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5. Capital Stock
 12 Months Ended
Dec. 31, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
5.    Capital Stock

a)    
Authorized  share capital

500,000,000 shares of common stock with a par value of $0.001 per share and 500,000,000 shares of preferred stock with a par value of $0.001 per share.

b)    
Issued share capital

During the year ended December 31, 2013:

On January 2, 2013, a Director of the Company exercised their option to acquire 1,000,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company recorded a reduction of $30,000 in accrued interest due and payable to a Director and Officer of the Company.

On November 15, 2013, a consultant of the Company exercised their option to acquire 2,000,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company recorded a reduction of $60,000 of accrued accounts payable to the consultant.

During the year ended December 31, 2012:

On August 15, 2012, a creditor and relative of a Director and Officer exercised their option to acquire 20,000,000 shares of common stock of the Company at an exercise of $0.05 per share. The creditor applied $1,000,000 in accrued payable due to the creditor on their promissory notes and line of credit.

On December 31, 2012, a director of the Company exercised their option to acquire 2,500,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company received a reduction of $75,000 in accrued interest due and payable to a Director and Officer of the Company.

b)    
Stock options

During the year ended December 31, 2013:

On January 1, 2013, the Company granted a consultant the options to acquire 1,000,000 shares of its common stock at an exercise price of $0.03 per share for a term of five years. The stock based compensation expense recognized related to the grant of the options was $29,983. During the year ended December 31, 2013, these options were exercised in full.

On January 28, 2013, the Company granted the option to acquire 2,300,000 shares of common stock of the Company that vest as follow:

-     
700,000 immediately

-     
50,000 per month for ten consecutive months, commencing January 31, 2013 for a total of 500,000

-     
200,000 on January 27, 2014

-     
200,000 on January 27, 2015

-     
200,000 in November 2014 subject to approval from to COO of the Company

-     
200,000 in December 2015 subject to approval from to COO of the Company

-     
300,000 subject to performance vesting criteria

The Company recognized compensation expense of $61,956 related to the options that vested during the year. The stock based compensation expense related to the unvested stock options to be recognized if the options vest is $29,979.

On March 26, 2013, the Company granted a consultant the options to acquire 500,000 shares of its common stock at an exercise price of $0.03 per share for a term of five years. The option does not vest until the consultant enters into a full-time employment or equivalent role with the Company. Therefore, no compensation expense related to these options has been recognized. The stock based compensation expense related to the unvested stock options to be recognized if the options vest is $17,489.

On April 1, 2013, the Company granted a consultant the option to acquire 1,250,000 shares of its common stock at an exercise price of $0.07 per share for a term of five years. The stock-based compensation expense related to the grant of this option was $43,706.

On April 9, 2013, the Company granted two consultants each the respective and individual option to acquire 1,000,000 shares (500,000 shares each) of its common stock at an exercise price of $0.03 per share for a term of five years. The option does not vest for either consultant until the individuals enter into a full-time employment or equivalent role with the Company. Therefore, no compensation expense related to these options has been recognized. The stock based compensation expense related to the unvested stock options to be recognized if the options vest is $19,987.

On May 1, 2013, the Company granted one consultant the option to acquire 2,000,000 shares of common stock of the Company at an exercise price of $0.03 per share for a period of five years. The stock based compensation expense recognized related to this option grant was $99,937. During the year ended December 31, 2013, these options were exercised in full.

On October 1, 2013, the Company granted the option to acquire 500,000 shares of common stock at an exercise price of $0.03 per share to a consultant of the Company. The option to acquire the shares of common stock vests as follows:

-     
250,000 at the time of the grant

-     
250,000 one year from the date of grant

The compensation expense recognized related to this option grant was $9,331. The compensation expense related to the unvested stock options to be recognized if the options vest is $5,598.

