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Liabilities (Tables)
6 Months Ended
Jun. 30, 2014
Liabilities [Abstract]  
Schedule of Balance of Debentures
As of June 30, 2014 and December 31, 2013, the balances of the Debentures are as follows:
 
 
 
June 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
2,951,629
 
$
1,129,473
 
Issuance of debentures for cash
 
 
1,506,376
 
 
2,122,000
 
Original issue discount
 
 
44,737
 
 
111,685
 
Debentures surrendered in exchange transactions
 
 
-
 
 
(564,213)
 
Debentures issued in exchange transactions
 
 
-
 
 
626,368
 
Debentures converted to common stock
 
 
-
 
 
(473,684)
 
Convertible debt
 
 
4,502,742
 
 
2,951,629
 
Less unamortized costs of financing
 
 
1,002,608
 
 
644,518
 
Convertible debt, net of unamortized costs
 
$
3,500,134
 
$
2,307,111
 
 
 
 
 
 
 
 
 
Convertible debt in default
 
$
1,334,738
 
$
1,324,212
 
Schedule of Balances of Derivative Liability
As of June 30, 2014 and December 31, 2013, the balances of the Derivative Liability are as follows:
 
 
 
 
 
 
Conversion
 
 
 
 
 
 
Warrants
 
Feature
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2012
 
$
1,730,044
 
$
605,516
 
$
2,335,560
 
Liability on issuance of debt and warrants
 
 
762,111
 
 
929,156
 
 
1,691,267
 
Change in fair value at year end
 
 
(1,688,671)
 
 
(1,233,733)
 
 
(2,922,404)
 
Balance at December 31, 2013
 
 
803,484
 
 
300,939
 
 
1,104,423
 
 
 
 
 
 
 
 
 
 
 
 
Liability on issuance of debt and warrants
 
 
-
 
 
-
 
 
-
 
Change in fair value at period end
 
 
1,288,147
 
 
763,613
 
 
2,051,760
 
Balance at June 30, 2014
 
$
2,091,631
 
$
1,064,552
 
$
3,156,183