||||||||||||||||
Options vested and exercisable at period end | 6,057,494 | $ | 0.09 | $ | 60,575 | ─ | 4,162,076 | $ | 0.09 | $ | 41,621 | ─ | |||||||||||||||||||||
Weighted average grant-date fair value of options granted during the period | $ | 0.1 | $ | 0.1 | |||||||||||||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2013: | |||||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||
Options | Weighted Average | Weighted Average | Weighted Average | ||||||||||||||||||||||||||||||
Range of Exercise Prices | Outstanding | Remaining Contractual | Exercise Price | Number Outstanding | Exercise Price | ||||||||||||||||||||||||||||
Life (in years) | |||||||||||||||||||||||||||||||||
$ | 0 | – | $0.08 | 2,500,000 | 1.75 | $ | 0.08 | 2,062,500 | $ | 0.08 | |||||||||||||||||||||||
$ | 0.09 | – | $0.10 | 5,875,000 | 1.42 | $ | 0.1 | 3,994,994 | $ | 0.1 | |||||||||||||||||||||||
8,375,000 | 6,057,494 | ||||||||||||||||||||||||||||||||
A summary of the status of the Company’s non-vested shares as of December 31, 2013 is as follows: | |||||||||||||||||||||||||||||||||
Weighted Average | |||||||||||||||||||||||||||||||||
Grant-Date | |||||||||||||||||||||||||||||||||
Non-vested Shares | Shares | Fair Value | |||||||||||||||||||||||||||||||
Non-vested at January 1, 2013 | 4,652,924 | $ | 0.08 | ||||||||||||||||||||||||||||||
Granted | 450,000 | $ | 0.09 | ||||||||||||||||||||||||||||||
Forfeited | (890,000 | ) | $ | 0.08 | |||||||||||||||||||||||||||||
Vested | (1,895,418 | ) | $ | 0.08 | |||||||||||||||||||||||||||||
Non-vested | 2,317,506 | $ | 0.09 | ||||||||||||||||||||||||||||||
As of December 31, 2013, there was approximately $203,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. The unrecognized compensation cost is expected to be recognized over a weighted average period of .92 years. The intrinsic value of options vesting in year 2013 was $41,408. | |||||||||||||||||||||||||||||||||
During 2013, the Company estimated the fair value of the stock options based on the following weighted average assumptions: | |||||||||||||||||||||||||||||||||
Risk-free interest rate | 1.73 | % | - | 2.53 | % | ||||||||||||||||||||||||||||
Expected life | 3 years | ||||||||||||||||||||||||||||||||
Expected volatility | 126 | % | - | 131 | % | ||||||||||||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||||||||||||||
During 2012, the Company estimated the fair value of the stock options based on the following weighted average assumptions: | |||||||||||||||||||||||||||||||||
Risk-free interest rate | 1.61 | % | - | 2.01 | % | ||||||||||||||||||||||||||||
Expected life | 3 years | ||||||||||||||||||||||||||||||||
Expected volatility | 131 | % | - | 140 | % | ||||||||||||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||||||||||||||
NOTE_14_COMMITMENTS_AND_CONTIN
NOTE 14 - COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||||||||
NOTE 14 - COMMITMENTS AND CONTINGENCIES | |||||||||||||
Consulting Agreements | |||||||||||||
In the second quarter of 2013, the Company engaged the services of an investment advisory firm to provide the Company with non-exclusive investment banking and strategic advisory services, as well as their best efforts to assist the Company in raising capital through a private placement of equity or debt securities. Terms of the executed agreement included an initial services period of five months with a monthly fee of $3,500. Either party may terminate the agreement with a minimum five-day written notice. After the initial services period, provided neither party elected termination, the agreement automatically extended on a month-to-month basis at the same monthly fee of $3,500. The advisory firm’s incurred travel and out-of-pocket expenses associated the provided services will also be paid by the Company. | |||||||||||||
If the Company completes a financing transaction with investors identified by the advisory firm, the Company is required to pay a cash fee equal to five percent of the aggregate amount raised by the Company in the financing transaction. In addition to the fees described above, upon the closing of the financing transaction, the Company is required to issue the advisory firm warrants to purchase five percent of the same class of any equity securities issued in the financing transaction, with an exercise price equal to the issue price in the financing transaction, exercisable for at least two years following the close of the financing transaction. | |||||||||||||
In the event the agreement with the advisory firm is not renewed, expires and/or is terminated, the advisory firm is entitled to receive the compensation provided under the agreement for any financing transaction completed by the Company within such twelve months after such termination involving with any investor identified by the advisory firm during the term of the agreement. | |||||||||||||
Office Leases | |||||||||||||
At December 31, 2013, the Company’s principal properties consisted of a facility in Canyon Lake, Texas (approximately 3,000 square feet) and a facility in the Dallas area (approximately 7,000 square feet). The Canyon Lake facility is subject to a month-to-month lease. The Dallas area location is subject to a thirty-month sublease expiring on August 31, 2015. The Company’s research and development, sales and marketing, finance and administrative functions are located in its Dallas area facility. The Company’s customer support and operational activities are located at the Canyon Lake location. | |||||||||||||
The rent agreement for the Company’s Canyon Lake location, executed in August 2010, provides for two one-year renewal options, at the existing rental rate of $1,500 per month, after which the lease becomes a month-to-month lease. Currently, the Company is operating on a month-to-month lease arrangement. | |||||||||||||
The Company executed a sub-lease agreement for the Dallas area facility in March 2011, with occupancy effective April 1, 2011. The sublease agreement had a 23 month term, with monthly payments of $7,489 per month, with rent for the first three months being waived. Ratable rent expense of $6,512 per month was reported during the term of the sub-lease. | |||||||||||||
The sublease for the new Dallas area facility is for 30 months, effective March 1, 2013 and calls for monthly lease payments of $7,502, with the first month’s rent being waived. | |||||||||||||
Future annual lease payments as of December 31, 2013 are as follows: | |||||||||||||
Total | 2014 | 2015-2016 | |||||||||||
Operating Lease Obligations | $ | 161,156 | $ | 101,141 | $ | 60,015 | |||||||
Litigation | |||||||||||||
The Company is not currently involved in any material legal proceedings. From time-to-time the Company anticipates that it will be involved in legal proceedings, claims, and litigation arising in the ordinary course of its business and otherwise. The ultimate costs to resolve any such matters could have a material adverse effect on the Company’s financial statements. The Company could be forced to incur material expenses with respect to these legal proceedings and, in the event there is an outcome in any that is adverse to the Company, its financial position and prospects could be harmed. | |||||||||||||
NOTE_15_RELATED_PARTY_TRANSACT
NOTE 15 - RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 15 - RELATED PARTY TRANSACTIONS | |
In August 2013, the Company’s chief executive officer loaned the Company $40,000, which was evidenced by a convertible promissory note bearing interest at 3% annually. The note is due March 31, 2014. The convertible note may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. | |
In November 2013, the spouse of the Company’s chief executive officer loaned the Company $60,000, which was evidenced by a demand promissory note bearing interest at 3% annually. The demand note was replaced shortly thereafter with a convertible promissory note totaling $60,000, also bearing 3% annual interest and due March 31, 2014. The convertible note may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. | |
In November 2013, the Company executed two short-term notes payable in the aggregate of $313,477 with an equipment financing company owned by one of the Company’s outside directors for the specific purpose of financing the purchase of certain third-party equipment to be sold to contracted customers. Both notes mature in May 2014, bear interest at 16% annually, are payable upon maturity, and are collateralized by the third-party equipment being procured. | |
In December 2012, the Company’s chief executive officer loaned the Company $120,000, which was evidenced by a demand promissory note bearing interest at 3% annually. The demand note, including accrued interest, was replaced with a convertible promissory note totaling $120,534, also bearing 3% annual interest and due one year from its issuance. The convertible note may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. During 2013, the Company’s chief executive officer agreed to extend the due date for this convertible promissory note to March 14, 2014. | |
On September 14, 2012, 824 Highway 3 Investments, L.P., for which Robert Harris, who became a member of our board of directors on November 9, 2012, is a principal, purchased 2,500,000 shares of our common stock, and four year warrants to acquire an additional 500,000 shares of our common stock, for $250,000 in cash. On November 14, 2012, 824 Highway 3 Investments, L.P. purchased an additional 5,000,000 shares of our common stock, and four year warrants to acquire an additional 1,000,000 shares of our common stock, for $500,000 in cash. The exercise price for the warrant to purchase 1,000,000 warrant shares is $.20 per share, and the exercise price for the warrant to purchase 500,000 shares is $.10 per share. | |
NOTE_16_SUBSEQUENT_EVENTS
NOTE 16 - SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 16 - SUBSEQUENT EVENTS | |
At December 31, 2013, the Company reported convertible notes totaling $574,163 scheduled to mature on March 31, 2014. During the first quarter of 2014, all but one of the holders of the convertible promissory notes elected to execute either a one-year or two-year extension of the original notes in the aggregate principal value of $554,163. One holder elected to convert his $20,000 convertible promissory note into shares of the Company’s common stock. The principal amount of the note was converted in 2014. | |
As a result and consistent with applicable accounting guidelines, the Company has reclassified the aggregate principal value of $554,163 for the converted notes from Current Liabilities to Long-Term Liabilities on the Company’s Balance Sheet for the year ended December 31. 2013. | |
In the first quarter of 2014, one promissory note holder who had loaned the Company $50,000 to procure third-party hardware for a specific, new contract, elected to extend the maturity date on the note to April 2015. The maturity date was March 31, 2014, and bore a simple interest rate of 9.9% per annum, payable upon maturity. | |
On February 28, 2014, the Company’s chief executive officer loaned the Company $25,000, which was evidenced by a promissory note. The note matures in 60 days from its issuance and bears interest at 3% per annum. The Company anticipates that it will repay the promissory note within its terms. | |
In the first quarter of 2014, we received a $475,000 loan from the City of Pharr, Texas, and we expect to receive an additional $375,000 loan from that city in April or May of 2014. This loan payment pertains to a $850,000, eighteen-month loan agreement being executed. Interest on the note is eight percent per annum and is to be paid monthly, beginning in the second quarter of 2014. Other terms of the loan agreement involve the collateralization of the Company’s accounts receivable, and a provision for the City of Pharr to participate in revenue-sharing at a rate of one-half of one percent of the Company’s gross revenue for a designated geographical area, payable on a quarterly basis. | |
