2.4.0.8061100 - Disclosure - DERIVATIVE LIABILITIEStruefalsefalse1false falsefalsec20130101to20130630http://www.sec.gov/CIK0001052257duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0DERIVATIVE LIABILITIES [Abstract]2false 2us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: Times New Roman; font-weight: bold; text-align: justify; margin-left: 0pt; text-decoration: underline; display: block; margin-right: 0pt; text-indent: 0pt;">NOTE 11 – DERIVATIVE LIABILITIES</div><div style="text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div><div style="text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div><div style="font-size: 10pt; font-family: Times New Roman; text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">The Company’s warrants (as well as its formerly outstanding preferred stock and Convertible 8% Senior Secured Notes issued in 2008 and 2010) have reset provisions to the exercise price if the Company issues equity or other derivatives at a price less than the exercise price set forth in such warrants. This ratchet provision results in a derivative liability in our financial statements.</div><div style="text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div><div style="font-size: 10pt; font-family: Times New Roman; text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Our derivative liabilities decreased to $2,949,146 at June 30, 2013 from $8,025,381 at December 31, 2012.  The decrease in fair value during the six months ended June 30, 2013 was $497,187 as compared to an increase of $2,887,993 for the six months ended June 30, 2012.</div><div style="text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div><div style="font-size: 10pt; font-family: Times New Roman; text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">During the six months ended June 30, 2013, additional paid in capital increased by $4,579,048 as a result of the conversion of the Series II Convertible Preferred Stock by Brightline and the exercise of warrants.  The change attributable to the conversion of the preferred stock was $2,761,688 and the change associated with the exercise of warrants was $1,817,360.</div><div style="text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div><div style="font-size: 10pt; font-family: Times New Roman; text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">The following tabular presentation reflects the components of derivative financial instruments on the Company’s balance sheet at June 30, 2013 and December 31, 2012:</div><div style="text-align: justify; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> </div><div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: times new roman; width: 100%;"><tr><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 34%;">  </td><td valign="top" style="border-bottom: black 2px solid; width: 13%;"><div style="font-size: 10pt; font-family: times new roman; font-weight: bold; text-align: center; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">6/30/13</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td valign="top" style="border-bottom: black 2px solid; width: 13%;"><div style="font-size: 10pt; font-family: times new roman; font-weight: bold; text-align: center; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">12/31/12</div></td></tr><tr bgcolor="#cceeff"><td align="left" valign="top" style="width: 34%;"><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Common stock warrants</div></td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> $2,949,146</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> $6,626,255</div></td></tr><tr bgcolor="white"><td align="left" valign="top" style="width: 34%;"><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Embedded conversion features for</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 13%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 13%;">  </td></tr><tr bgcolor="#cceeff"><td align="left" valign="top" style="width: 34%;"><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">  convertible debt or preferred shares</div></td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> -</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> 1,399,126</div></td></tr><tr bgcolor="white"><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 34%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 13%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 13%;">  </td></tr><tr bgcolor="#cceeff"><td align="left" valign="top" style="width: 34%;"><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Total</div></td><td align="right" valign="top" style="border-bottom: black 4px double; width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> $2,949,146</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td align="right" valign="top" style="border-bottom: black 4px double; width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> $8,025,381</div></td></tr><tr bgcolor="white"><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 34%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 13%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 13%;">  </td></tr><tr bgcolor="#cceeff"><td align="left" valign="top" style="width: 34%;"><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Beginning balance</div></td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> $8,025,381</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> $11,031,432</div></td></tr><tr bgcolor="white"><td align="left" valign="top" style="width: 34%;"><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Bifurcated amount</div></td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> -</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> -</div></td></tr><tr bgcolor="#cceeff"><td align="left" valign="top" style="width: 34%;"><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Change in derivative liability valuation</div></td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> (497,187)</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> 1,514,156</div></td></tr><tr bgcolor="white"><td align="left" valign="top" style="width: 34%;"><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Change in derivative liability - settlements</div></td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> (4,579,048)</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td align="right" valign="top" style="width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> (4,520,207)</div></td></tr><tr bgcolor="#cceeff"><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 34%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 13%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 13%;">  </td></tr><tr bgcolor="white"><td align="left" valign="top" style="width: 34%;"><div style="font-size: 10pt; font-family: times new roman; text-align: left; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;">Total</div></td><td align="right" valign="top" style="border-bottom: black 4px double; width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> $2,949,146</div></td><td valign="top" style="font-size: 10pt; font-family: times new roman; display: inline; width: 3%;">  </td><td align="right" valign="top" style="border-bottom: black 4px double; width: 13%;"><div style="font-size: 10pt; font-family: times new roman; text-align: right; margin-left: 0pt; display: block; margin-right: 0pt; text-indent: 0pt;"> $8,025,381</div></td></tr></table></div></div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for the entity's entire derivative instruments and hedging activities. 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