INTEREST EXPENSE NON-RELATED PARTIES AND OTHER EXPENSE (INCOME), NET

6 Months Ended

Jun. 30, 2014

Interest Income (Expense), Net [Abstract]

Other Income and Other Expense Disclosure [Text Block]

22. INTEREST EXPENSE NON-RELATED PARTIES AND OTHER EXPENSE (INCOME), NET

For the three months ended June 30, 2014, non-related parties interest expense of $11,700 is comprised of $11,565 interest on convertible debentures and $135 other interest. For the three months ended June 30, 2013, non-related parties interest expense of $56,200 is comprised of $55,200 interest on convertible debentures and approximately $290 other interest.

For the six months ended June 30, 2014, non-related parties interest expense of $25,252 is comprised of $24,486 interest on convertible debentures and $766 other interest. For the six months ended June 30, 2013, non-related parties interest expense of $125,050 is comprised of $123,620 interest on convertible debentures and $1,430 other interest.

For the three months ended June 30, 2014, $39,342 other expense, net is comprised primarily of $24,486 loss on disposal of fixed assets, $14,850 loss on convertible debenture settlement, and $6 other expense, net of individually insignificant items. 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 six months ended June 30, 2014, $2,604 other expense, net is comprised primarily of $31,463 write off of accrued legal expense from prior years resulting from resolution of overbilling as identified by Company, $5,144 royalty income on licensed patents, $24,486 loss on disposal of fixed assets, $14,850 loss on convertible debenture settlement, and $125 other income, net of individually insignificant items. 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.