7. DERIVATIVE LIABILITIES (Tables)

6 Months Ended

Jul. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Liabilities for Estimated Fair Value of Derivative Warrant Instruments

Common stock issuable upon exercise of warrants		30,739,129
Market price of the Company’s common stock on the measurement dates	$	0.05 and 0.09
Exercise price	$	0.125
Risk free interest rate (1)		0.475	%
Dividend yield		0.00	%
Volatility		257.95	%
Expected exercise term in years		1.5

(1) The risk-free interest rate was determined by management using the average of 1- and 2-year Treasury Bill yield as of the grant dates.

The fair value of warrants issued in the April 2011 Unit Offering has been estimated on the dates of grant using the Black-Scholes option pricing model, under the following assumptions:

Common stock issuable upon exercise of warrants		4,000,000
Market price of the Company’s common stock on the measurement dates	$	0.08 and 0.10
Exercise price	$	0.125
Risk free interest rate range (1)		0.61 - 0.81	%
Dividend yield		0.00	%
Volatility range		268.16 - 284.75	%
Expected exercise term in years		1.5

(1) The risk-free interest rate was determined by management using the 2-year Treasury Bill yield as of the grant dates.

The fair value of warrants issued in the June and July 2011 Unit Offering has been estimated on the dates of grant using the Black-Scholes option pricing model, under the following assumptions:

Common stock issuable upon exercise of warrants		4,000,000
Market price of the Company’s common stock on the measurement dates	$	0.07 and 0.08
Exercise price	$	0.125
Risk free interest rate range (1)		0.37 - 0.38	%
Dividend yield		0.00	%
Volatility range		257.60 - 259.63	%
Expected exercise term in years		1.5

(1) The risk-free interest rate was determined by management using the 2-year Treasury Bill yield as of the grant dates.

The fair value of warrants issued in the March 2012 Unit Offering has been estimated on the dates of grant using the Black-Scholes option pricing model, under the following assumptions:

Common stock issuable upon exercise of warrants		2,125,000
Market price of the Company’s common stock on the measurement date	$	0.05
Exercise price	$	0.06
Risk free interest rate (1)		0.37	%
Dividend yield		0.00	%
Volatility		295.28	%
Expected exercise term in years		2.0

(1) The risk-free interest rate was determined by management using the 2-year Treasury Bill yield as of the grant date.

The following is a summary of the assumptions used in the probability-weighted scenario analysis model to estimate the fair value of the warrants as of the balance sheet dates as of July 31, 2013 and January 31, 2013, respectively:

	July 31, 2013			January 31, 2013
Common stock issuable upon exercise of warrants		41,671,195			41,671,195
Market price of the Company’s common stock on the measurement dates		0.010			0.008
Exercise price range		0.03 - 0.06			0.03 - 0.06
Risk free interest rate range (1)		0.61 - 0.99	%		0.42 - 0.65	%
Dividend yield		0.00	%		0.00	%
Volatility range		318.59 - 342.02	%		306.62 - 327.98	%
Expected exercise term in years		2.39 - 3.63			2.89 - 4.12

(1) The risk-free interest rate was determined by management using the 3-year and the average of the 3- and 5-year Treasury Bill as of July 31, 2013 and January 31, 2013.