Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v2.4.0.8
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2014
Accounting Policies [Abstract]  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net income (loss) per share because the effect of their inclusion would have been anti-dilutive.
 
 
 
For the Three Months
Ended
June 30,
 
For the Six Months
Ended
June 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
Convertible Notes – principal
 
 
-
 
 
1,833,336
 
 
-
 
 
1,833,336
 
Convertible Notes – accrued interest
 
 
-
 
 
13,863
 
 
-
 
 
13,863
 
Consulting Warrant to purchase common stock
 
 
-
 
 
278,228
 
 
278,228
 
 
278,228
 
Financing Warrant to purchase common stock
 
 
-
 
 
152,778
 
 
152,778
 
 
152,778
 
IPO Warrants to purchase common stock
 
 
-
 
 
-
 
 
460,000
 
 
-
 
IR Consulting Warrant
 
 
-
 
 
-
 
 
36,000
 
 
-
 
Options to purchase common stock
 
 
-
 
 
-
 
 
1,737,965
 
 
-
 
RSUs
 
 
-
 
 
-
 
 
4,035
 
 
-
 
Total potentially dilutive securities
 
 
-
 
 
2,278,205
 
 
2,669,006
 
 
2,278,205
 
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
For the three months ended June 30, 2014, the Company calculated the potential diluted earnings per share in accordance with ASC 260, as follows:
 
 
 
Three months ended
June 30, 2014
 
Numerator:
 
 
 
 
Net income (numerator for basic and diluted earnings per share)
 
$
278,621
 
 
 
 
 
 
Weighted average shares outstanding (denominator for basic earnings per share)
 
 
9,370,172
 
 
 
 
 
 
Effect of dilutive securities:
 
 
 
 
Assumed exercise of stock options, treasury method
 
 
846,566
 
Assumed exercise of warrants, treasury method
 
 
555,735
 
Assumed vesting of Restricted Stock Units
 
 
1,197
 
Dilutive potential common shares
 
 
1,403,498
 
Denominator for diluted earnings per share – weighted average shares and assumed potential common shares
 
 
10,773,670
 
Earnings per share, diluted
 
$
0.03
 
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table provides a summary of the liabilities that are measured at fair value on a recurring basis.
 
 
 
Total
 
Quoted Prices
in Active
Markets for
Identical
Assets or
Liabilities
(Level 1)
 
Quoted
Prices
for Similar
Assets or
Liabilities in
Active
Markets
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Derivative Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion Feature
 
$
5,573,000
 
$
-
 
$
-
 
$
5,573,000
 
Financing Warrant
 
 
175,000
 
 
-
 
 
-
 
 
175,000
 
Consulting Warrant
 
 
529,000
 
 
-
 
 
-
 
 
529,000
 
Total
 
$
6,277,000
 
$
-
 
$
-
 
$
6,277,000
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis:
 
 
 
For the six months
ended June 30, 2014
 
Beginning balance
 
$
6,277,000
 
Change in fair value of conversion feature and warrants
 
 
26,265,177
 
Extinguishment of derivative liability upon conversion of Convertible Notes
 
 
(26,790,177)
 
Extinguishment of derivative liability upon modification of Financing Warrant
 
 
(1,733,000)
 
Extinguishment of derivative liability upon modification of Consulting Warrant
 
 
(4,019,000)
 
Ending balance
 
$
-