During the year ended December 31, 2012:

On June 27, 2012:

-     
the 20,000,000 stock options granted to the Chairman on March 6, 2011, in connection with the Company’s credit agreement with the Chairman of the Company, were modified as follows:

-     All stock options remaining unvested were immediately vested

-    
The exercise price was reduced from $0.125 per share to $0.07 per share and subsequently reduced to $0.05 per share on December 28, 2012

The stock based compensation expense from vesting of the un-vested options was $1,484,334 and the stock based compensation expense related to the modification of the stock options was $1,280.

-     
in connection with the Company’s credit agreement with the Chairman of the Company, the Company granted the Chairman an additional 15,750,000 stock options with an exercise price of $0.07 per share and expiry date on March 6, 2016. The stock based compensation expense related to these stock options was $1,130,988.

-     
the 1,000,000 stock options issued to the President of the Company on May 4, 2011 were modified to reduce the exercise price from $0.20 per share to $0.07 per share. The modification of the stock options resulted in no change in compensation expense.

-     
the 100,000 stock options issued to a consultant on May 4, 2011, were modified to reduce the exercise price from $0.20 per share to $0.07 per share. The modification of the stock options resulted in no change in compensation expense. This consultant was appointed to the Board of Directors in August 2012.

-     
the Company granted 700,000 stock options to five consultants with exercise prices of $0.07 per share, expiring on June 27, 2017. Of the 700,000 stock options, 500,000 stock options vest on the grant date and 200,000 have the following vesting terms:

-    100,000 vest on May 28, 2013

-    100,000 vest on May 29, 2014

As a result of this grant, the Company incurred $39,354 of stock-based compensation expense which was allocated on the Consolidated Statements of Operations i) $16,616 to general and administrative ii) $20,989 to market development and iii) $1,749 to product development.

On August 15, 2012, a creditor and relative of a Director and Officer exercised 20,000,000 stock options at an exercise of $0.05 per share, which the Company applied against $139,755 in accrued interest due and payable to the creditor on promissory notes and a line of credit.

On August 21, 2012, the Company granted 500,000 stock options to two newly appointed directors of the Company with an exercise price of $0.06 per share and expiry date on August 16, 2017 and vesting immediately upon the grant date. The stock based compensation expense related to these stock options was $29,975.

On December 28, 2012, the Company:

-    
Reduced the exercise price of 20,000,000 stock options granted to the Chairman on March 6, 2011, from $0.07 per share to $0.05 per share. The stock based compensation expense related to the modification of the stock options was immaterial to recognize;

-    
in connection with the Company’s credit agreement with the Chairman of the Company, granted 14,250,000 stock options to the Chairman with an exercise price of $0.05 per share and expiry date on December 28, 2017 and vesting immediately upon the grant date. The stock based compensation expense related to these stock options was $612,361;

-    
granted 50,000,000 stock options to the Chairman, in connection with the Company’s credit agreement with the Chairman of the Company providing for a credit facility of $1,500,000 with interest at 1% per month on amounts drawn down. The stock options have an exercise price of $0.03 per share and expiry date on December 28, 2017 and vesting immediately upon the grant date. The stock based compensation expense related to these stock options was $2,148,944;

-    
granted an option to the Company’s President to acquire 1,000,000 shares of common stock at an exercise price of $0.03 per share to expire on December 28, 2017. The stock based compensation expense related to these stock options was $42,979;

-    
granted an option to a director of the Company to acquire 2,500,000 shares of common stock at an exercise price of $0.03 per share to expire on December 28, 2017. The stock based compensation expense related to these stock options was $107,447; and

-    
reduced the exercise price for previously granted stock options to acquire 37,750,000 shares of the Company’s common stock from $0.07 per share to $0.05 per share. There was no additional compensation expense related to this modification of stock options.

On December 31, 2012, a director of the Company exercised 2,500,000 stock options at an exercise price of $0.03 per share, which the Company applied against accrued interest due and payable to a Director and Officer of the Company upon the Company receiving written approval from the Director and Officer to use interest accrued of $75,000 as consideration for the exercise price of the consultant’s 2,500,000 stock options. As a result of this exercise of stock options, the Company issued 2,500,000 shares of common stock.

