10. CONVERTIBLE NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2014

Convertible Notes Payable Tables

Convertible Notes activity

The table below summarizes our Convertible Notes activity during the six months ended June 30, 2014:

	Principal				Debt			Accrued
	Balance				Discount			Interest			Total
Balance at December 31, 2013	$	700,000			$	(84,694	)	$	871		$	616,177
Issued in the period		1,605,000				(1,605,000	)		-			-
Converted into shares of common stock		(255,000	)			-			(3,669	)		(258,669	)
Amortization of debt discount		-				417,881			-			417,881
Payment of loan principal		(3,178	)			-			-			(3,178	)
Interest accrued during period		-				-			49,274			49,274
Interest paid during period		-				-			(44,612	)		(44,612	)
Balance at June 30, 2014		2,046,822				(1,271,813)			-			775,009
Less:  Current portion		(5,927	)	(1)		-			-			(5,927	)
Long-term debt	$	2,040,895			$	(1,271,813)		$	1,864		$	770,946

(1)   The current portion represents the principal balance payable on the 8 ½% convertible note payable in the twelve months following the balance sheet date