Thinspace Technology (THNS) 10-Q 28 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 17, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Thinspace Technology, Inc.
Entity Central Index Key	1,393,935
Amendment Flag	false
Trading Symbol	thns
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		362,227,188

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 94,259	$ 135,965
Accounts receivable	86,717	158,329
Inventory	88,383	100,637
Prepaid expenses and other current assets	16,116	17,058
Total current assets	285,475	411,989
Fixed assets, net of accumulated depreciation of $83,805 and $73,396, respectively	21,868	31,272
Intangible assets, net of accumulated amortization of $525,988 and $489,221, respectively	113,316	142,799
Other assets	115,748	104,683
Total assets	536,407	690,743
Current liabilities:
Accounts payable and accrued expenses	1,673,165	1,627,641
Income taxes payable	29,000	29,000
Deferred revenue	534,886	773,163
Loans and notes payable, current portion	476,284	$ 469,400
Convertible notes payable, net of discount of $295,440 and $0, respectively	119,560
Derivative liabilities	41,710,904	$ 12,173,986
Total current liabilities	44,543,799	15,073,190
Deferred revenue, long term	187,034	202,826
Convertible notes payable, net of discount of $1,506,626 and $1,247,035, respectively	$ 1,094,123	849,396
Loans payable		13,953
Total liabilities	$ 45,824,956	16,139,365
Stockholders' deficit
Common stock authorized 500,000,000 shares, $0.001 par value, 203,024,028 and 98,381,445 shares issued and outstanding, respectively	203,024	98,381
Additional paid in capital	8,514,339	6,890,970
Accumulated deficit	(53,988,195)	(22,414,873)
Accumulated other comprehensive income (loss)	(18,464)	(23,847)
Total stockholders' deficit	(45,288,549)	(15,448,622)
Total liabilities and stockholders' deficit	$ 536,407	$ 690,743
Preferred Stock, Undesignated
Stockholders' deficit
Preferred stock, value
Preferred Stock, Series B
Stockholders' deficit
Preferred stock, value	$ 75	$ 75
Preferred Stock,Series C
Stockholders' deficit
Preferred stock, value	$ 672	$ 672

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accumulated depreciation (in dollars)	$ 83,805	$ 73,396
Accumulated amortization (in dollars)	525,988	489,221
Discount on convertible notes payable, current	295,440	0
Discount on convertible notes payable	$ 1,506,626	$ 1,247,035
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	203,024,028	98,381,445
Common stock, shares outstanding	203,024,028	98,381,445
Preferred Stock, Undesignated
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	49,253,000	49,253,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Preferred Stock, Series B
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	75,000	75,000
Preferred stock, shares issued	75,000	75,000
Preferred stock, shares outstanding	75,000	75,000
Series C Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	672,000	672,000
Preferred stock, shares issued	672,000	672,000
Preferred stock, shares outstanding	672,000	672,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Revenues	$ 332,693	$ 2,593,997	$ 1,122,999	$ 3,378,605
Cost of goods sold	86,827	1,728,552	449,093	1,844,231
Gross profit	245,866	865,445	673,906	1,534,374
Operating expense:
Selling, general and administrative	908,974	2,060,561	1,905,833	3,249,135
Depreciation and amortization	19,811	20,251	39,440	40,035
Total operating expense	928,785	2,080,812	1,945,273	3,289,170
Loss from operations	(682,919)	(1,215,367)	(1,271,367)	(1,754,796)
Gain (loss) on change in fair value of derivative liability	(28,814,582)	$ 22,862,151	(27,643,262)	1,109,207
Gain on conversion of debt	22,657		(22,657)	155,129
Interest expense	(1,828,444)	$ (1,686,014)	(2,681,350)	(5,470,899)
Income (loss) before provision for income taxes	$ (31,303,288)	$ 19,960,770	$ (31,573,322)	$ (5,961,359)
Provision for income taxes
Net income (loss)	$ (31,303,288)	$ 19,960,770	$ (31,573,322)	$ (5,961,359)
Preferred dividend	(1,875)	(1,875)	(3,750)	(3,750)
Net income (loss) attributable to common shareholders	$ (31,305,163)	$ 19,958,895	$ (31,577,072)	$ (5,965,109)
Basic and diluted income (loss) per share	$ (0.27)	$ 0.22	$ (0.30)	$ (0.07)
Weighted average shares outstanding, Basic and diluted	114,109,046	92,334,401	106,288,692	91,140,929
Comprehensive income (loss):
Net income (loss)	$ (31,303,288)	$ 19,960,770	$ (31,573,322)	$ (5,961,359)
Foreign currency translation adjustments	(11,417)	(11,141)	5,383	(18,238)
Comprehensive income (loss)	$ (31,314,705)	$ 19,949,629	$ (31,567,939)	$ (5,979,597)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (31,573,322)	$ (5,961,359)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	$ 39,440	40,035
Amortization of prepaid stock based compensation		625,000
Stock based compensation	$ 196,893	560,966
Gain on conversion of debt	22,657	(155,129)
Change in fair value of derivative liability	27,643,262	(1,109,207)
Amortization of debt discount	2,531,418	5,036,817
Changes in operating assets and liabilities:
Accounts receivable	68,226	122,091
Inventory	12,254	(1,302,480)
Prepaid expenses and other current assets	1,118	(314,108)
Other assets	(6,647)	(7,762)
Accounts payable and accrued expenses	93,093	1,663,239
Deferred revenue	(254,616)	(294,112)
Net cash used in operating activities	$ (1,226,224)	(1,096,009)
Cash flows from investing activities:
Cash paid for fixed assets		(6,529)
Net cash used in investing activities		(6,529)
Cash flows from financing activities:
Proceeds from sale of preferred stock		472,000
Proceeds from notes payable	$ 1,285,650	961,000
Repayments of notes payable	(92,400)	(75,000)
Repayment of loan	(7,121)	$ (7,654)
Payment of accrued preferred dividends	$ (11,050)
Advances from related parties		$ 21,000
Repayments to related parties		(118,631)
Net cash provided by financing activities	$ 1,175,079	1,252,715
Effect of exchange rate changes on cash	9,439	6,322
Net (decrease) increase in cash	(41,706)	156,499
Cash, beginning of period	135,965	341,031
Cash, end of period	94,259	497,530
Supplemental Schedule of Cash Flow Information:
Cash paid for interest	102,100	254,618
Non-cash investing and financing activities:
Derivative liability of debt issued	2,909,127	4,378,443
Fair value of common stock issued upon conversion of notes and accrued interest	1,534,869	1,012,968
Note payable converted to common stock	351,232	191,184
Accrued interest converted to common stock	54,050	11,410
Derivative liability extinguished upon conversion of debt	$ 1,328,757	1,892,000
Common stock issued as payment of prepaid consulting fees		$ 1,250,000

