Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 10, 2015 | |
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 | 203,052,344 | |
Amendment Flag | false | |
Entity Central Index Key | 1,383,154 | |
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 | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 142,604 | $ 587,459 |
Accounts receivable, net | 225,349 | 223,622 |
Inventories | 305,693 | 246,077 |
Prepaid expenses and other current assets | 273,276 | 270,148 |
Deferred loan costs | 0 | 50,000 |
Total Current Assets | 946,922 | 1,377,306 |
PROPERTY AND EQUIPMENT | ||
Leased property under capital lease | 35,098 | 35,098 |
Computer hardware | 80,475 | 72,070 |
Computer software | 36,936 | 36,936 |
Fleet vehicles | 142,059 | 174,094 |
Furniture and fixtures | 10,467 | 10,467 |
Total Property and Equipment | 305,035 | 328,665 |
Less: Accumulated Depreciation | (167,447) | (152,789) |
Net Property and Equipment | 137,588 | 175,876 |
TOTAL ASSETS | 1,084,510 | 1,553,182 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 2,370,238 | 1,526,612 |
Deferred revenues | 2,315,601 | 2,526,990 |
Obligation under capital lease, current portion | 7,982 | 7,632 |
Convertible notes payable, current portion | 398,786 | 9,608 |
Three Year, 50% notes payable | 197,625 | 121,500 |
Notes payable, current portion | 983,616 | 669,789 |
Total Current Liabilities | 6,273,848 | 4,862,131 |
LONG-TERM LIABILITIES | ||
Deferred revenues | 887,164 | 1,142,437 |
Obligation under capital lease | 23,386 | 27,466 |
Convertible notes payable | 178,718 | 389,178 |
Three Year, 50% notes payable, net of $198,263 discount, non-current portion | 233,749 | 291,118 |
Notes payable, non-current portion | 31,955 | 56,639 |
Total Long-Term Liabilities | 1,354,972 | 1,906,838 |
Total Liabilities | $ 7,628,820 | $ 6,768,969 |
COMMITMENTS AND CONTINGENCIES (Note 14) | ||
STOCKHOLDERS' DEFICIT | ||
Common stock, par value $0.0001 per share, 500,000,000 shares authorized; 203,052,344 and 201,852,444 issued and outstanding, respectively | $ 20,301 | $ 20,184 |
Common stock to be issued, 30,000 and 300,000 shares, respectively | 3,000 | 42,000 |
Additional paid-in-capital | 18,390,295 | 17,630,254 |
Accumulated deficit | (24,957,953) | (22,908,272) |
Total Stockholders' Deficit | (6,544,310) | (5,215,787) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 1,084,510 | 1,553,182 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
Preferred stock, value issued | 10 | 10 |
Series B Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
Preferred stock, value issued | $ 37 | $ 37 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 203,052,344 | 201,852,444 |
Common stock, shares outstanding | 203,052,344 | 201,852,444 |
Common stock to be issued | 30,000 | 300,000 |
Other Current Liabilities [Member] | ||
Notes payable | 50.00% | 50.00% |
Notes payable, year | 3 years | 3 years |
Other Noncurrent Liabilities [Member] | ||
Notes payable | 50.00% | 50.00% |
Notes payable, year | 3 years | 3 years |
Notes payable, discount (in Dollars) | $ 198,263 | |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 100,000 | 100,000 |
Preferred stock, shares outstanding | 100,000 | 100,000 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 375,000 | 375,000 |
Preferred stock, shares issued | 375,000 | 375,000 |
Preferred stock, shares outstanding | 375,000 | 375,000 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES | ||||
Hardware, installation and other revenues | $ 499,278 | $ 934,916 | $ 1,001,935 | $ 1,839,847 |
Software license/subscription revenues | 747,313 | 644,675 | 1,415,542 | 1,227,564 |
Total Revenues | 1,246,591 | 1,579,591 | 2,417,477 | 3,067,411 |
COST OF REVENUES | ||||
Hardware and other costs | 366,703 | 799,361 | 820,045 | 1,497,268 |
Software license/subscriptions | 321,494 | 270,653 | 625,186 | 529,159 |
Total Cost of Revenues | 688,197 | 1,070,014 | 1,445,231 | 2,026,427 |
GROSS PROFIT | 558,394 | 509,577 | 972,246 | 1,040,984 |
OPERATING EXPENSES | ||||
Research and development | 459,547 | 377,667 | 945,167 | 894,671 |
Sales and marketing | 450,822 | 332,044 | 815,189 | 649,001 |
General and administrative | 589,214 | 360,556 | 1,004,418 | 794,074 |
Total Operating Expenses | 1,499,583 | 1,070,267 | 2,764,774 | 2,337,746 |
LOSS FROM OPERATIONS | (941,189) | (560,690) | (1,792,528) | (1,296,762) |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (170,177) | (44,829) | (238,910) | (55,531) |
0 | 0 | 0 | 0 | |
Total Other Income (Expense) | (170,177) | (44,829) | (238,910) | (55,531) |
NET LOSS BEFORE INCOME TAXES | (1,111,366) | (605,519) | (2,031,438) | (1,352,293) |
INCOME TAXES | 0 | 0 | 0 | 0 |
NET LOSS | (1,111,366) | (605,519) | (2,031,438) | (1,352,293) |
Series B preferred stock dividend | (2,553) | (1,130) | (17,943) | (27,020) |
Accretion of beneficial conversion feature on preferred shares dividends issued in kind | (23,625) | (25,048) | (34,125) | (25,048) |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (1,137,544) | $ (631,697) | $ (2,083,506) | $ (1,404,361) |
LOSS PER COMMON SHARE - BASIC & DILUTED (in Dollars per share) | $ (0.01) | $ 0 | $ (0.01) | $ 0.01 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC & DILUTED (in Shares) | 202,764,184 | 176,394,996 | 202,456,062 | 175,791,435 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,031,438) | $ (1,352,293) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 26,907 | 240,446 |
Employee and non-employee stock compensation | 95,832 | 112,201 |
Amortization of restricted stock grants | 0 | 4,237 |
Capital contributed/co-founders' forfeiture of contractual compensation | 39,500 | 39,500 |
Discount on three-year, 50% notes payable | 33,756 | 0 |
Interest expense on beneficial conversion feature of convertible promissory notes | 96,558 | 0 |
Valuation of warrants for services rendered | 4,387 | 0 |
Valuation of warrants | 19,164 | 0 |
Loss on asset disposals | 1,780 | 1,591 |
Change in operating assets and liabilities: | ||
Accounts receivable | 1,024 | (102,065) |
Inventories | (59,616) | 174,172 |
Prepaid expenses and other current assets | 30,191 | 23,364 |
Deferred loan costs | 50,000 | 0 |
Deferred revenues | (466,662) | (218,089) |
Accounts payable and accrued expenses | 843,326 | (422,375) |
Net cash used in operating activities | (1,315,291) | (1,499,311) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from asset disposals | 4,000 | 2,500 |
Purchases of property and equipment | (8,404) | (16,640) |
Net cash used in investing activities | (4,404) | (14,140) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable | 389,834 | 700,000 |
Proceeds from issuance of common stock for cash | 617 | 197,500 |
Proceeds from common stock to be issued, net | 3,960 | 0 |
Proceeds from the issuance of stock for warrant exercised | 107,600 | 0 |
Proceeds received on convertible notes | 514,315 | 0 |
Proceeds from three-year, 50% notes payable | 0 | 405,000 |
Payments on notes payable | (122,756) | (93,364) |
Payments on three-year, 50% notes payable | (15,000) | 0 |
Payments on capitalized lease obligations | (3,730) | 0 |
Net cash provided by financing activities | 874,840 | 1,209,136 |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | (444,855) | (304,315) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 587,459 | 414,051 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 142,604 | 109,736 |
SUPPLEMENTAL DISCLOSURES: | ||
Cash paid for interest | 37,989 | 30,692 |
Cash paid for income tax | 8,298 | 7,602 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Insurance proceeds applied to outstanding bank loan | 11,254 | 0 |
Series B Preferred stock dividends | 17,943 | 27,020 |
Accretion of beneficial conversion feature on preferred shares dividends issued in kind | 34,125 | 25,048 |
Partial financing associated with the purchase of two fleet vehicles | 0 | 49,503 |
Non-cash issuance of 60,000 shares of common stock to third party for services performed and to be performed | 0 | 60,000 |
Conversion of convertible notes into 325,000 and 200,000 shares of common stock, respectively | 65,000 | |
Financing of prepaid insurance policy | 43,045 | 27,963 |
Convertible Notes and Accrued Interest [Member] | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Conversion of convertible notes into 325,000 and 200,000 shares of common stock, respectively | 65,000 | 20,000 |
Stock Issued for Prior Warrant Exercises [Member] | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Issuance of common stock for prior year exercises | 32,000 | 0 |
Stock Issued for Prior Subscriptions [Member] | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Issuance of common stock for prior year exercises | $ 20,000 | $ 0 |
Statements of Cash Flows (Unau6
Statements of Cash Flows (Unaudited) (Parentheticals) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Non-cash issuance of shares of common stock to third party for services performed and to be performed | 60,000 | |
Conversion of convertible notes into shares of common stock | 325,000 | |
Convertible Notes and Accrued Interest [Member] | ||
Conversion of convertible notes into shares of common stock | 325,000 | 200,000 |
NOTE 1 - BASIS OF FINANCIAL STA
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Basis of Accounting [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 fairly present the financial position of the Company as of June 30, 2015, and its results of operations and cash flows for the three-month and six-month periods ended June 30, 2015. 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, 2014. The results for the three-month and six-month periods ended June 30, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2015, or any other period. The year-end condensed balance sheet data as of December 31, 2014, 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 | 6 Months Ended |
Jun. 30, 2015 | |
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 operates what it believes to be the only real-time, law enforcement mobile data information system in the United States. The Company refers to this real-time, in-car information sharing, communication and data interoperability network as the “COPsync Network.” The COPsync Network, delivered via software as a service, is designed for the purpose of: · Connecting state and local law enforcement officers, regardless of agency jurisdiction, to a common communications system, enabling them to share mission critical, actionable information and communicate in real-time between and among themselves, as if they were one law enforcement agency; · Allowing officers to query, in real time, various local, state and federal law enforcement databases, including (i) the FBI Criminal Justice Information Service (CJIS) database, (ii) the law enforcement telecommunications system databases for the States of Texas, Mississippi and Massachusetts, (iii) the historical databases of the Company’s agency subscribers who have provided other subscribers with such access; (iv) the Department of Homeland Security’s El Paso Intelligence Center (EPIC) database, which collects information relating to persons crossing the United State s border, and (v) the COPsync Network database, and, as the Company expands the scope of its operations to states others than noted above, it anticipates being able to provide access to the law enforcement telecommunications databases in those states as well, subject to approvals from the applicable governing state agencies; · Allowing dispatchers and officers to send, in real-time, BOLO (be on the lookout) and other alerts of kidnappings, robberies, car thefts, police pursuits, and other crimes in progress to all officers connected to the COPsync Network, regardless of agency jurisdiction; · Allowing officers to write tickets, offense reports, crash reports and other reports and electronically and seamlessly send, in real-time or near real-time, the information in those reports to the COPsync Network database and local court and agency databases; and · Informing officers of certain outstanding misdemeanor warrants at the point of a traffic stop and allowing the officers to provide the violator notice of the outstanding warrant, or collect payment for the warrant with a credit card, through a specific feature enhancement that the Company sometimes refers to as the WARRANTsync system. The Company also offers the COPsync911 threat alert service for use in schools, hospitals, day care facilities, government office buildings, energy infrastructure and other facilities with a high level of concern about security. When used in schools, the COPsync911 service enables school personnel to instantly and silently send emergency alerts directly to the closest law enforcement officers in their patrol vehicles, and to the local 911 dispatch center, with the mere click of an icon, from any computer within the facility and from any cell phones and other mobile devices associated with 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. Once the alert is sent, a “crisis communication portal” is established among the person(s) sending the alert, the responding patrol vehicles and the local law enforcement 911 dispatch center. This allows the person(s) initiating the alert to silently communicate with responding officers and the 911 dispatch center about the nature of the threat, whether it is an active gunman, fire, suspicious person or other emergency. The crisis communication portal also provides a link to a diagram of the school or other facility and a map to its location. The Company also augments its other services with its proprietary law enforcement in-car video system, named VidTac. Liquidity and Management Plans At June 30, 2015, the Company had cash and cash equivalents of $142,604, a working capital deficit of $5,326,926 and an accumulated deficit of $24,957,953. The following factors are helping the 1) Booked orders for new customer contracts executed in the second quarter of 2015 were approximately $1,452,000, which is an increase of 222% over the first quarter of 2015, and represents the highest quarterly sales orders since the second quarter of 2013. The Company expects this higher level of sales orders to continue in 2015 as a result of personnel and process changes the Company made in its sales organization during the second quarter of 2015. The timeline between receiving a sales order and when the Company recognizes revenue and cost of revenue performance normally ranges from thirty days to four months, depending upon the contract value, the type of funding involved, and scope of work involved. 