Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE NOTES PAYABLE (Tables)

v2.4.0.8
CONVERTIBLE NOTES PAYABLE (Tables)
 3 Months Ended
Mar. 31, 2014
Convertible Notes Payable [Abstract]  
Convertible Debt [Table Text Block]
Convertible notes payable at March 31, 2014 and December 31, 2013 are as follows:
 
 
 
March 31,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
 
 
 
 
6% Convertible notes payable issued in August 2013
 
$
3,000,000
 
$
3,000,000
 
Discounts on above convertible note
 
 
(2,333,333)
 
 
(2,583,333)
 
15% Convertible notes payable issued in March 2014
 
 
500,000
 
 
-
 
Discounts on above convertible note
 
 
(283,258)
 
 
-
 
 
 
 
883,409
 
 
416,667
 
Current portion of convertible notes payable
 
 
(216,742)
 
 
-
 
Convertible notes payable, less current portion
 
$
666,667
 
$
416,667
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
The fair value of the embedded conversion feature and the warrants each was estimated using the Black-Scholes option-pricing model which approximated the Binomial Lattice model. Key assumptions used to apply this pricing model during the three months ended March 31, 2014 were as follows:
 
Risk-free interest rate
 
0.15%-0.79%
 
Expected life
 
1-5 years
 
Expected volatility
 
62%-89%