Also in the first quarter of 2014, we received cash of $30,000 from two investors for 300,000 shares of common stock at a price of $0.10 per share. This activity relates to our initiative to raise new capital of approximately $500,000 in 2014. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Basis of Accounting [Text Block] | ' | ||||||||
a. Basis of Presentation | |||||||||
The accompanying financial statements include the accounts of the Company, and are prepared on the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America. | |||||||||
Reclassifications [Text Block] | ' | ||||||||
b. Reclassifications | |||||||||
Certain prior year items have been reclassified to conform to the current year presentation. These reclassifications had no impact on the Company’s net loss. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||
c. Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with maturities at the date of purchase of three months or less to be cash equivalents. | |||||||||
The Company's cash and cash equivalents, at December 31, consisted of the following: | |||||||||
2013 | 2012 | ||||||||
Cash in bank | $ | 414,001 | $ | 172,443 | |||||
Money market funds | 50 | 2,001 | |||||||
Cash and cash equivalents | $ | 414,051 | $ | 174,444 | |||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||
d. Concentrations of credit risk | |||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. Cash and cash equivalents are deposited in demand and money market accounts in two financial institutions in the United States. Accounts at financial institutions in the United States are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. At times, the Company’s deposits or investments may exceed federally insured limits. At December 31, 2013, the Company had approximately $215,000 at two financial institutions in excess of FDIC insured limits. The Company has not experienced any losses in such accounts. | |||||||||
To date, accounts receivable have been derived principally from revenue earned from end users, which are local and state government agencies. The Company performs periodic credit evaluations of its customers, and does not require collateral. | |||||||||
Accounts receivable are recorded net of the allowance for doubtful accounts. The Company provides an allowance for doubtful accounts that is based upon a review of outstanding receivables, historical collection information and existing economic conditions. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. At December 31, 2013 and 2012, the Company has recorded an allowance for doubtful accounts of $30,000 and $0, respectively. | |||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||
e. Use of Estimates | |||||||||
The preparation of accompanying 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 amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. The Company’s significant estimates include primarily those required in the valuation or impairment analysis of capitalization of labor under software development costs, property and equipment, revenue recognition, allowances for doubtful accounts, stock-based compensation, warrants, litigation accruals and valuation allowances for deferred tax assets. Although the Company believes that adequate accruals have been made for unsettled issues, additional gains or losses could occur in future years from resolutions of outstanding matters. Actual results could differ materially from original estimates. | |||||||||
Inventory, Policy [Policy Text Block] | ' | ||||||||
f. Inventory | |||||||||
Inventory is stated at the lower of cost (determined using the first-in, first-out method) or market. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence or impaired balances. No such adjustments have been made in years 2013 or 2012. | |||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||
g. Property and Equipment | |||||||||
Property and equipment is recorded at cost. Major additions and improvements are capitalized, while ordinary maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of equipment retired or sold are removed from the accounts and any differences between the non-depreciated amount and the proceeds from the sale are recorded as gain or loss on asset disposals. | |||||||||
Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, ranging as follows: | |||||||||
Computer hardware/software | 3 years | ||||||||
Fleet vehicles | 5 years | ||||||||
Furniture and fixtures | 5 to 7 years | ||||||||
Depreciation expense on property and equipment was $35,935 and $36,132 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||
h. Long-lived Assets | |||||||||
The Company reviews its long-lived assets including property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Examples of such events could include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset, a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business or a significant change in the operations of an acquired business. | |||||||||
An impairment test involves a comparison of undiscounted cash flows from the use of the asset to the carrying value of the asset. Measurement of an impairment loss is based on the amount that the carrying value of the asset exceeds its fair value. No impairment losses were incurred in the periods presented. | |||||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | ' | ||||||||
i. Software Development Costs | |||||||||
Certain software development costs incurred subsequent to the establishment of technological feasibility may be capitalized and amortized over the estimated lives of the related products. Through mid-year 2010, the Company capitalized certain software development costs accordingly. | |||||||||
The Company determined technological feasibility to be established upon completion of (1) product design, (2) detail program design, (3) consistency between product and program design and (4) review of detail program design to ensure that high risk development issues have been resolved. Upon the general release of the COPsync service offering to customers, development costs for that product were amortized over fifteen years based on management’s then estimated economic life of the product. | |||||||||
The Company has not capitalized any of the software development efforts associated with its new product offerings, WARRANTsync, VidTac and COPsync911, because the time period between achieving technological feasibility and product release for both of these product offerings was very short. As a result, the incurred costs have been recorded as research and development costs in years 2013 and 2012. | |||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | ||||||||
j. Research and Development | |||||||||
Research and development costs are charged to expense as incurred. | |||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||
k. Fair Value of Financial Instruments | |||||||||
The carrying amounts of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and short-term debt approximate fair value due to their relatively short maturities. The carrying amounts of notes payable approximate fair value based on market interest rates currently available to the Company. | |||||||||
The fair value framework requires a categorization of assets and liabilities, which are required at fair value, into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: | |||||||||
Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. | |||||||||
Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. | |||||||||
Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. | |||||||||
At December 31, 2013 and 2012, the Company had no such assets or liabilities that were reported at fair value. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||
l. Revenue Recognition | |||||||||
The Company’s business is to sell subscriptions to the COPsync service, which is a real-time, in-car information sharing, communication and data interoperability network for law enforcement agencies. The agencies subscribe to the service for a specified period of time (usually for twelve to forty-eight months), for a specified number of officers per agency, and at a fixed subscription fee per officer. | |||||||||
In the process of selling the subscription service, the Company is requested from time-to-time to also sell computers and computer-related hardware (“hardware”) used to provide the in-vehicle service should the customer not already have the hardware, as well as hardware installation services, the initial agency and officer set-up and training services and, sometimes, software integration services for enhanced service offerings. | |||||||||
The Company’s most common sales are: | |||||||||
1) for new customers – a multiple-element arrangement involving (a) the subscription fee, (b) integration of the COPsync software and a hardware appliance (where the hardware and software work together to deliver the essential functionality of the service) to include related services for hardware installation and agency and officer set-up and training and (c) if applicable, software integration services for enhanced service offerings; and | |||||||||
2) for existing customers – the subscription fees for the annual renewal of an agency’s COPsync subscription service, upon the completion of the agency’s previous subscription period. | |||||||||
The Company recognizes revenue when all of the following have occurred: (1) the Company has entered into a legally binding arrangement with a customer resulting in the existence of persuasive evidence of an arrangement; (2) delivery has occurred, evidenced when product title transfers to the customer; (3) customer payment is deemed fixed or determinable and free of contingencies and significant uncertainties; and (4) collection is probable. | |||||||||
The sales of the hardware and related services for hardware installation and agency and officer set-up and training are reported as “Hardware, installation and other revenues” in the Company’s Statement of Operations. The sale of the VidTac product offering is considered a hardware sale and is reported in this revenue classification. | |||||||||
The subscription fees and software integration services are reported as “software license/subscriptions revenues” in the Company’s Statement of Operations. The subscription fees include termed licenses for the contracted officers to have access to the service and the right to receive telephonic customer and technical support, as well as software updates, during the subscription period. Support for the hardware is normally provided by the hardware manufacturer. | |||||||||
The sale of the WARRANTsync and COPsync911 product offerings are reported in “software license/subscriptions revenues.” The products’ revenue stream consists of two elements: (1) an integration element, which is recognized upon integration and customer acceptance; and (2) a subscription element, which is recognized ratably over the service period upon customer acceptance. WARRANTsync represents a very small portion of our revenues and could be viewed as an enhancement feature to our COPsync Network. | |||||||||
The receipt and acceptance of an executed customer’s service agreement, which outlines all of the particulars of the sale event, is the primary method of determining that persuasive evidence of an arrangement exists. | |||||||||
Delivery generally occurs for the different elements of revenue as follows: | |||||||||
(1) For multiple-element arrangements involving new customers – contractually the lesser period of time of sixty days from contract date or the date officer training services are completed. The Company requests the agency to complete a written customer acceptance at the time training is completed, which will override the contracted criteria discussed immediately above. | |||||||||
(2) The subscription fee – the date the officer training is completed and written customer acceptance is received. | |||||||||
(3) Software integration services for enhanced service offerings – upon the completion of the integration efforts and verification that the enhanced service offering is available for use by the agency. | |||||||||
