PRIVATE PLACEMENT OFFERING (Tables)

3 Months Ended

Mar. 31, 2015

Private Placement Offering Tables

Allocated to the instruments as follows

The proceeds of $2,000,100 were 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

The Company entered into an amendment to its warrant agreements to extend the expiration date of the warrants from September 7, 2014 until September 7, 2015.

	March 31, 2015				December 31, 2014
	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		-	$	-		-		$	-
Extended during the period		-	$	0.15		6,909,000		$	-
Expired during the period		-	$	0.15		(6,909,000	)	$	-
Balance at March 31, & December 31,		6,909,000	$	0.15		6,909,000		$	0.15

Summarizes the fair value of the warrants liabilities

The following table summarizes the fair value of the warrants as of the balance sheet date:

Fair values	March 31, 2015		December 31, 2014		At transaction date
September 7, 2007 financing	$	-	$	-	$	141,027

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

The following are the assumptions for the valuation of the fair value of the warrant liability:

	March 31, 2015			December 31, 2014			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	%