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<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><u>NOTE
1A: RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS</u></b></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">We
have restated our consolidated financial statements as of and for the year ended December 31, 2012 relating to the Company’s
accounting for derivative liabilities and certain other accounts. We had recorded the derivative liabilities without accurately
reflecting the effect of conversion of certain convertible notes and proper classification of some of the liabilities.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The impact
of the restatement on the consolidated financial statements as of and for the year ended December 31, 2012, is shown in the following
table:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="5" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">As reported</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Adjustment</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">As restated</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="13" style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif">Balance sheet data —
December 31, 2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Cash</font></td><td style="width: 5%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,679</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(16,840</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="width: 5%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">33,839</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
Assets</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">104,212</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(16,840</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">87,372</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable
and accrued liabilities</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,058,556</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(116,840</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,941,716</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Derivative liability
– conversion option</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">798,300</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">69,275</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">867,575</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Derivative liability
- warrants</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">677,086</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">300,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">977,086</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible notes
payable</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,376,230</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,476,230</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Due
to related parties</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">366,697</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,649</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">373,346</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
liabilities</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">5,770,809</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">359,084</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"></font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,129,893</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Additional paid-in
capital</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">43,545,947</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(62,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">43,483,947</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Deficit
accumulated during the development stage</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(49,580,159</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(313,924</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(49,894,083</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Stockholders’
deficiency</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(5,666,597</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(375,924</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(6,042,521</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="5" style="text-align: right">As reported</td><td> </td>
<td colspan="3" style="text-align: right">Adjustment</td><td> </td>
<td colspan="3" style="text-align: right">As restated</td></tr>
<tr style="vertical-align: bottom">
<td colspan="13" style="font-size: 12pt; font-weight: bold"><p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Consolidated Statement of Operations data </b></font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>For the year ended December 31, 2012</b></font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Management fees</td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">295,600</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">6,649</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">302,249</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net Loss Before Other Items</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,222,798</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,649</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,229,447</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Changes in fair value of derivative liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">536,527</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(307,375</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">229,252</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">NET LOSS</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(5,857,943</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(313,924</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(6,171,867</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="5" style="text-align: right">As reported</td><td> </td>
<td colspan="3" style="text-align: right">Adjustment</td><td> </td>
<td colspan="3" style="text-align: right">As restated</td></tr>
<tr style="vertical-align: bottom">
<td colspan="13" style="font-size: 12pt; font-weight: bold"><p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Consolidated Statement of Operations data </b></font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>From July 27, 1999 (inception) to December 31, 2012</b></font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Management fees</td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">3,067,654</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">6,649</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">3,074,303</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net Loss Before Other Items</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(41,491,894</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,649</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(41,498,543</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Changes in fair value of derivative liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,611,667</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(307,375</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,304,392</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">NET LOSS</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(49,580,159</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(313,924</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(49,894,083</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="5" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">As reported</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Adjustment</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">As restated</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="13" style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif">Balance sheet data —
December 31, 2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Cash</font></td><td style="width: 5%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,679</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(16,840</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="width: 5%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">33,839</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
Assets</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">104,212</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(16,840</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">87,372</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable
and accrued liabilities</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,058,556</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(116,840</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,941,716</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Derivative liability
– conversion option</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">798,300</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">69,275</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">867,575</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Derivative liability
- warrants</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">677,086</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">300,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">977,086</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Convertible notes
payable</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,376,230</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,476,230</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Due
to related parties</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">366,697</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,649</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">373,346</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Total
liabilities</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">5,770,809</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">359,084</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,129,893</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Additional paid-in
capital</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">43,545,947</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(62,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">43,483,947</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Deficit
accumulated during the development stage</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(49,580,159</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(313,924</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(49,894,083</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Stockholders’
deficiency</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(5,666,597</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(375,924</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(6,042,521</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="5" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">As reported</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Adjustment</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">As restated</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="13" style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif">Consolidated Statement of
Operations data <br />For the year ended December 31, 2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Management
fees</font></td><td style="width: 5%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">295,600</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,649</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">302,249</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Net
Loss Before Other Items</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(6,222,798</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(6,649</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(6,229,447</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Changes
in fair value of derivative liabilities</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">536,527</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(307,375</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">229,252</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">NET
LOSS</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(5,857,943</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(313,924</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(6,171,867</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="5" style="text-align: right">As reported</td><td> </td>
<td colspan="3" style="text-align: right">Adjustment</td><td> </td>
<td colspan="3" style="text-align: right">As restated</td></tr>
<tr style="vertical-align: bottom">
<td colspan="13" style="font-size: 12pt; font-weight: bold"><p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>Consolidated Statement of Operations data </b></font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>From July 27, 1999 (inception) to December 31, 2012</b></font></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Management fees</td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">3,067,654</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">6,649</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">3,074,303</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Net Loss Before Other Items</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(41,491,894</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(6,649</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(41,498,543</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Changes in fair value of derivative liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,611,667</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(307,375</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,304,392</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">NET LOSS</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(49,580,159</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(313,924</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(49,894,083</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="text-transform: uppercase"><u>Note 1:	Nature
of Operations</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">TapImmune Inc. (the “Company”),
a Nevada corporation incorporated in 1992, is a clinical development stage company which was formed for the purpose of building
a biotechnology business specializing in the discovery and development of immunotherapeutics aimed at the treatment of cancer,
and therapies for infectious diseases, autoimmune disorders and transplant tissue rejection.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">Since inception, the Company has been
party to various Collaborative Research Agreements (“CRA”) working with universities to carry out development of the
licensed technology and providing TapImmune the option to acquire the rights to commercialize any additional technologies developed
within the CRA. The lead product candidate, a set of Class II HER2/neu antigens is in Phase I clinical trials in breast cancer
patients at the Mayo Clinic. This product will be combined with a novel Class I HER2/neu antigen in further clinical trials and
with TapImmune’s expression vector technology containing TAP in a “boost” strategy. TapImmune has a license and
an exclusive option to license the HER2/neu antigen technologies from the Mayo Clinic. The TAP technology is now wholly owned and
with no ongoing license or royalty, resulting from these license agreements is an immunotherapy vaccine, on which the Company has
been completing pre-clinical work in anticipation of clinical trials. Specifically, the Company has obtained and expanded on three
U.S. and international patents, tested various viral vectors, licensed a viral vector and is working towards production of a clinical
grade vaccine. The Company plans to continue development of the lead product vaccine through to clinical trials in both oncology
and infectious diseases alone or in partnership with other vaccine developers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="letter-spacing: -0.1pt">These
consolidated financial statements have been prepared on the basis of a going concern which contemplates the realization of assets
and the satisfaction of liabilities in the normal course of business. As at September 30, 2013, the Company had a working capital
deficiency of $5,102,681 and has incurred significant losses since inception. Further losses are anticipated in the development
stage raising substantial doubt as to the Company’s ability to continue as a going concern. The ability of the Company to
continue as a going concern is dependent on raising additional capital to fund ongoing research and development, maintenance and
protection of patents, accommodation from certain debt obligations and ultimately on generating future profitable operations. Planned
expenditures relating to future clinical trials of the Company’s immunotherapy vaccine will require significant additional
funding. The Company is dependent on future financings to fund ongoing research and development as well as working capital requirements.
The Company’s future capital requirements will depend on many factors including the rate and extent of scientific progress
in its research and development programs, the timing, cost and scope involved in clinical trials, obtaining regulatory approvals,
pursuing further patent protections and the timing and costs of commercialization activities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="letter-spacing: -0.1pt">Management
is addressing going concern remediation through seeking new sources of capital, restructuring and retiring debt through conversion
to equity and debt settlement arrangements with creditors, cost reduction programs and seeking possible joint venture participation.
Management’s plans are intended to return the Company to financial stability and improve continuing operations. The Company
is continuing initiatives to raise capital through private placements, related party loans and other institutional sources to meet
immediate working capital requirements.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="letter-spacing: -0.1pt">Additional
funding was raised through equity and debt placements in 2013 and 2012, and management intends to continue restructuring outstanding
debt and equity instruments. Additional capital is required currently to expand programs including pre-clinical work and to establish
future manufacturing contracts necessary for clinical trials for the lead TAP (Transporters of Antigen Processing) vaccine and
infectious disease adjuvant technology. Strategic partnerships will be needed to continue the product development portfolio and
fund development costs. These measures, if successful, may contribute to reduce the risk of going concern uncertainties for the
Company over the next twelve months. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="letter-spacing: -0.1pt">There
is no certainty that the Company will be able to arrange sufficient funding to satisfy current debt obligations or to continue
development of products to marketability.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
2:	UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR AN INTERIM PERIOD</u></font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif">Basis
of Presentation</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
the opinion of management, the accompanying balance sheets and related interim statements of operations and cash flows include
all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting
principles generally accepted in the United States of America (“U.S. GAAP”). Preparing financial statements requires
management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses. Significant
areas requiring management’s estimates and assumptions include deferred taxes and related tax balances and disclosures, determining
the fair value of stock-based compensation and stock based transactions, the fair value of the components of the convertible notes
payable, foreign exchange gains and losses, allocation of costs to research and development and accrued liabilities. Matters impacting
the company’s ability to continue as a going concern and contingencies also involve the use of estimates and assumptions.</font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Interim results are not necessarily indicative of
results for a full year. The information included in this quarterly report on Form 10-Q should be read in conjunction with information
included in the Company’s annual report on Form 10-K filed on May 15, 2013, with the U.S. Securities and Exchange Commission.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
3:	Research Agreements</u></font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Crucell
Holland B.V. (“Crucell”) – Research License and Option Agreement</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Effective
August 7, 2003, Crucell and the Company’s subsidiary GPI entered into a five-year research license and option agreement.