Fees are typically considered to be fixed or determinable at the inception of an arrangement, generally based on specific services and products to be delivered pursuant to the executed service agreement. Substantially all of the Company’s service agreements do not include rights of return or acceptance provisions. To the extent that agreements contain such terms, the Company recognizes revenue once the acceptance provisions or right of return lapses. Payment terms to customers generally range from net “upon receipt of invoice” to “net 30 days from invoice date.” In 2013, the Company adopted a policy of requesting new customers purchasing a significant amount of equipment to prepay for the equipment at the time the equipment was ordered from the Company’s suppliers. These prepayments are recorded on the Company’s Balance Sheet as Current Deferred Revenues. | |||||||||
The Company assesses the ability to collect from its customers based on a number of factors, including credit worthiness of the customer and the past transaction history with the customer. If the customer is not deemed credit worthy, the Company defers all revenue from the arrangement until payment is received and all other revenue recognition criteria have been met. | |||||||||
As indicated above, some customer orders contain multiple elements. The Company allocates revenue to each element in an arrangement based on relative selling price. The selling price for a deliverable is based on its vendor specific objective evidence (“VSOE”), if available, third party evidence ("TPE"), if VSOE is not available, or the Company’s best estimate of selling price ("ESP"), if neither VSOE nor TPE is available. The maximum revenue the Company recognizes on a delivered element is limited to the amount that is not contingent upon the delivery of additional items. Many of the Company’s service agreements contain grants (or discounts) provided to the contracting agency. These grants or discounts have been allocated across all of the different elements based upon the respective, relative selling price. | |||||||||
The Company determines VSOE for subscription fees for the initial contract period based upon the rate charged to customers on a stand-alone subscription service. VSOE for renewal pricing is based upon the stated rate for the renewed subscription service, which is stated in the service agreement or contract entered into. The renewal rate is generally equal to the stated rate in the original contract. The Company has a history of such renewals, the vast majority of which are at the stated renewal rate on a customer-by customer-basis. Subscription fee revenue is recognized ratably over the life of the service agreement. | |||||||||
The Company has determined that the selling price of hardware products include the related services for hardware installation and agency and officer set-up and training, as well as integration services for enhanced service offerings, which are sold separately and, as a result, it has VSOE for these products. | |||||||||
For almost all of the Company’s new service agreements, as well as renewal agreements, billing and payment terms are agreed to up front or in advance of performance milestones. These payments are initially recorded as deferred revenue and subsequently recognized as revenue as follows: | |||||||||
(1) Integration of the COPsync software and a hardware appliance (where the hardware and software work together to deliver the essential functionality of the service) to include related services for hardware installation and agency and officer set-up and training – immediately upon delivery. | |||||||||
(2) The subscription fee – ratably over the contracted subscription period, commencing on the delivery date. | |||||||||
(3) Software integration services for enhanced service offerings – immediately upon the Company’s completion of the integration and verification that the enhanced service is available for the agency’s use. | |||||||||
(4) Renewals – ratably over the renewed subscription or service period commencing on the completion of the previous subscription or service period. | |||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||
m. Income Taxes | |||||||||
The Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which are recorded on the Company’s Balance Sheets. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. Changes in the Company’s valuation allowance in a period are recorded through the income tax provision on the Company’s Statements of Operations. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. | |||||||||
The Company periodically assesses uncertain tax positions that the Company has taken or expects to take on a tax return (including a decision whether to file or not to file a return in a particular jurisdiction). The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company evaluated its tax positions and determined that there were no uncertain tax positions for the years ended December 31, 2013 and 2012. | |||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||
n. Share Based Compensation | |||||||||
The Company accounts for all share-based payment transactions using a fair-value based measurement method. The Company calculates stock option-based compensation by estimating the fair value of each option as of its date of grant using the Black-Scholes option pricing model. These amounts are expensed over the respective vesting periods of each award using the straight-line attribution method. The Company has historically issued stock options and vested and non-vested stock grants to employees and, beginning in 2012, to outside directors, whose only condition for vesting has been continued employment or service during the related vesting or restriction period. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||
o. Newly Adopted Pronouncements | |||||||||
Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. | |||||||||
Stockholders' Equity, Policy [Policy Text Block] | ' | ||||||||
p. Preferred Stock Issuances with Beneficial Conversion Features | |||||||||
The Company uses the effective conversion price of preferred shares issued based on the proceeds received to compute the intrinsic value of the embedded conversion feature on preferred stock issuances with detachable warrants. The Company calculates an effective conversion price and uses that price to measure the intrinsic value of the embedded conversion option. |
NOTE_2_SUMMARY_OF_SIGNIFICANT_1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Cash and Cash Equivalents [Table Text Block] | 'The Company's cash and cash equivalents, at December 31, consisted of the following: | ||||||||
2013 | 2012 | ||||||||
Cash in bank | $ | 414,001 | $ | 172,443 | |||||
Money market funds | 50 | 2,001 | |||||||
Cash and cash equivalents | $ | 414,051 | $ | 174,444 | |||||
Property, Plant and Equipment [Table Text Block] | 'Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, ranging as follows: | ||||||||
Computer hardware/software | 3 years | ||||||||
Fleet vehicles | 5 years | ||||||||
Furniture and fixtures | 5 to 7 years |
NOTE_3_INVENTORY_Tables
NOTE 3 - INVENTORY (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | 'Inventory consisted of the following at December 31, 2013 and 2012, respectively: | ||||||||
December 31, | |||||||||
Category | 2013 | 2012 | |||||||
Raw materials | $ | - | $ | 168,511 | |||||
Work-in-process | - | - | |||||||
Finished goods | 357,933 | 168,909 | |||||||
Total Inventory | $ | 357,933 | $ | 337,420 |
NOTE_4_SOFTWARE_DEVELOPMENT_CO1
NOTE 4 - SOFTWARE DEVELOPMENT COSTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Research and Development [Abstract] | ' | ||||||||
Schedule of Software Development Costs [Table Text Block] | 'Software development costs as of December 31, 2013 and 2012, respectively, were as follows: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Capitalized software development costs | $ | 2,724,082 | $ | 2,724,082 | |||||
Accumulated amortization | (1,410,803 | ) | (974,338 | ) | |||||
Sub-total | 1,313,279 | $ | 1,749,744 | ||||||
Cumulative Impairment charge | (876,808 | ) | -876,808 | ||||||
Total | $ | 436,471 | $ | 872,936 | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 'Future amortization expense is as follows: | ||||||||
Year Ended December 31, | Expense | ||||||||
2014 | $ | 436,471 |
NOTE_5_INCOME_TAXES_Tables
NOTE 5 - INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 'Deferred tax assets and liabilities at December 31, consist of the following: | ||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carry-forwards | $ | 4,372,400 | $ | 3,206,200 | |||||
- | - | ||||||||
Total deferred tax assets | 4,372,400 | 3,206,200 | |||||||
Valuation allowance | (4,372,400 | ) | (3,206,200 | ) | |||||
Net deferred tax assets | $ | - | $ | - | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 'Income tax benefit differs from the expected statutory rate as follows: | ||||||||
2013 | 2012 | ||||||||
Expected federal income tax benefit | $ | (1,529,500 | ) | $ | (1,212,400 | ) | |||
Stock expense | 15,300 | 21,200 | |||||||
Stock option and warrant expense | 123,100 | 59,300 | |||||||
Other | 224,900 | 26,900 | |||||||
Change in valuation allowance | 1,166,200 | 1,105,000 | |||||||
Income tax benefit | $ | – | $ | – |
NOTE_6_NOTES_PAYABLE_Tables
NOTE 6 - NOTES PAYABLE (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Debt [Table Text Block] | 'Notes payable as of December 31, 2013 and 2012 consisted of the following: | |||||||||||||||||||
Collateral | Interest | Monthly | December 31, | |||||||||||||||||
Type | (If any) | Rate | Payments | Maturity | 2013 | 2012 | ||||||||||||||
Bank | Autos | 6.75 | % | $ | 308 | Sep. 2013 | - | 1,047 | ||||||||||||
Bank | Autos | 7 | % | $ | 799 | Nov. 2014 | - | 17,140 | ||||||||||||
Bank | Autos | 6 | % | $ | 468 | Jan. 2017 | 15,749 | 20,256 | ||||||||||||
Bank | Autos | 6 | % | $ | 406 | Sep. 2016 | - | 16,307 | ||||||||||||
Bank | Autos | 6 | % | $ | 449 | Sep. 2016 | - | 18,044 | ||||||||||||
Bank | Autos | 6 | % | $ | 638 | Sep. 2016 | - | 25,354 | ||||||||||||
Bank | Autos | 6.5 | % | $ | 1,017 | Jun. 2018 | 47,401 | - | ||||||||||||
Bank | Autos | 6.5 | % | $ | 220 | Jul. 2018 | 10,392 | - | ||||||||||||
Insurance | - | 3.79 | % | $ | 3,093 | Nov. 2014 | 34,069 | 31,420 | ||||||||||||
Demand Note | Inventory | 16 | % | $ | - | May-14 | 313,477 | - | ||||||||||||
Demand Note | - | 9.9 | % | $ | - | Mar. 2014 | 98,646 | - | ||||||||||||
Demand Note | - | 3 | % | $ | - | - | - | 120,000 | ||||||||||||
Total notes payable | $ | 519,734 | $ | 249,568 | ||||||||||||||||
Less: Current portion | $ | (412,405 | ) | $ | (180,305 | ) | ||||||||||||||
Long-term portion | $ | 107,329 | $ | 69,263 | ||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | 'Future principal payments on long-term debt are as follows: | |||||||||||||||||||
2014 | $ | 412,405 | ||||||||||||||||||
2015 | 67,277 | |||||||||||||||||||
2016 | 18,410 | |||||||||||||||||||
2017 | 14,342 | |||||||||||||||||||
2018 & thereafter | 7,300 | |||||||||||||||||||
Total | $ | 519,734 |
NOTE_7_CONVERTIBLE_NOTES_PAYAB1
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Convertible Note Payable [Abstract] | ' | ||||||||
Schedule of Convertible Debt [Table Text Block] | 'Convertible notes payable at December 31, 2013 and December 31, 2012 are summarized as follows: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Total convertible notes payable | $ | 873,263 | $ | 612,731 | |||||
Less: note conversions | $ | 259,100 | $ | 240,000 | |||||
Convertible notes payable, net | $ | 614,163 | $ | 372,731 | |||||
Less: current portion | $ | 20,000 | $ | -- | |||||
Convertible notes payable, net, long-term portion | $ | 594,163 | $ | 372,731 |
NOTE_10_COMMON_STOCK_TO_BE_ISS1
NOTE 10 - COMMON STOCK TO BE ISSUED (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Common Stock To Be Isssued [Abstract] | ' | ||||||||||||||||
Schedule of Common Stock to Be Issued [Table Text Block] | 'The following table provides a reconciliation of the transactions, number of shares and associated common stock values for the common stock to be issued at December 31, 2013 and December 31, 2012. | ||||||||||||||||