2) The Company raised 3) Holders of warrants to purchase 538,000 shares of the Company’s common stock exercised those warrants in the first six months of 2015, for an aggregate 4) Two holders of promissory notes representing an aggregate of $563,477 in principal have expressed their willingness to extend the due dates of their respective notes, one holder whose notes matured during the second quarter totaling $313,477 and another holder whose $250,000 note will mature in the third quarter of 2015. Both note holders have previously extended their respective notes. The Company is working with each lender to document these extensions at the date of this report. 5) The Company raised $350,000 pursuant to a $300,000 six-month bridge loan executed in early May 2015 and a $50,000 four-month bridge loan executed in June 2015. The Company’s chief executive officer personally guaranteed the repayment of these loans. 6) The Company has commenced the process of applying to list on the NASDAQ Capital Market, as discussed below. The Company plans to raise additional capital in connection with its listing on the NASDAQ Capital Market in order to meet the minimum stockholder equity listing standard. 7) The Company raised net proceeds of $1,308,350 during the month of July 2015 pursuant to a private placement of convertible notes and warrants with accredited individual and institutional investors, as part of a plan previously approved by the Board to raise $2,000,000 in capital funding. The convertible notes will be converted into shares of the Company’s common stock upon its listing with the NASDAQ Capital Market, as discussed above. The proceeds from this financing will be used by the Company for repaying the remaining balances of the two bridge loans discussed above and for general working capital purposes. 8) The Company continues to employ “just in time” principles in its procurement processes for third party hardware, meaning that it attempts to schedule delivery to the customer of the third party hardware that the Company 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, which has helped the Company manage its working capital needs. 9) The Company’s key vendors continue to work with it by providing extended payment terms for its outstanding payables balances, which has also helped the Company manage its working capital needs. 10) The Company believes that it has the capability to reduce operating expenses, should circumstances require such actions. 11) The Company is no longer attempting to raise funds pursuant to an EB-5 economic development arrangement, as previously reported, and the Company is now in discussions with the City of Pharr, which previously loaned the Company $475,000 in connection with the proposed EB-5 economic development arrangement, about converting the loan to an economic development grant. 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, which is common for companies at this stage of the Company’s maturity, |
NOTE 3 - SUMMARY OF SIGNIFICANT
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES | 6 Months Ended |
Jun. 30, 2015 | |
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, 2014 included in the Form 10-K filed on March 31, 2015. b. Reclassifications Certain prior year items have been reclassified to conform to the current year presentation. These reclassifications had no impact on the Company’s financial statements. |
NOTE 4 - RECENT ACCOUNTING STAN
NOTE 4 - RECENT ACCOUNTING STANDARDS AND PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2015 | |
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 A variety of proposed or otherwise potential account standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, management has not determined whether implementation of such proposed standards would be material to its consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In February 2015, the FASB issued ASU 2015-02, Amendments to Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs |
NOTE 5 - ACCOUNTS RECEIVABLE
NOTE 5 - ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 5 – ACCOUNTS RECEIVABLE The Company's accounts receivable, net, at June 30, 2015 and December 31, 2014, respectively, consisted of the following: Category June 30, 2015 December 31, 2014 Trade receivables $ 1,045,271 $ 1,101,279 Other receivables 21,937 53,227 Elimination of unpaid deferred revenue (627,470 ) (716,495 ) Allowance for doubtful accounts (214,389 ) (214,389 ) Accounts Receivable, net $ 225,349 $ 223,622 To date, accounts receivable have been derived principally from revenue earned from end users, which are local and state governmental agencies. The Company performs periodic credit evaluations of its customers, and does not require collateral. The elimination of the unpaid deferred revenue for the respective periods represents those invoices issued for products and/or services not yet paid by the customer or services completed by the Company. The elimination is made to prevent the “gross-up” effect on the Company’s Balance Sheet between Accounts Receivable and Deferred Revenues. The Company’s allowance for doubtful accounts is based upon a review of outstanding receivables. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. |
NOTE 6 - INVENTORY
NOTE 6 - INVENTORY | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 6 – INVENTORY Inventory consisted entirely of finished goods and totaled $305,693 and $246,077 at June 30, 2015, and December 31, 2014, respectively. The approximate $60,000 increase in inventory in the first six months of 2015 is due principally to an increase in the Company’s VidTac finished goods inventory. Total inventory at June 30, 2015 and December 31, 2014 included hardware consisting of computer laptops, printers and ancillary parts, such as electronic components, connectors, adapters and cables, as well as the Company’s propriety VidTac product and its related components. Generally, the Company procures hardware as a result of receiving a customer order. The hardware is procured, delivered to the Company, prepared for installation and then transported by the Company to the customer site for installation. The Company does not procure any third-party hardware for speculative selling. Further, the various components of hardware are all considered finished goods because the individual items may be, and are, sold in a package, or on an individual basis, normally at the same pricing structure. The Company has contracted with a single manufacturer to produce the Company’s proprietary VidTac product. The contract agreement calls for the Company to periodically place a demand purchase order for a fixed number of units to be manufactured and delivered as finished goods. The Company’s purchase orders are non-cancellable; however, there are some relief provisions: (1) the Company may change the original requested delivery dates if the Company gives sufficient advance notice to the contract manufacturer; and (2) should the Company elect to cancel a purchase order in total or in part, it would be financially responsible for any materials that could not be returned by the contract manufacturer to its source suppliers. When the VidTac product is recorded into finished goods, it consists of a kit with four basic components. The Company records the product as a single unit of inventory. Should a single component fail or need to be replaced, the Company will take a kit and then inventory the components, still considered finished goods. Should a component need to be repaired, it is returned to the contract manufacturer for analysis and repair. The repaired component is then shipped to the Company and inventoried as finished goods. In December 2014, the Company placed a demand purchase order for $433,000 with the contract manufacturer for units to be delivered ratably in fiscal year 2015, beginning in May 2015. This order was to cover forecasted demand for the product during the delivery period, as well as to accommodate the long-lead times required for procuring certain components from off-shore manufacturers. The payment terms for this purchase order required a 10% down-payment at the time of order placement, followed by Net 30 days from invoice date once the units are delivered to the Company. At June 30, 2015, the Company had taken delivery of units related to this demand purchase order valued at approximately $87,000. |
NOTE 7 - PREPAID EXPENSES AND O
NOTE 7 - PREPAID EXPENSES AND OTHER ASSETS | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Other Current Assets [Text Block] | NOTE 7 – PREPAID EXPENSES AND OTHER ASSETS The Company's prepaid expenses and other assets consisted of the following at June 30, 2015 and December 31, 2014, respectively: Category June 30, 2015 December 31, 2014 Prepaid Insurance $ 43,595 $ 44,101 Subscriptions 11,428 24,050 Vendor Prepayments 54,650 103,044 Deferred Charges 163,603 98,953 Total Prepaid Expenses and Other Assets $ 273,276 $ 270,148 Prepaid insurance pertains to various business insurance policies, the fees of which have been financed by a third-party service provider and are being paid over an eleven-month period. This prepayment is amortized ratably over the twelve-month Subscriptions principally pertain to prepaid software support and web-hosting services provided by third-party service providers. The balance can fluctuate period-over-period based upon the timing between payment and amortization activities. The prepayments are amortized into expense over the life of the specific service period. Vendor prepayments principally involve two vendors: one, consisting of down-payments made to the Company’s contract manufacturer for new orders of the VidTac product, which are then applied on a unitized basis as credits on the vendor’s invoices when the finished product goes into finished goods inventory; and two, a vendor prepayment for services to be rendered. These prepayments will be expensed as the services are rendered in 2015. Deferred charges pertain to off-the-shelf computer aided dispatch systems (“CAD”) purchased from two outside software services companies and delivered to six contracted customers as part of their respective, executed service agreement (or contract). The contracts involved license fees for the CAD service over a four-year period commencing with the acceptance of the service, as well as one-time implementation fees specific to each agency. The contracts were executed in early in 2013 and the customers made prepayments totaling $285,555, which is reported in Current Deferred Revenues. At June 30, 2015, there remains some services yet to be performed and delivered to the customers; therefore, revenue recognition is not appropriate at this time. The Company expects to complete and deliver those services in fiscal year 2015, at which time these deferred charges will be recognized as revenues. |
NOTE 8 - NOTES PAYABLE
