8. SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

8. SUBSEQUENT EVENTS

Subsequent to June 30, 2013, the holders of the $251,468 Convertible Note Payable elected to convert principal as follows:

Date	Principal Converted		Common stock issued upon conversion
July 8, 2013		73,000		3,650,000
July 12, 2013		36,500		1,825,000
July 22, 2013		36,500		1,825,000
Total	$	146,000		7,300,000

As a result of these conversions, unamortized discount in the total amount of $116,648 was immediately amortized to interest expense. The converted amount of principal and accrued unpaid interest in the total amount of $146,000 was recognized as an increase in stockholders’ equity as a result of these conversions. There was no gain or loss on these conversions, because they were effected in accordance with the terms of the convertible note agreement.