Restricted Cash

9 Months Ended

Sep. 30, 2013

Cash and Cash Equivalents [Abstract]

Restricted Cash

NOTE 2: RESTRICTED CASH

On September 4, 2013, the Company executed three Stock Purchase Agreements and sold 10,000,000 shares of common stock to three different foreign investors under the DPO filing at $0.10 per share or $3,000,000, per the DPO. The Company appointed Elco Securities, Ltd. to oversee the transaction. The Stock Purchase Agreement was completed and the funds were transferred into the Company’s offshore Bahamian Cash account on September 30, 2013. This Restricted cash account is not covered by the FDIC in the United States of America which represents offshore banking credit risk.

On September 4, 2013, the Company entered a Unit Subscription Agreement and an Account Management Agreement with nine oversea investors. The Unit Subscription Agreement issued a total of 30,222 newly designated shares of preferred stock, which are convertible to common stock totaling 101,258,100 common stock warrants to nine foreign investors for a total investment of $40,642,069 with an average Price of $1.42. The common stock warrants have an average exercisable price of $1.42 per common share. Under the Account Management Agreement, investors under the Unit Subscription Agreement and Company have appointed Elco Securities, Ltd. as intermediary to monitor and enforce the Use of Proceeds. (See Note 6).

On October 4, 2013, the offering was completed and $40,642,069 became available to the Company under the Account Management Agreement and have been recorded in the Restricted cash account.