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(8) Consulting Agreements
6 Months Ended
Jun. 30, 2013
Notes  
(8) Consulting Agreements

(8)       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 June 30, 2013. There were no specified performance requirements and no provision in the agreements for return of the shares.  At June 30, 2013, the compensation associated with the shares was $1,909,072. 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 June 30, 2013, the unamortized compensation associated with the shares was $429,178 reported as current and long-term prepaid consulting services on the balance sheet.

  

For the six months ended June, 2013 and 2012, the compensation associated with the shares recognized and expensed was $398,948 and $214,655; and $1,454,382 for the period from inception, October 1, 2010, to June 30, 2013; and the remaining unamortized expense of $429,178 is reported under unamortized portion of stock issued for services.