Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 14, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'ADVANCED MEDICAL ISOTOPE Corp | ' |
Entity Central Index Key | '0001449349 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 185,005,501 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
ASSETS | ' | ' |
Cash | $125,242 | ' |
Prepaid expenses | 27,293 | 3,281 |
Prepaid expenses paid with stock, current portion | 41,979 | 107,763 |
Inventory | 8,475 | 8,475 |
Deposit | 1,000 | ' |
Total current assets | 203,989 | 119,519 |
Fixed assets, net of accumulated depreciation | 11,833 | 14,913 |
License fees, net of amortization | 4,255 | 7,171 |
Patents and intellectual property | 35,482 | 35,482 |
Debt issuance costs | 48,700 | 19,786 |
Deposits | 5,406 | 5,406 |
Total other assets | 93,843 | 67,845 |
Total assets | 309,665 | 202,277 |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Accounts payable and accrued expenses | 1,293,004 | 1,221,063 |
Accrued interest payable | 1,411,668 | 1,195,385 |
Payroll liabilities payable | 129,010 | 81,514 |
Short term loan payable | ' | 349,913 |
Convertible notes payable, net | 583,429 | 375,259 |
Derivative liability | 2,132,187 | 1,476,615 |
Related party convertible notes payable, net | 4,255,713 | 4,158,819 |
Current portion of capital lease obligations | 177,645 | 309,145 |
Total current liabilities | 9,982,656 | 9,167,713 |
Stockholders' Equity (Deficit): | ' | ' |
Preferred Stock, $.001 par value, 20,000,000 shares authorized; zero issued and outstanding | ' | ' |
Common stock, $.001 par value; 500,000,000 shares authorized; 164,243,444 and 120,807,808 shares issued and outstanding, respectively | 164,242 | 120,807 |
Paid in capital | 28,620,684 | 27,052,282 |
Accumulated deficit | -38,457,917 | -36,138,525 |
Total stockholders' equity (deficit) | -9,672,991 | -8,965,436 |
Total liabilities and stockholders' equity (deficit) | $309,665 | $202,277 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Stockholders' Equity (Deficit): | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, authorized | 20,000,000 | 20,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, issued | 164,243,444 | 120,807,808 |
Common stock, outstanding | 164,243,444 | 120,807,808 |
Condensed_Statements_of_Operat
Condensed Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $10,054 | ' | $24,108 | $24,804 |
Operating expenses | ' | ' | ' | ' |
Cost of materials | 301 | ' | 551 | 4,559 |
Sales and marketing expenses | 700 | 6,162 | 1,300 | 7,062 |
Depreciation and amortization | 2,998 | 100,911 | 5,996 | 201,817 |
Professional fees | 152,807 | 238,425 | 337,985 | 486,689 |
Stock options granted | 58,187 | 114,281 | 116,374 | 517,881 |
Payroll expenses | 195,532 | 269,053 | 385,096 | 458,888 |
General and administrative expenses | 131,615 | 454,407 | 254,586 | 1,026,478 |
Total operating expenses | 542,140 | 1,183,239 | 1,101,888 | 2,703,374 |
Operating loss | -532,086 | -1,183,239 | -1,077,780 | -2,678,570 |
Non-operating income (expense) | ' | ' | ' | ' |
Interest expense | -422,215 | -414,878 | -815,497 | -819,368 |
Net gain (loss) on settlement of debt | -42,418 | -53,502 | -75,049 | -171,533 |
Recognized income from grants | ' | 192,860 | ' | 241,290 |
Gain (loss) on derivative liability | -239,270 | 795,112 | -351,066 | 2,159,021 |
Non-operating income (expense), net | -703,903 | 519,592 | -1,241,612 | 1,409,410 |
Loss before Income Taxes | -1,235,989 | -663,647 | -2,319,392 | -1,269,160 |
Income Tax Provision | ' | ' | ' | ' |
Net loss | ($1,235,989) | ($663,647) | ($2,319,392) | ($1,269,160) |
Loss per common share | ($0.01) | $0 | ($0.02) | ($0.01) |
Weighted average common shares outstanding | 137,850,412 | 97,652,747 | 131,468,516 | 92,281,600 |
Condensed_Statement_of_Changes
Condensed Statement of Changes in Stockholders' Equity (Deficit) (USD $) | Common Stock | Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Amount at Dec. 31, 2013 | $120,807 | $27,052,282 | ($36,138,525) | ($8,965,436) |
Beginning Balance, Shares at Dec. 31, 2013 | 120,807,808 | ' | ' | ' |
Common stock issued for: Cash and the exercise of warrants, Amount | 299 | 5,701 | ' | 6,000 |
Common stock issued for: Cash and the exercise of warrants, Shares | 298,704 | ' | ' | ' |
Common stock issued for: Services and prepaid services, Amount | 171 | 10,729 | ' | 10,900 |
Common stock issued for: Services and prepaid services, Shares | 171,250 | ' | ' | ' |
Common stock issued for: Accounts payable and prepaid services, Amount | 100 | 7,400 | ' | 7,500 |
Common stock issued for: Accounts payable and prepaid services, Shares | 100,000 | ' | ' | ' |
Common stock issued for: Loan fees on convertible debt, Amount | 1,269 | 120,637 | ' | 121,906 |
Common stock issued for: Loan fees on convertible debt, Shares | 1,269,009 | ' | ' | ' |
Common stock issued for: Debt converted, Amount | 41,596 | 1,187,918 | ' | 1,229,514 |
Common stock issued for: Debt converted, Shares | 41,596,673 | ' | ' | ' |
Options and warrants issued for services | ' | 116,374 | ' | 116,374 |
Beneficial conversion feature | ' | 119,643 | ' | 119,643 |
Net Loss | ' | ' | -2,319,392 | -2,319,392 |
Ending Balance, Amount at Jun. 30, 2014 | $164,242 | $28,620,684 | ($38,457,917) | ($9,672,991) |
Ending Balance, Shares at Jun. 30, 2014 | 164,243,444 | ' | ' | ' |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flow (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ' | ' |
Net Loss | ($2,319,392) | ($1,269,160) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Depreciation of fixed assets | 3,080 | 196,400 |
Amortization of licenses and intangible assets | 2,916 | 5,417 |
Amortization of convertible debt discount | 564,788 | 341,154 |
Amortization of debt issuance costs | 25,027 | 512,577 |
Amortization of prepaid expenses paid with stock | 65,784 | ' |
Common stock issued for services | 10,900 | 83,470 |
Common stock issued for interest | ' | 122,728 |
Warrants exercised for services | ' | 20,000 |
Stock options and warrants issued for services | 116,374 | 517,881 |
Gain (Loss) on derivative liability | 351,066 | -2,159,021 |
Loss on settlement of debt | 75,049 | 171,533 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | ' | 21,239 |
Inventory | ' | -4,375 |
Prepaid expenses | -25,012 | -11,729 |
Accounts payable | 79,441 | 13,626 |
Payroll liabilities | 47,496 | -43,985 |
Accrued interest | 241,853 | 228,122 |
Grant money used to offset expenditures | ' | -241,290 |
Net cash used by operating activities | -760,630 | -1,495,413 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Cash used to acquire patents and intellectual property | ' | -7,715 |
Net cash used by investing activities | ' | -7,715 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Payments on Washington Trust debt | ' | -23,153 |
Principal payments on capital lease | -131,500 | -195,983 |
Proceeds from short term debt | ' | 349,913 |
Debt issuance costs | -53,941 | ' |
Payments on short term loan | ' | -35,846 |
Proceeds from convertible debt | 1,425,226 | 647,772 |
Principal payments on convertible debt | -359,913 | -105,500 |
Proceeds on sale of stock for cash | ' | 866,500 |
Proceeds from exercise of warrants | 6,000 | ' |
Net cash provided by financing activities | 885,872 | 1,503,703 |
Net increase (decrease) in cash | 125,242 | 575 |
Cash, beginning of period | ' | 6,411 |
CASH, END OF PERIOD | 125,242 | 6,986 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for interest | 217,609 | 126,494 |
Cash paid for income taxes | ' | ' |
1_BASIS_OF_PRESENTATION_AND_SI
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
NOTE 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
The accompanying condensed financial statements of the Company have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures required by accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the period presented. The results of operations for the six months ended June 30, 2014, are not necessarily indicative of the results that may be expected for any future period or the fiscal year ending December 31, 2014. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Fair Value of Financial Instruments, requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of June 30, 2014 and December 31, 2013, the balances reported for cash, prepaid expenses, accounts receivable, accounts payable, and accrued expenses, approximate the fair value because of their short maturities. | |||||||||||||||||
The Company adopted ASC Topic 820 (originally issued as SFAS 157, “Fair Value Measurements”) as of January 1, 2008 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. | |||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: | |||||||||||||||||
Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; | |||||||||||||||||
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and | |||||||||||||||||
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||||||
The Company measures certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were calculated using the Black-Scholes pricing model and are as follows at June 30, 2014: | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets | |||||||||||||||||
Total Assets Measured at Fair Value | $ | - | $ | - | $ | - | $ | - | |||||||||
Liabilities | |||||||||||||||||
Derivative Liability | $ | 2,132,187 | $ | - | $ | - | $ | 2,132,187 | |||||||||
Total Liabilities Measured at Fair Value | $ | 2,132,187 | $ | - | $ | - | $ | 2,132,187 | |||||||||
Recent Accounting Pronouncements | |||||||||||||||||
There are no recently issued accounting pronouncements that the Company believes are applicable or would have a material impact on the financial statements of the Company. |
2_GOING_CONCERN
2. GOING CONCERN | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
NOTE 2. GOING CONCERN | ' |
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has suffered recurring losses and used significant cash in support of its operating activities and the Company’s cash position is not sufficient to support the Company’s operations. This raises substantial doubt about the Company’s ability to continue as a going concern. Historically, the Company has relied upon outside investor funds to maintain the Company’s operations and develop the Company’s business. The Company anticipates it will continue to require funding from investors for working capital as well as business expansion during this fiscal year and it can provide no assurance that additional investor funds will be available on terms acceptable to us. These factors, among others, may indicate that the Company will be unable to continue as a going concern for a reasonable time. In addition, the Company’s ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance into established markets and the competitive environment in which it operates. | |
The Company anticipates a requirement of $1.5 million in funds over the next twelve months to maintain current operation activities. In addition the Company anticipates spending from approximately $2 million to $7 million over that period to fund the initial deployment of the Company’s brachytherapy products should FDA clearance be obtained, a modest distribution capability for third party isotopes and equipment and the potential acquisition of a controlling interest in a European company with which it is having discussions. As of June 30, 2014 the Company has $125,242 cash on hand which means there will be an anticipated shortfall of the full $2 to $7 million requirement in additional funds over the next twelve months. There are currently commitments to vendors for products and services purchased, plus, the employment agreements of the CFO and other employees of the Company and the Company’s current lease commitments that will necessitate liquidation of the Company if it is unable to raise additional capital. The current level of cash is not enough to cover the fixed and variable obligations of the Company. | |
