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13. Stockholder's Equity
 6 Months Ended
Jun. 30, 2015
Equity [Abstract]  
Stockholder's Equity

Issuance of Common Stock for Cash

 

During the six months ended June 30, 2014, the Company sold an aggregate of 1,217,571 shares of its common stock for $1.40 per share. The sales resulted in $1,698,166 of net proceeds to the Company.

 

During the quarter ended March 31, 2014, shareholders exercised their rights to convert warrants into 125,000 shares common stock for $170,000.

 

Issuance of Common Stock for Payable to Board of Directors

 

During the quarter ended March 31, 2015, the Board of Directors was issued a total of 183,825 shares of common stock for $125,000 in director’s fees that were payable at December 31, 2014.  In addition during the quarter, the Company accrued $75,000 in directors fees payable that will be paid in common stock.

 

Issuance of Common Stock for Services

 

During the quarter ended March 31, 2015, 5,000 shares were issued to Bert Denton for services totaling $2,950.

 

Issuance of Common Stock for Notes Payable

 

In the fourth quarter of 2013, the Company borrowed $150,000 from Mr. and Mrs. Robert Detwiler, stockholders of the Company. Prior to the end of 2013, the Detwiler’s converted their notes into 120,000 shares common stock and 60,000 stock purchase warrants. The terms of the conversion were identical to those offered other investors that purchased common stock and warrants near the time of the conversion and no gain or loss on the conversion resulted. During the three months ended June 30, 2014, the Company issued 235,717 shares of its commons stock to Mr. and Mrs. Robert Detwiler and two other shareholders in satisfaction of $330,000 of additional debt that the Detwiler’s and two other shareholders had loaned the Company. Again, the terms of the share payment were identical to those offered other investors that purchased common stock during the second quarter offering.  The notes receivable of $120,000 from the Detwilers are not included in assets, and are treated as a reduction of equity according to generally accepted accounting principles.

 

Common Stock Warrants

 

The Company's Board of Directors has the authority to issue stock warrants for the purchase of preferred or unregistered common stock to directors and employees of the Company. No warrants were issued or exercised during the six months ended June 30, 2015.  476,917 warrants exercisable at $4.50 per share expired in the second quarter of 2015.

 

Transactions in common stock warrants are as follows:

 

    Number of Warrants     Exercise Prices  
Balance, December 31, 2012     1,934,667     $ .25 - $4.50  
Warrants issued     629,740     $ 1.20-$1.60  
   Warrants exercised     (25,000 )   $ 1.20  
   Warrants expired     (50,000 )   $ 4.50  
Balance, December 31, 2013     2,489,407     $ 0.25 - $4.50  
Warrants exercised     (346,625 )   $ 1.20-$1.60  
   Warrants expired     (1,415,865 )        
Balance, December 31, 2014     726,917     $ 0.25 - $4.50  
   Warrants expired     (476,917 )        
Balance, June 30, 2015     250,000     $ 0.25  
                 
The above common stock warrants expire as follows:          
Year ended December 31:                
                 
No Expiration Date     250,000     $ 0.25  
      250,000