STOCK HOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 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

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

	Exercise Price		Warrants Outstanding	Weighted Average Life of Outstanding Warrants in Months	Date of Expiration
Series A Warrants	$	10.00	973,000	22	7/31/2016
Series B Warrants		5.00	42,700	49	10/31/2018
Series C Warrants		4.00	1,400,000	28	1/21/2017
	$	6.43	2,415,700	26

Schedule of common stock and warrants issued and outstanding

The following table summarizes the changes in shares of common stock and warrants issued and outstanding for the nine months ended September 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	-	1,400,000
Warrants issued to placement agent – Series B Warrants	-	32,100
Shares issued for services	200,000	-
Issued in settlement of $485,000 convertible notes payable and accrued interest of $3,669	97,773	-
Balance at September 30, 2014	13,684,933	2,415,700