Assuming the Company is successful in the Company’s sales/development effort it believes that it will be able to raise additional funds through the sale of the Company’s stock to either current or new stockholders. There is no guarantee that the Company will be able to raise additional funds or to do so at an advantageous price. | |
The financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. The Company plans to seek additional funding to maintain its operations through debt and equity financing and to improve operating performance through a focus on strategic products and increased efficiencies in business processes and improvements to the cost structure. There is no assurance that the Company will be successful in its efforts to raise additional working capital or achieve profitable operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
3_FIXED_ASSETS
3. FIXED ASSETS | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
FIXED ASSETS | ' | ||||||||
Fixed assets consist of the following at June 30, 2014 and December 31, 2013: | |||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
Production equipment | $ | 2,131,377 | $ | 2,131,377 | |||||
Building | 446,772 | 446,772 | |||||||
Leasehold improvements | 3,235 | 3,235 | |||||||
Office equipment | 32,769 | 32,769 | |||||||
2,614,153 | 2,614,153 | ||||||||
Less accumulated depreciation | (2,602,320 | ) | (2,599,240 | ) | |||||
$ | 11,833 | $ | 14,913 | ||||||
Accumulated depreciation related to fixed assets is as follows: | |||||||||
June 31, 2014 | 31-Dec-13 | ||||||||
Production equipment | $ | 2,121,646 | $ | 2,119,830 | |||||
Building | 446,772 | 446,772 | |||||||
Leasehold improvements | 3,235 | 3,235 | |||||||
Office equipment | 30,667 | 29,403 | |||||||
$ | 2,602,320 | $ | 2,599,240 | ||||||
Depreciation expense for the above fixed assets for the six months ended June 30, 2014 and 2013, respectively, was $3,080 and $196,400. |
4_INTANGIBLE_ASSETS
4. INTANGIBLE ASSETS | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||
NOTE 4. INTANGIBLE ASSETS | ' | ||||||||
Intangible assets consist of the following at June 30, 2014 and December 31, 2013: | |||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
License Fee | $ | 112,500 | $ | 112,500 | |||||
Less accumulated amortization | (108,245 | ) | (105,329 | ) | |||||
4,255 | 7,171 | ||||||||
Patents and intellectual property | 35,482 | 35,482 | |||||||
Intangible assets net of accumulated amortization | $ | 39,737 | $ | 42,653 | |||||
Amortization expense for the above intangible assets for the six months ended June 30, 2014 and 2013, respectively, was $2,916 and $5,417. |
5_RELATED_PARTY_TRANSACTIONS
5. RELATED PARTY TRANSACTIONS | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
NOTE 5. RELATED PARTY TRANSACTIONS | ' | ||||||||
Loans from Stockholder | |||||||||
The Company had a $200,000 revolving line of credit with Washington Trust Bank that was to expire in September 2009. The Company had $199,908 in borrowings under the line of credit as of October 28, 2008 at which time the line of credit was paid off and replaced with a loan in the initial principal amount of $199,908 from James C. Katzaroff and Carlton M. Cadwell. Mr. Katzaroff is the Company’s chief executive officer, and Mr. Katzaroff and Mr. Cadwell are directors and beneficial owners of more than 10% of the Company’s common stock. The loan calls for $4,066 monthly payments, including 8% interest, beginning November 30, 2008, with a balloon payment for the balance at October 31, 2009, at which time the note was extended for another year to October 31, 2010, at which time the note was extended for another year to October 31, 2011, at which time the note was extended for another year to October 31, 2012 with monthly payments increasing to $4,090, at which time the note was extended for another year to October 31, 2013 with monthly payments increasing to $4,100. There is no security held as collateral for this loan. The Company paid this loan in full as of December 31, 2013. | |||||||||
Related Party Convertible Notes Payable | |||||||||
The Company issued various shares of common stock and convertible promissory notes during the six months ended June 30, 2014 to a director and major stockholder. The details of these transactions are outlined in Note 10: Stockholders’ Equity - Common Stock Issued for Convertible Debt. | |||||||||
Rent Expenses | |||||||||
On July 17, 2007, the Company entered into a lease at 6208 West Okanogan Avenue, Kennewick, Washington, 99336 which has been used as the Company’s production center. The original term of the lease was five years, commencing on August 1, 2007, however, subsequent to July 31, 2012 the Company began renting this space on a month to month basis at $11,904 per month. The landlord of this space is a non-affiliated stockholder of the Company, who holds less than 5 percent of the total outstanding shares. In January 2014, the Company entered into a new 12-month lease for its corporate offices for a monthly rent of $1,500 from an entity controlled by Carlton M. Cadwell, a significant shareholder and a Director of the Company | |||||||||
Rental expense for the six months ended June 30, 2014 and 2013 consisted of the following: | |||||||||
Six months ended | Six months ended | ||||||||
30-Jun-14 | 30-Jun-13 | ||||||||
Office and warehouse lease effective August 1, 2007 | |||||||||
Monthly rental payments | $ | 71,426 | $ | 71,426 | |||||
Rental expense in the form of stock issuance | - | - | |||||||
Corporate office | 9,000 | 17,460 | |||||||
Total Rental Expense | $ | 80,426 | $ | 88,886 |
6_PREPAID_EXPENSES_PAID_WITH_S
6. PREPAID EXPENSES PAID WITH STOCK | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
NOTE 6. PREPAID EXPENSES PAID WITH STOCK | ' | ||||
The Company issued stock for prepaid services for the year ended December 31, 2013 in the amount of $78,000 of which $26,000 expired in 2013 and was expensed and recorded as stock issued for services and 39,000 expired in the six months ending June 30, 2014 and was expensed and recorded as stock issued for services. The $13,000 balance will expire through December 2014. The Company also issued stock for prepaid services for the year ended December 31, 2013 in the amount of $69,550 of which $5,796 expired in 2013 and was expensed and recorded as stock issued for services and $34,776 expired in the six months ending June 30, 2014 and was expensed and recorded as stock issued for services. The $28,978 balance will expire through December 2014. The Company also issued stock for prepaid services for the year ended December 31, 2013 in the amount of $3,600 of which $0 expired in 2013 and $3,600 expired in the six months ending June 30, 2014 and was expensed and recorded as stock issued for services. Prepaid expenses are expected to mature as follows: | |||||
For the twelve month period ending December 31, 2014 | $ | 41,979 | |||
Thereafter | - | ||||
$ | 41,979 |
7_SHORT_TERM_LOAN_PAYABLE
7. SHORT TERM LOAN PAYABLE | 6 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
7. SHORT TERM LOAN PAYABLE | ' |
The Company had research costs of $349,913 that was converted to an unsecured promissory note May 1, 2013. The note calls for 10% interest and was due May 1, 2014. On May 15, 2014 the Company renewed the unsecured promissory note as a 10% convertible debenture, due May 15, 2015, in the principal amount of $350,000 along with a warrant exercisable for shares of common stock of the Company and 532,609 shares of Common Stock. On June 6, 2014 the convertible debenture was converted into common stock of the Company for a total issuance of 16,530,974 shares of Common Stock. | |
The Warrant is exercisable for three years from issuance to purchase up to the number of shares of Common Stock equal to the quotient obtained by dividing the original principal amount of the Debenture ($350,000) by the Warrant Exercise Price (subject to adjustment to maintain the original value proposition and to support the ability of Battelle to convert the full value of the indebtedness to shares of Common Stock) at a price per share equal to the Warrant Exercise Price in cash. The “Warrant Exercise Price” is equal to the lesser of the market value (defined as the mean market closing price per share over the 10 trading days immediately prior to the notice date of exercise) and $0.046 per share. | |
Interest in the amount of $2,031 was paid on this note for the six months ended June 30, 2014. |
8_CONVERTIBLE_NOTES_PAYABLE
8. CONVERTIBLE NOTES PAYABLE | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
8. CONVERTIBLE NOTES PAYABLE | ' | ||||||||||||||||
As of June 30, 2014 and December 31, 2013 the Company had the following convertible notes outstanding: | |||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
Principal (net) | Accrued Interest | Principal (net) | Accrued Interest | ||||||||||||||
July and August 2012 $1,060,000 Convertible Notes, 12% interest, due December 2013 and January 2014 (18 month notes), $170,000 and $180,000 outstanding , net of debt discount of $0 and $8,576, respectively | $ | 170,000 | $ | 39,030 | $ | 171,424 | $ | 30,610 | |||||||||
May 2013 $224,000 Convertible Note, 12% interest, due November 2014 (18 month note), $0 and $30,000, net of debt discount of $0 and $17,450, respectively | - | - | 12,550 | 2,257 | |||||||||||||
April 2013 $72,280 Convertible Note, 0% interest for the first 90 days, due April 2014, with a 10% original issue discount, $0 and $16,646 outstanding, net of debt discount of $0 and $4,241, respectively | - | - | 12,405 | - | |||||||||||||
June 2013 $34,560 Convertible Note, 0% interest for the first 90 days, due June 2014, with a 10% original issue discount, $0 and $34,650 outstanding, net of debt discount of $0 and $14,676, respectively | - | - | 19,884 | 3,456 | |||||||||||||
July 2013 $53,000 Convertible Note, 8% interest, due February 2014, $0 and $53,000 outstanding, net of debt discount of $0 and $19,395, respectively | - | - | 33,605 | 2,033 | |||||||||||||
July 2013 $30,024 Convertible Note, 10% one-time interest, due July 2014, with a 10% original issue discount, $0 and $30,024 outstanding, net of debt discount of $0 and $15,876, respectively | - | - | 14,148 | 3,002 | |||||||||||||
August 2013 $53,000 Convertible Note, 8% interest, due March 2014, $0 and $53,000 outstanding, net of debt discount of $0 and $28,716, respectively | - | - | 24,284 | 1,464 | |||||||||||||
September 2013 $10,000 Convertible Note, 10% interest, due September 2014 (12 month note), $0 and $10,000 outstanding, net of debt discount of $0 and $131, respectively | - | - | 9,869 | 330 | |||||||||||||
September 2013 $30,000 Convertible Note, 12% interest, due September 2014, with a $1,500 original issue discount, $0 and $30,000 outstanding, net of debt discount of $0 and $17,945, respectively | - | - | 12,055 | 937 | |||||||||||||
October 2013 $37,500 Convertible Note, 8% interest, due July 2014, $0 and $37,500 outstanding, net of debt discount of $0 and $26,182, respectively | - | - | 11,318 | 682 | |||||||||||||
October 2013 $97,700 Convertible Note, 8% interest, due April 2014, with a 12% original issue discount, $77,700 and $97,700 outstanding, net of debt discount of $0 and $64,774, respectively | 77,700 | 6,182 | 32,926 | 1,954 | |||||||||||||
