13.	STOCK WARRANTS

On March 9, 2011, the Company borrowed $50,000 in exchange for a convertible debenture, which was converted in full with accrued interest in the second quarter of 2012. As further inducement for loaning the Company the funds, the Company granted the lender 50,000 and 100,000 warrants at $337.50 and $472.50 per share, respectively. Before discount, the Company determined and recorded the fair market value of the warrants as $7,500 using the Black-Scholes valuation model. See Note 12. CONVERTIBLE DEBENTURES, reference (4) for similar warrant arrangement made with another lender.