0001615774-14-000313.txt : 20141114 0001615774-14-000313.hdr.sgml : 20141114 20141114100616 ACCESSION NUMBER: 0001615774-14-000313 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20140930 FILED AS OF DATE: 20141114 DATE AS OF CHANGE: 20141114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EHOUSE GLOBAL, INC. CENTRAL INDEX KEY: 0001452580 STANDARD INDUSTRIAL CLASSIFICATION: PAPERBOARD CONTAINERS & BOXES [2650] IRS NUMBER: 571221013 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55113 FILM NUMBER: 141221114 BUSINESS ADDRESS: STREET 1: 9974 SCRIPPS RANCH BLVD. #182 CITY: SAN DIEGO STATE: CA ZIP: 92131 BUSINESS PHONE: (858) 459-0770 MAIL ADDRESS: STREET 1: 9974 SCRIPPS RANCH BLVD. #182 CITY: SAN DIEGO STATE: CA ZIP: 92131 FORMER COMPANY: FORMER CONFORMED NAME: EHOUSEGLOBAL, INC. DATE OF NAME CHANGE: 20130314 FORMER COMPANY: FORMER CONFORMED NAME: VETERANS IN PACKAGING, INC. DATE OF NAME CHANGE: 20081218 10-Q 1 s100402_10q.htm FORM 10-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

 

For the quarterly period ended: September 30, 2014

 

Commission file number: 333-158584

 

EHOUSE GLOBAL, INC.
 
(Exact name of Registrant as specified in its Charter)

 

Nevada 90-1066766
(State or other Jurisdiction of Incorporation) (I.R.S. Employer Identification Number)

 

9974 Scripps Ranch Blvd. # 182 San Diego, CA 92131
(Address of Principal Executive Offices) (Zip Code)

 

858-459-0770
(Issuer’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months ( or for such shorter period that the registrant was required to file such reports ), and (2) has been subject to such filing requirements for the past 90 days.                                 Yes.     x                      No ¨

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of the Regulation S-T ( 232.405 of this chapter ) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                                                                                                                             Yes     x                       No ¨

 

Indicate by a check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer. See definition of “accelerated filer” and “large accelerated filer “in Rule 12b-2 of the Exchange Act (Check one)

 

Large accelerated filer ¨ Accelerated filer ¨
Non-accelerated filer ¨ Smaller reporting company x

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Act of 1934) (check one)                                                                                                                  Yes ¨                          No x

 

The number of shares of the Registrant’s Common Stock outstanding as of November 14, 2014 was 1,195,840,583 all of one class, $0.001 par value per share.

 

 
 

 

EHOUSE GLOBAL, INC.

 

Table of Contents

 

    Page
     
PART I — FINANCIAL INFORMATION    
     
Item 1. Financial Statements   F-2
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   14
     
Item 3. Quantitative and Qualitative Disclosures about Market Risk   17
     
Item 4: Control and Procedures   17
     
PART II — OTHER INFORMATION    
     
Item 1 Legal Proceedings   18
     
Item 1A Risk Factors   18
     
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds   18
     
Item 3 Defaults upon Senior Securities   19
     
Item 4 Mine Safety Disclosures   19
     
Item 5 Other Information   20
     
Item 6 Exhibits   20

 

 
 

  

EHOUSE GLOBAL, INC.

FINANCIAL STATEMENTS

TABLE OF CONTENTS

 

Contents Page
   
Balance Sheets as of September 30, 2014 and December 31, 2013 F-2
   
Statements of Operations for the three month periods ended September 30, 2014 and 2013 F-3
   
Statement of Operations for the nine month periods ended September 30, 2014 and 2013 F-3
   
Statement of Stockholder’s Equity for the period from December 31, 2013 to September 30, 2014 F-4
   
Statements of Cash Flows for the nine month periods ended September 30, 2014  and 2013. F-5
   
Notes to the Financial Statements F-6

 

F – 1
 

 

ITEM 1. Financial Information

 

EHOUSE GLOBAL, INC.

dba Nutraliquids

Balance Sheets

(unaudited)

 

   September 30,   December 31, 
   2014   2013 
ASSETS          
Current Assets :          
Cash  $124,086   $14,779 
Prepaid expenses   -    5,664 
Investment receivable   27,473    - 
Debt Issuance Costs   11,020    3,122 
Total Current Assets   162,579    23,565 
Furniture and Equipment   935    - 
           
Total Assets  $163,514   $23,565 
           
LIABILITIES          
Current Liabilities:          
Accounts payable & accrued expenses  $34,930   $30,600 
Notes Payable   -    100,000 
Notes Payable - related party   75,000    75,000 
Convertible Debt, Net of debt discount of $ 270,972 and $ 46,399 respectively   327,901    6,601 
Derivative Liability - Warrants   7,994    - 
Derivatives Liability   495,858    89,372 
Total current liabilities   941,683    301,573 
           
STOCKHOLDERS' DEFICIT          
           
Preferred Stock :  $0.001 par value, 1,000,000 shares authorized, 500,000 and 0 issued and outstanding   500    - 
Common stock: $ 0.001 par value, 2,500,000,000  shares authorized; 7,238,879 and 998,000 shares issued and outstanding at September 30, 2014 and December 31, 2013   7,239    998 
Additional paid- in capital   1,675,160    118,802 
Accumulated deficit   (2,461,068)   (397,808)
Total Stockholders' deficit   (778,169)   (278,008)
Total liabilities and stockholders’  $163,514   $23,565 

 

The accompanying notes are an integral part of these Financial Statements.

 

F – 2
 

  

EHOUSE GLOBAL, INC.

dba Nutraliquids

Statement of Operations

(unaudited)

 

   For the Three Months Ended   For the Nine Months Ended 
   September 30,   September 30, 
   2014   2013   2014   2013 
Operating expenses:                    
General and administrative expenses  $210,151   $98,018   $845,328   $116,657 
Other expenses ( income )   0    15,000    (1,620)   (11,632)
Total operating expenses   210,151    113,018    843,708    105,025 
Other ( Income ) Expense                    
Interest expense   168,775    4,333    548,292    4,333 
Derivative interest expense   199,046         1,226,180    - 
Change in fair value of derivatives liabilities   116,092    -    (554,920)   - 
Total other ( Income) expense   483,913    4,333    1,219,552    4,333 
Net loss before taxes   (694,064)   (117,351)   (2,063,260)   (109,358)
Income taxes   -    -    -    - 
Net Income (Loss)  $(694,064)  $(117,351)  $(2,063,260)  $(109,358)
                     
Net Income (Loss) per common share :                    
Basic  $(0.19)  $(0.12)  $(0.90)  $(0.11)
                     
Weighted Average Number of Common Shares Outstanding   3,721,935    998,000    2,296,322    991,333 

 

* Gives retroactive effect to 34 to 1 forward stock split declared in January, 2013.

 

The accompanying notes are an integral part of these Financial Statements

 

F – 3
 

 

EHOUSE GLOBAL, INC.

dba Nutraliquids

Statement of Stockholders Equity

(unaudited)

 

                   Additional         
   Preferred       Common       Paid - in   Accumulated     
   Shares   Amount   Shares   Amount   Capital   (Deficit)   Total 
Balances, December 31, 2013             998,000   $998$   118,802   $(397,808)  $(278,008)
                                    
Preferred Stock Issued for services   500,000   $500              190,631    0    191,131 
                                    
Common stock issued for services ($0.12/share)             5,000    5    62,495         62,500 
                                    
Reclassification of derivative liability associated with convertible debt                       933,153         933,153 
Common stock issued to Investment company             400,000    400    49,600         50,000 
                                    
Convertible debt and accrued interest converted into common stock             5,835,879    5,836    320,479         326,315 
                                    
Net Loss                            (2,063,260)   (2,063,260)
                                    
Balances, September 30, 2014   500,000   $500    7,238,879   $7,239$   1,675,160   $(2,461,068)  $(778,169)

 

F – 4
 

 

EHOUSE GLOBAL, INC.

dba Nutraliquids

Statements of Cash Flows

For the Nine Months Ended September 30, 2014 and 2013

( unaudited )

 

   2014   2013 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net Income  ( Loss )  $(2,063,260)  $(109,358)
Settlement of Debt   -      
Adjustments to reconcile Net ( Loss) to Net Cash used in operating activities :          
Depreciation expense   245      
Stock based compensation   253,631      
Amortization of debt offering costs and discounts   505,803      
Derivative interest expense   1,226,180      
Change in fair value of derivative liabilities   (554,920)     
Change in operating assets and liabilities :          
Prepaid expenses   5,664    5,985 
Accounts payable and acrrued expenses   32,867      
Net Cash Used in Operating Activities   (593,790)   (103,373)
           
CASH FROM INVESTING ACTIVITIES          
Purchase of Equipment   (1,180)   (4,026)
Net cash provided by investing activities   (1,180)   (4,026)
           
CASH FROM FINANCING ACTIVITIES-          
Proceeds from sale of common stock   22,527    - 
Proceeds from Note Payable        162,000 
Direct offerring costs paid   (24,750)     
Issuance of Convertible Notes Payable   706,500      
Net Cash provided by Financing Activities  $704,277    162,000 
           
CHANGE IN CASH  $109,307   $54,601 
CASH AT BEGINNING OF PERIOD   14,779    1,606 
CASH AT END OF PERIOD  $124,086   $56,207 
Supplementary disclosure of non-cash financing activity:          
Non-cash additions to convertible note balance   5,000      
Reclassification of derivative liability to additional paid in capital   933,153      
Note Payable reclassified to convertible debt   100,000      
Shares issued in conversion of convertible debt and accrued interest   326,315      
Debt discount on convertible note accounted for as a derivative liability   730,040      
Issuance of shares in connection with loan        1,000 

 

See accompanying notes to Financial Statements.

 

F – 5
 

 

EHOUSE GLOBAL, INC.

dba Nutraliquids

Notes to Financial Statements

( unaudited )

 

NOTE 1 - ACCOUNTING POLICIES AND BASIS OF PRESENTATION

 

Ehouse Global, Inc. (“the Company” ) prepared these financial statements in accordance with both accounting principles generally accepted in the United States ( “ U.S. GAAP”) for interim financial information and the instructions to Form 10Q and Rule 10-01 of Regulation S-X. Therefore, the financial statements do not include all disclosures required by generally accepted accounting principles. However, the Company has recorded all transactions and adjustments necessary to present fairly the financial statements included in this Form 10Q. The adjustments made are normal and recurring. The following notes describe only the material changes in accounting policies, account details or financial statement notes during the first nine months of 2014. Therefore, please read these financial statements and notes to the financial statements together with the audited financial statements and notes thereto in our Annual Report on Form 10K for the full year ended December 31, 2013. The income statement for the nine months ended September 30, 2014 cannot necessarily be used to project results for the full year.

 

NOTE 2 – BUSINESS OPERATIONS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The accompanying unaudited condensed financial statements have been prepared with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.

 

It is management’s opinion, however, that all material adjustments (consisting of normal and recurring adjustments) have been made which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the full year.

 

Impact of New Accounting Standards

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

F – 6
 

 

Estimates

  

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Derivative Liabilities

 

We value derivative liabilities using a multinomial lattice model. The model is based on a probability weighted discounted cash flow model of future projections of various outcomes. Some of the key assumptions include the likelihood of future financing, stock price volatility, and discount rates.

