PRIVATE PLACEMENT OFFERING (Tables)

6 Months Ended

Jun. 30, 2016

Private Placement Offering Tables

Allocated to the instruments as follows

Warrant liabilities	$	141,027
Redeemable and Convertible Preferred Stock		1,388,367
Common Stock		470,706
Total allocated gross proceeds:	$	2,000,100

Warrants

Average risk-free interest rate	0.10	%
Average expected life-years	1
Expected volatility	56.64	%
Expected dividends	4.01	%

Assumptions for the valuation of the fair value of the warrant liability

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding at December 31, 2014		6,909,000		$	0.15		0.19
Granted		-
Exercised		-
Extended		6,909,000			0.15		2
Forfeited/expired		(6,909,000	)		0.15
Outstanding at December 31, 2015		6,909,000			0.15		1.69
Granted		-
Exercised		-
Forfeited/expired		-
Outstanding at June 30, 2016		6,909,000		$	0.15		1.19
Exercisable at June 30, 2016		6,909,000		$	0.15		1.19