Document and Entity
Information
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3 Months Ended | |
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Mar. 31, 2013
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May 09, 2013
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Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2013 | |
Entity Registrant Name | VIRTUAL PIGGY, INC. | |
Entity Central Index Key | 0001437283 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2013 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 102,702,363 |
Balance Sheets (Parenthetical)
(USD $)
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Mar. 31, 2013
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Dec. 31, 2012
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Balance Sheets [Abstract] | ||
Patents and trademarks, accumulated amoritization | $ 19,047 | $ 13,678 |
Preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 102,675,842 | 101,417,508 |
Common stock, shares outstanding | 102,675,842 | 101,417,508 |
Statements of Operations (USD
$)
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3 Months Ended | 62 Months Ended | |
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Mar. 31, 2013
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Mar. 31, 2012
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Mar. 31, 2013
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Statements of Operations [Abstract] | |||
SALES | $ 88 | $ 1,168 | $ 5,227 |
OPERATING EXPENSES | |||
Payroll | 1,093,979 | 206,976 | 4,254,048 |
Consulting | 289,744 | 641,849 | 8,593,423 |
Marketing | 287,633 | 200,978 | 1,153,956 |
Research and development | 175,144 | 86,606 | 1,586,896 |
Travel | 247,479 | 87,768 | 1,687,960 |
Professional fees | 231,895 | 144,913 | 1,834,852 |
General and administrative | 361,220 | 140,200 | 2,531,993 |
Total operating expenses | 2,687,094 | 1,509,290 | 21,643,128 |
OTHER INCOME (EXPENSE) | |||
Interest income | 3,489 | 317 | 12,144 |
Interest expense | (37,106) | (531,834) | |
Total other income (expense) | 3,489 | (36,789) | (519,690) |
NET LOSS | $ (2,683,517) | $ (1,544,911) | $ (22,157,591) |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | $ (0.03) | $ (0.02) | |
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 101,792,509 | 70,042,470 |
SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
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3 Months Ended | ||||||||
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Mar. 31, 2013
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of the Business
Virtual Piggy, Inc. ("the Company") is a development stage
enterprise incorporated in the state of Delaware on February 11,
2008. Virtual Piggy is a technology company that
delivers an online e-commerce solution for the family. Its system
allows parents and their children to manage, allocate funds and
track their expenditures, savings and charitable giving online. Its
system is designed to allow the child to transact online without a
credit card by gaining the parent's permission ahead of time and
allowing the parent to set up the rules of use and authorized
spending limits.
The Virtual Piggy product enables online businesses to interact and
transact with the "Under 18" market in a manner consistent with the
Children's Online Privacy Protection Act ("COPPA") and other
similar international children's privacy laws. Virtual
Piggy was launched in the US in 2012 and was launched in the
European market in 2013.
The Company has secured merchant agreements with over 80 merchants
in the US to deploy Virtual Piggy on their
websites. Over 20 of these merchants are using Virtual
Piggy live with their e-commerce systems and the Company is in the
process of integrating the other signed merchants. The Company is
continuing to add merchants. In addition, Virtual Piggy has the
capability to offer and deliver digital gift cards.
Basis of Presentation
The financial statements are presented in accordance with Financial
Accounting Standards Board Accounting Standards Codification ("FASB
ASC") 915 for development stage entities.
Use of Estimates
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from
these estimates.
Comprehensive Income
The Company follows FASB ASC 220 in reporting comprehensive
income. Comprehensive income is a more inclusive
financial reporting methodology that includes disclosure of certain
financial information that historically has not been recognized in
the calculation of net income. Since the Company has no
items of other comprehensive income (loss), comprehensive income
(loss) is equal to net income (loss).
Fair Value of Financial Instruments
The Company's financial instruments consist of cash, accounts
receivable and accounts payable and accrued
expenses. The carrying value of cash, accounts
receivable and accounts payable and accrued expenses approximate
fair value, because of their short maturity.
Concentration of Credit Risk Involving Cash
The Company may have deposits with a financial institution which at
times exceed Federal Depository Insurance coverage of
$250,000.
Cash and Cash Equivalents
For purposes of reporting cash flows, the Company considers all
cash accounts, which are not subject to withdrawal restrictions or
penalties, and certificates of deposit and commercial paper with
original maturities of 90 days or less to be cash or cash
equivalents.
Property and Equipment
Property and equipment are stated at cost less accumulated
depreciation and any impairment losses. Expenditures for
new equipment and major expenditures for existing equipment are
capitalized and depreciation using the straight line method at
rates sufficient to depreciate such costs over the estimated
productive lives. All other ordinary repair and
maintenance costs are expensed as incurred.
The Company's depreciation and amortization policies on property
and equipment are as follows:
Recoverability of Long-Lived Assets
In accordance with Financial Accounting Standards Board ("FASB")
Accounting Standards Codification ("ASC") 360-10-35 "Impairment or Disposal
of Long-lived Assets", long-lived assets to be held and used
are analyzed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not
be fully recoverable or that the useful lives of those assets are
no longer appropriate. The Company evaluates at each balance sheet
date whether events and circumstances have occurred that indicate
possible impairment.
The Company determines the existence of such impairment by
measuring the expected future cash flows (undiscounted and without
interest charges) and comparing such amount to the carrying amount
of the assets. An impairment loss, if one exists, is then measured
as the amount by which the carrying amount of the asset exceeds the
discounted estimated future cash flows. Assets to be disposed of
are reported at the lower of the carrying amount or fair value of
such assets less costs to sell. Asset impairment charges are
recorded to reduce the carrying amount of the long-lived asset that
will be sold or disposed of to their estimated fair values. Charges
for the asset impairment reduce the carrying amount of the
long-lived assets to their estimated salvage value in connection
with the decision to dispose of such assets.
For the three-month period ended March 31, 2013 and 2012, the
Company determined that no impairment was required after going
through the impairment testing to the operating long-lived assets
(property and equipment and patents and trademarks).
Revenue Recognition
In accordance with Securities and Exchange Commission ("SEC") Staff
Accounting Bulletin ("SAB") No. 104, Revenue
Recognition (Codified in FASB ASC 605), the Company will
recognize revenue when (i) persuasive evidence of a customer or
distributor arrangement exists or acceptance occurs, (ii) a
retailer, distributor or wholesaler receives the goods, (iii) the
price is fixed or determinable, and (iv) collectability of the
sales revenues is reasonably assured. Subject to these criteria,
the Company will generally recognize revenue at the time of the
sale of the associated product.
Income Taxes
The Company follows FASB ASC 740 when accounting for income taxes,
which requires an asset and liability approach to financial
accounting and reporting for income taxes. Deferred
income tax assets and liabilities are computed annually for
temporary differences between the financial statements and tax
bases of assets and liabilities that will result in taxable or
deductible amounts in the future based on enacted tax laws and
rates applicable to the periods in which the differences are
expected to affect taxable income. Valuation allowances
are established when necessary to reduce deferred tax assets to the
amount expected to be realized. Income tax expense is
the tax payable or refundable for the period plus or minus the
change during the period in deferred tax assets and
liabilities. Tax years from 2008 through 2012 remain
subject to examination by major tax jurisdictions.
Loss Per Share
The Company follows FASB ASC 260 when reporting Earnings Per Share
resulting in the presentation of basic and diluted earnings per
share. Because the Company reported a net loss for the
three months ended March 31, 2013 and 2012, common stock
equivalents, including stock options and warrants were
anti-dilutive; therefore, the amounts reported for basic and
dilutive loss per share were the same.
Start-up Costs
In accordance with FASB ASC 720, start-up costs
are expensed as incurred.
Research and Development Costs
In accordance with FASB ASC 730, research and development costs are
expensed when incurred.