At December 31, 2013 | At December 31, 2012 | ||||||||||||||||
Common stock to be issued per: | # of Shares | $ Value | # of Shares | $ Value | |||||||||||||
A stock deposit received for common stock to be issued at $0.10 per share | 15,000 | 1,500 | 70,000 | 7,000 | |||||||||||||
Total number of shares and value | 15,000 | $ | 1,500 | 70,000 | $ | 7,000 |
NOTE_11_BASIC_AND_FULLY_DILUTE1
NOTE 11 - BASIC AND FULLY DILUTED LOSS PER SHARE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | 'The Company's common stock equivalents, at December 31, consisted of the following and have not been included in the calculation because they are anti-dilutive: | ||||||||
2013 | 2012 | ||||||||
Convertible Notes Outstanding | 6,212,191 | 3,755,487 | |||||||
Warrants Outstanding | 11,049,842 | 10,341,982 | |||||||
Stock Options Outstanding | 8,375,000 | 8,815,000 | |||||||
Preferred Stock Outstanding | 15,100,000 | 15,100,000 | |||||||
Dividends on Preferred Stock Outstanding | 5,095,374 | 3,748,150 | |||||||
Total Common Stock Equivalents | 45,832,407 | 41,760,619 |
NOTE_12_OUTSTANDING_WARRANTS_T
NOTE 12 - OUTSTANDING WARRANTS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||||||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | 'A summary of the status of the Company’s outstanding warrants and the changes during 2012 and 2013 is as follows: | |||||||||||||||||||||||
Weighted Average | ||||||||||||||||||||||||
Shares | Exercise Price | |||||||||||||||||||||||
Outstanding, January 1, 2012 | 7,130,582 | $ | 0.2 | |||||||||||||||||||||
Granted | 3,611,400 | $ | 0.1 | |||||||||||||||||||||
Cancelled | - | $ | - | |||||||||||||||||||||
Expired | -400,000 | $ | 0.2 | |||||||||||||||||||||
Outstanding, December 31, 2012 | 10,341,982 | $ | 0.17 | |||||||||||||||||||||
Exercisable, December 31, 2012 | 10,341,982 | $ | 0.17 | |||||||||||||||||||||
Granted | 707,860 | $ | 0.1 | |||||||||||||||||||||
Expired | - | $ | - | |||||||||||||||||||||
Outstanding, December 31, 2013 | 11,049,842 | $ | 0.16 | |||||||||||||||||||||
Exercisable, December 31, 2013 | 11,049,842 | $ | 0.16 | |||||||||||||||||||||
Schedule of Outstanding and Exercisable Warrants [Table Text Block] | 'The following is a summary of outstanding and exercisable warrants at December 31, 2013: | |||||||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||||||||
Range of Exercise | Weighted | Outstanding | Weighted | Number | Weighted | |||||||||||||||||||
Prices | Average | Remaining | Average | Exercisable | Average | |||||||||||||||||||
Number | Contractual | Exercise | at 12/31/13 | Exercise | ||||||||||||||||||||
Outstanding | Life (in yrs.) | Price | Price | |||||||||||||||||||||
at 12/31/13 | ||||||||||||||||||||||||
0.1 | 4,249,260 | 2.55 | 0.1 | 4,249,260 | 0.1 | |||||||||||||||||||
0.2 | 6,800,582 | 2.5 | 0.2 | 6,800,582 | 0.2 | |||||||||||||||||||
$ | 0.1 | - | 0.2 | 11,049,842 | 2.52 | $ | 0.16 | 11,049,842 | $ | 0.16 |
NOTE_13_EMPLOYEE_OPTIONS_Table
NOTE 13 - EMPLOYEE OPTIONS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 'The summary activity under the Company’s 2009 Long Term Incentive Plan is as follows: | ||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Weighted | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | Weighted | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | ||||||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||||||||||
Shares | Exercise Price | Shares | Exercise Price | ||||||||||||||||||||||||||||||
Outstanding at beginning of period | 8,815,000 | $ | 0.09 | 7,445,833 | $ | 0.09 | |||||||||||||||||||||||||||
Granted | 450,000 | $ | 0.1 | 2,250,000 | $ | 0.1 | |||||||||||||||||||||||||||
Exercised | – | $ | 0 | ─ | $ | 0 | |||||||||||||||||||||||||||
Forfeited/ Cancelled | (890,000 | ) | $ | 0.08 | (880,833 | ) | $ | 0.09 | |||||||||||||||||||||||||
Outstanding at period end | 8,375,000 | $ | 0.09 | $ | 83,750 | 1.5 | 8,815,000 | $ | 0.09 | $ | 81,815 | 2.51 | |||||||||||||||||||||
Options vested and exercisable at period end | 6,057,494 | $ | 0.09 | $ | 60,575 | ─ | 4,162,076 | $ | 0.09 | $ | 41,621 | ─ | |||||||||||||||||||||
Weighted average grant-date fair value of options granted during the period | $ | 0.1 | $ | 0.1 | |||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | 'The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2013: | ||||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||
Options | Weighted Average | Weighted Average | Weighted Average | ||||||||||||||||||||||||||||||
Range of Exercise Prices | Outstanding | Remaining Contractual | Exercise Price | Number Outstanding | Exercise Price | ||||||||||||||||||||||||||||
Life (in years) | |||||||||||||||||||||||||||||||||
$ | 0 | – | $0.08 | 2,500,000 | 1.75 | $ | 0.08 | 2,062,500 | $ | 0.08 | |||||||||||||||||||||||
$ | 0.09 | – | $0.10 | 5,875,000 | 1.42 | $ | 0.1 | 3,994,994 | $ | 0.1 | |||||||||||||||||||||||
8,375,000 | 6,057,494 | ||||||||||||||||||||||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | 'A summary of the status of the Company’s non-vested shares as of December 31, 2013 is as follows: | ||||||||||||||||||||||||||||||||
Weighted Average | |||||||||||||||||||||||||||||||||
Grant-Date | |||||||||||||||||||||||||||||||||
Non-vested Shares | Shares | Fair Value | |||||||||||||||||||||||||||||||
Non-vested at January 1, 2013 | 4,652,924 | $ | 0.08 | ||||||||||||||||||||||||||||||
Granted | 450,000 | $ | 0.09 | ||||||||||||||||||||||||||||||
Forfeited | (890,000 | ) | $ | 0.08 | |||||||||||||||||||||||||||||
Vested | (1,895,418 | ) | $ | 0.08 | |||||||||||||||||||||||||||||
Non-vested | 2,317,506 | $ | 0.09 | ||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 'During 2013, the Company estimated the fair value of the stock options based on the following weighted average assumptions: | ||||||||||||||||||||||||||||||||
Risk-free interest rate | 1.73 | % | - | 2.53 | % | ||||||||||||||||||||||||||||
Expected life | 3 years | ||||||||||||||||||||||||||||||||
Expected volatility | 126 | % | - | 131 | % | ||||||||||||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||||||||||||||
Risk-free interest rate | 1.61 | % | - | 2.01 | % | ||||||||||||||||||||||||||||
Expected life | 3 years | ||||||||||||||||||||||||||||||||
Expected volatility | 131 | % | - | 140 | % | ||||||||||||||||||||||||||||
Dividend yield | 0 | % |
NOTE_14_COMMITMENTS_AND_CONTIN1
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 'Future annual lease payments as of December 31, 2013 are as follows: | ||||||||||||
Total | 2014 | 2015-2016 | |||||||||||
Operating Lease Obligations | $ | 161,156 | $ | 101,141 | $ | 60,015 |
NOTE_1_NATURE_OF_ORGANIZATION_1
NOTE 1 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Subsequent Event [Member] | Subsequent Event [Member] | VidTac Systems and Components [Member] | COPSync911 [Member] | COPSync911 [Member] | COPSync911 [Member] | Renewing Customers [Member] | Common stock to be issued [Member] | EB-5 Visa Program [Member] | Service Agreement [Member] | Service Agreement [Member] | ||||
Loan from City of Pharr, Texas [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||
NOTE 1 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Description | ' | ' | ' | ' | ' | 'VidTac is a software-driven video system for law enforcement. Traditional in-vehicle video systems are "hardware centric" DVR-based systems. The video capture, compression and encryption of the video stream is performed by the DVR. The estimated price of these high-end, digital DVR-based systems range from $5,100 to $11,000 per system. These DVR-based systems are typically replaced, at the same expensive price point, every three to four years as new patrol vehicles are placed into service.The VidTac system is price advantageous vis-a-vis other high-end video systems. The Company is offering it for sale at a much lower price than the average price of DVR-based video systems. Furthermore, for those agencies that already have in-vehicle computers, the VidTac system eliminates the need for the agency to purchase a second computer, i.e., the DVR, and eliminates the need to replace this second (DVR) computer every three to four years. | 'The Company also offers the COPsync911 threat alert, first introduced in the second quarter of 2013, for use in schools, hospitals, day care facilities, governmental office buildings, energy infrastructure and other facilities with a high level of concern about security. When used in schools, the COPsync911 service enables school personnel to instantly and silently send emergency alerts directly to the closest law enforcement officers in their patrol vehicles, and to the local 911 dispatch center, with the mere click of an icon located on every computer within the facility. The alert is also sent to the cell phones of all law enforcement officers in the area and to all teachers, administrators, and other staff at the school, alerting them of imminent danger. The Company expects its COPsync911 service to reduce emergency law enforcement response times by five to seven minutes. | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | $414,051 | $174,444 | $1,074,317 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working Capital (Deficit) | -3,739,475 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | -18,651,112 | -14,811,256 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization, Liquidity and Management Plans, Description | '1) The Company increased the volume of its new orders. For the twelve month period ended December 31, 2013, the Company signed service agreements for approximately $5,852,000 in new orders, compared to approximately $2,913,000 in new orders for the comparable period in 2012, an increase of approximately 101%.2) The Company introduced the COPsync911 real-time threat alert service, which the Company believes is the only service of its kind in the United States, that enables a person (such as a schoolteacher in a school) to instantaneously and silently send emergency alerts directly to local law enforcement officers in their patrol vehicles and the local emergency dispatch center with just the click of a computer mouse. The Company is primarily offering the COPsync911 service in the State of Texas, but began offering it in other selected regions of the United States in the third quarter of 2013. For the twelve months ended December 31, 2013, the Company had booked new orders of approximately $361,000 for the COPsync911 service since its introduction in the second quarter of 2013. The Company expects the pace of COPsync911 sales to accelerate as its sales team becomes familiar with the service and the strategies for selling it and as newly engaged resellers begin to sell the service. The Company expects COPsync911 bookings from its direct and channel sales efforts to range between $1.2 million and $2.0 million for fiscal year 2014.3) The Company's procurement processes for third party hardware employs "just in time" principles, meaning that the Company attempts to schedule delivery to the customer of the third party hardware it sells immediately after it receives the hardware. The Company also continues its attempts to collect customer prepayments for the third party hardware it sells at or about the time it orders the hardware. This change in the processing of third party hardware has helped the Company significantly in managing its working capital.4) The Company's key vendors continue to accommodate its extended payment terms or practices for its outstanding payables balances, but the Company is uncertain how long these accommodations will continue.6) In the first quarter of 2014, the Company received a $475,000 loan from the City of Pharr, Texas, and it expects to receive an additional $375,000 loan from the city in April or May of 2014.7) During 2013, we raised new capital funds of $608,430 from investors, consisting of $346,930 for 3,469,300 shares of our common stock, $260,000 for convertible promissory notes, and $1,500 for common stock shares to be