Shareholders' Deficit

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Shareholders' Deficit

4. Shareholders’ Deficit

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.

In March 2014, the Company issued 310,000 shares of restricted common stock to one consultant at a price of $0.05 per share related to the issuance of convertible debentures.

In June 2014, the Company issued 690,000 shares of restricted common stock to one consultant at a price of $0.05 per share related to the issuance of convertible debentures.

Warrants

During the three and six months ended June 30, 2014, in conjunction with the sale of Convertible Debentures, the Company issued five year common stock purchase warrants to acquire up to 11,731,289 and 17,790,145 shares to holders of the Debentures and as compensation to Agents. These warrants have an exercise price of $0.09 per share.

The balance of all warrants outstanding as of June 30, 2014 is as follows:

			Weighted
			Average
			Exercise
Warrants	Shares		Price
Outstanding at January 1, 2014		87,929,794	$	0.15
Granted		17,790,145	$	0.09
Exchanged cancelled		-	$	-
Exchanged issued		-	$	-
Cancelled		-	$	-
Exercised		-	$	-
Outstanding at June 30, 2014		105,719,939	$	0.14
Exercisable at June 30, 2014		105,719,939	$	0.14

Stock Options

Options outstanding as of June 30, 2014 are as follows:

	Outstanding Options
			Weighted Average		Weighted Average		Aggregate
			Exercise Price		Remaining Contractual		Intrinsic
	Shares		Per Share		Term (years)		Value (1)
Outstanding at January 1, 2014		15,075,000	$	0.14		6.94
Granted		35,550,000	$	0.02		-
Cancelled		(14,225,000)	$	0.14		-
Exercised		(931,200)	$	0.02		-
Outstanding at June 30, 2014		35,468,800	$	0.02		9.63	$	1,038,564
Exercisable at June 30, 2014		12,681,266	$	0.03		9.38	$	357,688
Weighted average fair value of options granted during the period		35,550,000	$	0.02		-

(1) These amounts represent the excess, if any, between the exercise price and $0.05, the closing market price of the Company’s common stock on June 30, 2014 as quoted on the Over-the-Counter Bulletin Board under the symbol “SCIE”.

In January 2014, the Company’s Board of Directors authorized the issuance of stock options exercisable into up to 35,550,000 shares of common stock at an exercise price of $0.02 per share to a group of employees, directors and consultants in exchange for the cancelation of stock options exercisable into up to 14,225,000 shares of common stock with average exercise prices of $0.14 per share held by the same group.

There was one option exercised for 931,200 shares during the six month period ended June 30, 2014. At June 30, 2014, total unrecognized estimated employee compensation cost related to non-vested stock options granted prior to that date is $583,290, which we expect to be recognized over the next four years.