DEBT (Tables)

3 Months Ended

Mar. 31, 2014

DEBT

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

Risk-free interest rate	0.65% - 0.90%
Expected life of derivative liability	2.76 — 2.91 years
Expected volatility	93% - 94%
Dividend rate	0.00%

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

	Derivative
	Liability
Balance, January 1, 2014	$	2,169,408
Fair value of $2,000,000 drawdown	1,555,806
Unrealized gain - derivative liability	(653,768		)
Balance, March 31, 2014	$	3,071,446