issued in 2014. In the first quarter of 2014, we initiated a capital raise of approximate $500,000, of which $30,000 has been raised as of the date of this report. We are currently in talks with certain revenue-based funding investment groups to raise the balance of this amount.8) The Company is in the process of trying to secure up to $1.5 million in funding pursuant to an EB-5 visa program, which the Company hopes to close in June 2014. The EB-5 program is a program under which foreign nationals loan money to U.S. companies who are creating U.S. jobs. Following the job creation, the foreign lenders receive U.S. "green cards." The Company currently has a letter of intent with a financier for the EB-5 project. The financier has already completed the economic impact analysis for the project, which will be located in Pharr, Texas. The Company will use a portion of any proceeds from this EB-5 program to repay the bridge loan funds it received from the City of Pharr, Texas. Any remaining funds will be used for general working capital purposes, including our anticipated hiring of at least 30 employees in the Pharr, Texas area over the ensuing 24 months, who will office in a recently refurbished leased facility owned by the City of Pharr.9) The Company plans to reduce its research and development expenses in 2014 by approximately $700,000 from the amount it spent in 2013. The Company also expects to collect cash from renewing customers of approximately $1.9 million in 2014, an estimated $800,000 increase over the approximately $1.1 million cash from renewing customers collected in 2013. These two factors have the potential of creating a net positive effect of approximately $1.5 million to the Company's operations. Assuming an equivalency in new orders (sales) in 2014 compared to 2013, and given that the Company used cash from operations of $627,045 in 2013, this potential $1.5 million benefit positions the Company to potentially generate cash from operations during 2014. Moreover, the Company believes that it has the capability to reduce further operating expenses, should circumstances warrant. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Executed contracts yet to be commenced | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,852,000 | 2,913,000 |
Increase (Decrease) in Executed Contracts, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' |
Revenues | 4,725,617 | 3,224,958 | ' | ' | ' | ' | 361,000 | ' | ' | ' | ' | ' | ' | ' |
Estimated Future Sales | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | 2,000,000 | 1,900,000 | ' | ' | ' | ' |
Proceeds from Loans | ' | ' | ' | 475,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected Future Funds Expected from Lender | ' | ' | ' | 375,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Capital Funds Raised | 608,430 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | 346,930 | 1,745,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | 3,469,300 | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Convertible Debt | 260,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | 346,930 | 1,805,685 | ' | ' | 30,000 | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' |
Capital to be Raised | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' |
Projected Increase (Decrease) in Research & Development Expense | -700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Projected Increase (Decrease) in Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' |
Sales Revenue, Services, Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' |
Projected Increase (Decrease) in Operations | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Cash Provided by (Used in) Operating Activities | ($627,045) | ($2,699,449) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTE_2_SUMMARY_OF_SIGNIFICANT_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Number of financial institutions, funds in excess of FDIC limits | 2 | ' |
Allowance for Doubtful Accounts Receivable | $30,000 | $0 |
Depreciation | 35,935 | 36,132 |
Financial Institution #1 [Member] | ' | ' |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Cash, Uninsured Amount | 215,000 | ' |
Financial Institution #2 [Member] | ' | ' |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Cash, Uninsured Amount | $215,000 | ' |
NOTE_2_SUMMARY_OF_SIGNIFICANT_3
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Cash and Cash Equivalents (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Cash and Cash Equivalents [Abstract] | ' | ' | ' |
Cash in bank | $414,001 | $172,443 | ' |
Money market funds | 50 | 2,001 | ' |
Cash and cash equivalents | $414,051 | $174,444 | $1,074,317 |
NOTE_2_SUMMARY_OF_SIGNIFICANT_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Depreciation of Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2013 | |
Computer Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment | '3 years |
Vehicles [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment | '5 years |
Furniture and Fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and Equipment | '5 to 7 years |
NOTE_3_INVENTORY_Details
NOTE 3 - INVENTORY (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 3 - INVENTORY (Details) [Line Items] | ' | ' |
Inventory, Raw Materials, Gross | $0 | 168,511 |
Purchase Commitment, Description | 'The payment terms associated with this purchase order were net 45 days from invoice date; however, the contracted manufacturer agreed to assist the Company by allowing extended payment terms on outstanding or unpaid invoices associated with the first demand purchaser order, but modified the Company's payment terms on the second demand purchase order to a prepayment arrangement or "pay as you go" basis, requiring approximately 50% in prepayments. | ' |
VidTac Systems and Components [Member] | ' | ' |
NOTE 3 - INVENTORY (Details) [Line Items] | ' | ' |
Inventory Related Text | ' | 'The Company's initial demand purchase order was for 500 finished units and, as of December 31, 2012, the Company had taken delivery of approximately 236 finished units. |
Long-term Purchase Commitment, Amount | $1,400,000 | ' |
NOTE_3_INVENTORY_Details_Sched
NOTE 3 - INVENTORY (Details) - Schedule of Inventory (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Inventory [Abstract] | ' | ' |
Raw materials | $0 | $168,511 |
Work-in-process | 0 | 0 |
Finished goods | 357,933 | 168,909 |
Total Inventory | $357,933 | $337,420 |
NOTE_4_SOFTWARE_DEVELOPMENT_CO2
NOTE 4 - SOFTWARE DEVELOPMENT COSTS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 4 - SOFTWARE DEVELOPMENT COSTS (Details) [Line Items] | ' | ' |
Depreciation, Depletion and Amortization | $472,400 | $472,612 |
Software and Software Development Costs [Member] | ' | ' |
NOTE 4 - SOFTWARE DEVELOPMENT COSTS (Details) [Line Items] | ' | ' |
Depreciation, Depletion and Amortization | $436,465 | $436,480 |
NOTE_4_SOFTWARE_DEVELOPMENT_CO3
NOTE 4 - SOFTWARE DEVELOPMENT COSTS (Details) - Schedule of Software Development Costs (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Software Development Costs [Abstract] | ' | ' |
Capitalized software development costs | $2,724,082 | $2,724,082 |
Accumulated amortization | -1,410,803 | -974,338 |
Sub-total | 1,313,279 | 1,749,744 |
Cumulative Impairment charge | -876,808 | -876,808 |
Total | $436,471 | $872,936 |
NOTE_4_SOFTWARE_DEVELOPMENT_CO4
NOTE 4 - SOFTWARE DEVELOPMENT COSTS (Details) - Schedule of Future Amortization Expense (USD $) | Dec. 31, 2013 |
Schedule of Future Amortization Expense [Abstract] | ' |
2014 | $436,471 |
NOTE_5_INCOME_TAXES_Details
NOTE 5 - INCOME TAXES (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
NOTE 5 - INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards | $12,860,000 |
Tax Credit Carryforward, Limitations on Use | 'a cumulative stock ownership change of greater than 50%, as defined, over a three-year period |
Minimum [Member] | ' |
NOTE 5 - INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards, Expiration Date | 31-Dec-29 |
Maximum [Member] | ' |
NOTE 5 - INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards, Expiration Date | 31-Dec-32 |
NOTE_5_INCOME_TAXES_Details_Sc
NOTE 5 - INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carry-forwards | $4,372,400 | $3,206,200 |
Total deferred tax assets | 4,372,400 | 3,206,200 |
Valuation allowance | -4,372,400 | -3,206,200 |
Net deferred tax assets | $0 | $0 |
NOTE_5_INCOME_TAXES_Details_Sc1
NOTE 5 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ' | ' |
Expected federal income tax benefit | ($1,529,500) | ($1,212,400) |
Stock expense | 15,300 | 21,200 |
Stock option and warrant expense | 123,100 | 59,300 |
Other | 224,900 | 26,900 |
Change in valuation allowance | 1,166,200 | 1,105,000 |
Income tax benefit | $0 | $0 |
NOTE_6_NOTES_PAYABLE_Details
NOTE 6 - NOTES PAYABLE (Details) (USD $) | 12 Months Ended | 3 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Notes Payable, Other Payables [Member] | Vehicles [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Immediate Family Member of Management or Principal Owner [Member] | Rocket City Enterprises, Inc. [Member] | Rocket City Enterprises, Inc. [Member] | Insurance Policies and Automobile Loans [Member] | Vehicle Loan [Member] | New Automobiles Bank Note [Member] | New Automobiles Bank Note [Member] | New Automobiles Bank Note 2 [Member] | Note Payable, Individual #1 [Member] | Note Payable, Individual #2 [Member] | Insurance [Member] | Insurance [Member] | |||
Note Payable, Individual #1 [Member] | Related Party Note Payable [Member] | Related Party Note Payable [Member] | Related Party Note Payable [Member] | ||||||||||||||||||
NOTE 6 - NOTES PAYABLE (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Notes Payable | $300,455 | $101,409 | ' | ' | ' | ' | ' | $120,000 | ' | $60,000 | ' | ' | $51,161 | $69,294 | ' | $47,339 | ' | ' | ' | ' | $24,010 |
Number of Vehicles Sold | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Sale of Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | 107,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Bank Debt | 69,294 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | 25,000 | ' | 313,477 | ' | 60,000 | 120,000 | ' | ' | ' | ' | ' | 51,880 | ' | 11,195 | 50,000 | 50,000 | ' | ' |
Debt Instrument, Payment Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'ratable, monthly payments | ' | 'ratable, monthly payments | 'One of the two notes requires repayment upon maturity | 'calls for the same maturity date, provided that the Company must make monthly principal payments beginning in the fourth quarter of 2013 and continuing until the note matures. | ' | ' |
Debt Instrument, Maturity Date, Description | ' | ' | 'April 2015 | '60 days from its issuance | 'one-year or two-year extension | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'five year life | 'five-year bank notes | 'five year life | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | 9.90% | 3.00% | ' | 16.00% | ' | ' | 3.00% | ' | ' | ' | ' | ' | 6.50% | ' | 6.50% | 9.90% | 9.90% | 3.79% | ' |
Debt Instrument, Maturity Date | 31-Mar-14 | ' | ' | ' | ' | 31-May-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Mar-14 | 31-Mar-14 | 30-Nov-14 | ' |
Convertible Notes Payable | 873,263 | 612,731 | ' | ' | 554,163 | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Increase (Decrease), Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,691 | ' | ' | ' | ' | ' |
Proceeds from Notes Payable | 570,621 | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87,688 | ' | ' | ' | ' | ' |
Debt Instrument, Collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'collateralized by the associated automobiles | ' | ' | ' | ' | ' |
