CONVERTIBLE PROMISSORY NOTES

3 Months Ended

Mar. 31, 2014

Convertible Debt [Abstract]

CONVERTIBLE PROMISSORY NOTES

8.  CONVERTIBLE PROMISSORY NOTES

	March 31,	December 31,
	2014	2013
Convertible promissory notes with interest at 12% per annum, convertible into common shares at fixed price of $0.25 per share. Maturity ranges from December 31, 2014 to November 11, 2018, net of unamortized discount of $608,489 and $686,289, respectively. (A)	$    391,511	$       313,711
Convertible promissory notes with interest at 12% per annum, convertible into common shares at fixed price of $0.35 per share. Matured on May 30, 2012 and currently in default. (B)	354,515	354,515
Convertible promissory notes with interest at 12% per annum, convertible into common shares at fixed price of $0.35 per share. Maturity ranges from October 13, 2014 to October 22, 2014, net of unamortized discount of $80,696 and $115,873, respectively.	369,304	334,127
Convertible promissory notes with interest at 8% per annum, convertible into common shares at fixed price of $0.30 per share. Matured on October 13, 2013 and currently in default. (C)	250,000	250,000
Convertible promissory notes with interest at 9% per annum, convertible into common shares at the lesser of $0.35 per share or a 10% discount to the market value the day prior to the date of conversion. Matured and repaid on January 6, 2013.	-	250,000
	1,365,330	1,502,353
Less current portion:	(1,327,530)	(1,489,253)
Long-term portion:	$      37,800	$          13,100

(A)

Includes one note in the amount of $50,000 which matured on April 15, 2014 and is currently in default.  The Company is negotiating with the debt holder for a note extension. The Company continues to accrue the interest at12%.

(B)

Currently, the Company is still negotiating a note extension with the holder for a consideration of $10,000 to extend the maturity date to September 30, 2014. The Company continues to accrue the interest at12%.

(C)

Currently, the Company is still negotiating a note extension with the holder to extend the maturity date to June 30, 2014 for a consideration of (1) the issuance of a warrant to purchase 3,000,000 shares of common stock with an exercise price at $0.25 per share and a life of five years; and (2) an extension of all existing warrants for another five years. The Company continues to accrue the interest at 8%.

The Company recorded $112,977 and $144,328 of interest expense pursuant to the amortization of the note discounts for the three months ended March 31, 2014 and 2013, respectively.

The intrinsic value for the outstanding convertible promissory notes as of March 31, 2014 and December 31, 2013 was approximately $0.