Recently Adopted Accounting Pronouncements
In July 2012, the FASB issued ASU No. 2012-02, Intangibles - Goodwill
and Other (Topic 350), Testing Indefinite-Lived Intangible Assets
for Impairment. In accordance with the amendments in this
Update, an entity has the option first to assess qualitative
factors to determine whether the existence of events and
circumstances indicates that it is more likely than not that the
indefinite-lived intangible asset is impaired. If, after assessing
the totality of events and circumstances, an entity concludes that
it is not more likely than not that the indefinite-lived intangible
asset is impaired, then the entity is not required to take further
action. However, if an entity concludes otherwise, then it is
required to determine the fair value of the indefinite-lived
intangible asset and perform the quantitative impairment test by
comparing the fair value with the carrying amount in accordance
with Subtopic 350-30. The amendments are effective for annual and
interim impairment tests performed for fiscal years beginning after
September 15, 2012. The Company adopted the amendments effective
January 1, 2013 and their adoption did not have a material impact
on the financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted
As of March 31, 2013, there are no recently issued accounting
standards not yet adopted which would have a material effect on the
Company's financial statements.
Reclassifications
Certain amounts in the 2012 financial statements have been
reclassified in order for them to be in conformity with the 2013
presentation.
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GOING CONCERN
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3 Months Ended |
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Mar. 31, 2013
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GOING CONCERN [Abstract] | |
GOING CONCERN |
NOTE 2 - GOING CONCERN
The accompanying financial statements have been prepared assuming
that the Company will continue as a going concern. The
Company has incurred significant losses and experienced negative
cash flow from operations during the development
stage. These conditions raise substantial doubt about
the Company's ability to continue as a going
concern. The financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.
Since inception, the Company has focused on developing and
implementing its business plan. The Company has
begun to pay salaries to management and has
utilized offshore programmers on a work for hire
basis to assist in developing the demonstration model. The
Company believes that its existing cash resources will not be
sufficient to sustain operations during the next twelve months.
The
Company currently needs to generate revenue in order to sustain its
operations. In the event that the Company cannot
generate sufficient revenue to sustain its operations, the Company
will need to reduce expenses or obtain financing through the sale
of debt and/or equity securities. The issuance of
additional equity would result in dilution to existing
shareholders. If the Company is unable to obtain
additional funds when they are needed or if such funds cannot be
obtained on terms acceptable to the Company, the Company may be
unable to execute upon the business plan or pay costs and expenses
as they are incurred, which could have a material, adverse effect
on the business, financial condition and results of
operations.
The Company's current monetization model is to derive a percentage
of all revenues generated by online merchants using the Virtual
Piggy service. Merchants are billed at the end of each month for
all transactions that have been processed by the Company on their
behalf in the prior month. As the merchant base and
consumer base grows, and as the trend to higher online spending
levels continues, the Company expects to generate additional
revenue to support operations.
If sufficient revenues are not generated to sustain operations or
additional funding cannot be obtained in the short term, the
Company will need to reduce monthly expenditures to a level that
will enable the Company to continue until such funds can be
obtained. The Company raised $900,000, net of stock
issuance costs of $60,783 through a private placement of its equity
securities from January 1, 2013 through March 31,
2013.
The Company is in the development stage at March 31,
2013. Successful completion of the Company's development
program, and the attainment of profitable operations are dependent
upon future events, including obtaining adequate financing to
fulfill its development activities and achieving a level of sales
adequate to support the Company's cost structure. The
Company is currently contemplating a $5 million private placement
offering. However, there can be no assurances that the
Company will be able to secure additional equity investment or
achieve an adequate sales level.
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PATENTS
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3 Months Ended |
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Mar. 31, 2013
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PATENTS [Abstract] | |
PATENTS |
NOTE 3 - PATENTS
The Company continues to apply for patents. Accordingly,
costs associated with the registration of these patents have been
capitalized and are amortized on a straight-line basis over the
estimated lives of the patents (20 years). At March 31,
2013 and 2012, unamortized capitalized patent costs were $467,919
and $154,593. Amortization expense for patents was
$5,265 and $1,054 for the three months ended March 31, 2013 and
2012.
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NOTES PAYABLE
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3 Months Ended |
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Mar. 31, 2013
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NOTES PAYABLE [Abstract] | |
NOTES PAYABLE |
NOTE 4 - NOTES PAYABLE
In September 2011, the Company commenced a private placement of up
to 10 units at a price of $50,000 per unit to accredited
investors. One unit consisted of a demand note payable
in the amount of $50,000 due November 12, 2012, warrants to
purchase 15,000 shares of common stock at an exercise price of $.50
per share with a term expiring November 12, 2012, and 15,000 shares
of common stock. In December 2011, the Company completed
the private placement and raised $500,000. The warrants
were valued at $20,930, fair value, using the Black-Scholes option
pricing model to calculate the grant-date fair value of the
options, with the following assumptions: no dividend yield,
expected volatility of 39.8% to 62.8%, risk free interest rate of
.1% and expected option life of 1.2 years. The shares of
common stock were valued at $82,655 or $.45 to $.70 per share, fair
value. Both the warrant value and the shares of common
stock were treated as a discount to the value of the note payable
in accordance with FASB ASC 835-30-25, Recognition and
are being accreted over the term of the note payable for financial
statement purposes. During the years ended December 31,
2012 and 2011, $65,560 and $38,035 of interest was accreted on the
notes payable. As of December 31, 2011, $150,000 of the
$500,000 was repaid.
On February 8, 2012, February 27, 2012, and April 10, 2012,
$100,000, $50,000, and $25,000 respectively, of the notes payable
were repaid. On April 26, 2012 , the remaining balance
of the notes payable and accrued interest of $25,000 was converted
into 571,428 shares of the Company's common stock and warrants to
purchase 285,714 shares of the Company's common stock.
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INCOME TAXES
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3 Months Ended |
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Mar. 31, 2013
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INCOME TAXES [Abstract] | |
INCOME TAXES |
NOTE 5 - INCOME TAXES
Income tax expense was $0 for the three months ended March 31, 2013
and 2012.
As of January 1, 2013, the Company had no unrecognized tax
benefits, and accordingly, the Company did not recognize interest
or penalties during 2013 related to unrecognized tax
benefits. There has been no change in unrecognized tax
benefits during the three months ended March 31, 2013, and there
was no accrual for uncertain tax positions as of March 31,
2013. Tax years from 2008 through 2012 remain subject to
examination by major tax jurisdictions.
There is no income tax benefit for the losses for the three months
ended March 31, 2013 and 2012, since management has determined that
the realization of the net tax deferred asset is not assured and
has created a valuation allowance for the entire amount of such
benefits.
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LITIGATION SETTLEMENT
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3 Months Ended |
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Mar. 31, 2013
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LITIGATION SETTLEMENT [Abstract] | |
LITIGATION SETTLEMENT |
NOTE 6 - LITIGATION SETTLEMENT
In December 2012, the Company entered into a settlement agreement
with an investor, whereby the Company would pay the investor
$450,000 in return for the investor returning warrants issued to
the investor. The Company received $75,000 from its
insurance carrier with respect to this litigation and the $450,000
settlement was paid in January 2013.