In addition, retroactively effective August 7, 2008, the Company negotiated an amended license agreement for the use of Crucell’s
adenovirus technology. The Company was required to make annual license payments on the anniversary of the effective date
for the three year term equal to €75,000 per annum for three years through December 2011. As at September 30, 2013,
the Company accrued $492,365 (€378,384) under the amended agreement, inclusive of interest on outstanding amounts.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company is currently delinquent on making its annual license payments under the amended license agreement. Crucell has the right
to cancel the agreement; however, to date, the Company has not received any notice terminating the license agreement. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Mayo
Clinic –License Option Agreement</b></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">For details regarding the license option agreement
with Mayo Clinic, please refer to Note 11.</font></p>
<p style="margin: 0pt"></p>
75000
492365
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
4:	DERIVATIVE WARRANT AND CONVERSION OPTION LIABILITY AND FAIR VALUE</u></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has evaluated the application ASC 480-10 <i>Distinguishing liabilities from equity</i>, ASC 815-40 <i>Contracts in an
Entity’s Own Equity</i> and ASC 718-10 <i>Compensation – Stock Compensation</i> to the issued and outstanding warrants
to purchase common stock that were issued with the convertible notes, private placements, consulting agreements, and various debt
settlements during 2009 through 2013. Based on the guidance, management concluded these instruments are required to be accounted
for as derivatives either due to a ratchet down protection feature available on the exercise price (Note 5) or a holder’s
right to put the warrants back to the Company for cash under certain conditions or a conversion option feature with conversion
into variable number of shares. Under ASC 815-40-25, the Company records the fair value of these warrants and conversion options
(derivatives) on its balance sheet, at fair value, with changes in the values reflected in the statements of operations as “Changes
in fair value of derivative liabilities”. The fair value of the share purchase warrants are recorded on the balance sheet
under ‘Derivative liability – warrants’ and the fair value of the conversion options are recorded on the balance
sheet under ‘Derivative liability – conversion option’.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">ASC
820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price)
in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820-10 describes three levels of inputs that
may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2
– Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that
are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;
and Level 3 – Unobservable inputs that are supported by little or no market activity and that are financial instruments whose
values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments
for which the determination of fair value requires significant judgment or estimation. The Company’s Level 3 liabilities
consist of the derivative liabilities associated with the warrants issued with the convertible notes during the year ended December
31, 2011. At December 31, 2012 and September 30, 2013, all of the Company’s derivative liabilities were categorized as Level
3 fair value liabilities. If the inputs used to measure the financial assets and liabilities fall within more than one level described
above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><i> </i></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Level
3 Valuation Techniques</i></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
liabilities are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies
or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial liabilities consist
of the notes and warrants for which there is no current market for these securities such that the determination of fair value
requires significant judgment or estimation.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Determining
fair value of share purchase warrants and conversion options, given the Company’s stage of development and
financial position, is highly subjective and identifying appropriate measurement criteria and models is subject to
uncertainty. There are several generally accepted pricing models for warrants and options and derivative provisions. The
Company has chosen to value the warrants and conversion option on the notes that contain ratchet down provisions using the
Binomial model and Black-Scholes model under the following assumptions:</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Expected Life (Years)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Risk free Rate</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Expected Life (Years)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Risk free Rate</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Share purchase warrants</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 10%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.08 to 3.78</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 10%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.02% to 0.36%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">0.00</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">199</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 9%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">1.10 to 3.03</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 9%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.09% to 0.63%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">0.00</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">199</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Expected Life (Years)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Risk free Rate</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Expected Life (Years)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Risk free Rate</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 10%; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Conversion Option</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 10%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.003 to 0.89</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 10%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.05% to 0.19%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">0.00</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100.88% to 141.21%</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 9%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.14 to 0.78</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 9%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.02% to 0.15%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">0.00</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">108% to 161.97%</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
foregoing assumptions are reviewed quarterly and are subject to change based primarily on management’s assessment of the
probability of the events described occurring. Accordingly, changes to these assessments could materially affect the valuations.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Financial
Assets and Liabilities Measured at Fair Value on a Recurring Basis</i></font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet under
Derivative liability – warrants and Derivative liability – conversion option:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of September 30, 2013</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p></td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Carrying Value</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 3</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left; padding-left: 5.4pt">Derivative liability - warrants</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">89,195</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">89,195</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">89,195</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Derivative liability – conversion option</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">195,300</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">195,300</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">195,300</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Total</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">284,495</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">284,495</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">284,495</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; border-bottom: Black 1pt solid">As of December 31, 2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 12pt; border-bottom: Black 1pt solid"><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements Using</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Carrying Value</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 3</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left; padding-left: 5.4pt">Derivative liability - warrants</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">977,086</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">977,086</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">977,086</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Derivative liability – conversion option</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">867,575</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">867,575</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">867,575</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Total</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,844,661</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,844,661</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,844,661</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The table
below provides a summary of the changes in fair value, including net transfers, in and/or out, of financial assets and liabilities
measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September
30, 2013 and the year ended December 31, 2012:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt; text-align: justify; border-bottom: Black 1pt solid"><p style="font: 4pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 4pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 4pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Fair Value Measurements Using Level 3 Inputs</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 12pt; padding-bottom: 1pt; padding-left: 5.4pt"><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative liability - warrants</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative liability – conversion option</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; padding-left: 5.4pt">Balance,  December 31, 2011</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,317,834</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,317,834</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Additions during the year</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">300,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">737,700</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,037,700</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Total unrealized (gains) or losses included in net loss</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(597,127</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">129,875</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(467,252</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Debt settlement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(43,621</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(43,621</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Transfers in and/or out of Level 3</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Balance,  December 31, 2012</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">977,086</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">867,575</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,844,661</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Additions during the period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">363,300</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">563,300</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Total unrealized (gains) or losses included in net loss</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,087,891</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,035,575</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,123,466</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Transfers in and/or out of Level 3</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Balance, September 30, 2013</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">89,195</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">195,300</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">284,495</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
fair value of the warrants is determined using a Binomial option pricing model. The valuation of warrants is subjective and is
affected by changes in inputs to the valuation model including the price per share of common stock, the historical volatility
of the stock price, risk-free rates based on U.S. Treasury security yields, the expected term of the warrants and dividend yield.
