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Note 9 - Consulting Agreements
12 Months Ended
Dec. 31, 2013
Notes  
Note 9 - Consulting Agreements

Note 9 – Consulting Agreements

 

We have 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 of our common stock 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, 2013. There were no specified performance requirements and no provision in the agreements for return of the shares.  During the years ended December 31, 2013 and 2012, total compensation expense paid in common shares was $1,648,655 and $1,013,772, respectively.  Compensation expense is calculated based on the market price of the stock on the effective date of agreement and amortized over the period over which the services are provided to the Company.   As of December 31, 2013, the unamortized compensation paid in common shares was $380,860, reported as a current asset, prepaid consulting services, on our consolidated balance sheet.  As of December 31, 2012, the unamortized compensation paid in common shares was $717,626, $549,147 reported as prepaid consulting services, a current asset, and $168,479 reported as prepaid consulting services, long-term, a long-term asset on our consolidated balance sheet.