Loss Contingency, Damages Sought | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The demand alleged breach of contract and sought repayment of a purported loan in the amount of $200,000, plus interest at 9% per annum | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Damages Sought, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Settlement Agreement, Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Pursuant to the settlement, the Company agreed to pay RCTY an aggregate amount of $130,000, $20,000 of which was paid in early April 2011 with $10,000 to be paid each succeeding calendar month until fully paid. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Damages Awarded, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Damages Paid, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30,000 | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTE_6_NOTES_PAYABLE_Details_S
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Maturity | 31-Mar-14 | ' |
Balance | $519,734 | $249,568 |
Less: Current portion | -412,405 | -180,305 |
Long-term portion | 107,329 | 69,263 |
Bank Note #1 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Collateral | 'Autos | ' |
Interest Rate | 6.75% | ' |
Monthly Payments | 308 | ' |
Maturity | 30-Sep-13 | ' |
Balance | 0 | 1,047 |
Bank Note #2 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Collateral | 'Autos | ' |
Interest Rate | 7.00% | ' |
Monthly Payments | 799 | ' |
Maturity | 30-Nov-14 | ' |
Balance | 0 | 17,140 |
Bank Note #3 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Collateral | 'Autos | ' |
Interest Rate | 6.00% | ' |
Monthly Payments | 468 | ' |
Maturity | 31-Jan-17 | ' |
Balance | 15,749 | 20,256 |
Bank Note #4 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Collateral | 'Autos | ' |
Interest Rate | 6.00% | ' |
Monthly Payments | 406 | ' |
Maturity | 30-Sep-16 | ' |
Balance | 0 | 16,307 |
Bank Note #5 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Collateral | 'Autos | ' |
Interest Rate | 6.00% | ' |
Monthly Payments | 449 | ' |
Maturity | 30-Sep-16 | ' |
Balance | 0 | 18,044 |
Bank Note #6 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Collateral | 'Autos | ' |
Interest Rate | 6.00% | ' |
Monthly Payments | 638 | ' |
Maturity | 30-Sep-16 | ' |
Balance | 0 | 25,354 |
Bank Note #7 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Collateral | 'Autos | ' |
Interest Rate | 6.50% | ' |
Monthly Payments | 1,017 | ' |
Maturity | 30-Jun-18 | ' |
Balance | 47,401 | 0 |
Bank Note #8 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Collateral | 'Autos | ' |
Interest Rate | 6.50% | ' |
Monthly Payments | 220 | ' |
Maturity | 31-Jul-18 | ' |
Balance | 10,392 | 0 |
Insurance [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Interest Rate | 3.79% | ' |
Monthly Payments | 3,093 | ' |
Maturity | 30-Nov-14 | ' |
Balance | 34,069 | 31,420 |
Demand Note #1 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Collateral | 'Inventory | ' |
Interest Rate | 16.00% | ' |
Maturity | 31-May-14 | ' |
Balance | 313,477 | 0 |
Demand Note #2 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Interest Rate | 9.90% | ' |
Maturity | 31-Mar-14 | ' |
Balance | 98,646 | 0 |
Demand Note #3 [Member] | ' | ' |
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ' | ' |
Interest Rate | 3.00% | ' |
Balance | $0 | $120,000 |
NOTE_6_NOTES_PAYABLE_Details_S1
NOTE 6 - NOTES PAYABLE (Details) - Schedule of Maturities of Long-term Debt (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Maturities of Long-term Debt [Abstract] | ' | ' |
2014 | $412,405 | ' |
2015 | 67,277 | ' |
2016 | 18,410 | ' |
2017 | 14,342 | ' |
2018 & thereafter | 7,300 | ' |
Total | $519,734 | $249,568 |
NOTE_7_CONVERTIBLE_NOTES_PAYAB2
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Details) (USD $) | 3 Months Ended | 12 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Principal [Member] | Principal [Member] | Accrued Interest [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Immediate Family Member of Management or Principal Owner [Member] | Immediate Family Member of Management or Principal Owner [Member] | Notes Payable to Individual Investors [Member] | Convertible Note #1 [Member] | Convertible Note #2 [Member] | Debt Maturing First Quarter of 2014 [Member] | ||||
Related Party Convertible Note [Member] | Related Party Convertible Note [Member] | Related Party Note Payable [Member] | Related Party Note Payable [Member] | Related Party Note Payable [Member] | Related Party Convertible Note [Member] | Related Party Note Payable [Member] | |||||||||||||
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | $25,000 | ' | ' | ' | ' | $40,000 | $120,532 | ' | $60,000 | $120,000 | $60,000 | ' | ' | $20,000 | $20,000 | ' |
Proceeds from Related Party Debt | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | 120,000 | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' |
Repayments of Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Payable | ' | 13,989 | 17,461 | ' | ' | ' | ' | ' | ' | ' | 532 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 3.00% | ' | ' | ' | ' | 3.00% | 3.00% | ' | ' | 3.00% | 3.00% | ' | 3.00% | ' | ' | ' |
Debt Instrument, Maturity Date, Description | ' | ' | ' | '60 days from its issuance | 'one-year or two-year extension | ' | ' | ' | ' | 'March 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.10 | ' | $0.10 | ' | $0.10 | ' | ' | ' | $0.10 | $0.10 | ' | ' | ' | $0.10 | ' | ' | $0.10 | $0.10 | ' |
Debt Conversion, Converted Instrument, Amount | 19,100 | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | ' | 191,000 | 2,414,449 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Notes Payable | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Proceeds from Convertible Debt | ' | 260,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' |
Debt Instrument, Maturity Date | ' | 31-Mar-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-May-15 | 30-Jun-16 | ' |
Debt Instrument, Convertible, Terms of Conversion Feature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The convertible note may be converted at the holder's option into shares of the Company's common stock at a conversion price of $0.10 per share. | ' | ' | 'The convertible notes may be converted at the holder's option into shares of the Company's common stock | 'The convertible notes may be converted at the holder's option into shares of the Company's common stock | ' |
Convertible Notes Payable | ' | 873,263 | 612,731 | ' | 554,163 | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | 574,163 |
Debt Conversion, Original Debt, Amount | ' | 19,100 | 241,444 | ' | 20,000 | 259,100 | 240,000 | 1,444 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes Payable, Current | ' | $20,000 | $0 | ' | $554,163 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTE_7_CONVERTIBLE_NOTES_PAYAB3
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Details) - Schedule of Convertible Notes Payable (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Details) - Schedule of Convertible Notes Payable [Line Items] | ' | ' |
Total convertible notes payable | $873,263 | $612,731 |
Less: note conversions | 19,100 | 241,444 |
Convertible notes payable, net | 614,163 | 372,731 |
Less: current portion | 20,000 | 0 |
Convertible notes payable, net, long-term portion | 594,163 | 372,731 |
Principal [Member] | ' | ' |
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Details) - Schedule of Convertible Notes Payable [Line Items] | ' | ' |
Less: note conversions | $259,100 | $240,000 |
NOTE_8_PREFERRED_STOCK_Details
NOTE 8 - PREFERRED STOCK (Details) (USD $) | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | |
Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | ||
Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | |||||||
Warrant Extension [Member] | |||||||||
NOTE 8 - PREFERRED STOCK (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Acquisitions (in Shares) | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' |
Noncash or Part Noncash Acquisition, Interest Acquired | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | ' | 1 | ' | ' | ' | 40 | ' | ' | ' |
Preferred Stock, Voting Rights | ' | 'basis of 750 votes per share | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Private Placement | ' | ' | ' | ' | ' | ' | ' | $50,000 | $1,450,000 |
Unit Description | ' | ' | ' | ' | ' | ' | ' | ' | 'each investor receiving eight warrants to purchase one share of common stock for every share of Series B Preferred Stock purchased |
Unit Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $4 |
Stock Issued During Period, Shares, New Issues (in Shares) | 3,469,300 | ' | ' | ' | 375,000 | ' | ' | ' | ' |
Convertible Preferred Stock, Terms of Conversion | ' | ' | ' | ' | '15,000,000 shares of the Company's common stock | ' | ' | ' | ' |
Class of Warrant or Rights, Granted (in Shares) | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | ' | ' | ' | 0.2 | ' | ' | ' | ' | ' |
Warrants, Description of Exercise Price of Warrants | ' | ' | ' | 'i) stock dividends, stock splits or reverse stock splits; (ii) the payment of dividends on the common stock payable in shares of common stock or securities convertible into common stock; (iii) a recapitalization, reorganization or reclassification involving the common stock, or a consolidation or merger of the Company; or (iv) a liquidation or dissolution of the Company. | ' | ' | ' | ' | ' |
Warrants, Term of Warrants | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Class of Warrant or Rights, Weighted-Average Grant Date, Fair Value (in Dollars per share) | ' | ' | $120,000 | ' | ' | ' | ' | ' | ' |
Preferred Stock, Dividend Payment Terms | ' | ' | ' | ' | ' | 'i) accrues dividends at a rate of 7.0% per annum, payable in preference to the common stock or any other capital stock of the Company, (ii) has a preference in liquidation, or deemed liquidation, to receive the initial investment in the Series B Preferred Stock, plus accrued and unpaid dividends, (iii) is convertible into 40 shares of the Company's common stock, subject to adjustments for issuances by the Company of common stock at less than $0.10 per share, and (iv) has the right to elect one member of the Company's Board of Directors. | ' | ' | ' |
Dividends, Preferred Stock | ' | ' | ' | ' | ' | 105,000 | 105,288 | ' | ' |
Preferred Stock Accretion of Benefincial Conversion Feature | ' | ' | ' | ' | ' | 18,796 | ' | ' | ' |
Dividends Payable | ' | ' | ' | ' | ' | $441,863 | $336,863 | ' | ' |
NOTE_9_COMMON_STOCK_Details
NOTE 9 - COMMON STOCK (Details) (USD $) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Common Stock [Member] | Common Stock [Member] | Private Placement 2013 [Member] | 2012 Private Placement [Member] | 2012 Private Placement [Member] | Common Stock Private Placement [Member] | Stock Issued to Two Service Providers [Member] | Stock Issued to Service Provider #1 [Member] | Stock Issued to Service Provider #2 [Member] | Stock Issued to Two Resellers [Member] | Stock Issued to Prior-Year Investor [Member] | Stock Issued to Two Original Equipment Manufacturers [Member] | OEM Licensing Agreements [Member] | Stock Issued for OEM Credits for Services [Member] | 2011 Private Placements [Member] | |||
Stock Issued to Two Resellers [Member] | |||||||||||||||||
NOTE 9 - COMMON STOCK (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Private Placement (in Dollars) | ' | ' | ' | ' | $346,930 | $7,000 | ' | $1,745,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Investors | ' | ' | ' | ' | 16 | ' | ' | 29 | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Stock Issued During Period, Shares, New Issues | 3,469,300 | ' | 606,848 | 17,450,000 | 3,469,300 | 70,000 | ' | 17,450,000 | ' | ' | ' | ' | 150,000 | ' | 1,640,909 | ' | 600,000 |
Warrants, Term of Warrants | ' | ' | ' | ' | '4 years | ' | '4 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Rights, Granted | ' | ' | ' | ' | 693,860 | 14,000 | ' | 3,490,000 | ' | ' | 1,400 | ' | ' | ' | ' | ' | ' |
Proceeds from Contributed Capital (in Dollars) | 79,000 | 79,000 | ' | ' | 1,500 | 7,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unit Description | ' | ' | ' | ' | ' | ' | ' | 'each investor who purchased the common stock receiving a warrant to purchase one share of common stock for every five shares of common stock purchased by such investor. | ' | ' | ' | ' | ' | ' | ' | ' | 'each investor who purchased the common stock receiving a warrant to purchase one share of common stock for every five shares of common stock purchased by such investor |
