Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 07, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'COPsync, Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 201,552,444 |
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 | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $1,150,421 | $414,051 |
Accounts receivable, net | 236,519 | 101,807 |
Inventories | 284,014 | 357,933 |
Prepaid expenses and other current assets | 101,797 | 116,573 |
Deferred loan costs | 50,000 | 0 |
Total Current Assets | 1,822,751 | 990,364 |
PROPERTY AND EQUIPMENT | ' | ' |
Computer hardware | 70,670 | 68,847 |
Computer software | 36,936 | 36,936 |
Fleet vehicles | 174,094 | 134,987 |
Furniture and fixtures | 10,467 | 7,872 |
Total Property and Equipment | 292,167 | 248,642 |
Less: Accumulated Depreciation | -141,151 | -113,489 |
Net Property and Equipment | 151,016 | 135,153 |
OTHER ASSETS | ' | ' |
Software development costs, net | 109,118 | 436,471 |
Total Other Assets | 109,118 | 436,471 |
TOTAL ASSETS | 2,082,885 | 1,561,988 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 1,081,739 | 1,419,170 |
Deferred revenues | 2,243,537 | 2,878,264 |
Convertible notes payable, current portion | 9,608 | 20,000 |
Three Year, 50% notes payable, net of $0 discount, current portion | 60,750 | 0 |
Notes payable, current portion | 678,986 | 412,405 |
Total Current Liabilities | 4,074,620 | 4,729,839 |
LONG-TERM LIABILITIES | ' | ' |
Deferred revenues | 1,139,862 | 1,052,749 |
Convertible notes payable | 419,178 | 594,163 |
Three Year, 50% notes payable, net of $181,385 discount, non-current portion | 365,365 | 0 |
Notes payable, non-current portion | 538,752 | 107,329 |
Total Long-Term Liabilities | 2,463,157 | 1,754,241 |
Total Liabilities | 6,537,777 | 6,484,080 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Common stock, par value $0.0001 per share, 500,000,000 shares authorized; 195,162,444 and 175,014,501 issued and outstanding, respectively | 19,515 | 17,501 |
Common stock to be issued, 2,800,000 and 15,000 shares, respectively | 292,000 | 1,500 |
Additional paid-in-capital | 15,928,577 | 13,709,972 |
Accumulated deficit | -20,695,031 | -18,651,112 |
Total Stockholders' Deficit | -4,454,892 | -4,922,092 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 2,082,885 | 1,561,988 |
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 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Other Current Liabilities [Member] | Other Noncurrent Liabilities [Member] | |||
Notes payable | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% |
Notes payable, year | ' | ' | ' | ' | ' | ' | '3 years | '3 years |
Notes payable, discount (in Dollars) | ' | ' | ' | ' | ' | ' | ' | $181,385 |
Preferred stock, par value (in Dollars per share) | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' |
Preferred stock, shares authorized | ' | ' | 1,000,000 | 1,000,000 | 375,000 | 375,000 | ' | ' |
Preferred stock, shares issued | ' | ' | 100,000 | 100,000 | 375,000 | 375,000 | ' | ' |
Preferred stock, shares outstanding | ' | ' | 100,000 | 100,000 | 375,000 | 375,000 | ' | ' |
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 | 195,162,444 | 175,014,501 | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 195,162,444 | 175,014,501 | ' | ' | ' | ' | ' | ' |
Common stock to be issued | 2,800,000 | 15,000 | ' | ' | ' | ' | ' | ' |
Condensed_Statements_of_Operat
Condensed Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
REVENUES | ' | ' | ' | ' |
Hardware, installation and other revenues | $600,843 | $724,728 | $2,440,690 | $1,931,748 |
Software license/subscription revenues | 701,424 | 487,413 | 1,928,988 | 1,301,369 |
Total Revenues | 1,302,267 | 1,212,141 | 4,369,678 | 3,233,117 |
COST OF REVENUES | ' | ' | ' | ' |
Hardware and other costs | 411,486 | 655,491 | 1,908,754 | 1,572,427 |
Software license/subscriptions | 243,482 | 307,383 | 708,641 | 762,058 |
Total Cost of Revenues | 654,968 | 962,874 | 2,617,395 | 2,334,485 |
GROSS PROFIT | 647,299 | 249,267 | 1,752,283 | 898,632 |
OPERATING EXPENSES | ' | ' | ' | ' |
Research and development | 499,934 | 515,533 | 1,458,605 | 1,544,682 |
Sales and marketing | 398,607 | 303,191 | 1,047,608 | 901,471 |
General and administrative | 370,097 | 308,069 | 1,162,580 | 1,033,832 |
Total Operating Expenses | 1,268,638 | 1,126,793 | 3,668,793 | 3,479,985 |
LOSS FROM OPERATIONS | -621,339 | -877,526 | -1,916,510 | -2,581,353 |
OTHER INCOME (EXPENSE) | ' | ' | ' | ' |
Interest income | 0 | 0 | 0 | 6 |
Interest expense | -48,323 | -5,244 | -103,854 | -14,825 |
Gain on asset disposals | 3,754 | 0 | 2,163 | 1,791 |
Total Other Income (Expense) | -44,569 | -5,244 | -101,691 | -13,028 |
NET LOSS BEFORE INCOME TAXES | -665,908 | -882,770 | -2,018,201 | -2,594,381 |
INCOME TAXES | 0 | 0 | 0 | 0 |
NET LOSS | -665,908 | -882,770 | -2,018,201 | -2,594,381 |
Series B preferred stock dividend | 0 | -26,466 | -27,020 | -78,822 |
Accretion of beneficial conversion feature on preferred shares dividends issued in kind | -26,466 | 0 | -51,514 | 0 |
Cost of Series B warrants extension | 0 | -177,000 | 0 | -177,000 |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | ($692,374) | ($1,086,236) | ($2,096,735) | ($2,850,203) |
LOSS PER COMMON SHARE - BASIC & DILUTED (in Dollars per share) | $0 | ($0.01) | ($0.01) | ($0.02) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC & DILUTED (in Shares) | 178,591,334 | 174,772,596 | 177,266,608 | 173,390,024 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss | ($2,018,201) | ($2,594,381) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 361,448 | 353,635 |
Employee stock compensation | 114,651 | 154,591 |
Non-employee warrant compensation | 34,904 | 0 |
Amortization of restricted stock grants | 21,115 | 45,000 |
Capital contributed/co-founders' forfeiture of contractual compensation | 59,250 | 59,250 |
Gain on asset disposals | -2,163 | -1,791 |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable | -134,712 | -55,200 |
Inventories | 73,919 | -43,108 |
Prepaid expenses and other current assets | 70,905 | 19,959 |
Deferred loan costs | -50,000 | 0 |
Deferred revenues | -547,614 | 1,427,806 |
Accounts payable and accrued expenses | -304,183 | 138,379 |
Net Cash Used in Operating Activities | -2,320,681 | -495,860 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Proceeds from asset disposals | 2,500 | 105,400 |
Purchases of property and equipment | -16,640 | -99,470 |
Net Cash (Used in)/Provided by Investing Activities | -14,140 | 5,930 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from notes payable | 760,000 | 163,075 |
Payments on notes payable | -123,619 | -229,473 |
Proceeds from three-year, 50% notes payable | 405,000 | 0 |
Proceeds from convertible notes | 0 | 200,000 |
Proceeds from the issuance of stock for warrant exercises | 24,000 | 0 |
Proceeds from stock deposit for common stock to be issued | 245,500 | 1,500 |
Proceeds from issuance of common stock for cash | 1,760,310 | 346,930 |
Net Cash Provided by Financing Activities | 3,071,191 | 482,032 |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 736,370 | -7,898 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 414,051 | 174,444 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 1,150,421 | 166,546 |
SUPPLEMENTAL DISCLOSURES: | ' | ' |
Cash paid for interest | 36,901 | 10,971 |
Cash paid for income tax | 7,602 | 5,765 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Partial financing associated with the purchase of two fleet vehicles | 49,503 | 0 |
Insurance proceeds applied to outstanding bank loan | 15,854 | 0 |
Financing of prepaid insurance policy | 27,964 | 0 |
Series B Preferred stock dividends | 27,020 | 78,822 |
Cost of Series B warrants extension | 0 | 177,000 |
Accretion of beneficial conversion feature on preferred shares dividends issued in kind | 51,514 | 0 |
Conversion of convertible notes | 140,484 | ' |
Stock Issued for Services [Member] | ' | ' |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Stock issued | 60,000 | 0 |
Stock Issued for Prior Subscriptions [Member] | ' | ' |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Stock issued | 0 | 7,000 |
Convertible Notes and Accrued Interest [Member] | ' | ' |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Conversion of convertible notes | 120,364 | 19,100 |
Convertible Notes [Member] | ' | ' |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Conversion of convertible notes | $65,000 | $0 |
Condensed_Statements_of_Cash_F1
Condensed Statements of Cash Flows (Unaudited) (Parentheticals) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | |
Convertible Notes and Accrued Interest [Member] | Convertible Notes and Accrued Interest [Member] | Convertible Notes [Member] | |
Conversion of convertible notes, shares | 1,204,843 | 191,000 | 450,000 |
NOTE_1_BASIS_OF_FINANCIAL_STAT
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Business Description and Basis of Presentation [Text Block] | ' |
NOTE 1 – BASIS OF FINANCIAL STATEMENT PRESENTATION | |
These interim condensed financial statements of COPsync, Inc. (the "Company") are unaudited, but reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly the financial position of the Company as of September 30, 2014, and its results of operations and cash flows for the three month and nine month periods ended September 30, 2014. Certain information and footnote disclosures normally included in the audited financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Because all the disclosures required by accounting principles generally accepted in the United States are not included, these interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2013. The results for the three month and nine month periods ended September 30, 2014 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2014, or any other period. The year-end condensed balance sheet data as of December 31, 2013, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. | |
NOTE_2_NATURE_OF_ORGANIZATION_
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 2 – NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS | |
The Company sells the COPsync Network service, which is a real-time, in-car information sharing, communication and data interoperability network for law enforcement agencies. The COPsync Network 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 Network 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 COPsync Network 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 the COPsync Network to be “vendor neutral”, meaning it can be used with products and services offered by other law enforcement technology vendors. Additionally, the COPsync Network system architecture is designed to scale nationwide. | |
In addition to the Company’s core COPsync Network service, the Company offers three complementary service/product offerings. These offerings are: COPsync911, an emergency threat notification service; VidTac, an in-vehicle software-driven video camera system for law enforcement and fire departments; and WARRANTsync, a statewide misdemeanor warrant clearing database. | |
The Company 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, for example, 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 a screen icon located on every Windows-based computer or any handheld device 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. | |
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 $9,000 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 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 as new patrol vehicles are placed into service. | |
The WARRANTsync system is designed to be a Texas 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. Following payment, the offender is given a receipt and the transaction is complete. This product could be viewed as an enhancement feature to the core COPsync Network service since all COPsync Network users receive the outstanding Warrant notice. | |
At September 30, 2014, the Company had cash and cash equivalents of $1,150,421, a working capital deficit of $2,251,869 and an accumulated deficit of $20,695,031. In the nine month period ended September 30, 2014, the Company continued the efforts it began in fiscal year 2013 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, including the following: | |
1) The Company had previously anticipated that orders for its products and services would begin to accelerate during the latter part of 2014 as its sales team became more seasoned. The Company now believes the acceleration in orders will be in the first half of 2015. The Company is making readjustments to its sales team in an effort to make it more productive. | |
2) In 2013, the Company introduced the COPsync911 real-time threat alert service, which the Company believes is the only threat alert service of its kind in the United States. The service enables a person (such as a schoolteacher in a school) to instantaneously and silently send emergency alerts directly from any Windows-based computer or any handheld device to local law enforcement officers in their patrol vehicles and the local emergency dispatch center with the mere click of a screen icon. The Company is offering the COPsync911 service in the State of Texas and other selected regions of the United States. In September 2014, the State of New Hampshire announced the launch of a new statewide school safety initiative using the COPsync911 threat alert system to enhance school emergency notification systems throughout the State of New Hampshire. This initiative was achieved through one of the Company’s resellers. The Company expects the pace of COPsync911 sales to accelerate as its sales team and resellers become more familiar with the service and the strategies for selling it. | |
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 practice has helped the Company significantly in managing its working capital. | |
4) A few key vendors continue to offer the Company extended payment terms for its outstanding payables balances. | |
5) In the first quarter of 2014, the Company received a $475,000 loan from the City of Pharr, Texas, as a bridge to an anticipated economic development funding (see section 9 below). | |
6) The Company has raised $2,029,810 in new equity capital in 2014. Additionally, the Company has borrowed $1,165,000 pursuant to various demand notes totaling $760,000 and multiple notes described as three-year, 50% notes totaling $405,000 (see Note 6). | |
