NOTES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2015

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Notes Payable

Notes payable consist of the following:

	March 31, 2015			December 31, 2014
90 day Convertible Notes (Chairman of the Board)	$	2,498,980		$	2,498,980
24 month Convertible Notes ($100,000 to Board member)		225,000			225,000
10 day Note (Board member)		-			42,500
Series A3 15% OID Convertible Notes and Warrants		14,353			11,765
Series B OID Convertible Notes and Warrants		59,474			56,659
1 Year 15% OID Convertible Notes and Warrants		488,991			244,565
Notes Payable, gross		3,286,798			3,079,469
Less LPA amount		(485,980	)		(485,980	)
Notes Payable, net	$	2,800,818		$	2,593,489

Details of notes payable as of March 31, 2015 are as follows:

	Principal  Amount			Carrying  Value			Cash  Interest  Rate			Common  Stock  Conversion  Price		Maturity  Date
90 day Convertible Notes (Chairman of the Board)	$	2,498,980		$	2,498,980			6	%	$	1.05	Various 2014
24 month Convertible Notes ($100,000 to Board member)		225,000			225,000			6	%		1.05	March 2014 – June 2014
Series A3 15% OID Convertible Notes and Warrants		11,765	(1)		14,353	(1)		None			0.25	January 2015
Series B OID Convertible Notes  and Warrants		80,000			59,474			None			0.23	March 2017
1 Year 15% OID Convertible Notes and Warrants		661,177			488,991			None			0.20	Aug. 2015 – Feb. 2016
Notes Payable, gross	$	3,476,922			3,286,798
Less LPA amount					(485,980	)
Notes Payable, net				$	2,800,818

(1)     Includes $2,588 of accrued loss on conversion of OID note.

Schedule of 90 day Convertible Notes

The Company has issued 90-day notes payable to borrow funds from a director, now the chairman of our Board, as follows:

2013	$	1,188,980
2012		1,210,000
2011		100,000
Total	$	2,498,980

Series A 15% Original Issue Discount Convertible Notes and Warrants [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Estimated Fair Value of Notes Assumptions

We estimated the fair value of the warrants on the issue date using a Black-Scholes pricing model with the following assumptions:

	Warrants
Expected term		2 years
Volatility		184.88	%
Risk Free Rate		0.32	%

Schedule of Proceeds of Notes Allocation

The proceeds of the Notes issued during the three months ended March 31, 2014 were allocated to the components as follows:

	Proceeds allocated at issue date
Private Offering Notes	$	32,390
Private Offering Warrants		14,845
Beneficial Conversion feature		7,765
Total	$	55,000

Schedule of Debt Conversion

Presented below is summary information related to the conversion:

Statement of Operations
Loss on conversion of notes	$	2,588
Accelerated interest expense	$	-
Balance Sheet
Shares issued		-
Principal amount of notes converted	$	11,765

1 Year 15% OID Convertible Notes and Warrants [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Estimated Fair Value of Notes Assumptions

We estimated the fair value of the warrants on the issue date using a Black-Scholes pricing model with the following assumptions:

	Warrants three months ended March 31,2015
Expected term		1 year
Volatility		180.15-185.71	%
Risk Free Rate		0.18-0.22	%

Schedule of Proceeds of Notes Allocation

The proceeds of the Notes were allocated to the components as follows:

	Proceeds allocated at issue date
Private Offering Notes	$	197,521
Private Offering Warrants		46,097
Beneficial Conversion feature		13,382
Total	$	257,000

Series B Original Issue Discount Convertible Notes And Warrants [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Estimated Fair Value of Notes Assumptions

We estimated the fair value of the warrants on the issue date using a Black-Scholes pricing model with the following assumptions:

	Warrants March 20, 2014
Expected term		4 years
Volatility		151.52	%
Risk Free Rate		1.32	%

Schedule of Proceeds of Notes Allocation

The proceeds of the Notes were allocated to the components as follows:

	Proceeds allocated at issue date
Private Offering Notes	$	34,272
Private Offering Warrants		26,811
Beneficial Conversion feature		3,917
Total	$	65,000

As a result of the triggering of the above noted one time anti-dilution provision, the Company reallocated the proceeds of the Notes during the quarter ended December 31, 2014 as follows:

	Proceeds allocated at issue date
Private Offering Notes	$	46,222
Private Offering Warrants		18,778
Beneficial Conversion feature		-
Total	$	65,000