6. NOTES PAYABLE AND CONVERTIBLE NOTES (Tables)

9 Months Ended

Sep. 30, 2015

Notes Payable And Convertible Notes Tables

Long term debt

	September 30, 2015			December 31, 2014
Debt payable to Comerica Bank, senior debt	$	-		$	8,708,333
Debt payable to Praesidian Capital Opportunity Fund III, senior lender		7,815,529			-
Debt payable to Praesidian Capital Opportunity Fund III-A, senior lender		3,029,471			-
Equipment loans		425,149			-
Notes payable to seller of Meridian, subordinated debt		1,475,000			1,475,000
Less: debt discount		(876,707	)		-
Total debt		11,868,442			10,183,333
Less: current portion		(107,050	)		(1,357,143	)
Long term debt less current portion	$	11,761,392		$	8,826,190

Schedule of fund distribution

Payoff of short term bridge financing	$	432,938
Payoff of lines of credit with Commerica Bank		1,745,799
Payoff of senior debt to Comerica Bank		7,953,433
Refinancing fees		712,830
	$	10,845,000

Schedule of Fair value calculation

	September 30, 2015
Current exercise price	$	0.025
Time to expiration	8/6/2016
Risk-free interest rate		0.35	%
Estimated volatility		210	%
Dividend		0
Stock price on September 30, 2015	$	0.72
Expected forfeiture rate		0	%

Schedule of Change in the market value

Fair value of warrants @ August 6, 2015	$	904,427
Unrealized gain on derivative liability		346,963
Fair value of warrants @ September 30, 2015	$	557,464