7) On October 6, 2014, the Company’s Board of Directors approved a nationwide funding initiative for an additional $750,000. This initiative is to fund a software development effort for feature and function enhancements to enable the COPsync Network and COPsync911 threat alert system more readily to scale nationwide. The Company is currently in discussions with potential investors to raise this amount. The Company anticipates that the investments will be made pursuant to a three-year convertible note, bearing interest at two or three percent annum, which will be convertible into shares of the Company’s stock at prices ranging from $0.22 to $0.25. | |
8) The Company is also seeking a working capital line of credit to fund third party and proprietary equipment purchases from its contract manufacturers. | |
9) The Company is attempting to secure up to $2.0 million in additional funding pursuant to an EB-5 program, which the Company hopes to close in 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 for $1.5 million with a financier for the EB-5 program. The financier has already completed the required 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 a bridge loan from the City of Pharr, if required. Any remaining funds will be used for general working capital purposes to include the Company’s anticipated hiring of at least 30 employees in the Pharr area over the 24 month period after receiving the funding proceeds, who will office in a recently refurbished leased facility owned by the City of Pharr. | |
10) The Company anticipates reducing its research and development expenses in 2014 by approximately $200,000 from the approximate $2,157,000 amount it spent in 2013. Further, the Company believes that it has the capability to further reduce operating expenses, should circumstances warrant doing so. | |
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 service and product 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 and equity financing and other sources outlined above, will be sufficient to fund the Company’s anticipated operations for the next twelve months. | |
NOTE_3_SUMMARY_OF_SIGNIFICANT_
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICES | |
a. Basis of Presentation | |
The accompanying condensed financial statements include the accounts of the Company, are prepared in accordance with accounting principles generally accepted in the United States and are prepared on the accrual method of accounting. | |
There have been no significant changes to the summary of significant accounting policies disclosed in Note 2 to the financial statements as of December 31, 2013 included in the Form 10-K filed on March 31, 2014. | |
b. 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 September 30, 2014, the Company had approximately $923,000 at one financial institution 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. Company has recorded an allowance for doubtful accounts of $50,000 and $30,000 at September 30, 2014 and December 31, 2013, the respectively. | |
NOTE_4_RECENT_ACCOUNTING_STAND
NOTE 4 - RECENT ACCOUNTING STANDARDS AND PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
NOTE 4 – RECENT ACCOUNTING STANDARDS AND PRONOUNCEMENTS | |
The Company has implemented all new accounting pronouncements that are in effect and that may impact its unaudited consolidated financial statements. | |
ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”, was issued in May 2014. ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The Company expects to adopt ASU 2014-09 for the fiscal year ending December 31, 2016 and the Company will continue to assess the impact on its financial statements. | |
NOTE_5_INVENTORY
NOTE 5 - INVENTORY | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
NOTE 5 – INVENTORY | |||||||||
Inventory consisted of the following at September 30, 2014, and December 31, 2013, respectively: | |||||||||
Category | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Raw materials | $ | 32,089 | $ | - | |||||
Work-in-process | - | - | |||||||
Finished goods | 251,925 | 357,933 | |||||||
Total Inventory | $ | 284,014 | $ | 357,933 | |||||
The Company’s inventory includes third-party hardware, which consists of computer laptops, printers and ancillary parts, such as electronic components, connectors, adapters and cables, as well as, our propriety product, VidTac. The third-party hardware is purchased from a few select vendors, whereas the VidTac product is manufactured by a contract manufacturer. | |||||||||
During the nine months period ended September 30, 2014, the Company’s inventories decreased. The decrease in finished goods inventory resulted from the installation during the first nine months of fiscal 2014 of previously-procured and inventoried third-party hardware. The various components of third-party hardware are all considered finished goods because the individual items may be, and are, sold as a package, or on an individual basis, normally at the same pricing. | |||||||||
See Note 3 to the Company’s financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2013 for a discussion involving the Company’s inventory investment recorded in the years ended December 31, 2013 and 2012. | |||||||||
Relative to the VidTac propriety product, in fiscal 2012 the Company selected and entered into a manufacturing agreement with a contract manufacturer to build the new VidTac unit at a contracted price and to the Company’s specifications. The manufacturing agreement calls for the Company to periodically place a demand purchase order for finished units to be manufactured and delivered as finished goods. During the first half of 2014, the Company had been placing small quantity purchase orders with the contract manufacturer, with payment terms consisting of a prepayment arrangement or “pay as you go” basis, requiring approximately 50% in prepayments. Beginning in the third quarter of 2014 the contract manufacturer elected to provide a more favorable payment arrangement consisting of approximately 10% in prepayments and followed by normal payment terms on the balance once the finished product is placed in “finished goods” inventory. | |||||||||
The Company’s purchase orders placed with the contract manufacturer are non-cancellable. However, (1) the Company may change the original requested delivery dates if the Company gives sufficient advance notice to the contract manufacturer, and (2) should the Company elect to cancel the purchase order in total or in part, it would be financially responsible only for any materials that could not be returned by the contract manufacturer to its source suppliers. | |||||||||
At December 31, 2013, the Company reported no raw materials inventory. At September 30, 2014, the Company had $32,089 in raw material pertaining to certain completed, top-level component assemblies not yet incorporated into finished VidTac units. These items will continue to be used in future manufactured VidTac units; thus the Company believes that there is no risk of obsolescence. | |||||||||
NOTE_6_NOTES_PAYABLE_NONCONVER
NOTE 6 - NOTES PAYABLE - (NON-CONVERTIBLE) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
NOTE 6 – NOTES PAYABLE – (NON-CONVERTIBLE) | |||||||||
The Company’s total notes payable at September 30, 2014 was $1,643,852, representing a net increase of $1,124,118 for the nine month period ended September 30, 2014. The following table shows the components of notes payable at September 30, 2014 and December 31, 2013: | |||||||||
September 30, | December 31, | ||||||||
Loan Type (with section note references below) | 2014 | 2013 | |||||||
Bank (1) (8) (9) | $ | 91,124 | $ | 73,542 | |||||
Insurance (3) (9) | 10,315 | 34,069 | |||||||
Three-year, 50% Notes, net of $181,385 discount (6) | 426,115 | - | |||||||
Demand Notes (2) (4) (5) (7) (10) | 1,116,299 | 412,123 | |||||||
Total notes payable | 1,643,853 | 519,734 | |||||||
Less: Current portion | (739,736 | ) | (412,405 | ) | |||||
Long-term portion | $ | 904,117 | $ | 107,329 | |||||
During the nine month period ended September 30, 2014, the Company incurred the following increases in notes payable: | |||||||||
1) Two five-year bank notes, with total principal of $49,503 and an interest rate of 4.0% per annum, for the purchase of three automobiles to be used in sales and operations. | |||||||||
2) The Company received a $475,000 loan from the City of Pharr, Texas. The loan documents have not been finalized at the date of this report, but the note is expected to bear interest at 8.0% per annum. The loan principal amount is expected to be due in full on the earlier to occur of the 18 month anniversary of the loan or the receipt by the Company of an expected $1.5 million in proceeds from an EB-5 visa funding arrangement the Company is pursuing. The loan is expected to be secured by a first priority security interest in the Company’s accounts receivable. The city is expected to also receive a modest percentage of the Company’s revenue, payable quarterly, with respect to contracts for the Company’s products and services with customers located in a specified territory in the southern portion of Texas, for a specified period of time. As of September 30, 2014, the city has not earned any such payments. | |||||||||
3) The Company executed a $27,963 eleven-month note payable pertaining to the Company’s business insurance coverage for inland marine, general and product liability risk exposures. The note calls for monthly payments of principal and has an interest rate of 7.5% per annum. | |||||||||
4) On February 28, 2014, the Company executed a $25,000, sixty-day promissory note payable to its Chief Executive Officer for a loan in the same amount. Interest at 3.0% per annum is due upon maturity of the promissory note. The Company’s Chief Executive Officer has elected to extend the maturity date of this note to December 31, 2014. | |||||||||
5) In September 2013, an individual loaned the Company $50,000 to procure third-party hardware for a new contract. The note matured on March 31, 2014, bore simple interest at a rate of 9.9% per annum, and was payable upon maturity. Prior to the maturity date, the note holder elected to increase the amount of the note payable to $250,000. As a result, the $50,000 note was cancelled and replaced with a new $250,000 unsecured note, which matures on April 15, 2015, and accrues interest at a rate of 12.9% per annum. Payment of the accrued interest is due upon the note’s maturity. Accrued interest on the cancelled note totaled $2,807 and was paid in the second quarter of 2014 | |||||||||
6) In May 2014, eight individuals loaned the Company an aggregate of $405,000 in cash. The resulting promissory notes included the following terms: each note is due thirty-six months from issuance date, contemplates a 50% return by the end of the note term, and requires a specific repayment amount be made by the Company every six months, commencing six months after the note is issued. The aggregate repayment amount of the notes payable is $607,500. The repayment amounts increase on an annual basis throughout the life of the note. The Company is required to repay 10%, 30% and 60% of the aggregate repayment amount in years one, two and three of the notes’ term, respectively. The aggregate discount on the notes, totaling $202,500, was recorded on the Company’s Balance Sheet at the outset as a contra-notes payable, located in long-term liabilities. The discount is amortized ratably over the life of the respective promissory notes and is recorded as interest expense in the Company’s Statement of Operations. Cumulative recorded discount on the notes at September 30, 2014, was $21,115 | |||||||||
7) On July 11, 2014, the Company executed a $60,000, short-term promissory note payable to a third-party financer. The purpose of the note was to assist in the Company’s procurement of its VidTac products. The note matures on April 11, 2015, accrued interest at 15% per annum, and requires an initial monthly payment of interest only in August 2014 of $750, followed by eight monthly principal and interest payments in the amount of $7,027.99, commencing in September 2014 | |||||||||
During the nine month period ended September 30, 2014, the Company recognized the following decreases in notes payable: | |||||||||
8) In the third quarter of 2014, one of the Company’s financed automobiles was involved in an accident, and sustained sufficient damage whereby the insurance company determined the vehicle to be a total loss. The insurance company subsequently issued a payment to the Company in the amount of $15,844 for its loss. The payment was applied in full to the related bank loan | |||||||||
9) During the first nine months of 2014, the Company made principal payments of $74,973, primarily through scheduled monthly payments on notes payable that financed the Company’s business insurance policies and bank notes for automobile loans. | |||||||||
10) Additionally, during the period, the Company paid a maturing loan in the amount of $48,646. The original loan to the Company was made in September 2013 by an individual for the purpose of procuring third-party hardware for a new contract, and consisted of $50,000 in principal, an interest rate of 9.9% per annum, a maturity date in March 2014, and required the Company to make monthly principal and interest payments during the life of the loan to the individual note holder. | |||||||||
In November 2013, the Company executed two short-term notes payable in the aggregate amount of $313,477 with an equipment financing company owned by one of the Company’s outside directors to finance the purchase of certain third-party equipment to be sold by the Company to its contracted customers (see “Demand Notes” in above table). Both notes were scheduled to mature in May 2014, bear interest at 16% per annum, are payable upon maturity, and are collateralized by the third-party equipment being procured. During the second quarter of 2014, the equipment financing company extended the maturity dates of the notes by six months, making the notes due in November 2014. The equipment financing company required the Company to pay the accumulated interest for the original six-month period as a condition to the extension of the maturity date. The Company paid total interest of $23,646 on these notes in the second quarter of 2014. | |||||||||
NOTE_7_CONVERTIBLE_NOTES_PAYAB
NOTE 7 - CONVERTIBLE NOTES PAYABLE | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Convertible Note Payable [Abstract] | ' | ||||||||
Convertible Note Payable [Text Block] | ' | ||||||||
NOTE 7 - CONVERTIBLE NOTES PAYABLE | |||||||||