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STOCKHOLDERS' EQUITY
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3 Months Ended |
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Mar. 31, 2013
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STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY |
NOTE 7 - STOCKHOLDERS' EQUITY
In December 2011, the Company commenced a private placement of up
to $5,000,000 consisting of up to 12,500,000 shares of the
Company's common stock and two year warrants to purchase up to
6,250,000 shares of the Company's common stock at an exercise price
of $0.50. The shares and warrants were sold in units
with each unit comprised of two shares and one warrant at a
purchase price of $.80 per unit. During December 2011,
the Company sold 625,000 units and raised $500,000. On
January 11, 2012, the Company amended the Securities Purchase
Agreement dated December 1, 2011, by reducing the price of one unit
from $.80 to $.70. This increased the number of units to
be sold from 6,250,000 units to 7,142,858 units. It also
required the Company to issue to one investor an additional 89,286
units, consisting of 178,572 shares common stock and warrants to
purchase an additional 89,286 shares of common
stock. During the three months ended March 31, 2012, the
Company issued an additional 3,922,356 units and raised $2,717,650,
net of stock issuance costs of $28,000.
On April 5, 2012, the Company commenced a private placement of up
to $3,500,000 consisting of up to 10,000,000 shares of the
Company's common stock and two year warrants to purchase up to
5,000,000 shares of the Company's common stock at an exercise price
of $.50 per share. The shares and warrants were sold in
units with each unit comprised of two shares and one warrant at a
purchase price of $.70 per unit. In accordance with the
terms of the offering documents, the offering amount was increased
to $4 million. From April 5, 2012 to June 30, 2012, the
Company sold 6,201,831 units and raised $4,341,282.
On April 2, 2012, the Company entered into a settlement agreement
with a former consultant of the Company. In connection with the
settlement, the Company made a settlement payment to the consultant
of $30,000 and issued the consultant 350,000 shares of the
Company's common stock, which were valued at $297,500, fair value,
or $.85 per share.
On April 10, 2012, a company owned by the Company's Secretary and
his wife exercised 250,000 options which raised proceeds of
$10,000.
On May 2, 2012, the Company entered into a securities purchase
agreement with a non-U.S. person, pursuant to which the Company
issued and sold 187,500 units at a purchase price of $0.80 per
unit, in consideration of gross proceeds of
$150,000. Each unit consisted of: (i) two shares of the
Company's common stock, (ii) a warrant to purchase one share of the
Company's common stock at an exercise price of $0.50 per share for
a term of two years, and (iii) a warrant to purchase one half share
of the Company's common stock at an exercise price of $1.00 per
share for a term of three years. Pursuant to the
securities purchase agreement, the purchaser also agreed to
purchase an additional $850,000 of units by November 1,
2012. The Company received the final $50,000 during
March 2013 and has received the full $1,000,000 as of March 31,
2013 under this agreement.
On May 21, 2012, the Company issued five consultants an aggregate
of 1,363,185 shares of the Company's common stock for services,
which were valued in the aggregate at $3,312,537, fair value or
$2.43 per share, which was the stock price on the day of
issuance.
On May 25, 2012, an investor exercised 350,000 options which raised
proceeds of $14,000.
On July 5, 2012, the Company commenced a private placement of up to
$100,000 consisting of up to 125,000 units of the Company's common
stock and warrants to purchase up to 125,000 shares of the
Company's common stock at an exercise price of $.50 per share with
a term of two years ("Series A Warrants") and warrants to purchase
up to 62,500 at an exercise price of $1.00 per share with a term of
three years ("Series B Warrants"). The shares and
warrants will be sold in units with each unit comprised of two
shares and one Series A warrant and one Series B warrant at a
purchase price of $.80 per unit. As of August 8, 2012,
the Company has received gross proceeds of $100,000 under this
private placement.
During November and December 2012, the Company entered into private
placements for shares of the Company's common stock. The
shares were sold at a purchase price of $.70 per
share. Through December 31, 2012, 7,942,858 shares were
sold raising $5,560,000.
In December 2012, the Company entered into private placements for
shares of the Company's common stock. The shares were sold at a
purchase price of $.75 per share. Through December 31,
2012, 666,667 shares were sold raising $500,000.
During the first quarter of 2013, the Company entered into private
placements for shares of the Company's common stock. The shares
were sold at a purchase price of $.75 per share. Through
March 31, 2013, 1,133,334 shares were sold raising $850,000.
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STOCK OPTIONS AND WARRANTS
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Mar. 31, 2013
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STOCK OPTIONS AND WARRANTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK OPTIONS AND WARRANTS |
NOTE 8 - STOCK OPTIONS AND WARRANTS
During 2008, the Board of Directors ("Board") of the Company
adopted an Equity Incentive Plan ("Plan") that was approved by the
shareholders. Under the Plan, the Company is authorized
to grant options to purchase up to 25,000,000 shares of common
stock to any officer, other employee or director of, or any
consultant or other independent contractor who provides services to
the Company. The Plan is intended to permit stock
options granted to employees under the Plan to qualify as incentive
stock options under Section 422 of the Internal Revenue Code of
1986, as amended ("Incentive Stock Options"). All
options granted under the Plan, which are not intended to qualify
as Incentive Stock Options are deemed to be non-qualified options
("Non-Statutory Stock Options"). As of March 31, 2013,
15,290,000 options have been issued and are unexercised, and
110,000 options are available to be issued under the
Plan.
During 2013, the Board of Directors ("Board") of the Company
adopted the 2013 Equity Incentive Plan ("2013
Plan"). Under the 2013 Plan, the Company is authorized
to grant options, restricted stock and other equity-linked awards
up to 5,000,000 shares of common stock to any officer, other
employee or director of, or any consultant or other independent
contractor who provides services to the Company. The
2013 Plan is intended to permit stock options granted to employees
under the 2013 Plan to qualify as incentive stock options under
Section 422 of the Internal Revenue Code of 1986, as amended
("Incentive Stock Options"). All options granted under
the 2013 Plan, which are not intended to qualify as Incentive Stock
Options are deemed to be non-qualified options ("Non-Statutory
Stock Options"). As of March 31, 2013, 2,027,500 options
have been issued and are unexercised, and 2,972,500 shares are
available to be issued under the Plan.
The Plans are administered by the Board, which determines the
persons to whom awards will be granted, the number of awards to be
granted, and the specific terms of each grant, including the
vesting thereof, subject to the terms of the Plan.
In connection with Incentive Stock Options, the exercise price of
each option may not be less than 100% of the fair market value of
the common stock on the date of the grant (or 110% of the fair
market value in the case of a grantee holding more than 10% of the
outstanding stock of the Company).
Volatility in all instances presented is the Company's estimate of
volatility that is based on the volatility of other public
companies that are in closely related industries to the
Company.
On January 27, 2012, the Company issued an employee an option to
purchase 30,000 shares of the Company's common stock at $.52 per
share. These options have been valued at $3,718, fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 25.4%, risk free interest rate of 0.8% and expected option life
of five years. The options expire five years from the
date of issuance. Options granted are expensed over the
three year vesting term.
On February 28, 2012, the Company issued an employee an option to
purchase 25,000 shares of the Company's common stock at $.58 per
share. These options have been valued at $3,120, fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 25.0%, risk free interest rate of .8% and expected option life
of five years. The options expire five years from the
date of issuance. Options granted are expensed over the
three year vesting term.
On March 2, 2012, the Company issued a Board Member an option to
purchase 250,000 shares of the Company's common stock at $.58 per
share. These options have been valued at $33,975, fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 25.9%, risk free interest rate of .9% and expected option life
of five years. The options expire five years from the
date of issuance. Options granted are expensed
immediately.
On March 5, 2012, the Company issued an employee an option to
purchase 25,000 shares of the Company's common stock at $.58 per
share. These options have been valued at $2,680, fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 25.0%, risk free interest rate of .9% and expected option life
of five years. The options expire five years from the
date of issuance. Options granted are expensed over the
three year vesting term.