Organization and Line of Busine

Organization and Line of Business	6 Months Ended
	Jun. 30, 2015
Organization and Line of Business [Abstract]
ORGANIZATION AND LINE OF BUSINESS	NOTE 1 - ORGANIZATION AND LINE OF BUSINESS COMPANY OVERVIEW Nature of Operations THINSPACE TECHNOLOGY, INC. (formerly Vanity Events Holding, Inc.) (the “Company”, “Thinspace” “we”, “us” or “our”), was organized as a Delaware corporation on August 25, 2004, and is a holding company. We are a cloud computing company that develops software productivity solutions that allow our customers secure access to centrally managed desktop or software applications and to work and collaborate from anywhere, accessing enterprise apps and data on any of the latest devices, as easily as they would in their own office- simply and securely. The Company’s principal activity is the development and sale of network software. The company has a desktop virtualization solution suite, named skySpace, offering 5 key products: • skyDesk - a simple management software solution for Microsoft remote desktop users. • skyGate – software solution that allows secure remote access to applications and data from outside of the corporate network. • skyView – provides access to applications or Windows desktops from a browser on any device, including iPad, iPhone or Android tablet or Smartphone. • skyDirect – a virtual desktop infrastructure (VDI) software solution that allows secure fast access to hosted virtual desktops. • skyPoint – A branded hardware thin client endpoint aimed for the enterprise and corporate market. We sell directly to independent software vendors and Application Service Providers (ASPs) and to end users through a chain of distributors and resellers. Our larger customers are predominantly large businesses based around the world, with a concentration in North America, the Far East and India. Our operating subsidiaries are Thinspace Technology Ltd (“Thinspace UK”), organized and operating in the United Kingdom, and Thinspace Technology Ltd. (“Thinspace US”), a Nevada corporation formed on August 24, 2010 and operating in the states of Florida and Texas. BASIS OF PRESENTATION AND GOING CONCERN Basis of Presentation The accompanying condensed consolidated financial statements are unaudited. The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These interim financial statements as of and for the three and six months ended June 30, 2015 and 2014 are unaudited; however, in the opinion of management, such statements include all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, results of operations and cash flows of the Company for the periods presented. The results for the three and six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any future period. All references to June 30, 2015 and 2014 in these footnotes are unaudited. These unaudited condensed financial statements should be read in conjunction with our audited financial statements and the notes thereto for the year ended December 31, 2014, included in the Company's annual report on Form 10-K filed with the SEC on March 31, 2015. The condensed balance sheet as of December 31, 2014 has been derived from the audited financial statements at that date but does not include all disclosures required by the accounting principles generally accepted in the United States of America. Going Concern We incurred a net loss of $31,573,322 for the six months ended June 30, 2015. As of June 30, 2015 we have negative working capital of $44,258,324 and a stockholders’ deficit of $45,288,549. As a result, there is substantial doubt about the Company’s ability to continue as a going concern at June 30, 2015. Management has implemented its business plan to add new products, increase marketing activities and, as a result, increase revenue. Our ability to continue to implement our current business plan and continue as a going concern ultimately is dependent upon our ability to obtain additional equity or debt financing, attain further operating efficiencies and to achieve profitable operations. There can be no assurances that funds will be available to the Company when needed or, if available, that such funds will be available under favorable terms. In the event that the Company is unable to generate adequate revenues to cover expenses and cannot obtain additional funds in the near future, the Company may seek protection under bankruptcy laws. To date, management has not considered this alternative, nor does management view it as a likely occurrence, since the Company is progressing with various potential sources of new capital and we anticipate a successful outcome from these activities. However, capital markets remain difficult and there can be no certainty of a successful outcome from these activities. The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business and does not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The unaudited condensed consolidated financial statements include the accounts of Thinspace Technology, Inc. and its wholly-owned subsidiaries, Thinspace UK and Thinspace US. All material inter-company accounts and transactions have been eliminated. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS For the purpose of the statements of cash flows, we consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. ACCOUNTS RECEIVABLE REVENUE RECOGNITION The Company is party to certain volume licensing arrangements that include a perpetual license for current products combined with rights to receive unspecified future versions of software products, which the Company has determined are additional software products and are therefore accounted for as subscriptions, with billings recorded as unearned revenue and recognized as revenue ratably over the coverage period. Arrangements that include term based licenses for current products with the right to use unspecified future versions of the software during the coverage period are also accounted for as subscriptions, with revenue recognized ratably over the coverage period. Revenue from cloud-based services arrangements that allow for the use of a hosted software product or service over a contractually determined period of time without taking possession of software are accounted for as subscriptions with billings recorded as unearned revenue and recognized as revenue ratably over the coverage period beginning on the date the service is made available to customers. Some volume licensing arrangements include time-based subscriptions for cloud-based services and software offerings that are accounted for as subscriptions. These arrangements are considered multiple element arrangements. However, because all elements are accounted for as subscriptions and have the same coverage period and delivery pattern, they have the same revenue recognition timing. DEFERRED REVENUE Deferred revenue related to support and maintenance is recorded in a manner consistent with the Company’s revenue recognition policy. The Company typically enters into one-year upgrade and maintenance contracts with its customers. The upgrade and maintenance contracts are generally paid in advance but can be billed monthly or quarterly. The Company defers such payments and recognizes revenue ratably over the contract period. INVENTORY The Company values its inventory at the lower of cost (first-in, first-out) or market. The Company uses estimates and judgments regarding the valuation of inventory to properly value inventory. Inventory adjustments are made for the difference between the cost of the inventory and the estimated realizable value and charged to cost of goods sold in the period in which the facts that give rise to the adjustments become known. FAIR VALUE OF FINANCIAL INSTRUMENTS Our short-term financial instruments, including cash, accounts receivable and accounts payable and accrued expenses consist primarily of instruments without extended maturities, the fair value of which, based on management’s estimates, reasonably approximate their book value. The fair value of our notes and advances payable is based on management estimates and reasonably approximates their book value based on their terms. Fair value measurements ASC 820 “Fair Value Measurements and Disclosure” establishes a framework for measuring fair value and expands disclosure about fair value measurements. ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In accordance with ASC 820, the following table represents the Company's fair value hierarchy for its financial assets and (liabilities) measured at fair value on a recurring basis as of June 30, 2015: Level 1 Level 2 Level 3 Total Liabilities Conversion derivative liabilities $ — $ — $ 41,710,904 $ 41,710,904 Total Liabilities $ — $ — $ 41,710,904 $ 41,710,904 The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities (conversion and warrant derivative liabilities) for the six months ended June 30, 2015. 2015 Balance at beginning of year $ 12,173,986 Additions and modifications to derivative instruments 3,222,413 Change in fair value of derivative liabilities 27,643,262 Reclassification upon conversion of debt (1,328,757 ) Balance at end of period $ 41,710,904 The following is a description of the valuation methodologies used for these items: Conversion derivative liability CONCENTRATIONS OF CREDIT RISK The Company performs ongoing credit evaluations of its customers. At June 30, 2015, three customers accounted for 59% of accounts receivable. The Company maintains cash and cash equivalents with major financial institutions. Cash held in US bank accounts is insured up to $250,000 at each institution. Cash held in UK bank accounts is insured up to £85,000 (approximately $134,000 at June 30, 2015) at each institution for each entity. At times, cash balances may exceed the insured limits. The Company has not experienced any loss on these accounts. The balances are maintained in demand accounts to minimize risk. RESEARCH AND DEVELOPMENT Expenses related to present and future products are expensed as incurred. FOREIGN CURRENCY TRANSLATION The financial statements of the Company’s U.K. subsidiary, Thinspace UK, are measured using the British Pound as the functional currency. Assets, liabilities and equity accounts of the company are translated at exchange rates as of the balance sheet date or historical acquisition date, depending on the nature of the account. Revenues and expenses are translated at average rates of exchange in effect throughout the year. The resulting cumulative translation adjustments have been recorded as a separate component of stockholders' equity. The unaudited condensed consolidated financial statements are presented in United States of America dollars. LOSS PER SHARE We use ASC 260, “Earnings Per Share” for calculating the basic and diluted income (loss) per share. We compute basic income (loss) per share by dividing net income (loss) and net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding. Dilutive common stock equivalents consist of shares issuable upon conversion of debt and preferred stock and the exercise of our stock warrants. There were 4,346,081,103 common share equivalents at June 30, 2015 and 215,155,252 at June 30, 2014, which have been excluded from the computation of the weighted average diluted shares. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements issued by the FASB and the SEC did not, or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

