14. Other (income)/expenses

12 Months Ended

Dec. 31, 2012

Other Income Disclosure, Nonoperating [Abstract]

Note 13 - Other (income)/expenses

Other (income)/expenses for 2012 was net other expense of $379,188, an increase in expense of $1,392,097 from net other income of $1,012,909 in 2011. The net other expense for 2012 primarily resulted from the offset of a $538,515 receivable from Paul Feller, the Company’s former chairman and president (see Footnote 6 to the Financial Statements for more information). Other expenses in 2012 were increased by an accrual of $300,000 estimated to be needed to settle a dispute with a vendor in Europe, and $300,000 accrued for water damage in the building formerly occupied by the Company for which the Company may be liable. These expenses were offset by: the writeoff of $346,974 in accrued liabilities related to Paul Feller that are no longer required; $256,449 in reductions in accrued interest related to debt that has been paid or settled; $102,435 in accrued interest related to preferred stock that has been converted to common stock and $72,078 in gains on negotiated settlement of certain payables for less than book value.

Net other (income)/expenses in 2011 of $1,012,909 were primarily for the writeoff of $1,000,000 in debt related to the acquisition of Stratus White for which agreed-upon assets were never received by the Company and the statute of limitations had expired on the obligation to pay this debt.  

The following is a table of the components of other (income)/expense for 2012 and 2011:

	Years Ended December 31,
	2012			2011
Writeoff note related to Stratus White acquisition that related to items the Company did not receive in the acquisition and is past the state of limitations	$	–		$	(1,000,000	)
Reduction in liabilities related to Paul Feller that are no longer needed		(346,974	)		–
Reduction in accrued interest related to debt that has been repaid or settled		(256,449	)		–
Reduction in accrued interest related to preferred stock that has been converted to common stock		(102,435	)		–
Gain on negotiated settlement of account payable below book value		(72,078	)		–
Other income items		–			(12,909	)
Offset of receivable from Paul Feller from stock transactions		538,515			–
Accrued estimated property damage that may be the Company's liability		300,000			–
Estimated cost to settle dispute with vendor in Europe		300,000			–
Other expense items, net		18,610			–
Other (income)/expense, net	$	379,188		$	(1,012,909	)