Summary of Changes in Fair Value Convertible Notes Payable

Convertible promissory notes consists of the following:

	June 30, 2015			December 31, 2014
				(Unaudited)
Iliad Note (1):
Secured convertible promissory- note – Iliad	$	380,000		$	380,000
Total		380,000			380,000
Less:
OID of $20,000, net of amortization of $20,000 and $11,310 as of June 30, 2015 and December 31, 2014, respectively		-			(8,690	)

Conversions into 99,520,802 shares of common stock		(100,062	)		-

Loan discount of $202,500, net of amortization of $164,914 and $82,645 as of June 30, 2015 and December 31, 2014, respectively		(37,586	)		(119,855	)
Secured convertible promissory note – Iliad	$	242.352		$	251,455

Redwood Note (2):
Secured convertible promissory note – Redwood	$	75,000		$	75,000
Total		75,000			75,000
Less:
Conversion into 44,988,900 shares of common stock		(43,738	)		-
Assignment to Apollo Capital Corporation		(31,262	)		-
		-			-
Total		-			75,000
Loan discount of $75,000, net of amortization of $75,000 and $0 as of June 30, 2015 and December 31, 2014, respectively		-			-
Secured convertible promissory note - Redwood (note in default)	$	-		$	75,000

LG Capital Funding. LLC (3):
10% convertible redeemable note - LG Capital	$	40,000		$	40,000
Total		40,000			40,000
Loan discount of $40,000, net of amortization of $40,000 and $30,027 as of June 30, 2015 and December 31, 2014 respectively		-			(9,973	)
10% convertible redeemable note - LG Capital	$	40,000		$	30,027

8% convertible redeemable note - LG Capital	$	36,750		$	36,750
Total		36,750			36,750
Loan discount of $36,750, net of amortization of $36,750 and $17,116 as of June 30, 2015 and December 31, 2014, respectively		-			(19,634	)
Conversion into 51,082,166 shares of stock		(36,750	)		-
8% convertible redeemable note - LG Capital	$	-		$	17,116

WHC Capital, LLC (4):
10% convertible redeemable note - WHC Capital	$	32,000		$	32,000
		-			-
Total		32,000			32,000
Loan discount of $32,000, net of amortization of $32,000 and $23,759 as of June 30, 2015 and December 31, 2014, respectively		-			(8,241	)
Conversion into 37,034,976 shares of stock		(32,000	)		-
10% convertible redeemable note - WHC Capital	$	-		$	23,759

Summit Trading Ltd. (5):
10% convertible redeemable note – Summit	$	59,835		$	59,835
Total		59,835			59,835
Loan discount of $56,804, net of amortization of $49,645 and $21,478 as of June 30, 2015 and December 31, 2014, respectively		(7,159	)		(35,327	)
Conversion of demand note into a convertible note		36,530			-
Conversion of accounts payable into a convertible note		35,814			-
Transfer to Apollo Capital Corp		(59,835	)		-
Conversion into 45,260,256 shares of common stock		(22,270	)		-
10% convertible redeemable note – Summit	$	42,915		$	24,508

Apollo Capital Corporation (6)
Notes purchased from GE Park, LLC		176,200			-
Notes purchased from Summit		62,827			-
Notes purchased from Redwood		31,262			-
Conversion into 321,234,184 shares of common stock		(207,463	)		-
10% convertible redeemable note - Apollo Capital Group	$	62,826		$	-

Convertible promissory notes, net	$	388,093		$	421,865

Schedule of Fair Value Measurements Derivative Liability

	Carrying		Fair Value Measurements Using Fair Value Hierarchy
	Value		Level 1		Level 2		Level 3
Derivative liability – June 30, 2015	$	895,678	$	—	$	—	$	895,678
Derivative liability – December 31, 2014	$	1,282,532	$	—	$	—	$	1,282,532

Schedule of Derivative Liability Activity

The following table represents the Company’s warrant liability activity for the six months ended June 30, 2015:

Balance at December 31, 2014	$	545,837
Change in derivative liability during the six months ended June 30, 2015		76,124
Balance June 30, 2015	$	621,961

Schedule of Fair Value Measurements Derivative Liability

	Carrying		Fair Value Measurements Using Fair Value Hierarchy
	Value		Level 1		Level 2		Level 3
Convertible notes (net of discount) – June 30, 2015	$	388,093	$	-	$	-	$	388,093
Convertible notes (net of discount) – December 31, 2014	$	421,865	$	-	$	-	$	421,865

Summary of Changes in Fair Value Convertible Notes Payable

The following table provides a summary of the changes in fair value of the Company’s Convertible loan payable- related party, which are both Level 3 liabilities as of June 30, 2015:

Balance at December 31, 2014	$	110,862
Issuance of notes – net
Reclassification from loan payable into convertible loan payable		81,200
Amortized debt discount		63,888
Re-assigned into convertible loan payable- other		(176,200	)
Balance at June 30, 2015	$	79,750