Convertible Notes Payable

Convertible Notes Payable	6 Months Ended
	Jun. 30, 2015
Convertible Notes Payable [Abstract]
CONVERTIBLE NOTES PAYABLE	NOTE 3 – CONVERTIBLE NOTES PAYABLE IBC Funds 2015 Financings During January and February of 2015 the Company received additional funds, aggregating $167,000, pursuant to a Securities Purchase Agreement with IBC Funds, LLC (“IBC Funds”) dated May 29, 2014 in which the Company sold to IBC Funds an 8% convertible debenture in the principal amount of up to $617,500. The debenture matures on the third anniversary of the date of issuance and bears interest a rate of 8% per year, payable semi-annually and on the maturity date. IBC Funds may convert, at any time, the outstanding principal and accrued interest on the debenture into shares of the Company’s common stock, at a conversion price per share at 40% of the lowest closing bid price for the Company’s common stock during the previous 20 trading days. The conversion price is subject to adjustment in the event of sales by the Company of common stock or securities convertible into common stock at a price per share lower than the then-effective conversion price, to such lower price, subject to certain exceptions. A total of $617,000 has been received pursuant to this debenture. During March, April and May 2015 the Company received additional funds, aggregating $305,000, pursuant to a Securities Purchase Agreement originally entered into with Greystone Capital Partners, Inc. (“Greystone”) dated May 29, 2014 in which the Company sold to Greystone Funds an 8% convertible debenture in the principal amount of up to $617,500. Greystone has assigned $305,000 of this debenture to IBC Funds. The debenture matures on the third anniversary of the date of issuance and bears interest a rate of 8% per year, payable semi-annually and on the maturity date. IBC Funds may convert, at any time, the outstanding principal and accrued interest on the debenture into shares of the Company’s common stock, at a conversion price per share at 40% of the lowest closing bid price for the Company’s common stock during the previous 20 trading days. The conversion price is subject to adjustment in the event of sales by the Company of common stock or securities convertible into common stock at a price per share lower than the then-effective conversion price, to such lower price, subject to certain exceptions. A total of $361,000 has been received pursuant to this debenture, $305,000 from IBC Funds in 2015 and $56,000 from Greystone in 2014. LG Capital March 19, 2015 Financing On March 20, 2015, the Company entered into and closed a securities purchase agreement with LG Capital Funding, LLC (“LG Capital”), pursuant to which the Company issued and sold to LG Capital an 8% convertible redeemable note in the principal amount of $137,500 for a purchase price of $131,250. The note matures on the one year anniversary of the date of issuance and bears interest a rate of 8% per year, payable on the maturity date. LG Capital may convert, at any time, the outstanding principal and accrued interest on the note into shares of the Company’s common stock, at a conversion price equal to 70% of the average of the 5 lowest closing prices of the common stock for the twenty prior trading days including the day upon which a notice of conversion is received by the Company. Iconic Holdings March 23, 2015 Financing On March 23, 2015, the Company entered into and closed a securities purchase agreement with Iconic Holdings, LLC (“Iconic”), pursuant to which the Company issued and sold to Iconic a 6% convertible debenture in the principal amount of $50,000 for a purchase price of $50,000. The note matures on the one year anniversary of the date of issuance and bears interest a rate of 6% per year, payable on the maturity date. Iconic may convert, at any time, the outstanding principal and accrued interest on the note into shares of the Company’s common stock, at a conversion price equal to 70% of the average of the 5 lowest closing prices of the common stock for the twenty prior trading days including the day upon which a notice of conversion is received by the Company. Black Mountain March 23, 2015 Financing On March 23, 2015, the Company entered into, and on March 25, 2015, the Company closed a securities purchase agreement with Black Mountain Equities, Inc. (“Black Mountain”), pursuant to which the Company sold to Black Mountain a 10% convertible note in the principal amount of $105,000 for a purchase price of $100,000. The note matures on the two year anniversary of the date of issuance and bears interest a rate of 10% per year, payable on the maturity date. Black Mountain may convert, at any time, the outstanding principal and accrued interest on the note into shares of the Company’s common stock, at a conversion price equal to the lesser of (a) $0.17 or (b) 70% of the average of the three lowest closing bids occurring during the twenty consecutive trading days immediately preceding the applicable conversion date. RDW Capital, LLC April 6, 2015 Financing On April 6, 2015, the Company issued and sold to RDW Capital, LLC (“RDW”) a 6% convertible debenture in the principal amount of $105,000 for a purchase price of $100,000. The debenture is convertible into the Company’s common stock at a conversion price equal to 65% of the average of the 3 lowest closing prices of the common stock for the twenty trading days prior to