NOTE 8 - NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 8 – NOTES PAYABLE The Company’s total nonconvertible notes payable at June 30, 2015 was $1,446,945, representing a net increase of $307,899 for the six-months ended June 30, 2015. The following table shows the components of notes payable, including three-year, 50% notes payable at June 30, 2015 and December 31, 2014, respectively: June 30, December 31, Loan Type 2015 2014 Bank $ 57,977 $ 84,406 Insurance 36,725 40,300 Other term notes 1,352,243 1,014,340 Total notes payable 1,446,945 1,139,046 Less: Current portion (1,181,241 ) (791,289 ) Long-term portion $ 265,704 $ 347,757 During the six months ended June 30, 2015, the Company incurred the following increases in notes payable: 1) In the first quarter of 2015, 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 $11,254 for its loss. The payment was applied in full to the related bank loan. 2) In the first quarter of 2015, the Company executed a $33,319, 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. 3) On May 6, 2015, the Company executed a $300,000 short-term promissory note payable to a third-party financier. The purpose of the note was to assist the Company with its working capital requirements. The term of the note was six months, was funded on May 11, 2015, required daily payments for the first 20 business days of the term of $2,000, and daily payments of $3,650 for each of the remaining 100 business days during the term, with an effective interest rate of 35%. The note had an origination fee of $999 and the following early payment options: 1-30 days - $360,000, 31-60 days - $366,000, 61-90 days - $375,000 and 91+ days - $405,000. As of June 30, 2015, the Company had paid $39,375 of principal on this note. The Company paid the outstanding principal balance of $245,000 on August 11, 2015. 4) On June 29, 2015, the Company executed a $50,000 short-term promissory note payable to a third-party financier. The purpose of the note was also to assist the Company with its working capital requirements. The term of the note is four months, was funded on June 30, 2015, and requires daily payments of $795 for 88 business days, with an effective interest rate of 40%. The note has an origination fee of $1,000 and the following early payment options: 1-30 days - $59,950 and 31+ days - $69,950. As of June 30, 2015, the Company had paid $568 of principal on this note. The Company paid the outstanding balance of $42,718 on August 11, 2015. 5) Closing costs for the two loans described immediately above totaled $10,166. These costs will be amortized ratably as interest expense over the life of the respective loans. 6) The Company received a $50,000 advance from Joe Alosa, a member of the board, in June 2015, without accompanying paperwork. The Company has recorded this advance as a 90-day note, assuming 8% interest per annum. 7) 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 date the note was 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 notes. 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 issuance 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. During the six-months ended June 30, 2015, the Company recorded an aggregate of $33,756 in discount on the notes. The six-month repayment scheduled for the second quarter of 2015 totaled $30,375, of which the Company paid $15,000 in that period. The balance of the amount due for the quarter was paid in July 2015. 8) On July 11, 2014, the Company executed a $60,000 short-term promissory note payable to a third-party financier. The note matured on April 11, 2015. The purpose of the note was to assist in the Company’s procurement of its VidTac products. The note accrued interest at 15% per annum, and required an initial monthly payment of interest only in August 2014 of $750, followed by eight monthly principal and interest payments in the amount of $7,028, commencing in September 2014. At December 31, 2014, the loan’s outstanding balance was $30,745, which was paid in full in 2015. 9) During the first six months of 2015, the Company made total principal payments of $149,001, on notes payable financing the Company’s business insurance policies and bank notes for automobile loans. |
NOTE 9 - CONVERTIBLE NOTES PAYA
NOTE 9 - CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2015 | |
Convertible Note Payable [Abstract] | |
Convertible Note Payable [Text Block] | NOTE 9 – The Company’s total convertible notes payable at June 30, 2015 was $577,504, representing a net increase of $178,718 for the six-months ended June 30, 2015. The following table shows the components of convertible notes payable at June 30, 2015 and December 31, 2014, respectively: June 30, December 31, 2015 2014 Total convertible notes payable at beginning of period $ 398,786 $ 873,263 Plus: additional notes payable 514,315 - Less: beneficial conversion feature (270,597 ) - Less: note conversions (65,000 ) (474,477 ) Convertible notes payable, net 577,504 398,786 Less: current portion, net (398,786 ) (9,608 ) Convertible notes payable, net, long-term portion $ 178,718 $ 389,178 In October 2014, the Company’s Board of Directors approved a funding initiative for $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 to scale nationwide, of which $484,315 and $30,000 was raised in the first and second quarters of 2015, respectively. The investment security is a three-year convertible promissory note, which bears interest at the rate of two percent simple interest per year, payable in cash. The principal amount of the note is convertible into shares of the Company’s common stock at the rate of $0.22 per share. The promissory note may be prepaid by the Company under certain conditions. With each new issuance of convertible debt, the Company evaluates whether there is a beneficial conversion feature. A beneficial conversion feature arises when the conversion price of a convertible instrument is below the per-share fair value, or trading price, of the underlying stock into which it is convertible. The beneficial conversion feature is allocated between the debt and the beneficial conversion feature on relative fair value basis, and the amount allocated to beneficial conversion feature is then amortized as interest expense over the term of the note. The issuer of the convertible instrument realizes a cost based on the theory that the intrinsic value of the price difference (i.e., the price difference times the number of shares received upon conversion) represents an additional financing cost. The Company determined the aggregate beneficial conversion feature for the convertible notes issued during the first and second quarters of 2015 was $367,155, which was recorded as a discount on non-current notes payable, offset by a benefit to paid-in capital. For the six-months ended June 30, 2015, $96,558 of the beneficial conversion feature was amortized to interest expense. On February 6, 2015, a single note holder elected to immediately convert his $65,000 convertible promissory note into 325,000 shares of the Company’s common stock at an exercise price of $0.20 per share, rather than $0.22 per share. The Company offered the slightly lower exercise price as an inducement for the note holder’s decision to immediately convert the note. Additionally, the holder was granted warrants to purchase 65,000 additional shares of the Company’s common stock at $0.40 per share (see Note 14). At March 31, 2015, the Company reclassified $337,532 in aggregate principal amount of eight convertible notes issued in fiscal year 2011 and maturing on March 31, 2016, from Long-Term Liabilities to Current Liabilities on the Company’s Balance Sheet. |
NOTE 10 - PREFERRED STOCK
NOTE 10 - PREFERRED STOCK | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Preferred Stock [Text Block] | NOTE 10 – PREFERRED STOCK Preferred Stock Series A The Company issued a total of 100,000 shares of its Series A Preferred Stock in April 2008 as partial consideration for its acquisition of a 100% ownership interest in PostInk Technology, LP (“PostInk”). Each share of Series A Preferred Stock is convertible into one share of common stock, but has voting rights on a basis of 750 votes per share. These shares are held by the former general partner of PostInk, which is owned by the co-founders of the Company. Each share of Series A Preferred Stock shall automatically be converted into fully-paid non-assessable shares of common stock at the then effective conversion rate for such share. The events that may trigger this automatic conversion event are as follows: 1) immediately prior to the closing of a firm commitment underwriting 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, iii) are convertible into 40 shares of common stock per share, subject to adjustment for 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. For the six-months ended June 30, 2015, gross dividends on the Series B Preferred Stock were $52,068, consisting of $34,125 for accretion of the beneficial conversion feature on the preferred shares dividends issued in kind and $17,943 for net dividends. For the comparable period in 2014, dividends on the Series B Preferred Stock were $52,068, consisting of $27,020 for accretion of the beneficial conversion feature on the preferred shares dividends issued in kind and $25,048 for net dividends. |
NOTE 11 - COMMON STOCK
NOTE 11 - COMMON STOCK | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 11 – COMMON STOCK During the six-months ended June 30, 2015, the Company issued a total of 1,199,900 shares of common stock as described below: 1) The Company issued 498,000 shares of common stock upon the exercise of outstanding warrants, for an aggregate exercise price of $99,600 (See Note 14). 2) In September 2014, the Company received a total of $24,000 from holders of warrants to purchase of 120,000 shares of common stock for the exercise of those warrants. The exercise price of the warrants was $0.20 per share. At the warrant holders’ request, the Company agreed to not issue the shares of common stock issuable upon such exercise for a period of six months following the date of exercise. Accordingly, the shares were issued during the period. 3) The Company issued 150,000 shares of common stock and associated warrants pursuant to a $15,000 deposit received in fiscal year 2014 from a single investor (See Note 14). 4) The Company issued 325,000 shares of common stock associated with the conversion of a $65,000 convertible note. 5) In March 2015, the Company received $8,000 from a single holder of a warrant to purchase 40,000 shares of common stock for the exercise of that warrant at the exercise price of $0.20 per share. The Company issued the shares of common stock in April 2015. 6) In March 2015, the Company received a deposit from a single investor totaling $5,000 for the purchase of 50,000 shares of common stock and associated warrants. These shares were issued in May 2015. The term of the warrants is four years, and the exercise price is $0.38 per share, representing the average closing price of the Company’s stock for the 20 trading days preceding the deposit date. 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. 7) The Company issued 16,900 shares of common stock and associated warrants for cash received of $1,690 in June 2015, at $0.19 per share. Also, the Company recorded contributed capital of $39,500 during the period related to the forfeiture of contractual compensation involving the Company’s two co-founders. |
NOTE 12 - COMMON STOCK TO BE IS
NOTE 12 - COMMON STOCK TO BE ISSUED | 6 Months Ended |
Jun. 30, 2015 | |
Common Stock To Be Isssued [Abstract] | |
Common Stock To Be Isssued [Text Block] | NOTE 12 – COMMON STOCK TO BE ISSUED During fiscal years 2014 and 2013, the Company received a series of small deposits from a single investor totaling $3,000 for the purchase of 30,000 shares of common stock shares and associated warrants. 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 provides a reconciliation of the transactions, number of shares and associated common stock values for the common stock to be issued at June 30, 2015 and December 31, 2014, respectively. At June 30, 2015 At December 31, 2014 Common stock to be issued per: # of Shares $ Value # of Shares $ Value Deposits received for common stock to be issued at $0.10 per share 30,000 3,000 180,000 18,000 Deposits received for common stock to be issued at $0.20 per share - - 120,000 24,000 Total number of shares and value 30,000 $ 3,000 300,000 $ 42,000 |
NOTE 13 - BASIC AND FULLY DILUT
NOTE 13 - BASIC AND FULLY DILUTED LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 13 – 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 June 30, 2015 and 2014, respectively, which are not included in the calculation of fully diluted loss per share because they are anti-dilutive, consisted of the following: 2015 2014 Convertible promissory notes outstanding 6,097,099 6,053,831 Warrants outstanding 22,047,175 18,244,842 Stock options outstanding 10,244,999 9,970,554 Preferred stock outstanding 15,100,000 15,100,000 Common stock to be issued 30,000 15,000 Dividends on preferred stock outstanding 5,989,315 5,804,867 Total Common Stock Equivalents 59,508,588 55,189,094 |
NOTE 14 - OUTSTANDING WARRANTS