On March 31, 2012, the Company issued five employees, options to
purchase 4,010,000 shares in the aggregate of the Company's common
stock at $.65 per share. These options have been valued
at $759,810, fair value. The Company uses the
Black-Scholes option pricing model to calculate the grant-date fair
value of the options, with the following assumptions: no dividend
yield, expected volatility of 31.2%, risk free interest rate of
1.04% and expected option life of five years. The
options expire five years from the date of
issuance. Options granted are expensed over the three
year vesting term.
In April 2012, the Company issued six employees options to purchase
an aggregate of 80,000 shares of the Company's common stock at
exercise prices ranging from $.65 to $.97 per
share. These options were valued at $17,310 fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 30.2% to 33.4%, risk free interest rate of .82% to 1.04% and
expected option life of five years. The options expire
five years from the date of issuance. Options granted
will be expensed over the three year vesting term.
In June 2012, the Company issued three employees and one board
member options to purchase an aggregate of 470,000 shares of the
Company's common stock at exercise prices ranging from $1.53 to
$1.82 per share. These options were valued at $217,293,
fair value. The Company uses the Black-Scholes option
pricing model to calculate the grant-date fair value of the
options, with the following assumptions: no dividend yield,
expected volatility of 30.3% to 35.5%, risk free interest rate of
.68% to .72% and expected option life of five years. The
options expire five years from the date of
issuance. Options granted will be expensed over the
three year vesting term or immediately if there is no vesting
term.
In July 2012, the Company issued one employee options to purchase
an aggregate of 15,000 shares of the Company's common stock at an
exercise price of $1.23 per share. These options were
valued at $5,493 fair value. The Company uses the
Black-Scholes option pricing model to calculate the grant-date fair
value of the options, with the following assumptions: no dividend
yield, expected volatility of 32.9%, risk free interest rate of
.61% and expected option life of five years. The options
expire five years from the date of issuance. Options
granted will be expensed over the three year vesting term.
In August 2012, the Company issued seven employees options to
purchase an aggregate of 380,000 shares of the Company's common
stock at exercise prices ranging from $1.26 to $1.43 per
share. These options were valued at $123,381, fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 23.5% to 29.1%, risk free interest rate of .63% to .69% and
expected option life of five years. The options expire
five years from the date of issuance. Options granted
will be expensed over the three year vesting term.
In September 2012, the Company issued one employee options to
purchase 75,000 shares of the Company's common stock at an exercise
price of $1.54 per share. These options were valued at
$26,303, fair value. The Company uses the Black-Scholes
option pricing model to calculate the grant-date fair value of the
options, with the following assumptions: no dividend yield,
expected volatility of 24.5%, risk free interest rate of .62% and
expected option life of five years. The options expire
five years from the date of issuance. Options granted
will be expensed over the three year vesting term or immediately if
there is no vesting term.
In October 2012, the Company issued one employee options to
purchase 75,000 shares of the Company's common stock at an exercise
price of $1.35 per share. These options were valued at
$23,263 fair value. The Company uses the Black-Scholes
option pricing model to calculate the grant-date fair value of the
options, with the following assumptions: no dividend yield,
expected volatility of 24.5%, risk free interest rate of .70% and
expected option life of five years. The options expire
five years from the date of issuance. Options granted
will be expensed over the three year vesting term.
In November 2012, the Company issued fourteen employees options to
purchase an aggregate of 1,295,000 shares of the Company's common
stock at exercise prices between $1.01 and $1.35 per
share. These options were valued at $371,313, fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
between 26.1% and 29.3%, risk free interest rate between .76% and
.83% and expected option life of five years. The options
expire five years from the date of issuance. Options
granted will be expensed over the three year vesting term.
In March 2008, the Company issued 4,500,000 options to three
directors. On January 24, 2013, the expiration date for
unexpired and unexercised options of 4,250,000 was extended from
March 3, 2013 to March 3, 2015. The incremental increase in
value was $780, which was expensed immediately.
In January 2013, the Company issued eighteen employees options to
purchase an aggregate of 260,000 shares of the Company's common
stock at exercise prices between $0.99 and $1.05 per
share. These options were valued at $62,662 fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
between 23.3% and 26.1%, risk free interest rate between .78% and
.89% and expected option life of five years. The options
expire five years from the date of issuance. Options
granted will be expensed over the three year vesting term.
In February 2013, the Company issued four employees options to
purchase an aggregate of 760,000 shares of the Company's common
stock at exercise prices between $1.07 and $1.21 per
share. These options were valued at $199,843 fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
between 22.5% and 25.1%, risk free interest rate between .78% and
.88% and expected option life of five years. The options
expire five years from the date of issuance. Options
granted will be expensed over the three year vesting term.
In March 2013, the Company issued an employee options to purchase
2,500 shares of the Company's common stock at an exercise price of
$1.36 per share. These options were valued at $728 fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 22.5%, risk free interest rate of .76% and expected option life
of five years. The options expire five years from the
date of issuance. Options granted will be expensed over
the three year vesting term.
Cumulatively and for the three months ended March 31, 2013 and
2012, the Company expensed $981,135, $133,698 and $38,650 relative
to employee options/warrants granted. As of March 31,
2013, there was $1,350,169 of unrecognized compensation expense
related to employee non-vested market-based share awards.
A summary of stock option/warrant transactions for employees from
December 31, 2011 to March 31, 2013 is as follows:
On January 2, 2012, the Company issued a consultant an option to
purchase 250,000 shares of the Company's common stock at $.50 per
share. These options have been valued at $51,692 fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 29.2%, risk free interest rate of 0.9% and expected option life
of five years. The options expire five years from the
date of issuance. Options granted are expensed when the
service is provided.
On January 17, 2012, the Company issued a consultant an option to
purchase 200,000 shares of the Company's common stock at $.50 per
share. These options have been valued at $31,437, fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 28.0%, risk free interest rate of 0.8% and expected option life
of five years. The options expire five years from the
date of issuance. Options granted are expensed when the
service is provided.
On March 31, 2012, the Company issued two consultants options to
purchase 100,000 shares in the aggregate of the Company's common
stock at $.65 per share. These options have been valued
at $18,947, fair value. The Company uses the
Black-Scholes option pricing model to calculate the grant-date fair
value of the options, with the following assumptions: no dividend
yield, expected volatility of 31.2%, risk free interest rate of
1.04% and expected option life of five years. The
options expire five years from the date of
issuance. Options granted are expensed when the service
is provided.
On April 1, 2012, the Company issued a company owned by the former
manager of corporate development an option to purchase 250,000
shares of the Company's common stock at $.70 per share pursuant to
an agreement that also required a cash payment of
$150,000. These options have been valued at $43,028,
fair value. The Company uses the Black-Scholes option
pricing model to calculate the grant-date fair value of the
options, with the following assumptions: no dividend yield,
expected volatility of 31.2%, risk free interest rate of 1.04% and
expected option life of five years. The options expire
five years from the date of issuance. Options granted are being
expensed through May 31, 2013, the term of the agreement.
In May 2012, the Company issued a consultant options to
purchase an aggregate of 100,000 shares of the Company's common
stock at an exercise price of $2.17 per share. These
options were valued at $79,978 fair value. The Company
uses the Black-Scholes option pricing model to calculate the
grant-date fair value of the options, with the following
assumptions: no dividend yield, expected volatility of 31.2%, risk
free interest rate of .75% and expected option life of five
years. The options expire five years from the date of
issuance. Options granted were expensed when the
services were provided.
In July 2012, the Company issued one consultant options to purchase
an aggregate of 100,000 shares of the Company's common stock at an
exercise price of $1.55 per share. These options were
valued at $40,373 fair value. The Company uses the
Black-Scholes option pricing model to calculate the grant-date fair
value of the options, with the following assumptions: no dividend
yield, expected volatility of 29.3%, risk free interest rate of
.64% and expected option life of five years. The options
expire five years from the date of issuance. Options
granted will be expensed when the services are provided.