conversion. Repayment of the debenture is due one year from the date of issuance. St. George Investments LLC April 9, 2015 Financing On April 9, 2015, the Company entered into and closed a securities purchase agreement with St. George Investments LLC (“St. George”), pursuant to which the Company issued and sold to St. George an 8% convertible promissory note in the principal amount of $107,500 for a purchase price of $100,000. The note is convertible into the Company’s common stock at a conversion price equal to 65% of the lowest closing bid price of the common stock for the twenty trading days prior to conversion. Repayment of the note is due one year from the date of issuance. Blue Citi PR April 10, 2015 Financing On April 10, 2015, the Company entered into and closed a securities purchase agreement with Blue Citi PR (“Blue Citi”), pursuant to which the Company issued and sold to Blue Citi a 8% convertible debenture in the principal amount of up to $535,000 for a purchase price of $500,000 payable as follows: (i) $200,000 was paid upon issuance; (ii) $200,000 is payable at Blue Citi’s discretion at any time within 60 days of issuance provided that, if Blue Citi does not make such payment prior to the date this is 60 days from the date of issuance, Blue Citi will be required to make such payment on the date that is 60 days from the date of issuance, subject to the condition that the average trading price for the Company’s common stock for the five trading days prior to the date that is 60 days from the date of issuance is equal to or greater than 50% of the 5 day average trading price prior to the date of issuance, and (iii) $100,000 at the sole discretion of Blue Citi within 365 days of the date of issuance provided that, if Blue Citi does not make the second $200,000 payment under the debenture within 60 days of the date of issuance, Blue Citi will not have the right to make such $100,000 payment. The debenture is convertible into the Company’s common stock at a conversion price equal to 65% of the average of the three lowest trading prices for the common stock for the twenty trading days prior to conversion. Repayment of the debenture is due two years from the date of issuance.

Derivative Liabilities

Derivative Liabilities	6 Months Ended
	Jun. 30, 2015
Derivative Liabilities [Abstract]
DERIVATIVE LIABILITIES	NOTE 4 –DERIVATIVE LIABILITIES The Company has identified certain embedded derivatives related to its convertible debentures, convertible preferred stock and a debt purchase agreement. Since certain of the debentures, the preferred stock and the debt settlement agreement are convertible into a variable number of shares, the conversion features of those debentures are recorded as derivative liabilities. The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date and to adjust to fair value as of each subsequent balance sheet date. Convertible Debentures and Debt Settlement Agreement During the six months ended June 30, 2015, $351,232 of principal and $54,050 of accrued interest was converted into 102,472,583 shares of common stock. The Company has recorded expense of $373,301 for the three and six months ended June 30, 2015 related to the change in fair value of the conversion feature through the dates of conversion. At June 30, 2015, we recalculated the fair value of the embedded conversion feature of our notes and debt settlement agreement subject to derivative accounting and have determined that their fair value at June 30, 2015 was $34,858,939. The value of the conversion liabilities was determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.015% - 0.625%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of between 180% - 273% and (4) an expected life of 0.75 – 1.91 years. We recorded expense of $24,268,281 and $23,437,194 during the three and six months ended June 30, 2015, respectively, related to the change in fair value. During the three and six months ended June 30, 2015 we recorded additions to our derivative conversion liabilities related to the conversion feature attributable to interest accrued during the period. These additions aggregated $555,415 and $701,641 for the three and six months ended June 30, 2015, respectively, which has been charged to interest expense. Convertible Preferred Stock At June 30, 2015, we recalculated the fair value of the embedded conversion feature of our Series B and Series C preferred stock subject to derivative accounting and have determined that the fair value at June 30, 2015 was $6,851,965. The value of the conversion liabilities was determined using the Black-Scholes method based on the following weighted average assumptions: (1) risk free interest rate of 0.295%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 199% and (4) an expected life of 1 year. We recorded expense of $4,271,950 and $3,934,717 during the three and six months ended June 30, 2015, respectively, related to the change in fair value. Derivative liability activity for the six months ended June 30, 2015 is summarized as follows: Balance at December 31, 2014 Additions Modifications Conversions Reclassifications Change in Value Balance at June 30, 2015 Convertible notes, interest and debt settlement $ 9,471,074 $ 2,909,127 $ — $ (1,328,757 ) $ — $ 23,807,495 $ 34,858,939 Convertible preferred stock 2,702,912 — 313,286 — — 3,835,767 6,851,965 $ 12,173,986 $ 2,909,127 $ 313,286 $ (1,328,757 ) $ — $ 27,643,262 $ 41,710,904

