INVESTMENT IN A RELATED PARTY	3 Months Ended
Mar. 31, 2014
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 257,320 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. 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. As of March 31, 2014, the Company’s investment in Vape was valued at $3,707,918, which equates to 200,428 shares at a per share value of $18.50, which was the closing price of Vape’s common stock on March 31, 2014. The Company recorded the $2,585,521 gain in the value of its investment in Vape by debiting its “Investment in a related party” balance sheet account while also recording a corresponding credit to “Unrealized gain on investment in a related party” in the Stockholders’ deficit section of the Company’s balance sheet. As of the time of this filing, the Company still owned 200,428 shares of Vape’s common stock.

INVESTMENT IN A RELATED PARTY

3 Months Ended

Mar. 31, 2014

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 257,320 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.

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. As of March 31, 2014, the Company’s investment in Vape was valued at $3,707,918, which equates to 200,428 shares at a per share value of $18.50, which was the closing price of Vape’s common stock on March 31, 2014. The Company recorded the $2,585,521 gain in the value of its investment in Vape by debiting its “Investment in a related party” balance sheet account while also recording a corresponding credit to “Unrealized gain on investment in a related party” in the Stockholders’ deficit section of the Company’s balance sheet.

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