PRIVATE PLACEMENT OFFERING (Tables)

12 Months Ended

Dec. 31, 2013

Private Placement Offering Tables

Allocated to the instruments as follows

Warrant liabilities	$	141,027
Redeemable and Convertible Preferred Stock		1,388,367
Common Stock		470,706
Total allocated gross proceeds:	$	2,000,100

Warrants

	2013				2012
	Number of warrants		Weighted average exercise price		Number of warrants		Weighted average exercise price
Balance at January 1		6,909,000	$	0.15		6,909,000	$	0.15
Issued during the period		-	$	-		-	$	-
Exercised during the period		-	$	-		-	$	-
Expired during the period		-	$	-		-	$	-
Balance at December 31		6,909,000	$	0.15		6,909,000	$	0.15

Summarizes the fair value of the warrants liabilities

Fair values	December 31, 2013		December 31, 2012		At transaction  date
September 7, 2007 financing	$	-	$	-	$	141,027

Assumptions for the valuation of the fair value of the warrant liability

	December 31, 2013		December 31, 2012		At transaction  date
Warrants outstanding		-		-		6,909,000
Exercise price		-		-	$	0.15
Annual dividend yield		-		-		4.01	%
Expected life (years)		-		-		5
Risk-free interest rate		-		-		4.14	%
Expected volatility		-		-		53.94	%