Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents.
The fair value of the conversion option feature associated with the Company’s outstanding convertible debentures at June 30, 2011 and December 31, 2010 was $1,736,541 and $1,860,481, respectively. The Company recorded a change of $170,107 and $372,569  in its accompanying statements of operations for the three and six months ended June 30, 2011, respectively as change in accrued derivative liability, and $100,926 and $265,239 for the three and six months ended June 30, 2010, respectively. The assumptions used in the Black-Scholes option pricing model at June 30, 2011 in connection with the Company’s outstanding convertible debentures are as follows: (1) dividend yield of 0%; (2) expected volatility of 0%, (3) risk-free interest rate of 0.00% - 1.76%, and (4) expected life of 0.00 - 5 years. Interest expense on the Company’s debt for the three and six months ended June 30, 2011 was $85,503 and $176,180, respectively. Interest expense on the Company’s debt for the three and six months ended June 30, 2010 was $57,283 and $119,369, respectively. Interest expense arising from amortization of debt discounts amounted to $ 124,663 and $159,344 during the three and six months ended June 30, 2011, respectively. Interest expense arising from amortization of debt discounts amounted to $ 128,802 and $404,070 during the three and six months ended June 30, 2010, respectively.

The rent expense recorded for the three months ended June 30, 2011 and 2010 was $3,362 and $20,287, respectively. The rent expense recorded for the six months ended June 30, 2011 and 2010 was $19,644 and $23,175, respectively.

The Company has evaluated all subsequent events that occurred up to the time of the Company’s issuance of financial statements and has indentified no items of significance.