 

Loss per Share

 

Basic earnings per share amounts are calculated based on the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is based on the weighted average numbers of shares of common stock outstanding for the periods, including dilutive effects of stock options, warrants granted and convertible preferred stock. Dilutive options and warrants that are issued during a period or that expire or are canceled during a period are reflected in the computations for the time they were outstanding during the periods being reported. Since Ehouse has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive and therefore are not included in the calculation

 

On November 6, 2014 the Board of Directors and majority shareholders approved an Amendment to the Articles of Incorporation to increase the total authorized capital from 2,500,000,000 shares of common stock, par value $ 0.001, to 5,000,000,000 shares of common Stock, and effectuate a reverse stock split of the issued and outstanding shares of common stock on a 1 for 100 basis. The EPS calculation based on share number after reverse split.

 

Subsequent Events

 

The Company follows the guidance in FASB ASC 855-10-50 for the disclosure of subsequent events from the date of the balance sheet through the date when the financial statements are issued or available to be issued.

 

NOTE 3 – GOING CONCERN

 

The accompanying financial statements have been prepared assuming that we will continue as a going concern. As reflected in the accompanying financial statements, we have very limited financial resources, with working capital and net shareholder deficits and had generated no revenue through September 30, 2014.

 

We have actively developed and plan to introduce sixteen different liquid nutritional products into the market. While we are undertaking our business plan to generate additional revenues, our cash position may not be sufficient to support our basic business plan and product distribution efforts. Management believes that the actions presently underway to introduce our products to the marketplace have a realistic chance of succeeding. While we believe in the viability of our strategy to increase revenues and in our ability to raise additional funds, there can be no assurances to that effect. Our ability to continue as a going concern is dependent upon our ability to achieve profitable operations or obtain adequate financing.

 

F – 7
 

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

 

NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts payable and accrued expenses, approximate their fair values because of the current nature of these instruments. Debt approximates fair value based on interest rates available for similar financial arrangements. Derivative liabilities which have been bifurcated from host convertible debt agreements are presented at fair value.

 

The following is the major category of liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 using quoted prices in active markets for identical liabilities ( Level 1 ) ; significant other observable inputs ( Level 2 ); and significant unobservable inputs ( Level 3 ) :

 

      September 30, 2014   December 31, 2013 
              
  Derivative Liabilities  Level 3  $495,858   $89,372 

 

NOTE 5 – CONVERTIBLE DEBT

 

On January 31, 2014, the debt holder entered into a securities settlement agreement whereby the Note was transferred over to a third party. In connection with the transfer, an additional $ 5,000 was recorded which was treated as debt issuance costs, interest was changed to a guaranteed 10% and the conversion clause was added. The conversion price equals 25% of the lowest traded price during the 20 trading days prior to conversion.

 

The Company identified conversion features embedded within this convertible debt. The Company has determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability and recorded a derivative liability and expense of $ 518,396 on the day of the amendment – See Note 7.

 

On November 27, 2013 the Company entered into an agreement whereby the Company will issue up to $ 53,000 in a convertible note. The note matures on August 27, 2014 and bears an interest rate of 8%. The conversion price equals the “Variable Conversion Price “, which is 58% of the “Market Price”, which is the average of the three lowest closing bid prices for the common stock during the fifteen ( 15) trading day period prior to the conversion. The holder converted the principal of the note and most of the accrued interest to common shares during the second quarter of 2014. The Company received $ 50,000 proceeds, less debt issuance costs of $ 3,000. As of September 30, 2014 and December 31, 2013, the convertible note balance and accrued interest is $ 307 and $ 53,388 respectively.

 

F – 8
 

 

On January 28, 2014 the Company entered into an agreement whereby the Company will issue Up to $ 78,500 in a convertible note. The note matures on October 30, 2014 and bears interest at 8%. The conversion price equals the “Variable Conversion Price”, which is 58% of the “Market Price”, which is the average of the three lowest closing bid prices for the common stock during the fifteen (15) trading day period prior to the conversion. The Company received $ 75,000 proceeds, less debt issuance costs of $ 3,500 on February 11, 2014. As of September 30, 2014 the convertible note balance and accrued interest balance is $ 437.

 

On January 30, 2014, the Company entered into an agreement whereby the Company will issue up to $ 335,000 in a convertible note subject to a $ 35,000 original issue discount (OID). The note matures on January 30, 2016, and bears an interest rate of 0% if the note is repaid on or before 90 days from the effective date. If the note is not repaid within 90 days, a one-time interest charge of 12% will be applied to the principal. The conversion price equals the lesser of $ 0.012 or the “Variable Conversion Price”, which is 60% of the “Market Price”, which is the lowest trading prices for the common stock during the twenty-five (25) trading day period prior to the conversion. The Company received $ 75,000 proceeds through September 30, 2014. On September 30, 2014 the note balance and accrued interest was $ 8,700.

 

On January 31, 2014, the Company entered into an agreement whereby the Company will issue up to $ 100,000 in a convertible note. The note matures on July 31, 2014 and bears an interest rate of 10%. The conversion price equals the “Variable Conversion Price”, which is 25% of the “Market Price”. Which is the lowest closing price for the common stock during the twenty (20) day trading period prior to the conversion. The Company received $ 50,000 proceeds on January 31, 2014 and the remaining $ 50,000 on February 14, 2014. As of September 30, 2014 the convertible note balance and accrued interest is $ 41,800.

 

On March 17, 2014, the Company entered into an agreement whereby the Company would issue a note for $ 45,000 at 8% which becomes due on March 17, 2015, at 8% interest. The conversion price equals 55% of the market price, which is the low bid during the 15 trading days prior to the conversion. The Note balance and accrued interest as of September 30, 2014 was $ 39,967. The Company received $ 42,750 on March 17, 2014.

 

On April 7, 2014, the Company entered into an agreement whereby the Company will issue up to $ 112,000 in a convertible note. The note matures on October 7, 2014 and bears interest at an annual rate of 12%. The conversion price equals 50% of the market price, which is the lowest Trading price over the previous 20 trading days. The note balance and accrued interest at September 30, 2014 is $ 118,481. The Company received $ 100,000 on April 7, 2014.

 

On April 8, 2014, the Company entered into an agreement whereby the Company will issue up to $ 53,000 in a convertible note. The note bears interest of 8% per year, and is due on January 14, 2015. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days. The Company received $ 50,000 on April 8, 2014. On September 30, 2014 the note balance and accrued interest was $ 55,033.

 

F – 9
 

 

On April 11, 2014, the Company entered into an agreement whereby the Company will issue up to $ 57,836 in a convertible note. The note matures on April 11, 2016 and bears interest at an annual rate of 12%. The conversion price equals 60% of the market price, which is the lowest trading price over the previous 25 trading days or $ 0.012. The Company received $ 44,776 in cash on April 11, 2014. The note balance and accrued interest at September 30, 2014 was $ 61,106.

 

On May 21, 2014, the Company entered into an agreement whereby the Company will issue up to $ 26,500 in a convertible note. The note matures on May 21, 2015 and bears interest at an annual rate of 8%. The conversion price equals 55% of the market price, which is the lowest bid over the previous 15 trading days. The note and accrued interest balance at September 30, 2014 was $ 27,266. The Company received $ 25,000 in cash on May 21, 2014.

 

On May 23, 2014, the Company entered into an agreement whereby the Company will issue up to $ 37,500 in a convertible note. The note bears interest at 0% and matures on November 3, 2014. The conversion price equals 58% of the market price, which is the average of the three Lowest trading prices over the previous 15 trading days. At September 30, 2014 the note and Accrued interest balance was $ 37,500. The Company received $ 30,000 cash on May 23, 2014.

 

On June 27, 2014, the Company entered into an agreement whereby the Company will issue up to $ 25,000 in a convertible note. The note bears interest of 8% per year. The Company received $ 22,500 on June 27, 2014. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days. On September 30, 2014 the note and accrued interest balance was $ 25,520.

 

On July 3, 2014, the Company entered into an agreement whereby the Company will issue a note for $ 37,500 with interest at 0% that is due on January 3, 2015. The conversion price is 40% of the lowest trading prices during the 20 days prior to conversion. The Company received $ 25,000 cash on July 9, 2014. This note includes Warrants, and the note balance at September 30, 2014 was $ 37,500.

 

On August 5, 2014, the Company entered into an agreement whereby the Company will issue a convertible note for 32,500 with 8% interest per year that is due on May 7, 2015. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous fifteen days before the conversion. The Company received $ 25,000 on August 1, 2014, and the Note and accrued interest balance at September 30, 2014 was $ 32,899.

 

On September 3, 2014, the Company entered into an agreement whereby the Company will issue a convertible note for $28,831 with 12% interest due on August 5, 2016. The conversion price is 60% of the lowest trading price over the 25 days prior to the conversion, or .012. The note balance and accrued interest at September 30, 2014 was $ 29,361.

 

On September 2, 2014, the Company entered into an agreement whereby the Company will issue a convertible note withat 0% interest due on March 30, 2015 plus Warrants. The conversion price is 55% of the lowest trading prices during the 25 days prior to conversion. The note balance at September 30, 2014 was $ 58,500.

 

F – 10
 

 

On September 3, 2014, the Company entered into an agreement whereby the Company will issue a convertible note for $50,000 with 12% interest due on March 3, 2015. The conversion price is 48% of the lowest trading price in the 15 days preceding the trade. On September 30, 2014 the note balance and accrued interest was $ 50,444.

 

DEBT ISSUE COSTS

 

During the nine months ended September 30, 2014, and the year ended December 31, 2013. the Company paid debt issue costs totaling $ 24,750 and $ 4,000, which includes non-cash additions of $ 5,000 during the nine months ended September 30, 2014 and fees paid through the issuance of common stock in the amount of $ 1,000 during the year ended December 31, 2013, respectively.

 

The following is a summary of the Company’s debt issue costs:

 

   Nine months   Year ended 
   ended   December 31, 
   September 30, 2014   2013 
 Debt issue costs  $28,750   $4,000 
 Accumulated amortization of debt issue costs   (17,730)   (878)
 Debt issue costs, net   11,020    3,122 

 

DEBT DISCOUNT

 

During the nine months ended September 30, 2014 and the year ended December 31, 2013 the Company recorded debt discounts totaling $ 730,040 and $ 53,000, respectively.

 

The debt discount recorded pertains to convertible debt that contains embedded conversion options that are required to be bifurcated and reported at fair value and original issue discounts.

 

The Company amortized $ 488,951 and $ 6,601 during nine months ended September 30, 2014 and 2013, respectively, to amortization of debt discount expense and relieved $ 16,514 during the nine months ended September 30, 2014 due to conversions.

 

   As of   As of 
   September 30, 2014   December 31, 2013 
Debt discount  $783,040   $53,000 
Accumulated amortization of debt discount   495,552    (6,601)
Elimination of debt discount due to conversions   (16,514)   0 
Debt discount – net  $270,972   $46,399 

 

F – 11
 

 

 

NOTE 6 - DERIVATIVE LIABILITIES

 

The Company identified conversion features embedded within this convertible debt. The Company has determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability.