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 5 – STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 50,000,000 shares of preferred stock, with par value of $0.001 per share, of which 75,000 shares have been designated as Series B 10% Convertible preferred stock, with par value of $0.001 per share, and 672,000 shares have been designated as Series C Convertible preferred stock. There were 75,000 Series B shares and 672,000 Series C shares issued and outstanding as of June 30, 2015. Common Stock The Company is authorized to issue 500,000,000 shares of common stock, with par value of $0.001 per share. As of June 30, 2015 and December 31, 2014, there were 203,024,028 and 98,381,445 shares of common stock issued and outstanding, respectively. During the six months ended June 30, 2015, we issued 102,472,583 shares of common stock upon the conversion of $351,232 of debt principal and $54,050 of accrued interest. During June 2015 we issued stock grants of 1,000,000 shares to each of two directors, valued at $22,600. The grants vest upon the one year anniversary of issuance. The expense will be recorded over that one year period. We have recorded an expense of $1,900 for the three and six months ended June 30, 2015. During June 2015 we issued 150,000 shares of common stock, valued at $1,950, as payment for financing activities. During May 2014 we issued a stock grant to an employee in the amount of 200,000 shares of common stock, valued at $34,000. The grant vests upon the two year anniversary, on May 29, 2016. The expense will be recorded over that two year period. We have recorded an expense of $4,250 and $8,500 for the three and six months ended June 30, 2015, respectively. Options Outstanding We have recorded an expense for employee options of $86,684 and $184,543 for the three and six months ended June 30, 2015, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 6 - COMMITMENTS AND CONTINGENCIES LEASE We currently occupy office space pursuant to various short term leases expiring in 2015. Effective July 2015 we entered into an office lease with a five year term expiring in July, 2020. Annual minimum lease payments range from approximately $33,000 for the first year to approximately $47,000 for the final year. Rent expense for the three months ended June 30, 2015 and 2014 was $13,403 and $25,057, respectively. Rent expense for the six months ended June 30, 2015 and 2014 was $33,861 and $62,426, respectively. LITIGATION From time to time, the Company and its subsidiaries may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. The Company and its subsidiaries are currently not aware of any such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 7 - SUBSEQUENT EVENTS Common Shares Issued During the month of July 2015, we issued 92,703,180 shares of common stock upon the conversion of $118,408 of note principal and $78 of accrued interest. During the month of August 2015, we issued 58,500,000 shares of common stock upon the conversion of $66,500 of note principal. Debt Financings During the month of July 2015 the Company received funds, aggregating $62,400, pursuant to a Securities Purchase Agreement originally entered into with Blue Citi PR LLC (“Blue Citi “) dated April 10, 2015 in which the Company sold to Blue Citi an 8% convertible debenture in the principal amount of up to $535,000. During the month of August 2015 the Company received an additional $74,900, pursuant to this purchase agreement. Blue Citi has assigned the April 10, 2015 debenture to Blue Citi, LLC. The Company has received a total of $395,900 pursuant to this debenture. Black Mountain Buyback On August 10, 2015, the Company entered into a payoff agreement with Black Mountain, pursuant to which the Company paid to Black Mountain $70,000, and issued to Black Mountain a non-convertible note in the principal amount of $30,000, due one year from the date of issuance, in exchange for the Company’s convertible note issued to Black Mountain, dated March 23, 2015, in the original principal amount of $105,000.

