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(12) Consulting Agreements
12 Months Ended
Dec. 31, 2012
Notes  
(12) Consulting Agreements

(12)     Consulting Agreements

 

The Company has entered into various consulting agreements for financial and business development services to the Company. Certain of these consulting agreements provide for cash compensation to the consultants; however most are based on issuances of shares in exchange for services.

 

Under the consulting agreements that provide for share issuances, shares were generally issued at the inception of the agreements for services provided between January 1, 2011 and December 31, 2012. There were no specified performance requirements and no provision in the agreements for return of the shares.  At December 31, 2012, the compensation associated with the shares was $1,792,572. Compensation expense is calculated based on price of stock on the effective date of agreement and amortized over the period over which the services are provided to the Company. At December 31, 2012, the unamortized compensation associated with the shares was $717,626, reported as “unamortized portion of stock issued for services”, a contra-equity account due to it being an offset to the stock issued for services recorded on the balance sheet as a part of additional paid-in capital. 

 

During the year ended December 31, 2012, the Company entered into various consulting agreements that provide for issuances of common stock in exchange for services. The compensation associated with these issuances of shares for services for the year ended December 31, 2012 was $1,013,772. At December 31, 2012, none of the shares related to these issuances have been issued.

 

For the years ended December 31, 2012 and 2011, the compensation associated with the shares recognized and expensed was $539,835 and $535,111; and $1,074,946 for the period from inception, October 1, 2010, to December 31, 2012; and the remaining unamortized expense of $717,626 is reported under unamortized portion of stock issued for services.