 

As a result of the application of ASC No. 815, the fair value of the conversion feature is Summarized as follows:

 

Derivative liability – December 31, 2012  $- 
Fair value at the commitment date for convertible instruments   144,346 
Change in fair value of embedded derivative liability   (54,974)
Derivative liability – December 31, 2013  $89,372 
      
Fair value at the commitment date for convertible notes  $2,018,342 
Reclassification of derivative liability associated with convertible debt that ceased being a derivative liability to additional paid in capital   (933,153)
Fair value mark to market adjustment for convertible debt   (589,332)
Derivative liability – September 30, 2014  $495,857 

 

The Company recorded the debt discount to the extent of the gross proceeds raised, and expensed immediately the remaining value of the derivative liability as it exceeded the gross proceeds of the note. The Company recorded a derivative interest expense for the nine months ended September 30, 2014 and 2013 of $ 1,226,180 and $ 91,346, respectively.

 

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of September 30, 2014:

 

Assumption  Commitment Date  September 30, 2014
Expected dividends:  0%  0%
Expected volatility:  192% -415%  264%
Expected term (years)  0.5 – 2 years  0.12 – 1.75 years
Risk free interest rate:  0.1% - .13%  0.12 – 1.75 years

 

NOTE 7– STOCKHOLDER’S EQUITY

 

Common Stock

 

On March 19, 2014, the Company entered into a consulting agreement for the consultant to provide the Company general consulting services which would include financing introductions, business development opportunities and general marketing activities. In connection with this agreement, during the nine months ended September 30, 2014, the Company issued 5000 shares values at $ 62,500. The fair value of the stock issuance was based upon the quoted closing price on the date of issuance.

 

F – 12
 

  

On June 25, 2014, the Company filed an amendment to the Company’s Articles of Incorporation with the Secretary of State of Nevada, to increase the Company’s authorized common stock from seven hundred fifty million ( 750,000,000) shares of common stock, par value $ 0.001, to two billion five hundred million (2,500,000,000) shares of commons stock, par value $ 0.001 per share.

 

During the first nine months of 2014, the Company issued common stock for conversions of debt and accrued interest as noted earlier. The total number of shares issued during the first nine months of 2014 totaled 5,835,879 in exchange for $ 326,315 in convertible debt and accrued interest.

 

Series A Preferred Stock

 

In 2013, the Company determined that it was in their best interests to file a Certificate of Designation that authorized the issuance of up to one million (1,000,000) shares of a new series of preferred stock, par value $ 0.001 per share, designated as “ Series A Preferred Stock”.

 

Each holder of outstanding shares of Series A Preferred Stock shall be entitled to five hundred ( 500) votes for each share of Series A Preferred Stock held on the record date for the determination of stockholders entitled to vote at each meeting of stockholders of the Company; No liquidation value and no rights or dividends.

 

On March 18, 2014, the Company issued an aggregate of 500,000 shares of Series A Preferred Stock to the Company’s President, Chief Executive officer, Secretary and Treasurer, in consideration for services rendered to the Company, including for an as an incentive to continue To assist and provide services to the Company. Based upon the voting control obtained, the Company recorded stock compensation of $ 191,131.

 

NOTE 8 – SUBSEQUENT EVENTS

 

On November 6, 2014 the Board of Directors and majority shareholders approved an Amendment to the Articles of Incorporation to increase the total authorized capital from 2,500,000,000 shares of common stock, par value $ 0.001, to 5,000,000,000 shares of common Stock, and effectuate a reverse stock split of the issued and outstanding shares of common stock on a 1 for 100 basis. These actions were approved by written consent in accordance with Nevada Revised Statutes. Pursuant to Rule 14 (c)-2 of the Securities Exchange Act of 1934,these proposals will not be adopted until a date ten days after the Information Statement was mailed to shareholders about November 6, 2014.

 

On November 6, 2014, a Schedule 14c was filed with the SEC reporting that the actual number of common shares outstanding was 1,195,840,583 and that after the Reverse Split, the number of common shares would be 11,958,406. The Series A Preferred Stock would remain the same at 500,000 and the Series B Preferred stock would remain at 100,000 shares outstanding.

 

The Company has evaluated all events that occurred after the balance sheet date of September 30, 2014, through November 11, 2014, the date that these financial statements were available to be issued.

 

F – 13
 

  

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Note Regarding Forward-Looking Statements

 

Except for the historical information contained herein, the matters addressed in this Item 2 constitute “forward- looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are subject to a variety of risks and uncertainties, including those discussed below under the headings “Risk Factors” and elsewhere in this Quarterly Report on Form 10Q, that could cause actual results to differ materially from those anticipated by the Company’s management. The Private Securities Litigation Reform Act of 1995 (the “Act”) provides certain “safe harbor” provisions for forward-looking statements. All forward-looking statements in this Quarterly Report on Form 10Q are made pursuant to the Act. The Company undertakes no obligation to publicly release the results of any revisions to its forward-looking statements be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results. The Company cautions readers that important factors may affect the Company’s actual results and could cause such results to differ materially from forward-looking statements made by or on behalf of the Company. These factors include the Company’s lack of historically profitable operations, dependence on key personnel, the success of the Company’s business, ability to manage anticipated growth and other factors identified in the Company’s filings with the Securities and Exchange Commission, press releases, and /or other public communications. Unless the context otherwise requires, the words “Ehouse” the “Company”, “we”, “us”, and “our”, refer to E House Global, Inc.

 

Operations

 

Nutraliquids is a development stage business that commenced formal operations on November 10, 2010. Prior to commencing formal operations, its President, Scott Corlett, and some colleagues incurred costs of approximately $ 500,000 to develop the idea of creating a comprehensive line of natural liquids dietary aids and nutritional supplements which could be packaged and sold in single serving pouches. These costs were incurred prior to the commencement of the formal operations and are not included in any of the Company’s financial statements.

 

Since commencing formal operations, the Company has continued developing the product line, developed marketing approaches, and has located entities to manufacture products and packaging and distribute finished products. While no written agreements have been executed, the Company is confident that it has the operational structure in place.

 

From a marketing perspective, we will emphasize large supermarket and convenience store chains and will also sell product on the Internet. The emphasis since developing the product line has been to obtain sources of debt and/or equity financing to enable the production and distribution of our products as well as undertaking a formal marketing program. We are actively seeking such funds but cannot provide a likely forecast as to the timing or success of our efforts. We will commence production and distribution as soon as funds are available to us.

 

14
 

 

Results of Operations

 

For the nine months ended September 30, 2014 and September 30, 2013

 

A summary of our operations for the nine months ended September 30, 2014 and 2013 follows:

 

   2014   2013 
         
Revenue  $-   $- 
Operating expenses   843,708    105,025 
Other (Income) Expense   1,219,552    4,333 
Net Income (Loss)  $(2,063,260)  $(109,358)

 

Other Income (Expense) for the nine months ended September 30, 2014 consist of the following:

 

Interest Expense  $(548,292)
Derivative Interest Expense   (1,226,180)
Change in fair value of embedded derivative liabilities   554,920 
Total  $(1,219,552)

 

Operating Expenses

 

Total operating expenses for the nine months ended September 30, 2014 and September 30, 2013 were $ 843,708 and $ 105,025 respectively, representing an increase of $ 738,683. This increase in total operating expenses is mostly attributable to shares issued for services.

 

Other Expenses

 

Other expenses for the nine months ended September 30, 2014 and September 30, 2013 were $ 1,219,552 and $ 4,333 respectively. For the nine months ended September 30, 2014, other expenses were due to derivative interest expense of 1,226,180, interest expense of $ 548,292, and changes in derivative liabilities of $ (554,920).

 

Net Loss

 

Net loss for the nine months ended September 30, 2014 and September 30, 2013 were ($ 2,063,260) and $ ($ 109,358) respectively. The increase in net loss is mostly attributable to the increase in operating expenses and derivatives expenses.

 

Liquidity

 

The Company has $ 124,086 of cash on hand as of September 30, 2014. We currently have very limited cash to continue operations for 12 months.

 

15
 

 

We intend to rely upon the issuance of common stock and loans and advances from shareholders to fund administrative expenses pending commencement of operations. However, our shareholders are under no obligation to provide such funding, and there can be no assurance, however, that any of the contemplated financing arrangements described herein will be available and, if available, can be obtained on terms favorable to the Company.

 

As discussed above, the Company had a net loss of ($ 2,063,260) for the nine months ended September 30, 2014. The Company also had a stockholder’s deficiency of ($ 778,169) and a working capital deficiency of ( $ 779,104) as of September 30, 2014 and cash used in operations for the nine months ended September 30, 2014 was ( $ 593,790 ).

 

Off Balance Sheet Arrangements

 

We do not have any transactions, arrangements, and other relationships with unconsolidated entities that will affect our liquidity or capital resources. We have no special Purpose entities that provide off-balance sheet financing, liquidity, or market or credit risk support, nor do we engage in swap agreements, or outsourcing of research and development services, that could expose us to liability that is not reflected on the face of our financial statements.

 

Recently Issued Accounting Pronouncements

 

There were no new accounting pronouncements that had or are expected to have a significant impact on the Company’s operating results or financial position.

 

Critical Accounting Policies

 

The preparation of financial statements and related notes requires us to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities revenues and expenses, and related disclosure of contingent assets and liabilities.

 

An accounting policy is considered to be critical if it requires an accounting estimate to be made based upon assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.

 

Financial Reporting Release No. 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements. There are no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain at the time the estimate is made. Note 2 to the financial statements included in the Company’s Annual Report on Form 10K includes a summary of the significant accounting policies and methods used in the preparation of our financial statements.

 

16
 

 

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Pursuant to Item 305 (e) of Regulation S-K (229.305 (e)) the Company is not required to provide the information required by this item as it is “smaller reporting company” as defined by Rule 229.10(f)(1).

 

ITEM 4 CONTROLS AND PROCEDURES

 

Disclosure controls and procedures are controls and other procedures that are designed to provide reasonable assurances that information required to be disclosed by the Company under the Exchange Act is recorded, processed, summarized and reported, within time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurances that information required to be disclosed by the Company in its periodic reports that are filed under the Exchange Act is accumulated and communicated to our Principal Executive Officer, as appropriate to allow timely decisions regarding financial disclosure.

 

Evaluation of disclosure controls and procedures

 

As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of management including our Chief Executive Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures ( as defined in Rules 13a – 15(e) and 15d-15(e) under the Exchange Act ) Based on the evaluation, the Company’s Chief Executive Offer has concluded that the Company’s disclosure controls and procedures are designed to provide reasonable assurances that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and are operating in an effective manner.

 

Changes in internal controls over financial reporting

 

There were no changes in the Company’s internal controls over financial reporting or in other factors that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

This quarterly report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this quarterly report.

 

17
 

 

PART II : OTHER INFORMATION

 

ITEM 1 – LEGAL PROCEEDINGS

 

No legal proceedings were initiated by or served upon the Company in the nine months period ended September 30, 2014.

 

From time to time, the Company may be named in claims arising in the ordinary course of business. Currently, no legal proceedings or claims, other than those disclosed above, are pending against or involve the Company that, in the opinion of management, could reasonably be expected to have a material adverse effect on its business and financial condition.

 

ITEM I A – RISK FACTORS

 

Not required of smaller reporting companies.

