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(8) Consulting Agreements
9 Months Ended
Sep. 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 September 30, 2013. There were no specified performance requirements and no provision in the agreements for return of the shares.  At September 30, 2013, the compensation associated with the shares was $1,707,440. 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 September 30, 2013, the unamortized compensation associated with the shares was $1,382,420 reported as current and long-term prepaid consulting services on the balance sheet.

 

 For the nine months ended September, 2013 and 2012, the compensation associated with the shares recognized and expensed was $652,006 and $214,655; and $1,707,440 for the period from inception, October 1, 2010, to September 30, 2013; and the remaining unamortized expense of $1,367,287 is reported under prepaid consulting services.