4. STOCKHOLDERS EQUITY (Tables)

9 Months Ended

Sep. 30, 2014

STOCKHOLDERS' EQUITY (DEFICIT)

A Summary Of The Status Of The Warrants Granted

For the Nine Months Ended September 30, 2014
	Shares		Weighted Average Exercise Price
Outstanding at beginning of period		15,670,143	$	0.37
Granted		-		-
Exercised		-		-
Forfeited		-		-
Expired		4,733,299		0.68
Outstanding at end of period		10,936,844	$	0.23

Schedule of warrants by warrant price range

		As of September 30, 2014						As of September 30, 2014
		Warrants Outstanding						Warrants Exercisable
Range of Exercise Prices		Number Outstanding		Weighted-Average Remaining Contract Life		Weighted- Average Exercise Price		Number Exercisable		Weighted-Average Exercise Price
$	0.06		4,500,000		4.0	$	0.06		4,500,000	$	0.06
	0.08		550,000		3.4		0.08		550,000		0.08
	0.09		625,000		3.5		0.09		625,000		0.09
	0.15		1,571,300		2.9		0.15		1,571,300		0.15
	0.25		120,000		1.1		0.25		120,000		0.25
	0.40		300,000		0.8		0.40		300,000		0.40
	0.44		1,515,544		1.9		0.44		1,515,544		0.44
	0.50		370,000		1.5		0.50		370,000		0.50
	0.60		975,000		2.0		0.60		975,000		0.60
	0.75		120,000		1.1		0.75		120,000		0.75
	1.00		290,000		1.6		1.00		290,000		1.00
$	0.06-1.00		10,936,844		3.0	$	0.23		10,936,844	$	0.23

Schedule of option activity

For the Nine Months Ended September 30, 2014
	Options		Weighted Average Exercise Price
Outstanding at beginning of period		3,943,500	$	0.15
Granted		-		-
Exercised		-		-
Forfeited		-		-
Expired		-		-
Outstanding at end of Period		3,943,500	$	0.15

Schedule of options by option price range

		As of September 30, 2014						As of September 30, 2014
		Stock Options Outstanding						Stock Options Exercisable
Exercise Price		Number Outstanding		Weighted-Average Remaining Contract Life		Weighted- Average Exercise Price		Number Exercisable		Weighted-Average Exercise Price
$	0.15		3,943,500		2.89		0.15		3,826,833	$	0.15