 

ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

On April 7, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $ 112,000 in a convertible note. The note matures on October 7, 2014 and bears interest at an annual rate of 12%. The conversion price equals 50% of the market price, which is the lowest trading price over the previous 20 trading days.

 

On April 8, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $ 53,000 in a convertible note. The note bears interest of 8% per year. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days. The Company received $ 32,500 on April 30, 2014.

 

On April 11, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $ 57,836 in a convertible note. The note matures on April 11, 2016 and bears interest at an annual rate of 12%. The conversion price equals 60% of the market price, which is the lowest trading price over the previous 25 trading days or $0.012.

 

On May 21, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $ 26,500 in a convertible note. The note matures on May 21, 2015, and bears interest at an annual rate of 8%. The conversion price equals 55% of the market price, which is the lowest bid over the previous 15 trading days.

 

18
 

  

On May 23, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $ 37,500 in a convertible note. The note matures on November 3, 2014, and bears interest at an annual rate of 0%. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days.

 

On June 27, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue up to $ 25,000 in a convertible note. The note bears interest of 8% per year. The Company received $ 22,500 on June 27, 2014. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days, prior to the conversion.

 

On July 3, 2014, the Company entered into an agreement whereby the Company will issue a Note for $ 25,000 with interest at 0% that is due on January 3, 2015 to an accredited investor. The conversion price is 40% of the lowest trading prices during the 20 days prior to conversion. The Company received $ 25,000 on July 9, 2014.

 

On August 5, 2014, the Company entered into an agreement whereby the Company will issue a convertible note at 8% interest per year that is due on May 7, 2015 to an accredited investor, The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous fifteen days before the conversion. The Company received $ 25,000 on August 1, 2014, and the Note and accrued interest balance at September 30, 2014 was $ 0.

 

On August 5, 2014, the Company entered into an agreement whereby the Company will issue a convertible note at 12% interest due on August 5, 2016 ti an accredited investor. The conversion price is 60% of the lowest trading price over the 25 days prior to the conversion, or ..012. The note balance and accrued interest at September 30, 2014 was $ 32,500.

 

On September 2, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue a convertible note at 0% interest due on March 30, 2015 plus Warrants. The conversion price is 55% of the lowest trading prices during the 25 days prior to conversion. The note balance at September 30, 2014 was $ 28,831.

 

On September 3, 2014, the Company entered into an agreement with an accredited investor whereby the Company will issue a convertible note at 12% interest due on March 3, 2015. The conversion price is 48% of the lowest trading price in the 15 days preceding the trade. On September 30, 2014 the note balance and accrued interest was $ 58,500.

 

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4 - MINE SAFETY DISCLOSURES

 

Not applicable.

 

19
 

 

ITEM 5 - OTHER INFORMATION

 

On November 6, 2014 the Board of Directors and majority shareholders approved an Amendment to the Articles of Incorporation to increase the total authorized capital from 2,500,000,000 shares of common stock, par value $ 0.001, to 5,000,000,000 shares of common Stock, and effectuate a reverse stock split of the issued and outstanding shares of common stock on a 1 for 100 basis. These actions were approved by written consent in accordance with Nevada Revised Statutes. Pursuant to Rule 14(c)-2 of the Securities Exchange Act of 1934,these proposals will not be adopted until a date ten days after the Information Statement was mailed to shareholders about November 6, 2014.

 

On November 6, 2014, a Schedule 14c was filed with the SEC reporting that the actual number of common shares outstanding was 1,195,840,583 and that after the Reverse Split, the number of common shares would be 11,958,406. The Series A Preferred Stock would remain the same at 500,000 and the Series B Preferred stock would remain at 100,000 shares outstanding.

 

ITEM 6 - EXHIBITS

 

Exhibit Number Description
   
31.1 Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act. Of 2002.
   
32.1* Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

101. INS XBRL Instance Document

 

101. SCH XBRL Taxonomy Extension Schema Document

 

101. CAL XBRL Taxonomy Extension Calculation Linkbase Document

 

101. LAB XBRL Taxonomy Extension Label Linkbase Document 101. PREXBRL Taxonomy Extension Presentation Linkbase Document

 

101. DEFXBRL Taxonomy Definitions Linkbase Document

 

In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.

 

 

Signature:

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf By the undersigned thereunto duly authorized.

 

  E House Global, Inc.
  (Registrant)
   
  /s/ Scott Corlett
  Scott Corlett
  Title: President and Chief Financial Officer
   
  November 14, 2014

 

20

 

EX-31.1 2 s100402_ex31-1.htm EXHIBIT 31.1

 

Exhibit 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND

PRINCIPAL FINANCIAL OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a-14(a) / 15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OKLEY ACT of 2002

 

I, Scott Corlett, certify that:

 

1. I have read this Quarterly Report on Form 10-Q of EHouse Global, Inc. ;

 

2. Based upon my knowledge, the report does not contain any untrue statement of a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report’

 

3. Based upon my knowledge, the financial statements, and other financial information included In this report, fairly present in all material respects, the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures ( as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal controls over financial reporting ( as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

 

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period for which this report is being prepared;

 

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the controls and procedures, as of the end of the period covered by this report based upon such evaluation;

 

 
 

 

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter ( the registrant’s fourth fiscal quarter in the case of an annual report ) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of the board of directors ( or persons performing the equivalent function):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b ) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Dated:  November 14, 2014  
     
  By : /s/ Scott Corlett
  Scott Corlett
  Chief Executive Officer
  ( Principal Executive Officer and interim
  Principal Financial Officer

 

 

 

EX-32.1 3 s100402_ex32-1.htm EX-31.2

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of E House Global, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof, (the “Report”), Scott Corlett, Chief Executive Officer and Interim Principal Financial Officer, certifies, pursuant to 18 U.S.C. section 1350 of the Sarbanes- Oxley Act of 2002: that:

 

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date:    November 14, 2014  
     
  By: /s/ Scott Corlett
  Scott Corlett
  Chief Executive Officer
  Principal Executive Officer and Interim
  Principal Financial Officer

 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

 