November 2013 $42,500 Convertible Note, 8% interest, due August 2014, $0 and $42,500 outstanding, net of debt discount of $0 and $34,368, respectively | - | - | 8,132 | 494 | |||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
Principal (net) | Accrued Interest | Principal (net) | Accrued Interest | ||||||||||||||
November 2013 $27,800 Convertible Note, 10% one-time interest, due November 2014, with a 10% original issue discount, $9,140 and $27,800 outstanding, net of debt discount of $3,800 and $24,296, respectively | 5,340 | 568 | 3,504 | 2,780 | |||||||||||||
December 2013 $27,500 Convertible Note, 8% interest, due September 2014, $0 and $27,500 outstanding, net of debt discount of $0 and $26,005, respectively | - | - | 1,495 | 90 | |||||||||||||
December 2013 $69,120 Convertible Note, 0% interest for the first 90 days, due December 2014, with a 10% original issue discount, $43,440 and $69,120 outstanding, net of debt discount of $23,024 and $65,143, respectively | 20,416 | 2,404 | 3,977 | 6,912 | |||||||||||||
December 2013 $55,000 Convertible Note, 12% interest, due December 2014, with a $3,300 original issue discount, $30,000 and $55,000 outstanding, net of debt discount of $20,679 and $51,317, respectively | 9,321 | 2,042 | 3,683 | 442 | |||||||||||||
January 2014 $50,000 Convertible Note, 8% interest, due January 2015, $50,000 and $0 outstanding, net of debt discount of $27,775 and $0, respectively | 22,225 | 1,797 | - | - | (1) | ||||||||||||
January 2014 $50,000 Convertible Note, 8% interest, due January 2015, $50,000 and $0 outstanding, net of debt discount of $30,886 and $0, respectively | 19,114 | 1,677 | - | - | (2) | ||||||||||||
January 2014 $55,500 Convertible Note, 10% interest, due October 2014, with a $5,500 original issue discount, $55,500 and $0 outstanding, net of debt discount of $27,784 and $0, respectively | 27,716 | 2,418 | - | - | (3) | ||||||||||||
January 2014 $55,500 Convertible Note, 10% interest, due October 2014, with a $5,500 original issue discount, $50,000 and $0 outstanding, net of debt discount of $25,275 and $0, respectively | 24,725 | 2,151 | - | - | (4) | ||||||||||||
January 2014 $50,000 Convertible Note, 12% interest, due January 2015, $50,000 and $0 outstanding, net of debt discount of $28,904 and $0, respectively | 21,096 | 2,532 | - | - | (5) | ||||||||||||
February 2014 $50,000 Convertible Note, 8% interest, due February 2015, $50,000 and $0 outstanding, net of debt discount of $23,060 and $0, respectively | 26,940 | 1,523 | - | - | -6 | ||||||||||||
February 2014 $46,080 Convertible Note, 8% interest, due February 2015, $46,080 and $0 outstanding, net of debt discount of $27,462 and $0, respectively | 18,618 | 1,641 | - | - | -7 | ||||||||||||
February 2014 $28,800 Convertible Note, 10% one-time interest, due February 2015, with a 10% original issue discount, $28,800 and $0 outstanding, net of debt discount of $18,944 and $0, respectively | 9,856 | 1,081 | - | - | -8 | ||||||||||||
February 2014 $51,700 Convertible Note, 12% interest, due February 2015, with a $3,300 original issue discount, $51,700 and $0 outstanding, net of debt discount of $30,878 and $0, respectively | 20,822 | 2,499 | - | - | -9 | ||||||||||||
March 2014 $37,500 Convertible Note, 8% interest, due December 2014, $37,500 and $0 outstanding, net of debt discount of $24,134 and $0, respectively | 13,366 | 838 | - | - | -10 | ||||||||||||
March 2014 $50,000 Convertible Note, 10% interest, due March 2015, $50,000 and $0 outstanding, net of debt discount of $36,164 and $0, respectively | 13,836 | 1,384 | - | - | -11 | ||||||||||||
March 2014 $165,910 Convertible Note, 10% interest, due April 2015, with a $16,450 original issue discount, $165,910 and $0 outstanding, net of debt discount of $120,069 and $0, respectively | 45,841 | 4,773 | - | - | -12 | ||||||||||||
April 2014 $32,000 Convertible Note, 10% interest, due April 2015, $32,000 and $0 outstanding, net of debt discount of $20,673 and $0, respectively | 11,327 | 763 | - | - | (13) | ||||||||||||
April 2014 $46,080 Convertible Note, 10% interest due April 2015, $46,080 and $0 outstanding, net of debt discount of $36,359 and $0, respectively | 9,721 | 972 | - | - | -14 | ||||||||||||
May 2014 $42,500 Convertible Note, 8% interest, due February 2015, $42,500 and $0 outstanding, net of debt discount of $36,056 and $0, respectively | 6,444 | 391 | - | - | (15) | ||||||||||||
May 2014 $50,000 Convertible Note, 12% interest, due May 2015, with a $5,000 original issue discount, $50,000 and $0 outstanding, net of debt discount of $44,520 and $0, respectively | 5,480 | 658 | - | - | (16) | ||||||||||||
June 2014 $37,500 Convertible Note, 8% interest, due March 2015, $37,500 and $0 outstanding, net of debt discount of $35,403 and $0, respectively | 2,097 | 140 | - | - | (17) | ||||||||||||
June 2014 $28,800 Convertible Note, 10% interest due June 2015, $28,800 and $0 outstanding, net of debt discount of $28,248 and $0, respectively | 552 | 55 | - | - | -18 | ||||||||||||
June 2014 $40,000 Convertible Note, 10% interest, due June 2015, $40,000 and $0 outstanding, net of debt discount of $39,562 and $0, respectively | 438 | 44 | - | - | -19 | ||||||||||||
June 2014 $40,000 Convertible Note, 10% interest, due June 2015, $40,000 and $0 outstanding, net of debt discount of $39,562 and $0, respectively | 438 | 44 | - | - | -20 | ||||||||||||
June 2014 $56,589 Convertible Note, 10% interest, due July 2015, with a $5,611 original issue discount, $56,589 and $0 outstanding, net of debt discount of $56,589 and $0, respectively | - | - | - | - | -21 | ||||||||||||
Total Convertible Notes Payable, Net | $ | 583,429 | $ | 77,607 | $ | 375,259 | $ | 57,443 | |||||||||
(1) The Company borrowed $50,000 January 2014, due January 2015. The holder of the note has the right, after the first one hundred eighty days of the note (July 16, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.07 or 58% of the lowest trade price in the 10 trading days previous to the conversion. The Company recorded a debt discount of $46,249 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $1,797 interest expense was recorded, and total amortization of $18,474 was recorded resulting in a debt discount of $27,775 at June 30, 2014. | |||||||||||||||||
(2) The Company borrowed $50,000 January 2014, due January 2015. The holder of the note has the right, after the first one hundred eighty days of the note (July27, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.09 or 58% of the lowest trade price in the 10 trading days previous to the conversion. The Company recorded a debt discount of $49,636 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $1,677 interest expense was recorded, and total amortization of $18,750 was recorded resulting in a debt discount of $30,886 at June 30, 2014. | |||||||||||||||||
(3) The Company borrowed $55,500 January 2014, due October 2014. The holder of the note has the right, after the first one hundred eighty days of the note (July 21, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.28 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. During that time the amount of any prepayment would equal 111.2% of the outstanding principal balance of the note ($61,716) with no interest on the note. The Company recorded a debt discount of $55,500 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $27,716 resulting in a debt discount of $27,784 at June 30, 2014. | |||||||||||||||||
(4) The Company borrowed $55,500 January 2014, due October 2014. The holder of the note has the right, after the first one hundred eighty days of the note (July 23, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.28 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. During that time the amount of any prepayment would equal 111.2% of the outstanding principal balance of the note ($61,716) with no interest on the note. The Company recorded a debt discount of $50,000 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $24,725 resulting in a debt discount of $25,275 at June 30, 2014. | |||||||||||||||||
(5) The Company borrowed $50,000 January 2014, due January 2015. The holder of the note has the right, after the first one hundred eighty days of the note (July 27, 2014), to convert the note and accrued interest into common stock at a price per share equal to 40% of the lowest trade price in the 15 trading days previous to the conversion. The Company recorded a debt discount of $50,000 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $2,532 interest expense was recorded, and total amortization of $21,096 was recorded resulting in a debt discount of $28,904 at June 30, 2014. | |||||||||||||||||
(6) The Company borrowed $50,000 February 2014, due February 2015. The holder of the note has the right, after the first one hundred eighty days of the note (August 10, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.07 or 58% of the lowest trade price in the 10 trading days previous to the conversion. The Company recorded a debt discount of $37,307 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $1,523 interest expense was recorded, and total amortization of $14,247 was recorded resulting in a debt discount of $23,060 at June 30, 2014. | |||||||||||||||||
(7) The Company borrowed $46,080 February 2014, due February 2015. The holder of the note has the right, after the first one hundred eighty days of the note (August 10, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.08 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. The Company recorded a debt discount of $42,653 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $15,191 resulting in a debt discount of $27,462 at June 30, 2014. | |||||||||||||||||
(8) The Company borrowed $28,800 February 2014, due February 2015, with a one-time interest charge of 10%. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.195 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The note has an original issue discount of $2,800 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $28,800 related to the conversion feature and original issue discount, along with a derivative liability at inception . Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, interest expense of $1,081 was recorded, and total amortization of $9,856 was recorded resulting in a debt discount of $18,944 at June 30, 2014. | |||||||||||||||||
(9) The Company borrowed $51,700 February 2014, due February 2015. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.16 or 55% of the lowest trade price in the 20 trading days previous to the conversion. The note has an original issue discount of $3,300 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $51,700 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $2,499 of interest expense was recorded, and total amortization of $20,822 was recorded resulting in a debt discount of $30,878 at June 30, 2014. | |||||||||||||||||
(10) The Company borrowed $37,500 March 2014, due December 2014, with interest at 8%. The holder of the note has the right, after the first one hundred eighty days of the note (September 16, 2014), to convert the note and accrued interest into common stock at a price per share equal to 61% (representing a discount rate of 39%) of the average of the lowest five trading prices for the Common Stock during the ten trading day period ending one trading day prior to the date of Conversion Notice. The Company has the right to prepay the note and accrued interest during the first one hundred eighty days following the date of the note. During that time the amount of any prepayment during the first sixty days is 130% of the outstanding amounts owed while the amount of the prepayment increases every subsequent thirty days to 135%, 140%, 145%, and 150% of the outstanding amounts owed. The Company recorded a debt discount of $37,500 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the eighteen month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $13,366 resulting in a debt discount of $24,134 at June 30, 2014. Also during the six months ending June 30, 2014, interest expense of $838 was recorded for the note. | |||||||||||||||||