NOTE 14 - OUTSTANDING WARRANTS | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 14 – OUTSTANDING WARRANTS A summary of the status of the Company’s outstanding warrants, and the changes during the six months ended June 30, 2015, is as follows: 2015 Weighted Average Description Shares Exercise Price Outstanding, January 1, 2015 22,371,795 $ 0.16 Granted 453,380 0.15 Expired/Cancelled (240,000 ) (0.20 ) Exercised (538,000 ) (0.20 ) Outstanding, June 30, 2015 22,047,175 $ 0.15 Exercisable, June 30, 2015 14,972,175 $ 0.18 For the six-months ended June 30, 2015, total shares issuable upon exercise of outstanding warrants decreased by a net of 324,620 shares for the reasons discussed below: 1) The Company issued warrants to purchase 30,000 shares of the Company’s common stock, with an exercise price of $0.10 per share, in connection with the issuance of 150,000 shares of its common stock for the purchase price of $15,000 in cash. 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 three-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 (See Note 11). 2) The Company issued warrants to purchase 3,380 shares of the Company’s common stock, with an exercise price of $0.19 per share, in connection with the issuance of 16,900 shares of its common stock for the purchase price of $1,690 in cash. 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 three-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 (See Note 11). 3) The Company issued warrants to purchase 65,000 shares of the Company’s common stock, with an exercise price of $0.40 per share, in connection with the conversion of a $65,000 convertible note. The term of the warrants is four years from date of issuance (See Note 11). 4) On March 23, 2015, the Company executed a letter agreement calling for a twelve-month consulting agreement with a third party service provider for comprehensive public relations services, with the service period beginning April 1, 2015. Either party may cancel the agreement upon the submission of a written notice at any time during the twelve-month period. Following the initial twelve-month period, the parties may renegotiate a new agreement. One element of compensation to the consultant is the grant of a five-year warrant to purchase 300,000 shares of the Company’s common stock, at an exercise price of $0.22 cents per share. The warrants shall vest on a 1/12th basis during a twelve-month period. The warrants were granted on May 15, 2015, and 1/12th of the warrants vested on June 15, 2015. The fair value of the warrant is $52,639, as determined by using the Black Scholes valuation method. This non-cash expense will be recorded ratably as a general and administrative expense in the Company’s Statement of Operations during the twelve-month vesting period. 5) On September 16, 2014, the Company executed a six-month consulting agreement with a third party service provider for consulting services to introduce the Company to potential customers for its suite of products and services. As a part of the agreement, the Company issued the service provider warrants to purchase 45,000 shares of the Company’s common stock at a price of $0.10 per share. The warrants vest in tranches of 15,000 per qualifying event, all of which are outlined in the agreement. Whatever portion of the warrants that are not vested on December 31, 2015 expire on that date. The fair value of the warrants is $17,453, as determined by using the Black Scholes valuation method. This non-cash expense will be recorded as a sales and marketing expense in the Company’s Statement of Operations on an allocated basis at the time a specific qualifying event occurs. 6) Warrants to purchase 240,000 shares of the Company’s common stock, with an exercise price of $0.20 per share, expired on March 31, 2015. The warrants were held by seven warrant holders. 7) The Company issued 538,000 shares of its common stock upon the exercise of outstanding warrants, for an aggregate purchase price of $107,600 (See Note 11). The following is a summary of the Company’s outstanding and exercisable warrants at June 30, 2015: Outstanding Exercisable Exercise Prices Weighted Average Number Outstanding at 6/30/15 Remaining Life (in yrs.) Weighted Average Exercise Price Number Exercisable at 6/30/15 Weighted Average Exercise Price $ 0.10 12,042,593 3.03 $ 0.10 5,242,593 $ 0.10 $ 0.11 - 0.19 427,380 3.23 $ 0.15 427,380 $ 0.15 $ 0.20 - 0.45 9,577,202 2.50 $ 0.22 9,302,202 $ 0.22 $ 0.10 - 0.45 22,047,175 2.80 $ 0.15 14,972,175 $ 0.18 |
NOTE 15 - EMPLOYEE OPTIONS
NOTE 15 - EMPLOYEE OPTIONS | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 15 – EMPLOYEE OPTIONS As of June 30, 2015, 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 20,000,000 shares of common stock authorized for issuance under the 2009 Long-Term Incentive Plan. The outstanding options have a term of ten years and vest primarily over periods ranging from three to five years. As of June 30, 2015, options to purchase 10,244,999 shares of the Company’s common stock were outstanding under the plan, of which options to purchase 8,212,496 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 three-month and six-month periods ended June 30, 2015, the Company recorded share-based compensation expense of $49,822 and $95,832, respectively. For the comparable periods in 2014, the Company recorded share-based compensation expense of $78,642 and $112,201, respectively. For the three-months ended March 31, 2015, the Company granted options to purchase 60,000 shares of its common stock with an exercise price of $0.10 per share to each of the Company’s three outside directors, who receive options as part of their annual compensation for serving on the Company’s Board of Directors. The total value of these stock options, utilizing the Black Scholes valuation method, was $55,179. The term of the stock options was ten years and vesting of the stock options was for a three-year period, with 33% vesting on the one-year anniversary of the grant date, and the remainder vesting ratably over the next eight quarters. Also, for the three-months ended March 31, 2015, the Company granted options to purchase 200,000 shares of its common stock with an exercise price of $0.10 per share to a new employee within the sales and marketing organization. The total value of the stock options, utilizing the Black Scholes valuation method, was $50,281. The term of the stock options is ten years, with a three year vesting period, 33% vesting on the one-year anniversary of the grant date, and the remainder vesting ratably over the next eight quarters. For the three-months ended June 30, 2015, the Company granted an option to purchase 50,000 shares of its common stock with an exercise price of $0.22 per share to a new member of the Company’s Board of Directors. The total value of the stock options, utilizing the Black Scholes valuation method, was $6,646, which will be recorded ratably during the related vesting period as a general and administrative expense in the Company’s Statement of Operations The term of the stock option grant is ten years, with a three year vesting period, 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 six-months ended June 30, 2015 under the Company’s 2009 Long-Term Incentive Plan is as follows: June 30, 2015 Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Life Outstanding at beginning of period 9,814,999 $ 0.09 $ 981,500 Granted 430,000 $ 0.37 $ – Exercised – $ 0.00 $ – Forfeited/ Cancelled – $ 0.00 $ – Outstanding at period end 10,244,999 $ 0.12 $ 981,500 6.58 Options vested and exercisable at period end 8,212,496 $ 0.09 $ 793,108 6.27 Weighted average grant-date fair value of options granted during the period $ 0.26 The following table summarizes significant ranges of outstanding and exercisable options as of June 30, 2015: Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $ 0.00 – $ 0.08 2,500,000 5.34 $ 0.08 2,437,500 $ 0.08 $ 0.09 – $ 0.42 7,744,999 6.30 $ 0.12 5,774,996 $ 0.10 10,244,999 8,212,496 A summary of the status of the Company’s non-vested option shares as of June 30, 2015 is as follows: Non-vested Shares Shares Weighted Average Grant-Date Fair Value Non-vested at January 1, 2015 2,291,676 $ 0.020 Granted 430,000 $ 0.26 Forfeited - $ 0.00 Vested (689,174 ) $ (0.13 ) Non-vested 2,032,503 $ 0.23 As of June 30, 2015, there was approximately $468,196 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 1.74 years. |
NOTE 16 - COMMITMENTS AND CONTI
NOTE 16 - COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 16 – COMMITMENTS AND CONTINGENCIES The following table summarizes the Company’s obligations to make future payments pursuant to certain contracts or arrangements as of June 30, 2015, as well as an estimate of the timing in which these obligations are expected to be satisfied: Payments Due by Period Contractual Obligations Total 2015 2016-2017 2018-2019 After 2019 Long-Term Debt Obligations $ 2,024,449 $ 1,090,249 $ 811,001 $ 123,199 $ - Capital Lease Obligations $ 31,368 $ 3,902 $ 17,479 $ 9,987 $ - Operating Lease Obligations $ 530,224 $ 48,031 $ 227,384 $ 178,297 $ 76,512 Purchase Obligations $ 311,850 $ 311,850 $ - $ - $ - Other Long-Term Liabilities $ 475,000 $ - $ 475,000 $ - $ - Total Contractual Obligations $ 3,372,891 $ 1,454,032 $ 1,530,864 $ 311,483 $ 76,512 With regards to purchase obligations listed above, the Company placed a demand purchase order for $433,130 with its VidTac contract manufacturer for finished units to be delivered ratably throughout an eight-month period commencing in May 2015. The purchase obligation required a 10% down payment at the time of order placement. At June 30, 2015, the Company had taken delivery of units related to this purchase obligation valued at approximately $87,000. The Company’s purchase order placed with the contract manufacturer is non-cancellable; however, there are some relief provisions: (1) the Company may change the original requested delivery dates if it 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 only be financially responsible for any materials that could not be returned by the contract manufacturer to its source suppliers. With regards to other long-term liabilities above, on February 3, 2014, the Company received a $475,000 advance from the City of Pharr, Texas in connection with a proposed EB-5 economic development program. Loan documents related to this advance were never finalized. Because the formal loan documents have not been executed as of the date of this report, the advance has been classified as an accrued expense on the Company’s Balance Sheet. The Company is now in discussions with the City of Pharr about converting the loan into an economic development grant. Compensation See ITEM 2, “Executive Compensation,” “Employment Contracts, Termination of Employment and Change in Control,” contained in the Company’s Schedule 14C Information Statement for the year ended December 31, 2014 and filed on March 2, 2015, 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 six months ended June 30, 2015 and 2014 totaled $20,000 for Mr. Chaney and $19,500 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 that is adverse to it, the Company’s financial position and prospects could be harmed. |
NOTE 17 - RELATED PARTY TRANSAC
NOTE 17 - RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 17 – RELATED PARTY TRANSACTION The Company received a $50,000 advance from Joe Alosa, a member of the board, in June 2015, without accompanying paperwork. The Company has recorded this advance as a 90-day note, assuming 8% interest per annum. In December 2014, the Company executed a capital lease involving two automobiles with an equipment financing company owned by one of the Company’s outside directors. The total value of the transactions was $35,098, consisting of: a term of four years; monthly lease payments during the term; and an effective annual interest rate of nine percent. 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. The note bears interest at 3.0% per annum, which is due upon maturity of the promissory note. In the fourth quarter of 2014, the Company repaid $17,500 of the principal amount of the note, leaving an outstanding balance of $7,500. The Company’s chief executive officer elected to extend the maturity date of this note to July 1, 2015. In July 2015, the $7,500 balance was used to partially pay for the exercise of a warrant to purchase 100,000 shares of the Company’s common stock with an exercise price of $0.20 per share, effective June 30, 2015. In August 2013, the Company’s chief executive officer loaned the Company $40,000, which was evidenced by a convertible promissory note bearing interest at 3% annually. The note was originally due March 31, 2014; however, the due date has been extended to March 31, 2016. The convertible note may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. In November 2013, the spouse of the Company’s chief executive officer loaned the Company $60,000, which was evidenced by a demand promissory note bearing interest at 3% annually. The demand note was replaced shortly thereafter with a convertible promissory note totaling $60,000, also bearing 3% annual interest and originally due March 31, 2014; however, the due date has been extended to March 31, 2016. The convertible note may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. In November 2013, the Company executed two short-term notes payable in the aggregate of $313,477 with an equipment financing company owned by one of the Company’s outside directors for the specific purpose of financing the purchase of certain third-party equipment to be sold to contracted customers. Both notes were to mature in May 2014, bear interest at 16% annually, are payable upon maturity, and are collateralized by the third-party equipment being procured. The maturity dates for both notes were formally extended until June 25, 2015. As of the date of this report, the financing company has verbally agreed to extend the term of the notes for another six-month period and is currently working with its affiliated banking partner for its documented concurrence. In December 2012, the Company’s chief executive officer loaned the Company $120,000, which was evidenced by a demand promissory note bearing interest at 3% annually. The demand note, including accrued interest, was replaced with a convertible promissory note totaling $120,534, also bearing 3% annual interest and due one year from its issuance. The convertible note may be converted at the holder’s option into shares of the Company’s common stock at a conversion price of $0.10 per share. During 2013, the Company’s chief executive officer agreed to extend the due date for this convertible promissory note to March 14, 2014. The Company’s chief executive officer subsequently extended the due date to March 31, 2016. |
