Annual report pursuant to Section 13 and 15(d)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
Dec. 31, 2013
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 17 – SUBSEQUENT EVENTS On January 4, 2014 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 $.37 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, 2013, the Company has received $206,250 in aggregate proceeds from shareholders upon the exercises of 1,650,000 common stock warrants. Subsequent to December 31, 2013, the Company has received proceeds of $100,000 from the issuance of 500,000 shares of common stock. Convertible Debt On October 27, 2013, the Company was notified that a significant stockholder and the holder of 1% Convertible Debentures of his intention to convert six (6) notes in the principal amount of $70,000 with various due dates and conversion prices, into 950,000 shares of the Company’s common stock during the first quarter of 2014. On February 11, 2014, the Company was notified that a significant stockholder and the holder of 1% Convertible Debentures of his intention to convert seven (7) notes in the principal amount of $70,600 with various due dates and conversion prices, into 1,088,000 shares of the Company’s common stock during the second quarter of 2014. On February 18, 2014, the Venture Group notified the Company that it would convert the remaining 11% Convertible Debenture of $350,000 into 2,916,667 shares of the Company’s common stock. The interest due to Venture Group of $72,000 is payable in cash. On March 17, 2014, the Company and HEP Investments agreed to a 6 month extension of the $500,000 11% Convertible Debenture due on December 1, 2013. With this extension, the 11% Convertible Debenture becomes due on June 1, 2014. Concurrently, the Company and holder of the 1% Convertible Debentures agreed to a 6 month extension of the remaining Convertible Debentures. The terms of the Convertible Debenture remain substantially the same. The Company determined that the modification of the HEP Investments Loan Agreement was not a substantial modification in accordance with ASC 470-50, “Modifications and Extinguishments

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2013

NOTE 17 – SUBSEQUENT EVENTS

On January 4, 2014 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 $.37 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, 2013, the Company has received $206,250 in aggregate proceeds from shareholders upon the exercises of 1,650,000 common stock warrants.

Subsequent to December 31, 2013, the Company has received proceeds of $100,000 from the issuance of 500,000 shares of common stock.

Convertible Debt

On October 27, 2013, the Company was notified that a significant stockholder and the holder of 1% Convertible Debentures of his intention to convert six (6) notes in the principal amount of $70,000 with various due dates and conversion prices, into 950,000 shares of the Company’s common stock during the first quarter of 2014.

On February 11, 2014, the Company was notified that a significant stockholder and the holder of 1% Convertible Debentures of his intention to convert seven (7) notes in the principal amount of $70,600 with various due dates and conversion prices, into 1,088,000 shares of the Company’s common stock during the second quarter of 2014.

On February 18, 2014, the Venture Group notified the Company that it would convert the remaining 11% Convertible Debenture of $350,000 into 2,916,667 shares of the Company’s common stock. The interest due to Venture Group of $72,000 is payable in cash.

On March 17, 2014, the Company and HEP Investments agreed to a 6 month extension of the $500,000 11% Convertible Debenture due on December 1, 2013. With this extension, the 11% Convertible Debenture becomes due on June 1, 2014. Concurrently, the Company and holder of the 1% Convertible Debentures agreed to a 6 month extension of the remaining Convertible Debentures. The terms of the Convertible Debenture remain substantially the same. The Company determined that the modification of the HEP Investments Loan Agreement was not a substantial modification in accordance with ASC 470-50, “Modifications and Extinguishments