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NOTES PAYABLE
9 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract]  
NOTES PAYABLE
NOTE 6 - NOTES PAYABLE
 
On September 8, 2014, the Company issued notes payable for $150,000, which included fully vested warrants to purchase 900,000 shares of the Company’s common stock at an exercise price of $0.05 per share, expiring in five years.  The warrants were valued at $62,544 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 233.8%, risk free interest rate of 1.67% and expected life of 5 years.  The relative fair value of the warrants was $44,140 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes.  For the three and nine months ended September 30, 2014, $11,700 was accreted through interest expense.  The note and accrued interest at 8% per annum are due in full on December 1, 2014.  The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815.  The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings.  As of September 30, 2014, the fair value of the warrant liability was $44,566 and the note payable balance was $117,560, net of $32,440 discount.
 
On August 14, 2014, the Company issued notes payable for $100,000, which included fully vested warrants to purchase 600,000 shares of the Company’s common stock at an exercise price of $0.05 per share, expiring in five years.  The warrants were valued at $47,676 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 233.8%, risk free interest rate of 1.67% and expected life of 5 years.  The relative fair value of the warrants was $32,274 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes.  For the three and nine months ended September 30, 2014, $14,045 was accreted through interest expense.  The note and accrued interest at 8% per annum are due in full on December 1, 2014.  The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815.  The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings.  As of September 30, 2014, the fair value of the warrant liability was $29,697 and the note payable balance was $81,771, net of $18,229 discount.
 
On August 12, 2014, the Company issued notes payable for $50,000, which included fully vested warrants to purchase 300,000 shares of the Company’s common stock at an exercise price of $0.05 per share, expiring in five years.  The warrants were valued at $26,817 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 233.8%, risk free interest rate of 1.67% and expected life of 5 years.  The relative fair value of the warrants was $17,455 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes.  For the three and nine months ended September 30, 2014, $7,775 was accreted through interest expense.  The note and accrued interest at 8% per annum are due in full on December 1, 2014.  The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815.  The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings.  As of September 30, 2014, the fair value of the warrant liability was $14,848 and the note payable balance was $40,320, net of $9,680 discount.
 
On August 5, 2014, the Company issued notes payable for $100,000, which included fully vested warrants to purchase 600,000 shares of the Company’s common stock at an exercise price of $0.05 per share, expiring in five years.  The warrants were valued at $29,725 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 233.8%, risk free interest rate of 1.67% and expected life of 5 years.  The relative fair value of the warrants was $22,914 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes.  For the three and nine months ended September 30, 2014, $10,653 was accreted through interest expense.  The note and accrued interest at 8% per annum are due in full on December 1, 2014.  The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815.  The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings.  As of September 30, 2014, the fair value of the warrant liability was $29,692 and the note payable balance was $87,739, net of $12,261 discount.
 
On June 10, 2014, the Company issued a note payable for $250,000, which included fully vested warrants to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $0.10 per share, expiring in five years.  The warrants were valued at $39,650 using Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 248.2%, risk free interest rate of 1.67% and expected life of 5 years.  The relative fair value of the warrants was $34,222 and was recorded as a discount to the notes payable in accordance with FASB ASC 835-30-25, Recognition and is being accreted over the term of the note payable for financial statement purposes.  For the three and nine months ended September 30, 2014, $26,617 and $34,222, respectively, were accreted through interest expense.  The note and accrued interest at 8% per annum as was originally due on September 11, 2014, but the Company received approval to extend the maturity until December 11, 2014.  The warrants are subject to anti-dilutive adjustments and are therefore classified as a liability in accordance with FASB ASC 815.  The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings.  As of September 30, 2014, the fair value of the warrant liability was $49,026 and the note payable balance was $250,000.