NOTE 18 - SUBSEQUENT EVENTS
NOTE 18 - SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 18 – SUBSEQUENT EVENTS The Company has commenced the process of applying to be listed on the NASDAQ Capital Market, which it hopes to accomplish by the end of 2015. To that end, on July 6, 2015, the Company’s Board of Directors approved and submitted for the approval of the Company’s stockholders an amendment to its Amended and Restated Certificate of Incorporation, to effect a reverse stock split of its common stock by a ratio of not less than 1-for-25 and not more than 1-for-50 (the “Reverse Split”). On July 7, 2015, stockholders of record of approximately 50.8% of the Company’s outstanding voting stock executed and delivered to the Company a written consent in lieu of a stockholders’ meeting approving the Reverse Split. The Company raised net proceeds of $1,308,350 in a private financing from accredited individual and institutional investors during the month of July 2015, as part of a plan approved by the Board of Directors to raise $2,000,000 in capital funding. The funding is in the form of a convertible note which will be converted into shares of the Company’s common stock in connection with its listing on the NASDAQ Capital Market as discussed above. The proceeds from this financing will be used by the Company for repaying the remaining balances on the two bridge loans (See Note 8) and for general working capital purposes. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy 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, 2014 included in the Form 10-K filed on March 31, 2015. |
Reclassification, Policy [Policy Text Block] | b. Reclassifications Certain prior year items have been reclassified to conform to the current year presentation. These reclassifications had no impact on the Company’s financial statements. |
NOTE 5 - ACCOUNTS RECEIVABLE (T
NOTE 5 - ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The Company's accounts receivable, net, at June 30, 2015 and December 31, 2014, respectively, consisted of the following: Category June 30, 2015 December 31, 2014 Trade receivables $ 1,045,271 $ 1,101,279 Other receivables 21,937 53,227 Elimination of unpaid deferred revenue (627,470 ) (716,495 ) Allowance for doubtful accounts (214,389 ) (214,389 ) Accounts Receivable, net $ 225,349 $ 223,622 |
NOTE 7 - PREPAID EXPENSES AND27
NOTE 7 - PREPAID EXPENSES AND OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | The Company's prepaid expenses and other assets consisted of the following at June 30, 2015 and December 31, 2014, respectively: Category June 30, 2015 December 31, 2014 Prepaid Insurance $ 43,595 $ 44,101 Subscriptions 11,428 24,050 Vendor Prepayments 54,650 103,044 Deferred Charges 163,603 98,953 Total Prepaid Expenses and Other Assets $ 273,276 $ 270,148 |
NOTE 8 - NOTES PAYABLE (Tables)
NOTE 8 - NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The following table shows the components of notes payable, including three-year, 50% notes payable at June 30, 2015 and December 31, 2014, respectively: June 30, December 31, Loan Type 2015 2014 Bank $ 57,977 $ 84,406 Insurance 36,725 40,300 Other term notes 1,352,243 1,014,340 Total notes payable 1,446,945 1,139,046 Less: Current portion (1,181,241 ) (791,289 ) Long-term portion $ 265,704 $ 347,757 |
NOTE 9 - CONVERTIBLE NOTES PA29
NOTE 9 - CONVERTIBLE NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Convertible Note Payable [Abstract] | |
Convertible Debt [Table Text Block] | The following table shows the components of convertible notes payable at June 30, 2015 and December 31, 2014, respectively: June 30, December 31, 2015 2014 Total convertible notes payable at beginning of period $ 398,786 $ 873,263 Plus: additional notes payable 514,315 - Less: beneficial conversion feature (270,597 ) - Less: note conversions (65,000 ) (474,477 ) Convertible notes payable, net 577,504 398,786 Less: current portion, net (398,786 ) (9,608 ) Convertible notes payable, net, long-term portion $ 178,718 $ 389,178 |
NOTE 12 - COMMON STOCK TO BE 30
NOTE 12 - COMMON STOCK TO BE ISSUED (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Common Stock To Be Isssued [Abstract] | |
Schedule of Common Stock to Be Issued [Table Text Block] | The following table provides a reconciliation of the transactions, number of shares and associated common stock values for the common stock to be issued at June 30, 2015 and December 31, 2014, respectively. At June 30, 2015 At December 31, 2014 Common stock to be issued per: # of Shares $ Value # of Shares $ Value Deposits received for common stock to be issued at $0.10 per share 30,000 3,000 180,000 18,000 Deposits received for common stock to be issued at $0.20 per share - - 120,000 24,000 Total number of shares and value 30,000 $ 3,000 300,000 $ 42,000 |
NOTE 13 - BASIC AND FULLY DIL31
NOTE 13 - BASIC AND FULLY DILUTED LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and 2014, respectively, which are not included in the calculation of fully diluted loss per share because they are anti-dilutive, consisted of the following: 2015 2014 Convertible promissory notes outstanding 6,097,099 6,053,831 Warrants outstanding 22,047,175 18,244,842 Stock options outstanding 10,244,999 9,970,554 Preferred stock outstanding 15,100,000 15,100,000 Common stock to be issued 30,000 15,000 Dividends on preferred stock outstanding 5,989,315 5,804,867 Total Common Stock Equivalents 59,508,588 55,189,094 |
NOTE 14 - OUTSTANDING WARRANTS
NOTE 14 - OUTSTANDING WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015, is as follows: 2015 Weighted Average Description Shares Exercise Price Outstanding, January 1, 2015 22,371,795 $ 0.16 Granted 453,380 0.15 Expired/Cancelled (240,000 ) (0.20 ) Exercised (538,000 ) (0.20 ) Outstanding, June 30, 2015 22,047,175 $ 0.15 Exercisable, June 30, 2015 14,972,175 $ 0.18 |
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 June 30, 2015: Outstanding Exercisable Exercise Prices Weighted Average Number Outstanding at 6/30/15 Remaining Life (in yrs.) Weighted Average Exercise Price Number Exercisable at 6/30/15 Weighted Average Exercise Price $ 0.10 12,042,593 3.03 $ 0.10 5,242,593 $ 0.10 $ 0.11 - 0.19 427,380 3.23 $ 0.15 427,380 $ 0.15 $ 0.20 - 0.45 9,577,202 2.50 $ 0.22 9,302,202 $ 0.22 $ 0.10 - 0.45 22,047,175 2.80 $ 0.15 14,972,175 $ 0.18 |
NOTE 15 - EMPLOYEE OPTIONS (Tab
NOTE 15 - EMPLOYEE OPTIONS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 six-months ended June 30, 2015 under the Company’s 2009 Long-Term Incentive Plan is as follows: June 30, 2015 Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Life Outstanding at beginning of period 9,814,999 $ 0.09 $ 981,500 Granted 430,000 $ 0.37 $ – Exercised – $ 0.00 $ – Forfeited/ Cancelled – $ 0.00 $ – Outstanding at period end 10,244,999 $ 0.12 $ 981,500 6.58 Options vested and exercisable at period end 8,212,496 $ 0.09 $ 793,108 6.27 Weighted average grant-date fair value of options granted during the period $ 0.26 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes significant ranges of outstanding and exercisable options as of June 30, 2015: Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $ 0.00 – $ 0.08 2,500,000 5.34 $ 0.08 2,437,500 $ 0.08 $ 0.09 – $ 0.42 7,744,999 6.30 $ 0.12 5,774,996 $ 0.10 10,244,999 8,212,496 |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of the status of the Company’s non-vested option shares as of June 30, 2015 is as follows: Non-vested Shares Shares Weighted Average Grant-Date Fair Value Non-vested at January 1, 2015 2,291,676 $ 0.020 Granted 430,000 $ 0.26 Forfeited - $ 0.00 Vested (689,174 ) $ (0.13 ) Non-vested 2,032,503 $ 0.23 |
NOTE 16 - COMMITMENTS AND CON34
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015, as well as an estimate of the timing in which these obligations are expected to be satisfied: Payments Due by Period Contractual Obligations Total 2015 2016-2017 2018-2019 After 2019 Long-Term Debt Obligations $ 2,024,449 $ 1,090,249 $ 811,001 $ 123,199 $ - Capital Lease Obligations $ 31,368 $ 3,902 $ 17,479 $ 9,987 $ - Operating Lease Obligations $ 530,224 $ 48,031 $ 227,384 $ 178,297 $ 76,512 Purchase Obligations $ 311,850 $ 311,850 $ - $ - $ - Other Long-Term Liabilities $ 475,000 $ - $ 475,000 $ - $ - Total Contractual Obligations $ 3,372,891 $ 1,454,032 $ 1,530,864 $ 311,483 $ 76,512 |
NOTE 2 - NATURE OF ORGANIZATI35
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2015USD ($) | Jun. 30, 2015USD ($)$ / shares | May. 31, 2015USD ($) | Mar. 31, 2015USD ($)shares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Feb. 06, 2015$ / shares | Oct. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | |||||||||||||
Cash and Cash Equivalents, at Carrying Value | $ 142,604 | $ 142,604 | $ 142,604 | $ 142,604 | $ 109,736 | $ 587,459 | $ 414,051 | ||||||
Working Capital (Deficit) | (5,326,926) | (5,326,926) | (5,326,926) | (5,326,926) | |||||||||
Retained Earnings (Accumulated Deficit) | $ (24,957,953) | $ (24,957,953) | (24,957,953) | (24,957,953) | (22,908,272) | ||||||||
Booked Orders for New Customer Contracts Executed | $ 1,452,000 | ||||||||||||
Booked Orders for New Customer Contracts Executed, Percentage Increase Over Prior Period | 222.00% | ||||||||||||
Proceeds from Convertible Debt | $ 514,315 | 0 | $ 0 | ||||||||||
Class of Warrant or Rights, Exercised (in Shares) | shares | 40,000 | 538,000 | |||||||||||
Proceeds from Warrant Exercises | $ 8,000 | $ 107,600 | 0 | ||||||||||
Proceeds from Issuance of Debt | 389,834 | $ 700,000 | |||||||||||
Subsequent Event [Member] | |||||||||||||
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | |||||||||||||
Proceeds from Convertible Debt | $ 1,308,350 | ||||||||||||
Additional Funding Attempting to Secure | $ 2,000,000 | ||||||||||||
Convertible Debt [Member] | |||||||||||||
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | |||||||||||||
Proceeds from Convertible Debt | $ 30,000 | $ 484,315 | $ 514,315 | ||||||||||
Debt Instrument, Term | 3 years | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | 2.00% | 2.00% | |||||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | ||||||||
Debt Instrument, Face Amount | $ 750,000 | ||||||||||||
Convertible Debt [Member] | Subsequent Event [Member] | |||||||||||||
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | |||||||||||||
Debt Instrument, Description | The proceeds from this financing will be used by the Company for repaying the remaining balances on the two bridge loans (See Note 8) and for general working capital purposes. | ||||||||||||
Proceeds from Issuance of Debt | $ 1,308,350 | ||||||||||||
Potential Extension of Notes Payable [Member] | |||||||||||||
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | |||||||||||||
Number of Notes Payable | 2 | ||||||||||||
Debt Instrument, Description | Two holders of promissory notes representing an aggregate of $563,477 in principal have expressed their willingness to extend the due dates of their respective notes, one holder whose notes matured during the second quarter totaling $313,477 and another holder whose $250,000 note will mature in the third quarter of 2015. Both note holders have previously extended their respective notes. The Company is working with each lender to document these extensions at the date of this report. | ||||||||||||
Debt Instrument, Amount, Potential Modification of Maturity | $ 563,477 | $ 563,477 | $ 563,477 | $ 563,477 | |||||||||
Debt the Company is Attempting to Extend Maturity on [Member] | |||||||||||||
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | |||||||||||||
Proceeds from Issuance of Debt | 350,000 | ||||||||||||
Note Payable #1 [Member] | Bridge Loan [Member] | |||||||||||||
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | |||||||||||||
Debt Instrument, Term | 6 months | ||||||||||||
Debt Instrument, Face Amount | $ 300,000 | ||||||||||||
Note Payable #2 [Member] | Bridge Loan [Member] | |||||||||||||
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | |||||||||||||
Debt Instrument, Term | 4 months | ||||||||||||
Debt Instrument, Face Amount | $ 50,000 | 50,000 | 50,000 | 50,000 | |||||||||
Advance from the City of Pharr, TX [Member] | |||||||||||||
NOTE 2 - NATURE OF ORGANIZATION AND LIQUIDITY AND MANAGEMENT PLANS (Details) [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 475,000 | $ 475,000 | $ 475,000 | $ 475,000 |
NOTE 5 - ACCOUNTS RECEIVABLE (D
NOTE 5 - ACCOUNTS RECEIVABLE (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract] | ||
Trade receivables | $ 1,045,271 | $ 1,101,279 |
