INVESTMENT IN A RELATED PARTY	12 Months Ended
Dec. 31, 2013
Notes to Financial Statements
INVESTMENT IN A RELATED PARTY	NOTE 9 - INVESTMENT IN A RELATED PARTY In May 2013, the Company made an investment in the amount of $1,160 in Vape Holdings, Inc. (“Vape”), a Nevada corporation. Sterling Scott, the Company’s Chief Executive Officer, has a personal investment in Vape as well. As of the time of this filing, Mr. Scott holds 269,541 shares of Vape’s common stock. Furthermore, the former President of GrowLife, Inc. is currently the Chief Executive Officer of Vape. As a result of Mr. Scott’s ownership of Vape common stock, the Company has deemed Vape to be a related party and therefore has recorded its investment in Vape as an “Investment in a related party” on its balance sheet. The original cash investment of $1,160 resulted in the Company acquiring 29 units of an offering by Vape, with one unit consisting of 500 shares of common stock in Vape and the assignment of $25 of convertible debt owed by Peoplestring Corporation (“People”), a publicly traded company, to a third party. In the aggregate, the Company purchased 14,500 shares of the common stock of Vape and $725 of the assigned People debt, which accrues interest and is convertible into shares of Vape’s common stock at a per share conversion price of $0.002. On September 30, 2013, Vape completed a reverse merger with People with Vape being the surviving entity (symbol “VAPE”). Per the terms of the reverse merger agreement between Vape and People, the Company’s original 14,500 shares of Vape common stock were exchanged for 7,653,611 shares of the now publicly traded Vape. On December 24, 2013, Vape converted the assigned People debt and all accrued interest into shares of Vape’s common stock at a per share conversion price of $0.002, which resulted in the Company owning an additional 363,513 shares of Vape’s common stock. As a result, the Company held an aggregate amount of 8,017,123 shares of Vape’s common stock. On January 8, 2014, Vape completed a 1 for 40 reverse split of its common stock, immediately after which the Company owned 200,428 shares of Vape common stock. Adjusting for the reverse stock split that was completed on January 8, 2014, the value of the Company’s investment in Vape as of December 31, 2013 was $5.60 per share, or $1,122,397 (200,428 shares x $5.60 per share) in the aggregate. Accordingly, the Company adjusted its “Investment in a related party” balance sheet account from the original cost of $1,160 to the above mentioned fair value of $1,122,397 as of December 31, 2013. The corresponding credit entry was to “Unrealized gain on investment in a related party” in the “Stockholders’ Deficit” section of the Company’s balance sheet. Prior to the reverse merger between Vape and People, the Company did not value this investment as Vape had nominal business operations. As of the time of this filing, the Company still owned 200,428 shares of Vape’s common stock.

INVESTMENT IN A RELATED PARTY

12 Months Ended

Dec. 31, 2013

NOTE 9 - INVESTMENT IN A RELATED PARTY

In May 2013, the Company made an investment in the amount of $1,160 in Vape Holdings, Inc. (“Vape”), a Nevada corporation.

Sterling Scott, the Company’s Chief Executive Officer, has a personal investment in Vape as well. As of the time of this filing, Mr. Scott holds 269,541 shares of Vape’s common stock. Furthermore, the former President of GrowLife, Inc. is currently the Chief Executive Officer of Vape. As a result of Mr. Scott’s ownership of Vape common stock, the Company has deemed Vape to be a related party and therefore has recorded its investment in Vape as an “Investment in a related party” on its balance sheet.

The original cash investment of $1,160 resulted in the Company acquiring 29 units of an offering by Vape, with one unit consisting of 500 shares of common stock in Vape and the assignment of $25 of convertible debt owed by Peoplestring Corporation (“People”), a publicly traded company, to a third party. In the aggregate, the Company purchased 14,500 shares of the common stock of Vape and $725 of the assigned People debt, which accrues interest and is convertible into shares of Vape’s common stock at a per share conversion price of $0.002.

On September 30, 2013, Vape completed a reverse merger with People with Vape being the surviving entity (symbol “VAPE”). Per the terms of the reverse merger agreement between Vape and People, the Company’s original 14,500 shares of Vape common stock were exchanged for 7,653,611 shares of the now publicly traded Vape.

On December 24, 2013, Vape converted the assigned People debt and all accrued interest into shares of Vape’s common stock at a per share conversion price of $0.002, which resulted in the Company owning an additional 363,513 shares of Vape’s common stock. As a result, the Company held an aggregate amount of 8,017,123 shares of Vape’s common stock.

On January 8, 2014, Vape completed a 1 for 40 reverse split of its common stock, immediately after which the Company owned 200,428 shares of Vape common stock.

Adjusting for the reverse stock split that was completed on January 8, 2014, the value of the Company’s investment in Vape as of December 31, 2013 was $5.60 per share, or $1,122,397 (200,428 shares x $5.60 per share) in the aggregate. Accordingly, the Company adjusted its “Investment in a related party” balance sheet account from the original cost of $1,160 to the above mentioned fair value of $1,122,397 as of December 31, 2013. The corresponding credit entry was to “Unrealized gain on investment in a related party” in the “Stockholders’ Deficit” section of the Company’s balance sheet. Prior to the reverse merger between Vape and People, the Company did not value this investment as Vape had nominal business operations.

As of the time of this filing, the Company still owned 200,428 shares of Vape’s common stock.