x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRILLIANT EXPLORATION CORPORATION
(Name of small business issuer in its charter)
|
Nevada
|
20-0936313
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
545 Eighth Avenue, Suite 401, New York, New York 10019
(Address of principal executive offices)
|
|
|
|
(212) 203 -0310
(Issuer’s telephone number)
|
|
(Previous address if changed from last report)
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
|
|
|
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
x
|
Class
|
Outstanding as of June 30, 2013
|
|
Common Stock, $0.001
|
191,446,114
|
|
Page
|
||||
PART I - FINANCIAL INFORMATION
|
|||||
Item 1.
|
Financial Statements
|
4 | |||
Condensed Consolidated Balance Sheets as of June 30, 2013 (Unaudited), March 31, 2013 and December 31, 2012 (Unaudited)
|
4
|
||||
Condensed Consolidated Statements of Operations for the Six months Ended June 30, 2013, the three months ended June 30, 2013, the three months ended March 31, 2013 and year ended Dec 31, 2012 (Unaudited)
|
5
|
||||
Condensed Consolidated Statements of Cash Flows for the Six and three months ended June 30, 2013, Three months Ended March 31, 2013 and year ended Dec. 31, 2012 (Unaudited)
|
6
|
||||
Consolidated Statement of Changes in Equity for the period ended June 30, 2013, March 31, 2013 and December 31, 2012 (Unaudited)
|
7 | ||||
Notes to Condensed Consolidated Financial Statements (Unaudited)
|
8
|
||||
Forward Looking Statement
|
20
|
||||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
20
|
|||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
25
|
|||
Item 4.
|
Controls and Procedures
|
26
|
|||
PART II - OTHER INFORMATION
|
|||||
Item 1.
|
Legal Proceedings
|
27
|
|||
Item 1A.
|
Risk Factors
|
27
|
|||
Item 2.
|
Unregistered Sales of Equity Securities
|
27
|
|||
Item 3.
|
Defaults upon Senior Securities
|
27
|
|||
Item 4.
|
Mining Safety Disclosures
|
27
|
|||
Item 5.
|
Other Information
|
27
|
|||
Item 6.
|
Exhibits
|
28
|
|||
Signatures
|
29
|
June 30,
2013
|
March 31,
2013
|
December 31,
2012
|
||||||||||
ASSETS
|
||||||||||||
Current Assets
|
||||||||||||
Cash and cash equivalents
|
$ | 87 | $ | 60 | $ | 60 | ||||||
Total current assets
|
$ | 87 | $ | 60 | $ | 60 | ||||||
LIABILATIES AND SHAREHOLDERS DEFICIT
|
||||||||||||
Current liabilities
|
||||||||||||
Accounts payable
|
$ | 298,606 | $ | 292,949 | $ | 288,889 | ||||||
Accrued interest
|
181,236 | 176,868 | 172,499 | |||||||||
Convertible notes payable-related party
|
585,495 | 597,495 | 597495 | |||||||||
Short term notes payable
|
43,302 | 40,150 | 30,150 | |||||||||
Total current assets
|
$ | 1,108,639 | $ | 1,107,462 | $ | 1,089,033 | ||||||
Long term liabilities
|
||||||||||||
Derivative liabilities
|
$ | 7,136,057 | $ | 505,275 | $ | 560,817 | ||||||
Total long term liabilities
|
7,136,057 | $ | 505,275 | $ | 560,817 | |||||||
Total liabilities
|
$ | 8,244,696 | $ | 1,612,737 | $ | 1,649,850 | ||||||
SHARHOLDERS' DEFICIT
|
||||||||||||
Common stock, par value $0.001; 1,000,000,000; 191,446,114 issued and outstanding June 30, 2013; 152,819,187 issued and outstanding at March 31, 2013 and December 31, 2012; respectively
|
$ | 191,446 | $ | 152,819 | $ | 152,819 | ||||||
Additional paid-in capital
|
66,781,251 | 66,681,901 | 66,681,901 | |||||||||
Accumulated deficit during pre-exploration stage
|
(52,207,651 | ) | (52,207,651 | ) | (52,207,651 | ) | ||||||
Deficit accumulated
|
(12,809,655 | ) | (6,039,746 | ) | (6,076,859 | ) | ||||||
Total shareholders' deficit before Treasury stock
|
$ | 1,955,391 | $ | 8,587,323 | $ | 8,550,210 | ||||||
Treasury stock
|
(10,200,000 | ) | (10,200,000 | ) | (10,200,000 | ) | ||||||
Total shareholders' equity (deficit)
|
$ | (8,244,609 | ) | $ | (1,612,677 | ) | $ | (1,649,790 | ) | |||
Total liabilities and shareholders' equity (deficit)
|
$ | 87 | $ | 60 | $ | 60 |
For the six
months ended
30-June-2013
|
For the three
months ended
30-June-2013
|
For the three
months ended
31-March-2013
|
For the
year ended
31-Dec-2012
|
|||||||||||||
REVENUES
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Operating Expenses
|
||||||||||||||||
General and administrative
|
$ | 170,086 | $ | 156,026 | $ | 14,060 | $ | 276,034 | ||||||||
Total operating expense
|