Other receivables | 21,937 | 53,227 |
Elimination of unpaid deferred revenue | (627,470) | (716,495) |
Allowance for doubtful accounts | (214,389) | (214,389) |
Accounts Receivable, net | $ 225,349 | $ 223,622 |
NOTE 6 - INVENTORY (Details)
NOTE 6 - INVENTORY (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Inventory Disclosure [Abstract] | |||
Inventory, Finished Goods, Net of Reserves | $ 246,077 | $ 305,693 | |
Increase (Decrease) in Inventories | 59,616 | $ (174,172) | |
Inventory Purchase Order | $ 433,000 | $ 87,000 | |
Inventory Related Text | The payment terms for this purchase order required a 10% down-payment at the time of order placement, followed by Net 30 days from invoice date once the units are delivered to the Company. |
NOTE 7 - PREPAID EXPENSES AND38
NOTE 7 - PREPAID EXPENSES AND OTHER ASSETS (Details) | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Disclosure Text Block Supplement [Abstract] | |
Proceeds from Deposits from Customers | $ 285,555 |
NOTE 7 - PREPAID EXPENSES AND39
NOTE 7 - PREPAID EXPENSES AND OTHER ASSETS (Details) - Schedule of Prepaid Expenses and Other Assets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Prepaid Expenses and Other Assets [Abstract] | ||
Prepaid Insurance | $ 43,595 | $ 44,101 |
Subscriptions | 11,428 | 24,050 |
Vendor Prepayments | 54,650 | 103,044 |
Deferred Charges | 163,603 | 98,953 |
Total Prepaid Expenses and Other Assets | $ 273,276 | $ 270,148 |
NOTE 8 - NOTES PAYABLE (Details
NOTE 8 - NOTES PAYABLE (Details) | Aug. 11, 2015USD ($) | Aug. 10, 2015USD ($) | Jun. 29, 2015USD ($) | May. 06, 2015USD ($) | Jul. 11, 2014USD ($) | Jun. 30, 2015USD ($) | May. 31, 2014USD ($) | Nov. 30, 2013 | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Notes Payable | $ 1,446,945 | $ 1,446,945 | $ 1,139,046 | |||||||||
Proceeds from Insurance Settlement, Investing Activities | $ 11,254 | |||||||||||
Amortization of Debt Discount (Premium) | 96,558 | $ 0 | ||||||||||
Repayments of Notes Payable | 15,000 | $ 0 | ||||||||||
Notes Payable, Other Payables [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Term | 11 months | |||||||||||
Debt Instrument, Face Amount | $ 33,319 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | |||||||||||
Debt Issuance Cost | $ 10,166 | |||||||||||
Director [Member] | Notes Payable, Other Payables [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Term | 90 days | 90 years | ||||||||||
Debt Instrument, Face Amount | $ 50,000 | $ 50,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||||||
Proceeds from Short-term Debt | $ 50,000 | |||||||||||
Number of Notes Payable | 2 | |||||||||||
Notes Payable, Other Payables [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Notes Payable | 1,446,945 | $ 1,446,945 | ||||||||||
Debt Instrument, Increase (Decrease), Net | (307,899) | |||||||||||
Debt Issued May 6, 2015 [Member] | Notes Payable, Other Payables [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Term | 6 months | |||||||||||
Debt Instrument, Face Amount | $ 300,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 35.00% | |||||||||||
Debt Instrument, Fee Amount | $ 999 | |||||||||||
Debt Instrument, Payment Terms | early payment options: 1-30 days - $360,000, 31-60 days - $366,000, 61-90 days - $375,000 and 91+ days - $405,000 | |||||||||||
Repayments of Short-term Debt | 39,375 | |||||||||||
Debt Issued May 6, 2015 [Member] | Notes Payable, Other Payables [Member] | Subsequent Event [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Repayments of Short-term Debt | $ 245,000 | |||||||||||
Debt Issued May 6, 2015 [Member] | Notes Payable, Other Payables [Member] | Debt Instrument, Frequency of Payment, Tranche One [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Frequency of Payment, Term | 20 days | |||||||||||
Debt Instrument, Periodic Payment | $ 2,000 | |||||||||||
Debt Instrument, Frequency of Periodic Payment | daily | |||||||||||
Debt Issued May 6, 2015 [Member] | Notes Payable, Other Payables [Member] | Debt Instrument, Frequency of Payment, Tranche Two [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Frequency of Payment, Term | 100 days | |||||||||||
Debt Instrument, Periodic Payment | $ 3,650 | |||||||||||
Debt Instrument, Frequency of Periodic Payment | daily | |||||||||||
Debt Issued June 29, 2015 [Member] | Notes Payable, Other Payables [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Term | 4 months | |||||||||||
Debt Instrument, Face Amount | $ 50,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 40.00% | |||||||||||
Debt Instrument, Frequency of Payment, Term | 88 days | |||||||||||
Debt Instrument, Periodic Payment | $ 795 | |||||||||||
Debt Instrument, Frequency of Periodic Payment | daily | |||||||||||
Debt Instrument, Fee Amount | $ 1,000 | |||||||||||
Debt Instrument, Payment Terms | early payment options: 1-30 days - $59,950 and 31+ days - $69,950 | |||||||||||
Repayments of Short-term Debt | 568 | |||||||||||
Debt Issued June 29, 2015 [Member] | Notes Payable, Other Payables [Member] | Subsequent Event [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Repayments of Short-term Debt | $ 42,718 | |||||||||||
Debt Issued May 2014 [Member] | Notes Payable, Other Payables [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Term | 36 months | |||||||||||
Debt Instrument, Face Amount | $ 607,500 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 50.00% | |||||||||||
Debt Instrument, Frequency of Periodic Payment | requires a specific repayment amount be made by the Company every six months, commencing six months after the date the note was issued | |||||||||||
Debt Instrument, Payment Terms | 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. | |||||||||||
Repayments of Short-term Debt | 15,000 | |||||||||||
Proceeds from Short-term Debt | $ 405,000 | |||||||||||
Number of Notes Payable | 8 | |||||||||||
Debt Instrument, Unamortized Discount | $ 202,500 | |||||||||||
Amortization of Debt Discount (Premium) | 33,756 | |||||||||||
Short-term Debt | $ 30,375 | 30,375 | ||||||||||
Debt Issued July 2014 [Member] | Notes Payable, Other Payables [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 60,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 15.00% | |||||||||||
Repayments of Short-term Debt | 30,745 | |||||||||||
Debt Instrument, Maturity Date | Apr. 11, 2015 | |||||||||||
Debt Issued July 2014 [Member] | Notes Payable, Other Payables [Member] | Debt Instrument, Frequency of Payment, Tranche One [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Frequency of Periodic Payment | monthly | |||||||||||
Debt Instrument, Periodic Payment, Interest | $ 750 | |||||||||||
Debt Issued July 2014 [Member] | Notes Payable, Other Payables [Member] | Debt Instrument, Frequency of Payment, Tranche Two [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Debt Instrument, Frequency of Payment, Term | 8 months | |||||||||||
Debt Instrument, Periodic Payment | $ 7,028 | |||||||||||
Debt Instrument, Frequency of Periodic Payment | monthly | |||||||||||
Debt Issued July 2014 [Member] | Notes Payable, Other Payables [Member] | Automobiles [Member] | ||||||||||||
NOTE 8 - NOTES PAYABLE (Details) [Line Items] | ||||||||||||
Repayments of Notes Payable | $ 149,001 |
NOTE 8 - NOTES PAYABLE (Detai41
NOTE 8 - NOTES PAYABLE (Details) - Schedule of Debt - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
NOTE 8 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ||
Notes Payable | $ 1,446,945 | $ 1,139,046 |
Less: Current portion | (1,181,241) | (791,289) |
Long-term portion | 265,704 | 347,757 |
Notes Payable to Banks [Member] | ||
NOTE 8 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ||
Notes Payable | 57,977 | 84,406 |
Notes Payable, Other Payables [Member] | ||
NOTE 8 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ||
Notes Payable | 1,446,945 | |
Loans Payable [Member] | ||
NOTE 8 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ||
Notes Payable | 1,352,243 | 1,014,340 |
Insurance Coverage [Member] | Notes Payable, Other Payables [Member] | ||
NOTE 8 - NOTES PAYABLE (Details) - Schedule of Debt [Line Items] | ||
Notes Payable | $ 36,725 | $ 40,300 |
NOTE 9 - CONVERTIBLE NOTES PA42
NOTE 9 - CONVERTIBLE NOTES PAYABLE (Details) | Feb. 06, 2015USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | May. 31, 2015$ / shares | Oct. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
NOTE 9 - CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | |||||||||
Convertible Notes Payable | $ 577,504 | $ 577,504 | $ 398,786 | $ 873,263 | |||||
Proceeds from Convertible Debt | 514,315 | $ 0 | 0 | ||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 270,597 | 0 | |||||||
Amortization of Debt Discount (Premium) | 96,558 | $ 0 | |||||||
Debt Conversion, Original Debt, Amount | $ 65,000 | $ 474,477 | |||||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | shares | 325,000 | ||||||||
Class of Warrant or Rights, Granted (in Shares) | shares | 453,380 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 0.20 | $ 0.38 | |||||||
Convertible Debt [Member] | |||||||||
NOTE 9 - CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | |||||||||
Convertible Notes Payable | 577,504 | $ 577,504 | |||||||
Debt Instrument, Increase (Decrease), Net | 178,718 | ||||||||
Debt Instrument, Face Amount | $ 750,000 | ||||||||
Proceeds from Convertible Debt | $ 30,000 | $ 484,315 | $ 514,315 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | |||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares | $ 0.22 | $ 0.22 | $ 0.22 | ||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 367,155 | ||||||||
Amortization of Debt Discount (Premium) | $ 96,558 | ||||||||
Debt Conversion, Original Debt, Amount | $ 65,000 | ||||||||
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | shares | 325,000 | ||||||||
Shares Issued, Price Per Share (in Dollars per share) | $ / shares | $ 0.20 | ||||||||
Class of Warrant or Rights, Granted (in Shares) | shares | 65,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 0.40 | ||||||||
Reclassified As Current [Member] | Convertible Debt [Member] | |||||||||
NOTE 9 - CONVERTIBLE NOTES PAYABLE (Details) [Line Items] | |||||||||
Debt Reclassified, Amount | $ 337,532 | ||||||||
Number of Notes Payable | 8 | ||||||||
Debt Instrument, Maturity Date | Mar. 31, 2016 |
NOTE 9 - CONVERTIBLE NOTES PA43
NOTE 9 - CONVERTIBLE NOTES PAYABLE (Details) - Schedule of Convertible Notes Payable - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of Convertible Notes Payable [Abstract] | |||
Total convertible notes payable at beginning of period | $ 398,786 | $ 873,263 | $ 873,263 |
Plus: additional notes payable | 514,315 | $ 0 | 0 |
Less: beneficial conversion feature | (270,597) | 0 | |
Less: note conversions | (65,000) | (474,477) | |
Convertible notes payable, net | 577,504 | 398,786 | |
Less: current portion, net | (398,786) | (9,608) | |
Convertible notes payable, net, long-term portion | $ 178,718 | $ 389,178 |
NOTE 10 - PREFERRED STOCK (Deta
NOTE 10 - PREFERRED STOCK (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 15 Months Ended | 24 Months Ended | ||||
Jun. 30, 2015 | May. 31, 2015 | Apr. 30, 2008 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2010 | Dec. 31, 2010 | |
NOTE 10 - PREFERRED STOCK (Details) [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 16,900 | 50,000 | 1,199,900 | ||||||
Preferred Stock, Accretion of Redemption Discount | $ 23,625 | $ 25,048 | $ 34,125 | $ 25,048 | |||||
Series A Preferred Stock [Member] | |||||||||
NOTE 10 - 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 | voting rights on a basis of 750 votes per share | ||||||||
Series B Preferred Stock [Member] | |||||||||
NOTE 10 - PREFERRED STOCK (Details) [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 375,000 | ||||||||
Proceeds from Issuance of Private Placement | $ 1,500,000 | ||||||||
Convertible Preferred Stock, Terms of Conversion | convertible into 40 shares of common stock per share, subject to adjustment for issuances by the Company of common stock at less than $0.10 per share | 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, iii) are convertible into 40 shares of common stock per share, subject to adjustment for 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. | ||||||||
Preferred Stock, Dividend Rate, Percentage | 7.00% | ||||||||
Preferred Stock, Election Rights | right to elect one member of the Company’s Board of Directors | ||||||||
Dividends, Preferred Stock | $ 52,068 | 52,068 | |||||||
Preferred Stock, Accretion of Redemption Discount | 34,125 | 27,020 | |||||||
Dividends Payable | $ 17,943 | $ 17,943 | $ 25,048 | $ 17,943 | $ 25,048 |
NOTE 11 - COMMON STOCK (Details
NOTE 11 - COMMON STOCK (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
NOTE 11 - COMMON STOCK (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 16,900 | 50,000 | 1,199,900 | |||
Proceeds from Warrant Exercises | $ 8,000 | $ 107,600 | $ 0 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.38 | $ 0.20 | ||||
Proceeds from Issuance or Sale of Equity | $ 1,690 | $ 5,000 | ||||
Debt Conversion, Converted Instrument, Shares Issued | 325,000 | |||||
Debt Conversion, Original Debt, Amount | $ 65,000 | $ 474,477 | ||||
