CONVERTIBLE NOTES (Tables)

9 Months Ended

Sep. 30, 2013

Convertible Notes Tables

Significant assumptions

Significant assumptions used in such valuations included:

Expected life	5 years
Estimated volatility		75.0%
Risk-free interest rate		0.07% - 0.10%
Expected dividends	None

Convertible notes payable

A summary of convertible notes payable, net as of September 30, 2013, is as follows:

	Amount
Outstanding, December 31, 2012	$	772,000
Notes issued		4,009,000
Notes repaid		(172,000	)
Notes converted to common stock		(760,000	)
Debt discount recorded		(1,163,240	)
Debt discount amortized		657,307
Outstanding, September 30, 2013	$	3,343,067