Restatements (Tables)

9 Months Ended

Sep. 30, 2012

Restatement Of Prior Year Income [Abstract]

Schedule of Condensed Balance Sheet [Table Text Block]

This Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2012 incorporates corrections made in response to the accounting errors described above by restating our consolidated balance sheet as of December 31, 2011 and our consolidated financial statements presented herein for the comparative periods of September 30, 2011.

Effect on Consolidated Balance Sheet

December 31, 2011

	As Previously
	Reported on
	Form 10-K/A			Adjustments			Restated
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	1,175,462					$	1,175,462
Accrued liabilities		359,715						359,715
Convertible revolving credit facility, net of discounts		160,794						160,794
Derivative liability - conversion option		113,271						113,271
Derivative liability - warrants		1,875,463						1,875,463
Derivative liability - bonus warrants		-			797,185	(e)		70,343
					(492,111	)(f)
					(234,731	)(g)
Convertible debt		566,785			600,000	(a)		772,500
					(394,285	)(b)
Total current liabilities		4,251,490			276,058			4,527,548
Fair value of 10% convertible preferred stock warrants		487,555						487,555
Total liabilities		4,739,045			276,058			5,015,103
Commitments and contingencies
10% Convertible preferred stock, no par value; authorized 880,000 shares;  752,273 issued and outstanding at December 31, 2011, net of discount		5,520,256						5,520,256
Redeemable common stock, no par value; 250,000 shares issued and outstanding at December 31, 2011		242,500						242,500
Stockholders' deficit:
Common stock, no par value; authorized, 100,000,000 shares; 25,007,261 shares issued and outstanding at December 31, 2011		23,660,071			1,350,000	(d)		24,410,071
					(600,000	)(a)
					(234,731	)(c)
					234,731	(g)
Accumulated deficit		(28,619,876	)		(1,350,000	)(d)		(29,645,934	)
					394,285	(b)
					(797,185	)(e)
					492,111	(f)
					234,731	(c)
Total stockholders' deficit		(4,959,805	)		(276,058	)		(5,235,863	)
Total liabilities and stockholders' deficit	$	5,541,996		$	-		$	5,541,996

(a) - to reverse the improper recording of debt discount.

(b) - to reverse the improper recording of and amortization of debt discount.

(c) - to reverse the improper recording of the fair value of bonus warrants at issuance.

(d) - to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

(e) - to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

(f) - to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants at period end.

(g) - to record the fair value of bonus warrants at date of issuance.

Effect on Consolidated Balance Sheet

September 30, 2011

	As Previously
	Reported on
	Form 10-Q/A			Adjustments			Restated
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	1,097,637					$	1,097,637
Accrued liabilities		275,608						275,608
Notes payable		50,640						50,640
Derivative liability - warrants		2,396,300						2,396,300
Derivative liability - bonus warrants		-			797,185	(e)		181,903
					(428,260	)(f)
					(187,022	)(g)
Convertible debt		463,928			600,000	(a)		772,500
					(291,428	)(b)
Total current liabilities		4,284,113			490,475			4,774,588
Fair value of 10% convertible preferred stock warrants		487,555						487,555
Total liabilities		4,771,668			490,475			5,262,143
Commitments and contingencies
10% Convertible preferred stock, no par value; authorized 880,000 shares; 759,773 shares issued and outstanding at September 30, 2011, net of discount		6,594,341						6,594,341
Stockholders' deficit:
Common stock, no par value; authorized, 100,000,000 shares; 24,947,261 shares issued and outstanding at September 30, 2011		22,256,845			1,350,000	(d)		23,006,845
					(600,000	)(a)
					(187,022	)(c)
					187,022	(g)
Accumulated deficit		(27,656,776	)		(1,350,000	)(d)		(28,897,251	)
					291,428	(b)
					(797,185	)(e)
					428,260	(f)
					187,022	(c)
Total stockholders' deficit		(5,399,931	)		(490,475	)		(5,890,406	)
Total liabilities and stockholders' deficit	$	5,966,078		$	-		$	5,966,078

(a) - to reverse the improper recording of debt discount.

(b) - to reverse the improper amortization of debt discount.

(c) - to reverse the improper recording of the fair value of bonus warrants at issuance.

(d) - to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

(e) - to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

(f) - to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants at period end.