During the three months ended September 30, 2014, holders of seven convertible notes elected to convert their notes into shares of the Company’s common stock. The total principal amount of the converted notes was $165,377. Accrued and unpaid interest for one convertible note in the amount of $107 was also converted into shares of the Company’s common stock. Accrued and unpaid interest for the other six convertible notes was paid in cash to the note holders in October 2014. As a result of these conversions, the Company issued a total of 1,654,844 shares of its common stock at a conversion price of $0.10 per share pursuant to the terms of the notes, with 1,204,844 of those shares issued in the third quarter of fiscal 2014, and 450,000 shares to be issued in the fourth quarter of fiscal 2014 (See Note 10). | |||||||||
During the first six months of 2014, holders of the Company’s convertible promissory notes representing $554,163 in aggregate principal amount, elected to execute either a one-year or two-year extension of their original notes. As a result of these elections, the Company reclassified the aggregate principal amount of $554,163 from current liabilities to long-term liabilities as of September 30, 2014 and December 31, 2013. | |||||||||
During the first quarter of 2014, the holder of one convertible note elected to convert the note into shares of the Company’s common stock. The total principal amount of the converted note on the date of conversion was $20,000. The Company issued a total of 200,000 shares of its common stock at the conversion price of $0.10 per share pursuant to the terms of the note. | |||||||||
Convertible notes payable at September 30, 2014 and December 31, 2013 are summarized as follows: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Total convertible notes payable | $ | 873,263 | $ | 873,263 | |||||
Less: note conversions | $ | 444,477 | $ | 259,100 | |||||
Convertible notes payable, net | $ | 428,786 | $ | 614,163 | |||||
Less: current portion | $ | 9,608 | $ | 20,000 | |||||
Convertible notes payable, net, long-term portion | $ | 419,178 | $ | 594,163 | |||||
NOTE_8_PREFERRED_STOCK
NOTE 8 - PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2014 | |
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 automatically convert into fully-paid non-assessable shares of common stock, at the then effective conversion rate for the Series A Preferred Stock, 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 and the first quarter of 2010, the Company issued a total of 375,000 shares of its Series B Preferred Stock in a private placement in which the Company raised $1,500,000 in gross proceeds. The 375,000 shares of the Company’s Series B Convertible Preferred Stock are convertible into a total of 15,000,000 shares of the Company’s common stock. | |
The shares of the Company’s Series B Preferred Stock i) accrue 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) have a preference in liquidation, or deemed liquidation, to receive the initial investment in the Series B Preferred Stock, plus accrued and unpaid dividends, prior to the common stock receiving any payments, iii) are convertible into 40 shares of common stock per share, subject to adjustment for issuances, or deemed issuances, by the Company of common stock at less than $0.10 per share, and iv) have the right to elect one member of the Company’s Board of Directors. The Company has recorded $27,020 in accrued dividends and $51,514 in accretion of beneficial conversion feature on the Series B Preferred Stock for the nine-month period ended September 30, 2014, and $52,068 of accrued dividends for the comparable period in 2013. | |
NOTE_9_COMMON_STOCK
NOTE 9 - COMMON STOCK | 9 Months Ended |
Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 9 – COMMON STOCK | |
During the nine month period ended September 30, 2014, the Company issued a total of 18,003,100 shares of common stock, along with warrants to purchase 2,700,620 shares of common stock, to investors for an aggregate cash purchase price of $1,800,310, or $0.10 per share purchased, less $40,000 in related costs. One individual investment for $500,000 was made in September of 2014 in exchange for 5,000,000 shares of common stock and warrants to purchase 1,250,000 shares of common stock. The 5,000,000 shares of common stock were issued in September 2014, but the warrants were not issued until October 2014. The warrants issued with the common stock provide for a four year term, an exercise price of $0.20 per share and an optional, cashless exercise feature (See Note 12). | |
During the nine month period ended September 30, 2014, the Company also issued 600,000 shares of its common stock, and warrants to purchase 120,000 shares of common stock (with an exercise price of $0.10 per share), in exchange for $60,000 of services, $31,835 of which services had been performed at the date of issuance and $28,165 of which had yet to be performed. Those services were subsequently performed. | |
The Company also issued 1,404,844 shares of its common stock upon the conversion of $140,484 in principal and accrued interest of outstanding convertible notes during the period (See Note 7). | |
The Company also issued 140,000 shares of its common stock upon the exercise of outstanding warrants, for an aggregate purchase price of $24,000, during the period (See Note 12). | |
NOTE_10_COMMON_STOCK_TO_BE_ISS
NOTE 10 - COMMON STOCK TO BE ISSUED | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Common Stock To Be Isssued [Abstract] | ' | ||||||||||||||||
Common Stock To Be Isssued [Text Block] | ' | ||||||||||||||||
NOTE 10 – COMMON STOCK TO BE ISSUED | |||||||||||||||||
During 2014, the Company received deposits from investors totaling $221,500 for the purchase of 2,215,000 shares of common stock and warrants to purchase 443,000 shares of common stock. The Company anticipates that all of these shares, except for 65,000 shares to be issued to a single investor for $6,500, will be issued in the fourth quarter of fiscal 2014. The Company anticipates issuing the remaining 65,000 shares in fiscal 2015 pursuant to an agreement between the investor and the Company. The term of the warrants is four years, and the exercise prices range from $0.10 to $0.26 per share. The warrants will have no value assigned to them because the warrants are being issued as a unit with the shares of common stock. This is consistent with the provisions of ASC 718 (See Note 12). | |||||||||||||||||
Also in fiscal 2014, the Company received deposits totaling $24,000 from warrant holders for the purchase of 120,000 shares of common stock. The exercise price of the warrants was $0.20 per share. At the warrant holders’ request, the shares of common stock will not be issued for a period of six months from the date of exercise. | |||||||||||||||||
During the three months ended September 30, 2014, a convertible note holder elected to convert his convertible promissory note in the principal amount of $45,000 into 450,000 shares of common stock at a conversion price of $0.10 per share. The shares will be issued in the fourth quarter of fiscal 2014. | |||||||||||||||||
During fiscal 2013, the Company received a series of small deposits from a single investor totaling $1,500 for the purchase of shares of common stock and warrants to purchase 300 shares of common stock. The Company anticipates that these shares will be issued in fiscal 2015. The term of the warrants is four years, and the exercise price is $0.10 per share. The warrants will have no value assigned to them because the warrants will be issued as a unit with common stock shares. This is consistent with the provisions of ASC 718. | |||||||||||||||||
The following table shows the number of shares and associated common stock values for the common stock to be issued at September 30, 2014 and December 31, 2013. | |||||||||||||||||
At September 30, 2014 | At December 31, 2013 | ||||||||||||||||
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 | 2,800,000 | 292,000 | 15,000 | 1,500 | |||||||||||||
Total number of shares and value | 2,800,000 | $ | 292,000 | 15,000 | $ | 1,500 | |||||||||||
NOTE_11_BASIC_AND_FULLY_DILUTE
NOTE 11 - BASIC AND FULLY DILUTED LOSS PER SHARE | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 upon the weighted average number of shares of common stock outstanding during the period covered by the financial statements. Common stock equivalents that would arise from issuance of shares of common stock to be issued under subscriptions and other obligations of the Company, the exercise of stock options and warrants, conversion of convertible preferred stock and dividends on those shares of preferred stock or the conversion of convertible promissory notes were excluded from the loss per share attributable to common stockholders as their value is anti-dilutive. | |||||||||
The Company's common stock equivalents, at September 30, 2014 and 2013, which are not included in the calculation of fully diluted loss per share because they are anti-dilutive, consisted of the following: | |||||||||
2014 | 2013 | ||||||||
Convertible promissory notes outstanding | 4,417,276 | 5,194,061 | |||||||
Warrants outstanding | 20,393,795 | 11,049,842 | |||||||
Stock options outstanding | 9,914,999 | 8,885,833 | |||||||
Preferred stock outstanding | 15,100,000 | 15,100,000 | |||||||
Common stock to be issued | 2,800,000 | 15,000 | |||||||
Dividends on preferred stock outstanding | 6,168,952 | 4,749,754 | |||||||
Total Common Stock Equivalents | 58,795,022 | 44,994,490 | |||||||
NOTE_12_OUTSTANDING_WARRANTS
NOTE 12 - OUTSTANDING WARRANTS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||||||||||||||
Shareholders' Equity and Share-based Payments [Text Block] | ' | |||||||||||||||||||
NOTE 12 – OUTSTANDING WARRANTS | ||||||||||||||||||||
A summary of the status of the Company’s outstanding warrants, and the changes during the nine-month period ended September 30, 2014, is as follows: | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Weighted | ||||||||||||||||||||
Average | ||||||||||||||||||||
Description | Shares | Exercise Price | ||||||||||||||||||
Outstanding, January 1, 2014 | 11,049,842 | $ | 0.16 | |||||||||||||||||
Granted | 10,078,953 | 0.14 | ||||||||||||||||||
Cancelled/Expired | (475,000 | ) | 0.19 | |||||||||||||||||
Exercised | (260,000 | ) | 0.18 | |||||||||||||||||
Outstanding, September 30, 2014 | 20,393,795 | $ | 0.15 | |||||||||||||||||
Exercisable, September 30, 2014 | 13,538,795 | $ | 0.17 | |||||||||||||||||
Warrant activity during the nine month period ended September 30, 2014, consisted of the following: | ||||||||||||||||||||
1) | The Company issued warrants to purchase 2,700,620 shares of common stock in connection with the issuance of 18,003,100 shares of the Company’s common stock pursuant to new investments, for cash totaling $1,800,310. The term of the warrants is four years from the date of issuance, with a range of exercise prices between $0.10 and $0.41 per share of common stock. | |||||||||||||||||||
2) | During the third quarter of 2014, the Company received deposits from investors totaling $221,500 for the purchase of 2,215,000 shares of common stock and warrants to purchase 443,000 shares of common stock. Most of these warrants will be issued in the fourth quarter of fiscal 2014 (See Note 10). | |||||||||||||||||||
3) | As discussed in Note 9, the Company issued a total of 18,003,100 shares of common stock, along with warrants to purchase 2,700,620 shares of common stock, to investors, for an aggregate cash purchase price of $1,800,310, or $0.10 per share, less $40,000 in related costs. An individual investment of $500,000 contained in the above total was made in September 2014 for 5,000,000 shares of common stock and warrants to purchase 1,250,000 shares of common stock. The 5,000,000 shares of common stock were issued in September 2014 as discussed above, but the warrants were not issued until October 2014. The warrants provide for a four year term, an exercise price of $0.20 per share and an optional cashless exercise feature. | |||||||||||||||||||
4) | The Company issued warrants to purchase an aggregate of 7,258,333 shares of the Company’s common stock, at a price of $0.10 per share, to two outside consultants following their meeting specific performance metrics associated with growing the Company’s book of new business and/or securing additional capital or debt funding. Each warrant specifies the individual tranches related to the specific metrics that must be achieved in order for the underlying shares to become exercisable. The term of the two consulting agreements is five years. No valuation is determined for the respective tranches until the associated performance metric is achieved. Warrants to purchase a total of 503,333 shares of common stock associated with these two agreements became exercisable during the nine-month period ended September 30, 2014 as a result of one warrant holder achieving two specified metrics. The fair value of the exercisable warrants totaled $34,904 and was determined by using the Black Scholes valuation method. This non-cash expense was recorded as general and administrative expense in the Company’s statement of operations. | |||||||||||||||||||
5) | The Company issued four-year warrants to purchase 120,000 shares of the Company’s common stock (with an exercise price of $0.10 per share) in connection with the issuance of 600,000 shares of its common stock in exchange for $60,000 of services, $31,835 of which services had been performed and $28,165 of which had yet to be performed. This non-cash transaction was recorded on the Company’s balance sheet as a debit to accounts payable and accrued expense for $31,835, representing outstanding vendor invoices to be paid, and prepaid expenses for $28,165, representing the value of services to be performed by the vendor. The term of the warrants is four years from date of issuance. Under the provisions of ASC 718, no value was assigned to the warrants granted during the nine month period, thus no additional expense was recorded under the Black-Scholes option pricing model because the warrants were issued as a unit with common stock shares. | |||||||||||||||||||
6) | Warrants to purchase a total of 475,000 shares of common stock, held by two warrant holders, expired during the first nine months of fiscal 2014. | |||||||||||||||||||