(11) The Company borrowed $50,000 March 2014, due March 2015. The holder of the note has the right, after the first one hundred eighty days of the note (September 18, 2014), to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company recorded a debt discount of $50,000 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, $1,384 of interest expense was recorded, and total amortization was recorded in the amount of $13,836 resulting in a debt discount of $36,164 at June 30, 2014. | |||||||||||||||||
(12) The Company borrowed $165,910 March 2014, due April 2015. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $1.00 or 65% of the average of the three lowest trading prices in the 20 trading days previous to the conversion. The note has an original issue discount of $16,450 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $163,394 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $4,773 of interest expense was recorded, and total amortization of $43,325 was recorded resulting in a debt discount of $120,069 at June 30, 2014. | |||||||||||||||||
(13) The Company borrowed $32,000 April 2014, due April 2015. The holder of the note has the right, after the first one hundred eighty days of the note (October 1, 2014), to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company recorded a debt discount of $27,143 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $6,470 resulting in a debt discount of $20,673 at June 30, 2014. | |||||||||||||||||
(14) The Company borrowed $46,080 April 2014, due April 2015. The holder of the note has the right, after the first one hundred eighty days of the note (October 11, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.08 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. The Company recorded a debt discount of $46,080 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $9,721 resulting in a debt discount of $36,359 at June 30, 2014. | |||||||||||||||||
(15) The Company borrowed $42,500 May 2014, due February 2015, with interest at 8%. The holder of the note has the right, after the first one hundred eighty days of the note (November 16, 2014), to convert the note and accrued interest into common stock at a price per share equal to 61% (representing a discount rate of 39%) of the average of the lowest five trading prices for the Common Stock during the ten trading day period ending one trading day prior to the date of Conversion Notice. The Company has the right to prepay the note and accrued interest during the first one hundred eighty days following the date of the note. During that time the amount of any prepayment during the first sixty days is 130% of the outstanding amounts owed while the amount of the prepayment increases every subsequent thirty days to 135%, 140%, 145%, and 150% of the outstanding amounts owed. The Company recorded a debt discount of $42,500 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the nine month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $6,444 resulting in a debt discount of $36,054 at June 30, 2014. Also during the six months ending June 30, 2014, interest expense of $391 was recorded for the note. | |||||||||||||||||
(16) The Company borrowed $55,000 May 2014, due May 2015. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.16 or 55% of the lowest trade price in the 20 trading days previous to the conversion. The note has an original issue discount of $5,000 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $50,000 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $658 of interest expense was recorded, and total amortization of $5,480 was recorded resulting in a debt discount of $49,520 at June 30, 2014. | |||||||||||||||||
(17) The Company borrowed $37,500 June 2014, due March 2015, with interest at 8%. The holder of the note has the right, after the first one hundred eighty days of the note (December 10, 2014), to convert the note and accrued interest into common stock at a price per share equal to 61% (representing a discount rate of 39%) of the average of the lowest five trading prices for the Common Stock during the ten trading day period ending one trading day prior to the date of Conversion Notice. The Company has the right to prepay the note and accrued interest during the first one hundred eighty days following the date of the note. During that time the amount of any prepayment during the first sixty days is 130% of the outstanding amounts owed while the amount of the prepayment increases every subsequent thirty days to 135%, 140%, 145%, and 150% of the outstanding amounts owed. The Company recorded a debt discount of $37,500 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the eighteen month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $2,097 resulting in a debt discount of $35,403 at June 30, 2014. Also during the six months ending June 30, 2014, interest expense of $140 was recorded for the note. | |||||||||||||||||
(18) The Company borrowed $28,800 June 2014, due June 2015. The holder of the note has the right, after the first one hundred eighty days of the note (December 20, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.08 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. The Company recorded a debt discount of $28,800 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $552 resulting in a debt discount of $28,248 at June 30, 2014. | |||||||||||||||||
(19) The Company borrowed $40,000 June 2014, due June 2015. The holder of the note has the right, after the first one hundred eighty days of the note (December 23, 2014), to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note and accrued interest during the first one hundred eighty days following the date of the note. During that time the amount of the prepayment is 145% of the outstanding amounts owed. The Company recorded a debt discount of $40,000 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $438 resulting in a debt discount of $39,562 at June 30, 2014. | |||||||||||||||||
(20) The Company borrowed $40,000 June 2014, due June 2015. The holder of the note has the right, after the first one hundred eighty days of the note (December 23, 2014), to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note and accured interest during the first one hundred eighty days following the date of the note. During that time the amount of any repayment is 145% of the outstanding amounts owed. The Company recorded a debt discount of $40,000 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $438 resulting in a debt discount of $39,562 at June 30, 2014. Also during the six months ending June 30, 2014, interest expense of $44 was recorded for the note. | |||||||||||||||||
(21) The Company borrowed $56,589 June 2014, due July 2015. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $1.00 or 65% of the average of the three lowest trading prices in the 20 trading days previous to the conversion. The note has an original issue discount of $5,611 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $56,589 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $0 of interest expense was recorded, and total amortization of $0 was recorded resulting in a debt discount of $56,589 at June 30, 2014. |
9_COMMON_STOCK_OPTIONS_AND_WAR
9. COMMON STOCK OPTIONS AND WARRANTS | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
9. COMMON STOCK OPTIONS AND WARRANTS | ' | ||||||||||||||||||||
The Company recognizes in the financial statements compensation related to all stock-based awards, including stock options and warrants, based on their estimated grant-date fair value. The Company has estimated expected forfeitures and is recognizing compensation expense only for those awards expected to vest. All compensation is recognized by the time the award vests. | |||||||||||||||||||||
The following schedule summarizes the changes in the Company’s stock options during the six months ended June 30, 2014: | |||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Options Outstanding | Average | Average | |||||||||||||||||||
Number | Exercise | Remaining | Aggregate | Exercise | |||||||||||||||||
Of | Price | Contractual | Intrinsic | Price | |||||||||||||||||
Shares | Per Share | Life | Value | Per Share | |||||||||||||||||
Balance at December 31, 2013 | 10,350,000 | $ | 0.08-0.28 | 3.78 years | $ | - | $ | 0.14 | |||||||||||||
Options granted | - | $ | - | - | $ | - | |||||||||||||||
Options exercised | - | $ | - | - | $ | - | |||||||||||||||
Options expired | (1,465,000 | ) | $ | 0.08-0.15 | - | $ | 0.02 | ||||||||||||||
Balance at June 30, 2014 | 8,885,000 | $ | 0.09-0.28 | 3.88 years | $ | - | $ | 0.14 | |||||||||||||
Exercisable at December 31, 2013 | 8,975,000 | $ | 0.08-0.28 | 2.96 years | $ | - | $ | 0.13 | |||||||||||||
Exercisable at June 30, 2014 | 7,966,250 | $ | 0.09-0.28 | 3.88 years | $ | - | $ | 0.14 | |||||||||||||
The following schedule summarizes the changes in the Company’s stock warrants during the six months ended June 30, 2014: | |||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Warrants Outstanding | Average | Average | |||||||||||||||||||
Number | Exercise | Remaining | Aggregate | Exercise | |||||||||||||||||
Of | Price | Contractual | Intrinsic | Price | |||||||||||||||||
Shares | Per Share | Life | Value | Per Share | |||||||||||||||||
Balance at December 31, 2013 | 40,103,548 | $ | 0.06-0.25 | 3.19 years | $ | 50,796 | $ | 0.11 | |||||||||||||
Warrants granted | 17,895,652 | $ | 0.05 | 2.98 years | $ | 0.05 | |||||||||||||||
Warrants exercised | (100,000 | ) | $ | 0.06 | - | $ | 0.06 | ||||||||||||||
Warrants expired | (500,000 | ) | $ | 0.06 | - | $ | 0.06 | ||||||||||||||
Balance at June 30, 2014 | 57,399,200 | $ | 0.05-0.25 | 2.91 years | $ | 4,999,989 | $ | 0.07 | |||||||||||||
Exercisable at December 31, 2013 | 40,103,548 | $ | 0.06-0.25 | 3.19 years | $ | 50,796 | $ | 0.11 | |||||||||||||
Exercisable at June 30, 2014 | 57,399,200 | $ | 0.05-0.25 | 2.91 years | $ | 4,999,989 | $ | 0.07 |
10_STOCKHOLDERS_EQUITY
10. STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
NOTE 10. STOCKHOLDERS' EQUITY | ' |
Common Stock Issued for Cash and the Exercise of Warrants | |
In January 2014, the Company issued 100,000 restricted shares of its common stock shares in exchange for $6,000 in exchange for the cancellation of the warrants attached to the convertible notes received in July 2012. | |
Common Stock Issued for Services | |
In February 2014 the Company issued 71,250 restricted shares of its common stock, representing $5,000, to a consultant for services. | |
In March 2014 the Company issued 100,000 restricted shares of its common stock representing $5,900, to a consultant for services. | |
Common Stock Issued for Accounts Payable | |
In January 2014 the Company issued 100,000 restricted shares of its common stock to a consultant in payment of $7,500 in fees owed. | |
Common Stock Issued for Convertible Debt | |