Changes in these assumptions can materially affect the fair value estimate. The Company could ultimately incur amounts to settle
the warrant at a cash settlement value that is significantly different than the carrying value of the liability on the financial
statements. The Company will continue to classify the fair value of the warrants as a liability until the warrants are exercised,
expire, or are amended in a way that would no longer require these warrants to be classified as a liability. Changes in the fair
value of the common stock warrants liability are recognized as a component of other income (expense) in the statement of operations.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
net cash settlement value at the time of any future Fundamental Transaction will depend upon the value of the following inputs
at that time: the consideration value per share of the Company’s common stock, the volatility of the Company’s common
stock, the remaining term of the warrant from announcement date, the risk-free interest rate based on U.S. Treasury security yields,
and the Company’s dividend yield. The warrant requires use of a volatility assumption equal to the greater of 100% and the
100-day volatility function determined as of the trading day immediately following announcement of a Fundamental Transaction.</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Expected Life (Years)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Risk free Rate</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Expected Life (Years)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Risk free Rate</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Share purchase warrants</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 10%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.08 to 3.78</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 10%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.02% to 0.36%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">0.00</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">199</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 9%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">1.10 to 3.03</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 9%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.09% to 0.63%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">0.00</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">199</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Expected Life (Years)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Risk free Rate</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Expected Life (Years)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Risk free Rate</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Dividend yield</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">Volatility</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 10%; text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt">Conversion Option</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 10%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.003 to 0.89</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 10%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.05% to 0.19%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">0.00</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">100.88% to 141.21%</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 9%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.14 to 0.78</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 9%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">0.02% to 0.15%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right">0.00</td><td style="width: 1%; padding-bottom: 1pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 7%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">108% to 161.97%</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of September 30, 2013</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p></td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Carrying Value</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 3</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left; padding-left: 5.4pt">Derivative liability - warrants</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">89,195</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">89,195</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">89,195</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Derivative liability – conversion option</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">195,300</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">195,300</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">195,300</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Total</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">284,495</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">284,495</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">284,495</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">As of December 31, 2012</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-size: 10pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements Using</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> </p></td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Carrying Value</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 1</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 2</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Level 3</td><td style="font-weight: bold"> </td>
<td colspan="3" style="font-weight: bold; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; font-size: 10pt; text-align: left; padding-left: 5.4pt">Derivative liability - warrants</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">977,086</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">977,086</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">977,086</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Derivative liability – conversion option</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">867,575</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">867,575</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">867,575</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-bottom: 1pt; padding-left: 5.4pt">Total</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,844,661</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,844,661</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,844,661</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt; text-align: justify; border-bottom: Black 1pt solid"><p style="font: 4pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 4pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 4pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="11" style="font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Fair Value Measurements Using Level 3 Inputs</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 12pt; padding-bottom: 1pt; padding-left: 5.4pt"><p style="font: 4pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p><p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p></td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative liability - warrants</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative liability – conversion option</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 46%; padding-left: 5.4pt">Balance,  December 31, 2011</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,317,834</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">1,317,834</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Additions during the year</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">300,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">737,700</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,037,700</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Total unrealized (gains) or losses included in net loss</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(597,127</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">129,875</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(467,252</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Debt settlement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(43,621</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(43,621</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Transfers in and/or out of Level 3</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Balance,  December 31, 2012</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">977,086</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">867,575</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,844,661</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Additions during the period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">200,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">363,300</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">563,300</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Total unrealized (gains) or losses included in net loss</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,087,891</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,035,575</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,123,466</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Transfers in and/or out of Level 3</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Balance, September 30, 2013</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">89,195</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">195,300</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">284,495</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
5:	CONVERTIBLE NOTES PAYABLE</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">The
following is a summary of debt instrument transactions that are relevant to the current period:</font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Face Value</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Principal Repayment/ <br />Settlement/Re-issued</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Unamortized <br />Note <br />Discount</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balance at <br />September 30, <br />2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">February 2011 Secured Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-left: 5.4pt">Senior Secured Notes, due February 24, 2014</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,184,694</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">203,836</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">53,676</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">927,182</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">April 2011 Secured Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Senior Secured Notes, due April 4, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">215,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,481</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">197,519</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">June 2011 Secured Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Senior Secured Notes, due June 6, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,885</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,115</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">August 8, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due August 8, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">111,430</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">111,430</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">August 12, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note became due November 12, 2012</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,500</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">August 20, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due August 20, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">September 18, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due October 1, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">82,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">58,750</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,750</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">October 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due October 15, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">340,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,972</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">326,028</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">October 9, 2012 Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due April 30, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">November 1, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due April 30, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,471</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,471</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">November 20, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due November 20, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,710</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">44,962</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,748  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">December 14, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due April 18, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">189,210</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">189,210</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">December 18, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due December 14, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">January 5, 2013 Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">567,729</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">115,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">452,729</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">February 27, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due February 27, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">58,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,808</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">35,692</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">April 2, 2013 Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">80,967</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">80,967</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">April 18, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due December 18, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">60,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,868</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,132</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">May 5, 2013 Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">45,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">45,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">May 14, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due May 14, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">126,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">78,016</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">47,984</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-left: 5.4pt">June 27, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due June 27, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,620</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">26,571</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,049</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">June 19, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due June 19, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">115,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">83,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,325</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,675</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-left: 5.4pt">July 12, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due July 12, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">125,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,200</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">86,114</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,686</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Total</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,653,331</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">965,859</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">338,716</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,348,756</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">The
following is a summary of debt instrument transactions that are relevant to the previous year:</font></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 43%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Face
Value</b></font></p></td>
<td style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Principal
Repayment/</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Settlement</b></font></p></td>
<td style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Unamortized</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Discount</b></font></p></td>
<td style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Balance
at</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
31,</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>2012</b></font></p></td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-top: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">February
2011 Secured Convertible Notes</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Senior
Secured Notes, due February 24, 2014</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$  1,184,694<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">$         203,836  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">$    153,358 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$  827,500<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">April
2011 Secured Convertible Notes</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Senior
Secured Notes, due April 4, 2014</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  215,000<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    43,140 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  171,860<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">June
2011 Secured Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Senior
Secured Notes, due June 6, 2014</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  30,000<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    3,953 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  26,047<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">August
8, 2012 Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Note
due August 8, 2013</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  111,430<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    67,163 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  44,267<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">August
12, 2012 Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Note
became due November 12, 2012</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  27,500<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">- </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">27,500<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">August
20, 2012 Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Note
due August 20, 2013</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  20,000<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    12,712 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  7,288<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">September
18, 2012 Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Note
due October 1, 2013</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  82,500<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    59,741 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  22,759<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">October
2012 Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Note
due October 15, 2013</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  340,000<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    268,275 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  71,725<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">November
1, 2012 Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Note
due April 30, 2013</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  31,471<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    18,200  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  13,271<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">November
20, 2012 Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Note
due November 20, 2013</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  55,710<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    49,605 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  6,105<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">December
14, 2012 Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Note
due April 18, 2013</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  189,210<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    81,302  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  107,908<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">December
18, 2012 Convertible Note</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Note
due December 14, 2013</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  50,000<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">         -  </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">    - </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  50,000<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-top: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$  2,337,515<font style="letter-spacing: -0.1pt"> </font></font></td>
<td style="border-top: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">$         203,836  </font></td>
<td style="border-top: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">$    757,449 </font></td>
<td style="border-top: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">$  1,376,230<font style="letter-spacing: -0.1pt"> </font></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>February
2011 Secured Convertible Notes</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
February 24, 2011, the Company entered into a securities purchase agreement with accredited investors to place Senior Secured
Convertible Notes (the “February 2011 Notes”) with a maturity date of three years after the issuance thereof in the
aggregate principal amount of $1,184,694. In connection with the issuance of the February 2011 Notes, the Company entered into
a 2011 Security Agreement with the note holders securing the February 2011 Notes with all of the Company’s assets. One year
after the issuance of the February 2011 Notes, the note holders have the option to convert a portion or all of the outstanding
balance of the February 2011 Notes including any accrued interest into shares of the Company’s common stock at a conversion
rate of $0.15 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
February 2011 Notes bear interest at the rate of 10% per annum except in case of default, in which case they bear interest at
the rate of 20% per annum. The interest is due on the February 2011 Notes at the end of each three month period, starting three
months from their issuance. One year after the issuance of the February 2011 Notes, the Company may elect to prepay a portion
of the principal. If the Company makes such an election, the holders may elect to receive such prepayment in cash or in shares
of the Company’s common stock, at a conversion rate of $0.15 per share, or in a combination thereof.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company paid a finders’ fee of $41,500. The finder’s fee was accounted for as deferred financing costs, and is being
amortized over the term of the notes. At September 30, 2013, $4,662 of the $25,084 in deferred financing costs relates to the
February 2011 Notes which remains unamortized.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
connection with the issuance of the February 2011 Notes, the Company issued 2,369,388 warrants, exercisable into common stock
at $0.25 with five year terms. The Company may force the exercise of the warrants at any time that the average volume weighted
average price of the Company’s common stock over the prior ten trading days is greater than $0.50, the average daily dollar
volume of the Company’s common stock sold over those ten trading days is greater than $25,000 and there is an effective registration
statement covering the resale of the shares underlying the warrants.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company allocated the net proceeds to the warrants based on the calculated fair value at the date of issuance. The fair value
of the warrants was recorded at $483,355 and recognized as derivative liabilities and the debt was recorded at $701,339. The debt
discount is being accreted over the three year term of the February 2011 Notes using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the year ended December 31, 2012, one of the investors settled the principal amount of $203,836 and accrued interest of $16,419
of the February 2011 Notes in exchange for December 14, 2012 Convertible Note (the “December 14, 2012 Note”).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $99,682 was recorded for the February 2011 Notes.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>April
2011 Secured Convertible Notes</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 4, 2011, the Company entered into a securities purchase agreement with accredited investors to place Senior Secured Convertible
Notes (the “April 2011 Notes”) with a maturity date of three years after the issuance thereof in the aggregate principal
amount of $215,000. In connection with the issuance of the April 2011 Notes, the Company entered into a 2011 Security Agreement
with the note holders securing the April 2011 Notes with a secondary security interest in all of the Company’s assets. One
year after the issuance of the April 2011 Notes, the note holders have the option to convert a portion or all of the outstanding
balance of the April 2011 Notes including any accrued interest into shares of the Company’s common stock at a conversion
rate of $0.15 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
April 2011 Notes bear interest at the rate of 10% per annum except in case of default, in which case they bear interest at the
rate of 20% per annum. The interest is due on the April 2011 Notes at the end of each three month period, starting three months
from their issuance. One year after the issuance of the April 2011 Notes, the Company may elect to prepay a portion of the principal.