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These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><strong>NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS</strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">The carrying amounts of the Company&#8217;s financial assets and liabilities, such as cash, accounts payable and accrued expenses, approximate their fair values because of the current nature of these instruments. 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Derivative liabilities which have been bifurcated from host convertible debt agreements are presented at fair value.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font>The following is the major category of liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 using quoted prices in active markets for identical liabilities ( Level 1 ) ; significant other observable inputs ( Level 2 ); and significant unobservable inputs ( Level 3 ) :</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left; TEXT-INDENT: 0in; WIDTH: 100%"> <table style="BORDER-BOTTOM: #9eb6ce 0px solid; BORDER-LEFT: #9eb6ce 0px solid; MARGIN: 0in; WIDTH: 100%; BORDER-COLLAPSE: collapse; OVERFLOW: visible; BORDER-TOP: #9eb6ce 0px solid; BORDER-RIGHT: #9eb6ce 0px solid" cellspacing="0" cellpadding="0" align="left"> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="49%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="15%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>September&#160;30,&#160;2014</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>December&#160;31,&#160;2013</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="49%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="15%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; 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FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left; TEXT-INDENT: 0in; WIDTH: 100%"> <table style="BORDER-BOTTOM: #9eb6ce 0px solid; BORDER-LEFT: #9eb6ce 0px solid; MARGIN: 0in; WIDTH: 100%; BORDER-COLLAPSE: collapse; OVERFLOW: visible; BORDER-TOP: #9eb6ce 0px solid; BORDER-RIGHT: #9eb6ce 0px solid" cellspacing="0" cellpadding="0" align="left"> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="49%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; 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FONT: 10pt Times New Roman, Times, Serif"> On January 31, 2014, the debt holder entered into a securities settlement agreement whereby the Note was transferred over to a third party. In connection with the transfer, an additional $ 5,000 was recorded which was treated as debt issuance costs, interest was changed to a guaranteed 10% and the conversion clause was added. The conversion price equals 25% of the lowest traded price during the 20 trading days prior to conversion.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 15pt 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The Company identified conversion features embedded within this convertible debt. The Company has determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability and recorded a derivative liability and expense of $ 518,396 on the day of the amendment &#150; See Note 7.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0px; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0px; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">On <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">November 27, 2013</font> the Company entered into an agreement whereby the Company will issue up to $ <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 53,000</font> in a convertible note. The note matures on <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> August 27, 2014</font> and bears an interest rate of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 8</font>%. The conversion price equals the &#8220;Variable Conversion Price &#8220;, which is <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 58</font>% of the &#8220;Market Price&#8221;, which is the average of the three lowest closing bid prices for the common stock during the fifteen ( <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 15</font>) trading day period prior to the conversion. The holder converted the principal of the note and most of the accrued interest to common shares during the second quarter of 2014. The Company received $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">50,000</font>&#160;proceeds, less debt issuance costs of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">3,000</font>. 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FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>Year&#160;ended</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="60%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>ended</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>December&#160;31,</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="60%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>September&#160;30,&#160;2014</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>2013</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="60%"> <div>Debt issue costs</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="15%"> <div>28,750</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; 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VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> </table> </div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><strong>DEBT DISCOUNT</strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">During the nine months ended September 30, 2014 and the year ended December 31, 2013 the Company recorded debt discounts totaling $&#160;<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 730,040</font>&#160;and $ <font style="FONT-FAMILY: 'Times New Roman','serif'; 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FONT-STYLE: normal; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>As&#160;of</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>As&#160;of</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="65%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>September&#160;30,&#160;2014</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>December&#160;31,&#160;2013</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; 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VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="15%"> <div>53,000</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="65%"> <div>Accumulated amortization of debt discount</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="15%"> <div>495,552</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="15%"> <div>(6,601)</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="65%"> <div>Elimination of debt discount due to conversions</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="15%"> <div>(16,514)</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="15%"> <div>0</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="65%"> <div>Debt discount &#150; net</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="15%"> <div>270,972</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="15%"> <div>46,399</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160; <font style="FONT-FAMILY: 'Times New Roman','serif'; 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TEXT-INDENT: 0in; WIDTH: 100%"> <table style="MARGIN: 0in; WIDTH: 95%; BORDER-COLLAPSE: collapse; OVERFLOW: visible" cellspacing="0" cellpadding="0" align="left"> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="60%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>Nine&#160;months</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>Year&#160;ended</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="60%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>ended</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>December&#160;31,</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="60%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>September&#160;30,&#160;2014</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>2013</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="60%"> <div>Debt issue costs</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="15%"> <div>28,750</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="15%"> <div>4,000</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="60%"> <div>Accumulated amortization of debt issue costs</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="15%"> <div>(17,730)</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="15%"> <div>(878)</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="60%"> <div>Debt issue costs, net</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: times new roman; 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table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> 28750 4000 17730 878 0 -589332 54974 2018342 144346 0 0 2.64 1.92 4.15 P6M P2Y P1M13D P1Y9M 0.001 0.001 0.0012 0.0013 0.0175 <div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><b>NOTE&#160;7&#150; STOCKHOLDER&#8217;S EQUITY</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><b>Common Stock</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">On March 19, 2014, the Company entered into a consulting agreement for the consultant to provide the Company general consulting services which would include financing introductions, business development opportunities and general marketing activities. 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The total number of shares issued during the first nine months of 2014 totaled&#160;5,835,879 in exchange for $326,315&#160;in convertible debt and accrued interest.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><b>Series A Preferred Stock</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><b>&#160;</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">In 2013, the Company determined that it was in their best interests to file a Certificate of Designation that authorized the issuance of up to one million (<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,000,000</font>) shares of a new series of preferred stock, par value $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">0.001</font> per share, designated as &#8220;Series A Preferred Stock&#8221;.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">Each holder of outstanding shares of Series A Preferred Stock shall be entitled to five hundred ( <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 500</font>) votes for each share of Series A Preferred Stock held on the record date for the determination of stockholders entitled to vote at each meeting of stockholders of the Company; No liquidation value and no rights or dividends.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="center">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">On March 18, 2014, the Company issued an aggregate of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 500,000</font> shares of Series A Preferred Stock to the Company&#8217;s President, Chief Executive officer, Secretary and Treasurer, in consideration for services rendered to the Company, including for an as an incentive to continue To assist and provide services to the Company. 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FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="16%" colspan="2"> <div>As&#160;of</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="65%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; 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The Company has determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font>As a result of the application of ASC No. 815, the fair value of the conversion feature is Summarized as follows:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left; TEXT-INDENT: 0in; WIDTH: 100%"> <table style="BORDER-BOTTOM: #9eb6ce 0px solid; 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VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="12%"> <div>-</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="80%"> <div>Fair value at the commitment date for convertible instruments</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="12%"> <div>144,346</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="80%"> <div>Change in fair value of embedded derivative liability</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="12%"> <div>(54,974)</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="80%"> <div>Derivative liability &#150; December 31, 2013</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="12%"> <div>89,372</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="80%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="12%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="80%"> <div>Fair value at the commitment date for convertible notes</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="12%"> <div>2,018,342</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="80%"> <div>Reclassification of derivative liability associated with convertible debt that ceased being a derivative liability to additional paid in capital</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="12%"> <div>(933,153)</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="80%"> <div>Fair value mark to market adjustment for convertible debt</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="12%"> <div>(589,332)</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="80%"> <div>Derivative liability &#150; September 30, 2014</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="12%"> <div>495,857</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"></div> </div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">The Company recorded the debt discount to the extent of the gross proceeds raised, and expensed immediately the remaining value of the derivative liability as it exceeded the gross proceeds of the note. The Company recorded a derivative interest expense for the nine months ended September 30, 2014 and 2013 of $ <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 1,226,180</font> and $&#160;<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 91,346</font>, respectively.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font>The fair value at the commitment and re-measurement dates for the Company&#8217;s derivative liabilities were based upon the following management assumptions as of September 30, 2014:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left; TEXT-INDENT: 0in; WIDTH: 100%"> <table style="BORDER-BOTTOM: #9eb6ce 0px solid; BORDER-LEFT: #9eb6ce 0px solid; MARGIN: 0in; WIDTH: 95%; BORDER-COLLAPSE: collapse; OVERFLOW: visible; BORDER-TOP: #9eb6ce 0px solid; BORDER-RIGHT: #9eb6ce 0px solid" cellspacing="0" cellpadding="0" align="left"> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="36%"> <div>Assumption</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="28%"> <div>Commitment&#160;Date</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="28%"> <div>September&#160;30,&#160;2014</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="36%"> <div>Expected dividends:</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="28%"> <div>0%</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="28%"> <div>0%</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="36%"> <div>Expected volatility:</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="28%"> <div>192% -415%</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="28%"> <div>264%</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="36%"> <div>Expected term (years)</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="28%"> <div>0.5 &#150; 2 years</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="28%"> <div>0.12 &#150; 1.75 years</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #cceeff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="36%"> <div>Risk free interest rate:</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ffffff; COLOR: #000000; FONT-SIZE: 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cellpadding="0"><tr><td></td></tr></table> <div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font>As a result of the application of ASC No. 815, the fair value of the conversion feature is Summarized as follows:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="left">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:Left; TEXT-INDENT: 0in; WIDTH: 100%"> <table style="BORDER-BOTTOM: #9eb6ce 0px solid; BORDER-LEFT: #9eb6ce 0px solid; MARGIN: 0in; WIDTH: 95%; BORDER-COLLAPSE: collapse; OVERFLOW: 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118 - Disclosure - CONVERTIBLE DEBT (Tables) link:presentationLink link:definitionLink link:calculationLink 119 - Disclosure - DERIVATIVE LIABILITIES (Tables) link:presentationLink link:definitionLink link:calculationLink 120 - Disclosure - BUSINESS OPERATIONS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) link:presentationLink link:definitionLink link:calculationLink 121 - Disclosure - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) link:presentationLink link:definitionLink link:calculationLink 122 - Disclosure - CONVERTIBLE DEBT (Narrative) (Details) link:presentationLink link:definitionLink link:calculationLink 123 - Disclosure - CONVERTIBLE DEBT (Debt Issue Costs) (Details) link:presentationLink link:definitionLink link:calculationLink 124 - Disclosure - CONVERTIBLE DEBT (Debt Discount) (Details) link:presentationLink link:definitionLink link:calculationLink 125 - Disclosure - DERIVATIVE LIABILITIES (Fair Value of Conversion Feature) (Details) link:presentationLink 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DERIVATIVE LIABILITIES (Fair Value of Conversion Feature) (Details) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Debt Instrument [Line Items]          
Derivative liability     $ 89,372 $ 0 $ 0
Fair value at the commitment date for convertible instruments 2,018,342   2,018,342   144,346
Change in fair value of embedded derivative liability 116,092 0 (554,920) 0 (54,974)
Reclassification of derivative liability associated with convertible debt that ceased being a derivative liability to additional paid in capital     (933,153)    
Fair value mark to market adjustment for convertible debt     (589,332)    
Derivative liability $ 495,857   $ 495,857   $ 89,372
XML 13 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
BUSINESS OPERATIONS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
BUSINESS OPERATIONS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 2 – BUSINESS OPERATIONS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Basis of presentation
 
The accompanying unaudited condensed financial statements have been prepared with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.
 
It is management’s opinion, however, that all material adjustments (consisting of normal and recurring adjustments) have been made which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the full year.
 
Impact of New Accounting Standards
 
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
   
Estimates
 
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
 
Derivative Liabilities
 
We value derivative liabilities using a multinomial lattice model. The model is based on a probability weighted discounted cash flow model of future projections of various outcomes. Some of the key assumptions include the likelihood of future financing, stock price volatility, and discount rates.
 
Loss per Share
 
Basic earnings per share amounts are calculated based on the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is based on the weighted average numbers of shares of common stock outstanding for the periods, including dilutive effects of stock options, warrants granted and convertible preferred stock. Dilutive options and warrants that are issued during a period or that expire or are canceled during a period are reflected in the computations for the time they were outstanding during the periods being reported. Since Ehouse has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive and therefore are not included in the calculation
 
On November 6, 2014 the Board of Directors and majority shareholders approved an Amendment to the Articles of Incorporation to increase the total authorized capital from 2,500,000,000 shares of common stock, par value $ 0.001, to 5,000,000,000 shares of common Stock, and effectuate a reverse stock split of the issued and outstanding shares of common stock on a 1 for 100 basis. The EPS calculation based on share number after reverse split.
 
Subsequent Events
 
The Company follows the guidance in FASB ASC 855-10-50 for the disclosure of subsequent events from the date of the balance sheet through the date when the financial statements are issued or available to be issued.
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SUBSEQUENT EVENTS (Narrative) (Details) (USD $)
Sep. 30, 2014
Jun. 24, 2014
Mar. 31, 2014
Dec. 31, 2013
Nov. 06, 2014
Subsequent Event [Member]
Sep. 30, 2014
Subsequent Event [Member]
Nov. 06, 2014
Series B Preferred Stock [Member]
Subsequent Event [Member]
Nov. 06, 2014
Series A Preferred Stock [Member]
Subsequent Event [Member]
Subsequent Event [Line Items]                
Common Stock, Shares, Outstanding 7,238,879     998,000 1,195,840,583 11,958,406    
Common Stock, Shares Authorized 2,500,000,000 750,000,000   2,500,000,000 5,000,000,000      
Common Stock, Par or Stated Value Per Share $ 0.001   $ 0.001 $ 0.001        
Preferred Stock, Shares Outstanding 500,000     0     100,000 500,000
XML 16 R28.htm IDEA: XBRL DOCUMENT v2.4.0.8
STOCKHOLDER'S EQUITY (Narrative) (Details) (USD $)
9 Months Ended
Sep. 30, 2014
Jun. 24, 2014
Mar. 31, 2014
Dec. 31, 2013
Class of Stock [Line Items]        
Preferred Stock, number of votes per share 500      
Preferred stock issued for services $ 191,131      
Common Stock, Shares Authorized 2,500,000,000 750,000,000   2,500,000,000
Common stock, par value (in dollars per share) $ 0.001   $ 0.001 $ 0.001
Issuance of common stock in exchange for services rendered, value 62,500      
Preferred Stock, Shares Authorized 1,000,000     1,000,000
Preferred stock, par value per share $ 0.001     $ 0.001
Preferred Stock, Shares Issued 500,000     0
Debt Conversion, Converted Instrument, Amount 326,315      
Debt Conversion, Converted Instrument, Shares Issued 326,315      
Common Shares [Member]
       
Class of Stock [Line Items]        
Issuance of common stock in exchange for services, shares 5,000      
Issuance of common stock in exchange for services rendered, value $ 5      
XML 17 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
ACCOUNTING POLICIES AND BASIS OF PRESENTATION
9 Months Ended
Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ACCOUNTING POLICIES AND BASIS OF PRESENTATION
NOTE 1 - ACCOUNTING POLICIES AND BASIS OF PRESENTATION
 
Ehouse Global, Inc. (“the Company”) prepared these financial statements in accordance with both accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to Form 10Q and Rule 10-01 of Regulation S-X. Therefore, the financial statements do not include all disclosures required by generally accepted accounting principles. However, the Company has recorded all transactions and adjustments necessary to present fairly the financial statements included in this Form 10Q. The adjustments made are normal and recurring. The following notes describe only the material changes in accounting policies, account details or financial statement notes during the first nine months of 2014. Therefore, please read these financial statements and notes to the financial statements together with the audited financial statements and notes thereto in our Annual Report on Form 10K for the full year ended December 31, 2013. The income statement for the nine months ended September 30, 2014 cannot necessarily be used to project results for the full year.
XML 18 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
Balance Sheets (USD $)
Sep. 30, 2014
Dec. 31, 2013
Current Assets :    
Cash $ 124,086 $ 14,779
Prepaid expenses 0 5,664
Investment receivable 27,473 0
Debt Issuance Costs 11,020 3,122
Total Current Assets 162,579 23,565
Furniture and Equipment 935 0
Total Assets 163,514 23,565
Current Liabilities:    
Accounts payable & accrued expenses 34,930 30,600
Notes Payable 0 100,000
Notes Payable - related party 75,000 75,000
Convertible Debt, Net of debt discount of $ 270,972 and $ 46,399 respectively 327,901 6,601
Derivative Liability - Warrants 7,994 0
Derivatives Liability 495,858 89,372
Total current liabilities 941,683 301,573
STOCKHOLDERS' DEFICIT    
Preferred Stock: $0.001 par value, 1,000,000 shares authorized, 500,000 and 0 issued and outstanding 500 0
Common stock: $ 0.001 par value, 2,500,000,000 shares authorized; 7,238,879 and 998,000 shares issued and outstanding at September 30, 2014 and December 31, 2013 7,239 998
Additional paid- in capital 1,675,160 118,802
Accumulated deficit (2,461,068) (397,808)
Total Stockholders' deficit (778,169) (278,008)
Total liabilities and stockholders’ $ 163,514 $ 23,565
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Statement of Stockholders Equity (Parenthetical) (USD $)
Sep. 30, 2014
Common stock issued for services, price per share $ 0.12