The Company issued 10,400 shares of its common stock and a convertible promissory note in the amount of $26,000 with interest payable at 10% per annum in January 2014 to our major stockholder, who is also a Director. The Note matures in January of 2015. The entire outstanding principal balance and any outstanding fees or interest is due and payable in full on the maturity date. At the option of the holder, the note and interest is convertible into the Company’s common stock at $0.095 per share. The value of the $26,000 debt plus the $0.095 fair market value of the 10,400 shares at the date of the agreement was prorated to arrive at the allocation of the original $26,000 debt and the value of the 10,400 shares and the beneficial conversion feature. The computation resulted in an allocation of $24,096 toward the debt and $952 to the shares and $952 to the beneficial conversion feature. The $952 value of the shares and the $952 value of the beneficial conversion feature are then amortized to interest over the twelve month life of the debt. Interest expense of $876 has been accrued and added to the note payable bringing the total debt balance related to this convertible promissory note to $24,972 as of June 30, 2014. Additionally, $1,190 worth of interest expense on the notes principal balance has been recognized in the accompanying financial statements for the six months ending June 30, 2014. | |
In February 2014 the Company issued a 12% Convertible Promissory Note in the amount of $55,000 to an unrelated company. The note calls for a 200,000 restricted shares of the Company’s common stock to be issued a loan fee. The note is not convertible by the holder for the first 180 days, in which time the Company can repay the note plus interest. If the Company repays the note within the first 30 days the interest rate is calculated at 25% of the note balance, if paid between 31 days and 179 days the interest rate is calculated at 35% of the note balance, and if repaid after 180 days the interest rate is calculated at 45% of the note balance. | |
The Company issued 5,200 shares of its common stock and a convertible promissory note in the amount of $13,000 with interest payable at 10% per annum in April 2014 to our major stockholder, who is also a Director. The Note matures in April of 2015. The entire outstanding principal balance and any outstanding fees or interest is due and payable in full on the maturity date. At the option of the holder, the note and interest is convertible into the Company’s common stock at $0.095 per share. The value of the $13,000 debt plus the $0.095 fair market value of the 5,200 shares at the date of the agreement was prorated to arrive at the allocation of the original $13,000 debt and the value of the 5,200 shares and the beneficial conversion feature. The computation resulted in an allocation of $12,809 toward the debt and $191 to the shares and $0 to the beneficial conversion feature. The $191 value of the shares and the $0 value of the beneficial conversion feature are then amortized to interest over the twelve month life of the debt. Interest expense of $40 has been accrued and added to the note payable bringing the total debt balance related to this convertible promissory note to $12,849 as of June 30, 2014. Additionally, $270 worth of interest expense on the notes principal balance has been recognized in the accompanying financial statements for the six months ending June 30, 2014. | |
In May 2014 the Company issued a 12% Convertible Promissory Note in the amount of $55,000 to an unrelated company. The note calls for a 532,609 restricted shares of the Company’s common stock to be issued a loan fee. The note is not convertible by the holder for the first 180 days, in which time the Company can repay the note plus interest. If the Company repays the note within the first 30 days the interest rate is calculated at 25% of the note balance, if paid between 31 days and 179 days the interest rate is calculated at 35% of the note balance, and if repaid after 180 days the interest rate is calculated at 45% of the note balance. | |
The Company issued 10,400 shares of its common stock and a convertible promissory note in the amount of $26,000 with interest payable at 10% per annum in May 2014 to our major stockholder, who is also a Director. The Note matures in May of 2015. The entire outstanding principal balance and any outstanding fees or interest is due and payable in full on the maturity date. At the option of the holder, the note and interest is convertible into the Company’s common stock at $0.06 per share. The value of the $26,000 debt plus the $0.06 fair market value of the 10,400 shares at the date of the agreement was prorated to arrive at the allocation of the original $26,000 debt and the value of the 10,400 shares and the beneficial conversion feature. The computation resulted in an allocation of $25,671 toward the debt and $329 to the shares and $0 to the beneficial conversion feature. The $329 value of the shares and the $0 value of the beneficial conversion feature are then amortized to interest over the twelve month life of the debt. Interest expense of $40 has been accrued and added to the note payable bringing the total debt balance related to this convertible promissory note to $25,711 as of June 30, 2014. Additionally, $325 worth of interest expense on the notes principal balance has been recognized in the accompanying financial statements for the six months ending June 30, 2014. | |
In May 2014 the Company issued a 12% Convertible Promissory Note in the amount of $55,000 to an unrelated company. The note calls for a 500,000 restricted shares of the Company’s common stock to be issued a loan fee. The note is not convertible by the holder for the first 180 days, in which time the Company can repay the note plus interest. If the Company repays the note within the first 30 days the interest rate is calculated at 25% of the note balance, if paid between 31 days and 179 days the interest rate is calculated at 35% of the note balance, and if repaid after 180 days the interest rate is calculated at 45% of the note balance. | |
The Company issued 10,400 shares of its common stock and a convertible promissory note in the amount of $26,000 with interest payable at 10% per annum in June 2014 to our major stockholder, who is also a Director. The Note matures in June of 2015. The entire outstanding principal balance and any outstanding fees or interest is due and payable in full on the maturity date. At the option of the holder, the note and interest is convertible into the Company’s common stock at $0.046 per share. The value of the $26,000 debt plus the $0.046 fair market value of the 10,400 shares at the date of the agreement was prorated to arrive at the allocation of the original $26,000 debt and the value of the 10,400 shares and the beneficial conversion feature. The computation resulted in an allocation of $25,794 toward the debt and $206 to the shares and $0 to the beneficial conversion feature. The $206 value of the shares and the $0 value of the beneficial conversion feature are then amortized to interest over the twelve month life of the debt. Interest expense of $10 has been accrued and added to the note payable bringing the total debt balance related to this convertible promissory note to $25,804 as of June 30, 2014. Additionally, $110 worth of interest expense on the notes principal balance has been recognized in the accompanying financial statements for the six months ending June 30, 2014. | |
Common Stock Issued for Debt Converted | |
On May 15, 2014, Advanced Medical Isotope Corporation (the “Company”) entered into an agreement with Battelle Memorial Institute, an Ohio nonprofit corporation (“Battelle”), pursuant to which the Company issued to Battelle (i) a 10% convertible debenture in the principal amount of $350,000 (the “Debenture”), (ii) a warrant (the “Warrant”) exercisable for shares of common stock of the Company (the “Common Stock”), and (iii) 532,609 shares of Common Stock in satisfaction of a promissory note issued by the Company to Battelle on May 1, 2013 in the principal amount of $349,913.41 as payment for research services performed by Battelle for the Company. The Debenture was scheduled to mature on May 15, 2015 and on June 6, 2014 Battelle converted the Debenture into Common Stock for a total issuance of 16,530,974 shares of Common Stock. | |
During the six months ending June 30, 2014 the Company issued 24,212,570 shares of unrestricted stock in exchange for convertible debt raised in 2013. The Company also issued 853,128 shares of unrestricted stock representing of the accrued interest on the convertible debt that was converted. |
11_SUPPLEMENTAL_CASH_FLOW_INFO
11. SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ' |
NOTE 11. SUPPLEMENTAL CASH FLOW INFORMATION | ' |
During the six months ended June 30, 2014 the Company issued 100,000 shares of common stock for an extinguishment of $7,500 worth of debt. | |
During the six months ended June 30, 2014 the Company issued 1,269,009 shares of common stock as a loan fee of $121,906. | |
During the six months ended June 30, 2014, the Company issued 41,596,673 shares of stock to settle convertible notes payable with a principal note balance, accrued interest, interest expense, debt discount, and derivative liabilities valued at $1,154,465 and the Company recognized a $75,049 loss on settlement of debt. |
12_SUBSEQUENT_EVENTS
12. SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
NOTE 12. SUBSEQUENT EVENTS | ' |
In July 2014 the Company received $20,000 in exchange for a convertible 10%, one year note. The note plus interest is convertible at the option of the note holder into common stock share at $0.046 per share. In addition the Company issued the note holder 8,000 shares of its common stock as a loan origination fee. | |
In July 2014 the Company issued 200,000 common stock shares in exchange for Consulting Services. | |
In July 2014 the Company issued a 10% Convertible Promissory Note in the amount of $37,500 to an unrelated company. The note is not convertible by the holder for the first 180 days, in which time the Company can repay the note plus interest. If the Company repays the note within the first 180 days the Company will pay 145% of the unpaid note balance plus interest. | |
During the month of July 2014 the Company issued 14,983,002 shares of unrestricted stock in exchange for convertible debt raised in 2013 and 2014. The Company also issued 649,536 shares of unrestricted stock representing of the accrued interest on the convertible debt that was converted. | |
During the month of August 2014 the Company issued 4,812,500 shares of unrestricted stock in exchange for convertible debt raised in 2013 and 2014. The Company also issued 109,019 shares of unrestricted stock representing of the accrued interest on the convertible debt that was converted. | |
The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no additional subsequent events to disclose. |
1_BASIS_OF_PRESENTATION_AND_SI1
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Basis Of Presentation And Significant Accounting Policies Policies | ' | ||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Fair Value of Financial Instruments, requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of June 30, 2014 and December 31, 2013, the balances reported for cash, prepaid expenses, accounts receivable, accounts payable, and accrued expenses, approximate the fair value because of their short maturities. | |||||||||||||||||
The Company adopted ASC Topic 820 (originally issued as SFAS 157, “Fair Value Measurements”) as of January 1, 2008 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. | |||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: | |||||||||||||||||
Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; | |||||||||||||||||
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and | |||||||||||||||||
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||||||