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION The unaudited condensed consolidated financial statements include the accounts of Thinspace Technology, Inc. and its wholly-owned subsidiaries, Thinspace UK and Thinspace US. All material inter-company accounts and transactions have been eliminated.
USE OF ESTIMATES	USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS For the purpose of the statements of cash flows, we consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.
Accounts receivable	ACCOUNTS RECEIVABLE
REVENUE RECOGNITION	REVENUE RECOGNITION The Company is party to certain volume licensing arrangements that include a perpetual license for current products combined with rights to receive unspecified future versions of software products, which the Company has determined are additional software products and are therefore accounted for as subscriptions, with billings recorded as unearned revenue and recognized as revenue ratably over the coverage period. Arrangements that include term based licenses for current products with the right to use unspecified future versions of the software during the coverage period are also accounted for as subscriptions, with revenue recognized ratably over the coverage period. Revenue from cloud-based services arrangements that allow for the use of a hosted software product or service over a contractually determined period of time without taking possession of software are accounted for as subscriptions with billings recorded as unearned revenue and recognized as revenue ratably over the coverage period beginning on the date the service is made available to customers. Some volume licensing arrangements include time-based subscriptions for cloud-based services and software offerings that are accounted for as subscriptions. These arrangements are considered multiple element arrangements. However, because all elements are accounted for as subscriptions and have the same coverage period and delivery pattern, they have the same revenue recognition timing.
Deferred revenue	DEFERRED REVENUE Deferred revenue related to support and maintenance is recorded in a manner consistent with the Company’s revenue recognition policy. The Company typically enters into one-year upgrade and maintenance contracts with its customers. The upgrade and maintenance contracts are generally paid in advance but can be billed monthly or quarterly. The Company defers such payments and recognizes revenue ratably over the contract period.
Inventory	INVENTORY The Company values its inventory at the lower of cost (first-in, first-out) or market. The Company uses estimates and judgments regarding the valuation of inventory to properly value inventory. Inventory adjustments are made for the difference between the cost of the inventory and the estimated realizable value and charged to cost of goods sold in the period in which the facts that give rise to the adjustments become known.
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS Our short-term financial instruments, including cash, accounts receivable and accounts payable and accrued expenses consist primarily of instruments without extended maturities, the fair value of which, based on management’s estimates, reasonably approximate their book value. The fair value of our notes and advances payable is based on management estimates and reasonably approximates their book value based on their terms. Fair value measurements ASC 820 “Fair Value Measurements and Disclosure” establishes a framework for measuring fair value and expands disclosure about fair value measurements. ASC 820 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes the following three levels of inputs that may be used: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In accordance with ASC 820, the following table represents the Company's fair value hierarchy for its financial assets and (liabilities) measured at fair value on a recurring basis as of June 30, 2015: Level 1 Level 2 Level 3 Total Liabilities Conversion derivative liabilities $ — $ — $ 41,710,904 $ 41,710,904 Total Liabilities $ — $ — $ 41,710,904 $ 41,710,904 The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities (conversion and warrant derivative liabilities) for the six months ended June 30, 2015. 2015 Balance at beginning of year $ 12,173,986 Additions and modifications to derivative instruments 3,222,413 Change in fair value of derivative liabilities 27,643,262 Reclassification upon conversion of debt (1,328,757 ) Balance at end of period $ 41,710,904 The following is a description of the valuation methodologies used for these items: Conversion derivative liability
CONCENTRATIONS OF CREDIT RISK	CONCENTRATIONS OF CREDIT RISK The Company performs ongoing credit evaluations of its customers. At June 30, 2015, three customers accounted for 59% of accounts receivable. The Company maintains cash and cash equivalents with major financial institutions. Cash held in US bank accounts is insured up to $250,000 at each institution. Cash held in UK bank accounts is insured up to £85,000 (approximately $134,000 at June 30, 2015) at each institution for each entity. At times, cash balances may exceed the insured limits. The Company has not experienced any loss on these accounts. The balances are maintained in demand accounts to minimize risk.
RESEARCH AND DEVELOPMENT	RESEARCH AND DEVELOPMENT Expenses related to present and future products are expensed as incurred.
FOREIGN CURRENCY TRANSLATION	FOREIGN CURRENCY TRANSLATION The financial statements of the Company’s U.K. subsidiary, Thinspace UK, are measured using the British Pound as the functional currency. Assets, liabilities and equity accounts of the company are translated at exchange rates as of the balance sheet date or historical acquisition date, depending on the nature of the account. Revenues and expenses are translated at average rates of exchange in effect throughout the year. The resulting cumulative translation adjustments have been recorded as a separate component of stockholders' equity. The unaudited condensed consolidated financial statements are presented in United States of America dollars.
LOSS PER SHARE	LOSS PER SHARE We use ASC 260, “Earnings Per Share” for calculating the basic and diluted income (loss) per share. We compute basic income (loss) per share by dividing net income (loss) and net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding. Dilutive common stock equivalents consist of shares issuable upon conversion of debt and preferred stock and the exercise of our stock warrants. There were 4,346,081,103 common share equivalents at June 30, 2015 and 215,155,252 at June 30, 2014, which have been excluded from the computation of the weighted average diluted shares.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements issued by the FASB and the SEC did not, or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Schedule of financial assets and liabilities measured at fair value on recurring basis	Level 1 Level 2 Level 3 Total Liabilities Conversion derivative liabilities $ — $ — $ 41,710,904 $ 41,710,904 Total Liabilities $ — $ — $ 41,710,904 $ 41,710,904
Schedule of changes in fair value of Company's Level 3 financial liabilities (conversion and warrant derivative liabilities)	2015 Balance at beginning of year $ 12,173,986 Additions and modifications to derivative instruments 3,222,413 Change in fair value of derivative liabilities 27,643,262 Reclassification upon conversion of debt (1,328,757 ) Balance at end of period $ 41,710,904

Derivative Liabilities (Tables)

Derivative Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Liabilities [Abstract]
Schedule of Derivative liability activity	Balance at December 31, 2014 Additions Modifications Conversions Reclassifications Change in Value Balance at June 30, 2015 Convertible notes, interest and debt settlement $ 9,471,074 $ 2,909,127 $ — $ (1,328,757 ) $ — $ 23,807,495 $ 34,858,939 Convertible preferred stock 2,702,912 — 313,286 — — 3,835,767 6,851,965 $ 12,173,986 $ 2,909,127 $ 313,286 $ (1,328,757 ) $ — $ 27,643,262 $ 41,710,904

Organization and Line of Busi16

Organization and Line of Business (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Organization and Line of Business (Textual)
Net Income (Loss) Attributable to Parent	$ (31,303,288)	$ 19,960,770	$ (31,573,322)	$ (5,961,359)
Negative working capital	44,258,324		44,258,324
Stockholders' deficit	$ (45,288,549)		$ (45,288,549)		$ (15,448,622)

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Liabilities
Conversion derivative liabilities	$ 41,710,904	$ 12,173,986
Fair Value, Measurements, Recurring | Level 1
Liabilities
Conversion derivative liabilities
Total Liabilities
Fair Value, Measurements, Recurring | Level 2
Liabilities
Conversion derivative liabilities
Total Liabilities
Fair Value, Measurements, Recurring | Level 3
Liabilities
Conversion derivative liabilities	$ 41,710,904
Total Liabilities	41,710,904
Fair Value, Measurements, Recurring | Total
Liabilities
Conversion derivative liabilities	41,710,904
Total Liabilities	$ 41,710,904

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Details 1) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of year	$ 12,173,986
Additions and modifications to derivative instruments	3,222,413
Change in fair value of derivative liabilities	(27,643,262)	$ 1,109,207
Reclassification upon conversion of debt	(1,328,757)
Balance at end of period	$ 41,710,904

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Detail Textual)	6 Months Ended
	Jun. 30, 2015USD ($)shares	Jun. 30, 2014shares	Jun. 30, 2015EUR (€)	Dec. 31, 2014USD ($)
Summary of Significant Accounting Policies (Textual)
Accounts receivable	$ 86,717			$ 158,329
Common share equivalents excluded from the computation of the weighted average diluted shares | shares	4,346,081,103	215,155,252
Three Customers [Member] | Accounts Receivable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage	59.00%
US Bank [Member]
Summary of Significant Accounting Policies (Textual)
Cash	$ 250,000
UK Bank [Member]
Summary of Significant Accounting Policies (Textual)
Cash	$ 134,000		€ 85,000