Class of Warrant or Rights, Exercised | 40,000 | 538,000 | ||||
Warrants, Term of Warrants | 4 years | |||||
Sale of Stock, Price Per Share | $ 0.19 | $ 0.19 | ||||
Capital contributed through forfeiture of conractual compensation | $ 39,500 | $ 39,500 | ||||
Stock Issued for Exercise of Warrants [Member] | ||||||
NOTE 11 - COMMON STOCK (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 498,000 | |||||
Proceeds from Warrant Exercises | $ 99,600 | |||||
Stock Issued for Prior Warrant Exercises [Member] | ||||||
NOTE 11 - COMMON STOCK (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 120,000 | |||||
Proceeds from Warrant Exercises | $ 24,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.20 | $ 0.20 | ||||
Stock and Warrants Issued for Cash [Member] | ||||||
NOTE 11 - COMMON STOCK (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 150,000 | |||||
Proceeds from Issuance or Sale of Equity | $ 15,000 |
NOTE 12 - COMMON STOCK TO BE 46
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ||||
Proceeds from Issuance or Sale of Equity | $ 1,690 | $ 5,000 | ||
Warrants, Term of Warrants | 4 years | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.38 | $ 0.20 | ||
Sale of Stock and Warrant to be Issued [Member] | ||||
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) [Line Items] | ||||
Proceeds from Issuance or Sale of Equity | $ 3,000 | |||
Common Stock, Shares Subscribed but Unissued | 30,000 | |||
Warrants, Term of Warrants | 4 years | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.10 |
NOTE 12 - COMMON STOCK TO BE 47
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued [Line Items] | ||
Number of shares to be issued | 30,000 | 300,000 |
Value of shares to be issued | $ 3,000 | $ 42,000 |
Stock to be Issued for Cash at $0.10 [Member] | ||
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued [Line Items] | ||
Number of shares to be issued | 30,000 | 180,000 |
Value of shares to be issued | $ 3,000 | $ 18,000 |
Stock to be Issued for Cash at $0.20 [Member] | ||
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued [Line Items] | ||
Number of shares to be issued | 0 | 120,000 |
Value of shares to be issued | $ 0 | $ 24,000 |
Common Stock To Be Issued [Member] | ||
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued [Line Items] | ||
Number of shares to be issued | 30,000 | 300,000 |
Value of shares to be issued | $ 3,000 | $ 42,000 |
NOTE 12 - COMMON STOCK TO BE 48
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued (Parentheticals) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Stock to be Issued for Cash at $0.10 [Member] | ||
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued (Parentheticals) [Line Items] | ||
Per share | $ 0.10 | $ 0.10 |
Stock to be Issued for Cash at $0.20 [Member] | ||
NOTE 12 - COMMON STOCK TO BE ISSUED (Details) - Schedule of Common Stock to be Issued (Parentheticals) [Line Items] | ||
Per share | $ 0.20 | $ 0.20 |
NOTE 13 - BASIC AND FULLY DIL49
NOTE 13 - BASIC AND FULLY DILUTED LOSS PER SHARE (Details) - Schedule of Anti-Dilutive Common Stock Equivalents - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock Equivalents Outstanding | 59,508,588 | 55,189,094 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock Equivalents Outstanding | 6,097,099 | 6,053,831 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock Equivalents Outstanding | 22,047,175 | 18,244,842 |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock Equivalents Outstanding | 10,244,999 | 9,970,554 |
Preferred Stock Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock Equivalents Outstanding | 15,100,000 | 15,100,000 |
Stock to be issued [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock Equivalents Outstanding | 30,000 | 15,000 |
Preferred Stock Dividends [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock Equivalents Outstanding | 5,989,315 | 5,804,867 |
NOTE 14 - OUTSTANDING WARRANT50
NOTE 14 - OUTSTANDING WARRANTS (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015USD ($)$ / sharesshares | May. 31, 2015$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | |
NOTE 14 - OUTSTANDING WARRANTS (Details) [Line Items] | ||||||
Warrants Increase (Decrease), Net | (324,620) | |||||
Class of Warrant or Rights, Granted | 453,380 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 0.38 | $ 0.20 | ||||
Stock Issued During Period, Shares, New Issues | 16,900 | 50,000 | 1,199,900 | |||
Proceeds from Issuance or Sale of Equity (in Dollars) | $ | $ 1,690 | $ 5,000 | ||||
Warrants, Term of Warrants | 4 years | |||||
Debt Conversion, Original Debt, Amount (in Dollars) | $ | $ 65,000 | $ 474,477 | ||||
Warrants, Fair Value of Warrants, Granted (in Dollars) | $ | $ 19,164 | $ 0 | ||||
Class of Warrant or Rights, Exercised | 40,000 | 538,000 | ||||
Proceeds from Warrant Exercises (in Dollars) | $ | $ 8,000 | $ 107,600 | $ 0 | |||
Stock and Warrants Issued for Cash [Member] | ||||||
NOTE 14 - OUTSTANDING WARRANTS (Details) [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 150,000 | |||||
Proceeds from Issuance or Sale of Equity (in Dollars) | $ | $ 15,000 | |||||
Warrants Issued in Connection with Debt Conversion [Member] | ||||||
NOTE 14 - OUTSTANDING WARRANTS (Details) [Line Items] | ||||||
Class of Warrant or Rights, Granted | 65,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 0.40 | $ 0.40 | ||||
Warrants, Term of Warrants | 4 years | |||||
Debt Conversion, Original Debt, Amount (in Dollars) | $ | $ 65,000 | |||||
Warrants Expired [Member] | ||||||
NOTE 14 - OUTSTANDING WARRANTS (Details) [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | 0.20 | $ 0.20 | ||||
Class of Warrant or Rights, Expired | 240,000 | |||||
Number of Warrant Holders | 7 | |||||
Consulting Agreement with Public Relations Services [Member] | Equity Issued for Services [Member] | ||||||
NOTE 14 - OUTSTANDING WARRANTS (Details) [Line Items] | ||||||
Class of Warrant or Rights, Granted | 300,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | 0.22 | $ 0.22 | ||||
Warrants, Term of Warrants | 5 years | |||||
Class of Warrant or Right, Vesting Terms | The warrants shall vest on a 1/12th basis during a twelve-month period. | |||||
Warrants, Fair Value of Warrants, Granted (in Dollars) | $ | $ 52,639 | |||||
Consulting Agreement with Advisory Services [Member] | Equity Issued for Services [Member] | ||||||
NOTE 14 - OUTSTANDING WARRANTS (Details) [Line Items] | ||||||
Class of Warrant or Rights, Granted | 45,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 0.10 | |||||
Class of Warrant or Right, Vesting Terms | The warrants vest in tranches of 15,000 per qualifying event | |||||
Warrants, Expiration Date | Dec. 31, 2015 | |||||
Class of Warrant or Rights, Warrants Exercisable, Fair Value (in Dollars) | $ | $ 17,453 | |||||
Warrants Exercisable at $0.10 [Member] | Stock and Warrants Issued for Cash [Member] | ||||||
NOTE 14 - OUTSTANDING WARRANTS (Details) [Line Items] | ||||||
Class of Warrant or Rights, Granted | 30,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | 0.10 | $ 0.10 | ||||
Stock Issued During Period, Shares, New Issues | 150,000 | |||||
Proceeds from Issuance or Sale of Equity (in Dollars) | $ | $ 15,000 | |||||
Warrants, Term of Warrants | 4 years | |||||
Warrants Exercisable at $0.19 [Member] | Stock and Warrants Issued for Cash [Member] | ||||||
NOTE 14 - OUTSTANDING WARRANTS (Details) [Line Items] | ||||||
Class of Warrant or Rights, Granted | 3,380 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 0.19 | $ 0.19 | ||||
Stock Issued During Period, Shares, New Issues | 16,900 | |||||
Proceeds from Issuance or Sale of Equity (in Dollars) | $ | $ 1,690 | |||||
Warrants, Term of Warrants | 4 years |
NOTE 14 - OUTSTANDING WARRANT51
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Changes in Warrants - $ / shares | 1 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Jun. 30, 2015 | |
Schedule of Changes in Warrants [Abstract] | ||
Outstanding, January 1, 2015 | 22,371,795 | |
Outstanding, January 1, 2015 | $ 0.16 | |
Outstanding, June 30, 2015 | 22,047,175 | |
Outstanding, June 30, 2015 | $ 0.15 | |
Exercisable, June 30, 2015 | 14,972,175 | |
Exercisable, June 30, 2015 | $ 0.18 | |
Granted | 453,380 | |
Granted | $ 0.15 | |
Expired/Cancelled | (240,000) | |
Expired/Cancelled | $ (0.20) | |
Exercised | (40,000) | (538,000) |
Exercised | $ (0.20) |
NOTE 14 - OUTSTANDING WARRANT52
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range - $ / shares | 6 Months Ended | |||
Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants, Exercise Prices | $ 0.38 | $ 0.20 | ||
Warrants Outstanding, Weighted Average Exercise Price | $ 0.15 | $ 0.16 | ||
Warrants Outstanding, Weighted Average Number (in Shares) | 22,047,175 | 22,371,795 | ||
Warrants Exercisable (in Shares) | 14,972,175 | |||
Warrants Exercisable, Weighted Average Exercise Price | $ 0.18 | |||
Warrant exercise price 0.10 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants, Exercise Prices | 0.10 | |||
Warrants Outstanding, Weighted Average Exercise Price | $ 0.10 | |||
Warrants Outstanding, Weighted Average Number (in Shares) | 12,042,593 | |||
Warrants Outstanding, Remaining Life | 3 years 10 days | |||
Warrants Exercisable (in Shares) | 5,242,593 | |||
Warrants Exercisable, Weighted Average Exercise Price | $ 0.10 | |||
Warrant Exercise Price $0.11 - $0.19 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants Outstanding, Weighted Average Exercise Price | $ 0.15 | |||
Warrants Outstanding, Weighted Average Number (in Shares) | 427,380 | |||
Warrants Outstanding, Remaining Life | 3 years 83 days | |||
Warrants Exercisable (in Shares) | 427,380 | |||
Warrants Exercisable, Weighted Average Exercise Price | $ 0.15 | |||
Warrants Exercise Price $0.20-$0.45 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants Outstanding, Weighted Average Exercise Price | $ 0.22 | |||
Warrants Outstanding, Weighted Average Number (in Shares) | 9,577,202 | |||
Warrants Outstanding, Remaining Life | 2 years 6 months | |||
Warrants Exercisable (in Shares) | 9,302,202 | |||
Warrants Exercisable, Weighted Average Exercise Price | $ 0.22 | |||
Warrants Exercise Price $0.10-$0.45 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants Outstanding, Weighted Average Exercise Price | $ 0.15 | |||
Warrants Outstanding, Weighted Average Number (in Shares) | 22,047,175 | |||
Warrants Outstanding, Remaining Life | 2 years 292 days | |||
Warrants Exercisable (in Shares) | 14,972,175 | |||
Warrants Exercisable, Weighted Average Exercise Price | $ 0.18 | |||
Minimum [Member] | Warrant Exercise Price $0.11 - $0.19 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants, Exercise Prices | 0.11 | |||
Minimum [Member] | Warrants Exercise Price $0.20-$0.45 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants, Exercise Prices | 0.20 | |||
Minimum [Member] | Warrants Exercise Price $0.10-$0.45 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants, Exercise Prices | 0.10 | |||
Maximum [Member] | Warrant Exercise Price $0.11 - $0.19 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants, Exercise Prices | 0.19 | |||
Maximum [Member] | Warrants Exercise Price $0.20-$0.45 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants, Exercise Prices | 0.45 | |||
Maximum [Member] | Warrants Exercise Price $0.10-$0.45 [Member] | ||||
NOTE 14 - OUTSTANDING WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items] | ||||
Warrants, Exercise Prices | $ 0.45 |
NOTE 15 - EMPLOYEE OPTIONS (Det
NOTE 15 - EMPLOYEE OPTIONS (Details) | Sep. 02, 2009shares | Jun. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014$ / sharesshares |
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 10,244,999 | 10,244,999 | 9,814,999 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares) | 8,212,496 | 8,212,496 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.12 | $ 0.12 | $ 0.09 | ||||
Share-based Compensation (in Dollars) | $ | $ 95,832 | $ 112,201 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 430,000 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.37 | ||||||
2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 20,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 10,244,999 | 10,244,999 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares) | 8,212,496 | 8,212,496 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.09 | $ 0.09 | |||||
Share-based Compensation (in Dollars) | $ | $ 49,822 | $ 78,642 | $ 95,832 | $ 112,201 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | $ | $ 468,196 | $ 468,196 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 270 days | ||||||
Options Issued to Each Director [Member] | 2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 60,000 | ||||||
Options Issued to Directors [Member] | 2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
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 | 24 months | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 50,000 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.22 | $ 0.10 | |||||
Number of Directors | 3 | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount (in Dollars) | $ | $ 6,646 | $ 55,179 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | for a three-year period, with 33% vesting on the one-year anniversary of the grant date, and the remainder vesting ratably over the next eight quarters | ||||||
