Annual report pursuant to Section 13 and 15(d)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
Dec. 31, 2014
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 16 – SUBSEQUENT EVENTS On January 4, 2015 the Board of Directors reappointed Philip M. Rice II, the Company’s Chief Financial Officer, as a director for a 1 year term. Mr. Rice received warrants to purchase 50,000 shares of common stock at an exercise price of $.09 per share for a term of three years, vested at 12,500 per quarter. The terms of the appointment also includes a cash payment of $10,000. Stock Issuances Subsequent to December 31, 2014, the Company received proceeds of $48,500 from the issuance of 970,000 shares of common stock. Loan Payable – Related Party During the period January 1, 2015 through April 3, 2015, HEP Investments, LLC, a related party, advanced the Company an additional $387,500. HEP Investments has reached a $5,807,200 balance (including monies advanced since September 2011) and these advances have been converted into convertible debt. The Company recorded a debt discount in the amount of $224,283 for the $387,500 transaction. This represents the future value of the stock to be issued under the terms of the convertible debt. This stock was valued utilizing the Black-Scholes method of valuation using the following assumptions: expected volatilities of 138.27%-139.02%, annual rate of dividends 0% and a risk free interest rates of 0.55% to 0.63%.

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2014

NOTE 16 – SUBSEQUENT EVENTS

On January 4, 2015 the Board of Directors reappointed Philip M. Rice II, the Company’s Chief Financial Officer, as a director for a 1 year term. Mr. Rice received warrants to purchase 50,000 shares of common stock at an exercise price of $.09 per share for a term of three years, vested at 12,500 per quarter. The terms of the appointment also includes a cash payment of $10,000.

Stock Issuances

Subsequent to December 31, 2014, the Company received proceeds of $48,500 from the issuance of 970,000 shares of common stock.

Loan Payable – Related Party

During the period January 1, 2015 through April 3, 2015, HEP Investments, LLC, a related party, advanced the Company an additional $387,500. HEP Investments has reached a $5,807,200 balance (including monies advanced since September 2011) and these advances have been converted into convertible debt. The Company recorded a debt discount in the amount of $224,283 for the $387,500 transaction. This represents the future value of the stock to be issued under the terms of the convertible debt. This stock was valued utilizing the Black-Scholes method of valuation using the following assumptions: expected volatilities of 138.27%-139.02%, annual rate of dividends 0% and a risk free interest rates of 0.55% to 0.63%.