XML 21 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONVERTIBLE DEBT (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended 1 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Sep. 30, 2014
Convertible note issued on April 8, 2014 [Member]
Sep. 30, 2014
Convertible note issued On September 2, 2014 [Member]
Sep. 30, 2014
Convertible note issued On September 3, 2014 [Member]
Sep. 30, 2014
Convertible note issued on November 27, 2013 [Member]
Dec. 31, 2013
Convertible note issued on November 27, 2013 [Member]
Sep. 30, 2014
Convertible note issued on January 28, 2014 [Member]
Jan. 28, 2014
Convertible note issued on January 28, 2014 [Member]
Feb. 14, 2014
Convertible note issued on January 31, 2014 [Member]
Jan. 31, 2014
Convertible note issued on January 31, 2014 [Member]
Sep. 30, 2014
Convertible note issued on January 31, 2014 [Member]
Sep. 30, 2014
Convertible note issued on March 17, 2014 [Member]
Mar. 17, 2014
Convertible note issued on March 17, 2014 [Member]
Sep. 30, 2014
Convertible note issued on April 7, 2014 [Member]
Apr. 07, 2014
Convertible note issued on April 7, 2014 [Member]
Sep. 30, 2014
Convertible note issued on April 8, 2014 [Member]
Sep. 30, 2014
Convertible note issued on April 11, 2014 [Member]
Sep. 30, 2014
Convertible note issued on May 21, 2014 [Member]
Sep. 30, 2014
Convertible note issued on April 11, 2014 [Member]
Sep. 30, 2014
Convertible note issued on June 27, 2014 [Member]
Sep. 30, 2014
Convertible note issued on July 3, 2014 [Member]
Sep. 30, 2014
Convertible note issued On August 5, 2014 [Member]
Sep. 30, 2014
Convertible note issued On August 5, 2014 [Member]
Sep. 30, 2014
Convertible note issued On May 21, 2014 [Member]
Sep. 30, 2014
Convertible note issued On May 23, 2014 [Member]
Sep. 30, 2014
Convertible note issued On May 23, 2014 [Member]
Sep. 30, 2014
Convertible note issued On September 3, 2014 [Member]
Sep. 30, 2014
Convertible note issued on January 30, 2014 [Member]
Sep. 30, 2014
Paid within 90 days of issuance date [Member]
Convertible note issued on January 30, 2014 [Member]
Sep. 30, 2014
Paid after 90 days of issuance date [Member]
Convertible note issued on January 30, 2014 [Member]
Debt Instrument [Line Items]                                                                  
Debt discount $ 270,972 $ 270,972   $ 46,399                                                     $ 35,000    
Issuance of Convertible Notes Payable   706,500     50,000     50,000   75,000   50,000 50,000   42,750   100,000         44,776 22,500 25,000 25,000   25,000 30,000          
Debt Issuance Cost   25,750   4,000       3,000   3,500                                         75,000    
Non-cash additions to convertible notes   5,000                                                              
Debt Instrument, Issuance Date         Apr. 08, 2014 Sep. 02, 2014 Sep. 03, 2014 Nov. 27, 2013   Jan. 28, 2014       Jan. 31, 2014 Mar. 17, 2014   Apr. 07, 2014         Apr. 11, 2014 Jun. 27, 2014 Jul. 03, 2014 Aug. 05, 2014 Sep. 03, 2014 May 21, 2014 May 23, 2014     Jan. 30, 2014    
Principal amount 28,831 28,831     53,000 28,831 58,500 53,000   78,500 78,500   100,000 100,000 35,000 45,000 118,481 112,000   57,836 26,500   25,000 37,500 32,500     37,500   50,000 335,000    
Debt Instrument, Maturity Date         Jan. 14, 2015 Mar. 30, 2015 Mar. 03, 2015 Aug. 27, 2014   Oct. 30, 2014       Jul. 31, 2014 Mar. 17, 2015   Oct. 07, 2014         Apr. 11, 2016 Jun. 27, 2014 Jan. 03, 2015 May 07, 2015 Aug. 05, 2016 May 21, 2015 Nov. 03, 2014     Jan. 30, 2016    
Debt instrument, stated interest rate         8.00% 0.00% 12.00% 8.00%   8.00%       10.00% 8.00%   12.00%         12.00% 8.00% 0.00% 8.00% 12.00% 8.00% 0.00%     0.00% 0.00% 12.00%
Exercise price                                           $ 0.012       $ 0.012         $ 0.012    
Debt instrument, convertible, variable conversion price, percentage of market price         58.00% 55.00% 48.00% 58.00%   58.00%       25.00% 55.00%   50.00%         60.00% 58.00% 40.00% 58.00% 60.00% 55.00% 58.00%     60.00%    
Debt instrument, number of days prior to conversion               15 days   15 days       20 days 15 days                               25 days    
Convertible Debt, Current 327,901 327,901   6,601 112,000                                   25,520                    
Convertible Debt, Noncurrent                                                   29,361              
Long-term Debt, Gross               307 53,388 437       41,800 39,967   118,481   55,033     61,106     32,899 29,361 27,266 37,500 25,520   8,700    
Debt Instrument, Convertible, Threshold Trading Days         15 25 15                   20         25 15 20 15 15 15 15          
Convertible Notes Payable, Current                   0       5,700 35,705   38,300             37,500 32,899     26,500     0    
Issuance of common stock in connection with note payable     1,000 1,000                                                          
Accumulated amortization of debt discount   495,552 6,601 (6,601)                                                          
Debt Instrument Discount Recorded During Period   730,040   53,000                                                          
Derivative interest expense 199,046 1,226,180 0                                                            
Debt Instrument, Unamortized Discount (Premium), Net $ 16,514 $ 16,514                                                              
XML 22 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONVERTIBLE DEBT (Debt Discount) (Details) (USD $)
9 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Debt Instrument [Line Items]      
Debt discount $ 783,040   $ 53,000
Accumulated amortization of debt discount 495,552 6,601 (6,601)
Elimination of debt discount due to conversions (16,514)   0
Debt discount - net $ 270,972   $ 46,399
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Statements of Cash Flows (USD $)
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Income (Loss) $ (2,063,260) $ (109,358)
Settlement of Debt 0   
Adjustments to reconcile Net (Loss) to Net Cash used in operating activities:    
Depreciation expense 245  
Stock based compensation 253,631  
Amortization of debt offering costs and discounts 505,803  
Derivative interest expense 1,226,180  
Change in fair value of derivatives liabilities (554,920) 0
Change in operating assets and liabilities :    
Prepaid expenses 5,664 5,985
Accounts payable and acrrued expenses 32,867  
Net Cash Used in Operating Activities (593,790) (103,373)
CASH FROM INVESTING ACTIVITIES    
Purchase of Equipment (1,180) (4,026)
Net cash provided by investing activities (1,180) (4,026)
CASH FROM FINANCING ACTIVITIES    
Proceeds from sale of common stock 22,527 0
Proceeds from Note Payable 0 162,000
Direct offerring costs paid (24,750)  
Issuance of Convertible Notes Payable 706,500  
Net Cash provided by Financing Activities 704,277 162,000
CHANGE IN CASH 109,307 54,601
CASH AT BEGINNING OF PERIOD 14,779 1,606
CASH AT END OF PERIOD 124,086 56,207
Supplementary disclosure of non-cash financing activity:    
Non-cash additions to convertible note balance 5,000  
Reclassification of derivative liability to additional paid in capital 933,153  
Note Payable reclassified to convertible debt 100,000  
Shares issued in conversion of convertible debt and accrued interest 326,315  
Debt discount on convertible note accounted for as a derivative liability 730,040  
Issuance of shares in connection with loan   $ 1,000
XML 25 R3.htm IDEA: XBRL DOCUMENT v2.4.0.8
Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Debt discount $ 270,972 $ 46,399
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued 500,000 0
Preferred stock, shares outstanding 500,000 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 2,500,000,000 2,500,000,000
Common stock, shares issued 7,238,879 998,000
Common stock, shares outstanding 7,238,879 998,000
XML 26 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
9 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract]  
Hierarchy for Assets and Liabilities Measured at Fair Value on Recurring Basis
The following is the major category of liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 using quoted prices in active markets for identical liabilities ( Level 1 ) ; significant other observable inputs ( Level 2 ); and significant unobservable inputs ( Level 3 ) :
 
 
 
 
 
September 30, 2014
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
Level 3
 
$
495,858
 
$
89,372
 
XML 27 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document And Entity Information
9 Months Ended
Sep. 30, 2014
Nov. 14, 2014
Document Information [Line Items]    
Entity Registrant Name EHOUSE GLOBAL, INC.  
Entity Central Index Key 0001452580  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Document Type 10-Q  
Document Period End Date Sep. 30, 2014  
Amendment Flag false  
Document Fiscal Year Focus 2014  
Document Fiscal Period Focus Q3  
Entity Common Stock, Shares Outstanding   1,195,840,583
XML 28 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONVERTIBLE DEBT (Tables)
9 Months Ended
Sep. 30, 2014
Debt Instrument [Line Items]  
Schedule of Debt Issue Costs
The following is a summary of the Company’s debt issue costs:
 
 
 
Nine months
 
Year ended
 
 
 
ended
 
December 31,
 
 
 
September 30, 2014
 
2013
 
Debt issue costs
 
$
28,750
 
$
4,000
 
Accumulated amortization of debt issue costs
 
 
(17,730)
 
 
(878)
 
Debt issue costs, net
 
 
11,020
 
 
3,122
 
Schedule of Debt Discount
The Company amortized $  488,951 and $  6,601 during nine months ended September 30, 2014 and 2013, respectively, to amortization of debt discount expense and relieved $  16,514 during the nine months ended September 30, 2014 due to conversions.
   