7) | In the third quarter of 2014, a number of warrant holders elected to exercise warrants to purchase a total of 260,000 shares of the Company’s common stock at a weighted average exercise price of $0.18 per share of stock, or for a total value of $48,000. The Company issued 140,000 of those shares for an aggregate purchase price of $24,000, during the period (See Note 9). The remaining 120,000 shares of common stock will not be issued for a period of six months from the date of exercise at the request of the two warrant holders. These shares are being reported as an element of common stock to be issued (See Note 10). | |||||||||||||||||||
A summary of the status of the Company’s outstanding warrants, and the changes during the twelve month period ended December 31, 2013, is as follows: | ||||||||||||||||||||
Year 2013 | ||||||||||||||||||||
Weighted | ||||||||||||||||||||
Average | ||||||||||||||||||||
Description | Shares | Exercise Price | ||||||||||||||||||
Outstanding, January 1, 2013 | 10,341,982 | $ | 0.17 | |||||||||||||||||
Granted | 707,860 | $ | 0.1 | |||||||||||||||||
Cancelled | - | - | ||||||||||||||||||
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 the Company’s outstanding and exercisable warrants at September 30, 2014: | ||||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||||
Exercise Prices | Weighted Average Number | Remaining | Weighted Average | Number Exercisable | Weighted Average | |||||||||||||||
Outstanding at 9/30/14 | Life (in yrs.) | Exercise Price | at 9/30/14 | Exercise Price | ||||||||||||||||
0.1 | 11,697,593 | 3.48 | $ | 0.1 | 4,942,593 | $ | 0.1 | |||||||||||||
$ | 0.11 - 0.20 | 6,793,582 | 2.14 | $ | 0.2 | 6,693,582 | $ | 0.2 | ||||||||||||
0.21 - 0.41 | 1,902,620 | 3.92 | 0.28 | 1,902,620 | 0.28 | |||||||||||||||
$ | 0.10 - 0.41 | 20,393,795 | 3.08 | $ | 0.15 | 13,538,795 | $ | 0.17 | ||||||||||||
NOTE_13_EMPLOYEE_OPTIONS
NOTE 13 - EMPLOYEE OPTIONS | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||
NOTE 13 – EMPLOYEE OPTIONS | |||||||||||||||||||||||
As of September 30, 2014, the Company has a stock-based compensation plan, the 2009 Long Term Incentive Plan. | |||||||||||||||||||||||
The 2009 Long Term Incentive Plan was adopted by the Board of Directors on September 2, 2009. Under the 2009 Long Term Incentive Plan, the Company can grant nonqualified options to employees, officers, outside directors and consultants of the Company or incentive stock options to employees of the Company. There are 10,000,000 shares of common stock authorized for issuance under the 2009 Long Term Incentive Plan. In April 2014, the Board of Directors authorized an additional 10,000,000 shares under the 2009 Long Term Incentive Plan, which the Company plans to submit for approval of the Company’s shareholders. The outstanding options have a term of ten years and vest primarily over periods ranging from three to five years. As of September 30, 2014, options to purchase 9,914,999 shares of the Company’s common stock were outstanding under the plan, of which options to purchase 6,788,880 shares were exercisable, with a weighted average exercise price of $0.09 per share. | |||||||||||||||||||||||
Share-based compensation expense is based upon 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. Forfeitures of share-based payment awards are reported when actual forfeiture occurs. | |||||||||||||||||||||||
For the nine months ended September, 2014 and 2013, the Company recorded share-based compensation expense of $114,651 and $154,591, respectively. | |||||||||||||||||||||||
For the nine months ended September 30, 2014, the Company granted options to purchase 1,825,000 shares of its common stock with an exercise price of $0.10 per share. Of the total options granted, options to purchase 75,000 shares were granted to three outside directors, each of whom received a set number of options as part of their annual compensation for serving on the Company’s Board of Directors, and options to purchase 1,750,000 shares were granted to two members of executive management. The total value of these stock options, utilizing the Black Scholes valuation method, was $133,829. The term of the stock options is ten years, with three year vesting, with 33% vesting on the one-year anniversary of the grant date, and the remainder vesting ratably over the next eight quarters. | |||||||||||||||||||||||
The summary activity for the nine months ended September 30, 2014 under the Company’s 2009 Long Term Incentive Plan is as follows: | |||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
Shares | Weighted Average | Aggregate | Weighted Average | ||||||||||||||||||||
Exercise Price | Intrinsic Value | Remaining | |||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||
Outstanding at beginning of period | 8,375,000 | $ | 0.09 | $ | 3,015,000 | ||||||||||||||||||
Granted | 1,825,000 | $ | 0.1 | $ | 638,750 | ||||||||||||||||||
Exercised | – | $ | 0 | $ | – | ||||||||||||||||||
Forfeited/ Cancelled | (285,001 | ) | $ | 0.08 | $ | (105,450 | ) | ||||||||||||||||
Outstanding at period end | 9,914,999 | $ | 0.09 | $ | 3,548,300 | 7.22 | |||||||||||||||||
Options vested and exercisable at period end | 6,788,880 | $ | 0.09 | $ | 2,414,041 | 6.49 | |||||||||||||||||
Weighted average grant-date fair value of options granted during the period | $ | 0.1 | |||||||||||||||||||||
The following table summarizes significant ranges of the Company’s outstanding and exercisable options as of September 30, 2014: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Options Outstanding | Weighted Average | Weighted Average | Number Outstanding | Weighted Average | ||||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||||
Life (in years) | |||||||||||||||||||||||
$ | 0.00 – $0.08 | 2,500,000 | 6.09 | $ | 0.08 | 2,250,000 | $ | 0.08 | |||||||||||||||
$ | 0.09 – $0.10 | 7,414,999 | 6.92 | $ | 0.09 | 4,538,880 | $ | 0.1 | |||||||||||||||
9,914,999 | 6,788,880 | ||||||||||||||||||||||
A summary of the status of the Company’s non-vested option shares as of September 30, 2014 is as follows: | |||||||||||||||||||||||
Non-vested Shares | Shares | Weighted Average | |||||||||||||||||||||
Grant-Date Fair Value | |||||||||||||||||||||||
Non-vested at January 1, 2014 | 2,317,506 | $ | 0.09 | ||||||||||||||||||||
Granted | 1,825,000 | $ | 0.1 | ||||||||||||||||||||
Forfeited | (285,001 | ) | $ | 0.09 | |||||||||||||||||||
Vested | (731,386 | ) | $ | 0.08 | |||||||||||||||||||
Non-vested | 3,126,119 | $ | 0.09 | ||||||||||||||||||||
As of September 30, 2014, there was approximately $249,724 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. The Company expects to recognize the unrecognized compensation cost over a weighted average period of 2.0 years. | |||||||||||||||||||||||
NOTE_14_COMMITMENTS_AND_CONTIN
NOTE 14 - COMMITMENTS AND CONTINGENCIES | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||||||||||||||||
NOTE 14 – COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||
The following table summarizes the Company’s obligations to make future payments pursuant to certain contracts or arrangements as of September 30, 2014, as well as an estimate of the timing in which these obligations are expected to be satisfied | |||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||
Contractual Obligations | Total | 2014 | 2015-2016 | 2017-2018 | After 2018 | ||||||||||||||||
Long-Term Debt Obligations | $ | 2,072,639 | $ | 410,024 | $ | 1,497,796 | $ | 161,664 | $ | 3,155 | |||||||||||
Purchase Obligations | $ | 389,813 | $ | 233,888 | $ | 155,925 | $ | - | $ | - | |||||||||||
Operating Lease Obligations | $ | 82,521 | $ | 22,506 | $ | 60,015 | $ | - | $ | - | |||||||||||
Total Contractual Obligations | $ | 2,544,973 | $ | 666,418 | $ | 1,713,736 | $ | 161,664 | $ | 3,155 | |||||||||||
With regards to purchase obligations above, the Company placed a demand purchase order valued at $433,130 with its VidTac contract manufacturer for finished units to be delivered ratably throughout a ten-month period commencing in September 2014. Only a few finished units were delivered in September because of delays experienced by the contract manufacturer and, as a result, the Company has accelerated the delivery schedule to cover only six months in order to facilitate outstanding customer orders. | |||||||||||||||||||||
The Company’s purchase order placed with the contract manufacturer is non-cancellable in nature; however, there are some relief provisions: (1) the Company may change the original requested delivery dates if it gives sufficient advance notice to the contact manufacturer; and (2) should the Company elect to cancel the purchase order in total or in part, it would only be financially responsible for any materials that could not be returned by the contract manufacturer to its source suppliers. | |||||||||||||||||||||
Contingent Liability | |||||||||||||||||||||
None | |||||||||||||||||||||
Compensation | |||||||||||||||||||||
See ITEM 11, “Executive Compensation”, “Employment Contracts, Termination of Employment and Change in Control”, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, which discusses the employment agreements involving Mr. Russell Chaney and Mr. Shane Rapp, co-founders of the Company. One element contained in those discussions involves the voluntary elections by Mr. Chaney and Mr. Rapp to forego certain specified salary increases until the Company becomes profitable or the Company secures sufficient funding to sustain operations. The value of each person’s foregone salary for each of the nine month periods ended September 30, 2014 and 2013 totaled $30,000 for Mr. Chaney and $29,250 for Mr. Rapp and was recorded as contributed capital in Additional Paid-in Capital on the Company’s Balance Sheet. | |||||||||||||||||||||
Litigation | |||||||||||||||||||||
The Company is not currently involved in any material legal proceedings. From time-to-time the Company anticipates it will be involved in legal proceedings, claims, and litigation arising in the ordinary course of 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 it, the Company’s financial position and prospects could be harmed. | |||||||||||||||||||||
NOTE_15_SUBSEQUENT_EVENTS
NOTE 15 - SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 15 – SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events through the date that the financial statements were available to be issued and found no significant subsequent events that required additional disclosure, other than the following: | |
On October 1, 2014, The Company’s Board of Directors approved a plan to raise an additional $750,000 to fund a software development effort for feature and function enhancements to enable the COPsync Network and COPsync911 threat alert system more readily scalable nationwide. The Company anticipates that the investments will be in the form of a three-year convertible note, with two or three percent interest, and a conversion price range of $0.22 to $0.25 per share of the Company’s common stock. | |
On October 6, 2014, the Company executed an agreement to retain a third party service provider to provide general financial advisory and investment banking services to the Company. Compensation to the third-party service provider includes a non-refundable monthly fee of $5,000 for the term of the agreement, the issuance of 2,375,000 shares of the Company’s common stock as of the execution date of the agreement, and warrants to purchase 200,000 shares of the Company’s common stock, with a five year term, an exercise price of $0.10 per share, and an optional cashless exercise feature. The term of the agreement is six months. Either party may terminate the agreement at any time upon 30 days’ prior written notice to the other party after the six month anniversary of the agreement. | |
On October 1, 2014, the Company issued warrants to purchase 300,000 shares of common stock to a third party service provider, with a five year term, an exercise price of $0.10 per share, and an optional cashless exercise feature. This issuance is in accordance with a corporate advisory agreement executed between the Company and the third-party service provider for business development and corporate advisory services. Compensation to the third-party service provider also includes a monthly fee of $7,500 for the six month term of the agreement. Either party may terminate the agreement at any time upon 10 day written notice to the other party after the six month anniversary of the agreement. | |
NOTE_16_RELATED_PARTY_TRANSACT
NOTE 16 - RELATED PARTY TRANSACTIONS | 9 Months Ended | |
Sep. 30, 2014 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions Disclosure [Text Block] | ' | |
NOTE 16 – RELATED PARTY TRANSACTIONS | ||
Of the Company’s total debt balances, a number of related party debt instruments exist. Those debt instruments executed by the Company are as follows: | ||
1) | A convertible note with the Company’s Chief Executive officer with a face value of $120,534, dated February 7, 2013 and with a maturity date of March 31, 2016. The instrument accrues interest at 3% per annum. | |
2) | A convertible note with the Company’s Chief Executive officer with a face value of $40,000, dated August 12, 2013 and with a maturity date of March 31, 2016. The instrument accrues interest at 3% per annum. | |
3) | A convertible note with the spouse of the Company’s Chief Executive officer with a face value of $60,000, dated November 25, 2013 and with a maturity date of March 31, 2016. The instrument accrues interest at 3% per annum. | |
4) | A non-interest-bearing, non-convertible note with the Company’s Chief Executive officer with a face value of $25,000, dated February 28, 2014. The Company’s Chief Executive Officer has elected to extend the maturity date of this note to December 31, 2014. In October 2014, the Company made a partial repayment of $10,000 on this note. | |
5) | Two non-convertible notes payable in the aggregate amount of $313,477 with an equipment financing company owned by one of the Company’s outside directors to finance the purchase of certain third-party equipment to be sold by the Company to its contracted customers. Both notes were scheduled to mature in May 2014, bear interest at 16% per annum, are payable upon maturity, and are collateralized by the third-party equipment being procured. During the second quarter of 2014, the equipment financing company extended the maturity date of the notes by six months, making the notes due in November 2014. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting [Text Block] | ' |
a. Basis of Presentation | |
