DERIVATIVE LIABILITY (Tables)

6 Months Ended

Jun. 30, 2014

DERIVATIVE LIABILITY.

Schedule of assumptions used in calculation of the fair value of derivative liability using the Black-Scholes option pricing model

Risk-free interest rate	0.65% - 0.91%
Expected life of derivative liability	2.51 — 2.91 years
Expected volatility	84% - 94%
Dividend rate	0.00%

Schedule of changes in the derivative liabilities related to the conversion feature

	Derivative
	Liability
Fair value of derivative liability at January 31, 2014	$  2,169,408
Fair value of $2,000,000 drawdown	1,555,806
Fair value of $3,000,000 drawdown	1,691,319
Unrealized gain on derivative liability	(1,459,647)
Fair value of derivative liability at June 30, 2014	$  3,956,886