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6. CONVERTIBLE DEBT (Tables)
 3 Months Ended
Mar. 31, 2014
Notes to Financial Statements  
Convertible Notes and Warrants potential future financing and fundamental transactions

Convertible Notes

 

   

March 31,

2014

     Inception  
Closing stock price   $ 0.34     $ 0.13-0.55  
Conversion price   $ 0.29     $ 0.29  
Expected volatility     175 %     185%-190 %
Remaining term (years)     1.33       2.30-2.07  
Risk-free rate     0.24 %     0.25%-0.43 %
Expected dividend yield     0 %     0 %

 
Convertible notes

Convertible notes consist of the following at March 31, 2014 and December 31, 2013:

 

   

March 31,

2014

    

December 31,

2013

  
             
Convertible notes   $ 5,074,000     $ 5,074,000  
Initial Discount on convertible notes     (5,074,000 )     (5,074,000 )
Accumulated amortization of discount     145,410       70,442  
Total convertible notes, net   $ 145,410     $ 70,442