Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 11, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | POWERVERDE, INC. | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 933,972 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 31,750,106 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 7,809 | $ 4,736 |
Accounts receivable | 32,709 | 189,220 |
Employee advances | 292 | 12,292 |
Prepaid expenses | 4,328 | $ 14,238 |
Note receivable, related party | 38,000 | |
Total Current Assets | 83,138 | $ 220,486 |
Property and Equipment | ||
Property and equipment, net of accumulated depreciation of $63,025 and $55,258, respectively | 44,616 | 52,383 |
Other Assets | ||
Intellectual Property, net of accumulated amortization of $659,440 and $604,487 | 36,552 | 54,953 |
Total Assets | 164,306 | 327,822 |
Current Liabilities | ||
Accounts payable and accrued expenses | 28,332 | 100,006 |
Note payable | 18,242 | |
Payable to related parties | 6,000 | 41,900 |
Total Current Liabilities | 52,574 | $ 141,906 |
Long-Term Liabilities | ||
Note payable | 40,194 | |
Notes payable to related parties | 380,622 | $ 374,235 |
Payable to related party | 20,000 | |
Total Long-Term Liabilities | 440,816 | $ 374,235 |
Total Liabilities | $ 493,390 | $ 516,141 |
Stockholders' Deficiency | ||
Preferred Stock: 50,000,000 preferred shares authorized, 0 preferred shares issued at June 30, 2015 and December 31, 2014 | ||
Common stock: 200,000,000 common shares authorized, par value $0.0001 per share, 31,750,106 common shares issued and outstanding at June 30, 2015 and December 31, 2014 | $ 3,981 | $ 3,981 |
Additional paid-in capital | 11,531,516 | 11,531,516 |
Treasury stock, 8,550,000 shares at cost | (491,139) | (491,139) |
Accumulated deficit | (11,373,442) | (11,232,677) |
Total Stockholders' Deficiency | (329,084) | (188,319) |
Total Liabilities and Stockholders' Deficiency | $ 164,306 | $ 327,822 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Property and equipment, net of accumulated depreciation | $ 63,025 | $ 55,258 |
Intellectual Property, net of accumulated amortization | $ 659,440 | $ 604,487 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common Stock, no par value | $ 0.0001 | $ 0.0001 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 31,750,106 | 31,750,106 |
Common Stock, shares outstanding | 31,750,106 | 31,750,106 |
Treasury stock | 8,550,000 | 8,550,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues [Abstract] | ||||
Royalty revenue | $ 32,709 | $ 125,975 | $ 187,596 | $ 166,129 |
Operating Expenses | ||||
Research and development | 56,324 | 111,115 | 140,980 | 262,596 |
General and administrative | 49,886 | 101,887 | 159,670 | 255,322 |
Total Operating Expenses | 106,210 | 213,002 | 300,650 | 517,918 |
Loss from Operations | (73,501) | (87,027) | (113,054) | (351,789) |
Other Income (Expenses) | ||||
Interest expense | (13,932) | (42,368) | (27,711) | (63,556) |
Total Other Income (Expense) | (13,932) | (42,368) | (27,711) | (63,556) |
Loss before Income Taxes | $ (87,433) | $ (129,395) | $ (140,765) | $ (415,345) |
Provision for Income Taxes | ||||
Net Loss | $ (87,433) | $ (129,395) | $ (140,765) | $ (415,345) |
Net Loss per Share - Basic and Diluted | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted Average Common Shares Outstanding - Basic and Diluted | 31,750,106 | 30,197,908 | 31,750,106 | 29,778,007 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net loss | $ (140,765) | $ (415,345) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 62,720 | 117,683 |
Amortization of discount | 6,387 | 42,579 |
Changes in operating assets and liabilities: | ||
Accounts receivable and prepaid expenses | 166,421 | $ (69,490) |
Employee advances | 12,000 | |
Accounts payable and accrued expenses | (71,674) | $ 82,761 |
Payable to related parties | (15,900) | (92,000) |
Cash Provided by (Used in) Operating Activities | $ 19,189 | (333,812) |
Cash Flows From Investing Activities | ||
Purchase of property and equipment | $ (13,591) | |
Purchase of intellectual property | $ (16,116) | |
Cash Used in Investing Activities | $ (16,116) | $ (13,591) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of common stock | 315,000 | |
Payment of stock issuance costs | (7,500) | |
Cash Provided by Financing Activities | 307,500 | |
Net Increase (Decrease) in Cash and Cash Equivalents | $ 3,073 | (39,903) |
Cash and Cash Equivalents at Beginning of Period | 4,736 | 48,306 |
Cash and Cash Equivalents at End of Period | 7,809 | $ 8,403 |
Supplemental Disclosure of Non-Cash Activities | ||
Note Receivable in connection with IP acquisition | 38,000 | |