170,086 | 156,026 | 14,060 | 276,034 | ||||||||||||
Net loss from operations
|
$ | (170,086 | ) | $ | (156,026 | ) | $ | (14,060 | ) | $ | (276,034 | ) | ||||
Other income (expense)
|
||||||||||||||||
Loss on settlement of debt
|
||||||||||||||||
Net realized and unrealized gain (loss) in the change in fair value of derivative liability
|
(6,603,085 | ) | (6,658,627 | ) | 55,542 | -161,264 | ||||||||||
Interest expense
|
(8,738 | ) | (4,369 | ) | (4,369 | ) | (313,904 | ) | ||||||||
Total other income (expense)
|
(6,611,823 | ) | (6,662,996 | ) | 51,173 | (475,168 | ) | |||||||||
Net gain (loss) before income tax
|
$ | (6,781,909 | ) | $ | (6,819,022 | ) | $ | 37,113 | $ | (751,202 | ) | |||||
Income taxes (benefits)
|
||||||||||||||||
Net gain (loss)
|
$ | (6,781,909 | ) | $ | (6,819,022 | ) | $ | 37,113 | $ | (751,202 | ) | |||||
Basic and Diluted loss per share
|
||||||||||||||||
Net gain (loss) per share, continuing operations
|
$ | (0.04 | ) | $ | (0.04 | ) | $ | 0.00 | $ | (0.02 | ) | |||||
Weighted Average Number of Common Shares outstanding (Basic and Diluted)
|
178,570,472 | 178,570,472 | 152,819,817 | 39,405,131 |
For the six
months ended
30-June-2013
|
For the three
months ended
30-June-2013
|
For the three
months ended
31-March-2013
|
For the
year ended
31-Dec-2012
|
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||||
Net gain (loss)
|
$ | (6,781,909 | ) | $ | (6,819,022 | ) | $ | 37,113 | $ | (751,202 | ) | |||||
Adjustments to reconcile net income to net cash by operations and non-cash items:
|
||||||||||||||||
Net realized and unrealized change in fair value of derivative liability
|
6,612,353 | 6,667,895 | (55,542 | ) | (16,842 | ) | ||||||||||
Amortization of conversion feature
|
(12,571 | ) | ||||||||||||||
Changes in operating assets and liabilities
|
||||||||||||||||
Accounts payable and accrued expenses
|
9,717 | 5,657 | 4,060 | 134,000 | ||||||||||||
Loan from Cortland Capital
|
13,152 | 3,152 | 10,000 | 20,000 | ||||||||||||
Loan from Eightfold Entertainment
|
7,060 | |||||||||||||||
Trafalgar bonds payable
|
(127,830 | ) | ||||||||||||||
Accrued interest
|
8,738.0 | 4,369 | 4,369 | (301,331 | ) | |||||||||||
Net cash (used in) provided by operating activities
|
$ | (137,949 | ) | $ | (137,949 | ) | $ | - | $ | (1,048,716 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||
Common shares issued (in escrow) acquisition
|
$ | (56,500 | ) | |||||||||||||
Net cash (used in) provided by investing activities
|
$ | - | $ | - | $ | - | $ | (56,500.00 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||
Common stock issued for services
|
37,626 | 37,626 | 82,764 | |||||||||||||
Common stock issued to retire preferred stock
|
40,000 | |||||||||||||||
Common stock issued in settlement of debt
|
1,000 | 1000 | 94,679 | |||||||||||||
Additional paid-in capital
|
99,350 | 99,350 | 887,833 | |||||||||||||
Net cash (used in) provided by financing activities
|
$ | 137,976 | $ | 137,976 | $ | - | $ | 1,105,276 | ||||||||
Net increase (decrease) in cash
|
$ | 27 | $ | 27 | $ | - | $ | 60 | ||||||||
Cash at beginning of period
|
$ | 60 | $ | 60 | $ | 60 | $ | - | ||||||||
Cash at end of period
|
$ | 87 | $ | 87 | $ | 60 | $ | 60 | ||||||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
||||||||||||||||
Cash paid for interest
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Cash paid for income taxes
|
$ | - | - | $ | - | $ | - | |||||||||
Non-cash investing activities
|
||||||||||||||||
Common stock issued for debt and accrued interest
|
$ | - | $ | - | $ | - | $ | 94,679 | ||||||||
Common stock issued to retire preferred stock
|
$ | - | $ | - | $ | - | $ | 56,500 | ||||||||
Common stock issued for services
|
$ | 37,626 | $ | 37,626 | $ | - | $ | 40,000 | ||||||||
Common stock issued to settle debt
|
$ | 1,000 | $ | 1,000 |
Common
|
Additional
Paid-in
|
Treasury
|
Accumulated deficit during pre-exploration
|
|
||||||||||||||||||||||||
Stock
|
Amount
|
Capital |
Stock
|
stage |
Deficit
|
Total
|
||||||||||||||||||||||
Balance 31-Dec-2012
|
152,819,187 | $ | 152,819 | $ | 6,681,901 | $ | (10,200,000 | ) | (52,207,651 | ) | (6,076,859 | ) | (1,649,790 | ) | ||||||||||||||
Common issued in settlement of debt and accrued interest
|
||||||||||||||||||||||||||||
Common issued for services
