Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

14.   Stockholders’ Equity

Private Placements – In March 2012, the Company issued 1,463,572 shares of its Common Stock at $0.35 per share through a private placement (the “March Private Placement”). The Company incurred $28,642 in closing costs from the March Private Placement, and also issued warrants valued at $14,675 to Ladenburg Thalmann & Co. Inc. (“Ladenburg”), the placement agent for the March Private Placement (see Note 15).

As part of the March Private Placement, in May 2012, the Company issued an additional 702,872 shares of its Common Stock at $0.35. The Company incurred $7,430 in closing costs from this issuance, and also issued warrants valued at $4,455 to Ladenburg (see Note 15).

During 2012, as part of the March Private Placement, the Company received proceeds of $74,250 for 212,143 shares of Common Stock.

The maximum amount that could be raised through the March Private Placement is $1,000,000. As of December 31, 2012, the Company raised $832,505 through the March Private Placement.

Issuance of common stock – For the year ended December 31, 2011, the Company issued 4,844,444 shares of Common Stock for a total amount of $1,200,000.

Issuance of common stock for services – On May 10, 2011, the Company issued 100,926 shares of Common Stock for services provided by a contractor. These shares were deemed to have a fair market value of $25,100. In connection with the Merger on November 4, 2011, Ladenburg Thalmann & Co Inc. (“Ladenburg”), received 408,750 shares of Common Stock for services related to the Merger. These shares were deemed to have a fair market value of $81,750.

Forgiveness of debt – In April 2012, two stockholders of the Company forgave $73,888 of accrued compensation costs to the Company. The substance of the forgiveness was to provide the Company with additional capital. Accordingly, forgiveness of the accrued compensation costs is reported as a $73,888 increase in paid-in capital. Also, in November 2011, a short-term note receivable in the amount of $10,000 was settled for 50,000 shares of Common Stock.

Settlement of related party accounts payable – In April 2012, the Company issued 40,000 shares of Common Stock for settlement of a related party accounts payable, as described in Note 18.