5. DEBT DISCOUNT

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

5. DEBT DISCOUNT

NOTE 5 DEBT DISCOUNT

The Company recorded the $174,378 debt discount due to beneficial conversion feature of $87,189 for the detachable warrants issued with convertible debt, and $87,189 in derivative liabilities related to the ratchet feature warrants. 

The debt discount was recorded in 2014 and pertains to convertible debt and warrants issued that contain ratchet features that are required to be bifurcated and reported at fair value.

Debt discount is summarized as follows:

	March 31, 2015			December 31, 2014
Deb discount on notes payable		107,016			174,379
Accumulated amortization		(26,146	)		(67,363	)
Debt discount on notes payable, net	$	80,870		$	107,016

Amortization of debt discount on notes payable for the three months ended March 31, 2015 and March 31, 2014 was $26,146 and $1,263, respectively.