If the Company makes such an election, the holders may elect to receive such prepayment in cash or in shares of the Company’s
common stock, at a conversion rate of $0.15 per share, or in a combination thereof.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company paid a finders’ fee of $4,550. The finder’s fee was accounted for as deferred financing costs, and is being
amortized over the term of the notes. At September 30, 2013, $756 of the $25,084 in deferred financing costs relates to the April
2011 Notes.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
connection with the issuance of the April 2011 Notes, the Company issued 430,000 warrants, exercisable into common stock at $0.25
with 2 year terms. The Company may force the exercise of the warrants at any time that the average volume weighted average price
of the Company’s common stock over the prior ten trading days is greater than $0.50, the average daily dollar volume of the
Company’s common stock sold over those ten trading days is greater than $25,000 and there is an effective registration statement
covering the resale of the shares underlying the warrants.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company allocated the net proceeds to the warrants based on the calculated fair value. The fair value of the warrants was recorded
at $130,720 and recognized as derivative liabilities and the debt was recorded at $84,280. The debt discount is being accreted
over the three year term of the April 2011 Notes using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $25,658 was recorded for the April 2011 Notes.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>June
2011 Secured Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
June 6, 2011, the Company entered into a securities purchase agreement with accredited investors to place Senior Secured Convertible
Note (the “June 2011 Note”) with a maturity date of three years after the issuance thereof in the aggregate principal
amount of $30,000. In connection with the issuance of the June 2011 Note, the Company entered into a 2011 Security Agreement with
the note holder securing the June 2011 Note with a secondary security interest in all of the Company’s assets. One year after
the issuance of the June 2011 Note, the note holder has the option to convert a portion or all of the outstanding balance of the
June 2011 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.15 per
share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
June 2011 Note bears interest at the rate of 10% per annum except in case of default, in which case it bears interest at the rate
of 20% per annum. The interest is due on the June 2011 Note at the end of each three month period, starting three months from
its issuance. One year after the issuance of the June 2011 Note, the Company may elect to prepay a portion of the principal. If
the Company makes such an election, the holders may elect to receive such prepayment in cash or in shares of the Company’s
common stock, at a conversion rate of $0.15 per share, or in a combination thereof.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
connection with the issuance of the June 2011 Note, the Company issued 60,000 warrants, exercisable into common stock at $0.25
with two year terms. The Company may force the exercise of the warrants at any time that the average volume weighted average price
of the Company’s common stock over the prior ten trading days is greater than $0.50, the average daily dollar volume of the
Company’s common stock sold over those ten trading days is greater than $25,000 and there is an effective registration statement
covering the resale of the shares underlying the warrants.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company allocated the net proceeds to the warrants based on the calculated fair value. The fair value of the warrants was recorded
at $8,280 and recognized as derivative liabilities and the debt was recorded at $21,720. The debt discount is being accreted over
the three year term of the June 2011 Note using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $2,067 was recorded for the June 2011 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>August
8, 2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
August 8, 2012, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note
(the “August 8, 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount
of $111,430. Consideration under the notes consisted of $92,000 in cash proceeds after $8,000 payment of finders’ fee and
an original issue discount of $11,430. The note holder has the option to convert a portion or all of the outstanding balance of
the August 8, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of
$0.09 per share or 70% of the lowest traded price in the 25 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
August 8, 2012 Note carried no interest if the Company repaid the note within 90 days from issuance. If the Company does not repay
the note within 90 days, a one-time interest of 5% shall apply to the principal sum. The company did not repay the note within
90 days of issuance and a one-time interest of 5% was accrued in the year ended December 31, 2012.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the nine months ended September 30, 2013, the investor converted the principal amount of $111,430 and accrued interest of the
August 8, 2012 Note into common shares (Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
finder’s fee of $8,000 was accounted for as deferred financing costs, and was amortized over the term of the note and has
been fully expensed during the current period on the conversion of the debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion
option was recorded at $155,700 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted
in an accounting loss on debt financing of $55,700. The fair value of the conversion option was calculated using the Binomial
option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.19%, dividend yield of 0%
and volatility of 139.77%. The debt discount has been accreted up to the dates of conversion using the effective interest rate
method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $67,163 was recorded for the August 8, 2012 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>August
12, 2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
August 12, 2012, the Company entered into a securities purchase agreement with accredited investors to place a Convertible Note
(the “August 12, 2012 Note”) with a maturity date of three months after the issuance thereof in the aggregate principal
amount of $27,500. Consideration under the notes consisted of $25,000 in cash proceeds after an original issue discount of $2,500.
The note holder has the option to convert a portion or all of the outstanding balance of the August 8, 2012 Note including any
accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or on similar terms as
of any future financings with more favorable terms. The agreement provides for the Company to issue 50,000 shares to the note
holder as risk premium. The 50,000 shares were valued at $6,250 and recorded as loss on debt financing and obligation to issue
shares.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
August 12, 2012 Note bears interest at the rate of 10% per annum.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion
option was recorded at $31,100 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted
in an accounting loss on debt financing of $6,100. The fair value of the conversion option was calculated using the Binomial option
pricing model under the following assumptions: estimated life of three months, risk free rate of 0.11%, dividend yield of 0% and
volatility of 138.31%. The debt discount was accreted over the three month term of the August 12, 2012 Note using the effective
interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has not repaid the August 12, 2012 Note as of September 30, 2013, which is in default. The note is accruing interest rate
of 10% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>August
20, 2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
August 20, 2012, the Company entered into a securities purchase agreement with accredited investors to place a Convertible Note
(the “August 20, 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal
amount of $20,000. The note holder has the option to convert a portion or all of the outstanding balance of the August 20, 2012
Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or
70% of the lowest traded price in the 25 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
August 20, 2012 Note bears interest at the rate of 8% per annum.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion
option was recorded at $36,100 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted
in an accounting loss on debt financing of $16,100. The fair value of the conversion option was calculated using the Binomial
option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.19%, dividend yield of 0%
and volatility of 140.11%. The debt discount was accreted over the one year term of the August 20, 2012 Note using the effective
interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $12,712 was recorded for the August 20, 2012 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has not repaid the August 20, 2012 Note as of September 30, 2013, which is in default. The note is accruing interest rate
of 8% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>September
18, 2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
September 18, 2012, the Company entered into a securities purchase agreement with accredited investors to place a Convertible
Note (the “September 18, 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal
amount of $82,500. Consideration under the notes consisted of $69,000 in cash proceeds after $6,000 payment of finders’ fee
and an original issue discount of $7,500. The note holder has the option to convert a portion or all of the outstanding balance
of the September 18, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate
of $0.09 per share or 70% of the lowest traded price in the 20 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
September 18, 2012 Note carries no interest other than the amortization of the original issue discount.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
finder’s fee of $6,000 was accounted for as deferred financing costs, and was amortized over the term of the note which has
been fully amortized.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the nine months ended September 30, 2013, the investor converted the principal amount and accrued interest of $75,000 and accrued
interest into common shares (Note 9). The balance remaining on the September 18, 2012 Note as on September 30, 2013 was $23,750.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion
option was recorded at $76,400 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted
in an accounting loss on debt financing of $1,400. The fair value of the conversion option was calculated using the Binomial option
pricing model under the following assumptions: estimated life of one year, risk free rate of 0.20%, dividend yield of 0% and volatility
of 141.43%. The debt discount is being accreted over the one year term using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $20,060 was recorded for the September, 2012 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>October
2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
October 15, 2012, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible
Note (the “October 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal
amount of $340,000. Consideration under the notes consisted of $310,000 in cash proceeds after $10,000 payment of legal fee and
an original issue discount of $30,000. The note holder has the option to convert a portion or all of the outstanding balance of
the October 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.12
per share or to a new lower issuance price if the Company issues shares (or reduces the conversion or exercise price for outstanding
debt or warrants) for less than $0.12.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
October 2012 Note carries an interest rate of 8% per year. There are seven installment payments due on the note beginning on the
seventh month after its issuance and each month thereafter until maturity.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
legal fee of $10,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At September
30, 2013, $411 of the $25,084 in deferred financing costs relates to the October 2012 Note which remains unamortized, and is presented
in current assets on the Company’s Balance Sheet.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Provided
that there is sufficient volume in the trading of the Company’s common stock and other criteria are met, the Company may
elect to make any payment due on an installment date in shares of common stock. If the Company elects to make a payment in shares
of common stock, the number of shares that the Company issues will be equal to the amount to be converted divided by the lesser
of the conversion price or 70% of the average of the three lowest closing bid prices of the shares of common stock during the
prior twenty consecutive trading days. Unless otherwise agreed in writing by both parties, at no time will the holder convert
any amount of the debenture into common stock that would result in the holder owning more than 4.99% of the common stock outstanding.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
part of the agreement, the Company also issued 3,000,000 warrants to the note holder exercisable at $0.25/share expiring on October
31, 2016.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
warrants include price adjustment provisions whereby the exercise price will be adjusted downwards based on future grants, which
results in a share issuance at a per share amount less than $0.25 per share, or repricing of any existing warrants to a lower
price. During the nine months ended September 30, 2013, the investor converted the 3,000,000 warrants under a cashless exercise
provision for 1,898,588 shares of common stock (Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option and equity based on the calculated fair value. The fair value
of the conversion option was recorded at $248,000 and recognized as a derivative liability and the equity was recorded at $62,000.
The fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions:
estimated life of one year, risk free rate of 0.19%, dividend yield of 0% and volatility of 139.16%. The debt discount is being
accreted over the one year term of the October 2012 Note using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $254,301 was recorded for the October 2012 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>October
9, 2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
October 9, 2012, the Company converted accounts payable of $100,000 into convertible notes (the “October 9, 2012 Note”).
The note holder has the option to convert a portion or all of the outstanding balance of the October 9, 2012 Note into shares
of the Company’s common stock at a conversion rate of $0.11 per share. The note has no terms of repayment and no interest
charges. Only under certain events of default the note will incur an interest rate of 20% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the nine months ended September 30, 2013, the note was amended and assigned to a third party with price adjustment features ratified
by the Company and converted into 5,368,956 shares of the Company. The Company recorded $135,527 as loss on settlement of debt
(Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>November
1, 2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the year ended December 31, 2012, the Company converted a promissory note of $100,000 (Note 7) with an accredited investor into
three convertible notes totaling $105,000. The three convertible notes were assigned to a third party. In November and December
2012, the holder converted $73,737 of principal and interest into 1,262,727 shares. The Company recorded $66,801 as loss on settlement
of debt (Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
third Convertible Note (the “November 1, 2012 Note”) was issued with a maturity date of six months in the aggregate
principal amount of $31,471. The note holder has the option to convert a portion or all of the outstanding balance of the November
1, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share
or 65% of the lowest bid price in the 20 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
November 1, 2012 Note bears interest at the rate of 10% per annum starting on November 15, 2012. If the Company is in default
under certain events, the November 1, 2012 Note shall incur interest at the rate of 20% per annum retroactively.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company had allocated the balance of the November 1, 2012 Note to the conversion option and debt based on the calculated fair
value. The fair value of the conversion option was recorded at $27,300 and recognized as a derivative liability and the debt was
recorded at $4,171. The fair value of the conversion option was calculated using the Binomial option pricing model under the following
assumptions: estimated life of 0.49 year, risk free rate of 0.09%, dividend yield of 0% and volatility of 127.26%. The debt discount
was accreted over the 0.49 year term of the November 1, 2012 Note using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the nine months ended September 30, 2013, the investor converted the November 1, 2012 Note and accrued interest into 512,822 common
shares (Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $7,921 was recorded for the November 1, 2012 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>November
20, 2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
November 20, 2012, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible
Note (the “November 20, 2012 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal
amount of $55,710. Consideration under the notes consisted of $50,000 in cash proceeds after $4,000 payment of finder’s fee
and an original issue discount of $5,710. The note holder has the option to convert a portion or all of the outstanding balance
of the November 20, 2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate
of $0.09 per share or 70% of the lowest traded price in the 25 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
November 20, 2012 Note carried no interest if the Company repaid the note within 90 days from issuance. If the Company does not
repay the note within 90 days, a one-time interest of 5% shall apply to the principal sum. The company did not repay the note
within 90 days of issuance and a one-time interest of 5% in the current period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
finder’s fee of $4,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At
September 30, 2013, $559 of the $25,084 in deferred financing costs relates to the November 20, 2012 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion
option was recorded at $69,000 and recognized as a derivative liability and the debt was recorded at $nil. The transaction resulted
in an accounting loss on debt financing of $19,000. The fair value of the conversion option was calculated using the Binomial
option pricing model under the following assumptions: estimated life of one year, risk free rate of 0.16%, dividend yield of 0%
and volatility of 134.71%. The debt discount is being accreted over the one year term of the November 20, 2012 Note using the
effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the nine months ended September 30, 2013, the investor converted the principal amount of $44,962 and accrued interest of the November
20, 2012 Note into 5,600,000 common shares (Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $39,513 was recorded for the November 20, 2012 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
14, 2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 14, 2012, the Company converted part of the February 2011 Notes in the amount of $220,255 into a convertible note (the
“December 14, 2012 Note”) with a maturity date of four months after the issuance thereof in the aggregate principal
amount of $252,280. Consideration under the notes consisted of $220,255 from February 2011 Notes, $10,000 payment of legal fee
and an original issue discount of $22,025. The December 14, 2012 Note is repayable in four equal installments with accrued interest,
starting on January 18, 2013 and subsequently, the same day on each of the following calendar months. The Company can elect to
pay the installments in cash or shares of Company’s common stock.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
December 14, 2012 Note bears interest at the rate of 8% per annum. In the event of default under certain conditions, the interest
will accrue at the rate of 18% per annum.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
note holder has the option to convert a portion or all of the outstanding balance of the December 14, 2012 Note including any
accrued interest into shares of the Company’s common stock at a conversion rate of 70% of the three lowest closing bid prices
in the 20 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
December 2012, the December 14, 2012 Note was assigned to a third party and the Company paid the first installment of $65,032
consisting of principal and interest in 1,078,477 shares. The fair value of the shares was determined to be $96,523 based on the
quoted market price of $0.09 per share. The Company recorded $31,491 as loss on settlement of debt (Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the balance of $189,210 of the December 14, 2012 Note to the conversion option and debt based on the calculated
fair value. The fair value of the conversion option was recorded at $94,100 and recognized as a derivative liability and the debt
was recorded at $95,110. The fair value of the conversion option was calculated using the Binomial option pricing model under
the following assumptions: estimated life of 0.35 year, risk free rate of 0.06%, dividend yield of 0% and volatility of 100.88%.
The debt discount was being accreted over the 0.45 year term of the December 14, 2012 Note using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the nine months ended September 30, 2013, the investor converted the remaining balance of the note of $189,210 and accrued interest
on the December 14, 2012 Note into common shares (Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>December
18, 2012 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 18, 2012, the Company entered into a securities purchase agreement with accredited investors to place convertible notes
(the “December 18, 2012 Notes”) with a maturity date of one year after the issuance thereof in the aggregate principal
amount of $50,000. The note holders have the option to convert a portion or all of the outstanding balance of the December 18,
2012 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.10 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
December 18, 2012 Notes carry an interest rate of 9%, due and payable on the maturity date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>January
5, 2013 Convertible Notes</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
January 5, 2013, the Company exchanged amounts due to related parties into convertible notes (the “January 5, 2013 Notes”)
with no terms of repayment and no interest charges in the aggregate principal amount of $567,729. The related parties have the
option to convert a portion or all of the outstanding balance of the January 5, 2013 Notes into shares of the Company’s common
stock at a conversion rate of $0.12 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
July, 2013, one of the related parties assigned $115,000 of the convertible note to a third party with amendments to adjustment
of conversion price ratified by the Company. As of September 30, 2013, $452,729 of the January 5, 2013 Notes is outstanding.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>February
27, 2013 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
February 27, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible
Note (the “February 27, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal
amount of $58,500. Consideration under the notes consisted of $46,000 in cash proceeds after $4,000 payment of finders’ fee
and an original issue discount of $8,500. The note holder has the option to convert a portion or all of the outstanding balance
including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09 per share or 70% of
the lowest traded price in the 25 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
February 27, 2013 Note carries no interest if the Company repays the note within 90 days from issuance. If the Company does not
repay the note within 90 days, a one-time interest of 5% shall apply to the principal sum. The company did not repay the note
within 90 days of issuance and a one-time interest of 5% was accrued in the current period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
finder’s fee of $4,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At
September 30, 2013, $1,644 of the $25,084 in deferred financing costs relates to the February 27, 2013 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion
option was recorded at $44,700 and recognized as a derivative liability and the debt was recorded at $5,300. The fair value of
the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of
one year, risk free rate of 0.17%, dividend yield of 0% and volatility of 123.76%. The debt discount is being accreted over the
one year term of the February 27, 2013 Note using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $32,692 was recorded for the February 27, 2013 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>April
2, 2013 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 2, 2013, the Company exchanged accounts payable into convertible notes (the “April 2, 2013 Note”) in the aggregate
principal amount of $80,967. The note holder has the option to convert a portion or all of the outstanding balance of the April
2, 2013 Note into shares of the Company’s common stock at a conversion rate of $0.07 per share. The note will incur an interest
rate of 8% per year unless the Company defaults under certain conditions, in which case, the note will incur an interest rate
of 20% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>April
18, 2013 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On April
18, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the
“April 18, 2013 Note”) with a maturity date of eight months after the issuance thereof in the aggregate principal amount
of $60,000. Consideration under the notes consisted of $50,000 in cash proceeds after $5,000 payment of transaction costs and
an original issue discount of $5,000. The note holder has the option to convert a portion or all of the outstanding balance of
the April 18, 2013 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of
$0.12 per share or 70% of the average of the lowest closing bidding price in the 20 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
April 18, 2013 Note carries an interest rate of 8% per year unless the note is in default under certain conditions, in which case,
the interest rate would be 18% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the
conversion option was recorded at $27,800 and recognized as a derivative liability and the debt was recorded at $27,200. The
fair value of the conversion option was calculated using the Black Scholes option pricing model under the following
assumptions: estimated life of eight months, risk free rate of 0.10%, dividend yield of 0% and volatility of 115.82%. The
debt discount is being accreted over the eight month term of the April 18, 2013 Note using the effective interest rate
method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $22,932 was recorded for the April 18, 2013 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>May
5, 2013 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
May 5, 2013, the Company exchanged accounts payable into convertible notes (the “May 5, 2013 Note”) in the aggregate
principal amount of $45,000. The note holder has the option to convert a portion or all of the outstanding balance of the May
5, 2013 Note into shares of the Company’s common stock at a conversion rate of $0.07 per share. The note will incur an interest
rate of 8% per year unless the Company defaults under certain conditions, in which case, the note will incur an interest rate
of 20% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>May
14, 2013 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
May 14, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note
(the “May 14, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount
of $126,000. The Company also issued 2,000,000 warrants to the note holder, exercisable at $0.06 per share with a four year term.
