1. INTERIM FINANCIAL STATEMENTS (Tables)

9 Months Ended

Sep. 30, 2013

Interim Financial Statements Tables

Fair value and carrying amount of long-term debt

	September 30, 2013		December 31, 2012
Fair Value	$	670,830	$	3,420,397
Carrying Value		700,000		3,509,000

Stock-Based Compensation

	Shares
Outstanding on December 31, 2012		3,921,493
Granted		25,000
Exercised		--
Forfeited		(533,283	)
Outstanding on September 30, 2013		3,413,210
Weighted average exercise price of outstanding options	$	0.31
Aggregate Intrinsic Value	$	--
Shares available for future grants on September 30, 2013		1,094,090