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12. RELATED PARTY TRANSACTIONS	6 Months Ended
Jun. 30, 2014
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	In May 2013, the family of Sterling Scott, the Company’s former Chief Executive Officer, wired $1,160 on behalf of the Company to Vape Holdings, Inc. in relation to the purchase, by the Company, of shares of Vape’s common stock. The amount and accrued interest of $1,242 was paid on June 10, 2014. Sterling Scott advanced various amounts to the Company. As of December 31, 2011, the amount due the CEO was $183,103, and additional advances of $98,897 were made to the Company through April 5, 2012. On April 5, 2012, the CEO converted $282,000 of these advances into a 6% senior convertible note. Mr. Scott made further advances during the year ended December 31, 2012 which were converted into the 6% senior convertible note. As of December 31, 2013, total amount owed to Mr. Scott was $453,932, which consisted of $413,680 in principal and $40,252 in accrued interest. As of June 30, 2014, the outstanding principal balance on Mr. Scott’s 6% convertible note was $413,680 with accrued and interest totaling $58,137. Per the terms of the 6% convertible note, the principal and interest can be converted into shares of the Company’s common stock at a per share conversion price of $0.007 or 67,402,429 shares of the Company’s common stock as of June 30, 2014. On February 26, 2014, the Company engaged Jeff Giarraputo, who is currently a member of the Company’s Board of Directors, as an advisor to the Company for six (6) months, effective as of February 15, 2014. The scope of the work to be performed by Mr. Giarraputo was to provide marketing, business development, and general management to the Company as related to the cannabis industry. As compensation for these services, the Company, pending approval by its Board of Directors, was expected to grant Mr. Giarraputo a stock option to purchase 2,000,000 shares of the Company’s common stock at $0.31 per share, which represents the 30-day trailing average of the Company’s common stock. All shares subject to the option will vest over a 6-month period beginning on the date of engagement and are subject to the terms and conditions of the Company’s 2011 Stock Incentive Plan including vesting requirements. On August 19, 2014, the Parties cancelled this Agreement.

12. RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2014

In May 2013, the family of Sterling Scott, the Company’s former Chief Executive Officer, wired $1,160 on behalf of the Company to Vape Holdings, Inc. in relation to the purchase, by the Company, of shares of Vape’s common stock. The amount and accrued interest of $1,242 was paid on June 10, 2014.

Sterling Scott advanced various amounts to the Company. As of December 31, 2011, the amount due the CEO was $183,103, and additional advances of $98,897 were made to the Company through April 5, 2012. On April 5, 2012, the CEO converted $282,000 of these advances into a 6% senior convertible note. Mr. Scott made further advances during the year ended December 31, 2012 which were converted into the 6% senior convertible note. As of December 31, 2013, total amount owed to Mr. Scott was $453,932, which consisted of $413,680 in principal and $40,252 in accrued interest. As of June 30, 2014, the outstanding principal balance on Mr. Scott’s 6% convertible note was $413,680 with accrued and interest totaling $58,137. Per the terms of the 6% convertible note, the principal and interest can be converted into shares of the Company’s common stock at a per share conversion price of $0.007 or 67,402,429 shares of the Company’s common stock as of June 30, 2014.

On February 26, 2014, the Company engaged Jeff Giarraputo, who is currently a member of the Company’s Board of Directors, as an advisor to the Company for six (6) months, effective as of February 15, 2014. The scope of the work to be performed by Mr. Giarraputo was to provide marketing, business development, and general management to the Company as related to the cannabis industry. As compensation for these services, the Company, pending approval by its Board of Directors, was expected to grant Mr. Giarraputo a stock option to purchase 2,000,000 shares of the Company’s common stock at $0.31 per share, which represents the 30-day trailing average of the Company’s common stock. All shares subject to the option will vest over a 6-month period beginning on the date of engagement and are subject to the terms and conditions of the Company’s 2011 Stock Incentive Plan including vesting requirements. On August 19, 2014, the Parties cancelled this Agreement.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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