Options Issued to New Employees [Member] | 2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 200,000 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 0.10 | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount (in Dollars) | $ | $ 50,281 | ||||||
Share-based Compensation Award, Tranche Three [Member] | 2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Share-based Compensation Award, Tranche One [Member] | 2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||
Share-based Compensation Award, Tranche One [Member] | Options Issued to Directors [Member] | 2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.00% | ||||||
Share-based Compensation Award, Tranche One [Member] | Options Issued to New Employees [Member] | 2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | three year vesting period, 33% vesting on the one-year anniversary of the grant date, and the remainder vesting ratably over the next eight quarters | ||||||
Share-based Compensation Award, Tranche Two [Member] | Options Issued to Directors [Member] | 2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 24 months | ||||||
Share-based Compensation Award, Tranche Two [Member] | Options Issued to New Employees [Member] | 2009 Long Term Incentive Plan [Member] | |||||||
NOTE 15 - EMPLOYEE OPTIONS (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 24 months |
NOTE 15 - EMPLOYEE OPTIONS (D54
NOTE 15 - EMPLOYEE OPTIONS (Details) - Summary of Stock Option Activity - Jun. 30, 2015 - USD ($) | Total |
Summary of Stock Option Activity [Abstract] | |
Options (in Shares) | 10,244,999 |
Weighted average exercise price | $ 0.12 |
Aggregate Intrinsic Value (in Dollars) | $ 981,500 |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 6 years 211 days |
Options vested and exercisable at period end (in Shares) | 8,212,496 |
Options vested and exercisable at period end | $ 0.09 |
Options vested and exercisable at period end (in Dollars) | $ 793,108 |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1 | 6 years 98 days |
Weighted average grant-date fair value of options granted during the period | $ 0.26 |
Granted (in Shares) | 430,000 |
Granted | $ 0.37 |
Exercised | $ 0 |
Exercised (in Shares) | 0 |
Forfeited/ Cancelled (in Shares) | 0 |
Forfeited/ Cancelled | $ 0 |
NOTE 15 - EMPLOYEE OPTIONS (D55
NOTE 15 - EMPLOYEE OPTIONS (Details) - Summary of Outstanding and Exercisable Options - Jun. 30, 2015 - $ / shares | Total |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding (in Shares) | 10,244,999 |
Options Exercisable (in Shares) | 8,212,496 |
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 |
Options Outstanding, Weighted Average Remaining Life | 5 years 124 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.08 |
Options Exercisable (in Shares) | 2,437,500 |
Options Exercisable, Weighted Average Exercise Price | $ 0.08 |
Options, Range of Exercise Prices $0.09-$0.39 [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 | $ 0.42 |
Options Outstanding (in Shares) | 7,744,999 |
Options Outstanding, Weighted Average Remaining Life | 6 years 109 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.12 |
Options Exercisable (in Shares) | 5,774,996 |
Options Exercisable, Weighted Average Exercise Price | $ 0.10 |
NOTE 15 - EMPLOYEE OPTIONS (D56
NOTE 15 - EMPLOYEE OPTIONS (Details) - Summary of Non-vested Shares - $ / shares | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Non-vested Shares [Abstract] | |
Non-vested at January 1, 2015 | 2,291,676 |
Non-vested at January 1, 2015 | $ 0.020 |
Granted | 430,000 |
Granted | $ 0.26 |
Forfeited | 0 |
Forfeited | $ 0 |
Vested | (689,174) |
Vested | $ (0.13) |
Non-vested | 2,032,503 |
Non-vested | $ 0.23 |
NOTE 16 - COMMITMENTS AND CON57
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||
Capital contributed through forfeiture of conractual compensation | $ 39,500 | $ 39,500 |
Purchase Commitment [Member] | ||
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||
Purchase Commitment, Amount | $ 433,130 | |
Other Commitments, Description | The purchase obligation required a 10% down payment at the time of order placement. | |
Purchase Obligation, Inventory Received, Value | $ 87,000 | |
Advance from the City of Pharr, TX [Member] | ||
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||
Proceeds from Issuance of Other Long-term Debt | 475,000 | |
Board of Directors Chairman [Member] | ||
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||
Capital contributed through forfeiture of conractual compensation | 20,000 | |
President [Member] | ||
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | ||
Capital contributed through forfeiture of conractual compensation | $ 19,500 |
NOTE 16 - COMMITMENTS AND CON58
NOTE 16 - COMMITMENTS AND CONTINGENCIES (Details) - Schedule of Future Minimum Payments for Contractual Obligations | Jun. 30, 2015USD ($) |
Schedule of Future Minimum Payments for Contractual Obligations [Abstract] | |
Long-Term Debt Obligations | $ 2,024,449 |
Long-Term Debt Obligations | 1,090,249 |
Long-Term Debt Obligations | 811,001 |
Long-Term Debt Obligations | 123,199 |
Long-Term Debt Obligations | 0 |
Capital Lease Obligations | 31,368 |
Capital Lease Obligations | 3,902 |
Capital Lease Obligations | 17,479 |
Capital Lease Obligations | 9,987 |
Capital Lease Obligations | 0 |
Operating Lease Obligations | 530,224 |
Operating Lease Obligations | 48,031 |
Operating Lease Obligations | 227,384 |
Operating Lease Obligations | 178,297 |
Operating Lease Obligations | 76,512 |
Purchase Obligations | 311,850 |
Purchase Obligations | 311,850 |
Purchase Obligations | 0 |
Purchase Obligations | 0 |
Purchase Obligations | 0 |
Other Long-Term Liabilities | 475,000 |
Other Long-Term Liabilities | 0 |
Other Long-Term Liabilities | 475,000 |
Other Long-Term Liabilities | 0 |
Other Long-Term Liabilities | 0 |
Total Contractual Obligations | 3,372,891 |
Total Contractual Obligations | 1,454,032 |
Total Contractual Obligations | 1,530,864 |
Total Contractual Obligations | 311,483 |
Total Contractual Obligations | $ 76,512 |
NOTE 17 - RELATED PARTY TRANS59
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) | Feb. 28, 2014USD ($) | Nov. 30, 2013USD ($)$ / shares | Aug. 31, 2013USD ($)$ / shares | Dec. 31, 2012USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Nov. 30, 2013USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2012USD ($)$ / shares | May. 31, 2015$ / shares |
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Capital Lease Obligations | $ 31,368 | $ 31,368 | ||||||||||||
Repayments of Notes Payable | $ 15,000 | $ 0 | ||||||||||||
Class of Warrant or Rights, Exercised (in Shares) | shares | 40,000 | 538,000 | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 0.20 | $ 0.20 | $ 0.38 | |||||||||||
Notes Payable, Other Payables [Member] | ||||||||||||||
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 33,319 | $ 33,319 | ||||||||||||
Debt Instrument, Term | 11 months | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | ||||||||||||
Director [Member] | Notes Payable, Other Payables [Member] | ||||||||||||||
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 50,000 | $ 50,000 | ||||||||||||
Debt Instrument, Term | 90 days | 90 years | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||||||||
Number of Notes Payable | 2 | |||||||||||||
Director [Member] | Automobiles [Member] | Capital Lease Arrangement [Member] | ||||||||||||||
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Debt Instrument, Term | 4 years | |||||||||||||
Number of Automobiles Under Capital Lease | 2 | |||||||||||||
Capital Lease Obligations | $ 35,098 | $ 35,098 | ||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.00% | 9.00% | ||||||||||||
Chief Executive Officer [Member] | ||||||||||||||
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Class of Warrant or Rights, Exercised (in Shares) | shares | 100,000 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares | $ 0.20 | $ 0.20 | ||||||||||||
Chief Executive Officer [Member] | Notes Payable, Other Payables [Member] | ||||||||||||||
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 25,000 | $ 120,000 | $ 120,000 | |||||||||||
Debt Instrument, Term | 60 days | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | 3.00% | |||||||||||
Repayments of Notes Payable | $ 17,500 | |||||||||||||
Notes Payable, Related Parties | $ 7,500 | $ 7,500 | ||||||||||||
Debt Instrument, Maturity Date | Jul. 1, 2015 | |||||||||||||
Debt Instrument, Portion used to Pay for Exercise of Warrants | $ 7,500 | |||||||||||||
Debt Instrument, Description | The demand note, including accrued interest, was replaced with a convertible promissory note | |||||||||||||
Chief Executive Officer [Member] | Convertible Notes Payable [Member] | ||||||||||||||
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 40,000 | $ 120,534 | $ 120,534 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | 3.00% | |||||||||||
Debt Instrument, Maturity Date | Mar. 31, 2016 | Mar. 31, 2016 | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | |||||||||||
Immediate Family Member of Management or Principal Owner [Member] | Notes Payable, Other Payables [Member] | ||||||||||||||
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 60,000 | $ 60,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | ||||||||||||
Debt Instrument, Description | The demand note was replaced shortly thereafter with a convertible promissory note | |||||||||||||
Immediate Family Member of Management or Principal Owner [Member] | Convertible Notes Payable [Member] | ||||||||||||||
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 60,000 | $ 60,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | ||||||||||||
Debt Instrument, Maturity Date | Mar. 31, 2016 | |||||||||||||
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares | $ 0.10 | $ 0.10 | ||||||||||||
Affiliated Entity [Member] | Notes Payable, Other Payables [Member] | ||||||||||||||
NOTE 17 - RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 313,477 | $ 313,477 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 16.00% | 16.00% | ||||||||||||
Debt Instrument, Maturity Date | Jun. 25, 2015 | |||||||||||||
Debt Instrument, Maturity Date, Description | May 2,014 | |||||||||||||
Debt Instrument, Collateral | collateralized by the third-party equipment being procured |
NOTE 18 - SUBSEQUENT EVENTS (De
NOTE 18 - SUBSEQUENT EVENTS (Details) - USD ($) | Jul. 06, 2015 | Jul. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Oct. 31, 2014 |
NOTE 18 - SUBSEQUENT EVENTS (Details) [Line Items] | |||||
Proceeds from Issuance of Debt | $ 389,834 | $ 700,000 | |||
Subsequent Event [Member] | |||||
NOTE 18 - SUBSEQUENT EVENTS (Details) [Line Items] | |||||
Stockholders' Equity, Reverse Stock Split | on July 6, 2015, the Company’s Board of Directors approved and submitted for the approval of the Company’s stockholders an amendment to its Amended and Restated Certificate of Incorporation, to effect a reverse stock split of its common stock by a ratio of not less than 1-for-25 and not more than 1-for-50 (the “Reverse Split”). On July 7, 2015, stockholders of record of approximately 50.8% of the Company’s outstanding voting stock executed and delivered to the Company a written consent in lieu of a stockholders’ meeting approving the Reverse Split. The Reverse Split can be effected at any time prior to December 31, 2015, at a ratio to be set at a whole number within the above range, as determined by the Board of Directors in its sole discretion. Further, the Board of Directors may, in its sole discretion, determine to not effect the Reverse Split. The Company believes that the Reverse Split will enhance its ability to obtain an initial listing on The NASDAQ Capital Market. The NASDAQ Capital Market requires, among other items, an initial bid price of at least $4.00 per share and following initial listing, maintenance of a continued price of at least $1.00 per share. | ||||
Convertible Debt [Member] | |||||
NOTE 18 - SUBSEQUENT EVENTS (Details) [Line Items] | |||||
Debt Instrument, Face Amount | $ 750,000 | ||||
Convertible Debt [Member] | Subsequent Event [Member] | |||||
NOTE 18 - SUBSEQUENT EVENTS (Details) [Line Items] | |||||
Proceeds from Issuance of Debt | $ 1,308,350 | ||||
Debt Instrument, Description | The proceeds from this financing will be used by the Company for repaying the remaining balances on the two bridge loans (See Note 8) and for general working capital purposes. | ||||
Minimum [Member] | Subsequent Event [Member] | |||||
NOTE 18 - SUBSEQUENT EVENTS (Details) [Line Items] | |||||
Stockholders' Equity, Reverse Stock Split | 1-for-25 | ||||
Maximum [Member] | Subsequent Event [Member] | |||||
NOTE 18 - SUBSEQUENT EVENTS (Details) [Line Items] | |||||
Stockholders' Equity, Reverse Stock Split | 1-for-50 | ||||
Maximum [Member] | Convertible Debt [Member] | Subsequent Event [Member] | |||||
NOTE 18 - SUBSEQUENT EVENTS (Details) [Line Items] | |||||
Debt Instrument, Face Amount | $ 2,000,000 |
Uncategorized Items - coyn-2015
Label | Element | Value |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue | $ 981,500 |