Convertible Notes Payable (Deta

Convertible Notes Payable (Details) - USD ($)	May. 14, 2015	Apr. 10, 2015	Apr. 09, 2015	Apr. 06, 2015	Mar. 23, 2015	Mar. 20, 2015	May. 29, 2014	Jun. 30, 2015	Feb. 28, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Conversion derivative liabilities								$ 41,710,904		$ 12,173,986
Convertible Debt [Member]
Debt Instrument [Line Items]
Convertible note payable							$ 617,000	361,000
Convertible Debt [Member] | IBC Funds, LLC (IBC) [Member]
Debt Instrument [Line Items]
Convertible note payable								$ 305,000	$ 167,000
Annual interest rate on convertible debentures							8.00%
Debt Instrument, Principal amount							$ 617,500
Number of trading days of conversion							20 days
Percentage of discounts to market price of common stock							40.00%
Convertible Debt [Member] | Greystone Capital Partners Inc [Member]
Debt Instrument [Line Items]
Convertible note payable							$ 305,000			$ 56,000
Annual interest rate on convertible debentures							8.00%
Debt Instrument, Principal amount							$ 617,500
Number of trading days of conversion							20 days
Percentage of discounts to market price of common stock							40.00%
Convertible Debt [Member] | LG Capital Financing [Member]
Debt Instrument [Line Items]
Annual interest rate on convertible debentures						8.00%
Debt Instrument, Principal amount						$ 137,500
Proceeds from convertible debt						$ 131,250
Description of Convertible note						The outstanding principal and accrued interest on the note into shares of the Company's common stock, at a conversion price equal to 70% of the average of the 5 lowest closing prices of the common stock for the twenty prior trading days including the day upon which a notice of conversion is received by the Company.
Number of trading days of conversion						20 days
Convertible Debt [Member] | Iconic Holdings Financing [Member]
Debt Instrument [Line Items]
Annual interest rate on convertible debentures					6.00%
Debt Instrument, Principal amount					$ 50,000
Proceeds from convertible debt					$ 50,000
Description of Convertible note					The outstanding principal and accrued interest on the note into shares of the Company's common stock, at a conversion price equal to 70% of the average of the 5 lowest closing prices of the common stock for the twenty prior trading days including the day upon which a notice of conversion is received by the Company.
Number of trading days of conversion					20 days
Convertible Debt [Member] | Black Mountain Financing [Member]
Debt Instrument [Line Items]
Annual interest rate on convertible debentures					10.00%
Debt Instrument, Principal amount					$ 105,000
Proceeds from convertible debt					$ 100,000
Description of Convertible note					The outstanding principal and accrued interest on the note into shares of the Company's common stock, at a conversion price equal to the lesser of (a) $0.17 or (b) 70% of the average of the three lowest closing bids occurring during the twenty consecutive trading days immediately preceding the applicable conversion date.
Number of trading days of conversion					20 days
Fair value assumptions, dividend yield								0.00%
Discount on issuance of debt								$ 1,191,077
Interest expenses								1,016,409
Conversion derivative liabilities								$ 2,207,486
Convertible Debt [Member] | Black Mountain Financing [Member] | Minimum [Member]
Debt Instrument [Line Items]
Fair value assumptions, risk free interest rate								0.265%
Fair value assumptions, expected volatility rate								165.00%
Fair value assumptions, expected life (in years)								1 year
Convertible Debt [Member] | Black Mountain Financing [Member] | Maximum [Member]
Debt Instrument [Line Items]
Fair value assumptions, risk free interest rate								0.625%
Fair value assumptions, expected volatility rate								210.00%
Fair value assumptions, expected life (in years)								2 years 5 months 1 day
Convertible Debt [Member] | RDW Capital, LLC [Member]
Debt Instrument [Line Items]
Annual interest rate on convertible debentures				6.00%
Debt Instrument, Principal amount				$ 105,000
Proceeds from convertible debt				$ 100,000
Debt conversion, Description				The debenture is convertible into the Company's common stock at a conversion price equal to 65% of the average of the 3 lowest closing prices of the common stock for the twenty trading days prior to conversion.
Number of trading days of conversion				20 days
Convertible Debt [Member] | St. George Investments LLC [Member]
Debt Instrument [Line Items]
Annual interest rate on convertible debentures			8.00%
Debt Instrument, Principal amount			$ 107,500
Proceeds from convertible debt			$ 100,000
Debt conversion, Description			The note is convertible into the Company's common stock at a conversion price equal to 65% of the lowest closing bid price of the common stock for the twenty trading days prior to conversion.
Number of trading days of conversion			20 days
Convertible Debt [Member] | Blue Citi PR [Member]
Debt Instrument [Line Items]
Annual interest rate on convertible debentures		8.00%
Debt Instrument, Principal amount		$ 535,000
Proceeds from convertible debt		$ 500,000
Debt conversion, Description		The debenture is convertible into the Company's common stock at a conversion price equal to 65% of the average of the three lowest trading prices for the common stock for the twenty trading days prior to conversion.
Number of trading days of conversion		60 days
Debt repayment term	i) Two Hundred Thousand Dollars ($200,000) payable to the Company on the Effective Date; (ii) Two Hundred Thousand Dollars ($200,000) payable to the Company on June 10, 2015; and One Hundred Thousand Dollars ($100,000) payable to the Company on July 10, 2015; and Each such payment of Consideration reflect a 7% original issue discount ("OID") added to the principal amount at time of payment to Borrower (up to $14,000).	(i) $200,000 was paid upon issuance; (ii) $200,000 is payable at Blue Citi's discretion at any time within 60 days of issuance provided that, if Blue Citi does not make such payment prior to the date this is 60 days from the date of issuance, Blue Citi will be required to make such payment on the date that is 60 days from the date of issuance, subject to the condition that the average trading price for the Company's common stock for the five trading days prior to the date that is 60 days from the date of issuance is equal to or greater than 50% of the 5 day average trading price prior to the date of issuance, and (iii) $100,000 at the sole discretion of Blue Citi within 365 days of the date of issuance provided that, if Blue Citi does not make the second $200,000 payment under the debenture within 60 days of the date of issuance, Blue Citi will not have the right to make such $100,000 payment.

