11. STOCK HOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2014

Stock Holders Equity Tables

Assumptions used for warrant valuation

The following assumptions were used to derive the value of the warrants using the Black-Scholes pricing model:

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

	Exercise Price		Warrants Outstanding		Weighted Average Life of Outstanding Warrants in Months		Date of Expiration
Series A Warrants	$	10.00		973,000		28	7/31/2016
Series B Warrants		5.00		42,700		56	10/31/2018
Series C Warrants		5.50		1,000,000		34	1/21/2017
	$	7.77		2,015,700		32

Schedule of common stock and warrants issued and outstanding

	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 $255,000 convertible notes payable and accrued interest of $3,669		51,733		-
Balance at March 31, 2014		13,438,933		2,015,700