12. STOCK HOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2014

Stock Holders Equity Tables

Assumptions used to derive the value of the warrants

	June 30, 2014
Stock Price		13.75
Risk-free interest rate		1.81	%
Expected dividend yield		0.00	%
Expected term (in years)		4.8
Expected volatility		171	%

Warrants outstanding

The following table summarizes information about warrants outstanding as of June 30, 2014:

					Weighted Average Life of
			Warrants		Outstanding Warrants in
	Exercise Price		Outstanding		Months		Date of Expiration
Series A Warrants	$	10.00		973,000		25	7/31/2016
Series B Warrants		5.00		42,700		53	10/31/2018
Series C Warrants		5.50		1,000,000		31	1/21/2017
	$	7.77		2,015,700		29

Common stock issued and outstanding

The following table summarizes shares of common stock and warrants issued and outstanding for the six months ended June 30, 2014:

	Common Stock		Warrants
Balance at December 31, 2013		15,137,200		983,600
Re-acquired shares of common stock		(1,750,000)		-
Warrants issued to Full Circle for $500,000 consideration – Series C Warrants		-		1,000,000
Warrants issued to placement agent – Series B Warrants		-		32,100
Issued in settlement of $355,000 convertible notes payable and accrued interest of $6,308		72,140		-
Balance at June 30, 2014		13,459,340		2,015,700