Annual report pursuant to Section 13 and 15(d)

Accrued Compensation

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Accrued Compensation
12 Months Ended
Dec. 31, 2013
Compensation Related Costs [Abstract]  
Accrued Compensation
Note 18 — Accrued Compensation
 
Accrued compensation represents amounts owed to officers of the Company for services rendered that remain outstanding. The principal is not subject to a fixed repayment schedule, and interest on the outstanding balances is payable at 8% per annum, compounding monthly. The respective interest amounts are included in Accrued Interest, under the Long-Term Liabilities. The unpaid principal amounts are shown as Long-Term Liabilities on the consolidated balance sheet.
 
 
 
Accrued
Compensation
 
Accrued Interest
 
 
 
 
 
 
 
 
 
Balance as at December 31, 2011
 
$
810,096
 
$
339,323
 
Additions 2012
 
 
200,000
 
 
103,315
 
Subtractions 2012
 
 
 
 
 
Balance as at December 31, 2012
 
 
1,010,096
 
 
442,638
 
Additions 2013
 
 
116,667
 
 
73,168
 
Subtractions 2013
 
 
(1,126,763)
 
 
(515,806)
 
Balance as at December 31, 2013
 
$
 
$
 
 
On March 27, 2013, the Company entered into a deferred compensation deferral and conversion option agreements with two of its officers, which agreements were subject to the closing of the Company’s planned public stock offering and which agreements were effective upon such closing on August 5, 2013. Pursuant to those agreements the officers each converted the entire long-term portion their deferred compensation amounts plus accrued interest into shares of the Company’s common stock and related warrants, at the conversion price of $2.00, equal to the offering price of the Company’s August 5, 2015 public stock offering.  Current accrued compensation and general accrued wages as at December 31, 2013 and 2012 is included in Accrued Expenses – please refer to Note 16.