Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
The effects of temporary differences that gave rise to significant portions of deferred tax assets at December 31, 2012 and 2011, are approximately as follows:
 
 
 
December 31, 2012
 
December 31, 2011
 
Net operating loss carry forward
 
$
8,871,000
 
$
6,061,000
 
Amortization of debt discount and debt issue costs
 
 
3,732,000
 
 
1,465,000
 
Stock options and warrants
 
 
971,000
 
 
971,000
 
Depreciation
 
 
74,000
 
 
-
 
Bad debt
 
 
9,000
 
 
73,000
 
Valuation allowance
 
 
(13,657,000)
 
 
(8,570,000)
 
Net deferred tax asset
 
$
-
 
$
-
 
Tax Expense Differences From Expected Tax Enpense [Table Text Block]
The Company’s tax expense differs from the “expected” tax expense for the years ended December 31, 2012 and 2011, (computed by applying the federal corporate tax rate of 34% to loss before taxes and 4.63% for Colorado State Corporate Taxes, the blended rate used was 37.1%), are approximately as follows:
 
 
 
December 31, 2012
 
December 31, 2011
 
Federal tax benefit at statutory rate
 
$
(6,493,000)
 
$
(7,916,000)
 
State tax benefit – net of federal tax effect
 
 
(418,000)
 
 
(501,000)
 
Derivative expense
 
 
1,499,000
 
 
1,625,000
 
Change in fair value of derivative liability
 
 
(2,006,000)
 
 
(1,755,000)
 
Loss on settlement of accounts payable
 
 
1,495,000
 
 
1,313,000
 
Non-deductible stock compensation
 
 
791,000
 
 
1,091,000
 
Other non-deductible expenses
 
 
45,000
 
 
68,000
 
Change in valuation allowance
 
 
5,087,000
 
 
6,075,000
 
Income tax benefit
 
$
-
 
$
-