XML 47 R4.htm IDEA: XBRL DOCUMENT v2.4.0.8
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
NET REVENUES        
Sales $ 53,260   $ 118,408 $ 3,140
Royalties            
TOTAL NET REVENUE 53,260   118,408 3,140
COST OF SALES 50,160   104,600 2,710
GROSS PROFIT 3,100   13,808 430
OPERATING EXPENSES        
General and administrative 83,779 232,291 389,361 501,299
Legal and accounting 56,012 110,187 366,509 278,275
Payroll expenses 410,421 [1] 344,539 [1] 1,912,279 [1] 9,085,336 [1]
Research and development 13,601 [2] 158,030 [2] 889,450 [2] 470,005 [2]
Sales and marketing 45,256 78,225 170,587 182,726
Total operating expenses 609,069 923,272 3,728,186 10,517,641
LOSS BEFORE OTHER INCOME (EXPENSE) (605,969) (923,272) (3,714,378) (10,517,211)
OTHER INCOME (EXPENSE)        
Interest expense (83,663) (42,700) (107,691) (116,918)
Loss on extinguishment of debt     (82,000) (1,221,875)
Change in fair value of warrants (824,283) 9,676,165 2,012,289 (3,104,209)
Change in fair value of embedded derivative liability (200,000) (500,000) 400,000 (500,000)
Fair value of warrants in excess of consideration for convertible preferred stock       (2,995,791)
TOTAL OTHER INCOME (EXPENSE) (1,107,946) 9,133,465 2,222,598 (7,938,793)
NET INCOME (LOSS) BEFORE INCOME TAX BENEFIT (1,713,915) 8,210,193 (1,491,780) (18,456,004)
INCOME TAX BENEFIT            
NET INCOME (LOSS) (1,713,915) 8,210,193 (1,491,780) (18,456,004)
Less: Deemed dividend distribution       (1,000,000)
NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS $ (1,713,915) $ 8,210,193 $ (1,491,780) $ (19,456,004)
NET INCOME (LOSS) PER COMMON SHARE        
BASIC (in dollars per share) $ (0.01) $ 0.03 $ 0.00 $ (0.08)
DILUTED (in dollars per share) $ (0.01) $ 0.02 $ 0.00 $ (0.08)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING        
BASIC (in shares) 307,578,149 247,476,627 302,559,881 145,144,603
DILUTED (in shares) 307,578,149 465,253,680 302,559,881 145,144,603
[1] includes share based compensation of $40,326 and $842,592 for the three and nine months ended September 30, 2014 and $154,975 and $8,427,202 for the three and nine months ended September 30, 2013
[2] includes share based compensation of $400,000 for the nine months ended September 30, 2014 related to the Patent & Technology services agreement