 
 
As of
 
As of
 
 
 
September 30, 2014
 
December 31, 2013
 
Debt discount
 
$
783,040
 
$
53,000
 
Accumulated amortization of debt discount
 
 
495,552
 
 
(6,601)
 
Elimination of debt discount due to conversions
 
 
(16,514)
 
 
0
 
Debt discount – net
 
$
270,972
 
$
46,399
 
XML 29 R4.htm IDEA: XBRL DOCUMENT v2.4.0.8
Statement of Operations (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Operating expenses:        
General and administrative expenses $ 210,151 $ 98,018 $ 845,328 $ 116,657
Other expenses (income) 0 15,000 (1,620) (11,632)
Total operating expenses 210,151 113,018 843,708 105,025
Other (Income) Expense        
Interest expense 168,775 4,333 548,292 4,333
Derivative interest expense 199,046   1,226,180 0
Change in fair value of derivatives liabilities 116,092 0 (554,920) 0
Total other (Income) expense 483,913 4,333 1,219,552 4,333
Net loss before taxes (694,064) (117,351) (2,063,260) (109,358)
Income taxes 0 0 0 0
Net Income (Loss) $ (694,064) $ (117,351) $ (2,063,260) $ (109,358)
Net Income (Loss) per common share:        
Basic (in dollars per share) $ (0.19) $ (0.12) $ (0.90) $ (0.11)
Weighted average number        
Weighted Average Number of Common Shares Outstanding 3,721,935 998,000 2,296,322 991,333
XML 30 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONVERTIBLE DEBT
9 Months Ended
Sep. 30, 2014
Convertible Debt [Abstract]  
CONVERTIBLE DEBT
NOTE 5 – CONVERTIBLE DEBT
 
On January 31, 2014, the debt holder entered into a securities settlement agreement whereby the Note was transferred over to a third party. In connection with the transfer, an additional $ 5,000 was recorded which was treated as debt issuance costs, interest was changed to a guaranteed 10% and the conversion clause was added. The conversion price equals 25% of the lowest traded price during the 20 trading days prior to conversion.
 
The Company identified conversion features embedded within this convertible debt. The Company has determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability and recorded a derivative liability and expense of $ 518,396 on the day of the amendment – See Note 7.
 
On November 27, 2013 the Company entered into an agreement whereby the Company will issue up to $ 53,000 in a convertible note. The note matures on August 27, 2014 and bears an interest rate of 8%. The conversion price equals the “Variable Conversion Price “, which is 58% of the “Market Price”, which is the average of the three lowest closing bid prices for the common stock during the fifteen ( 15) trading day period prior to the conversion. The holder converted the principal of the note and most of the accrued interest to common shares during the second quarter of 2014. The Company received $50,000 proceeds, less debt issuance costs of $3,000. As of September 30, 2014 and December 31, 2013, the convertible note balance and accrued interest is $ 307 and $ 53,388 respectively.
 
On January 28, 2014 the Company entered into an agreement whereby the Company will issue Up to $ 78,500 in a convertible note. The note matures on October 30, 2014 and bears interest at 8%. The conversion price equals the “Variable Conversion Price”, which is 58% of the “Market Price”, which is the average of the three lowest closing bid prices for the common stock during the fifteen (15) trading day period prior to the conversion. The Company received $ 75,000 proceeds, less debt issuance costs of $ 3,500 on February 11, 2014. As of September 30, 2014 the convertible note balance and accrued interest balance is $  437.
 
On January 30, 2014, the Company entered into an agreement whereby the Company will issue up to $ 335,000 in a convertible note subject to a $ 35,000 original issue discount (OID). The note matures on January 30, 2016, and bears an interest rate of 0% if the note is repaid on or before 90 days from the effective date. If the note is not repaid within 90 days, a one-time interest charge of 12% will be applied to the principal. The conversion price equals the lesser of $ 0.012 or the “Variable Conversion Price”, which is 60% of the “Market Price”, which is the lowest trading prices for the common stock during the twenty-five (25) trading day period prior to the conversion. The Company received $ 75,000 proceeds through September 30, 2014. On September 30, 2014 the note balance and accrued interest was $ 8,700.
 
On January 31, 2014, the Company entered into an agreement whereby the Company will issue up to $ 100,000 in a convertible note. The note matures on July 31, 2014 and bears an interest rate of 10%. The conversion price equals the “Variable Conversion Price”, which is 25% of the “Market Price”. Which is the lowest closing price for the common stock during the twenty (20) day trading period prior to the conversion. The Company received $ 50,000 proceeds on January 31, 2014 and the remaining $ 50,000 on February 14, 2014. As of September 30, 2014 the convertible note balance and accrued interest is $  41,800.
 
On March 17, 2014, the Company entered into an agreement whereby the Company would issue a note for $ 45,000 at 8% which becomes due on March 17, 2015, at 8% interest. The conversion price equals 55% of the market price, which is the low bid during the 15 trading days prior to the conversion. The Note balance and accrued interest as of September 30, 2014 was $  39,967. The Company received $  42,750 on March 17, 2014.
 
On April 7, 2014, the Company entered into an agreement whereby the Company will issue up to $  112,000 in a convertible note. The note matures on October 7, 2014 and bears interest at an annual rate of 12%. The conversion price equals 50% of the market price, which is the lowest Trading price over the previous 20 trading days. The note balance and accrued interest at September 30, 2014 is $  118,481. The Company received $ 100,000 on April 7, 2014.
 
On April 8, 2014, the Company entered into an agreement whereby the Company will issue up to $  53,000 in a convertible note. The note bears interest of 8% per year, and is due on January 14, 2015. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days. The Company received $ 50,000 on April 8, 2014. On September 30, 2014 the note balance and accrued interest was $ 55,033.
  
On April 11, 2014, the Company entered into an agreement whereby the Company will issue up to $  57,836 in a convertible note. The note matures on April 11, 2016 and bears interest at an annual rate of 12%. The conversion price equals 60% of the market price, which is the lowest trading price over the previous 25 trading days or $  0.012. The Company received $  44,776 in cash on April 11, 2014. The note balance and accrued interest at September 30, 2014 was $  61,106.
 
On May 21, 2014, the Company entered into an agreement whereby the Company will issue up to $  26,500 in a convertible note. The note matures on May 21, 2015 and bears interest at an annual rate of 8%. The conversion price equals 55% of the market price, which is the lowest bid over the previous 15 trading days. The note and accrued interest balance at September 30, 2014 was $  27,266. The Company received $  25,000 in cash on May 21, 2014.
 
On May 23, 2014, the Company entered into an agreement whereby the Company will issue up to $  37,500 in a convertible note. The note bears interest at 0% and matures on November 3, 2014. The conversion price equals 58% of the market price, which is the average of the three Lowest trading prices over the previous 15 trading days. At September 30, 2014 the note and Accrued interest balance was $ 37,500. The Company received $ 30,000 cash on May 23, 2014.
 
On June 27, 2014, the Company entered into an agreement whereby the Company will issue up to $  25,000 in a convertible note. The note bears interest of 8% per year. The Company received $  22,500 on June 27, 2014. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous 15 trading days. On September 30, 2014 the note and accrued interest balance was $  25,520.
 
On July 3, 2014, the Company entered into an agreement whereby the Company will issue a note for $  37,500 with interest at 0% that is due on January 3, 2015. The conversion price is 40% of the lowest trading prices during the 20 days prior to conversion. The Company received $ 25,000 cash on July 9, 2014. This note includes Warrants, and the note balance at September 30, 2014 was $  37,500.
 
On August 5, 2014, the Company entered into an agreement whereby the Company will issue a convertible note for 32,500 with 8% interest per year that is due on May 7, 2015. The conversion price equals 58% of the market price, which is the average of the three lowest trading prices over the previous fifteen days before the conversion. The Company received $  25,000 on August 1, 2014, and the Note and accrued interest balance at September 30, 2014 was $  32,899.
 
On September 3, 2014, the Company entered into an agreement whereby the Company will issue a convertible note for $28,831 with 12% interest due on August 5, 2016. The conversion price is 60% of the lowest trading price over the 25 days prior to the conversion, or .012. The note balance and accrued interest at September 30, 2014 was $  29,361.
  
On September 2, 2014, the Company entered into an agreement whereby the Company will issue a convertible note withat 0% interest due on March 30, 2015 plus Warrants. The conversion price is 55% of the lowest trading prices during the 25 days prior to conversion. The note balance at September 30, 2014 was $  58,500.
 
On September 3, 2014, the Company entered into an agreement whereby the Company will issue a convertible note for $50,000 with 12% interest due on March 3, 2015. The conversion price is 48% of the lowest trading price in the 15 days preceding the trade. On September 30, 2014 the note balance and accrued interest was $50,444.
 
DEBT ISSUE COSTS
 
During the nine months ended September 30, 2014, and the year ended December 31, 2013. the Company paid debt issue costs totaling $ 24,750 and $ 4,000, which includes non-cash additions of $ 5,000 during the nine months ended September 30, 2014 and fees paid through the issuance of common stock in the amount of $ 1,000 during the year ended December 31, 2013, respectively.
 
The following is a summary of the Company’s debt issue costs:
 
 
 
Nine months
 
Year ended
 
 
 
ended
 
December 31,
 
 
 
September 30, 2014
 
2013
 
Debt issue costs
 
$
28,750
 
$
4,000
 
Accumulated amortization of debt issue costs
 
 
(17,730)
 
 
(878)
 
Debt issue costs, net
 
 
11,020
 
 
3,122
 
 
DEBT DISCOUNT
 
During the nine months ended September 30, 2014 and the year ended December 31, 2013 the Company recorded debt discounts totaling $  730,040 and $ 53,000, respectively.
 
The debt discount recorded pertains to convertible debt that contains embedded conversion options that are required to be bifurcated and reported at fair value and original issue discounts.
 
The Company amortized $  488,951 and $  6,601 during nine months ended September 30, 2014 and 2013, respectively, to amortization of debt discount expense and relieved $  16,514 during the nine months ended September 30, 2014 due to conversions.
   
 
 
As of
 
As of
 
 
 
September 30, 2014
 
December 31, 2013
 
Debt discount
 
$
783,040
 
$
53,000
 
Accumulated amortization of debt discount
 
 
495,552
 
 
(6,601)
 
Elimination of debt discount due to conversions
 
 
(16,514)
 
 
0
 
Debt discount – net
 
$
270,972
 
$
46,399
 
XML 31 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
FAIR VALUE OF FINANCIAL INSTRUMENTS
9 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS
NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS
 
The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts payable and accrued expenses, approximate their fair values because of the current nature of these instruments. Debt approximates fair value based on interest rates available for similar financial arrangements. Derivative liabilities which have been bifurcated from host convertible debt agreements are presented at fair value.
 
The following is the major category of liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 using quoted prices in active markets for identical liabilities ( Level 1 ) ; significant other observable inputs ( Level 2 ); and significant unobservable inputs ( Level 3 ) :
 
 
 
 
 
September 30, 2014
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
Level 3
 
$
495,858
 
$
89,372
 
XML 32 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONVERTIBLE DEBT (Debt Issue Costs) (Details) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Debt Instrument [Line Items]    
Debt issue costs $ 28,750 $ 4,000
Accumulated amortization of debt issue costs (17,730) (878)
Debt issue costs, net $ 11,020 $ 3,122
XML 33 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
DERIVATIVE LIABILITIES (Tables)
9 Months Ended
Sep. 30, 2014
Derivative [Line Items]  
Fair Value of Conversion Feature
As a result of the application of ASC No. 815, the fair value of the conversion feature is Summarized as follows:
 
Derivative liability – December 31, 2012
 
$
-
 
Fair value at the commitment date for convertible instruments
 
 
144,346
 
Change in fair value of embedded derivative liability
 
 
(54,974)
 
Derivative liability – December 31, 2013
 
$
89,372
 
 
 
 
 
 
Fair value at the commitment date for convertible notes
 
$
2,018,342
 
Reclassification of derivative liability associated with convertible debt that ceased being a derivative liability to additional paid in capital
 
 
(933,153)
 
Fair value mark to market adjustment for convertible debt
 
 
(589,332)
 
Derivative liability – September 30, 2014
 
$
495,857
 
Schedule of Fair Value Assumptions
The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of September 30, 2014:
 
Assumption
 
Commitment Date
 
September 30, 2014
 
Expected dividends:
 
0%
 
0%
 
Expected volatility:
 
192% -415%
 
264%
 
Expected term (years)
 
0.5 – 2 years
 
0.12 – 1.75 years
 
Risk free interest rate:
 
0.1% - .13%
 
0.12 – 1.75 years
 
XML 34 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
SUBSEQUENT EVENTS
9 Months Ended
Sep. 30, 2014
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
NOTE 8 – SUBSEQUENT EVENTS
 
On November 6, 2014 the Board of Directors and majority shareholders approved an Amendment to the Articles of Incorporation to increase the total authorized capital from 2,500,000,000 shares of common stock, par value $ 0.001, to 5,000,000,000 shares of common Stock, and effectuate a reverse stock split of the issued and outstanding shares of common stock on a 1 for 100 basis. These actions were approved by written consent in accordance with Nevada Revised Statutes. Pursuant to Rule 14 (c)-2 of the Securities Exchange Act of 1934,these proposals will not be adopted until a date ten days after the Information Statement was mailed to shareholders about November 6, 2014.
 
