DERIVATIVE LIABILITY

3 Months Ended

Mar. 31, 2014

DERIVATIVE LIABILITY

DERIVATIVE LIABILITY

7. – DERIVATIVE LIABILITY

The following table represents the Company’s derivative liability activity for both the embedded conversion features and the warrants for the three months ended March 31, 2014:

		Amount
Derivative Liability balance, January 1, 2014	$	4,272,031
Issuance of derivative financial instrument in 2014		153,024
Conversion of debt in 2014		(683,576)
Change in FMV of derivative liability		(2,497,072)
Derivative liability balance, March 31, 2014 (Unaudited)	$	1,244,407