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Note 11 - Prepaid Consulting Services
6 Months Ended
Jun. 30, 2014
Notes  
Note 11 - Prepaid Consulting Services

NOTE 11 – PREPAID CONSULTING SERVICES

 

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. There were no specified performance requirements and no provision in the agreements for return of the shares.  During the six months ended June 30, 2014 and 2013, total compensation expense paid in common shares was $1,660,346 and $110,500, 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 June 30, 2014 and December 31, 2013, the unamortized compensation was $166,722 and $380,860, respectively, reported as a current asset, prepaid consulting services, on our consolidated balance sheet.