| Subsequent Events [Text Block] |
11. Subsequent Events:
The Company has evaluated subsequent events through the date the consolidated financial statements were issued and filed with SEC. The Company has determined that the following events warrant disclosure:
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a)
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On February 5, 2014, a default judgment was rendered against the Company whereby it was ordered to repay $125,000 of loan principal in addition to interest of 8% per annum from January 16, 2011 until the date the loan is repaid along with costs of the action. The loan principal is part of the component of the judgments disclosed in note 6. The interest of approximately $30,000 is not included in note 6 as previously, there was no stated rate of interest on that note. To date, the Company has not repaid any of these amounts owing.
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b)
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On February 7, 2014, the Company:
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i.
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granted a consultant the option to acquire 300,000 shares of common stock at an exercise price of $0.05 per share for a term of five years. Options in respect of 150,000 shares would vest immediately with the balance vesting after 12 months.
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ii.
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granted a consultant the option to acquire 400,000 shares of common stock at an exercise price $0.03 per share for a term of five years. Options vest as follow:
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options in respect of 100,000 shares vest immediately,
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options in respect of 100,000 shares vest at the time a pilot project for the Company’s Health-e-Connect is initiated with a specified corporation,
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options in respect of 100,000 shares vest at the time a software sharing deal has been executed between the Company and a major specified corporation, and
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options in respect of 100,000 shares vest at the time a national, co promotable deal for the Company’s Health-e-Connect has been executed between the Company and a major specified corporation;
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Provided that those performance conditions are met or complied with in form and substance reasonably satisfactory to the Company by March 15, 2015.
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c)
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On March 24, 2014, the Company agreed to the following in exchange for amending the borrowing limit on its line of credit with the Chairman increased from $4,000,000 to $5,500,000:
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i.
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grant options to acquire 83,333,500 shares of common stock of the Company at a price of $0.03 per share for a term of five years,
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ii.
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modify the exercise price of the option to acquire 35,750,000 shares of common stock of the Company, granted June 2012, from $0.05 per share to $0.03 per share,
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iii.
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modify the exercise price of the option to acquire 14,250,000 shares of common stock of the Company, granted December 2012, from $0.05 per share to $0.03 per share,
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iv.
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modify the exercise price of the option granted January 2011 to the spouse of the Chairman, to acquire 20,000,000 shares of common stock of the Company from $0.05 per share to $0.03 per share, and
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v.
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grant options the spouse of the Chairman to acquire 26,666,700 shares of common stock of the Company at an exercise price of $0.03 per share for a term of five years.
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The Company and the Chairman are in the process of amending the line of credit agreement.
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