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Stockholders' Deficit (Tables)

2 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

A summary of the Company’s restricted stock sold to employees, directors and consultants with a right of repurchase of unlapsed or unvested shares is as follows for the two months ended March 31, 2014:

			Weighted Average Remaining Vesting		Weighted Average Per Share		Weighted- average Per Share
			Life		Intrinsic		Grant Date
	Shares		(In years)		Value		Fair Value
Unvested or unlapsed shares - January 31, 2014		1,012,963		1.5	$	-	$	0.41
Granted		-		-		-		-
Vested / lapsed		(105,556)		-		-		-
Forfeited		-		-		-		-
Unvested or unlapsed shares - March 31, 2014		907,407		1.3	$	-	$	0.41

Stock Option Transactions Under Stock Option Plans

Stock option activity for the two months ended March 31, 2014 is summarized below:

			Weighted		Weighted		Weighted
			Average		Average		Average
			Per Share		Remaining		Per Share
			Exercise		Life		Intrinsic
	Shares		Price		(Years)		Value
Balance, January 31, 2014		7,358,000	$	0.17		9.0	$	0.16
Granted		-
Cancelled		(887,667)		0.23		7.9		-
Exercised		-						-
Expired		-						-
Forfeited		(183,333)		0.21		8.5		-
Balance, March 31, 2014		6,287,000	$	0.20		8.7	$	0.11
Vested and exercisable - March 31, 2014		5,260,889	$	0.19		7.3	$	0.12

Summary of Restricted Stock Award

The following table summarizes the restricted stock award in the ACO Plan during the two months ended March 31, 2014:

			Weighted
			Average		Weighted
			Remaining		Average		Weighted
			Vesting		Per Share		Average
			Life		Intrinsic		Per Share
	Shares		(Years)		Value		Fair Value
Balance, January 31, 2014		3,752,000		1.0	$	0.02	$	0.03
Granted		-		-		-		-
Released		-		-		-		-
Balance, March 31, 2014		3,752,000		0.8	$	0.02	$	0.03
Vested and exercisable - March 31, 2014		2,480,042

Total Unrecognized Compensation Costs Related To Non-Vested Stock-Based Compensation Arrangements

As of March 31, 2014, total unrecognized compensation costs related to non-vested stock-based compensation arrangements granted under the Company’s 2010 and 2013 Equity Plans, and the ACO Plan’s and the weighted-average period of years expected to recognize those costs are as follows:

Common stock options	$	99,732
Restricted stock	$	201,380
ACO Plan restricted stock	$	10,525

Summary of Stock Based Compensation Expense Related To Restricted Stock and Option Awards

Stock-based compensation expense related to common stock and common stock option awards is recognized over their respective vesting periods and was included in the accompanying condensed consolidated statement of operations as follows:

	Two months ended March 31,
	2014		2013
Stock-based compensation expense:
Cost of services	$	15,703	$	14,077
General and administrative		44,484		31,209
	$	60,187	$	45,286

Warrants Outstanding

Warrants consisted of the following as of and for the two months ended March 31, 2014:

	Weighted
	Average
	Per Share
	Intrinsic		Number of
	Value		warrants
Outstanding at February 1, 2014	$	0.04		3,145,000
Granted		-		4,000,000
Exercised		-		-
Cancelled		-		-
Outstanding at March 31, 2014	$	0.02		7,145,000

Exercise Price Per Share		Warrants outstanding		Weighted average remaining contractual life		Warrants exercisable		Warrants average exercise price per share
$	0.11485		1,250,000		2.50		1,250,000	$	0.1149

$	0.11485		250,000		2.50		250,000	$	0.1149

$	0.45000		500,000		2.50		500,000	$	0.4500

$	0.50000		100,000		3.74		100,000	$	0.5000

$	0.45000		825,000		4.00		825,000	$	0.4500

$	0.40000		220,000		4.00		220,000	$	0.4000

$	1.00000		2,000,000		7.00		2,000,000	$	1.0000

$	2.00000		2,000,000		7.00		2,000,000	$	2.0000
			7,145,000		5.26		7,145,000		0.9600

Amount of Shares of Common Stock Reserved

The amount of shares of common stock reserved for these purposes is as follows at March 31, 2014:

Common stock issued and outstanding			49,134,549
Conversion of 9% Notes			2,750,000
Warrants outstanding			7,145,000
Stock options outstanding			6,287,000
Remaining shares issuable under 2013 Equity Incentive Plan			2,707,000
			68,023,549

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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