|
||||||||||||||||||||||||||||
Common issued in escrow for acquisition | ||||||||||||||||||||||||||||
Treasury stock
|
||||||||||||||||||||||||||||
Net gain (loss)
|
37,113 | 37,113 | ||||||||||||||||||||||||||
Balance 31-March-2013
|
152,819,187 | $ | 152,819 | 66,681,901 | (10,200,000 | ) | (52,207,651 | ) | (6,039,746 | ) | (1,612,677 | ) | ||||||||||||||||
Common issued in settlement of debt and accrued interest
|
1,000,000 | 1,000.00 | 11,000 | |||||||||||||||||||||||||
Common issued for services
|
37,626,927 | 37,626.93 | 88,350 | |||||||||||||||||||||||||
Common issued in escrow for acquisition | ||||||||||||||||||||||||||||
Treasury stock
|
||||||||||||||||||||||||||||
Net loss
|
(6,643,929 | ) | (6,643,929 | ) | ||||||||||||||||||||||||
Balance 30-Jun-2013
|
191,446,114 | 191,446 | 66,781,251 | (10,200,000 | ) | (52,207,651 | ) | (12,683,675 | ) | (8,256,606 | ) |
Issue date
|
Maturity
|
Principal
|
Interest Rate
|
Date of Default
|
||||||||||||||||
(A)
|
12/31/2008
|
1/5/2010
|
90,000 | 8.00 | % |
1/5/2010
|
||||||||||||||
(A)
|
1/16/2009
|
1/5/2010
|
100,000 | 8.00 | % |
1/5/2010
|
||||||||||||||
(A)
|
1/23/2009
|
1/5/2010
|
50,000 | 8.00 | % |
1/5/2010
|
||||||||||||||
(A)
|
2/2/2009
|
1/5/2010
|
25,000 | 8.00 | % |
1/5/2010
|
||||||||||||||
(A)
|
3/9/2009
|
1/5/2010
|
10,000 | 8.00 | % |
1/5/2010
|
||||||||||||||
(B)
|
4/8/2009
|
4/8/2010
|
50,000 | 8.00 | % |
4/8/2010
|
||||||||||||||
6/23/2009
|
6/23/2010
|
25,000 | 8.00 | % |
6/23/2010
|
|||||||||||||||
7/1/2009
|
7/1/2010
|
* | 8.00 | % |
7/2/2010
|
|||||||||||||||
7/6/2009
|
7/6/2010
|
20,000 | 8.00 | % |
7/7/2010
|
|||||||||||||||
8/26/2009
|
8/31/2010
|
195,000 | 8.00 | % |
9/1/2010
|
|||||||||||||||
Totals | $ | 565,000 | ||||||||||||||||||
Dividend yield:
|
-0-
|
%
|
||
Volatility
|
181.03
|
%
|
||
Risk free rate:
|
0.82
|
%
|
30-June-2013
|
31-March-2013
|
|||||||
Dividend yield:
|
-0-
|
%
|
0%
|
|||||
Volatility
|
469.97
|
%
|
395.51%
|
|||||
Risk free rate:
|
0..28
|
%
|
.025%
|
Dividend yield:
|
-0-
|
%
|
||
Volatility
|
291.51
|
%
|
||
Risk free rate:
|
0.80
|
%
|
30-Jun-13
|
31-Mar-13
|
|||||||
Dividend yield:
|
-0-
|
%
|
-0-
|
%
|
||||
Volatility
|
469.97%
|
%
|
395.51
|
%
|
||||
Risk free rate:
|
0.28
|
%
|
0.25
|
%
|
Dividend yield:
|
-0-
|
%
|
||
Volatility
|
291.5
|
3%
|
||
Risk free rate:
|
0.802
|
%
|
30-Jun-13
|
31-Mar-2013
|
|||||||
Dividend yield:
|
-0-
|
%
|
-0-
|
%
|
||||
Volatility
|
469.97
|
%
|
395.51
|
%
|
||||
Risk free rate:
|
0.28
|
%
|
0..25
|
%
|
Dividend yield:
|
-0-
|
%
|
||
Volatility
|
293
|
%
|
||
Risk free rate:
|
0.80
|
%
|
30-Jun-13
|
31-Mar-13
|
|||||||
Dividend yield:
|
-0-
|
%
|
-0-
|
%
|
||||
Volatility
|
469.97
|
%
|
395.51
|
%
|
||||
Risk free rate:
|
.28
|
%
|
.25
|
%
|
Issue date
|
Maturity
|
Principal
|
Interest rate
|
Default rate
|
Date of Default
|
|||||||||||||||
(A)
|
10/15/2008
|
10/15/2010
|
$ | 1,058,407 | * | 9.00 | % | 18.00 | % |
1/15/2010
|
||||||||||
(B)
|
4/30/2009
|
10/31/2010
|
300,000 | 9.00 | % | 18.00 | % |
1/15/2010
|
||||||||||||
(C)
|
10/12/2009
|
1/12/2010
|
252,000 | 9.00 | % | 9.00 | % |
1/13/2010
|
||||||||||||
(D)
|
11/3/2009
|
2/3/2010
|
- | * | 9.00 | % | 9.00 | % |
2/3/2010
|
|||||||||||
Totals
|
|
$ | 1,610,407 |
Common
|
Additional
|
Deficit
Accumulated
|
Total
Stockholders
|
|||||||||||||||||
Preferred
|
Stock
|
Paid in
|
During Pre
|
Equity
|
||||||||||||||||
Stock
|
Amount
|
Capital
|
Exploration
|
(Deficit)
|
||||||||||||||||
Balance December 31, 2009
|
$ | 10,200 | $ | 93,132 | $ | 10,706,521 | $ | (3,557,556 | ) | $ | 7,252,297 | |||||||||
Reverse Stock Split
|
- | (92,822 | ) | 92,822 | - | - | ||||||||||||||
Reversal of interest Payable
|
- | - | - | 149,112 | 149,112 | |||||||||||||||
Beneficial Conversion feature on Preferred Stock
|
(10,034,407 | ) | - | - | - | (10,034,407 | ) | |||||||||||||
Re-class
|
10,189,800 | (10,189,800 | ) | - | - | |||||||||||||||
Amortization of Beneficial Conversion feature on Preferred Stock
|
10,034,407 | - | - | - | 10,034,407 | |||||||||||||||
Amortization of Beneficial Conversion on Convertible Debt
|
- | - | 363,883 | - | 363,883 | |||||||||||||||
Change in Value of Derivative Liability
|
- | - | - | 1,747,423 | 1,747,423 | |||||||||||||||
Change in Interest Expense and amortization of beneficial conversion feature
