PRIVATE PLACEMENT OFFERING (Tables)

3 Months Ended

Mar. 31, 2014

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

	2014				2013
	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 March 31		6,909,000	$	0.15		6,909,000	$	0.15

Summarizes the fair value of the warrants liabilities

Fair values	March 31, 2014		December 31, 2013		At transaction date
September 7, 2007 financing	$	-	$	-	$	141,027

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

	March 31, 2014			December 31, 2013			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	%