The accompanying condensed financial statements include the accounts of the Company, are prepared in accordance with accounting principles generally accepted in the United States and are prepared on the accrual method of accounting. | |
There have been no significant changes to the summary of significant accounting policies disclosed in Note 2 to the financial statements as of December 31, 2013 included in the Form 10-K filed on March 31, 2014. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
b. 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 September 30, 2014, the Company had approximately $923,000 at one financial institution 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. Company has recorded an allowance for doubtful accounts of $50,000 and $30,000 at September 30, 2014 and December 31, 2013, the respectively. |
NOTE_5_INVENTORY_Tables
NOTE 5 - INVENTORY (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | 'Inventory consisted of the following at September 30, 2014, and December 31, 2013, respectively: | ||||||||
Category | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Raw materials | $ | 32,089 | $ | - | |||||
Work-in-process | - | - | |||||||
Finished goods | 251,925 | 357,933 | |||||||
Total Inventory | $ | 284,014 | $ | 357,933 |
NOTE_6_NOTES_PAYABLE_NONCONVER1
NOTE 6 - NOTES PAYABLE - (NON-CONVERTIBLE) (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt [Table Text Block] | 'The Company’s total notes payable at September 30, 2014 was $1,643,852, representing a net increase of $1,124,118 for the nine month period ended September 30, 2014. The following table shows the components of notes payable at September 30, 2014 and December 31, 2013: | ||||||||
September 30, | December 31, | ||||||||
Loan Type (with section note references below) | 2014 | 2013 | |||||||
Bank (1) (8) (9) | $ | 91,124 | $ | 73,542 | |||||
Insurance (3) (9) | 10,315 | 34,069 | |||||||
Three-year, 50% Notes, net of $181,385 discount (6) | 426,115 | - | |||||||
Demand Notes (2) (4) (5) (7) (10) | 1,116,299 | 412,123 | |||||||
Total notes payable | 1,643,853 | 519,734 | |||||||
Less: Current portion | (739,736 | ) | (412,405 | ) | |||||
Long-term portion | $ | 904,117 | $ | 107,329 | |||||
1) Two five-year bank notes, with total principal of $49,503 and an interest rate of 4.0% per annum, for the purchase of three automobiles to be used in sales and operations. | |||||||||
2) The Company received a $475,000 loan from the City of Pharr, Texas. The loan documents have not been finalized at the date of this report, but the note is expected to bear interest at 8.0% per annum. The loan principal amount is expected to be due in full on the earlier to occur of the 18 month anniversary of the loan or the receipt by the Company of an expected $1.5 million in proceeds from an EB-5 visa funding arrangement the Company is pursuing. The loan is expected to be secured by a first priority security interest in the Company’s accounts receivable. The city is expected to also receive a modest percentage of the Company’s revenue, payable quarterly, with respect to contracts for the Company’s products and services with customers located in a specified territory in the southern portion of Texas, for a specified period of time. As of September 30, 2014, the city has not earned any such payments. | |||||||||
3) The Company executed a $27,963 eleven-month note payable pertaining to the Company’s business insurance coverage for inland marine, general and product liability risk exposures. The note calls for monthly payments of principal and has an interest rate of 7.5% per annum. | |||||||||
4) On February 28, 2014, the Company executed a $25,000, sixty-day promissory note payable to its Chief Executive Officer for a loan in the same amount. Interest at 3.0% per annum is due upon maturity of the promissory note. The Company’s Chief Executive Officer has elected to extend the maturity date of this note to December 31, 2014. | |||||||||
5) In September 2013, an individual loaned the Company $50,000 to procure third-party hardware for a new contract. The note matured on March 31, 2014, bore simple interest at a rate of 9.9% per annum, and was payable upon maturity. Prior to the maturity date, the note holder elected to increase the amount of the note payable to $250,000. As a result, the $50,000 note was cancelled and replaced with a new $250,000 unsecured note, which matures on April 15, 2015, and accrues interest at a rate of 12.9% per annum. Payment of the accrued interest is due upon the note’s maturity. Accrued interest on the cancelled note totaled $2,807 and was paid in the second quarter of 2014 | |||||||||
6) In May 2014, eight individuals loaned the Company an aggregate of $405,000 in cash. The resulting promissory notes included the following terms: each note is due thirty-six months from issuance date, contemplates a 50% return by the end of the note term, and requires a specific repayment amount be made by the Company every six months, commencing six months after the note is issued. The aggregate repayment amount of the notes payable is $607,500. The repayment amounts increase on an annual basis throughout the life of the note. The Company is required to repay 10%, 30% and 60% of the aggregate repayment amount in years one, two and three of the notes’ term, respectively. The aggregate discount on the notes, totaling $202,500, was recorded on the Company’s Balance Sheet at the outset as a contra-notes payable, located in long-term liabilities. The discount is amortized ratably over the life of the respective promissory notes and is recorded as interest expense in the Company’s Statement of Operations. Cumulative recorded discount on the notes at September 30, 2014, was $21,115 | |||||||||
7) On July 11, 2014, the Company executed a $60,000, short-term promissory note payable to a third-party financer. The purpose of the note was to assist in the Company’s procurement of its VidTac products. The note matures on April 11, 2015, accrued interest at 15% per annum, and requires an initial monthly payment of interest only in August 2014 of $750, followed by eight monthly principal and interest payments in the amount of $7,027.99, commencing in September 2014 | |||||||||
8) In the third quarter of 2014, one of the Company’s financed automobiles was involved in an accident, and sustained sufficient damage whereby the insurance company determined the vehicle to be a total loss. The insurance company subsequently issued a payment to the Company in the amount of $15,844 for its loss. The payment was applied in full to the related bank loan | |||||||||
9) During the first nine months of 2014, the Company made principal payments of $74,973, primarily through scheduled monthly payments on notes payable that financed the Company’s business insurance policies and bank notes for automobile loans. | |||||||||
10) Additionally, during the period, the Company paid a maturing loan in the amount of $48,646. The original loan to the Company was made in September 2013 by an individual for the purpose of procuring third-party hardware for a new contract, and consisted of $50,000 in principal, an interest rate of 9.9% per annum, a maturity date in March 2014, and required the Company to make monthly principal and interest payments during the life of the loan to the individual note holder. |
NOTE_7_CONVERTIBLE_NOTES_PAYAB1
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Convertible Note Payable [Abstract] | ' | ||||||||
Schedule of Convertible Debt [Table Text Block] | 'Convertible notes payable at September 30, 2014 and December 31, 2013 are summarized as follows: | ||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Total convertible notes payable | $ | 873,263 | $ | 873,263 | |||||
Less: note conversions | $ | 444,477 | $ | 259,100 | |||||
Convertible notes payable, net | $ | 428,786 | $ | 614,163 | |||||
Less: current portion | $ | 9,608 | $ | 20,000 | |||||
Convertible notes payable, net, long-term portion | $ | 419,178 | $ | 594,163 |
NOTE_10_COMMON_STOCK_TO_BE_ISS1
NOTE 10 - COMMON STOCK TO BE ISSUED (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Common Stock To Be Isssued [Abstract] | ' | ||||||||||||||||
Schedule of Common Stock to Be Issued [Table Text Block] | 'The following table shows the number of shares and associated common stock values for the common stock to be issued at September 30, 2014 and December 31, 2013. | ||||||||||||||||
At September 30, 2014 | At December 31, 2013 | ||||||||||||||||
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 | 2,800,000 | 292,000 | 15,000 | 1,500 | |||||||||||||
Total number of shares and value | 2,800,000 | $ | 292,000 | 15,000 | $ | 1,500 |
NOTE_11_BASIC_AND_FULLY_DILUTE1
NOTE 11 - BASIC AND FULLY DILUTED LOSS PER SHARE (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 September 30, 2014 and 2013, which are not included in the calculation of fully diluted loss per share because they are anti-dilutive, consisted of the following: | ||||||||
2014 | 2013 | ||||||||
Convertible promissory notes outstanding | 4,417,276 | 5,194,061 | |||||||
Warrants outstanding | 20,393,795 | 11,049,842 | |||||||
Stock options outstanding | 9,914,999 | 8,885,833 | |||||||
Preferred stock outstanding | 15,100,000 | 15,100,000 | |||||||
Common stock to be issued | 2,800,000 | 15,000 | |||||||
Dividends on preferred stock outstanding | 6,168,952 | 4,749,754 | |||||||
Total Common Stock Equivalents | 58,795,022 | 44,994,490 |
NOTE_12_OUTSTANDING_WARRANTS_T
NOTE 12 - OUTSTANDING WARRANTS (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
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 the nine-month period ended September 30, 2014, is as follows: | |||||||||||||||||||
2014 | ||||||||||||||||||||
Weighted | ||||||||||||||||||||
Average | ||||||||||||||||||||
Description | Shares | Exercise Price | ||||||||||||||||||
Outstanding, January 1, 2014 | 11,049,842 | $ | 0.16 | |||||||||||||||||
Granted | 10,078,953 | 0.14 | ||||||||||||||||||
Cancelled/Expired | (475,000 | ) | 0.19 | |||||||||||||||||
Exercised | (260,000 | ) | 0.18 | |||||||||||||||||
Outstanding, September 30, 2014 | 20,393,795 | $ | 0.15 | |||||||||||||||||
Exercisable, September 30, 2014 | 13,538,795 | $ | 0.17 | |||||||||||||||||
Year 2013 | ||||||||||||||||||||
Weighted | ||||||||||||||||||||
Average | ||||||||||||||||||||
Description | Shares | Exercise Price | ||||||||||||||||||
Outstanding, January 1, 2013 | 10,341,982 | $ | 0.17 | |||||||||||||||||
Granted | 707,860 | $ | 0.1 | |||||||||||||||||
Cancelled | - | - | ||||||||||||||||||
Expired | - | - | ||||||||||||||||||
Outstanding, December 31, 2013 | 11,049,842 | $ | 0.16 | |||||||||||||||||
Exercisable, December 31, 2013 | 11,049,842 | $ | 0.16 | |||||||||||||||||
Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Table Text Block] | 'The following is a summary of the Company’s outstanding and exercisable warrants at September 30, 2014: | |||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||||
Exercise Prices | Weighted Average Number | Remaining | Weighted Average | Number Exercisable | Weighted Average | |||||||||||||||
Outstanding at 9/30/14 | Life (in yrs.) | Exercise Price | at 9/30/14 | Exercise Price | ||||||||||||||||
0.1 | 11,697,593 | 3.48 | $ | 0.1 | 4,942,593 | $ | 0.1 | |||||||||||||
$ | 0.11 - 0.20 | 6,793,582 | 2.14 | $ | 0.2 | 6,693,582 | $ | 0.2 | ||||||||||||
0.21 - 0.41 | 1,902,620 | 3.92 | 0.28 | 1,902,620 | 0.28 | |||||||||||||||
$ | 0.10 - 0.41 | 20,393,795 | 3.08 | $ | 0.15 | 13,538,795 | $ | 0.17 |
NOTE_13_EMPLOYEE_OPTIONS_Table
NOTE 13 - EMPLOYEE OPTIONS (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 'The summary activity for the nine months ended September 30, 2014 under the Company’s 2009 Long Term Incentive Plan is as follows: | ||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
Shares | Weighted Average | Aggregate | Weighted Average | ||||||||||||||||||||
Exercise Price | Intrinsic Value | Remaining | |||||||||||||||||||||
Contractual Life | |||||||||||||||||||||||
Outstanding at beginning of period | 8,375,000 | $ | 0.09 | $ | 3,015,000 | ||||||||||||||||||
Granted | 1,825,000 | $ | 0.1 | $ | 638,750 | ||||||||||||||||||
Exercised | – | $ | 0 | $ | – | ||||||||||||||||||
Forfeited/ Cancelled | (285,001 | ) | $ | 0.08 | $ | (105,450 | ) | ||||||||||||||||
Outstanding at period end | 9,914,999 | $ | 0.09 | $ | 3,548,300 | 7.22 | |||||||||||||||||
Options vested and exercisable at period end | 6,788,880 | $ | 0.09 | $ | 2,414,041 | 6.49 | |||||||||||||||||
Weighted average grant-date fair value of options granted during the period | $ | 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 the Company’s outstanding and exercisable options as of September 30, 2014: | ||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Options Outstanding | Weighted Average | Weighted Average | Number Outstanding | Weighted Average | ||||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||||
Life (in years) | |||||||||||||||||||||||
$ | 0.00 – $0.08 | 2,500,000 | 6.09 | $ | 0.08 | 2,250,000 | $ | 0.08 | |||||||||||||||
$ | 0.09 – $0.10 | 7,414,999 | 6.92 | $ | 0.09 | 4,538,880 | $ | 0.1 | |||||||||||||||
9,914,999 | 6,788,880 | ||||||||||||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | 'A summary of the status of the Company’s non-vested option shares as of September 30, 2014 is as follows: | ||||||||||||||||||||||
Non-vested Shares | Shares | Weighted Average | |||||||||||||||||||||
Grant-Date Fair Value | |||||||||||||||||||||||
Non-vested at January 1, 2014 | 2,317,506 | $ | 0.09 | ||||||||||||||||||||
Granted | 1,825,000 | $ | 0.1 | ||||||||||||||||||||
Forfeited | (285,001 | ) | $ | 0.09 | |||||||||||||||||||
Vested | (731,386 | ) | $ | 0.08 | |||||||||||||||||||
Non-vested | 3,126,119 | $ | 0.09 |
NOTE_14_COMMITMENTS_AND_CONTIN1
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Future Minimum Payments for Contractual Obligations [Table Text Block] | 'The following table summarizes the Company’s obligations to make future payments pursuant to certain contracts or arrangements as of September 30, 2014, as well as an estimate of the timing in which these obligations are expected to be satisfied | ||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||
Contractual Obligations | Total | 2014 | 2015-2016 | 2017-2018 | After 2018 | ||||||||||||||||
Long-Term Debt Obligations | $ | 2,072,639 | $ | 410,024 | $ | 1,497,796 | $ | 161,664 | $ | 3,155 | |||||||||||
Purchase Obligations | $ | 389,813 | $ | 233,888 | $ | 155,925 | $ | - | $ | - | |||||||||||
Operating Lease Obligations | $ | 82,521 | $ | 22,506 | $ | 60,015 | $ | - | $ | - | |||||||||||