|
- | - | - | (10,682,980 | ) | (10,682,980 | ) | |||||||||||||
Balance December 31, 2009 (restated)
|
10,200,000 | 310 | 973,426 | (12,344,001 | ) | (1,170,265 | ) | |||||||||||||
Removed Preferred Stock from Equity
|
(10,200,000 | ) | - | - | - | (10,200,000 | ) | |||||||||||||
Total Stockholder's equity (deficit) (before treasury stock)
|
$ | - | $ | 310 | $ | 973,426 | $ | (12,344,001 | ) | $ | (11,370,265 | ) |
|
Fair Value Measurements at December 31, 2012 using:
|
|||||||||||||||
|
June 30, 2013
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Liabilities:
|
||||||||||||||||
Debt derivative liabilities
|
$
|
7,136,057
|
-
|
-
|
$
|
7,136,057
|
||||||||||
Preferred stock derivative liabilities
|
$
|
0
|
$
|
0
|
Debt Derivative
Liability
|
||||
Balance March 31, 2032
|
$
|
505,275
|
||
Mark-to-market at June 30, 2013
|
||||
Embedded debt derivatives
|
6,630,732
|
|||
Balance, March 31, 2013
|
$
|
7,136,057
|
||
Net gain (loss) on derivatives realized and unrealized for the period included in earnings relating to the liabilities held at June 30, 2013
|
$
|
(6,630,732)
|
Contractual Obligations
|
|
Total
|
|
|
Less than one year
|
|
|
1 – 3 Years
|
|
|
3 – 5 Years
|
|
|
More than 5 Years
|
|
|||||
Convertible Notes Payable
|
|
|
585,495
|
|
|
|
585,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
585,495
|
|
|
$
|
585,495
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Exhibit Number
|
Description
|
|
Exhibit 31.1
|
Certification of President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
|
|
Exhibit 31.2
|
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
|
|
Exhibit 32.1
|
Certification of President pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
|
|
|
101.INS**
|
XBRL Instance Document
|
|
101.SCH**
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL**
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF**
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB**
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE**
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
TRILLIANT EXPLORATION CORPORATION
|
||
|
|
|
|
Dated: August 15, 2013
|
By:
|
/s/ Eric Radtke
|
|
|
|
Eric Radtke
|
|
|
|
President/Chief Executive Officer | |
|
|
|
|
Dated: August 15, 2013
|
By:
|
/s/ Eric Radtke
|
|
|
|
Eric Radtke
|
|
Chief Financial Officer |
1. | I have reviewed this Form 10-Q of Trilliant Exploration Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: | |
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: August 15, 2013
|
By: |
/s/ Eric Radtke
|
|
Eric Radtke, President and CEO
|
|||
(Principal Executive Officer)
|
1. | I have reviewed this Form 10-Q of Trilliant Exploration Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have: | |
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: August 15, 2013
|
By: |
/s/ Eric Radtke
|
|
Eric Radtke, CFO
|
|||
(Principal Accounting Officer)
|
Date: August 15, 2013
|
By: |
/s/ Eric Radtke
|
|
Eric Radtke
|
|||
Principal Executive Officer | |||
Date: August 15, 2013
|
By: |
/s/ Eric Radtke
|
|
Eric Radtke
|
|||
Principal Financial Officer |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Summary Of Significant Accounting Policies Tables | |
Option Pricing Model Assumptions | The fair value of the convertible debt at June 30, 2013 was determined using the Black Scholes Option Pricing Model with the following assumptions:
Dividend yield: 0% Volatility 469.97% Risk free rate: 0.28% |
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
|
3 Months Ended | 6 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Jun. 30, 2013
|
Mar. 31, 2013
|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Condensed Consolidated Statements Of Operations | ||||
Revenues | ||||
Operating Expenses | ||||
General and administrative | 156,026 | 14,060 | 170,086 | 276,034 |
Total operating expenses | 156,026 | 14,060 | 170,086 | 276,034 |
Net Loss from Operations | (156,026) | (14,060) | (170,086) | (276,034) |
Other income (expense) | ||||
Loss on settlement of debt | ||||
Net realized and unrealized gain (loss) in the change in fair value of derivative liability | (6,658,627) | 55,542 | (6,603,085) | (161,264) |
Interest expense | (4,369) | (4,369) | (8,738) | (313,904) |