In August 2012, the Company issued two consultants options to
purchase an aggregate of 400,000 shares of the Company's common
stock at exercise prices ranging from $.35 to $1.11 per
share. These options were valued at $321,221, fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 27.1% to 30.5%, risk free interest rate of .27% to .67% and
expected option lives of from two to five years. The
options expire between two and five years from the date of
issuance. Options granted will be expensed when the
services are provided.
In September 2012, the Company issued a consultant options to
purchase 100,000 shares of the Company's common stock at an
exercise price of $.75 per share. These options were
valued at $81,697, fair value. The Company used the
Black-Scholes option pricing model to calculate the grant-date fair
value of the options, with the following assumptions: no dividend
yield, expected volatility of 25.6%, risk free interest rate of
.27% and expected option life of two years. The options
expire two years from the date of issuance. Options
granted will be expensed when the service is provided.
In October 2012, the Company issued a consultant options to
purchase 50,000 shares of the Company's common stock at an exercise
price of $1.14 per share. These options were valued at
$5,381, fair value. The Company used the Black-Scholes
option pricing model to calculate the grant-date fair value of the
options, with the following assumptions: no dividend yield,
expected volatility of 23.5%, risk free interest rate of .19% and
expected option life of one year. The options expire one
year from the date of issuance. The options granted were
expensed when the service was provided.
In November 2012, the Company issued four consultants options to
purchase an aggregate of 765,000 shares of the Company's common
stock at an exercise price of $1.01 per share. These
options were valued at $188,830, fair value. The Company
used the Black-Scholes option pricing model to calculate the
grant-date fair value of the options, with the following
assumptions: no dividend yield, expected volatility of 26.1%, risk
free interest rate of .76% and expected option life of five
years. The options expire five years from the date of
issuance. Options granted will be expensed over the term
of the agreement.
In December 2012, the Company issued a consultant warrants to
purchase 500,000 shares of the Company's common stock at an
exercise price of $1.15 per share. These warrants were
valued at $195,318, fair value. The Company uses the
Black-Scholes option pricing model to calculate the grant-date fair
value of the options, with the following assumptions: no dividend
yield, expected volatility of 24.7%, risk free interest rate of
.76% and expected option life of one years. The options
expire five years from the date of issuance.
The vesting of the warrants is contingent upon the consultant
meeting certain milestones and at December 31, 2012 and March 31,
2013 only 150,000 of the warrants had vested. For the
year ended December 31, 2012, the vested warrants were valued at
$58,595 and expensed immediately. For the three months
ended March 31, 2013 no expense was recorded for these
warrants.
In January 2013, the Company issued a consultant options to
purchase 5,000 shares of the Company's common stock at an exercise
price of $1.00 per share. These options were valued at
$441 fair value. The Company uses the Black-Scholes
option pricing model to calculate the grant-date fair value of the
options, with the following assumptions: no dividend yield,
expected volatility of 22.0%, risk free interest rate of .15% and
expected option life of one year. The options expire one
year from the date of issuance. Options granted will be
expensed over the one year term of the consulting agreement.
In March 2013, the Company issued three consultants options to
purchase an aggregate of 230,000 shares of the Company's common
stock at exercise prices ranging from $0.75 to $1.48 per
share. These options were valued at $52,807, fair
value. The Company uses the Black-Scholes option pricing
model to calculate the grant-date fair value of the options, with
the following assumptions: no dividend yield, expected volatility
of 21.7% to 22.6%, risk free interest rate of .14% to .25% and
expected option life of one to two years. The options
expire one to two years from the date of
issuance. Options granted will be expensed over the term
of the agreements.
In March 2013, the Company granted a consultant 1 million options
to purchase shares of the Company's common stock at an
exercise price of $1.48 per share with a term of two
years. The vesting of these options is contingent
upon the consultant achieving certain milestones. As of
March 31, 2013, none of the milestones have been met
, and therefore no expense was recorded during the three months
ended March 31, 2013.
Cumulatively and for the three months ended March 31, 2013 and
2012, the Company expensed $1,150,518, $57,793 and $348,836
relative to non-employee options/warrants granted. As of
March 31, 2013, there was $75,988 of unrecognized compensation
expense related to non-vested market-based share awards.
The following table summarizes non-employee stock option/warrant of
the Company from December 31, 2011 to March 31, 2013 as
follows:
|
OPERATING LEASES
|
3 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
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OPERATING LEASES [Abstract] | |||||||||||||||||||||||||||||||
OPERATING LEASES |
NOTE 9 - OPERATING LEASES
For the three months ended March 31, 2013 and 2012, total rent
expense under leases amounted to $55,648 and $8,803. At
December 31, 2012, the Company was obligated under various
non-cancelable operating lease arrangements for property as
follows:
|
RELATED PARTY TRANSACTIONS
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS |
NOTE 10 - RELATED PARTY TRANSACTIONS
From inception through December 1, 2010, the Company utilized
offices leased by affiliates of certain of the Company's board
members without charge.
During the three months ended March 31, 2013 and 2012, a consultant
and beneficial owner of the Company, owning more than five percent
of the outstanding common shares of the Company, was paid for
consulting and travel expenses of the Company for providing
strategic advice to the Company. Expenses totaling
$61,065 and $64,106 were incurred and reimbursed during the three
months ended March 31, 2013 and 2012. On January 1,
2013, the Company entered into an agreement with this consultant,
whereby the Company will pay $12,500 per month beginning January 1,
2013 for a term of one year
, which are included in the above expenses.
During the three months ended March 31, 2013 and 2012, a marketing
company owned by the Company's Secretary and his spouse was paid $0
and $14,560.
|
SUBSEQUENT EVENTS
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS |
NOTE 11 - SUBSEQUENT EVENTS
On April 1, 2013, the Company granted an employee an option to
purchase 200,000 shares of the Company's common stock at an
exercise price of $1.56, which vest over four years and expire in
five years.
On April 15, 2013, the Company granted four directors options to
purchase an aggregate of 1,050,000 million shares of the Company's
common stock at an exercise price of $1.85, which vest over four
years and expire in five years.
On April 15, 2013, the Company granted five directors an aggregate
of 26,521 restricted shares of the Company's common stock for board
committee fees in lieu of cash.
|
SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (Policies)
|
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
|||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
Basis of Presentation |
Basis of Presentation
The financial statements are presented in accordance with Financial
Accounting Standards Board Accounting Standards Codification ("FASB
ASC") 915 for development stage entities.
|
||||||||
Use of Estimates |
Use of Estimates
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from
these estimates.
|
||||||||
Comprehensive Income |
Comprehensive Income
The Company follows FASB ASC 220 in reporting comprehensive
income. Comprehensive income is a more inclusive
financial reporting methodology that includes disclosure of certain
financial information that historically has not been recognized in
the calculation of net income. Since the Company has no
items of other comprehensive income (loss), comprehensive income
(loss) is equal to net income (loss).
|
||||||||
Fair Value of Financial Instruments |
Fair Value of Financial Instruments
The Company's financial instruments consist of cash, accounts
receivable and accounts payable and accrued
expenses. The carrying value of cash, accounts
receivable and accounts payable and accrued expenses approximate
fair value, because of their short maturity.
|
||||||||
Concentration of Credit Risk Involving Cash |
Concentration of Credit Risk Involving Cash
The Company may have deposits with a financial institution which at
times exceed Federal Depository Insurance coverage of
$250,000.
|
||||||||
Cash and Cash Equivalents |
Cash and Cash Equivalents
For purposes of reporting cash flows, the Company considers all
cash accounts, which are not subject to withdrawal restrictions or
penalties, and certificates of deposit and commercial paper with
original maturities of 90 days or less to be cash or cash
equivalents.
|
||||||||
Property and Equipment |
Property and Equipment
Property and equipment are stated at cost less accumulated
depreciation and any impairment losses. Expenditures for
new equipment and major expenditures for existing equipment are
capitalized and depreciation using the straight line method at
rates sufficient to depreciate such costs over the estimated
productive lives. All other ordinary repair and
maintenance costs are expensed as incurred.