Consideration under the notes consisted of $110,000 in cash proceeds after $5,000 payment of finders’ fee and an original
issue discount of $11,000. The note holder has the option to convert a portion or all of the outstanding balance including any
accrued interest into shares of the Company’s common stock at a conversion rate of $0.072 per share or 70% of the average
of the lowest closing bid prices in the 20 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
May 14, 2013 Note carries an interest rate of 8% per year unless the note is in default, in which case, the note will incur an
interest rate of 18% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
finder’s fee of $5,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At
September 30, 2013 , $3,096 of the $25,084 in deferred financing costs relates to the May 14, 2013 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option and warrants based on the calculated fair values. The fair value
of the conversion option was recorded at $115,000 and fair value of the warrants was recorded as $96,000 recognized as a derivative
liabilities and the debt was recorded at $nil. The transaction resulted in an accounting loss on debt financing of $96,000. The
fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated
life of one year, risk free rate of 0.15%, dividend yield of 0% and volatility of 149.87%. The debt discount is being accreted
over the one year term of the May 14, 2013 Note using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $47,984 was recorded for the May 14, 2013 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>June
27, 2013 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
June 27, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note
(the “June 27, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount
of $37,620. Consideration under the notes consisted of $30,000 in cash proceeds after $3,000 payment of finder’s fee and
an original issue discount of $4,620. The note holder has the option to convert a portion or all of the outstanding balance of
the June 27, 2013 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.09
per share or 70% of the lowest traded price in the 25 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
June 27, 2013 Note carries no interest if the Company repays the note within 90 days from issuance. If the Company does not repay
the note within 90 days, a one-time interest of 5% shall apply to the principal sum. The company did not repay the note within
90 days of issuance and a one-time interest of 5% was accrued in the current period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
finder’s fee of $3,000 was accounted for as deferred financing costs, and is being amortized over the term of the note. At
September 30, 2013, $2,244 of the $25,084 in deferred financing costs relates to the June 27, 2013 Note which remains unamortized.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion
option was recorded at $30,200 and recognized as a derivative liability and the debt was recorded at $2,800. The fair value of
the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of
one year, risk free rate of 0.15%, dividend yield of 0% and volatility of 156.41%. The debt discount is being accreted over the
one year term of the June 27, 2013 Note using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $9,349 was recorded for the June 27, 2013 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>June
19, 2013 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
June, 2013, one of the related parties assigned $115,000 of its convertible note to a third party with amendments ratified by
the Company (the “June 19, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate
principal amount of $115,000. The note holder has the option to convert a portion or all of the outstanding balance of the June
19, 2013 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.04 per
share or 60% of the lowest traded price in the 20 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
June 19, 2013 Note carries an interest rate of 10% per year unless the note is in default under certain conditions, in which case,
the interest rate would be 20% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option based on the calculated fair value. The fair value of the conversion
option was recorded at $31,600 and recognized as a derivative liability and the debt was recorded at $83,400. The fair value of
the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated life of
one year, risk free rate of 0.15%, dividend yield of 0% and volatility of 156.46%. The debt discount is being accreted over the
one year term of the June 19, 2013 Note using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the nine months ended September 30, 2013, the third party converted the principal amount of $83,000 and accrued interest of the
June 19, 2013 Note into 10,818,783 common shares (Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $8,778 was recorded for the June 19, 2013 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>July
12, 2013 Convertible Note</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
July, 2013, the Company entered into a securities purchase agreement with an accredited investor to place a Convertible Note (the
“July 12, 2013 Note”) with a maturity date of one year after the issuance thereof in the aggregate principal amount
of $125,000. The Company also issued 4,166,667 warrants to the note holder, exercisable at $0.03 per share with a five year term.
Consideration under the notes consisted of $110,000 in cash proceeds after $15,000 payment of finders’ fee and an original
issue discount of $11,000. The note holder has the option to convert a portion or all of the outstanding balance of the July 12,
2013 Note including any accrued interest into shares of the Company’s common stock at a conversion rate of $0.03 per share
or 70% of the average of the lowest closing bid prices in the 20 trading days prior to conversion.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
July 12, 2013 Note carries an interest rate of 8% per year unless the note is in default, in which case, the note will incur an
interest rate of 18% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
finder’s fee of $15,000 was accounted for as deferred financing costs, and is being amortized over the term of the note.
