Notes and Short-term Receivables

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Notes and Short-term Receivables

Note 5 - Notes and Short-term Receivables

At December 31, 2013, the Company had a receivable from Vulcan which had a balance of $440,000, which included $40,000 of accrued interest. In November 2014 the Company and the holder of the Vulcan note entered into settlement agreement terminate any and all agreements between them and to resolve all disputes existing between them, which are the subject of Holder’s draft complaint which has yet to be filed, upon the terms and conditions of which the Company will issue the Holder 1,000,000 shares of common stock (the “Settlement Shares”) at a cost basis of $0.12 per share representing aggregate consideration of $120,000 (the “Settlement Amount”). The stock certificate representing the Settlement Shares shall bear the standard 1933 Act restrictive legend. Holder, at its sole option, at any time prior to June 30, 2015, may convert the Settlement Shares into Series D Preferred Shares with a stated value of $120,000, a conversion price of $0.12 and liquidation and dividend rights to be determined. The Company recognized the expense for the loss associated with the conversion of the note receivable and note payable to Vulcan in the amount of $45,227.