Total other income (expense) | (6,662,996) | 51,173 | (6,611,823) | (475,168) |
Net gain (loss) before income tax | (6,819,022) | 37,113 | (6,781,909) | (751,202) |
Income taxes (benefit) | ||||
Net gain (loss) | $ (6,819,022) | $ 37,113 | $ (6,781,909) | $ (751,202) |
Basic and Diluted loss per share | ||||
Net gain (loss) per share, continuing operations | $ (0.04) | $ 0.00 | $ (0.04) | $ (0.02) |
Weighted Average Number of Common Shares outstanding (Basic and Diluted) | 178,570,472 | 152,819,817 | 178,570,472 | 39,405,131 |
RELATED PARTY TRANSACTIONS
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTE 4 - RELATED PARTY TRANSACTIONS | A Convertible Notes Payable The Company has entered into multiple convertible notes payable agreements with an investment firm that is also a minority stockholder of the Company. Each note carries a separately dated promissory note that bears interest of 8% and is payable on or before August 31, 2010, with each funding due one year from original date of receipt. Principal and interest are convertible at the option of the note-holder into shares of the Companys common stock at the rate of 80% of the average of the five daily volume weighted average price preceding the conversion date. Several Notes are in default and status of default is indicated in the following table. The Notes carry no penalty or change in interest rate for default. Interest expense on the convertible notes years ended December 31, 2012 and December 31, 2011, totaled $45,200 and $45,680, respectively. Due to the contingent nature of the conversion price, the company accounted for beneficial conversion feature and derivative liability on the note. The convertible promissory notes with the investment firm totaled $565,000 at December 31, 2012, December 31, 2011 and December 31, 2010 and are summarized as follows:
Convertible Notes
(A), Amounts borrowed were part of a master note agreement totaling $ 275,000
* This note was repaid in January 2011
January 5, 2009 Note: From January 5, 2009 to March 9, 2009, the Company issued a $275,000 Convertible Note that matured on January 5, 2010. The note bears interest at a rate of 8% and is convertible into the Companys common stock at any time at the holders option, at the conversion rate of 80% of the average rate of five preceding the closing date prior to notice of conversion.
The Company identified embedded derivatives related to the Convertible Note entered into on March 9, 2009 (completion of funding as per agreement). These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Note, the Company determined a fair value of $218,585 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
The initial fair value of the embedded debt derivative of $125,165 was allocated as a debt discount with the remainder ($93,420) charged to current period operations as interest expense.
During the year ended December 31, 2011 and 2010, the Company amortized $0 and $2,072 to current period operations as amortization of beneficial conversion feature.
The fair value of the described embedded derivative of $3,449,722 and $266,461 at June 30, 2013 and March 31, 2013, respectively was determined using the Black Scholes Model with the following assumptions:
At June 30, 2013, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating loss of $ (3,183,261).
April 8, 2009 Note: From April 8, 2009, the Company issued a $50,000 Convertible Note that matured on April 8, 2010. The note bears interest at a rate of 8% and is convertible into the Companys common stock at any time at the holders option, at the conversion rate of 80% of the average rate of five preceding the closing date prior to notice of conversion.
The Company identified embedded derivatives related to the Convertible Note entered into on April 8, 2009. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Note, the Company determined a fair value of $42,239 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
The initial fair value of the embedded debt derivative of $20,261 was allocated as a debt discount with the remainder ($21,978) charged to that period of operations as interest expense.
During the year ended December 31, 2012 and 2011, the Company amortized $0 to current period operations as amortization of beneficial conversion feature.
