12. CONVERTIBLE NOTES PAYABLE (Tables)

6 Months Ended

7 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Convertible Notes Payable Tables

Convertible Notes activity

The table below summarizes our Convertible Notes activity during the six months ended June 30, 2014:

	Principal				Debt			Accrued
	Balance				Discount			Interest			Total
Balance at December 31, 2013	$	700,000			$	(84,694	)	$	871		$	616,177
Issued in the period		1,605,000				(1,605,000	)		-			-
Converted into shares of common stock		(255,000	)			-			(3,669	)		(258,669	)
Amortization of debt discount		-				417,881			-			417,881
Payment of loan principal		(3,178	)			-			-			(3,178	)
Interest accrued during period		-				-			49,274			49,274
Interest paid during period		-				-			(44,612	)		(44,612	)
Balance at June 30, 2014		2,046,822				(1,271,813)			-			775,009
Less:  Current portion		(5,927	)	(1)		-			-			(5,927	)
Long-term debt	$	2,040,895			$	(1,271,813)		$	1,864		$	770,946

(1)   The current portion represents the principal balance payable on the 8 ½% convertible note payable in the twelve months following the balance sheet date

The table below summarizes our Convertible Notes activity during the year ended December 31, 2013:

	Convertible Notes Payable		Debt Discount		Convertible Notes Payable, Net
June 5, 2013 (Inception)	$	-	$	-	$	-
Proceeds from issuance of convertible debt
12% convertible notes issued December 27,2013		530,000		(85,488)		444,512
8% convertible notes issued December 31,2013		170,000		-		170,000
Amortization of debt discount		-		794		794
Total		700,000		(84,694)		615,306
Current portion of debt		(5,356)		-		(5,356)
Long term portion at December 31, 2013	$	694,644	$	(84,694)	$	609,950