Annual report pursuant to Section 13 and 15(d)

Nature of Operations and Summary of Significant Accounting Policies (Tables)

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Nature of Operations and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2012
Nature Of Operations And Summary Of Significant Accounting Policies Tables  
Fair Value of Financial Instruments

The following table presents assets and liabilities that are measured and recognized at fair value as of December 31, 2012 on a recurring and non-recurring basis:

 

Description   Level 1     Level 2     Level 3     Gains (Losses)  
Goodwill (non-recurring)   $ -     $ -     $ 2,259,624     $ (742,446)
Intangibles, net (non-recurring)   $ -     $ -     $ 444,112     $ (145,396)
Derivatives (recurring)   $ -     $ -     $ 3,074,504     $ 359,530  

 

The following table presents assets and liabilities that are measured and recognized at fair value as of December 31, 2011 on a recurring and non-recurring basis:

 

Description   Level 1     Level 2     Level 3     Gains (Losses)  
Goodwill (non-recurring)   $ -     $ -     $ 3,002,070     $ (10,435,170)
Intangibles, net (non-recurring)   $ -     $ -     $ 1,116,506     $ (1,325,134)
Derivatives (recurring)   $ -     $ -     $ 1,573,859     $ (1,234,145)

 

Equipment

Net property and equipment were as follows:

 

    December 31, 2012     December 31, 2011  
Equipment   $ 155,716     $ 146,872  
Furniture and Fixtures     14,569       13,254  
Subtotal     170,285       160,126  
                 
Less accumulated depreciation     (156,174)       (134,810)
Total   $ 14,111     $ 25,316  

 

Net Loss Per Common Share

These outstanding securities are noted in the table below. In addition, see potential issuances associated with warrants and convertible notes payable in Notes 5 and 6.

 

    December 31,2012     December 31, 2011  
             
Outstanding employee options     1,955,000       1,610,000  
Outstanding non-employee warrants     905,000       905,000  
Outstanding PIPE warrants     842,184       842,184  
      3,702,184       3,357,184