The fair value of the described embedded derivative of$ 636,872 and $41,175 at June 30, 2013 and March 31, 2013, was determined using the Black Scholes Model with the following assumptions:
June 23, 2009 Note: From June 23, 2009, the Company issued a $25,000 Convertible Note that matured on June 23, 2010. The note bears interest at a rate of 8% and is convertible into the Companys common stock at any time at the holders option, at the conversion rate of 80% of the average rate of five preceding the closing date prior to notice of conversion.
The Company identified embedded derivatives related to the Convertible Note entered into on June 23, 2009. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Note, the Company determined a fair value of $19,148 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
The initial fair value of the embedded debt derivative of $12,102 was allocated as a debt discount with the remainder ($7,046) charged to that period of operations as interest expense.
The fair value of the described embedded derivative of $318,158 and $20,587at June 30, 2013 and March 31, 2013 and December 31, 2012, respectively was determined using the Black Scholes Model with the following assumptions:
July 2009 and August 2009 Note: From July 2009 to August, 2009, the Company issued a three note totaling to $315,000 Convertible Note that matured on July 1, 2010, July 6, 2010 and August 31, 2010. The note bears interest at a rate of 8% and is convertible into the Companys common stock at any time at the holders option, at the conversion rate of 80% of the average rate of five preceding the closing date prior to notice of conversion.
The Company identified embedded derivatives related to the Convertible Note entered into on date of Note. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Note, the Company determined a fair value of $241,266 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
The initial fair value of the embedded debt derivative of $152,484 was allocated as a debt discount with the remainder ($88,782) charged to that period of operations as interest expense.
During the year ended December 31, 2012 and 20110, the Company amortized $0 to current period operations as amortization of beneficial conversion feature.
On January 22, 2011, the $100,000 of the Convertible Note was assigned to Shareholder at the $0.001 of conversion price. The Company recorded $582,973 as loss on change in term of note. On the same date the Company issued 333,333 no of Common stock against settlement of this Note of $100,000 and accrued interest of $12,482.
The fair value of the described embedded derivative of $ 2,731,305 and $ 177,052 at June 30, 2013 and March 31, 2013 was determined using the Black Scholes Model with the following assumptions:
B Short-Term Notes Payable
The Company has borrowed funds from stockholders for working capital purposes from time to time. The loans are non-interest bearing, payable on demand and, consequently, reported as current liabilities. The Company has received $39,514 in advances since inception and made repayments of $7,019 in cash, resulting in a payable balance of $32,495, during 2012 the remaining balance was settled through issuance of common stock and the Company obtained additional short term loan from Cortland Capital in the amount of $ 20,000 and $10,150 from Eightfold Entertainment. At December 31, 2012, the Company had remaining aggregate balance of $26,240.
C Bonds Payable, Convertible and Secured
The Company has entered into multiple convertible bond agreements with an investment firm that is also a minority stockholder of the Company.
The convertible bonds were listed below:
*On August 23, 2010, the Company repaid $241,593 in principal on (A) and $210,000 in principal on (D).
In October 2012, the Company retired its Series I Preferred stock, by issuing 45,000,000 shares of common stock to retire the Series I Preferred in satisfaction of the remaining bond debt, recording an addition to paid- in-capital of $16,752,000. |
RELATED PARTY TRANSACTIONS (Details) (USD $)
|
Dec. 31, 2012
|
Dec. 31, 2011
Convertible Note Payable One [Member]
|
Dec. 31, 2010
Convertible Note Payable One [Member]
|
Dec. 31, 2011
Convertible Note Payable Two [Member]
|
Dec. 31, 2010
Convertible Note Payable Two [Member]
|
Dec. 31, 2011
Convertible Note Payable Three [Member]
|
Dec. 31, 2010
Convertible Note Payable Three [Member]
|
Dec. 31, 2011
Convertible Note Payable Four [Member]
|
Dec. 31, 2010
Convertible Note Payable Four [Member]
|
Dec. 31, 2011
Convertible Note Payable Five [Member]
|
Dec. 31, 2010
Convertible Note Payable Five [Member]
|
Dec. 31, 2011
Convertible Note Payable Six [Member]
