Subsequent Events

12 Months Ended

Dec. 31, 2013

Subsequent Events [Abstract]

Subsequent Events

Note 14: Subsequent Events

Convertible Debentures and Warrants 

From January 2014 through June 2014, the Company sold $1,551,113 of Unsecured Convertible Debentures (the “Debentures”) to accredited investors for aggregate consideration of $1,506,375. The Debentures mature in twelve months, carry a fixed conversion price of $.045, an annual interest rate of 10% and are convertible into 33,884,379 shares of common stock at maturity. The Company received net cash proceeds of approximately $1,426,376 after payment of fees and expenses of $80,000. In addition, the Company issued the holders of the Debentures detachable five-year warrants to purchase 16,942,189 additional shares of common stock and issued to a placement agent of a portion of the offering warrants to purchase 555,556 shares of common stock all at an exercise price of $0.090 per share and will issue to the same agent 1,111,111 shares of common stock in lieu of a cash payment.

Common Stock

In February 2014, an affiliate of the Company exercised a portion of his stock options into 931,200 shares of restricted common stock at an exercise price of $0.02 for proceeds to the Company of $18,624.

Subsequent events have been evaluated through the date financial statements are filed with the Securities and Exchange Commission.