The Company measures certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis were calculated using the Black-Scholes pricing model and are as follows at June 30, 2014: | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets | |||||||||||||||||
Total Assets Measured at Fair Value | $ | - | $ | - | $ | - | $ | - | |||||||||
Liabilities | |||||||||||||||||
Derivative Liability | $ | 2,132,187 | $ | - | $ | - | $ | 2,132,187 | |||||||||
Total Liabilities Measured at Fair Value | $ | 2,132,187 | $ | - | $ | - | $ | 2,132,187 | |||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
There are no recently issued accounting pronouncements that the Company believes are applicable or would have a material impact on the financial statements of the Company. |
1_BASIS_OF_PRESENTATION_AND_SI2
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Basis Of Presentation And Significant Accounting Policies Tables | ' | ||||||||||||||||
Schedule of fair value of financial instruments | ' | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets | |||||||||||||||||
Total Assets Measured at Fair Value | $ | - | $ | - | $ | - | $ | - | |||||||||
Liabilities | |||||||||||||||||
Derivative Liability | $ | 2,132,187 | $ | - | $ | - | $ | 2,132,187 | |||||||||
Total Liabilities Measured at Fair Value | $ | 2,132,187 | $ | - | $ | - | $ | 2,132,187 |
3_FIXED_ASSETS_Tables
3. FIXED ASSETS (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Fixed Assets Tables | ' | ||||||||
Fixed assets | ' | ||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
Production equipment | $ | 2,131,377 | $ | 2,131,377 | |||||
Building | 446,772 | 446,772 | |||||||
Leasehold improvements | 3,235 | 3,235 | |||||||
Office equipment | 32,769 | 32,769 | |||||||
2,614,153 | 2,614,153 | ||||||||
Less accumulated depreciation | (2,602,320 | ) | (2,599,240 | ) | |||||
$ | 11,833 | $ | 14,913 | ||||||
Accumulated depreciation related to fixed assets | ' | ||||||||
June 31, 2014 | 31-Dec-13 | ||||||||
Production equipment | $ | 2,121,646 | $ | 2,119,830 | |||||
Building | 446,772 | 446,772 | |||||||
Leasehold improvements | 3,235 | 3,235 | |||||||
Office equipment | 30,667 | 29,403 | |||||||
$ | 2,602,320 | $ | 2,599,240 |
4_INTANGIBLE_ASSETS_Tables
4. INTANGIBLE ASSETS (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Intangible Assets Tables | ' | ||||||||
INTANGIBLE ASSETS | ' | ||||||||
30-Jun-14 | 31-Dec-13 | ||||||||
License Fee | $ | 112,500 | $ | 112,500 | |||||
Less accumulated amortization | (108,245 | ) | (105,329 | ) | |||||
4,255 | 7,171 | ||||||||
Patents and intellectual property | 35,482 | 35,482 | |||||||
Intangible assets net of accumulated amortization | $ | 39,737 | $ | 42,653 |
5_RELATED_PARTY_TRANSACTIONS_T
5. RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Related Party Transactions Tables | ' | ||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||
Six months ended | Six months ended | ||||||||
30-Jun-14 | 30-Jun-13 | ||||||||
Office and warehouse lease effective August 1, 2007 | |||||||||
Monthly rental payments | $ | 71,426 | $ | 71,426 | |||||
Rental expense in the form of stock issuance | - | - | |||||||
Corporate office | 9,000 | 17,460 | |||||||
Total Rental Expense | $ | 80,426 | $ | 88,886 |
6_PREPAID_EXPENSES_PAID_WITH_S1
6. PREPAID EXPENSES PAID WITH STOCK (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Prepaid Expenses Paid With Stock Tables | ' | ||||
Prepaid expenses | ' | ||||
For the twelve month period ending December 31, 2014 | $ | 41,979 | |||
Thereafter | - | ||||
$ | 41,979 | ||||
8_CONVERTIBLE_NOTES_PAYABLE_Ta
8. CONVERTIBLE NOTES PAYABLE (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Convertible notes outstanding | ' | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
Principal (net) | Accrued Interest | Principal (net) | Accrued Interest | ||||||||||||||
July and August 2012 $1,060,000 Convertible Notes, 12% interest, due December 2013 and January 2014 (18 month notes), $170,000 and $180,000 outstanding , net of debt discount of $0 and $8,576, respectively | $ | 170,000 | $ | 39,030 | $ | 171,424 | $ | 30,610 | |||||||||
May 2013 $224,000 Convertible Note, 12% interest, due November 2014 (18 month note), $0 and $30,000, net of debt discount of $0 and $17,450, respectively | - | - | 12,550 | 2,257 | |||||||||||||
April 2013 $72,280 Convertible Note, 0% interest for the first 90 days, due April 2014, with a 10% original issue discount, $0 and $16,646 outstanding, net of debt discount of $0 and $4,241, respectively | - | - | 12,405 | - | |||||||||||||
June 2013 $34,560 Convertible Note, 0% interest for the first 90 days, due June 2014, with a 10% original issue discount, $0 and $34,650 outstanding, net of debt discount of $0 and $14,676, respectively | - | - | 19,884 | 3,456 | |||||||||||||
July 2013 $53,000 Convertible Note, 8% interest, due February 2014, $0 and $53,000 outstanding, net of debt discount of $0 and $19,395, respectively | - | - | 33,605 | 2,033 | |||||||||||||
July 2013 $30,024 Convertible Note, 10% one-time interest, due July 2014, with a 10% original issue discount, $0 and $30,024 outstanding, net of debt discount of $0 and $15,876, respectively | - | - | 14,148 | 3,002 | |||||||||||||
August 2013 $53,000 Convertible Note, 8% interest, due March 2014, $0 and $53,000 outstanding, net of debt discount of $0 and $28,716, respectively | - | - | 24,284 | 1,464 | |||||||||||||
September 2013 $10,000 Convertible Note, 10% interest, due September 2014 (12 month note), $0 and $10,000 outstanding, net of debt discount of $0 and $131, respectively | - | - | 9,869 | 330 | |||||||||||||
September 2013 $30,000 Convertible Note, 12% interest, due September 2014, with a $1,500 original issue discount, $0 and $30,000 outstanding, net of debt discount of $0 and $17,945, respectively | - | - | 12,055 | 937 | |||||||||||||
October 2013 $37,500 Convertible Note, 8% interest, due July 2014, $0 and $37,500 outstanding, net of debt discount of $0 and $26,182, respectively | - | - | 11,318 | 682 | |||||||||||||
October 2013 $97,700 Convertible Note, 8% interest, due April 2014, with a 12% original issue discount, $77,700 and $97,700 outstanding, net of debt discount of $0 and $64,774, respectively | 77,700 | 6,182 | 32,926 | 1,954 | |||||||||||||
November 2013 $42,500 Convertible Note, 8% interest, due August 2014, $0 and $42,500 outstanding, net of debt discount of $0 and $34,368, respectively | - | - | 8,132 | 494 | |||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
Principal (net) | Accrued Interest | Principal (net) | Accrued Interest | ||||||||||||||
November 2013 $27,800 Convertible Note, 10% one-time interest, due November 2014, with a 10% original issue discount, $9,140 and $27,800 outstanding, net of debt discount of $3,800 and $24,296, respectively | 5,340 | 568 | 3,504 | 2,780 | |||||||||||||
December 2013 $27,500 Convertible Note, 8% interest, due September 2014, $0 and $27,500 outstanding, net of debt discount of $0 and $26,005, respectively | - | - | 1,495 | 90 | |||||||||||||
December 2013 $69,120 Convertible Note, 0% interest for the first 90 days, due December 2014, with a 10% original issue discount, $43,440 and $69,120 outstanding, net of debt discount of $23,024 and $65,143, respectively | 20,416 | 2,404 | 3,977 | 6,912 | |||||||||||||
December 2013 $55,000 Convertible Note, 12% interest, due December 2014, with a $3,300 original issue discount, $30,000 and $55,000 outstanding, net of debt discount of $20,679 and $51,317, respectively | 9,321 | 2,042 | 3,683 | 442 | |||||||||||||
January 2014 $50,000 Convertible Note, 8% interest, due January 2015, $50,000 and $0 outstanding, net of debt discount of $27,775 and $0, respectively | 22,225 | 1,797 | - | - | (1) | ||||||||||||
January 2014 $50,000 Convertible Note, 8% interest, due January 2015, $50,000 and $0 outstanding, net of debt discount of $30,886 and $0, respectively | 19,114 | 1,677 | - | - | (2) | ||||||||||||
January 2014 $55,500 Convertible Note, 10% interest, due October 2014, with a $5,500 original issue discount, $55,500 and $0 outstanding, net of debt discount of $27,784 and $0, respectively | 27,716 | 2,418 | - | - | (3) | ||||||||||||
January 2014 $55,500 Convertible Note, 10% interest, due October 2014, with a $5,500 original issue discount, $50,000 and $0 outstanding, net of debt discount of $25,275 and $0, respectively | 24,725 | 2,151 | - | - | (4) | ||||||||||||
January 2014 $50,000 Convertible Note, 12% interest, due January 2015, $50,000 and $0 outstanding, net of debt discount of $28,904 and $0, respectively | 21,096 | 2,532 | - | - | (5) | ||||||||||||
February 2014 $50,000 Convertible Note, 8% interest, due February 2015, $50,000 and $0 outstanding, net of debt discount of $23,060 and $0, respectively | 26,940 | 1,523 | - | - | -6 | ||||||||||||
February 2014 $46,080 Convertible Note, 8% interest, due February 2015, $46,080 and $0 outstanding, net of debt discount of $27,462 and $0, respectively | 18,618 | 1,641 | - | - | -7 | ||||||||||||
February 2014 $28,800 Convertible Note, 10% one-time interest, due February 2015, with a 10% original issue discount, $28,800 and $0 outstanding, net of debt discount of $18,944 and $0, respectively | 9,856 | 1,081 | - | - | -8 | ||||||||||||
February 2014 $51,700 Convertible Note, 12% interest, due February 2015, with a $3,300 original issue discount, $51,700 and $0 outstanding, net of debt discount of $30,878 and $0, respectively | 20,822 | 2,499 | - | - | -9 | ||||||||||||
March 2014 $37,500 Convertible Note, 8% interest, due December 2014, $37,500 and $0 outstanding, net of debt discount of $24,134 and $0, respectively | 13,366 | 838 | - | - | -10 | ||||||||||||
March 2014 $50,000 Convertible Note, 10% interest, due March 2015, $50,000 and $0 outstanding, net of debt discount of $36,164 and $0, respectively | 13,836 | 1,384 | - | - | -11 | ||||||||||||
March 2014 $165,910 Convertible Note, 10% interest, due April 2015, with a $16,450 original issue discount, $165,910 and $0 outstanding, net of debt discount of $120,069 and $0, respectively | 45,841 | 4,773 | - | - | -12 | ||||||||||||
April 2014 $32,000 Convertible Note, 10% interest, due April 2015, $32,000 and $0 outstanding, net of debt discount of $20,673 and $0, respectively | 11,327 | 763 | - | - | (13) | ||||||||||||
April 2014 $46,080 Convertible Note, 10% interest due April 2015, $46,080 and $0 outstanding, net of debt discount of $36,359 and $0, respectively | 9,721 | 972 | - | - | -14 | ||||||||||||
May 2014 $42,500 Convertible Note, 8% interest, due February 2015, $42,500 and $0 outstanding, net of debt discount of $36,056 and $0, respectively | 6,444 | 391 | - | - | (15) | ||||||||||||
May 2014 $50,000 Convertible Note, 12% interest, due May 2015, with a $5,000 original issue discount, $50,000 and $0 outstanding, net of debt discount of $44,520 and $0, respectively | 5,480 | 658 | - | - | (16) | ||||||||||||
June 2014 $37,500 Convertible Note, 8% interest, due March 2015, $37,500 and $0 outstanding, net of debt discount of $35,403 and $0, respectively | 2,097 | 140 | - | - | (17) | ||||||||||||
June 2014 $28,800 Convertible Note, 10% interest due June 2015, $28,800 and $0 outstanding, net of debt discount of $28,248 and $0, respectively | 552 | 55 | - | - | -18 | ||||||||||||
June 2014 $40,000 Convertible Note, 10% interest, due June 2015, $40,000 and $0 outstanding, net of debt discount of $39,562 and $0, respectively | 438 | 44 | - | - | -19 | ||||||||||||
June 2014 $40,000 Convertible Note, 10% interest, due June 2015, $40,000 and $0 outstanding, net of debt discount of $39,562 and $0, respectively | 438 | 44 | - | - | -20 | ||||||||||||