Unit Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 |
Stock Issued During Period, Shares, Issued for Services | ' | ' | ' | 27,155 | ' | ' | ' | ' | 27,155 | 20,155 | 7,000 | ' | ' | ' | ' | 143,152 | ' |
Stock Issued During Period, Value, Issued for Services (in Dollars) | ' | 3,189 | ' | 3 | ' | ' | ' | ' | ' | 2,489 | 700 | ' | ' | ' | ' | 14,315 | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | $0.12 | $0.10 | $0.10 | $0.10 | ' | ' | $0.10 | ' |
Share-based Goods and Nonemployee Services Transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'ninety-five percent of the average, daily closing price of the Company's common stock for the month of July 2012 | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Share) | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' | ' | 0.2 | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock (in Dollars) | 346,930 | 1,805,685 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,685 | ' | ' | 165,000 | ' | ' |
Other General and Administrative Expense (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' |
Stock Issued During Period, Shares, Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,784,061 | ' | ' | ' |
Stock Issued During Period, Value, Other (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 179,315 | ' | ' | ' |
Maximum Value of Stock Issued for Licensing Fees (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000 | ' | ' | ' |
Equity Issuance, Per Share Amount, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'higher value of $0.10 per share or the average daily closing price of the stock for a period of ten business days immediately preceding the receipt of payment | ' | ' |
NOTE_10_COMMON_STOCK_TO_BE_ISS2
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | 3,469,300 | ' | ' |
Share-based Compensation | $184,973 | $174,365 | ' |
Common stock to be issued, shares (in Shares) | 15,000 | 70,000 | ' |
Chief Executive Officer [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | ' | 2,000,000 |
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | ' | ' | 2,000,000 |
Stock Issued During Period, Value, Restricted Stock Award, Gross | ' | ' | 180,000 |
Shares Issued, Price Per Share (in Dollars per share) | ' | ' | $0.09 |
Stock Repurchased During Period, Shares (in Shares) | ' | ' | 2,000,000 |
Stock Repurchased During Period, Value | ' | ' | 180,000 |
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | ' | ' | $0.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | ' | ' | 'pro-rata and quarterly over three years. |
Share-based Compensation | 45,000 | 60,000 | ' |
2013 Private Placements [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Proceeds from Issuance of Private Placement | 1,500 | ' | ' |
2012 Private Placement [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Proceeds from Issuance of Private Placement | 7,000 | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | 70,000 | ' | ' |
2011 Private Placements to be Issued in 2012 [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Proceeds from Issuance of Private Placement | ' | 60,000 | ' |
Common stock to be issued, shares (in Shares) | ' | 600,000 | ' |
Stock Issued to Two Original Equipment Manufacturers [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Other (in Shares) | ' | 1,784,061 | ' |
Stock Issued During Period, Value, Other | ' | $179,315 | ' |
NOTE_10_COMMON_STOCK_TO_BE_ISS3
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued [Line Items] | ' | ' |
Number of shares to be issued | 15,000 | 70,000 |
Value of shares to be issued | $1,500 | $7,000 |
Stock Issued for Previous Deposits [Member] | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued [Line Items] | ' | ' |
Number of shares to be issued | 15,000 | 70,000 |
Value of shares to be issued | $1,500 | $7,000 |
NOTE_10_COMMON_STOCK_TO_BE_ISS4
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued (Parentheticals) (Stock Issued for Previous Deposits [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Issued for Previous Deposits [Member] | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued (Parentheticals) [Line Items] | ' | ' |
Per share | $0.10 | $0.10 |
NOTE_11_BASIC_AND_FULLY_DILUTE2
NOTE 11 - BASIC AND FULLY DILUTED LOSS PER SHARE (Details) - Schedule of Anti-Dilutive Common Stock Equivalents | 12 Months Ended | |
Dec. 13, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 45,832,407 | 41,760,619 |
Convertible Debt Securities [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 6,212,191 | 3,755,487 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 11,049,842 | 10,341,982 |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 8,375,000 | 8,815,000 |
Preferred Stock Outstanding [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 15,100,000 | 15,100,000 |
Preferred Stock Dividends [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 5,095,374 | 3,748,150 |
NOTE_12_OUTSTANDING_WARRANTS_D
NOTE 12 - OUTSTANDING WARRANTS (Details) (USD $) | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2009 | |
Monthly Consulting Fee [Member] | 2013 Private Placements [Member] | 2012 Private Placement [Member] | 2012 Private Placement [Member] | Warrant Extension [Member] | Third Party Service Provider [Member] | Advisory Firm Agreement [Member] | Advisory Firm Agreement [Member] | |||
Advisory Firm Agreement [Member] | ||||||||||
NOTE 12 - OUTSTANDING WARRANTS (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Outstanding | ' | ' | ' | 707,860 | 3,490,000 | ' | 3,000,000 | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | ' | ' | ' | 0.1 | 0.1 | ' | ' | 0.1 | ' | 0.1 |
Warrants, Term of Warrants | ' | ' | ' | '4 years | ' | '4 years | '4 years | ' | ' | '7 years |
Class of Warrant or Rights, Weighted-Average Grant Date, Fair Value (in Dollars per share) | ' | ' | ' | ' | ' | ' | $120,000 | ' | ' | ' |
Class of Warrant or Rights, Granted | ' | ' | ' | ' | 14,000 | ' | ' | 1,400 | ' | ' |
Stock Issued During Period, Shares, Issued for Services | ' | ' | ' | ' | ' | ' | ' | 700 | ' | ' |
Other Commitments, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'the Company entered into a twelve-month agreement with an advisory firm to assist the Company in corporate planning, structure and capital resources |
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 |
Share-Based Compensation, to be Issued, Value (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45,000 |
Shares Issued, Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 |
Share-based Compensation (in Dollars) | 184,973 | 174,365 | 3,750 | ' | ' | ' | ' | ' | ' | ' |
Class of Warrants or Rights, To Be Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Class of Warrants or Rights, Value, To Be Issued (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ($131,961) | $131,961 |
NOTE_12_OUTSTANDING_WARRANTS_D1
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Changes in Warrants (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Outstanding | 10,341,982 | 7,130,582 |
Warrants Exercisable | 11,049,842 | 10,341,982 |
Warrants Granted | 707,860 | 3,611,400 |
Cancelled | ' | 0 |
Warrants Expired | 0 | -400,000 |
Warrants Outstanding | 11,049,842 | 10,341,982 |
Weighted average exercise price [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants Outstanding (in Dollars per share) | 0.17 | 0.2 |
Warrants Exercisable (in Dollars per share) | 0.16 | 0.17 |
Warrants Granted (in Dollars) | 0.1 | 0.1 |
Cancelled (in Dollars per share) | ' | 0 |
Warrants Expired (in Dollars per share) | 0 | 0.2 |
Warrants Outstanding (in Dollars per share) | 0.16 | 0.17 |
NOTE_12_OUTSTANDING_WARRANTS_D2
NOTE 12 - OUTSTANDING WARRANTS (Details) - Summary of Outstanding and Exercisable Warrants (USD $) | Dec. 31, 2013 |
Warrant exercise price 0.10 [Member] | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Summary of Outstanding and Exercisable Warrants [Line Items] | ' |
Warrants outstanding | $0.10 |
Warrants outstanding, weighted average remaining contractual life | 4,249,260 |
Weighted oustanding, weighted average exercise price | $0.10 |
Warrants exercisable | 4,249,260 |
Warrants exercisable, weighted average exercise price | '2 years 200 days |
Warrant exercise price 0.20 [Member] | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Summary of Outstanding and Exercisable Warrants [Line Items] | ' |
Warrants outstanding | $0.20 |
Warrants outstanding, weighted average remaining contractual life | 6,800,582 |
Weighted oustanding, weighted average exercise price | $0.20 |
Warrants exercisable | 6,800,582 |
Warrants exercisable, weighted average exercise price | '2 years 6 months |
Warrant Exercise Price 0.10 - 0.20 [Member] | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Summary of Outstanding and Exercisable Warrants [Line Items] | ' |
Warrants outstanding | $0.16 |
Warrants outstanding, weighted average remaining contractual life | 11,049,842 |
Weighted oustanding, weighted average exercise price | $0.16 |
Warrants exercisable | 11,049,842 |
Warrants exercisable, weighted average exercise price | '2 years 189 days |
Minimum [Member] | Warrant exercise price 0.10 [Member] | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Summary of Outstanding and Exercisable Warrants [Line Items] | ' |
Exercise prices | 0.1 |
Minimum [Member] | Warrant exercise price 0.20 [Member] | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Summary of Outstanding and Exercisable Warrants [Line Items] | ' |
Exercise prices | 0.2 |
Minimum [Member] | Warrant Exercise Price 0.10 - 0.20 [Member] | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Summary of Outstanding and Exercisable Warrants [Line Items] | ' |
Exercise prices | 0.1 |
Maximum [Member] | Warrant Exercise Price 0.10 - 0.20 [Member] | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Summary of Outstanding and Exercisable Warrants [Line Items] | ' |
Exercise prices | 0.2 |
NOTE_13_EMPLOYEE_OPTIONS_Detai
NOTE 13 - EMPLOYEE OPTIONS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 13 - EMPLOYEE OPTIONS (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 8,375,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares) | 6,057,494 | ' |
Share-based Compensation | $184,973 | $174,365 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 203,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $41,408 | ' |
2009 Long Term Incentive Plan [Member] | ' | ' |
NOTE 13 - EMPLOYEE OPTIONS (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | 10,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | ' | 'The outstanding options have a term of ten years and vest monthly over five years, quarterly over five years, quarterly over three years or over three years with 33.3% vesting on the one year anniversary date, and the remaining 66.7% vesting quarterly over the remaining two years. |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | ' | 8,375,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares) | ' | 6,057,494 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | ' | $0.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeiture Rate | 23.00% | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '335 days | ' |
NOTE_13_EMPLOYEE_OPTIONS_Detai1
NOTE 13 - EMPLOYEE OPTIONS (Details) - Summary of Stock Option Activity (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
Number of Shares [Member] | Number of Shares [Member] | Weighted average exercise price [Member] | Weighted average exercise price [Member] | Aggregate Intrinsic Value [Member] | Aggregate Intrinsic Value [Member] | Aggregate Intrinsic Value [Member] | Weighted Average Remaining Contractual Life [Member] | Weighted Average Remaining Contractual Life [Member] | ||
NOTE 13 - EMPLOYEE OPTIONS (Details) - Summary of Stock Option Activity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of period (in Shares) | 8,375,000 | 8,815,000 | 7,445,833 | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of period | ' | ' | ' | $0.09 | $0.09 | ' | ' | ' | ' | ' |
Outstanding at beginning of period (in Dollars) | ' | ' | ' | ' | ' | $83,750 | $81,815 | $0 | ' | ' |
