14. Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2013

Shareholders Equity Tables

Common stock outstanding

	Number of
	Shares
Outstanding shares as of December 31, 2012		89,083,677
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
Shares issued for financial advisory agreement		21,025,000
Sales of common stock		13,916,665
Conversion of Series D Preferred into common stock		1,413,850
Other		700,689
Outstanding shares as of September 30, 2013		420,966,252

Stock Options- 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	–

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	4.5	$0.03	31,000,000	4.5	$0.03
As of September 30, 2013	38,943,523	$0.03 -$0.54	4.1	$0.12	36,731,023	4.1	$0.11

Warrants -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	–

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
	Warrants Outstanding			Range of Exercise Prices		Weighted Average Remaining Life in Years		Weighted Average Exercise Price		Warrants Exercisable			Weighted Average Remaining Life in Years		Weighted Average Exercise 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		2.7		$0.30		(93,994,997	)		2.7		$0.30
Exercised		–			–		–		–		–			–		–
Granted		17,391,667			$0.03		4.5		$0.03		17,391,667			4.5		$0.03
As of September 30, 2013		51,806,912			$0.03 - $2.00		3.5		$0.44		50,306,912			3.5		$0.44