Note Payable in connection with IP acquisition | $ 58,436 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | Note 1 Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements prepared in accordance with instructions for Form 10-Q, include all adjustments (consisting only of normal recurring accruals) which are necessary for a fair presentation of the results for the periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the Annual Report of PowerVerde, Inc. (PowerVerde, we, us, our, or the Company) as of and for the year ended December 31, 2014. The results of operations for the three and six months ended June 30, 2015, are not necessarily indicative of the results to be expected for the full year or for future periods. The condensed consolidated financial statements include the accounts of PowerVerde, Inc., formerly known as Vyrex Corporation (the "Company"), and PowerVerde Systems, Inc., formerly known as PowerVerde, Inc., its wholly-owned subsidiary. Intercompany balances and transactions have been eliminated in consolidation. |
Going Concern
Going Concern | 6 Months Ended |
Jun. 30, 2015 | |
Going Concern: | |
Going Concern | Note 2 Going Concern The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has had recurring operating losses and negative cash flows from operations. Those factors, as well as uncertainty in securing additional funds for continued operations, create an uncertainty about the Companys ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 3 Summary of Significant Accounting Policies Nature of Business The Company is devoting substantially all of its present efforts to establish a new business involving the development and commercialization of clean energy electric power generation systems, and none of its planned principal operations have commenced. However, royalties from licenses unrelated to planned principal operations continue to be recognized as revenue. Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable Accounts receivable consist of balances due from royalties in connection with the license agreement with VDF FutureCeuticals, Inc. The Company monitors accounts receivable and provides allowances when considered necessary. At June 30, 2015, accounts receivable were considered to be fully collectible. Accordingly, no allowance for doubtful accounts was provided. Employee Advances The employee advances represent the payroll taxes due on the issuance of common stock as compensation prior to 2014. Revenue Recognition Royalty revenue from royalty agreements is recognized in accordance with the terms of the specific agreement. Revenues recognized under these agreements amount to 100% of total revenues for the three and six months ended June 30, 2015 and 2014. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Expenditures for major betterments and additions are capitalized, while replacement, maintenance and repairs, which do not extend the lives of the respective assets, are expensed as incurred. Impairment of Long-Lived Assets Impairment losses are recorded on long-lived assets (property, equipment and intellectual property) used in operations when impairment indicators are present and the undiscounted expected cash flows estimated to be generated by those assets are less than the carrying value of such assets. No impairment losses have been recognized during the six months ended June 30, 2015 or 2014. Stock-based Compensation The Company has accounted for stock-based compensation under the provisions of ASC Topic 718 Stock Compensation Common Stock Purchase Warrants The Company accounts for common stock purchase warrants in accordance with ASC Topic 815- 40, Derivatives and Hedging Contracts in Entitys Own Equity (ASC 815-40). Based on the provisions of ASC 815- 40, the Company classifies as equity any contracts that (i) require physical settlement or net-share settlement, or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), or (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). All outstanding warrants as of December 31, 2014 and June 30, 2015 were classified as equity. Accounting for Uncertainty in Income Taxes The Company follows the provisions of ASC Topic 740-10, Accounting for Uncertainty in Income Taxes which clarifies the accounting for uncertainty in income taxes recognized in an enterprises financial statements, and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This topic also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Research and Development Costs The Companys research and development costs are expensed in the period in which they are incurred. Earnings (Loss) Per Share Earnings (loss) per share is computed in accordance with FASB ASC Topic 260, Earnings per Share. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. Certain common stock equivalents were not included in the earnings (loss) per share calculation as their effect would be anti-dilutive. Warrants exercisable for 4,751,000 shares and options for 2,750,000 shares were excluded from weighted average common shares outstanding on a diluted basis. Financial instruments The Company carries cash and cash equivalents, accounts receivable, accounts payable and accrued expenses at historical costs. The respective estimated fair values of these assets and liabilities approximate carrying values due to their current nature. The Company also carries notes payable to related parties at historical cost less discounts from warrants issued as loan financing costs. The fair value of such notes is significantly similar to the face value of the notes ($400,000). Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Recent Accounting Prouncements | |
Recent Accounting Pronouncements | Note 4 Recent Accounting Pronouncements Refer to the consolidated financial statements and footnotes thereto included in the PowerVerde, Inc. Annual Report on Form 10-K for the year ended December 31, 2014 for recent accounting pronouncements. Other pronouncements have been issued but the Company does not believe that their adoption will have a significant impact on the financial position or results of operations. On June 10, 2014, the FASB issued Accounting Standards Update No. 2014-10 (ASU 2014-10), which eliminates development stage reporting requirements under ASC 915, as well as amends provisions of existing variable interest entity guidance under ASC 810. Additionally, the ASU indicates that the lack of commencement of principal operations represents a risk and uncertainty and, accordingly, is subject to the disclosure requirements of ASC 275. We have adopted ASU 2014-10 on our condensed consolidated financial statements effective January 1, 2015. As a result of the changes, existing development stage entity presentation and disclosure requirements are eliminated. |
Intellectual Property
Intellectual Property | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Intellectual Property | Note 5 Intellectual Property Intellectual Property partially consists of technology acquired from the purchase of 100% of the membership interests of Cornerstone Conservation Group LLC (Cornerstone) in March 30, 2012 for $659,440. Accumulated amortization with respect to this intellectual property was $659,440 at June 30, 2015. On June 30, 2015, the Company entered into an Assignment Agreement with VyrexIP Holdings Inc., a company owned by Company shareholder Edward Gomez for the purchase of intellectual property. The net price of these assets was comprised of a down payment of $16,116 and a $58,436 promissory note to the seller due July 15, 2016, partially offset by assignment by the seller to the Company of a $38,000 promissory note due November 14, 2015, issued by the sellers licensee Epalex Corporation, a company of which Mr. Gomez is chairman and a major stockholder. For each of the six months ended June 30, 2015 and 2014, amortization expense was $54,953 and $109,907 and accumulated amortization of the intangible asset- intellectual property was $659,440 at June 30, 2015. Future amortization of the intangible asset intellectual property was as follows as of June 30, 2015: Year ending December 31: 2015 $ 6,092 2016 12,184 2017 12,184 2018 6,092 Total $ 36,552 Note Payable at June 30, 2015 consists of $58,436 promissory note to VyrexIP Holdings Inc. for the purchase of intellectual property. The Company has agreed to pay principal plus accrued interest over 10 monthly payments of $6,080.64, each due on the 15 th th The installments due by December 15, 2015 are included in the Current Liabilities portion of the Note Payable on the condensed consolidated financial statements. The remaining installments due by July 15, 2016 are included in the Long-Term Liabilities portion of the Note Payable on the condensed consolidated financial statements. |
Stockholders' Deficiency
Stockholders' Deficiency | 6 Months Ended |
Jun. 30, 2015 | |
Equity: | |
Stockholders' Deficiency | Note 6 Stockholders Deficiency Warrants Expenses related to warrants issued in conjunction with settlement of certain disputes are included in the condensed consolidated statement of operations. A summary of warrants issued, exercised and expired during the six months ended June 30, 2015 is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value Balance at December 31, 2014 5,586,000 $ .99 $ 45,000 Issued - - - Expired (835,000) (1.80) - Balance at June 30, 2015 4,751,000 $ .84 $ 45,000 |