The Company's depreciation and amortization policies on property
and equipment are as follows:
|
||||||||
Recoverability of Long-Lived Assets |
Recoverability of Long-Lived Assets
In accordance with Financial Accounting Standards Board ("FASB")
Accounting Standards Codification ("ASC") 360-10-35 "Impairment or Disposal
of Long-lived Assets", long-lived assets to be held and used
are analyzed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not
be fully recoverable or that the useful lives of those assets are
no longer appropriate. The Company evaluates at each balance sheet
date whether events and circumstances have occurred that indicate
possible impairment.
The Company determines the existence of such impairment by
measuring the expected future cash flows (undiscounted and without
interest charges) and comparing such amount to the carrying amount
of the assets. An impairment loss, if one exists, is then measured
as the amount by which the carrying amount of the asset exceeds the
discounted estimated future cash flows. Assets to be disposed of
are reported at the lower of the carrying amount or fair value of
such assets less costs to sell. Asset impairment charges are
recorded to reduce the carrying amount of the long-lived asset that
will be sold or disposed of to their estimated fair values. Charges
for the asset impairment reduce the carrying amount of the
long-lived assets to their estimated salvage value in connection
with the decision to dispose of such assets.
For the three-month period ended March 31, 2013 and 2012, the
Company determined that no impairment was required after going
through the impairment testing to the operating long-lived assets
(property and equipment and patents and trademarks).
|
||||||||
Revenue Recognition |
Revenue Recognition
In accordance with Securities and Exchange Commission ("SEC") Staff
Accounting Bulletin ("SAB") No. 104, Revenue
Recognition (Codified in FASB ASC 605), the Company will
recognize revenue when (i) persuasive evidence of a customer or
distributor arrangement exists or acceptance occurs, (ii) a
retailer, distributor or wholesaler receives the goods, (iii) the
price is fixed or determinable, and (iv) collectability of the
sales revenues is reasonably assured. Subject to these criteria,
the Company will generally recognize revenue at the time of the
sale of the associated product.
|
||||||||
Income Taxes |
Income Taxes
The Company follows FASB ASC 740 when accounting for income taxes,
which requires an asset and liability approach to financial
accounting and reporting for income taxes. Deferred
income tax assets and liabilities are computed annually for
temporary differences between the financial statements and tax
bases of assets and liabilities that will result in taxable or
deductible amounts in the future based on enacted tax laws and
rates applicable to the periods in which the differences are
expected to affect taxable income. Valuation allowances
are established when necessary to reduce deferred tax assets to the
amount expected to be realized. Income tax expense is
the tax payable or refundable for the period plus or minus the
change during the period in deferred tax assets and
liabilities. Tax years from 2008 through 2012 remain
subject to examination by major tax jurisdictions.
|
||||||||
Loss Per Share |
Loss Per Share
The Company follows FASB ASC 260 when reporting Earnings Per Share
resulting in the presentation of basic and diluted earnings per
share. Because the Company reported a net loss for the
three months ended March 31, 2013 and 2012, common stock
equivalents, including stock options and warrants were
anti-dilutive; therefore, the amounts reported for basic and
dilutive loss per share were the same.
|
||||||||
Start-up Costs |
Start-up Costs
In accordance with FASB ASC 720, start-up costs
are expensed as incurred.
|
||||||||
Research and Development Costs |
Research and Development Costs
In accordance with FASB ASC 730, research and development costs are
expensed when incurred.
|
||||||||
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted |
Recently Adopted Accounting Pronouncements
In July 2012, the FASB issued ASU No. 2012-02, Intangibles - Goodwill
and Other (Topic 350), Testing Indefinite-Lived Intangible Assets
for Impairment. In accordance with the amendments in this
Update, an entity has the option first to assess qualitative
factors to determine whether the existence of events and
circumstances indicates that it is more likely than not that the
indefinite-lived intangible asset is impaired. If, after assessing
the totality of events and circumstances, an entity concludes that
it is not more likely than not that the indefinite-lived intangible
asset is impaired, then the entity is not required to take further
action. However, if an entity concludes otherwise, then it is
required to determine the fair value of the indefinite-lived
intangible asset and perform the quantitative impairment test by
comparing the fair value with the carrying amount in accordance
with Subtopic 350-30. The amendments are effective for annual and
interim impairment tests performed for fiscal years beginning after
September 15, 2012. The Company adopted the amendments effective
January 1, 2013 and their adoption did not have a material impact
on the financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted
As of March 31, 2013, there are no recently issued accounting
standards not yet adopted which would have a material effect on the
Company's financial statements.
|
||||||||
Reclassifications |
Reclassifications
Certain amounts in the 2012 financial statements have been
reclassified in order for them to be in conformity with the 2013
presentation.
|
SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (Tables)
|
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
|||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
Schedule of Property and Equipment, Useful Life |
The Company's depreciation and amortization policies on property
and equipment are as follows:
|
STOCK OPTIONS AND WARRANTS
(Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
|
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STOCK OPTIONS AND WARRANTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Options and Warrant Transactions for Employees |
A summary of stock option/warrant transactions for employees from
December 31, 2011 to March 31, 2013 is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Non-Employee Stock Options and Warrants |
The following table summarizes non-employee stock option/warrant of
the Company from December 31, 2011 to March 31, 2013 as
follows:
|
OPERATING LEASES (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
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OPERATING LEASES [Abstract] | |||||||||||||||||||||||||||||||
Schedule of Non-Cancelable Operating Lease Arrangements |
At December 31, 2012, the Company was obligated under various
non-cancelable operating lease arrangements for property as
follows:
|
SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (Details) (USD $)
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Number of merchant agreements to deploy technology on their websites | 80 |
Number of merchants using technology in live use | 20 |
FDIC insured limit | $ 250,000 |
Computer equipment [Member] | Minimum [Member]
|
|
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Computer equipment [Member] | Maximum [Member]
|
|
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and fixtures [Member]
|
|
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
GOING CONCERN (Details) (USD
$)
|
3 Months Ended | 62 Months Ended | |
---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Mar. 31, 2013
|
|
GOING CONCERN [Abstract] | |||
Amount raised from private placement | $ 900,000 | ||
Stock issuance costs | 60,783 | 28,000 | 153,783 |
Possible proceeds from private placement | $ 5,000,000 |
PATENTS (Details) (Patents
