5. DERIVATIVE LIABILITIES(Tables)

9 Months Ended

Sep. 30, 2014

Re-acquisition of distributorship

Schedule of financial assets and liabilities by level

			Fair Value Measurement at September 30, 2014
Liabilities:	Carrying Value at September 30, 2014		Level 1		Level 2		Level 3
Warrant derivative liabilities	$	5,325	$	-	$	-	$	5,325
Convertible debt derivative liabilities		-		-		-		-
Total	$	5,325	$	-	$	-	$	5,325

			Fair Value Measurement at December 31, 2014
Liabilities:	Carrying Value at December 31, 2013		Level 1		Level 2		Level 3
Warrant derivative liabilities	$	955,350	$	-	$	-	$	955,350
Convertible debt derivative liabilities		85,500		-		-		85,500
Total	$	1,040,850	$	-	$	-	$	1,040,850

Fair Value Of Derivative Warrant Liabilities Using American Option Binomial Model

Dividend yield:	0%
Expected volatility	84% to 174%
Risk free interest rate	0.13% to 1.07%
Expected life (years)	1.08 to 2.82

The Following Table Sets Forth The Changes In Derivative Liabilities

Balance, December 31, 2013	$	(1,040,850	)
Convertible debt derivatives recognized as derivative loss		(22,500	)
Convertible debt derivatives recognized as debt discount		(90,000	)
Resolution of convertible debt derivatives upon conversions		132,417
Resolution of convertible debt derivatives upon debt payoff		59,311
Resolution of warrant derivatives no longer qualifying as derivative liabilities		918,580
Gain on change in fair value of derivative liabilities		37,717
Balance, September 30, 2014	$	(5,325	)