On November 6, 2014, a Schedule 14c was filed with the SEC reporting that the actual number of common shares outstanding was 1,195,840,583 and that after the Reverse Split, the number of common shares would be 11,958,406. The Series A Preferred Stock would remain the same at 500,000 and the Series B Preferred stock would remain at 100,000 shares outstanding.
 
The Company has evaluated all events that occurred after the balance sheet date of September 30, 2014, through November 11, 2014, the date that these financial statements were available to be issued.
XML 35 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
DERIVATIVE LIABILITIES
9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE LIABILITIES
NOTE 6 - DERIVATIVE LIABILITIES
 
The Company identified conversion features embedded within this convertible debt. The Company has determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability.
 
As a result of the application of ASC No. 815, the fair value of the conversion feature is Summarized as follows:
 
Derivative liability – December 31, 2012
 
$
-
 
Fair value at the commitment date for convertible instruments
 
 
144,346
 
Change in fair value of embedded derivative liability
 
 
(54,974)
 
Derivative liability – December 31, 2013
 
$
89,372
 
 
 
 
 
 
Fair value at the commitment date for convertible notes
 
$
2,018,342
 
Reclassification of derivative liability associated with convertible debt that ceased being a derivative liability to additional paid in capital
 
 
(933,153)
 
Fair value mark to market adjustment for convertible debt
 
 
(589,332)
 
Derivative liability – September 30, 2014
 
$
495,857
 
 
The Company recorded the debt discount to the extent of the gross proceeds raised, and expensed immediately the remaining value of the derivative liability as it exceeded the gross proceeds of the note. The Company recorded a derivative interest expense for the nine months ended September 30, 2014 and 2013 of $ 1,226,180 and $  91,346, respectively.
 
The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of September 30, 2014:
 
Assumption
 
Commitment Date
 
September 30, 2014
 
Expected dividends:
 
0%
 
0%
 
Expected volatility:
 
192% -415%
 
264%
 
Expected term (years)
 
0.5 – 2 years
 
0.12 – 1.75 years
 
Risk free interest rate:
 
0.1% - .13%
 
0.12 – 1.75 years
 
XML 36 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
STOCKHOLDER'S EQUITY
9 Months Ended
Sep. 30, 2014
Stockholders' Equity Note [Abstract]  
STOCKHOLDER'S EQUITY
NOTE 7– STOCKHOLDER’S EQUITY
 
Common Stock
 
On March 19, 2014, the Company entered into a consulting agreement for the consultant to provide the Company general consulting services which would include financing introductions, business development opportunities and general marketing activities. In connection with this agreement, during the nine months ended September 30, 2014, the Company issued 5000 shares values at $62,500. The fair value of the stock issuance was based upon the quoted closing price on the date of issuance.
 
On June 25, 2014, the Company filed an amendment to the Company’s Articles of Incorporation with the Secretary of State of Nevada, to increase the Company’s authorized common stock from seven hundred fifty million (  750,000,000) shares of common stock, par value $ 0.001, to two billion five hundred million (2,500,000,000) shares of commons stock, par value $ 0.001 per share.
 
During the first nine months of 2014, the Company issued common stock for conversions of debt and accrued interest as noted earlier. The total number of shares issued during the first nine months of 2014 totaled 5,835,879 in exchange for $326,315 in convertible debt and accrued interest.
  
Series A Preferred Stock
 
In 2013, the Company determined that it was in their best interests to file a Certificate of Designation that authorized the issuance of up to one million (1,000,000) shares of a new series of preferred stock, par value $0.001 per share, designated as “Series A Preferred Stock”.
 
Each holder of outstanding shares of Series A Preferred Stock shall be entitled to five hundred ( 500) votes for each share of Series A Preferred Stock held on the record date for the determination of stockholders entitled to vote at each meeting of stockholders of the Company; No liquidation value and no rights or dividends.
 
On March 18, 2014, the Company issued an aggregate of 500,000 shares of Series A Preferred Stock to the Company’s President, Chief Executive officer, Secretary and Treasurer, in consideration for services rendered to the Company, including for an as an incentive to continue To assist and provide services to the Company. Based upon the voting control obtained, the Company recorded stock compensation of $191,131.
XML 37 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
BUSINESS OPERATIONS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
9 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
Basis of Presentation
Basis of presentation
 
The accompanying unaudited condensed financial statements have been prepared with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.
 
It is management’s opinion, however, that all material adjustments (consisting of normal and recurring adjustments) have been made which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the full year.
Impact of New Accounting Standards
Impact of New Accounting Standards
 
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
Estimates
Estimates
 
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Derivative Liabilities
Derivative Liabilities
 
We value derivative liabilities using a multinomial lattice model. The model is based on a probability weighted discounted cash flow model of future projections of various outcomes. Some of the key assumptions include the likelihood of future financing, stock price volatility, and discount rates.
Loss Per Share
Loss per Share
 
Basic earnings per share amounts are calculated based on the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is based on the weighted average numbers of shares of common stock outstanding for the periods, including dilutive effects of stock options, warrants granted and convertible preferred stock. Dilutive options and warrants that are issued during a period or that expire or are canceled during a period are reflected in the computations for the time they were outstanding during the periods being reported. Since Ehouse has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive and therefore are not included in the calculation
 
On November 6, 2014 the Board of Directors and majority shareholders approved an Amendment to the Articles of Incorporation to increase the total authorized capital from 2,500,000,000 shares of common stock, par value $ 0.001, to 5,000,000,000 shares of common Stock, and effectuate a reverse stock split of the issued and outstanding shares of common stock on a 1 for 100 basis. The EPS calculation based on share number after reverse split.
Subsequent Events
Subsequent Events
 
The Company follows the guidance in FASB ASC 855-10-50 for the disclosure of subsequent events from the date of the balance sheet through the date when the financial statements are issued or available to be issued.
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative Liabilities $ 495,857 $ 89,372 $ 0
Recurring [Member] | Significant Unobservable Inputs (Level 3)
     
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative Liabilities $ 495,858 $ 89,372  
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DERIVATIVE LIABILITIES (Fair Value Measurement Assumptions) (Details)
9 Months Ended
Sep. 30, 2014
Commitment Date [Member]
 
Debt Instrument [Line Items]  
Expected dividends: 0.00%
Expected volatility: minimum 192.00%
Expected volatility: maximum 415.00%
Risk free interest rate: minimum 0.10%
Risk free interest rate: maximum 0.13%
Remeasurement Date [Member]
 
Debt Instrument [Line Items]  
Expected dividends: 0.00%
Expected volatility: 264.00%
Maximum [Member] | Commitment Date [Member]
 
Debt Instrument [Line Items]  
Expected term (years): 2 years
Maximum [Member] | Remeasurement Date [Member]
 
Debt Instrument [Line Items]  
Expected term (years): 1 year 9 months
Risk free interest rate: maximum 1.75%
Minimum [Member] | Commitment Date [Member]
 
Debt Instrument [Line Items]  
Expected term (years): 6 months
Risk free interest rate: 0.10%
Minimum [Member] | Remeasurement Date [Member]
 
Debt Instrument [Line Items]  
Expected term (years): 1 month 13 days
Risk free interest rate: minimum 0.12%
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Statement of Stockholders Equity (USD $)
Total
Preferred Shares [Member]
Common Shares [Member]
Additional Paid-in Capital [Member]
Accumulated (Deficit) [Member]
Balance at Dec. 31, 2013 $ (278,008)   $ 998 $ 118,802 $ (397,808)
Balance, shares at Dec. 31, 2013     998,000    
Preferred Stock Issued for services 191,131 500   190,631 0
Preferred Stock Issued for services, shares   500,000      
Common stock issued for services ($0.12/share) 62,500   5 62,495  
Common stock issued for services ($0.12/share), shares     5,000    
Reclassification of derivative liability associated with convertible debt 933,153     933,153  
Common stock issued to Investment company 50,000   400 49,600  
Common stock issued to Investment company (in shares)     400,000    
Convertible debt and accrued interest converted into common stock 326,315   5,836 320,479  
Convertible debt and accrued interest converted into common stock, shares     5,835,879    
Net Loss (2,063,260)       (2,063,260)
Balance at Sep. 30, 2014 $ (778,169) $ 500 $ 7,239 $ 1,675,160 $ (2,461,068)
Balance, shares at Sep. 30, 2014   500,000 7,238,879    
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GOING CONCERN
9 Months Ended
Sep. 30, 2014
Going Concern [Abstract]  
GOING CONCERN
NOTE 3 – GOING CONCERN
 
The accompanying financial statements have been prepared assuming that we will continue as a going concern. As reflected in the accompanying financial statements, we have very limited financial resources, with working capital and net shareholder deficits and had generated no revenue through September 30, 2014.
 
We have actively developed and plan to introduce sixteen different liquid nutritional products into the market. While we are undertaking our business plan to generate additional revenues, our cash position may not be sufficient to support our basic business plan and product distribution efforts. Management believes that the actions presently underway to introduce our products to the marketplace have a realistic chance of succeeding. While we believe in the viability of our strategy to increase revenues and in our ability to raise additional funds, there can be no assurances to that effect. Our ability to continue as a going concern is dependent upon our ability to achieve profitable operations or obtain adequate financing.
 
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.
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DERIVATIVE LIABILITIES (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2014
Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Interest Expense, Debt, Excluding Amortization $ 199,046 $ 1,226,180 $ 0
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BUSINESS OPERATIONS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $)
1 Months Ended
Sep. 30, 2014
Jun. 24, 2014
Mar. 31, 2014
Dec. 31, 2013
Nov. 06, 2014
Subsequent Event [Member]
Common Stock, Shares Authorized 2,500,000,000 750,000,000   2,500,000,000 5,000,000,000
Stockholders' Equity, Reverse Stock Split         reverse stock split of the issued and outstanding shares of common stock on a 1 for 100 basis.
Common Stock, Par or Stated Value Per Share $ 0.001   $ 0.001 $ 0.001