|
Dec. 31, 2010
Convertible Note Payable Six [Member]
|
Dec. 31, 2011
Convertible Note Payable Seven [Member]
|
Dec. 31, 2010
Convertible Note Payable Seven [Member]
|
Dec. 31, 2011
Convertible Note Payable Eight [Member]
|
Dec. 31, 2010
Convertible Note Payable Eight [Member]
|
Dec. 31, 2011
Convertible Note Payable Nine [Member]
|
Dec. 31, 2010
Convertible Note Payable Nine [Member]
|
Dec. 31, 2011
Convertible Note Payable Ten [Member]
|
Dec. 31, 2010
Convertible Note Payable Ten [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Issue date | Dec. 31, 2008 | Dec. 31, 2008 | Jan. 16, 2009 | Jan. 16, 2009 | Jan. 23, 2009 | Jan. 23, 2009 | Feb. 02, 2009 | Feb. 02, 2009 | Mar. 09, 2009 | Mar. 09, 2009 | Apr. 08, 2009 | Apr. 08, 2009 | Jun. 23, 2009 | Jun. 23, 2009 | Jul. 01, 2009 | Jul. 01, 2009 | Jul. 06, 2009 | Jul. 06, 2009 | Aug. 26, 2009 | Aug. 26, 2009 | |
Maturity | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Apr. 08, 2010 | Apr. 08, 2010 | Jun. 23, 2010 | Jun. 23, 2010 | Jul. 01, 2010 | Jul. 01, 2010 | Jul. 06, 2010 | Jul. 06, 2010 | Aug. 31, 2010 | Aug. 31, 2010 | |
Principal | $ 565,000 | $ 90,000 | $ 90,000 | $ 100,000 | $ 100,000 | $ 50,000 | $ 50,000 | $ 25,000 | $ 25,000 | $ 10,000 | $ 10,000 | $ 50,000 | $ 50,000 | $ 25,000 | $ 25,000 | $ 0 | $ 0 | $ 20,000 | $ 20,000 | $ 195,000 | $ 195,000 |
Interest Rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
Date of Default | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Jan. 05, 2010 | Apr. 08, 2010 | Apr. 08, 2010 | Jun. 23, 2010 | Jun. 23, 2010 | Jul. 02, 2010 | Jul. 02, 2010 | Jul. 07, 2010 | Jul. 07, 2010 | Sep. 01, 2010 | Sep. 01, 2010 |
RELATED PARTY TRANSACTIONS (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable | The convertible promissory notes with the investment firm totaled $565,000 at December 31, 2012, December 31, 2011 and December 31, 2010 and are summarized as follows:
Convertible Notes
(A), Amounts borrowed were part of a master note agreement totaling $ 275,000
* This note was repaid in January 2011 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible bonds | The convertible bonds were listed below:
*On August 23, 2010, the Company repaid $241,593 in principal on (A) and $210,000 in principal on (D). |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 5, 2009 Note [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions | The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 5, 2009 Note One [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions | The fair value of the described embedded derivative of $3,449,722 and $266,461 at June 30, 2013 and March 31, 2013, respectively was determined using the Black Scholes Model with the following assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
April 8, 2009 Note [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions | The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
April 8, 2009 Note One [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions | The fair value of the described embedded derivative of$ 636,872 and $41,175 at June 30, 2013 and March 31, 2013, was determined using the Black Scholes Model with the following assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 23, 2009 Note [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions | The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 23, 2009 Note One [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions | The fair value of the described embedded derivative of $318,158 and $20,587at June 30, 2013 and March 31, 2013 and December 31, 2012, respectively was determined using the Black Scholes Model with the following assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 2009 and August 2009 Note [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions | The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 2009 and August 2009 Note One [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assumptions | The fair value of the described embedded derivative of $ 2,731,305 and $ 177,052 at June 30, 2013 and March 31, 2013 was determined using the Black Scholes Model with the following assumptions:
|
RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)
|
6 Months Ended | 12 Months Ended | 96 Months Ended | 12 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2011
|
Mar. 31, 2013
|
Dec. 31, 2011
January 5, 2009 Note [Member]
|
Dec. 31, 2010
January 5, 2009 Note [Member]
|
Mar. 31, 2013
January 5, 2009 Note [Member]
|
Dec. 31, 2012
January 5, 2009 Note [Member]
|
Jun. 30, 2013
January 5, 2009 Note One [Member]
|
Dec. 31, 2011
July 2009 and August 2009 Note [Member]
|
Dec. 31, 2012
July 2009 and August 2009 Note [Member]
|
Jun. 30, 2013
