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COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
11.    COMMITMENTS AND CONTINGENCIES
 
Operating Leases
 
The Company has entered into various leases for office space. The Company leases offices in New York and Washington states. Those leases expire in March, 2018 and July, 2017, respectively. The Washington office is owned by a related party and is discussed in Note 12.  Future minimum lease payments under these lease agreements are as follows for the years ended December 31:
 
2014
 
$
520,623
 
2015
 
 
408,030
 
2016
 
 
408,019
 
2017
 
 
379,226
 
2018
 
 
82,327
 
Total
 
$
1,798,225
 
 
Rent expense for the years ended December 31, 2013 and 2012 amounted to $532,081 and $534,047, respectively.
 
Royalty and License Agreements
 
The Company entered into an agreement with a former officer of the Company during 1996 to license certain software.  The agreement stipulated, among other provisions, that the officer would receive royalties equal to a percentage of the Company’s gross sales.  This agreement was terminated in May 1999 and was superseded by a new agreement which calls for payment of royalties of .005% on gross sales from $2,000,000 to $52,000,000 and .0025% on gross sales in excess of $52,000,000 pertaining to those patents on which Mr. Messina was identified as an inventor.  As of December 31, 2013, total fees paid under this agreement amounted to approximately $1,650.
 
Consulting Agreements
 
In March 2009, the Company entered into an agreement with an investor relations firm.  The engagement period was for twelve months commencing March 16, 2009.  In exchange for its services, the Company paid the firm $13,500 per month for the first 24 months of the agreement.  In addition, each month for the first 24 months of the agreement, the Company delivered to the investor relations firm 10,417 shares of restricted stock.  The stock is restricted from sale for a period of two years from the date of grant.
 
The agreement is automatically renewed for successive twelve month periods unless either party gives written notice no later than 30 days prior to the expiration period. Afterwards, the fee may be subject to change by mutual agreement of the parties. 
 
As of April 11, 2011, the fee was reduced to $10,000 per month.  No additional shares were issued after February 2011. 
 
Legal Proceedings
 
The Company is not aware of any infringement by our products or technology on the proprietary rights of others. 
 
The Company is not currently involved in any legal or regulatory proceeding, or arbitration, the outcome of which is expected to have a material adverse effect on its business.
 
Severance and Change-in-Control Agreements
 
On November 16, 2010, the Company entered into an Executive Severance Agreement with Mr. Mundy, the Company’s former Chief Financial Officer.  Under the agreement, if Mr. Mundy was terminated without cause, if he resigned with “good reason” (as defined in the agreement), or if he was terminated as a result of a change of control, he would have been entitled to 1.99 years of his then base salary, a gross amount equal to any quarterly bonus target applicable during the quarter, accelerated vesting of all outstanding stock options and coverage of health benefits for a period of up to 12 months.  The agreement had a term of two years.     On April 1, 2012, Mr. Mundy resigned from the Company.  In lieu of the above mentioned agreement, the Company entered into a consulting agreement with Mr. Mundy which had a term of nine months at $15,250 per month.  The final payment was made pursuant to this agreement on January 4, 2013.
 
401(k) Plan
 
The Company has a retirement savings 401(k) plan.  The plan permits eligible employees to make voluntary contributions to a trust, up to a maximum of 35% of compensation, subject to certain limitations.  The Company has elected to contribute a matching contribution equal to 50% of the first 6% of an eligible employee’s deferral election.  The Company may also make discretionary contributions, subject to certain conditions, as defined in the plan.  The Company’s matching contributions were $38,050 and $52,972 for 2013 and 2012, respectively.