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6. CONVERTIBLE DEBT (Tables)

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Convertible Notes and Warrants potential future financing and fundamental transactions

Convertible Notes

		September 30, 2013				Inception
Closing stock price		$	0.70			$	0.13-0.55
Conversion price		$	0.29			$	0.29
Expected volatility			190	%			185%-190	%
Remaining term (years)			1.83				2.30-2.07
Risk-free rate			0.29	%			0.25%-0.43	%
Expected dividend yield			0	%			0	%

Warrants

		September 30, 2013				Inception
Closing stock price		$	0.70			$	0.13-0.55
Exercise price		$	0.30			$	0.30
Expected volatility			230	%			250	%
Remaining term (years)			4.83				5.30-5.09
Risk-free rate			1.32	%			0.76%-1.61	%
Expected dividend yield			0	%			0	%

Convertible notes

Convertible notes consist of the following at September 30, 2013 and December 31, 2012:

		September 30, 2013				December 31, 2012

Convertible notes		$	5,074,000			$	-
Discount on convertible notes			(5,074,000	)			-
Accumulated amortization of discount			30,071				-
Total convertible notes		$	30,071			$	-