NOTE 9 - STOCKHOLDER'S EQUITY

6 Months Ended

Jun. 30, 2015

Note 9 - Stockholders Equity

NOTE 9 - STOCKHOLDER'S EQUITY

NOTE 9 – STOCKHOLDER’S EQUITY

Discount related to issuance of debt with warrants and allocated fair value to beneficial conversion feature– During the six months ended June 30, 2015, the Company raised gross proceeds of $319,000 pursuant to the issuance of anUnsecured Redeemable Debenture Series F (the “Series F Debentures”) with detachable stock warrants. The Company allocatedthe value of the Series F Debentures andthe warrants based on their relative fair values, whichresulted in a discount to the carrying value of the Series F Debentures. As a result of the allocation a beneficial conversion features wascreated totaling $274,122, which was recordedas a discount against the Series F Debentures, with anoffsetting entry to additional paid-in-capital. The discounts are being amortized into interest expense over the term of the Series F Debentures.