Total Contractual Obligations | $ | 2,544,973 | $ | 666,418 | $ | 1,713,736 | $ | 161,664 | $ | 3,155 |
NOTE_2_NATURE_OF_ORGANIZATION_1
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||
31-May-14 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 06, 2014 | Oct. 06, 2014 | Nov. 13, 2014 | Oct. 06, 2014 | Oct. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | COPSync911 [Member] | VidTac Systems and Components [Member] | EB-5 Visa Program [Member] | Loans Payable [Member] | ||||||||
Convertible Debt [Member] | Convertible Debt [Member] | |||||||||||||||
Minimum [Member] | Maximum [Member] | |||||||||||||||
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Company 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, for example, 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 a screen icon located on every Windows-based computer or any handheld device 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. | '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 $9,000 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 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 as new patrol vehicles are placed into service. | ' | ' |
Cash and Cash Equivalents, at Carrying Value | ' | $1,150,421 | $166,546 | $1,150,421 | $166,546 | $414,051 | $174,444 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working Capital (Deficit) | ' | -2,251,869 | ' | -2,251,869 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | ' | -20,695,031 | ' | -20,695,031 | ' | -18,651,112 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization, Liquidity and Management Plans, Description | ' | ' | ' | '1) The Company had previously anticipated that orders for its products and services would begin to accelerate during the latter part of 2014 as its sales team became more seasoned. The Company now believes the acceleration in orders will be in the first half of 2015. The Company is making readjustments to its sales team in an effort to make it more productive.2) In 2013, the Company introduced the COPsync911 real-time threat alert service, which the Company believes is the only threat alert service of its kind in the United States. The service enables a person (such as a schoolteacher in a school) to instantaneously and silently send emergency alerts directly from any Windows-based computer or any handheld device to local law enforcement officers in their patrol vehicles and the local emergency dispatch center with the mere click of a screen icon. The Company is offering the COPsync911 service in the State of Texas and other selected regions of the United States. In September 2014, the State of New Hampshire announced the launch of a new statewide school safety initiative using the COPsync911 threat alert system to enhance school emergency notification systems throughout the State of New Hampshire. This initiative was achieved through one of the Company’s resellers. The Company expects the pace of COPsync911 sales to accelerate as its sales team and resellers become more familiar with the service and the strategies for selling it.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 practice has helped the Company significantly in managing its working capital.4) A few key vendors continue to offer the Company extended payment terms for its outstanding payables balances.5) In the first quarter of 2014, the Company received a $475,000 loan from the City of Pharr, Texas, as a bridge to an anticipated economic development funding (see section 9 below).6) The Company has raised $2,029,810 in new equity capital in 2014. Additionally, the Company has borrowed $1,165,000 pursuant to various demand notes totaling $760,000 and multiple notes described as three-year, 50% notes totaling $405,000 (see Note 6).7) On October 6, 2014, the Company’s Board of Directors approved a nationwide funding initiative for an additional $750,000. This initiative is to fund a software development effort for feature and function enhancements to enable the COPsync Network and COPsync911 threat alert system more readily to scale nationwide. The Company is currently in discussions with potential investors to raise this amount. The Company anticipates that the investments will be made pursuant to a three-year convertible note, bearing interest at two or three percent annum, which will be convertible into shares of the Company’s stock at prices ranging from $0.22 to $0.25.8) The Company is also seeking a working capital line of credit to fund third party and proprietary equipment purchases from its contract manufacturers.9) The Company is attempting to secure up to $2.0 million in additional funding pursuant to an EB-5 program, which the Company hopes to close in 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 for $1.5 million with a financier for the EB-5 program. The financier has already completed the required 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 a bridge loan from the City of Pharr, if required. Any remaining funds will be used for general working capital purposes to include the Company’s anticipated hiring of at least 30 employees in the Pharr area over the 24 month period after receiving the funding proceeds, who will office in a recently refurbished leased facility owned by the City of Pharr.10) The Company anticipates reducing its research and development expenses in 2014 by approximately $200,000 from the approximate $2,157,000 amount it spent in 2013. Further, the Company believes that it has the capability to further reduce operating expenses, should circumstances warrant doing so. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 475,000 |
Proceeds from Issuance of Private Placement | ' | ' | ' | 2,029,810 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Long-term Debt | ' | ' | ' | 1,165,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Notes Payable | ' | ' | ' | 760,000 | 163,075 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Other Debt | 405,000 | ' | ' | 405,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital to be Raised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000 | 750,000 | ' | ' | 2,000,000 | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | 2.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.22 | $0.25 | $0.10 | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' |
Estimated Increase (Decrease) in Research and Development Expenses | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and Development Expense | ' | $499,934 | $515,533 | $1,458,605 | $1,544,682 | $2,157,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTE_3_SUMMARY_OF_SIGNIFICANT_1
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' | ' |
Cash, Uninsured Amount | $923,000 | ' |
Allowance for Doubtful Accounts Receivable | $50,000 | $30,000 |
NOTE_5_INVENTORY_Details
NOTE 5 - INVENTORY (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 |
VidTac Systems and Components [Member] | VidTac Systems and Components [Member] | |||
NOTE 5 - INVENTORY (Details) [Line Items] | ' | ' | ' | ' |
Inventory Related Text | ' | ' | 'Beginning in the third quarter of 2014 the contract manufacturer elected to provide a more favorable payment arrangement consisting of approximately 10% in prepayments and followed by normal payment terms on the balance once the finished product is placed in “finished goods” inventory. | 'During the first half of 2014, the Company had been placing small quantity purchase orders with the contract manufacturer, with payment terms consisting of a prepayment arrangement or “pay as you go” basis, requiring approximately 50% in prepayments. |
Inventory, Raw Materials, Gross | $32,089 | $0 | ' | ' |
NOTE_5_INVENTORY_Details_Sched
NOTE 5 - INVENTORY (Details) - Schedule of Inventory (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Inventory [Abstract] | ' | ' |
Raw materials | $32,089 | $0 |
Work-in-process | 0 | 0 |
Finished goods | 251,925 | 357,933 |
Total Inventory | $284,014 | $357,933 |
NOTE_6_NOTES_PAYABLE_NONCONVER2
NOTE 6 - NOTES PAYABLE - (NON-CONVERTIBLE) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||
31-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2014 | Nov. 25, 2013 | Aug. 12, 2013 | Feb. 07, 2013 | Feb. 28, 2014 | Nov. 25, 2013 | Aug. 12, 2013 | Feb. 07, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Jul. 11, 2014 | 31-May-14 | Sep. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Jul. 11, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Vehicles [Member] | Vehicles [Member] | Equipment [Member] | Equipment [Member] | Loans Payable [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Loan from City of Pharr, Texas [Member] | |||||
Notes Payable, Other Payables [Member] | Notes Payable to Banks [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | |||||||||||||||||||||||
NOTE 6 - NOTES PAYABLE - (NON-CONVERTIBLE) (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable | ' | $1,643,852 | $1,643,852 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Notes Payable, Current | ' | ' | 1,124,118 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '11 months | ' | '36 months | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | 60,000 | 40,000 | 120,534 | ' | 49,503 | 313,477 | ' | 27,963 | ' | 607,500 | 50,000 | 250,000 | ' | ' | ' | ' | 475,000 |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | 3.00% | 3.00% | ' | 4.00% | 16.00% | ' | 7.50% | ' | 50.00% | 9.90% | ' | ' | ' | 15.00% | 12.90% | 8.00% |
Number of Automobiles Financed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The loan principal amount is expected to be due in full on the earlier to occur of the 18 month anniversary of the loan or the receipt by the Company of an expected $1.5 million in proceeds from an EB-5 visa funding arrangement the Company is pursuing. The loan is expected to be secured by a first priority security interest in the Company’s accounts receivable. The city is expected to also receive a modest percentage of the Company’s revenue, payable quarterly, with respect to contracts for the Company’s products and services with customers located in a specified territory in the southern portion of Texas, for a specified period of time. |
Debt Instrument, Maturity Date | ' | ' | ' | ' | 31-Dec-14 | 31-Mar-16 | 31-Mar-16 | 31-Mar-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Mar-14 | 15-Apr-15 | ' | ' | ' | ' | ' |
Debt Instrument, Increase (Decrease), Other, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' |
Extinguishment of Debt, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' |
Interest Paid | ' | ' | 36,901 | 10,971 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,646 | ' | ' | ' | ' | ' | 2,807 | ' | ' | ' | ' |
Number of Notes Payable | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Other Debt | 405,000 | ' | 405,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Frequency of Periodic Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'requires a specific repayment amount be made by the Company every six months, commencing six months after the note is issued | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Payment Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'required to repay 10%, 30% and 60% of the aggregate repayment amount in years one, two and three of the notes’ term, respectively | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 202,500 | ' | ' | ' | 21,115 | ' | ' | ' |
Proceeds from Notes Payable | ' | ' | 760,000 | 163,075 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Periodic Payment, Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Periodic Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,027.99 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Insurance Settlement, Investing Activities | ' | 15,844 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Notes Payable | ' | ' | $123,619 | $229,473 | ' | ' | ' | ' | ' | ' | ' | ' | $74,973 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $48,646 | ' | ' | ' |
Debt Instrument, Maturity Date, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'May 2014 | 'November 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTE_6_NOTES_PAYABLE_NONCONVER3
NOTE 6 - NOTES PAYABLE - (NON-CONVERTIBLE) (Details) - Schedule of Debt (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
NOTE 6 - NOTES PAYABLE - (NON-CONVERTIBLE) (Details) - Schedule of Debt [Line Items] | ' | ' | ||
Bank (1) (8) (9) | $91,124 | [1],[2],[3] | $73,542 | [1],[2],[3] |
Insurance (3) (9) | 10,315 | [3],[4] | 34,069 | [3],[4] |
Three-year, 50% Notes, net of $181,385 discount (6) | 426,115 | [5] | 0 | |
Demand Notes (2) (4) (5) (7) (10) | 1,116,299 | [10],[6],[7],[8],[9] | 412,123 | [10],[6],[7],[8],[9] |
Total notes payable | 1,643,853 | 519,734 | ||
Less: Current portion | -739,736 | -412,405 | ||
Long-term portion | $904,117 | $107,329 | ||
[1] | Two five-year bank notes, with total principal of $49,503 and an interest rate of 4.0% per annum, for the purchase of three automobiles to be used in sales and operations. | |||
[2] | In the third quarter of 2014, one of the Company's financed automobiles was involved in an accident, and sustained sufficient damage whereby the insurance company determined the vehicle to be a total loss. The insurance company subsequently issued a payment to the Company in the amount of $15,844 for its loss. The payment was applied in full to the related bank loan | |||
[3] | During the first nine months of 2014, the Company made principal payments of $74,973, primarily through scheduled monthly payments on notes payable that financed the Company's business insurance policies and bank notes for automobile loans. | |||
[4] | The Company executed a $27,963 eleven-month note payable pertaining to the Company's business insurance coverage for inland marine, general and product liability risk exposures. The note calls for monthly payments of principal and has an interest rate of 7.5% per annum. | |||
[5] | In May 2014, eight individuals loaned the Company an aggregate of $405,000 in cash. The resulting promissory notes included the following terms: each note is due thirty-six months from issuance date, contemplates a 50% return by the end of the note term, and requires a specific repayment amount be made by the Company every six months, commencing six months after the note is issued. The aggregate repayment amount of the notes payable is $607,500. The repayment amounts increase on an annual basis throughout the life of the note. The Company is required to repay 10%, 30% and 60% of the aggregate repayment amount in years one, two and three of the notes' term, respectively. The aggregate discount on the notes, totaling $202,500, was recorded on the Company's Balance Sheet at the outset as a contra-notes payable, located in long-term liabilities. The discount is amortized ratably over the life of the respective promissory notes and is recorded as interest expense in the Company's Statement of Operations. Cumulative recorded discount on the notes at September 30, 2014, was $21,115 | |||