[Member], USD $)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Patents [Member]
|
||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | 20 years | |
Unamortized capitalized patent costs | $ 467,919 | $ 154,593 |
Amortization expense for patents | $ 5,265 | $ 1,054 |
NOTES PAYABLE (Details) (USD
$)
|
3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Apr. 30, 2012
Private Placement, September 2011 to December 2011
[Member]
|
Feb. 29, 2012
Private Placement, September 2011 to December 2011
[Member]
|
Feb. 08, 2012
Private Placement, September 2011 to December 2011
[Member]
|
Dec. 31, 2011
Private Placement, September 2011 to December 2011
[Member]
|
Sep. 30, 2011
Private Placement, September 2011 to December 2011
[Member]
|
Dec. 31, 2012
Private Placement, September 2011 to December 2011
[Member]
|
Dec. 31, 2011
Private Placement, September 2011 to December 2011
[Member]
|
Dec. 31, 2011
Private Placement, September 2011 to December 2011
[Member]
Warrant [Member]
|
Sep. 30, 2011
Private Placement, September 2011 to December 2011
[Member]
Warrant [Member]
|
Dec. 31, 2011
Private Placement, September 2011 to December 2011
[Member]
Common Stock [Member]
|
Sep. 30, 2011
Private Placement, September 2011 to December 2011
[Member]
Common Stock [Member]
|
|
Notes Payable Equity Issuance [Line Items] | |||||||||||||
Units authorized | 10 | ||||||||||||
Price per unit | $ 50,000 | ||||||||||||
Note payable included per unit | $ 50,000 | ||||||||||||
Note payable maturity date | Nov. 12, 2012 | ||||||||||||
Number of shares entitled by warrants | 15,000 | ||||||||||||
Exercise price of warrants | 0.50 | ||||||||||||
Warrants/Options expiration date | Nov. 12, 2012 | ||||||||||||
Common shares issued per unit | 102,675,842 | 101,417,508 | 15,000 | ||||||||||
Amount raised from private placement | 900,000 | 500,000 | |||||||||||
Fair value of issued equity | 20,930 | 82,655 | |||||||||||
Pricing model used in calculation of grant-date fair value | Black-Scholes option pricing model | ||||||||||||
Dividend yield | |||||||||||||
Expected volatility, minimum | 39.80% | ||||||||||||
Expected volatility, maximum | 62.80% | ||||||||||||
Risk free interest rate | 0.10% | ||||||||||||
Expected life | 1 year 2 months 12 days | ||||||||||||
Fair value per share, common stock, minimum | $ 0.45 | ||||||||||||
Fair value per share, common stock, maximum | $ 0.70 | ||||||||||||
Accreted interest on notes payable | 65,560 | 38,035 | |||||||||||
Repayments of notes payable | 25,000 | 50,000 | 100,000 | 150,000 | |||||||||
Accrued interest payable | $ 25,000 | ||||||||||||
Common shares issued for notes payable conversion | 571,428 | ||||||||||||
Fair value of warrants issued as discount for notes payable | 285,714 |
INCOME TAXES (Details) (USD
$)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
INCOME TAXES [Abstract] | ||
Income tax expense |
LITIGATION SETTLEMENT (Details)
(USD $)
|
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
LITIGATION SETTLEMENT [Abstract] | |
Cash payment for settlement | $ 450,000 |
Proceeds from insurance carrier | $ 75,000 |
STOCKHOLDERS' EQUITY (Details)
(USD $)
|
3 Months Ended | 12 Months Ended | 62 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 11 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Dec. 31, 2012
|
Mar. 31, 2013
|
Dec. 31, 2011
December 2011 Private Placement [Member]
|
Jan. 11, 2012
December 2011 Private Placement [Member]
|
Mar. 31, 2012
December 2011 Private Placement [Member]
|
Apr. 05, 2012
April 5, 2012 Private Placement [Member]
|
Jun. 30, 2012
April 5, 2012 Private Placement [Member]
|
Apr. 02, 2012
April 2, 2012 Issuance [Member]
|
Apr. 10, 2012
April 10, 2012 Issuance [Member]
|
May 02, 2012
May 2, 2012 Issuance [Member]
|
Mar. 31, 2013
May 2, 2012 Issuance [Member]
|
May 02, 2012
May 2, 2012 Issuance [Member]
Warrant Type One [Member]
|
May 02, 2012
May 2, 2012 Issuance [Member]
Warrant Type Two [Member]
|
May 21, 2012
May 21, 2012 Issuance [Member]
|
May 25, 2012
May 25, 2012 Issuance [Member]
|
Aug. 08, 2012
July 5th, 2012 Issuance [Member]
|
Jul. 05, 2012
July 5th, 2012 Issuance [Member]
|
Jul. 05, 2012
July 5th, 2012 Issuance [Member]
Warrant Type One [Member]
|
Jul. 05, 2012
July 5th, 2012 Issuance [Member]
Warrant Type Two [Member]
|
Dec. 31, 2012
November and December 2012 Issuance [Member]
|
Dec. 31, 2012
December 2012 Issuance [Member]
|
Mar. 31, 2013
Q1 2013 Issuance [Member]
|
|
Equity Issued [Line Items] | ||||||||||||||||||||||||
Issuance of shares of common stock, shares | 178,572 | 10,000,000 | 1,363,185 | |||||||||||||||||||||
Issuance of shares of common stock, value | $ 3,312,537 | |||||||||||||||||||||||
Equity issuance, price or exercise price per security issued | $ 0.80 | $ 0.70 | $ 0.70 | $ 0.80 | $ 2.43 | $ 0.80 | $ 0.70 | $ 0.75 | $ 0.75 | |||||||||||||||
Proceeds from equity issuance | 5,000,000 | 2,717,650 | 150,000 | 100,000 | 5,560,000 | 500,000 | 850,000 | |||||||||||||||||
Units authorized | 6,250,000 | 7,142,858 | ||||||||||||||||||||||
Shares per unit | 2 | 2 | 2 | 2 | ||||||||||||||||||||
Warrants per unit | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Number of shares entitled by warrants | 5,000,000 | 1 | 1 | |||||||||||||||||||||
Exercise price of warrants | 0.50 | 0.50 | 0.50 | 1.00 | 0.50 | 1.00 | ||||||||||||||||||
Expected life | 2 years | 3 years | 2 years | 3 years | ||||||||||||||||||||
Equity issuance, number securities issued for cash | 625,000 | 12,500,000 | 3,922,356 | 6,201,831 | 0.85 | 187,500 | 125,000 | 7,942,858 | 666,667 | 1,133,334 | ||||||||||||||
Amount raised from private placement | 900,000 | 500,000 | 4,341,282 | 297,500 | 850,000 | 1,000,000 | 100,000 | |||||||||||||||||
Warrants issued | 89,286 | 350,000 | ||||||||||||||||||||||
Exercised, shares | 250,000 | 350,000 | ||||||||||||||||||||||
Proceeds from exercise of options | 384,000 | 10,000 | 14,000 | |||||||||||||||||||||
Proceeds from exercise of warrants | 445,714 | |||||||||||||||||||||||
Stock issuance costs including commisions | 60,783 | 28,000 | 153,783 | 28,000 | ||||||||||||||||||||
Common stock subscription | 50,000 | |||||||||||||||||||||||
Common stock authorized in private placement | 5,000,000 | 3,500,000 | 4,000,000 | |||||||||||||||||||||
Warrants authorized in private placement | 6,250,000 | 125,000 | 62,500 | |||||||||||||||||||||
Cash payment for settlement | 450,000 | 30,000 | ||||||||||||||||||||||
Value of shares covered in agreement | $ 850,000 |
STOCK OPTIONS AND WARRANTS
(Details) (USD $)
|
3 Months Ended | 62 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 62 Months Ended | 3 Months Ended | 3 Months Ended | 62 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Mar. 31, 2013
|
Mar. 31, 2013
2008 Equity Incentive Plan [Member]
|
Dec. 31, 2008
2008 Equity Incentive Plan [Member]
|
Mar. 31, 2013
2013 Equity Incentive Plan [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
|
Dec. 31, 2012
Incentive Stock Options [Member]
|
Dec. 31, 2011
Incentive Stock Options [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
Options issued to employees [Member]
|
Mar. 31, 2012
Incentive Stock Options [Member]
Options issued to employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
Options issued to employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
January 27, 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
February 28, 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
March 2, 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
March 5, 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
March 31, 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
April 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
June 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
July 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
August 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
September 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
