Annual report pursuant to section 13 and 15(d)

3. Summary of Significant Accounting Policies (Tables)

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3. Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
Schedule of property and equipment

At December 31, 2012 and 2011, property and equipment is comprised of the following:

    2012   2011
Network equipment $ 3,318,217 $ 3,371,296
Furniture and fixtures   334,564   323,979
Computer equipment and software   1,835,491   1,219,897
Vehicles   55,884   -
Leasehold improvements   949,190   905,333
Assets in Progress   274,009   22,491
Total   6,767,355   5,842,996
Less accumulated depreciation and amortization   (4,360,411)   (5,011,594)
Total $ 2,406,944 $ 831,402

 

Depreciation expense was approximately and $464,000 and $768,000 for the years ended December 31, 2012 and 2011, respectively.

Schedule of earnings per share

The following securities were excluded in the calculation of diluted loss per share because their inclusion would be antidilutive:

  2012 2011
Warrants           89,974,479      47,615,186
Stock options             8,864,261        6,634,261
Convertible preferred stock           70,064,862        7,021,512
          168,903,602      61,270,959
Schedule of stock based compensation
  2012 2011
Expenses associated with stock options granted to employees and directors  $                  89,929  $        97,000
Common stock issued in connection with an employment agreement                      50,000                    -   
Common stock or warrants issued or issuable for services rendered                      59,825                    -   
   $                199,754  $        97,000
Schedule of fair value of each common stock option grant on the date of grant using the Black-Scholes option pricing model
  2012   2011
Dividend yield 0.00%   0.00%
Stock volatility 138%   151%
Average Risk-free interest rate 1.74%   1.83%
Average option term (years) 3-4   3-4