Derivative Liabilities (Details

Derivative Liabilities (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Beginning Balance	$ 12,173,986
Additions	2,909,127
Modifications	313,286
Conversions	$ (1,328,757)
Reclassifications
Change in fair value of derivative liability	$ (27,643,262)	$ 1,109,207
Ending Balance	41,710,904
Convertible Preferred Stock [Member]
Beginning Balance	$ 2,702,912
Additions
Modifications	$ 313,286
Conversions
Reclassifications
Change in fair value of derivative liability	$ (3,835,767)
Ending Balance	6,851,965
Convertible notes, interest and debt settlement [Member]
Beginning Balance	9,471,074
Additions	$ 2,909,127
Modifications
Conversions	$ (1,328,757)
Reclassifications
Change in fair value of derivative liability	$ (23,807,495)
Ending Balance	$ 34,858,939

Derivative Liabilities (Detai22

Derivative Liabilities (Details Textual) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014
Short-term Debt [Line Items]
Accrued interest converted to common stock		$ 54,050	$ 11,410
Convertible Preferred Stock [Member]
Short-term Debt [Line Items]
Conversion feature liability	$ 6,851,965	$ 6,851,965
Fair value assumptions, risk free interest rate		0.295%
Fair value assumptions, dividend yield		0.00%
Fair value assumptions, expected volatility rate		199.00%
Fair value assumptions, expected life (in years)		1 year
Expense related to change in fair value	$ (4,271,950)	$ (3,934,717)
Conversion price	$ 0.0024	$ 0.0024
Common shares issued for intrument exercisable		31,250,000
Recorded income of fair value conversion feature		$ 98,950
Recorded expense of fair value conversion feature	$ 313,286	313,286
Convertible Debentures and Debt Settlement Agreement [Member]
Short-term Debt [Line Items]
Conversion feature liability	34,858,939	$ 34,858,939
Fair value assumptions, dividend yield		0.00%
Expense related to change in fair value	24,268,281	$ 23,437,194
Additions to interest expense	555,415	701,641
Debt Instrument, Principal amount	351,232	$ 351,232
Converted shares of common stock		102,472,583
Expenses for change in fair value of conversion feature	$ 373,301	$ 373,301
Convertible Debentures and Debt Settlement Agreement [Member] | Minimum [Member]
Short-term Debt [Line Items]
Fair value assumptions, risk free interest rate		0.015%
Fair value assumptions, expected volatility rate		180.00%
Fair value assumptions, expected life (in years)		9 months
Convertible Debentures and Debt Settlement Agreement [Member] | Maximum [Member]
Short-term Debt [Line Items]
Fair value assumptions, risk free interest rate		0.625%
Fair value assumptions, expected volatility rate		273.00%
Fair value assumptions, expected life (in years)		1 year 10 months 28 days

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	May. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Class of Stock [Line Items]
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001		$ 0.001
Common stock, shares authorized		500,000,000	500,000,000		500,000,000
Common stock, shares issued		203,024,028	203,024,028		98,381,445
Common stock, shares outstanding		203,024,028	203,024,028		98,381,445
Stock granted to each director	$ 34,000		$ 1,950
Stock granted to each director, shares	200,000		150,000
Employee shares vesting period	2 years
Compensation expense		$ 4,250	$ 8,500
Employee shares expiration date	May 29, 2016
Accrued interest converted to common stock			54,050	$ 11,410
Two Directors [Member]
Class of Stock [Line Items]
Stock granted to each director			$ 22,600
Stock granted to each director, shares			1,000,000
Employee shares vesting period			1 year
Compensation expense			$ 1,900
Employee Stock Option [Member]
Class of Stock [Line Items]
Compensation expense		$ 86,684	$ 184,543
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share)		$ 0.001	$ 0.001		$ 0.001
Preferred stock, shares authorized		75,000	75,000		75,000
Preferred stock, shares issued		75,000	75,000		75,000
Preferred stock, shares outstanding		75,000	75,000		75,000
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share)		$ 0.001	$ 0.001		$ 0.001
Preferred stock, shares authorized		672,000	672,000		672,000
Preferred stock, shares issued		672,000	672,000		672,000
Preferred stock, shares outstanding		672,000	672,000		672,000
Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized		50,000,000	50,000,000
Common Stock [Member]
Class of Stock [Line Items]
Converted shares of common stock			102,472,583
Debt Instrument, Principal amount		$ 351,232	$ 351,232

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Commitments and Contingencies [Abstract]
Short term lease on office space, expiration date			Dec. 31, 2015
Rent expense	$ 13,403	$ 25,057	$ 33,861	$ 62,426

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] - USD ($)	Aug. 14, 2015	Aug. 10, 2015	Jul. 31, 2015
Subsequent Event [Line Items]
Common stock shares issued upon conversion, value	$ 66,500		$ 118,408
Common stock shares issued upon conversion	58,500,000		92,703,180
Amount of accrued interest converted			$ 78
Blue Citi PR [Member]
Subsequent Event [Line Items]
Proceeds from convertible debt			$ 62,400
Convertible debenture percentage			8.00%
Additional borrowing under purchase agreement	$ 74,900
Maximum borrowing line of credit			$ 535,000
Current borrowing line of credit	$ 395,900
Black Mountain Financing [Member]
Subsequent Event [Line Items]
Original principal amount		$ 105,000
Principal amount paid in cash		70,000
Black Mountain Financing [Member] | Non-convertible Note [Member]
Subsequent Event [Line Items]
Original principal amount		$ 30,000