13. Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2013

Shareholders Equity Tables

Common stock outstanding

	Number of
	Shares
Outstanding shares as of March 31, 2013		90,473,475
Exchange of Series E Preferred for common stock		157,499,999
Exchange of Series E Preferred warrants for common stock		102,326,388
Exchange of certain debts for common stock		34,999,984
Sales of common stock		13,916,665
Conversion of Series D Preferred into common stock		649,215
Other		367,191
Outstanding shares as of June 30, 2013		400,232,917

Stock Options- Assumptions

The Black Scholes expense for these March 27, 2013 options was calculated using the following assumptions:

Estimated fair value of underlying common stock	$0.03
Remaining life	5.0
Risk-free interest rate	0.35%
Expected volatility	141%
Dividend yield	–

The Black Scholes expense for these 2012 options was calculated using the following assumptions:

Estimated fair value of underlying common stock	$0.35 - $0.38
Remaining life	5.0
Risk-free interest rate	0.69% - 0.80%
Expected volatility	80% - 89%
Dividend yield	–

Stock Options - Activity

	Options Outstanding							Options Exercisable
					Weighted						Weighted
					Average		Weighted				Average		Weighted
				Range of	Remaining		Average				Remaining		Average
	Options			Exercise	Life in		Exercise	Options			Life in		Exercise
	Outstanding			Prices	Years		Price	Exercisable			Years		Price
As of December 31, 2011		12,169,852		$0.14 - $1.50		3.2	$0.49		8,757,684			3.2	$0.40
Cancelled		(7,276,329	)	-		–	-		(4,660,994	)		–	-
Exercised		–		-		–	-		–			–	-
Granted		3,050,000		$0.35 - $0.38		4.5	$0.36		1,634,333			4.5	$0.36
As of December 31, 2012		7,943,523		$0.35 -$0.54		3.3	$0.46		5,731,023			2.9	$0.48
Cancelled		–		-		–	-		–			–	-
Exercised		–		-		–	-		–			–	-
Granted		31,000,000		0.03		4.7	0.03		31,000,000			4.7	0.03
As of June 30, 2013		38,943,523		$0.03 -$0.54		4.4	$0.12		36,731,023			4.4	$0.11

Warrants -Assumptions

The Black Scholes expense for these March 27, 2013 warrants was calculated using the following assumptions:

Estimated fair value of underlying common stock	$0.03
Remaining life	5.0
Risk-free interest rate	0.35%
Expected volatility	141%
Dividend yield	–

The Black Scholes expense for these 2012 warrants was calculated using the following assumptions: 

Estimated fair value of underlying common stock	$0.38 - $0.75
Remaining life	5.0
Risk-free interest rate	0.74% - 1.80%
Expected volatility	84% - 132%
Dividend yield	–

Warrants - Summary

	Warrants Outstanding							Warrants Exercisable
					Weighted						Weighted
					Average		Weighted				Average		Weighted
				Range of	Remaining		Average				Remaining		Average
	Warrants			Exercise	Life in		Exercise	Warrants			Life in		Exercise
	Outstanding			Prices	Years		Price	Exercisable			Years		Price
As of December 31, 2011		59,530,245		$0.65 - $2.00		3.5	$2.00		59,530,245			3.5	$2.00
Exercised		–		-		–	-		–			–	-
Ratchet-down impact		56,991,667		$0.30		–	$0.30		56,991,667			–	$0.30
Granted		15,763,330		$0.30 - $0.75		4.6	$0.38		10,388,330			4.6	-
As of December 31, 2012		132,285,242		$0.30 - $2.00		3.5	$0.40		126,910,242			3.5	$0.38
Cancelled		(97,869,997	)	$0.30		3.0	$0.30		(93,994,997	)		3.0	$0.30
Exercised		–		-		–	-		–			–	-
Granted		17,391,667		$0.03		4.7	$0.03		17,391,667			4.7	$0.03
As of June 30, 2013		51,806,912		$0.03 - $2.00		3.8	$0.44		50,306,912			3.8	$0.44