Derivative

Liability

Debt

Discount

Gain (Loss) on Derivative

Liability

Gain on Extinguishment of Debt

Interest Expense

Balance at December 31, 2013

$ 2,104,849

$ (408,194)

Adjustment to derivative liability

(400,580)

-

$ 400,580

$ -

New debt – debt discount

407,500

(173,000)

(234,500)

-

New debt – original issue discount

(1,000)

-

New debt – beneficial conversion feature

(172,908)

-

Amortization of debt discount to interest expense

-

298,173

-

(298,173)

Debt conversions and repayments

(225,484)

35,571

-

45,830

-

Balance at March 31, 2014

$ 1,886,285

$ (421,358)

$ 166,080

$ 45,830

$ (298,173)