April 8, 2009 Note [Member]
|
Dec. 31, 2012
April 8, 2009 Note [Member]
|
Dec. 31, 2011
April 8, 2009 Note [Member]
|
Jun. 30, 2013
July 2009 and August 2009 Note One [Member]
|
Dec. 31, 2010
July 2009 and August 2009 Note One [Member]
|
Dec. 31, 2012
July 2009 and August 2009 Note One [Member]
|
Dec. 31, 2012
Eightfold Entertainment [Member]
|
Dec. 31, 2012
Cortland Capital [Member]
|
Jun. 30, 2013
July 2009 and August 2009 Note Two [Member]
|
Mar. 31, 2013
July 2009 and August 2009 Note Two [Member]
|
Dec. 31, 2012
April 8, 2009 Note One [Member]
|
Jun. 30, 2013
April 8, 2009 Note Two [Member]
|
Mar. 31, 2013
April 8, 2009 Note Two [Member]
|
Dec. 31, 2011
April 8, 2009 Note Two [Member]
|
Dec. 31, 2012
June 23, 2009 Note [Member]
|
Dec. 31, 2012
June 23, 2009 Note One [Member]
|
Dec. 31, 2011
Convertible Note Payable Four [Member]
|
Dec. 31, 2010
Convertible Note Payable Four [Member]
|
Dec. 31, 2011
Convertible Note Payable Six [Member]
|
Dec. 31, 2010
Convertible Note Payable Six [Member]
|
Dec. 31, 2011
Convertible Note Payable Seven [Member]
|
Dec. 31, 2010
Convertible Note Payable Seven [Member]
|
Jun. 30, 2013
June 23, 2009 Note Two [Member]
|
Mar. 31, 2013
June 23, 2009 Note Two [Member]
|
Dec. 31, 2011
Convertible Note Payable Eight [Member]
|
Dec. 31, 2010
Convertible Note Payable Eight [Member]
|
Dec. 31, 2011
Convertible Note Payable Three [Member]
|
Dec. 31, 2010
Convertible Note Payable Three [Member]
|
Dec. 31, 2011
Convertible Note Payable Nine [Member]
|
Dec. 31, 2010
Convertible Note Payable Nine [Member]
|
Dec. 31, 2011
Convertible Note Payable Two [Member]
|
Dec. 31, 2010
Convertible Note Payable Two [Member]
|
Dec. 31, 2011
Convertible Note Payable Ten [Member]
|
Dec. 31, 2010
Convertible Note Payable Ten [Member]
|
Dec. 31, 2011
Convertible Note Payable One [Member]
|
Dec. 31, 2010
Convertible Note Payable One [Member]
|
Dec. 31, 2011
Convertible Note Payable Five [Member]
|
Dec. 31, 2010
Convertible Note Payable Five [Member]
|
|
Interest expense on the convertible note | $ 45,200 | $ 45,680 | ||||||||||||||||||||||||||||||||||||||||||||||||
Convertible promissory notes | 585,495 | 597,495 | 597,495 | 25,000 | 25,000 | 50,000 | 50,000 | 25,000 | 25,000 | 0 | 0 | 50,000 | 50,000 | 20,000 | 20,000 | 100,000 | 100,000 | 195,000 | 195,000 | 90,000 | 90,000 | 10,000 | 10,000 | |||||||||||||||||||||||||||
Fair value of embedded derivative | 266,461 | 125,165 | 3,449,722 | 241,266 | 42,239 | 152,484 | 2,731,305 | 177,052 | 20,261 | 636,872 | 41,175 | 48,656 | 19,148 | 12,102 | 318,158 | 20,587 | ||||||||||||||||||||||||||||||||||
Debt discount on embedded derivative | (93,420) | (88,782) | (21,978) | (7,046) | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of beneficial conversion feature | 0 | 2,072 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Non-cash gain loss on derivative liability | 64,336 | (3,183,261) | ||||||||||||||||||||||||||||||||||||||||||||||||
Advance from related party | 39,514 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of related party debt | 7,019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Related party notes payable balance | 32,495 | |||||||||||||||||||||||||||||||||||||||||||||||||
Obtained additional short term loan | 10,150 | 20,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Remaining aggregate balance | $ 26,240 |
RELATED PARTY TRANSACTIONS (Details 2) (USD $)
|
Jun. 30, 2013
|
---|---|
Convertible Bonds One [Member]
|
|
Issue date | Oct. 15, 2008 |
Maturity | Oct. 15, 2010 |
Principal | $ 1,058,407 |
Interest rate | 9.00% |
Default rate | 18.00% |
Date of Default | Jan. 15, 2010 |
Convertible Bonds Two [Member]
|
|
Issue date | Apr. 30, 2009 |
Maturity | Oct. 31, 2010 |
Principal | 300,000 |
Interest rate | 9.00% |
Default rate | 18.00% |
Date of Default | Jan. 15, 2010 |
Convertible Bonds Three [Member]
|
|
Issue date | Oct. 12, 2009 |
Maturity | Jan. 12, 2010 |
Principal | 252,000 |
Interest rate | 9.00% |
Default rate | 9.00% |
Date of Default | Jan. 13, 2010 |
Convertible Bonds Four [Member]
|
|
Issue date | Nov. 03, 2009 |
Maturity | Feb. 03, 2010 |
Principal | $ 1,610,407 |
Interest rate | 9.00% |
Default rate | 9.00% |
Date of Default | Feb. 03, 2010 |
CORRECTION OF PRIOR YEAR ACCOUNTING ERROR (Details Narrative) (USD $)
|
Dec. 31, 2009
|
---|---|
Correction Of Prior Year Accounting Error Details Narrative | |
Overstatement of debt | $ 2,389,200 |
Overstatement of a related investment | 2,389,200 |
Overstatement of accrued interest payable | 149,112 |
Accumulated deficit was increased by amount | $ 149,112 |
MY$/J<8AU^`Y-JT?<&\;&)$S"7-51`\'K<@_`U_`L
M.;._*_.#8*FFU X0YB=KILKR)K2]S7SB__K?(KN/\QHTRG:)QDW(;=Y?1P2)LAK/4K
M