At September 30, 2013 , $11,712 of the $25,084 in deferred financing costs relates to the July 12, 2013 Note which remains unamortized,
and is presented in current assets on the Company’s Balance Sheet.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has allocated the net proceeds to the conversion option and warrants based on the calculated fair values. The fair value
of the conversion option was recorded at $114,000 and fair value of the warrants was recorded as $104,000 recognized as a derivative
liabilities and the debt was recorded at $nil. The transaction resulted in an accounting loss on debt financing of $104,000. The
fair value of the conversion option was calculated using the Binomial option pricing model under the following assumptions: estimated
life of one year, risk free rate of 0.15%, dividend yield of 0% and volatility of 161.97%. The debt discount is being accreted
over the one year term of the July 12, 2013 Note using the effective interest rate method.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During
the nine months ended September 30, 2013, the investor converted the principal amount and accrued interest of $28,200 of the July
12, 2013 Note into 5,000,000 common shares (Note 9).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">For
the nine months ended September 30, 2013, accretion of the debt discount of $26,929 was recorded for the July 12, 2013 Note.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Face Value</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Principal Repayment/ <br />Settlement/Re-issued</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Unamortized <br />Note <br />Discount</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balance at <br />September 30, <br />2013</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">February 2011 Secured Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-left: 5.4pt">Senior Secured Notes, due February 24, 2014</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,184,694</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">203,836</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">53,676</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">927,182</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">April 2011 Secured Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Senior Secured Notes, due April 4, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">215,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,481</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">197,519</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">June 2011 Secured Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Senior Secured Notes, due June 6, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,885</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,115</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">August 8, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due August 8, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">111,430</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">111,430</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">August 12, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note became due November 12, 2012</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,500</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">August 20, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due August 20, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">September 18, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due October 1, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">82,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">58,750</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,750</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">October 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due October 15, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">340,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,972</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">326,028</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">October 9, 2012 Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due April 30, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">November 1, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due April 30, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,471</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,471</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">November 20, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due November 20, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">55,710</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">44,962</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,748  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">December 14, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due April 18, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">189,210</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">189,210</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">December 18, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due December 14, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">January 5, 2013 Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">567,729</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">115,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">452,729</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">February 27, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due February 27, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">58,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">22,808</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">35,692</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">April 2, 2013 Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">80,967</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">80,967</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">April 18, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due December 18, 2013</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">60,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,868</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,132</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">May 5, 2013 Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">45,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">45,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">May 14, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due May 14, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">126,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">78,016</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">47,984</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-left: 5.4pt">June 27, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due June 27, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,620</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">26,571</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,049</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">June 19, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Note due June 19, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">115,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">83,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,325</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,675</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-left: 5.4pt">July 12, 2013 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">Note due July 12, 2014</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">125,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,200</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">86,114</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,686</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Total</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,653,331</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">965,859</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">338,716</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,348,756</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Face Value</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Principal Repayment/ <br />Settlement</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Unamortized <br />Note <br />Discount</td><td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Balance at <br />December 31, <br />2012</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.4pt">February 2011 Secured Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; font-size: 10pt; text-align: left; padding-left: 5.4pt">Senior Secured Notes, due February 24, 2014</td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">1,184,694</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">203,836</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">153,358</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td><td style="width: 3%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 10%; font-size: 10pt; text-align: right">827,500</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.4pt">April 2011 Secured Convertible Notes</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.4pt">Senior Secured Notes, due April 4, 2014</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">215,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">43,140</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">171,860</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: left; padding-left: 5.4pt">June 2011 Secured Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: left; padding-left: 5.4pt">Senior Secured Notes, due June 6, 2014</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">30,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">3,953</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">26,047</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt">August 8, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt">Note due August 8, 2013</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">111,430</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">67,163</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">44,267</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt">August 12, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt">Note became due November 12, 2012</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">27,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">27,500</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt">August 20, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt">Note due August 20, 2013</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">20,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">12,712</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">7,288</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt">September 18, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt">Note due October 1, 2013</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">82,500</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">59,741</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">22,759</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt">October 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt">Note due October 15, 2013</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">340,000</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">268,275</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">71,725</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt">November 1, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt">Note due April 30, 2013</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">31,471</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">18,200</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">13,271</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt">November 20, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt">Note due November 20, 2013</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">55,710</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">49,605</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">6,105</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt">December 14, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt">Note due April 18, 2013</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">189,210</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">—  </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">81,302</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">107,908</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-left: 5.4pt">December 18, 2012 Convertible Note</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; padding-bottom: 1pt; padding-left: 5.4pt">Note due December 14, 2013</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">50,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">—  </td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">50,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; padding-bottom: 1pt; padding-left: 5.4pt">Total</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,337,515</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">203,836</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">757,449</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,376,230</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
1184694
0.15
41500
4662
25084
2369388
2000000
0.25
25000
483355
701339
203836
16419
99682
215000
0.15
4550
756
25084
430000
0.25
25000
130720
84280
25658
30000
0.15
60000
0.25
25000
8280
21720
2067
111430
92000
8000
11430
22025
0.09
70%
5%
8000
155700
55700
67163
27500
25000
2500
0.09
50000
6250
10%
31100
6100
20000
0.09
70%
8%
36100
16100
12712
8%
82500
69000
6000
7500
0.09
70%
75000
23750
76400
1400
20060
340000
310000
10000
30000
0.12
8%
25084
3000000
248000
62000
254301
100000
5368956
135527
66801
31471
0.09
65%
27300
4171
512822
7921
55710
50000
4000
4000
559
25084
44962
5600000
220255
252280
10000
65032
1078477
0.09
31491
189210
94100
50000
0.10
9%,
567729
0.12
58500
46000
4000
8500
0.09
1644
25084
32692
37620
80967
0.07
60000
50000
5000
5000
22932
115000
45000
0.07
126000
0.06
5000
11000
3096
25084
47984
2244
25084
83000
10818783
8778
25084
26929
3000000
1898588
111430
39513
189210
28200
5%
125000
4166667
110000
15000
5000000
100000
105000
73737
1262727
30000
3000
4620
115000
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
6:	Loans payable</u></font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">As at September 30, 2013, there were unsecured loan
advances from third parties in the amount of $10,000 (December 31, 2012 - $10,000), which is due on demand. The loan is accruing
interest of 10% per annum.</font></p>
<p style="margin: 0pt"></p>
10000
10000
10
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="text-transform: uppercase"><u>Note 7:	Promissory
noteS</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">During the year ended December 31, 2011,
the Company issued a note in the amount of $100,000 towards future legal services, which matured July 24, 2011. As of December
31, 2012, the Company had received legal services in the amount of $100,000 against the note. The note bears interest at 10% per
annum and may be converted into shares at equal to lower of $0.09 or 65% of the arithmetic average of the lowest closing bid prices
of the Company’s shares during the consecutive twenty day trading period prior to notice of conversion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">During the year ended December 31, 2012,
the Company issued 500,000 shares to the holder of the note in exchange for the note holder’s agreement to forbear from pursuing
collections actions on the outstanding note (Note 9) and converted the promissory note into three convertible notes (Note 5).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">During the year ended December 31, 2012,
the Company issued additional promissory notes in the amount of $67,942, of which $38,000 of promissory notes were issued to an
officer and a director of the Company (Note 8). The promissory notes had no interest charges and no fixed repayment terms.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">During the nine months ended September
30, 2013, the Company converted $210,000 of accounts payable into a promissory note, payable on a preset schedule of payments starting
in April 2013. Any of the late payments will incur interest at the rate of 9% per year. The Company had not made any payments and
was in default of the payment schedule. The payments in default are accruing interest of 9% per year.</p>
<p style="margin: 0pt"></p>
100000
100000
500000
67942
38000
210000
9%
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="text-transform: uppercase"><u>Note 8:	Related
Party Transactions</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="letter-spacing: -0.1pt">During
the n</font>ine months ended September 30, 2013,<font style="letter-spacing: -0.1pt"> the Company entered into transactions with
certain officers and directors of the Company as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.75in; text-align: justify; text-indent: -0.5in"><font style="letter-spacing: -0.1pt">(a)<font style="font: 7pt Times New Roman, Times, Serif">                
</font>incurred $288,000 (September 30, 2012 - $173,500) in management fees and $99,000 (September 30, 2012 - $67,500) in research
and development services paid to officers and directors during the period;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 0.5in"><font style="letter-spacing: -0.1pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.5in"><font style="letter-spacing: -0.1pt">(b)<font style="font: 7pt Times New Roman, Times, Serif">                
</font>recorded $40,238 (September 30, 2012 - $31,333) in stock based compensation for the fair value of options granted to management
that were granted and or vested during the period;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="letter-spacing: -0.1pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.5in"><font style="letter-spacing: -0.1pt">(c)<font style="font: 7pt Times New Roman, Times, Serif">                
</font>converted $83,000 (September 30, 2012 - $50,000) of debt due to related parties during the period, which were settled with
shares; </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="letter-spacing: -0.1pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.5in"><font style="letter-spacing: -0.1pt">(d)<font style="font: 7pt Times New Roman, Times, Serif">                
</font>issued $nil (September 30, 2012 - $38,000) in promissory notes to an officer and director of the Company (Note 5).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"><font style="letter-spacing: -0.1pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.5in"><font style="letter-spacing: -0.1pt">(e)<font style="font: 7pt Times New Roman, Times, Serif">                
</font>converted $567,729 (September 30, 2012 - $nil) of payable into convertible notes to officers, consultant and a director
of the Company (Note 5).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: 0.5in"><font style="letter-spacing: -0.1pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt">All related
party transactions (other than stock based consideration) involving provision of services were recorded at the exchange amount,
which is the amount established and agreed to by the related parties as representing fair value. The Company accounted for the
debt settlement transactions with related parties at management’s estimate of fair value, using amounts similar to arm’s
length settlements for debt settled.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="letter-spacing: -0.1pt">At
September 30, 2013, the Company had amounts owing to directors, consultants and officers of $381,846 (December 31, 2012 - $293,805).
Amounts due to related parties are unsecured, non-interest bearing and have no specific terms of repayment.</font></p>
<p style="margin: 0pt"></p>
288000
173500
99000
67500
40238
31333
83000
50000
38000
567729
381846
293805
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
9:	Capital Stock</u></font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Share
Capital</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">Prior
to March 27, 2007, the authorized capital of the Company consisted of 50,000,000 common shares with $0.001 par value and 5,000,000
non-voting preferred shares with $0.001 par value. On March 27, 2007, the Company’s Articles of Incorporation were amended
to increase the authorized shares of common stock from 50,000,000 shares of common stock to 200,000,000 shares. On June 28, 2007,
the Company completed a reverse stock split thereby issuing 1 new share for each 2.5 outstanding shares of the Company’s
common stock. Accordingly, the Company’s authorized share capital was decreased from 200,000,000 common shares to 80,000,000
common shares. On January 22, 2009 the authorized shares of common stock increased from 80,000,000 shares to 500,000,000 shares.
