Securities Option Agreement, Secured Convertible Debentures, Senior Debentures and Demand Notes (Tables)

6 Months Ended

Jun. 30, 2013

The carrying values our senior debentures and demand notes consisted of the following as of June 30, 2013 and December 31, 2012:

	June 30,		December 31,
	2013		2012

2,000,000 face value 12% debenture, due December 31, 2013	$	2,485,486	$	2,398,153
$3,500,000 face value 12% debenture, due December 31, 2013		4,138,468		3,993,053
$5,266,130 face value 12% debenture, due December 31, 2013		6,606,256		6,374,130
$ 500,000 face value 10% debenture, due December 31, 2013		500,000		500,000
$ 500,000 face value 10% debenture, due December 31, 2013		500,000		500,000
$ 450,000 face value 10% debenture, due December 31, 2013		450,000		450,000
$1,150,000 advances on 10% debenture, due December 31, 2013		1,150,000		1,150,000
	$	15,830,210	$	15,365,336

Demand notes	$	524,087	$	275,000
5% Convertible Notes		300,000		-
Demand and 5% Convertible Notes	$	824,087	$	275,000

Schedule of Financing Transactions to Debentures and Warrants Based upon their Relative Fair Values [Table Text Block]

We allocated the gross proceeds from the financing transactions to the debentures and the warrants based upon their relative fair values, as reflected in the following table:

September 30, 2011 Financing Arrangement	Fair Values		Relative Fair Values
$3,500,000 face value of debentures	$	3,560,675	$	1,695,404
Warrants to purchase 10,000,000 shares of common stock		3,790,000		1,804,596
	$	7,350,675	$	3,500,000

August 8, 2011 Financing Arrangement	Fair Values		Relative Fair Values
$2,000,000 face value of debentures	$	2,127,063	$	721,642
Warrants to purchase 8,000,000 shares of common stock		3,768,000		1,278,358
	$	5,895,063	$	2,000,000

June 30, 2011 Financing, Debt Settlement, and Accrued Interest Settlement

We allocated the gross proceeds from the financing transaction to the debentures and the warrants based upon their relative fair values, as reflected in the following table:

	Fair Values		Relative Fair Values
$5,000,000 face value of debentures	$	5,340,195	$	2,029,536
Warrants to purchase 20,000,000 shares of common stock		7,816,000		2,970,464
	$	13,156,195	$	5,000,000

Schedule of Extinguishment of Debt [Table Text Block]

The difference between these amounts and the carrying value of the settled obligation was recorded as an extinguishment loss in our income, as follows:

	Extinguishment Calculation
$266,130 face value of debentures	$	284,238
Warrants to purchase 1,064,520 shares of common stock		416,014
		700,252
Carrying value of settled obligation		266,130
Extinguishment loss	$	434,122