(g) - to record the fair value of bonus warrants at date of issuance.

Schedule of Condensed Income Statement [Table Text Block]

Effect on Consolidated Statement of Operations

for the Three Months Ended September 30, 2011

	As Previously
	Reported on
	Form 10-Q/A			Adjustments			Restated
Loss from operations	$	(1,430,518	)				$	(1,430,518	)
Other expenses:
Interest expense		26,714						26,714
Amortization of debt discounts		244,858			(102,857	)(a)		69,029
					(72,972	)(b)
Change in fair value of derivative liabilities		2,396,300			(68,699	)(c)		2,327,601
Total other expenses		2,667,872			(244,528	)		2,423,344
Net loss		(4,098,390	)		244,528			(3,853,862	)
Accretion of preferred dividends and beneficial conversion feature		(207,097	)					(207,097	)
Net loss attributable to common shareholders	$	(4,305,487	)	$	244,528		$	(4,060,959	)
Weighted average common shares - basic and diluted		24,715,584			24,715,584			24,715,584
Basic and diluted net loss per share	$	(0.17	)	$	0.01		$	(0.16	)

(a) - to reverse the improper amortization of debt discount.

(b) - to reverse the impact of the improper recording of the fair value of the Bonus Warrants upon issuance.

(c) - to recognize the gain on the change in the fair value of the derivative liability associated with the Bonus Warrants at period end.

Effect on Consolidated Statement of Operations

for the Nine Months Ended September 30, 2011

	As Previously
	Reported on
	Form 10-Q/A			Adjustments			Restated
Loss from operations	$	(5,539,143	)				$	(5,539,143	)
Other expenses:
Interest expense		123,818						123,818
Amortization of debt discounts		914,907			(291,428	)(a)		436,457
					(187,022	)(b)
Loss on debt extinguishment					1,350,000	(c)		1,350,000
Fair value of bonus warrants at debt extinguishment					797,185	(d)		797,185
Change in fair value of derivative liabilities		2,396,300			(428,260	)(e)		1,968,040
Total other expenses		3,435,025			1,240,475			4,675,500
Net loss		(8,974,168	)		(1,240,475	)		(10,214,643	)
Accretion of preferred dividends and beneficial conversion feature		(414,653	)					(414,653	)
Net loss attributable to common shareholders	$	(9,388,821	)	$	(1,240,475	)	$	(10,629,296	)
Weighted average common shares - basic and diluted		24,091,129			24,091,129			24,091,129
Basic and diluted net loss per share	$	(0.39	)	$	(0.05	)	$	(0.44	)

(a) - to reverse the improper amortization of debt discount.

(b) - to reverse the impact of the improper recording of the fair value of the Bonus Warrants upon issuance.

(c)- to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt at the amendment date.

(d)- to record the fair value of the bonus warrants as of the amendment date as a component of the reacquisition price of the new debt.

(e)- to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants at period end.

Schedule of Condensed Cash Flow Statement [Table Text Block]

Effect on Consolidated Statement of Cash Flows

for the Nine Months Ended September 30, 2011

	As Previously
	Reported on
	Form 10-Q/A			Adjustments			Restated
Cash flow from operating activities:
Net income (loss)	$	(8,974,168	)	$	(1,240,475	)	$	(10,214,643	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of convertible debt discount		589,830			(291,428	)(a)		298,402
Loss on debt extinguishment		-			1,350,000	(b)		1,350,000
Fair value of bonus warrants at debt extinguishment		-			797,185	(c)		797,185
Change in fair value of derivative liabilities - Bonus Warrants		-			(428,260	)(e)		(428,260	)
Share-based compensation		3,026,954			(187,022	)(d)		2,839,932
Net cash used in operating activities	$	(4,095,828	)	$	-		$	(4,095,828	)

(a) - to reverse the improper amortization of debt discount.

(b) - to record the difference between the reacquisition price of the new debt and the net carrying amount of the extinguished debt, at amendment date.

(c) - to record the fair value of the bonus warrants as of the amendment date as a component of the reacuisition price of the new debt.

(d) - to reverse the impact of the improper recording of the fair value of the bonus warrants upon issuance.

(e) - to recognize the gain on the change in the fair value of the derivative liability associated with the bonus warrants at period end.