Stockholder's Deficit

9 Months Ended

Sep. 30, 2011

Reporting Comprehensive Income (Loss)/Stockholder's Deficit [Abstract]

Stockholder's Deficit

8. Stockholders’ Deficit

Preferred Stock

On June 1, 2011 the Company issued to Robert L. Gipson 4,600,000 shares of its common stock in exchange for the conversion by Mr. Gipson of 184,000 shares of the Company’s Series F Convertible, Redeemable Preferred Stock (“Series F Stock”). Each share of the Series F Stock was converted into 25 shares of common stock pursuant to the conversion terms of the Series F Stock contained in the Certificate of Designation for the Series F Stock. Each share of the Series F Stock was sold to Mr. Gipson during 2009 at a price per share of $25 yielding aggregate proceeds to the Company in 2009 of $4,600,000. The accrued interest related to the converted Series F Stock was reclassified to Additional paid-in capital on the books of the Company as a result of the conversion. As of September 30, 2011, there remained 12,000 shares of Series F Stock still outstanding and held by Mr. Gipson.

Common Stock

In July 2011, four former board members signed settlement agreements to resolve unpaid fees due to them for services rendered during the period of July 2008 through January 2010. At the time of the agreements a total of $358,500 was owed to John Preston, Henry Brem, Gary Frashier and Robert Langer for board fees and consulting fees. Per the agreements, each member would be issued one share of stock for each dollar owed. The Company stock closed at $.08 per share on the effective date of the agreements. As a result of these transactions a total of 358,500 shares of Company stock were issued. The issuance of these shares and the forgiveness of approximately $328,000 in debt resulted in approximately $356,000 in reduction in accrued expenses that had been included in the Condensed Consolidated Balance Sheet at June 30, 2011.