Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE DEBT OBLIGATIONS

v2.4.0.8
CONVERTIBLE DEBT OBLIGATIONS
 6 Months Ended
Jun. 30, 2014
Convertible Debt [Abstract]  
Convertible Debt Disclosure [Text Block]
8.
CONVERTIBLE DEBT OBLIGATIONS
 
 Convertible notes consist of the following:
 
 
 
June 30, 2014
 
December 31, 2013
 
 
 
Principal
 
Interest [1]
 
Total
 
Principal
 
Interest [1]
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8% Convertible Notes
 
$
312,500
 
$
170,039
 
$
482,539
 
$
509,250
 
$
195,723
 
$
704,973
 
12.5% Convertible Notes
 
 
50,000
 
 
20,975
 
 
70,975
 
 
140,500
 
 
64,493
 
 
204,993
 
10% Convertible Notes
 
 
50,000
 
 
13,168
 
 
63,168
 
 
1,229,653
 
 
254,646
 
 
1,484,299
 
Total
 
$
412,500
 
$
204,182
 
$
616,682
 
$
1,879,403
 
$
514,862
 
$
2,394,265
 
 
[1] Accrued interest is included as a component of accrued expenses on the condensed consolidated balance sheets.
 
  During the six months ended June 30, 2014, principal ($656,848) plus interest aggregating $981,834 was repaid in cash, plus principal ($810,054) plus interest aggregating $874,082 was converted to 475,436 shares of Series A Preferred. The fair value of the equity securities issued exceeded the value of the extinguished debt (not converted pursuant to their original terms) by $219,421, which was recorded as a loss on extinguishment.