June 2014 $56,589 Convertible Note, 10% interest, due July 2015, with a $5,611 original issue discount, $56,589 and $0 outstanding, net of debt discount of $56,589 and $0, respectively | - | - | - | - | -21 | ||||||||||||
Total Convertible Notes Payable, Net | $ | 583,429 | $ | 77,607 | $ | 375,259 | $ | 57,443 | |||||||||
(1) The Company borrowed $50,000 January 2014, due January 2015. The holder of the note has the right, after the first one hundred eighty days of the note (July 16, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.07 or 58% of the lowest trade price in the 10 trading days previous to the conversion. The Company recorded a debt discount of $46,249 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $1,797 interest expense was recorded, and total amortization of $18,474 was recorded resulting in a debt discount of $27,775 at June 30, 2014. | |||||||||||||||||
(2) The Company borrowed $50,000 January 2014, due January 2015. The holder of the note has the right, after the first one hundred eighty days of the note (July27, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.09 or 58% of the lowest trade price in the 10 trading days previous to the conversion. The Company recorded a debt discount of $49,636 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $1,677 interest expense was recorded, and total amortization of $18,750 was recorded resulting in a debt discount of $30,886 at June 30, 2014. | |||||||||||||||||
(3) The Company borrowed $55,500 January 2014, due October 2014. The holder of the note has the right, after the first one hundred eighty days of the note (July 21, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.28 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. During that time the amount of any prepayment would equal 111.2% of the outstanding principal balance of the note ($61,716) with no interest on the note. The Company recorded a debt discount of $55,500 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $27,716 resulting in a debt discount of $27,784 at June 30, 2014. | |||||||||||||||||
(4) The Company borrowed $55,500 January 2014, due October 2014. The holder of the note has the right, after the first one hundred eighty days of the note (July 23, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.28 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. During that time the amount of any prepayment would equal 111.2% of the outstanding principal balance of the note ($61,716) with no interest on the note. The Company recorded a debt discount of $50,000 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $24,725 resulting in a debt discount of $25,275 at June 30, 2014. | |||||||||||||||||
(5) The Company borrowed $50,000 January 2014, due January 2015. The holder of the note has the right, after the first one hundred eighty days of the note (July 27, 2014), to convert the note and accrued interest into common stock at a price per share equal to 40% of the lowest trade price in the 15 trading days previous to the conversion. The Company recorded a debt discount of $50,000 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $2,532 interest expense was recorded, and total amortization of $21,096 was recorded resulting in a debt discount of $28,904 at June 30, 2014. | |||||||||||||||||
(6) The Company borrowed $50,000 February 2014, due February 2015. The holder of the note has the right, after the first one hundred eighty days of the note (August 10, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.07 or 58% of the lowest trade price in the 10 trading days previous to the conversion. The Company recorded a debt discount of $37,307 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $1,523 interest expense was recorded, and total amortization of $14,247 was recorded resulting in a debt discount of $23,060 at June 30, 2014. | |||||||||||||||||
(7) The Company borrowed $46,080 February 2014, due February 2015. The holder of the note has the right, after the first one hundred eighty days of the note (August 10, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.08 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. The Company recorded a debt discount of $42,653 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $15,191 resulting in a debt discount of $27,462 at June 30, 2014. | |||||||||||||||||
(8) The Company borrowed $28,800 February 2014, due February 2015, with a one-time interest charge of 10%. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.195 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The note has an original issue discount of $2,800 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $28,800 related to the conversion feature and original issue discount, along with a derivative liability at inception . Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, interest expense of $1,081 was recorded, and total amortization of $9,856 was recorded resulting in a debt discount of $18,944 at June 30, 2014. | |||||||||||||||||
(9) The Company borrowed $51,700 February 2014, due February 2015. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.16 or 55% of the lowest trade price in the 20 trading days previous to the conversion. The note has an original issue discount of $3,300 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $51,700 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $2,499 of interest expense was recorded, and total amortization of $20,822 was recorded resulting in a debt discount of $30,878 at June 30, 2014. | |||||||||||||||||
(10) The Company borrowed $37,500 March 2014, due December 2014, with interest at 8%. The holder of the note has the right, after the first one hundred eighty days of the note (September 16, 2014), to convert the note and accrued interest into common stock at a price per share equal to 61% (representing a discount rate of 39%) of the average of the lowest five trading prices for the Common Stock during the ten trading day period ending one trading day prior to the date of Conversion Notice. The Company has the right to prepay the note and accrued interest during the first one hundred eighty days following the date of the note. During that time the amount of any prepayment during the first sixty days is 130% of the outstanding amounts owed while the amount of the prepayment increases every subsequent thirty days to 135%, 140%, 145%, and 150% of the outstanding amounts owed. The Company recorded a debt discount of $37,500 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the eighteen month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $13,366 resulting in a debt discount of $24,134 at June 30, 2014. Also during the six months ending June 30, 2014, interest expense of $838 was recorded for the note. | |||||||||||||||||
(11) The Company borrowed $50,000 March 2014, due March 2015. The holder of the note has the right, after the first one hundred eighty days of the note (September 18, 2014), to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company recorded a debt discount of $50,000 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, $1,384 of interest expense was recorded, and total amortization was recorded in the amount of $13,836 resulting in a debt discount of $36,164 at June 30, 2014. | |||||||||||||||||
(12) The Company borrowed $165,910 March 2014, due April 2015. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $1.00 or 65% of the average of the three lowest trading prices in the 20 trading days previous to the conversion. The note has an original issue discount of $16,450 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $163,394 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $4,773 of interest expense was recorded, and total amortization of $43,325 was recorded resulting in a debt discount of $120,069 at June 30, 2014. | |||||||||||||||||
(13) The Company borrowed $32,000 April 2014, due April 2015. The holder of the note has the right, after the first one hundred eighty days of the note (October 1, 2014), to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company recorded a debt discount of $27,143 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $6,470 resulting in a debt discount of $20,673 at June 30, 2014. | |||||||||||||||||
(14) The Company borrowed $46,080 April 2014, due April 2015. The holder of the note has the right, after the first one hundred eighty days of the note (October 11, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.08 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. The Company recorded a debt discount of $46,080 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $9,721 resulting in a debt discount of $36,359 at June 30, 2014. | |||||||||||||||||
(15) The Company borrowed $42,500 May 2014, due February 2015, with interest at 8%. The holder of the note has the right, after the first one hundred eighty days of the note (November 16, 2014), to convert the note and accrued interest into common stock at a price per share equal to 61% (representing a discount rate of 39%) of the average of the lowest five trading prices for the Common Stock during the ten trading day period ending one trading day prior to the date of Conversion Notice. The Company has the right to prepay the note and accrued interest during the first one hundred eighty days following the date of the note. During that time the amount of any prepayment during the first sixty days is 130% of the outstanding amounts owed while the amount of the prepayment increases every subsequent thirty days to 135%, 140%, 145%, and 150% of the outstanding amounts owed. The Company recorded a debt discount of $42,500 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the nine month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $6,444 resulting in a debt discount of $36,054 at June 30, 2014. Also during the six months ending June 30, 2014, interest expense of $391 was recorded for the note. | |||||||||||||||||
(16) The Company borrowed $55,000 May 2014, due May 2015. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.16 or 55% of the lowest trade price in the 20 trading days previous to the conversion. The note has an original issue discount of $5,000 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $50,000 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $658 of interest expense was recorded, and total amortization of $5,480 was recorded resulting in a debt discount of $49,520 at June 30, 2014. | |||||||||||||||||
(17) The Company borrowed $37,500 June 2014, due March 2015, with interest at 8%. The holder of the note has the right, after the first one hundred eighty days of the note (December 10, 2014), to convert the note and accrued interest into common stock at a price per share equal to 61% (representing a discount rate of 39%) of the average of the lowest five trading prices for the Common Stock during the ten trading day period ending one trading day prior to the date of Conversion Notice. The Company has the right to prepay the note and accrued interest during the first one hundred eighty days following the date of the note. During that time the amount of any prepayment during the first sixty days is 130% of the outstanding amounts owed while the amount of the prepayment increases every subsequent thirty days to 135%, 140%, 145%, and 150% of the outstanding amounts owed. The Company recorded a debt discount of $37,500 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the eighteen month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $2,097 resulting in a debt discount of $35,403 at June 30, 2014. Also during the six months ending June 30, 2014, interest expense of $140 was recorded for the note. | |||||||||||||||||