October 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
November 2012 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
March 2008 Options Issued to Directors [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
January 2013 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
February 2013 Options Issued to Employees [Member]
|
Mar. 31, 2013
Incentive Stock Options [Member]
March 2013 Options Issued to Employees [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
|
Dec. 31, 2012
Non-Statutory Stock Options [Member]
|
Dec. 31, 2011
Non-Statutory Stock Options [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
Options issued to non-employees [Member]
|
Mar. 31, 2012
Non-Statutory Stock Options [Member]
Options issued to non-employees [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
Options issued to non-employees [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
January 2, 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
January 17, 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
March 31, 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
April 1, 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
May 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
July 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
August 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
August 2012 Options Issued to Consultants [Member]
Minimum [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
August 2012 Options Issued to Consultants [Member]
Maximum [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
September 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
October 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
November 2012 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
December 2012 Warrants Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
January 2013 Options Issued to Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
March 2013 Options Issued to Three Consultants [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
March 2013 Options Issued to Three Consultants [Member]
Minimum [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
March 2013 Options Issued to Three Consultants [Member]
Maximum [Member]
|
Mar. 31, 2013
Non-Statutory Stock Options [Member]
March 2013 Options Issued to One Consultant [Member]
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Options authorized | 25,000,000 | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding options | 15,290,000 | 2,027,500 | 18,186,144 | 17,258,644 | 9,467,858 | 4,250,000 | 17,060,188 | 16,531,438 | 3,184,286 | |||||||||||||||||||||||||||||||||||||||||||
Options available to be issued | 110,000 | 2,972,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of fair market value of common stock the exercise price of options may not exceed | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of fair market value of common stock the exercise price may not exceed, when grantee holds greater than 10% shares outstanding | 110.00% | 110.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Grantee ownership percentage considered in determination of options exercise price | 10.00% | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options issued | 30,000 | 25,000 | 250,000 | 25,000 | 4,010,000 | 80,000 | 470,000 | 15,000 | 380,000 | 75,000 | 75,000 | 1,295,000 | 4,500,000 | 260,000 | 760,000 | 2,500 | 250,000 | 200,000 | 100,000 | 250,000 | 100,000 | 100,000 | 400,000 | 100,000 | 50,000 | 765,000 | 500,000 | 5,000 | 230,000 | 1,000,000 | ||||||||||||||||||||||
Minimum option exercise price | $ 0.65 | $ 1.53 | $ 1.26 | $ 1.01 | $ 0.99 | $ 1.07 | $ 0.35 | $ 0.75 | ||||||||||||||||||||||||||||||||||||||||||||
Option exercise price | $ 0.52 | $ 0.58 | $ 0.58 | $ 0.58 | $ 0.65 | $ 1.23 | $ 1.54 | $ 1.35 | $ 1.36 | $ 0.50 | $ 0.50 | $ 0.65 | $ 0.70 | $ 2.17 | $ 1.55 | $ 0.75 | $ 1.14 | $ 1.01 | $ 1.15 | $ 1 | $ 1.48 | |||||||||||||||||||||||||||||||
Maximum option exercise price | $ 0.97 | $ 1.82 | $ 1.43 | $ 1.35 | $ 1.05 | $ 1.21 | $ 1.11 | $ 1.48 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value of issued equity | $ 133,698 | $ 38,650 | $ 981,135 | $ 3,718 | $ 3,120 | $ 33,975 | $ 2,680 | $ 759,810 | $ 17,310 | $ 217,293 | $ 5,493 | $ 123,381 | $ 26,303 | $ 23,263 | $ 371,313 | $ 62,662 | $ 199,843 | $ 728 | $ 57,793 | $ 348,836 | $ 1,150,518 | $ 51,692 | $ 31,437 | $ 18,947 | $ 43,028 | $ 79,978 | $ 40,373 | $ 321,221 | $ 81,697 | $ 5,381 | $ 188,830 | $ 195,318 | $ 441 | $ 52,807 | ||||||||||||||||||
Pricing model used in calculation of grant-date fair value | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | ||||||||||||||||||||||||
Dividend yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected volatility | 25.40% | 25.00% | 25.90% | 25.00% | 31.20% | 32.90% | 24.50% | 24.50% | 22.50% | 29.20% | 28.00% | 31.20% | 31.20% | 31.20% | 29.30% | 25.60% | 23.50% | 26.10% | 24.70% | 22.00% | ||||||||||||||||||||||||||||||||
Risk free interest rate | 0.80% | 0.80% | 0.90% | 0.90% | 1.04% | 0.61% | 0.62% | 0.70% | 0.76% | 0.90% | 0.80% | 1.04% | 1.04% | 0.75% | 0.64% | 0.27% | 0.19% | 0.76% | 0.76% | 0.15% | ||||||||||||||||||||||||||||||||
Expected life | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 2 years | 5 years | 2 years | 1 year | 5 years | 1 year | 1 year | 1 year | 2 years | 2 years | |||||||||||||||||||||
Expiration period after issuance | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 2 years | 5 years | 2 years | 1 year | 5 years | 5 years | 1 year | 1 year | 2 years | ||||||||||||||||||||||
Senior Vice President of Marketing and Licensing annual compensation | 150,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting period | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 1 year | |||||||||||||||||||||||||||||||||||||
Expected volatility, minimum | 30.20% | 30.30% | 23.50% | 26.10% | 23.30% | 22.50% | 27.10% | 21.70% | ||||||||||||||||||||||||||||||||||||||||||||
Expected volatility, maximum | 33.40% | 35.50% | 29.10% | 29.30% | 26.10% | 25.10% | 30.50% | 22.60% | ||||||||||||||||||||||||||||||||||||||||||||
Risk free rate, minimum | 0.82% | 0.68% | 0.63% | 0.76% | 0.78% | 0.78% | 0.27% | 0.14% | ||||||||||||||||||||||||||||||||||||||||||||
Risk free rate, maximum | 1.04% | 0.72% | 0.69% | 0.83% | 0.89% | 0.88% | 0.67% | 0.25% | ||||||||||||||||||||||||||||||||||||||||||||
Fair value of stock issued in exchange for services | 4,741,964 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized compensation expense | 1,350,169 | 1,350,169 | 75,988 | 75,988 | ||||||||||||||||||||||||||||||||||||||||||||||||
Incremental increase in value | 780 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants vested | 150,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Value of vested warrants | $ 58,595 |
OPERATING LEASES (Details) (USD
$)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
OPERATING LEASES [Abstract] | ||
Total rent expense under leases | $ 55,648 | $ 8,803 |
OPERATING LEASES (Schedule of
Non Cancelable Operating Lease Arrangements) (Details) (USD
$)
|
Dec. 31, 2012
|
---|---|
OPERATING LEASES [Abstract] | |
2013 | $ 66,884 |
2014 | 71,461 |
2015 | 39,688 |
Total | $ 178,033 |
RELATED PARTY TRANSACTIONS
(Details) (USD $)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Consultant and Beneficial Owner [Member]
|
||
Related Party Transaction [Line Items] | ||
Related party expenses | $ 61,065 | $ 64,106 |
Monthly payment for consulting services per agreement | 12,500 | |
Marketing Company Owned by Secretary [Member]
|
||
Related Party Transaction [Line Items] | ||
Related party expenses | $ 14,560 |
SUBSEQUENT EVENTS (Details)
(Subsequent Event [Member], USD $)
|
1 Months Ended | |
---|---|---|
Apr. 30, 2013
|
Apr. 02, 2013
|
|
Subsequent Event [Member]
|
||
Subsequent Event [Line Items] | ||
Options issued | 1,050,000 | 200,000 |
Equity issuance, price or exercise price per security issued | $ 1.85 | $ 1.56 |
Restricted shares issued | 26,521 |