Stock Options
Stock Options | 6 Months Ended |
Jun. 30, 2015 | |
Stock Options | |
Stock Options | Note 7 Stock Options Stock option activity for the six months ended June 30, 2015, is summarized as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Options outstanding at December 31, 2014 2,750,000 $ 0.78 9.00 Granted - - - Expired/forfeited - - - Options outstanding at June 30, 2015 2,750,000 $ 0.78 9.00 Total stock option compensation for the six months ended June 30, 2015 and 2014 was $0. There is no unrecognized compensation expense associated with the options. |
Notes Payable to Related Partie
Notes Payable to Related Parties | 6 Months Ended |
Jun. 30, 2015 | |
Notes Payable to Related Parties | |
Notes Payable to Related Parties | Note 8 - Notes Payable to Related Parties Notes payable to related parties at June 30, 2015 consist of notes payable to stockholders of $400,000 (issued in 2012), less unamortized discount of $19,388 related to common stock warrants that had been issued to the stockholders with the notes. The discount is being amortized over the extended term of the notes, which are due in one principal payment on December 31, 2016. Interest is payable semiannually at 10%. The note is collaterized by all receivables now or hereafter existing pursuant to the license agreement with VDF FutureCeuticals, Inc. discussed in Notes 3 and 9. Payable to related party at June 30, 2015 consists primarily of a $20,000 unsecured note payable to Company shareholder Edward Gomez bearing interest at 10%. On June 11, 2015, the lender extended the maturity date on the balance of the note to July 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitment and Contingencies: | |
Commitments and Contingencies | Note 9 - Commitments and Contingencies On June 25, 2015, Company consultant Hank Leibowitz assigned to the Company a patent he obtained for a system and method for using high temperature sources in Rankine cycle power systems. The Company has agreed to pay Mr. Leibowitz a 2% royalty for any and all revenues of products and/or project sales by the Company based on the subject patent. On November 2, 2012, Keith Johnson, the Companys former Chief Technical Officer, filed suit against the Companys operating subsidiary PowerVerde Systems, Inc., in Maricopa County, Arizona, Superior Court. The suit included claims for breach of his employment agreement, for back pay and related claims. Mr. Johnson, whose salary was $12,500 per month, sought back pay of $37,500, reimbursement of expenses totaling approximately $5,012 and other unspecified damages. The Company believes that Mr. Johnson voluntarily terminated his employment in accordance with the agreement and that he has been paid in full. In an abundance of caution, the Company also gave Mr. Johnson 30 days notice of termination without cause pursuant to the employment agreement, with this notice to be effective only if the Court determines that his employment was not previously terminated by him. Mr. Johnson ceased working for the Company in early September 2012. Based on the foregoing, the Company believed that it had substantial defenses to Mr. Johnsons claims, which were denied in the Companys answer. In May 2014, the case was settled pursuant to the Companys agreement to pay Mr. Johnson $30,088, with $5,088 due upon execution of the settlement agreement plus an additional $25,000 payable in installments of $12,500 each in July and August 2014. The installments due in July and August are included in the Payable to Related Parties on the condensed consolidated financial statements at December 31, 2014. As of the date of this filing, all of the settlement payments have been made, and this case is concluded. The Companys license agreement with VDF FutureCeuticals, Inc., which has generated all of the Companys revenues since 2012, will terminate in March 2018, when the underlying patents expire. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions | |
Related Party Transactions | Note 10 - Related Party Transactions See Note 8 for discussion of transactions with stockholders. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies | |
Nature of Business | Nature of Business The Company is devoting substantially all of its present efforts to establish a new business involving the development and commercialization of clean energy electric power generation systems, and none of its planned principal operations have commenced. However, royalties from licenses unrelated to planned principal operations continue to be recognized as revenue. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts Receivables | Accounts Receivable Accounts receivable consist of balances due from royalties in connection with the license agreement with VDF FutureCeuticals, Inc. The Company monitors accounts receivable and provides allowances when considered necessary. At June 30, 2015, accounts receivable were considered to be fully collectible. Accordingly, no allowance for doubtful accounts was provided. |
Employee Advances | Employee Advances The employee advances represent the payroll taxes due on the issuance of common stock as compensation prior to 2014. |
Revenue Recognition | Revenue Recognition Royalty revenue from royalty agreements is recognized in accordance with the terms of the specific agreement. Revenues recognized under these agreements amount to 100% of total revenues for the three and six months ended June 30, 2015 and 2014. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Expenditures for major betterments and additions are capitalized, while replacement, maintenance and repairs, which do not extend the lives of the respective assets, are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Impairment losses are recorded on long-lived assets (property, equipment and intellectual property) used in operations when impairment indicators are present and the undiscounted expected cash flows estimated to be generated by those assets are less than the carrying value of such assets. No impairment losses have been recognized during the six months ended June 30, 2015 or 2014. |
Stock-based Compensation | Stock-based Compensation The Company has accounted for stock-based compensation under the provisions of ASC Topic 718 Stock Compensation |
Common Stock Purchase Warrants | Common Stock Purchase Warrants The Company accounts for common stock purchase warrants in accordance with ASC Topic 815- 40, Derivatives and Hedging Contracts in Entitys Own Equity (ASC 815-40). Based on the provisions of ASC 815- 40, the Company classifies as equity any contracts that (i) require physical settlement or net-share settlement, or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), or (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). All outstanding warrants as of December 31, 2014 and June 30, 2015 were classified as equity. |
Accounting for Uncertainty in Income Taxes | Accounting for Uncertainty in Income Taxes The Company follows the provisions of ASC Topic 740-10, Accounting for Uncertainty in Income Taxes which clarifies the accounting for uncertainty in income taxes recognized in an enterprises financial statements, and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This topic also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. |
Research and Development Costs | Research and Development Costs The Companys research and development costs are expensed in the period in which they are incurred. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share is computed in accordance with FASB ASC Topic 260, Earnings per Share. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. Certain common stock equivalents were not included in the earnings (loss) per share calculation as their effect would be anti-dilutive. Warrants exercisable for 4,751,000 shares and options for 2,750,000 shares were excluded from weighted average common shares outstanding on a diluted basis. |
Financial instruments | Financial instruments The Company carries cash and cash equivalents, accounts receivable, accounts payable and accrued expenses at historical costs. The respective estimated fair values of these assets and liabilities approximate carrying values due to their current nature. The Company also carries notes payable to related parties at historical cost less discounts from warrants issued as loan financing costs. The fair value of such notes is significantly similar to the face value of the notes ($400,000). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Intellectual Property (Tables)
Intellectual Property (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Intellectual Property Tables | |
Future amortization of the intangible asset | Future amortization of the intangible asset intellectual property was as follows as of June 30, 2015: Year ending December 31: 2015 $ 6,092 2016 12,184 2017 12,184 2018 6,092 Total $ 36,552 |
Stockholders' Deficiency (Table
Stockholders' Deficiency (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders Deficiency Tables | |
