Warrants:
Summary of Warrant exercises as of:
| December 31,2013 | December 31, 2012 | |||||
| Warrants | Common Shares Issued | Cash received | Warrants | Common Shares Issued | Cash received | |
| 1,300 | 1,300 | $ 29 | 28,511 | 20,186 | $ - | |
| 11,111 | 2,283 | $ - | 6,651 | 7,439 | $ 212 | |
| Total | 12,411 | 3,583 | $ 29 | 35,162 | 27,625 | $ 212 |
Summary of warrants issued in 2013 and 2012:
| December 31,2013 | December 31, 2012 | |||||
| Related Party | Other | Total | Related Party | Other | Total | |
| Warrants issued in connection with Notes | 19,584 | 2,083 | 21,667 | - | 8,643 | 8,643 |
| Warrants issued with purchase of Series D Preferred | 9,561 | 9,428 | 18,989 | - | - | - |
| Warrants issued in the December Series D Preferred exchange | 2,827 | 7,627 | 10,454 | - | - | - |
| Total | 31,972 | 19,138 | 51,110 | - | 8,643 | 8,463 |
A summary of the status of the warrants outstanding as of December 31, 2013 is as follows:
| Number of Warrants Outstanding and Exercisable | Weighted Average Remaining Life | Weighted Average Exercise Price per share |
| 17,401 | 0.60 | $ 0.0225 |
| 8,643 | 1.56 | $ 0.0500 |
| 51,110 | 2.97 | $ 0.0283 |
| 77,155 | 2.28 | $ 0.0289 |
Information with respect to the Stock Compensation Plans at December 31, 2013 is as follows:
| 1999 Option Plan | 2009 Stock Compensation Plan | 2011 Stock Compensation Plan | Individual Plans | |
| Shares authorized for issuance | 4,000 | 7,000 | 100,000 | - |
| Option vesting period | Quarterly over 3 years | Quarterly over 3 years | Immediate/Quarterly over 3 years | Quarterly over 3 years |
| Date adopted by shareholders | June 2009 | - | November 2011 | - |
| Option term | 7 Years | 3 to 7 Years | 7 Years | 7 Years |
| Options outstanding | 175 | 425 | 68,812 | 125 |
| Options exercisable | 175 | 425 | 42,654 | 125 |
| Weighted average exercise price | $0. 21 | $0.11 | $0.047 | $0.15 |
Information with respect to dividends issued on the Company's Preferred stock for the years ended December 31, 2013 and 2012 is as follows:
| December 31, | December 31, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Dividends | Beneficial Conversion Feature Related to dividends | |||
| Series A-1 | $ 78 | $ 73 | $ - | $ - |
| Series B | 1,044 | 948 | - | 268 |
| Series C | 433 | 389 | 191 | 385 |
| Series D-1 | 131 | 14 | 59 | 13 |
| Series D-2 | 402 | 41 | - | - |
| Total | $ 2,088 | $ 1,465 | $ 250 | $ 666 |
| Year Ended December 31, 2013 | Year Ended December 31, 2012 | |
| Research and development | $ 262 | $ 206 |
| Sales and marketing | 100 | 91 |
| General and administrative | 410 | 137 |
| Director options | 47 | 27 |
| Stock-based compensation expense included in operating expenses | $ 819 | $ 461 |
The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2013:
| Range of Exercise Prices | Options Outstanding | Options Exercisables | |||
| Options Outstanding | Weighted Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | Number Outstanding | Weighted Average Exercise Price | |
| $0.00 - $0.50 | 69,537 | 5.02 | $0.05 | 43,379 | $0.05 |
The summary activity for the Company's 2009 and 2011 Stock Compensation Plans, the 1999 Option Plan and Individual Plans is as follows:
| December 31, 2012 | December 31, 2011 | |||||||
| Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | |
| Outstanding at beginning of period | 44,529 | $0.05 | 51,353 | $0.09 | ||||
| Granted | 26,553 | $0.04 | 2,500 | $0.06 | ||||
| Exercised | - | $ - | - | (203) | $0.07 | $ 2 | ||
| Forfeited/ Cancelled | (1,545) | $0.11 | (9,121) | $0.26 | ||||
| Outstanding at period end | 69,537 | $0.05 | - | 5.02 | 44,529 | $0.05 | 3.2 | |
| Options vested and exercisable at period end | 43,379 | $0.05 | - | 4.61 | 23,319 | $0.05 | 2.6 | |
| Weighted average grant-date fair value of options granted during the period | $0.04 | $0.06 | ||||||
| Year Ended December 31, 2013 | Year Ended December 31, 2012 | |
| Risk free interest rate | 0.40% - 4.92% | 0.62% - 5.11% |
| Expected life (years) | 2.82 - 7.00 | 2.82 - 7.00 |
| Expected volatility | 91.99% - 198.38% | 91.99% - 180.36% |
| Expected dividends | None | None |
| Estimated average forfeiture rate | 10% | 10% |
Information with respect to the classes of Preferred Stock at December 31, 2013 is as follows:
| Class of Preferred Stock | Issue Date | Annual Dividend | Annual Dividend Payable, in Cash or In Kind | Liquidation Preference | Conversion Price | Total Preferred Shares Outstanding | Common Shares to be issued if Fully Converted |
| Series A-1 | May 2008 | 8% | Quarterly in Arrears | $ 1.00 | $ 0.1400 | 1,031 | 7,368 |
| Series B | August 2010 | 10% | Quarterly in Arrears | $ 1.50 | $ 0.0433 | 11,012 | 256,241 |
| Series C | December/March 2011 | 10% | Quarterly in Arrears | $ 1.50 | $ 0.0225 | 4,508 | 200,354 |
| Series D-1 | November 2012/May and December 2013 | 10% | Quarterly in Arrears | $ 1.00 | $ 0.0225 | 3,415 | 151,766 |
| Series D-2 | November 2012/May and December 2013 | 10% | Quarterly in Arrears | $ 1.00 | $ 0.0500 | 4,783 | 95,682 |
| Total | 711,411 |
A summary of the status of the Company's non-vested shares as of December 31, 2013 is as follows:
| Non-vested Shares | Shares | Weighted Average Grant-Date Fair Value |
| Non-vested at January 1, 2013 | 21,210 | $0.05 |
| Granted | 26,553 | $0.04 |
| Forfeited | (862) | $0.11 |
| Vested | (20,743) | $0.04 |
| Non-vested at December 31, 2013 | 26,158 | $0.04 |