Granted (in Shares) | ' | 450,000 | 2,250,000 | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | $0.10 | $0.10 | ' | ' | ' | ' | ' |
Exercised | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' |
Exercised (in Shares) | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Forfeited/ Cancelled (in Shares) | ' | -890,000 | -880,833 | ' | ' | ' | ' | ' | ' | ' |
Forfeited/ Cancelled | ' | ' | ' | $0.08 | $0.09 | ' | ' | ' | ' | ' |
Outstanding at period end (in Shares) | 8,375,000 | 8,375,000 | 8,815,000 | ' | ' | ' | ' | ' | ' | ' |
Outstanding at period end | ' | ' | ' | $0.09 | $0.09 | ' | ' | ' | ' | ' |
Outstanding at period end (in Dollars) | ' | ' | ' | ' | ' | 83,750 | 81,815 | 0 | ' | ' |
Outstanding at period end | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 6 months | '2 years 186 days |
Options vested and exercisable at period end (in Shares) | 6,057,494 | 6,057,494 | 4,162,076 | ' | ' | ' | ' | ' | ' | ' |
Options vested and exercisable at period end | ' | ' | ' | $0.09 | $0.09 | ' | ' | ' | ' | ' |
Options vested and exercisable at period end (in Dollars) | ' | ' | ' | ' | ' | $60,575 | $41,621 | ' | ' | ' |
Options vested and exercisable at period end | ' | ' | ' | ' | ' | ' | ' | ' | '0 years | '0 years |
Weighted average grant-date fair value of options granted during the period | ' | $0.10 | $0.10 | ' | ' | ' | ' | ' | ' | ' |
NOTE_13_EMPLOYEE_OPTIONS_Detai2
NOTE 13 - EMPLOYEE OPTIONS (Details) - Summary of Outstanding and Exercisable Options (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding (in Shares) | 8,375,000 |
Options Exercisable (in Shares) | 6,057,494 |
Options, range of exercise prices $0.00-0.08 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding (in Shares) | 2,500,000 |
Options Outstanding - Weighted Average Remaining Contractual Life | '1 year 9 months |
Options Outstanding - Weighted Average Exercise Price | $0.08 |
Options Exercisable (in Shares) | 2,062,500 |
Options Exercisable - Weighted Average Exercise Price | $0.08 |
Options, range of exercise prices $0.00-0.08 [Member] | Minimum [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | $0 |
Options, range of exercise prices $0.00-0.08 [Member] | Maximum [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | $0.08 |
Options, range of exercise prices $0.09-0.10 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding (in Shares) | 5,875,000 |
Options Outstanding - Weighted Average Remaining Contractual Life | '1 year 153 days |
Options Outstanding - Weighted Average Exercise Price | $0.10 |
Options Exercisable (in Shares) | 3,994,994 |
Options Exercisable - Weighted Average Exercise Price | $0.10 |
Options, range of exercise prices $0.09-0.10 [Member] | Minimum [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | $0.09 |
Options, range of exercise prices $0.09-0.10 [Member] | Maximum [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | $0.10 |
NOTE_13_EMPLOYEE_OPTIONS_Detai3
NOTE 13 - EMPLOYEE OPTIONS (Details) - Summary of Non-vested Shares (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Number of non-vested shares [Member] | ' |
NOTE 13 - EMPLOYEE OPTIONS (Details) - Summary of Non-vested Shares [Line Items] | ' |
Non-vested at January 1, 2013 | 4,652,924 |
Granted | 450,000 |
Forfeited | -890,000 |
Vested | -1,895,418 |
Non-vested | 2,317,506 |
Non-vested weighted average grant-date fair value [Member] | ' |
NOTE 13 - EMPLOYEE OPTIONS (Details) - Summary of Non-vested Shares [Line Items] | ' |
Non-vested at January 1, 2013 | 0.08 |
Granted | 0.09 |
Forfeited | 0.08 |
Vested | 0.08 |
Non-vested | 0.09 |
NOTE_13_EMPLOYEE_OPTIONS_Detai4
NOTE 13 - EMPLOYEE OPTIONS (Details) - Schedule of Stock Option Valuation Assumptions | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Stock Option Valuation Assumptions [Abstract] | ' | ' |
Risk-free interest rate | 1.73% | 1.61% |
Risk-free interest rate | 2.53% | 2.01% |
Expected life | '3 years | '3 years |
Expected volatility | 126.00% | 131.00% |
Expected volatility | 131.00% | 140.00% |
Dividend yield | 0.00% | 0.00% |
NOTE_14_COMMITMENTS_AND_CONTIN2
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2011 | |
Advisory Firm Agreement [Member] | ' | ' |
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Other Commitments, Description | 'engaged the services of an investment advisory firm to provide the Company with non-exclusive investment banking and strategic advisory services, as well as their best efforts to assist the Company in raising capital through a private placement of equity or debt securities. Terms of the executed agreement included an initial services period of five months with a monthly fee of $3,500. Either party may terminate the agreement with a minimum five-day written notice | ' |
Other Commitment | $3,500 | ' |
Other Commitments, Term of Agreement Description | 'required to pay a cash fee equal to five percent of the aggregate amount raised by the Company in the financing transaction. In addition to the fees described above, upon the closing of the financing transaction, the Company is required to issue the advisory firm warrants to purchase five percent of the same class of any equity securities issued in the financing transaction, with an exercise price equal to the issue price in the financing transaction, exercisable for at least two years following the close of the financing transaction. | ' |
Office Lease, Canyon Lake, Texas [Member] | ' | ' |
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Area of Real Estate Property | 3,000 | ' |
Description of Lessee Leasing Arrangements, Operating Leases | 'The rent agreement for the Company's Canyon Lake location, executed in August 2010, provides for two one-year renewal options, at the existing rental rate of $1,500 per month, after which the lease becomes a month-to-month lease. | ' |
Operating Leases, Rent Expense, Minimum Rentals | 1,500 | ' |
Office Lease, Dallas, Texas [Member] | ' | ' |
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Area of Real Estate Property | 7,000 | ' |
Description of Lessee Leasing Arrangements, Operating Leases | 'subject to a thirty-month sublease expiring on August 31, 2015 | ' |
Sub-Lease Agreement for Dallas Facility [Member] | ' | ' |
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Operating Leases, Rent Expense, Minimum Rentals | 7,502 | 7,489 |
Description of Lessor Leasing Arrangements, Operating Leases | 'The sublease for the new Dallas area facility is for 30 months, effective March 1, 2013 and calls for monthly lease payments of $7,502, with the first month's rent being waived | 'executed a sub-lease agreement for the Dallas area facility in March 2011, with occupancy effective April 1, 2011. The sublease agreement had a 23 month term, with monthly payments of $7,489 per month, with rent for the first three months being waived |
Operating Leases, Rent Expense, Sublease Rentals | ' | $6,512 |
NOTE_14_COMMITMENTS_AND_CONTIN3
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) - Schedule of Future Minimum Rental Payments for Operating Leases (USD $) | Dec. 31, 2013 |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | ' |
Operating Lease Obligations | $161,156 |
Operating Lease Obligations | 101,141 |
Operating Lease Obligations | $60,015 |
NOTE_15_RELATED_PARTY_TRANSACT1
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Maturity Date | 31-Mar-14 | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | ' | $0.10 | $0.10 |
Number of Notes Payable | ' | 3 | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | 3,469,300 | ' | ' |
Chief Executive Officer [Member] | Convertible Note Payable, August 2013 [Member] | ' | ' | ' |
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | $40,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ' | ' |
Debt Instrument, Maturity Date | 31-Mar-14 | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.10 | ' | ' |
Chief Executive Officer [Member] | Demand Note Payable, November 2013 [Member] | ' | ' | ' |
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | 60,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ' | ' |
Chief Executive Officer [Member] | Convertible Note Payable, November 2013 [Member] | ' | ' | ' |
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | 60,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ' | ' |
Debt Instrument, Maturity Date | 31-Mar-14 | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.10 | ' | ' |
Chief Executive Officer [Member] | Demand Note, December 2012 [Member] | ' | ' | ' |
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | ' | 120,000 | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | 3.00% | ' |
Chief Executive Officer [Member] | Convertible Note Payable, December 2012 [Member] | ' | ' | ' |
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | ' | 120,534 | ' |
Debt Instrument, Maturity Date | ' | 14-Mar-14 | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | ' | $0.10 | ' |
Debt Instrument, Maturity Date, Description | ' | 'one year from its issuance | ' |
Director [Member] | Equity Purchase, September 14, 2012 [Member] | ' | ' | ' |
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | 2,500,000 | ' |
Warrants, Term of Warrants | ' | '4 years | ' |
Class of Warrant or Rights, Granted (in Shares) | ' | 500,000 | ' |
Proceeds from Issuance or Sale of Equity | ' | 250,000 | ' |
Class of Warrant or Right, Outstanding (in Shares) | ' | 500,000 | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Share) | ' | 0.1 | ' |
Director [Member] | Equity Purchase, November 14, 2012 [Member] | ' | ' | ' |
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | 5,000,000 | ' |
Warrants, Term of Warrants | ' | '4 years | ' |
Class of Warrant or Rights, Granted (in Shares) | ' | 1,000,000 | ' |
Proceeds from Issuance or Sale of Equity | ' | 500,000 | ' |
Class of Warrant or Right, Outstanding (in Shares) | ' | 1,000,000 | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Share) | ' | 0.2 | ' |
Director [Member] | ' | ' | ' |
NOTE 15 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' |
Debt Instrument, Face Amount | $313,477 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 16.00% | ' | ' |
Debt Instrument, Maturity Date | 31-May-14 | ' | ' |
Number of Notes Payable | 2 | ' | ' |
NOTE_16_SUBSEQUENT_EVENTS_Deta
NOTE 16 - SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Note Payable, Individual #1 [Member] | ||||
Note Payable, Individual #1 [Member] | Loan from City of Pharr, Texas [Member] | |||||||
NOTE 16 - SUBSEQUENT EVENTS (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes Payable, Current | ' | $20,000 | $0 | ' | ' | ' | $554,163 | ' |
Debt Instrument, Maturity Date | ' | 31-Mar-14 | ' | ' | ' | ' | ' | 31-Mar-14 |
Debt Instrument, Maturity Date, Description | ' | ' | ' | 'April 2015 | 'eighteen-month loan agreement | '60 days from its issuance | 'one-year or two-year extension | ' |
Convertible Notes Payable | ' | 873,263 | 612,731 | ' | ' | ' | 554,163 | ' |
Debt Conversion, Converted Instrument, Amount | 19,100 | ' | ' | ' | ' | ' | 20,000 | ' |
Convertible Debt, Current | ' | ' | ' | ' | ' | ' | 554,163 | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 9.90% | ' | 3.00% | ' | 9.90% |
Debt Instrument, Face Amount | ' | ' | ' | ' | 850,000 | 25,000 | ' | 50,000 |
Proceeds from Loans | ' | ' | ' | ' | 475,000 | ' | ' | ' |
Expected Future Funds Expected from Lender | ' | ' | ' | ' | 375,000 | ' | ' | ' |
Debt Instrument, Collateral | ' | ' | ' | ' | 'collateralization of the Company's accounts receivable, and a provision for the City of Pharr to participate in revenue-sharing at a rate of one-half of one percent of the Company's gross revenue for a designated geographical area, payable on a quarterly basis | ' | ' | ' |
Proceeds from Issuance of Common Stock | ' | 346,930 | 1,805,685 | ' | ' | ' | 30,000 | ' |
Number of Investors | ' | ' | ' | ' | ' | ' | 2 | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | 3,469,300 | ' | ' | ' | ' | 300,000 | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | $0.10 | ' |
Capital to be Raised | ' | ' | ' | ' | ' | ' | $500,000 | ' |