(18) The Company borrowed $28,800 June 2014, due June 2015. The holder of the note has the right, after the first one hundred eighty days of the note (December 20, 2014), to convert the note and accrued interest into common stock at a price per share equal to the lesser of $0.08 or 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note during the first ninety days following the date of the note. The Company recorded a debt discount of $28,800 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $552 resulting in a debt discount of $28,248 at June 30, 2014. | |||||||||||||||||
(19) The Company borrowed $40,000 June 2014, due June 2015. The holder of the note has the right, after the first one hundred eighty days of the note (December 23, 2014), to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note and accrued interest during the first one hundred eighty days following the date of the note. During that time the amount of the prepayment is 145% of the outstanding amounts owed. The Company recorded a debt discount of $40,000 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $438 resulting in a debt discount of $39,562 at June 30, 2014. | |||||||||||||||||
(20) The Company borrowed $40,000 June 2014, due June 2015. The holder of the note has the right, after the first one hundred eighty days of the note (December 23, 2014), to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note and accured interest during the first one hundred eighty days following the date of the note. During that time the amount of any repayment is 145% of the outstanding amounts owed. The Company recorded a debt discount of $40,000 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $438 resulting in a debt discount of $39,562 at June 30, 2014. Also during the six months ending June 30, 2014, interest expense of $44 was recorded for the note. | |||||||||||||||||
(21) The Company borrowed $56,589 June 2014, due July 2015. The holder of the note has the right to convert the note and accrued interest into common stock at a price per share equal to the lesser of $1.00 or 65% of the average of the three lowest trading prices in the 20 trading days previous to the conversion. The note has an original issue discount of $5,611 which has been added to the principal balance of the note and is being recognized in interest expense over the life of the note. The Company recorded a debt discount of $56,589 related to the conversion feature and original issue discount. Interest expense for the amortization of the debt discount is calculated on a straight-line basis over the twelve month life of the note. During the six months ended June 30, 2014, $0 of interest expense was recorded, and total amortization of $0 was recorded resulting in a debt discount of $56,589 at June 30, 2014. |
10_COMMON_STOCK_OPTIONS_AND_WA
10. COMMON STOCK OPTIONS AND WARRANTS (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Changes in the Company's stock options and warrants | ' | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Options Outstanding | Average | Average | |||||||||||||||||||
Number | Exercise | Remaining | Aggregate | Exercise | |||||||||||||||||
Of | Price | Contractual | Intrinsic | Price | |||||||||||||||||
Shares | Per Share | Life | Value | Per Share | |||||||||||||||||
Balance at December 31, 2013 | 10,350,000 | $ | 0.08-0.28 | 3.78 years | $ | - | $ | 0.14 | |||||||||||||
Options granted | - | $ | - | - | $ | - | |||||||||||||||
Options exercised | - | $ | - | - | $ | - | |||||||||||||||
Options expired | (1,465,000 | ) | $ | 0.08-0.15 | - | $ | 0.02 | ||||||||||||||
Balance at June 30, 2014 | 8,885,000 | $ | 0.09-0.28 | 3.88 years | $ | - | $ | 0.14 | |||||||||||||
Exercisable at December 31, 2013 | 8,975,000 | $ | 0.08-0.28 | 2.96 years | $ | - | $ | 0.13 | |||||||||||||
Exercisable at June 30, 2014 | 7,966,250 | $ | 0.09-0.28 | 3.88 years | $ | - | $ | 0.14 | |||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Warrants Outstanding | Average | Average | |||||||||||||||||||
Number | Exercise | Remaining | Aggregate | Exercise | |||||||||||||||||
Of | Price | Contractual | Intrinsic | Price | |||||||||||||||||
Shares | Per Share | Life | Value | Per Share | |||||||||||||||||
Balance at December 31, 2013 | 40,103,548 | $ | 0.06-0.25 | 3.19 years | $ | 50,796 | $ | 0.11 | |||||||||||||
Warrants granted | 17,895,652 | $ | 0.05 | 2.98 years | $ | 0.05 | |||||||||||||||
Warrants exercised | (100,000 | ) | $ | 0.06 | - | $ | 0.06 | ||||||||||||||
Warrants expired | (500,000 | ) | $ | 0.06 | - | $ | 0.06 | ||||||||||||||
Balance at June 30, 2014 | 57,399,200 | $ | 0.05-0.25 | 2.91 years | $ | 4,999,989 | $ | 0.07 | |||||||||||||
Exercisable at December 31, 2013 | 40,103,548 | $ | 0.06-0.25 | 3.19 years | $ | 50,796 | $ | 0.11 | |||||||||||||
Exercisable at June 30, 2014 | 57,399,200 | $ | 0.05-0.25 | 2.91 years | $ | 4,999,989 | $ | 0.07 | |||||||||||||
1_BASIS_OF_PRESENTATION_Detail
1. BASIS OF PRESENTATION (Details) (USD $) | Jun. 30, 2014 |
Assets | ' |
Total Assets Measured at Fair Value | ' |
Liabilities | ' |
Derivative Liability | 2,132,187 |
Total Liabilities Measured at Fair Value | 2,132,187 |
Level 1 | ' |
Assets | ' |
Total Assets Measured at Fair Value | ' |
Liabilities | ' |
Derivative Liability | ' |
Total Liabilities Measured at Fair Value | ' |
Level 2 | ' |
Assets | ' |
Total Assets Measured at Fair Value | ' |
Liabilities | ' |
Derivative Liability | ' |
Total Liabilities Measured at Fair Value | ' |
Level 3 | ' |
Assets | ' |
Total Assets Measured at Fair Value | ' |
Liabilities | ' |
Derivative Liability | 2,132,187 |
Total Liabilities Measured at Fair Value | $2,132,187 |
2_GOING_CONCERN_Details_Narrat
2. GOING CONCERN (Details Narrative) (USD $) | Jun. 30, 2014 |
Going Concern Details Narrative | ' |
Cash on hand | $125,242 |
3_FIXED_ASSETS_Details
3. FIXED ASSETS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Total Fixed assets | $2,614,153 | $2,614,153 |
Less accumulated depreciation | -2,602,320 | -2,599,240 |
Net Fixed assets | 11,833 | 14,913 |
Production equipment [Member] | ' | ' |
Total Fixed assets | 2,131,377 | 2,131,377 |
Less accumulated depreciation | -2,121,646 | -2,119,830 |
Building [Member] | ' | ' |
Total Fixed assets | 446,772 | 446,772 |
Less accumulated depreciation | -446,772 | -446,772 |
Leasehold Improvements [Member] | ' | ' |
Total Fixed assets | 3,235 | 3,235 |
Less accumulated depreciation | -3,235 | -3,235 |
Office Equipment [Member] | ' | ' |
Total Fixed assets | 32,769 | 32,769 |
Less accumulated depreciation | ($30,667) | ($29,403) |
3_FIXED_ASSETS_Details_1
3. FIXED ASSETS (Details 1) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Property Plant And Equipment | ' | ' |
Accumulated depreciation | $2,602,320 | $2,599,240 |
Production equipment [Member] | ' | ' |
Property Plant And Equipment | ' | ' |
Accumulated depreciation | 2,121,646 | 2,119,830 |
Building [Member] | ' | ' |
Property Plant And Equipment | ' | ' |
Accumulated depreciation | 446,772 | 446,772 |
Leasehold Improvements [Member] | ' | ' |
Property Plant And Equipment | ' | ' |
Accumulated depreciation | 3,235 | 3,235 |
Office Equipment [Member] | ' | ' |
Property Plant And Equipment | ' | ' |
Accumulated depreciation | $30,667 | $29,403 |
4_INTANGIBLE_ASSETS_Details
4. INTANGIBLE ASSETS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
INTANGIBLE ASSETS | ' | ' |
License Fee | $112,500 | $112,500 |
Less accumulated amortization | -108,245 | -105,329 |
License Fee, Net | 4,255 | 7,171 |
Patents and intellectual property | 35,482 | 35,482 |
Intangible assets net of accumulated amortization | $39,737 | $42,653 |
5_RELATED_PARTY_TRANSACTIONS_D
5. RELATED PARTY TRANSACTIONS (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Office and warehouse lease effective August 1, 2007 | ' | ' |
Monthly rental payments | $71,426 | $71,426 |
Rental expense in the form of stock issuance | ' | ' |
Corporate office | 9,000 | 9,000 |
Total Rental Expense | $80,426 | $88,886 |
6_PREPAID_EXPENSES_PAID_WITH_S2
6. PREPAID EXPENSES PAID WITH STOCK (Details) (USD $) | Jun. 30, 2014 |
Prepaid Expenses Paid With Stock Tables | ' |
For the twelve month period ending December 31, 2014 | $41,979 |
Thereafter | ' |
Total | $41,979 |
9_COMMON_STOCK_OPTIONS_AND_WAR1
9. COMMON STOCK OPTIONS AND WARRANTS (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Stock Options | ' | ' |
Number of Options | ' | ' |
Number of Options Outstanding | 10,350,000 | ' |
Number of Options Granted | ' | ' |
Number of Options Exercised | ' | ' |
Number of Options Expired | -1,465,000 | ' |
Number of Options Outstanding | 8,885,000 | 10,350,000 |
Exercisable | 7,966,250 | 8,975,000 |
Weighted Average Exercise Price | ' | ' |
Weighted Average Exercise Price Outstanding, Beginning | $0.14 | ' |
Weighted Average Exercise Price Granted | ' | ' |
Weighted Average Exercise Price Exercised | ' | ' |
Weighted Average Exercise Price Expired | $0.02 | ' |
Weighted Average Exercise Price Outstanding, Ending | $0.14 | $0.14 |
Weighted Average Exercise Price Exercisable | $0.14 | $0.13 |
Weighted Average Remaining Contractual Life (in years) | ' | ' |
Weighted Average Remaining Contractual Life (in years) Outstanding | '3 years 10 months 17 days | '3 years 9 months 11 days |
Weighted Average Remaining Contractual Life (in years) Exercisable | '3 years 10 months 17 days | '2 years 11 months 16 days |
Aggregate Intrinsic Value | ' | ' |
Aggregate Intrinsic Value Outstanding | ' | ' |
Aggregate Intrinsic Value vested and expected to vest | ' | ' |
Aggregate Intrinsic Value Exercisable | ' | ' |
Exercise Price Per Share | ' | ' |
Exercise Price, Minimum | $0.09 | $0.08 |
Exercise Price, Maximum | $0.28 | $0.28 |
Excercise Price, Granted | ' | ' |
Excercise Price, Exercised | ' | ' |
Excercise Price, Exercisable, Minimum | $0.09 | $0.08 |
Excercise Price, Exercisable, Maximum | $0.28 | $0.28 |
Excercise Price, Options expired, Minimum | $0.08 | ' |
Excercise Price, Options expired, Maximum | $0.15 | ' |
Excercise Price, Warrants Granted | $0.05 | ' |
Excercise Price, Warrants Exercised | $0.06 | ' |
Excercise Price, Warrants Expired | $0.06 | ' |
Warrants | ' | ' |
Number of Options | ' | ' |
Number of Options Outstanding | 40,103,548 | ' |
Number of Options Granted | 17,895,652 | ' |
Number of Options Exercised | -100,000 | ' |
Number of Options Expired | -500,000 | ' |
Number of Options Outstanding | 57,399,200 | 40,103,548 |
Exercisable | 57,399,200 | 40,103,548 |
Weighted Average Exercise Price | ' | ' |
Weighted Average Exercise Price Outstanding, Beginning | $0.11 | ' |
Weighted Average Exercise Price Granted | $0.05 | ' |
Weighted Average Exercise Price Exercised | $0.06 | ' |
Weighted Average Exercise Price Expired | $0.06 | ' |
Weighted Average Exercise Price Outstanding, Ending | $0.07 | $0.11 |
Weighted Average Exercise Price Exercisable | $0.07 | $0.11 |
Weighted Average Remaining Contractual Life (in years) | ' | ' |
Weighted Average Remaining Contractual Life (in years) Outstanding | '2 years 10 months 28 days | '3 years 2 months 9 days |
Weighted Average Remaining Contractual Life (in years) Granted | '2 years 11 months 23 days | ' |
Weighted Average Remaining Contractual Life (in years) Exercisable | '2 years 10 months 28 days | '3 years 2 months 9 days |
Aggregate Intrinsic Value | ' | ' |
Aggregate Intrinsic Value Outstanding | 4,999,989 | 50,796 |
Aggregate Intrinsic Value Exercisable | $4,999,989 | $50,796 |
Exercise Price Per Share | ' | ' |
Exercise Price, Minimum | $0.05 | $0.06 |
Exercise Price, Maximum | $0.25 | $0.25 |
Excercise Price, Exercisable, Minimum | $0.05 | $0.06 |
Excercise Price, Exercisable, Maximum | $0.25 | $0.25 |