A summary of stock option activity is as follows:

   
Year Ended
   
Year Ended
 
   
December 31, 2013
   
December 31, 2012
 
   
Number of
   
Weighted
Average
   
Number of
   
Weighted
Average
 
   
Options
   
Exercise Price
   
Options
   
Exercise Price
 
Outstanding, beginning of period
    125,000,000     $ 0.04       62,800,000     $ 0.04  
Granted
    8,550,000       0.04       84,700,000       0.03  
Exercised
    (3,000,000 )     (0.03 )     (22,500,000 )     (0.05 )
Outstanding, end of period
    130,550,000     $ 0.04       125,000,000     $ 0.04  
                                 
Exercisable, end of period
    127,800,000     $ 0.04       124,800,000     $ 0.04  

 
The options outstanding at December 31, 2013 and 2012 were as follows:

   
December 31, 2013
   
December 31, 2012
       
Expiry Date
 
Options
   
Exercise
Price
   
Intrinsic
Value
   
Options
   
Exercise
Price
   
Intrinsic
Value
 
                                     
March 7, 2015
    20,000,000     $ 0.05       -       20,000,000     $ 0.05       -  
September 30, 2015
    1,200,000     $ 0.25       -       1,200,000     $ 0.25       -  
November 29, 2015
    -     $ 0.05       -       -     $ 0.05       -  
March 6, 2016
    35,750,000     $ 0.05       -       35,750,000     $ 0.05       -  
May 4, 2016
    1,000,000     $ 0.05       -       1,000,000     $ 0.05       -  
May 23, 2016
    100,000     $ 0.05       -       100,000     $ 0.05       -  
May 27, 2017
    700,000     $ 0.05       -       700,000     $ 0.05       -  
May 31, 2017
    500,000     $ 0.25       -       500,000     $ 0.05       -  
August 16, 2017
    500,000     $ 0.05       -       500,000     $ 0.05       -  
December 28, 2017
    14,250,000     $ 0.05       -       14,250,000     $ 0.05       -  
December 28, 2017
    51,000,000     $ 0.03       -       51,000,000     $ 0.03       -  
January 28, 2018
    2,300,000     $ 0.05       -       -       -       -  
March 26, 2018
    500,000     $ 0.03       -       -       -       -  
April 1, 2018
    1,250,000     $ 0.07       -       -       -       -  
April 9, 2018
    1,000,000     $ 0.03       -       -       -       -  
October 1, 2018
    500,000     $ 0.03       -       -       -       -  
Total
    130,550,000     $ 0.04       -       125,000,000     $ 0.04       -  
Weighted Average Remaining
Contractual Life
    3.03                       3.98                  

The Company uses the fair value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined using the Black-Scholes Option Pricing Model based on the following weighted average assumptions:

   
December 31, 2013
   
December 31, 2012
 
             
Risk-free interest rate
    2.52 %     2.52 %
Expected life
 
5 years
   
5 years
 
Expected dividends
    0 %     0 %
Expected volatility
    299 %     306 %
Forfeiture rate
    0 %     0 %

The weighted average fair value for the options granted during 2013 was $0.04 (2012: $0.03).

 
The fair value of the stock options granted was allocated as follows:

   
2013
   
2012
 
             
Interest expense:
           
Directors and relatives of Directors
  $ -     $ 5,377,907  
     Total interest expense director and relative of directors     -       5,377,907  
                 
Selling, general and administration:
               
Directors and officers
    -       180,402  
Non-employees
    65,958       16,615  
     Total interest expense selling, general and administration     65,958       197,017  
                 
Product development:
               
Non-employees
    5,996       1,749  
     Total interest expense product development     5,996       1,749  
                 
Market development :
               
Non-employees
    -       20,989  
     Total interest expense market development     -       20,989  
                 
Professional fees:
               
Non-employees
    172,959       -  
     Total interest expense professional fees     172,959       -  
                Total interest expense stock options granted   $ 244,913     $ 5,597,662