INTEREST EXPENSE AND OTHER EXPENSE (INCOME), NET

6 Months Ended

Jun. 30, 2013

Interest Income (Expense), Net [Abstract]

Other Income and Other Expense Disclosure [Text Block]

23. INTEREST EXPENSE AND OTHER EXPENSE (INCOME), NET

For the three months ended June 30, 2013, non-related party interest expense of $56,200 is comprised of $55,910 interest on convertible debentures, and $290 interest on notes payable. For the three months ended June 30, 2012, non-related party interest expense of $68,754 is comprised of $47,538 interest on convertible debentures, and $21,216 interest on notes payable.

For the three months ended June 30, 2013, $120,402 other income, net is comprised primarily of approximately $50,000 sales commission, $47,500 return and retirement of year end 2012 stock bonuses granted to certain consultants, and approximately $22,000 royalty income on licensed patents. For the three months ended June 30, 2012, $3,830 other income, net is primarily comprised of approximately $8,000 loss on extinguishment of convertible debentures offset by approximately $12.000 individually insignificant, net other income transactions.

For the six months ended June 30, 2013, non-related party interest expense of $125,050 is comprised of $123,620 interest on convertible debentures, $660 interest on notes payable, and $770 other interest. For the six months ended June 30, 2012, non-related party interest expense of $185,529 is comprised of $144,719 interest on convertible debentures, and $40,810 interest on notes payable.

For the six months ended June 30, 2013, $28,624 other income, net is comprised primarily of $93,826 loss on extinguishment of convertible debenture, and offset by approximately $72,000 royalty income on licensed patents, $47,500 return and retirement of year end 2012 stock bonuses granted to certain consultants, and approximately $3,000 other income, net of individually insignificant items. For the six months ended June 30, 2012, $978 other expense, net is primarily comprised of approximately $80,000 loss on extinguishment of convertible debentures, $34,730 write-off as obsolete or down to fair market value some of the merchandise acquired in asset purchase discussed in Note 8. ASSET PURCHASE, and almost completely offset by $95,054 gain on forgiveness of legal accrual, and approximately $19,000 other income, net of individually insignificant transactions.