Summary of warrants | A summary of warrants issued, exercised and expired during the six months ended June 30, 2015 is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value Balance at December 31, 2014 5,586,000 $ .99 $ 45,000 Issued - - - Expired (835,000) (1.80) - Balance at June 30, 2015 4,751,000 $ .84 $ 45,000 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stock option activity: | |
Stock Option | Stock option activity for the six months ended June 30, 2015, is summarized as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Options outstanding at December 31, 2014 2,750,000 $ 0.78 9.00 Granted - - - Expired/forfeited - - - Options outstanding at June 30, 2015 2,750,000 $ 0.78 9.00 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded and Imapirment charges | ||||
Number of warrants excluded from weighted average common shares outstanding on a diluted basis. | 4,751,000 | |||
Number of options excluded from weighted average common shares outstanding on a diluted basis. | 2,750,000 | |||
Revenue percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Intellectual Property (Details)
Intellectual Property (Details) | Jun. 30, 2015USD ($) |
Year ending December 31: | |
2,015 | $ 6,092 |
2,016 | 12,184 |
2,017 | 12,184 |
2,018 | 6,092 |
Total | $ 36,552 |
Intellectual Property (Details
Intellectual Property (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Nov. 14, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 30, 2012 | |
Amortization expense | $ 54,953 | $ 54,953 | $ 109,907 | ||||
Accumulated amortization of the intangible asset- intellectual property | 659,440 | $ 604,487 | $ 384,673 | ||||
Promissory note down payment | 16,116 | ||||||
Promissory note due | $ 58,436 | $ 38,000 | |||||
Promissory note due date | Jul. 15, 2016 | ||||||
Note Payable in connection with IP acquisition | $ 58,436 | ||||||
Principal plus accrued interest payments due | $ 608,064 | ||||||
Cornerstone | |||||||
Percentage of membership interests purchased | 100.00% | ||||||
Accumulated amortization of the intangible asset- intellectual property | $ 659,440 |
Stockholders' Deficiency-warran
Stockholders' Deficiency-warrants issued, exercised and expired (Details) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Summary of warrants issued, exercised and expired during the year | |
Balance at December 31, 2014 | 5,586,000 |
Shares Issued | |
Shares Expired | (835,000) |
Balance at March 31, 2015 | 4,751,000 |
Weighted Average Exercise Price Balance at December 31, 2014 | $ 0.99 |
Weighted Average Exercise Price Issued | |
Weighted Average Exercise Price Expired | $ (1.80) |
Weighted Average Exercise Price Balance at March 31, 2015 | 0.84 |
Aggregate Intrinsic Value Balance at December 31, 2014 | $ 45,000 |
Aggregate Intrinsic Value Issued | |
Aggregate Intrinsic Value Expired | |
Aggregate Intrinsic Value Balance at March 31, 2015 | $ 45,000 |
Stock Options (Detail) - Stock
Stock Options (Detail) - Stock Option Activity, Current Period - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Shares | ||
Balance at December 31, 2014 | 5,586,000 | |
Granted | ||
Expired/forfeited | 835,000 | |
Balance at March 31, 2015 | 4,751,000 | 5,586,000 |
Options | ||
Shares | ||
Balance at December 31, 2014 | 2,750,000 | |
Granted | 0 | |
Expired/forfeited | 0 | |
Balance at March 31, 2015 | 2,750,000 | 2,750,000 |
Weighted Average Exercise Price | ||
Balance at December 31, 2014 | $ 0.78 | |
Granted | 0 | |
Expired/forfeited | 0 | |
Balance at March 31, 2015 | $ 0.78 | $ 0.78 |
Weighted Average Remaining Contractual Life (Years) | ||
Options outstanding | 9 years | 9 years |
Stock Options (Details Narrativ
Stock Options (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2014 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based Compensation | $ 0 | $ 0 |
Unrecognized stock-based compensation | $ 0 |
Notes Payable to Related Part26
Notes Payable to Related Parties (Details) - Jun. 30, 2015 - USD ($) | Total |
Notes payable to stockholders | $ 400,000 |
Unamortized discount | $ 19,388 |
Maturity date | Dec. 31, 2016 |
Interest rate | 10.00% |
Edward Gomez [Member] | |
Interest rate | 10.00% |
Unsecured note payable | $ 20,000 |
Extending maturity date | July 31, 2016 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | ||
May. 31, 2014 | Nov. 30, 2012 | Jun. 25, 2015 | |
Royalty percentage | 2.00% | ||
Chief Technical Officer [Member] | |||
Officers salary | $ 12,500 | ||
Sought back pay to officers | 37,500 | ||
Expenses reimbursement | $ 5,012 | ||
Settlement, Amount | $ 30,088 | ||
Due amount on settlement | 5,088 | ||
Additional amount payble on settlement | 25,000 | ||
Monthly Installment | $ 12,500 |