[6] | The Company received a $475,000 loan from the City of Pharr, Texas. The loan documents have not been finalized at the date of this report, but the note is expected to bear interest at 8.0% per annum. The loan principal amount is expected to be due in full on the earlier to occur of the 18 month anniversary of the loan or the receipt by the Company of an expected $1.5 million in proceeds from an EB-5 visa funding arrangement the Company is pursuing. The loan is expected to be secured by a first priority security interest in the Company's accounts receivable. The city is expected to also receive a modest percentage of the Company's revenue, payable quarterly, with respect to contracts for the Company's products and services with customers located in a specified territory in the southern portion of Texas, for a specified period of time. As of September 30, 2014, the city has not earned any such payments. | |||
[7] | On February 28, 2014, the Company executed a $25,000, sixty-day promissory note payable to its Chief Executive Officer for a loan in the same amount. Interest at 3.0% per annum is due upon maturity of the promissory note. The Company's Chief Executive Officer has elected to extend the maturity date of this note to December 31, 2014. | |||
[8] | In September 2013, an individual loaned the Company $50,000 to procure third-party hardware for a new contract. The note matured on March 31, 2014, bore simple interest at a rate of 9.9% per annum, and was payable upon maturity. Prior to the maturity date, the note holder elected to increase the amount of the note payable to $250,000. As a result, the $50,000 note was cancelled and replaced with a new $250,000 unsecured note, which matures on April 15, 2015, and accrues interest at a rate of 12.9% per annum. Payment of the accrued interest is due upon the note's maturity. Accrued interest on the cancelled note totaled $2,807 and was paid in the second quarter of 2014 | |||
[9] | On July 11, 2014, the Company executed a $60,000, short-term promissory note payable to a third-party financer. The purpose of the note was to assist in the Company's procurement of its VidTac products. The note matures on April 11, 2015, accrued interest at 15% per annum, and requires an initial monthly payment of interest only in August 2014 of $750, followed by eight monthly principal and interest payments in the amount of $7,027.99, commencing in September 2014 | |||
[10] | Additionally, during the period, the Company paid a maturing loan in the amount of $48,646. The original loan to the Company was made in September 2013 by an individual for the purpose of procuring third-party hardware for a new contract, and consisted of $50,000 in principal, an interest rate of 9.9% per annum, a maturity date in March 2014, and required the Company to make monthly principal and interest payments during the life of the loan to the individual note holder. |
NOTE_6_NOTES_PAYABLE_NONCONVER4
NOTE 6 - NOTES PAYABLE - (NON-CONVERTIBLE) (Details) - Schedule of Debt (Parentheticals) (Medium-term Notes [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Medium-term Notes [Member] | ' |
NOTE 6 - NOTES PAYABLE - (NON-CONVERTIBLE) (Details) - Schedule of Debt (Parentheticals) [Line Items] | ' |
Notes | '3 years |
Notes | 50.00% |
Notes, discount | $181,385 |
NOTE_7_CONVERTIBLE_NOTES_PAYAB2
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 4 Months Ended | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 11, 2014 | Nov. 13, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Principal [Member] | Interest [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | |||
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Notes Payable | 7 | ' | ' | ' | ' | ' | 1 | ' | ' | ' |
Debt Conversion, Original Debt, Amount | ' | $140,484 | $165,377 | $107 | ' | ' | $20,000 | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 1,204,844 | 1,404,844 | ' | ' | 450,000 | 1,654,844 | 200,000 | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' |
Convertible Debt | ' | ' | ' | ' | ' | ' | ' | 554,163 | ' | ' |
Debt Instrument, Description | ' | ' | ' | ' | ' | ' | ' | 'elected to execute either a one-year or two-year extension of their original notes | ' | ' |
Convertible Debt, Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | $554,163 | $554,163 |
Shares Issued, Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' |
NOTE_7_CONVERTIBLE_NOTES_PAYAB3
NOTE 7 - CONVERTIBLE NOTES PAYABLE (Details) - Schedule of Convertible Notes Payable (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Convertible Notes Payable [Abstract] | ' | ' |
Total convertible notes payable | $873,263 | $873,263 |
Less: note conversions | 444,477 | 259,100 |
Convertible notes payable, net | 428,786 | 614,163 |
Less: current portion | 9,608 | 20,000 |
Convertible notes payable, net, long-term portion | $419,178 | $594,163 |
NOTE_8_PREFERRED_STOCK_Details
NOTE 8 - PREFERRED STOCK (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 15 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2008 | Sep. 30, 2014 | Mar. 31, 2010 | |
Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [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 | ' | ' |
Preferred Stock, Voting Rights | ' | ' | ' | ' | 'basis of 750 votes per share | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | ' | ' | ' | ' | ' | 375,000 |
Proceeds from Issuance of Private Placement | ' | ' | $2,029,810 | ' | ' | ' | $1,500,000 |
Convertible Preferred Stock, Terms of Conversion | ' | ' | ' | ' | ' | ' | 'convertible into a total of 15,000,000 shares of the Company’s common stock |
Preferred Stock, Dividend Payment Terms | ' | ' | ' | ' | ' | ' | 'i) accrue 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) have a preference in liquidation, or deemed liquidation, to receive the initial investment in the Series B Preferred Stock, plus accrued and unpaid dividends, prior to the common stock receiving any payments, iii) are convertible into 40 shares of common stock per share, subject to adjustment for issuances, or deemed issuances, by the Company of common stock at less than $0.10 per share, and iv) have the right to elect one member of the Company’s Board of Directors. |
Dividends, Preferred Stock | ' | ' | ' | 52,068 | ' | 27,020 | ' |
Preferred Stock, Accretion of Redemption Discount | $26,466 | $0 | $51,514 | $0 | ' | ' | ' |
NOTE_9_COMMON_STOCK_Details
NOTE 9 - COMMON STOCK (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 4 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Sep. 30, 2014 | Nov. 11, 2014 | Nov. 13, 2014 | |
Equity Issued for Cash [Member] | Equity Issued for Cash [Member] | Equity Issued for Cash [Member] | Equity Issued for Services [Member] | Equity Issued for Services [Member] | Equity Issued for Services [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||||
NOTE 9 - COMMON STOCK (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | ' | ' | ' | ' | 5,000,000 | 18,003,100 | ' | ' | ' | ' | ' |
Class of Warrant or Rights, Granted (in Shares) | ' | 10,078,953 | ' | 707,860 | 1,250,000 | ' | 2,700,620 | 300,000 | ' | 120,000 | ' | ' |
Proceeds from Issuance or Sale of Equity | ' | ' | ' | ' | ' | $500,000 | $1,800,310 | ' | ' | ' | ' | ' |
Sale of Stock, Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | $0.10 | $0.10 | ' | ' | ' | ' | ' |
Payments of Stock Issuance Costs | ' | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' |
Warrants, Term of Warrants | ' | ' | ' | ' | '4 years | ' | '4 years | '5 years | ' | '4 years | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | ' | ' | ' | $0.20 | ' | ' | ' | $0.10 | $0.10 | ' | ' |
Stock Issued During Period, Value, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' |
Stock Issued During Period, Value, Issued for Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,835 | ' | ' |
Non-Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,165 | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | 1,204,844 | 1,404,844 | ' | ' | ' | ' | ' | ' | ' | ' | 450,000 | 1,654,844 |
Debt Conversion, Original Debt, Amount | ' | 140,484 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares) | ' | 140,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Warrant Exercises | ' | $24,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTE_10_COMMON_STOCK_TO_BE_ISS2
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Common stock to be issued, shares | 2,800,000 | 2,800,000 | 15,000 |
Warrants to be Issued | 120,000 | 120,000 | ' |
Common stock to be issued (in Dollars) | $292,000 | $292,000 | $1,500 |
Class of Warrant or Rights, Granted | ' | 10,078,953 | 707,860 |
Debt Conversion, Original Debt, Amount (in Dollars) | ' | 140,484 | ' |
Debt Conversion, Converted Instrument, Shares Issued | 1,204,844 | 1,404,844 | ' |
Proceeds from Issuance of Private Placement (in Dollars) | ' | 2,029,810 | ' |
Common stock to be issued [Member] | Convertible Notes Payable [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Debt Conversion, Original Debt, Amount (in Dollars) | ' | 45,000 | ' |
Debt Conversion, Converted Instrument, Shares Issued | ' | 450,000 | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.10 | $0.10 | ' |
Common stock to be issued [Member] | Minimum [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.10 | $0.10 | ' |
Common stock to be issued [Member] | Maximum [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.26 | $0.26 | ' |
Common stock to be issued [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Proceeds from Issuance or Sale of Equity (in Dollars) | 221,500 | 24,000 | ' |
Common stock to be issued, shares | 2,215,000 | 2,215,000 | ' |
Warrants to be Issued | 443,000 | 443,000 | ' |
Warrants, Term of Warrants | ' | '4 years | '4 years |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.20 | $0.20 | $0.10 |
Class of Warrant or Rights, Granted | ' | 120,000 | 300 |
Proceeds from Issuance of Private Placement (in Dollars) | ' | ' | 1,500 |
Stock to be Issued in 2015 [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Common stock to be issued, shares | 65,000 | 65,000 | ' |
Common stock to be issued (in Dollars) | $6,500 | $6,500 | ' |
Minimum [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.10 | $0.10 | ' |
Maximum [Member] | ' | ' | ' |
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $0.41 | $0.41 | ' |
NOTE_10_COMMON_STOCK_TO_BE_ISS3
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Common Stock to be Issued [Abstract] | ' | ' |
Number of shares to be issued | 2,800,000 | 15,000 |
Value of shares to be issued | $292,000 | $1,500 |
NOTE_10_COMMON_STOCK_TO_BE_ISS4
NOTE 10 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued (Parentheticals) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Schedule of Common Stock to be Issued [Abstract] | ' | ' |
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 | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 58,795,022 | 44,994,490 |
Convertible Debt Securities [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 4,417,276 | 5,194,061 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 20,393,795 | 11,049,842 |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 9,914,999 | 8,885,833 |
Preferred Stock Outstanding [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 15,100,000 | 15,100,000 |
Common stock to be issued [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 2,800,000 | 15,000 |
Preferred Stock Dividends [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock Equivalents Outstanding | 6,168,952 | 4,749,754 |
NOTE_12_OUTSTANDING_WARRANTS_D
NOTE 12 - OUTSTANDING WARRANTS (Details) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Equity Issued for Cash [Member] | Equity Issued for Cash [Member] | Equity Issued for Cash [Member] | Equity Issued for Cash [Member] | Equity Issued for Cash [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] | Equity Issued for Consulting Services [Member] | Equity Issued for Services [Member] | Equity Issued for Services [Member] | Equity Issued for Services [Member] | Warrant [Member] | Minimum [Member] | Maximum [Member] | ||||
Subsequent Event [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||||||||
NOTE 12 - OUTSTANDING WARRANTS (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Rights, Granted | 10,078,953 | ' | 707,860 | 1,250,000 | ' | ' | ' | 2,700,620 | ' | ' | ' | 120,000 | 300 | 7,258,333 | 300,000 | ' | 120,000 | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | 5,000,000 | 18,003,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance or Sale of Equity | ' | ' | ' | ' | ' | ' | $500,000 | $1,800,310 | ' | ' | $221,500 | $24,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants, Term of Warrants | ' | ' | ' | '4 years | ' | ' | ' | '4 years | ' | ' | ' | '4 years | '4 years | ' | '5 years | ' | '4 years | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | $0.20 | $0.10 | $0.41 | ' | ' | $0.10 | $0.26 | $0.20 | $0.20 | $0.10 | ' | ' | $0.10 | $0.10 | ' | $0.10 | $0.41 |
Common stock to be issued, shares | 2,800,000 | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | 2,215,000 | 2,215,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to be Issued | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 443,000 | 443,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Stock Issuance Costs | ' | ' | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Issued, Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | $0.10 | ' | ' | ' |
Number of Consultants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Agreement, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Class of Warrant or Rights Exercisable | 13,538,795 | ' | 11,049,842 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 503,333 | ' | ' | ' | ' | ' | ' |
Class of Warrant or Rights, Warrants Exercisable, Fair Value | 34,904 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Services | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' |
Stock Issued During Period, Value, Issued for Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,835 | ' | ' | ' |
