10. RELATED PARTY TRANSACTIONS AND CERTAIN RELATIONSHIPS	12 Months Ended
Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS AND CERTAIN RELATIONSHIPS	Since January 1, 2014, the Company engaged in the following reportable transactions with our directors, executive officers, holders of more than 5% of our voting securities, and affiliates or immediately family members of our directors, executive officers and holders of more than 5% of our voting securities. Certain Relationships Please see the transactions with CANX, LLC and Logic Works LLC in Note 5 and TCA Global Credit Master Fund LP as discussed in Note 11 and 12. Transaction with Marco Hegyi Mr. Hegyi warrant to purchase up to twenty five million shares of the Company’s common stock at an exercise price of $0.08 per share was reduced to $0.01 per share on December 18, 2015. The reduction in exercise price resulted in no additional compensation expense at December 31, 2015. Transaction with an Entity Controlled by Mark E. Scott An entity controlled by Mr. Scott received an option to purchase sixteen million shares of the Company’s common stock at an exercise price of $0.07 per share was reduced to $0.01 per share on December 18, 2015. The reduction in exercise price resulted in no additional compensation expense at December 31, 2015. Two million shares vested on August 17, 2015 with the Company’s resolution of the class action lawsuits. Loans and Advances from Sterling C. Scott Sterling Scott, our former CEO, advanced various amounts to us. As of December 31, 2011, the amount due the former CEO was $183,103, and additional advances of $98,897 were made to us through April 5, 2012. On April 5, 2012, Mr. Scott 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 September 10, 2014, the outstanding principal balance on Mr. Scott’s 6% convertible note was $413,680 and accrued interest were sold to two parties not related to us. Investment in Vape Holdings, Inc. Please see the transactions with Vape Holding, Inc. as discussed in Note 7.

10. RELATED PARTY TRANSACTIONS AND CERTAIN RELATIONSHIPS

12 Months Ended

Dec. 31, 2015

Since January 1, 2014, the Company engaged in the following reportable transactions with our directors, executive officers, holders of more than 5% of our voting securities, and affiliates or immediately family members of our directors, executive officers and holders of more than 5% of our voting securities.

Certain Relationships

Please see the transactions with CANX, LLC and Logic Works LLC in Note 5 and TCA Global Credit Master Fund LP as discussed in Note 11 and 12.

Transaction with Marco Hegyi

Mr. Hegyi warrant to purchase up to twenty five million shares of the Company’s common stock at an exercise price of $0.08 per share was reduced to $0.01 per share on December 18, 2015. The reduction in exercise price resulted in no additional compensation expense at December 31, 2015.

Transaction with an Entity Controlled by Mark E. Scott

An entity controlled by Mr. Scott received an option to purchase sixteen million shares of the Company’s common stock at an exercise price of $0.07 per share was reduced to $0.01 per share on December 18, 2015. The reduction in exercise price resulted in no additional compensation expense at December 31, 2015. Two million shares vested on August 17, 2015 with the Company’s resolution of the class action lawsuits.

Loans and Advances from Sterling C. Scott

Sterling Scott, our former CEO, advanced various amounts to us. As of December 31, 2011, the amount due the former CEO was $183,103, and additional advances of $98,897 were made to us through April 5, 2012. On April 5, 2012, Mr. Scott 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 September 10, 2014, the outstanding principal balance on Mr. Scott’s 6% convertible note was $413,680 and accrued interest were sold to two parties not related to us.

Investment in Vape Holdings, Inc.

Please see the transactions with Vape Holding, Inc. as discussed in Note 7.

- 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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