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Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2014
Accounting Policies [Abstract]  
Summary of Weighted Average Assumptions To Value Stock Options Granted
Management used the following weighted average assumptions to value stock options granted during the three and six month periods ended June 30, 2014 and 2013:
 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
 
2014
 
2013
 
2014
 
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected term of options
 
 
None
 
 
None
 
 
5 years
 
 
 
None
 
Exercise price
 
 
None
 
 
None
 
$
0.02
 
 
 
None
 
Expected volatility
 
 
None
 
 
None
 
 
187
%
 
 
None
 
Expected dividends
 
 
None
 
 
None
 
 
None
 
 
 
None
 
Risk-free interest rate
 
 
None
 
 
None
 
 
1.64
%
 
 
None
 
Forfeitures
 
 
None
 
 
None
 
 
None
 
 
 
None
 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
For the periods ended June 30, 2014 and 2013, the following common equivalent shares were excluded from the computation of loss per share since their effects are anti-dilutive.
 
 
 
June 30,
 
June 30,
 
 
 
2014
 
2013
 
 
 
 
 
 
 
Preferred Stock
 
3,085,000
 
3,085,000
 
Convertible debentures
 
90,505,370
 
27,231,569
 
Options
 
35,468,800
 
19,491,667
 
Warrants
 
105,719,939
 
71,185,727
 
Total
 
234,779,109
 
120,993,963
 
Schedule Of Earnings Per Share Basic And Diluted
The following table sets forth the computation of basic and diluted loss per share and incorporates income and expense related to convertible debentures and warrants and a change in shares that could be outstanding on the conversion of the convertible debentures for the three and six month periods ended June 30, 2014 and 2013:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss for basic earnings per share
 
$
(1,170,343)
 
$
(663,930)
 
$
(4,420,500)
 
$
(3,287,026)
 
Net loss for diluted earnings per share
 
$
(1,170,343)
 
$
(663,930)
 
$
(4,420,500)
 
$
(3,287,026)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average basic shares outstanding
 
 
167,953,254
 
 
158,843,541
 
 
167,583,031
 
 
157,152,228
 
Denominator for diluted earnings per share-
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted weighted average shares
 
 
167,953,254
 
 
158,843,541
 
 
167,583,031
 
 
157,152,228
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss per share
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
(0.01)
 
$
(0.00)
 
$
(0.03)
 
$
(0.02)
 
Diluted
 
$
(0.01)
 
$
(0.00)
 
$
(0.03)
 
$
(0.02)
 
Inventory
Inventory consisted of the following at June 30, 2014 and December 31, 2013:
 
 
 
June 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
 
 
 
 
Raw materials
 
$
269,827
 
$
201,098
 
Finished goods
 
 
46,335
 
 
46,335
 
 
 
 
316,162
 
 
247,433
 
Reserve for obsolescence
 
 
-
 
 
-
 
 
 
$
316,162
 
$
247,433