Non-Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,165 | ' | ' | ' |
Increase (Decrease) in Other Accounts Payable and Accrued Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,835 | ' | ' | ' |
Increase (Decrease) in Prepaid Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,165 | ' | ' | ' |
Class of Warrant or Rights, Expired | 475,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Rights, Exercised | 260,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Rights, Weighted Average Exercise Price of Warrants or Rights, Exercised | $0.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Conversion of Convertible Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,000 | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 140,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Warrant Exercises | $24,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTE_12_OUTSTANDING_WARRANTS_D1
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Changes in Warrants (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Schedule of Changes in Warrants [Abstract] | ' | ' |
Warrants Outstanding at begining of period (in Shares) | 11,049,842 | 10,341,982 |
Warrants Outstanding at begining of period | $0.16 | $0.17 |
Warrants Granted (in Shares) | 10,078,953 | 707,860 |
Weighted Average Exercise Price, Warrants Granted | $0.14 | $0.10 |
Warrants Cancelled (in Shares) | -475,000 | 0 |
Weighted Average Exercise Price, Cancelled | $0.19 | $0 |
Expired (in Shares) | 475,000 | 0 |
Expired | ' | $0 |
Exercised (in Dollars) | ($260,000) | ' |
Exercised | $0.18 | ' |
Warrants Outstanding at end of period (in Shares) | 20,393,795 | 11,049,842 |
Weighted Average Exercise Price, Warrants Outstanding at end of period | $0.15 | $0.16 |
Warrants Exercisable (in Shares) | 13,538,795 | 11,049,842 |
Weighted Average Exercise Price, Warrants Exercisable | $0.17 | $0.16 |
NOTE_12_OUTSTANDING_WARRANTS_D2
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Warrants Outstanding, Weighted Average Exercise Price | $0.15 | $0.16 | $0.17 |
Warrants Outstanding, Weighted Average Number (in Shares) | 20,393,795 | 11,049,842 | 10,341,982 |
Warrants Outstanding Remaining Life | '3 years 29 days | ' | ' |
Warrants Exercisable (in Shares) | 13,538,795 | 11,049,842 | ' |
Warrants Exercisable, Weighted Average Exercise Price | $0.17 | $0.16 | ' |
Warrant exercise price 0.10 [Member] | ' | ' | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Exercise prices | $0.10 | ' | ' |
Warrants Outstanding, Weighted Average Exercise Price | $0.10 | ' | ' |
Warrants Outstanding, Weighted Average Number (in Shares) | 11,697,593 | ' | ' |
Warrants Outstanding Remaining Life | '3 years 175 days | ' | ' |
Warrants Exercisable (in Shares) | 4,942,593 | ' | ' |
Warrants Exercisable, Weighted Average Exercise Price | $0.10 | ' | ' |
Warrant Exercise Price $0.11 - $0.20 [Member] | Minimum [Member] | ' | ' | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Exercise prices | $0.11 | ' | ' |
Warrant Exercise Price $0.11 - $0.20 [Member] | Maximum [Member] | ' | ' | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Exercise prices | $0.20 | ' | ' |
Warrant Exercise Price $0.11 - $0.20 [Member] | ' | ' | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Warrants Outstanding, Weighted Average Exercise Price | $0.20 | ' | ' |
Warrants Outstanding, Weighted Average Number (in Shares) | 6,793,582 | ' | ' |
Warrants Outstanding Remaining Life | '2 years 51 days | ' | ' |
Warrants Exercisable (in Shares) | 6,693,582 | ' | ' |
Warrants Exercisable, Weighted Average Exercise Price | $0.20 | ' | ' |
Warrant Exercise Price $0.21 - $0.41 [Member] | Minimum [Member] | ' | ' | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Exercise prices | $0.21 | ' | ' |
Warrant Exercise Price $0.21 - $0.41 [Member] | Maximum [Member] | ' | ' | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Exercise prices | $0.41 | ' | ' |
Warrant Exercise Price $0.21 - $0.41 [Member] | ' | ' | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Warrants Outstanding, Weighted Average Exercise Price | $0.28 | ' | ' |
Warrants Outstanding, Weighted Average Number (in Shares) | 1,902,620 | ' | ' |
Warrants Outstanding Remaining Life | '3 years 335 days | ' | ' |
Warrants Exercisable (in Shares) | 1,902,620 | ' | ' |
Warrants Exercisable, Weighted Average Exercise Price | $0.28 | ' | ' |
Minimum [Member] | ' | ' | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Exercise prices | $0.10 | ' | ' |
Maximum [Member] | ' | ' | ' |
NOTE 12 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ' | ' | ' |
Exercise prices | $0.41 | ' | ' |
NOTE_13_EMPLOYEE_OPTIONS_Detai
NOTE 13 - EMPLOYEE OPTIONS (Details) (USD $) | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 02, 2009 | Sep. 02, 2009 | Sep. 30, 2014 | Sep. 02, 2009 | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 02, 2009 | |
Director [Member] | Officer [Member] | Share-based Compensation Award, Tranche Three [Member] | Share-based Compensation Award, Tranche One [Member] | Share-based Compensation Award, Tranche Four [Member] | 2009 Long Term Incentive Plan [Member] | 2009 Long Term Incentive Plan [Member] | 2009 Long Term Incentive Plan [Member] | 2009 Long Term Incentive Plan [Member] | ||||
2009 Long Term Incentive Plan [Member] | 2009 Long Term Incentive Plan [Member] | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | '10 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | '3 years | '5 years | '24 months | ' | ' | '3 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 9,914,999 | ' | 8,375,000 | ' | ' | ' | ' | ' | ' | ' | 9,914,999 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 6,788,880 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,788,880 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $0.09 | ' | $0.09 | ' | ' | ' | ' | ' | ' | ' | $0.09 | ' |
Share-based Compensation (in Dollars) | $114,651 | $154,591 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,825,000 | ' | ' | 75,000 | 1,750,000 | ' | ' | ' | ' | ' | 1,825,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercise Price of Options (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' |
Number of Directors | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Officers | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133,829 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | ' | ' | ' | ' | ' | ' | ' | 33.00% | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $249,724 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' |
NOTE_13_EMPLOYEE_OPTIONS_Detai1
NOTE 13 - EMPLOYEE OPTIONS (Details) - Summary of Stock Option Activity (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Summary of Stock Option Activity [Abstract] | ' | ' |
Options vested and exercisable (in Shares) | 9,914,999 | 8,375,000 |
Weighted average exercise price | $0.09 | $0.09 |
Aggregate Intrinsic Value (in Dollars) | $3,548,300 | $3,015,000 |
Weighted Average Remaining Contractual Life | '7 years 80 days | ' |
Options vested and exercisable at period end (in Shares) | 6,788,880 | ' |
Options vested and exercisable at period end | $0.09 | ' |
Options vested and exercisable at period end (in Dollars) | 2,414,041 | ' |
Options vested and exercisable at period end | '6 years 178 days | ' |
Weighted average grant-date fair value of options granted during the period | $0.10 | ' |
Granted (in Shares) | 1,825,000 | ' |
Granted | $0.10 | ' |
Granted (in Dollars) | 638,750 | ' |
Exercised | $0 | ' |
Exercised (in Shares) | 0 | ' |
Exercised (in Dollars) | 0 | ' |
Forfeited/ Cancelled (in Shares) | -285,001 | ' |
Forfeited/ Cancelled | $0.08 | ' |
Forfeited/ Cancelled (in Dollars) | ($105,450) | ' |
NOTE_13_EMPLOYEE_OPTIONS_Detai2
NOTE 13 - EMPLOYEE OPTIONS (Details) - Summary of Outstanding and Exercisable Options (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding (in Shares) | 9,914,999 |
Options Exercisable (in Shares) | 6,788,880 |
Options, range of exercise prices $0.00-0.08 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, Lower Limit | $0 |
Exercise Price, Upper Limit | $0.08 |
Options Outstanding (in Shares) | 2,500,000 |
Weighted Average Remaining Life, Options Outstanding | '6 years 32 days |
Weighted Average Exercise Price, Options Outstanding | $0.08 |
Options Exercisable (in Shares) | 2,250,000 |
Weighted Average Exercise Price, Options Exercisable | $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] | ' |
Exercise Price, Lower Limit | $0.09 |
Exercise Price, Upper Limit | $0.10 |
Options Outstanding (in Shares) | 7,414,999 |
Weighted Average Remaining Life, Options Outstanding | '6 years 335 days |
Weighted Average Exercise Price, Options Outstanding | $0.09 |
Options Exercisable (in Shares) | 4,538,880 |
Weighted Average Exercise Price, Options Exercisable | $0.10 |
NOTE_13_EMPLOYEE_OPTIONS_Detai3
NOTE 13 - EMPLOYEE OPTIONS (Details) - Summary of Non-vested Shares (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Non-vested Shares [Abstract] | ' |
Non-vested at January 1, 2014 | 2,317,506 |
Non-vested at January 1, 2014 | $0.09 |
Granted | 1,825,000 |
Granted | $0.10 |
Forfeited | -285,001 |
Forfeited | $0.09 |
Vested | -731,386 |
Vested | $0.08 |
Non-vested | 3,126,119 |
Non-vested | $0.09 |
NOTE_14_COMMITMENTS_AND_CONTIN2
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Purchase Commitment, Description | 'VidTac contract manufacturer for finished units to be delivered ratably throughout a ten-month period commencing in September 2014 | ' |
Purchase Commitment, Remaining Minimum Amount Committed | $433,130 | ' |
Board of Directors Chairman [Member] | ' | ' |
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Deferral of Contractual Compensation, Contributed Capital | 30,000 | 30,000 |
President [Member] | ' | ' |
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ' | ' |
Deferral of Contractual Compensation, Contributed Capital | $29,250 | $29,250 |
NOTE_14_COMMITMENTS_AND_CONTIN3
NOTE 14 - COMMITMENTS AND CONTINGENCIES (Details) - Schedule of Future Minimum Payments for Contractual Obligations (USD $) | Sep. 30, 2014 |
Schedule of Future Minimum Payments for Contractual Obligations [Abstract] | ' |
Long-Term Debt Obligations | $2,072,639 |
Long-Term Debt Obligations | 410,024 |
Long-Term Debt Obligations | 1,497,796 |
Long-Term Debt Obligations | 161,664 |
Long-Term Debt Obligations | 3,155 |
Purchase Obligations | 389,813 |
Purchase Obligations | 233,888 |
Purchase Obligations | 155,925 |
Purchase Obligations | 0 |
Purchase Obligations | 0 |
Operating Lease Obligations | 82,521 |
Operating Lease Obligations | 22,506 |
Operating Lease Obligations | 60,015 |
Operating Lease Obligations | 0 |
Operating Lease Obligations | 0 |
Total Contractual Obligations | 2,544,973 |
Total Contractual Obligations | 666,418 |
Total Contractual Obligations | 1,713,736 |
Total Contractual Obligations | 161,664 |
Total Contractual Obligations | $3,155 |
NOTE_15_SUBSEQUENT_EVENTS_Deta
NOTE 15 - SUBSEQUENT EVENTS (Details) (USD $) | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Oct. 01, 2014 | Oct. 01, 2014 | Sep. 30, 2014 | Oct. 06, 2014 | Oct. 01, 2014 | Oct. 06, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 01, 2014 | Nov. 13, 2014 | Oct. 06, 2014 | Oct. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Equity Issued for Services [Member] | Equity Issued for Services [Member] | Equity Issued for Services [Member] | Advisory Firm Agreement [Member] | Advisory Firm Agreement [Member] | Advisory Firm Agreement [Member] | Advisory Firm Agreement [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Minimum [Member] | Maximum [Member] | |||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||
Minimum [Member] | Maximum [Member] | ||||||||||||||||
NOTE 15 - SUBSEQUENT EVENTS (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital to be Raised (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $750,000 | $750,000 | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 3.00% | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.22 | $0.25 | ' | $0.10 | ' | ' | ' | ' |
Other Commitment (in Dollars) | ' | ' | ' | ' | ' | ' | ' | $5,000 | $7,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock to be issued, shares (in Shares) | 2,800,000 | 15,000 | ' | ' | ' | ' | ' | 2,375,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to be Issued (in Shares) | 120,000 | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants, Term of Warrants | ' | ' | '5 years | ' | '4 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | ' | ' | ' | $0.10 | $0.10 | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | $0.10 | $0.41 |
Agreement, Term | ' | ' | ' | ' | ' | '6 years | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Commitments, Description | ' | ' | ' | ' | ' | 'Either party may terminate the agreement at any time upon 30 days’ prior written notice to the other party after the six month anniversary of the agreement. | 'Either party may terminate the agreement at any time upon 10 day written notice to the other party after the six month anniversary of the agreement. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Rights, Granted (in Shares) | 10,078,953 | 707,860 | 300,000 | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTE_16_RELATED_PARTY_TRANSACT1
NOTE 16 - RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||||
Sep. 30, 2014 | Oct. 31, 2014 | Feb. 28, 2014 | Nov. 25, 2013 | Aug. 12, 2013 | Feb. 07, 2013 | Feb. 28, 2014 | Nov. 25, 2013 | Aug. 12, 2013 | Feb. 07, 2013 | Nov. 30, 2013 | Jun. 30, 2014 | 31-May-14 | Sep. 30, 2013 | Mar. 31, 2013 | Jul. 11, 2014 | Mar. 31, 2014 | |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Equipment [Member] | Equipment [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | ||
Subsequent Event [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | |||||||||||||||
NOTE 16 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | $25,000 | $60,000 | $40,000 | $120,534 | $313,477 | ' | $607,500 | $50,000 | $250,000 | ' | ' |
Debt Instrument, Maturity Date | ' | ' | 31-Dec-14 | 31-Mar-16 | 31-Mar-16 | 31-Mar-16 | ' | ' | ' | ' | ' | ' | ' | 31-Mar-14 | 15-Apr-15 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | 3.00% | 3.00% | 16.00% | ' | 50.00% | 9.90% | ' | 15.00% | 12.90% |
Repayments of Related Party Debt | ' | $10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Notes Payable | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 8 | ' | ' | ' | ' |
Debt Instrument, Maturity Date, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'May 2014 | 'November 2014 | ' | ' | ' | ' | ' |