</font><font style="font: 10pt Times New Roman, Times, Serif">Effective July 10, 2009, the Company executed a further 1 for 10
reverse stock split while simultaneously reducing the authorized shares of common stock to 50,000,000 common shares with a $0.001
par value. Effective February 21, 2010, the Company increased its authorized shares of common stock from 50,000,000 shares to
150,000,000 common shares. The Company maintained its authorized shares of preferred stock at 5,000,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All
prior period share transactions included in the Company’s stock transactions and balances have been retroactively restated
for the transactions described above.</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">2013
Share Transactions</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
January 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">231,332 shares of its common stock
for conversion of one of the two November 1, 2012 Notes (Note 5) at a conversion price of $.0662 per share. The fair value of
the shares was determined to be $36,550 based on the quoted market price of $0.158 per share. The Company recorded $21,230 as
loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
February 2013, the Company issued 250,000 common shares to a consultant pursuant to a consulting agreement. The fair value of
the shares was determined to be $28,925 based on the quoted market price of $0.116 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
February 2013, the Company issued 1,898,588 common shares on a cashless conversion of 3,000,000 warrants at an exercise price
of $0.0572. The fair value of the shares was determined to be $246,816 based on the quoted market price of $0.13 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
March 2013, the Company issued 100,000 common shares to a consultant pursuant to a consulting agreement. The fair value of the
shares was determined to be $10,010 based on the quoted market price of $0.1001 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
February and March 2013, the Company received subscription proceeds of $242,950. The subscribers purchased 3,470,709 share units
at $0.07 per unit. Each unit consists of one share of Company’s common stock and one warrant exercisable at $0.07, which
expires in two years. The fair value of these warrants was determined to be $245,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">During
the nine month period ended September 30, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">3,176,334
shares of its common stock for conversion of December 14, 2012 Note (Note 5) at a conversion price of $.0603 per share. The fair
value of the shares was determined to be $404,849 based on the average quoted market price of $0.1245 per share. The Company recorded
$213,316 as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">During
the nine month period ended September 30, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">1,944,444
shares of its common stock for partial conversion of September 18, 2012 Note (Note 5) at an average conversion price of $.036
per share. The fair value of the shares was determined to be $166,667 based on the average quoted market price of $0.0857 per
share. The Company recorded $96,667 as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">During
the nine month period ended September 30, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">1,050,000
shares of its common stock for partial conversion of August 8, 2012 Note (Note 5) at an average conversion price of $.0681 per
share. The fair value of the shares was determined to be $110,700 based on the average quoted market price of $0.1063 per share.
The Company recorded $39,160 as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
April 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">281,490 shares of its common stock
for conversion of the balance of the November 1, 2012 Notes (Note 5) at a conversion price of $.0607 per share. The fair value
of the shares was determined to be $28,490 based on the quoted market price of $0.108 per share. The Company recorded $11,059
as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">During
the nine month period ended September 30, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">18,464,921
shares of its common stock for settlement of accounts payable in the amount of $510,572. The fair value of the shares was determined
to be $1,101,527 based on the average quoted market price of $0.0597 per share. The Company recorded $585,955 as loss on settlement
of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">During
the nine month period ended September 30, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">250,000
shares of its restricted common stock under a settlement agreement with a former director of the Company. The fair value of the
shares was determined to be $8,175 based on the average quoted market price of $0.0327 per share. The Company recorded $8,175
as stock-based management fee.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">During
the nine month period ended September 30, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">5,368,956
shares of its common stock for conversion of October 9, 2012 Convertible Notes (Note 5). The fair value of the shares was determined
to be $248,278 based on the average quoted market price of $0.0462 per share. The Company recorded $135,527 as loss on settlement
of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">During
the nine month period ended September 30, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">3,000,000
shares of its common stock for conversion of the balances of the August 8, 2012 Note and November 20, 2013 Note (Note 5) at an
average conversion price of $.021 per share. The fair value of the shares was determined to be $137,200 based on the average quoted
market price of $0.0457 per share. The Company recorded $74,200 as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">Between
July and September 30, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">10,818,783 shares
of its common stock for conversion of June 19, 2013 Convertible Note (Note 5). The fair value of the shares was determined to
be $181,606 based on the average quoted market price of $0.0168 per share. The Company recorded $79,078 as loss on settlement
of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
August, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">5,000,000 shares of its common
stock for conversion of July 12, 2013 Convertible Note (Note 5). The fair value of the shares was determined to be $52,500 based
on the quoted market price of $0.0105 per share. The Company recorded $24,300 as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
August and September 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">3,600,000 shares and
is obligated to issue additional 2,047,238 shares of its common stock for conversion of November 20, 2012 Convertible Note (Note
5). The fair value of the shares was determined to be $52,960 based on the average quoted market price of $0.0147 per share. The
Company recorded $22,748 as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
September, 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">1,000,000 shares of its common
stock for partial conversion of September 18, 2012 Note (Note 5) at an average conversion price of $.005 per share. The fair value
of the shares was determined to be $10,500 based on the quoted market price of $0.0105 per share. The Company recorded $5,500
as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
August and September 2013, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">8,000,000 shares of
its common stock as part of the settlement agreement of February 8, 2013. The fair value of the shares was determined to be $110,100
based on the average quoted market price of $0.0138 per share. The Company recorded $110,100 as loss on settlement of debt.</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">2012
Share Transactions</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">On
March 15, 2012, the Company issued 333,334 shares of its restricted common stock to related parties, pursuant to debt settlement
agreements to settle $50,000 of outstanding trade payable. </font><font style="font: 10pt Times New Roman, Times, Serif">At the
time of issuance the fair value of the shares was determined to be $50,000 based on the quoted market price of $0.15 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">On
March 15, 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">400,000 shares of its restricted
common stock pursuant to a debt settlement and a consulting agreement. At the time of issuance the fair value of the shares was
determined to be $71,200 based on the quoted market price of $0.15 per share. The Company recorded $9,930 as gain on settlement
of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">On
March 15, 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">789,778 shares of its restricted
common stock in settlement of accrued interest on the outstanding 2011 Notes. At the time of issuance the fair value of the shares
was determined to be $118,467 based on the quoted market price of $0.15 per share. No gain or loss was recorded on settlement.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
March 2012, the Company received subscription proceeds of $85,000. The subscribers purchased 733,334 share units at $0.15 per
unit. Each unit consists of 1 share of Company’s common stock and half a warrant exercisable at $0.40, which expires in two
years. The fair value of these warrants was determined to be $5,133.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
April 2012, the Company received subscription proceeds of $345,000. The subscribers purchased 2,300,000 share units at $0.15 per
unit. Each unit consists of 1 share of Company’s common stock and half a warrant exercisable at $0.40, which expires in two
years. The fair value of these warrants was determined to be $123,000.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
April, 2012, the Company issued 1</font><font style="font: 10pt Times New Roman, Times, Serif">00,000 shares of its restricted
common stock pursuant to a debt settlement and a consulting agreement. At the time of issuance the fair value of the shares was
determined to be $18,500 based on the quoted market price of $0.185 per share. The Company recorded $18,758 as gain on settlement.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif">In
April 2012, the Company issued 933,333 restricted common shares, at $0.15 per share, for proceeds of $140,000 received in October
2011, in a private placement.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
April 2012, the Company issued 1,000,000 common shares to a consultant pursuant to a consulting agreement effective October 1,
2011.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
April, 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">163,334 shares of its restricted
common stock in settlement of accrued interest on the outstanding 2011 Notes. At the time of issuance the fair value of the shares
was determined to be $24,500 based on the quoted market price of $0.15 per share. No gain or loss was recorded on settlement.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2012, the Company issued 14,000,000 common shares to consultants pursuant to a consulting agreement (Note 12). At the time
of issuance the fair value of the shares was determined to be $1,918,000 based on the quoted market price of $0.137 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
June 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">35,179 shares of its restricted common
stock pursuant to a consulting agreement. The fair value of the shares was determined to be $6,000 based on the quoted market
price of $0.17 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
August 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">500,000 shares of its restricted
common stock pursuant to a consulting agreement. The fair value of the shares was determined to be $74,000 based on the quoted
market price of $0.148 per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
September 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">500,000 shares of its restricted
common stock to the holder of a promissory note in exchange for the note holder’s agreement to forebear from pursuing collection
action on that note (Note 7). The fair value of the shares was determined to be $72,750 based on the quoted market price of $0.146
per share.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
November 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">437,063 shares of its common stock
on election by the holder to convert part of a convertible debt (Note 5) at a conversion price of $.0572 per share. The fair value
of the shares was determined to be $55,944 based on the quoted market price of $0.128 per share. The Company recorded $30,944
as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
November 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">597,185 shares of its common stock
on election by the holder to convert part of a convertible debt (Note 5) at a conversion price of $.0586 per share. The fair value
of the shares was determined to be $63,003 based on the quoted market price of $0.106 per share. The Company recorded $28,003
as loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
November 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">228,479 shares of its common stock
on election by the holder to convert part of a convertible debt (Note 5) at a conversion price of $.0601 per share. The fair value
of the shares was determined to be $21,591 based on the quoted market price of $0.095 per share. The Company recorded $7,854 as
loss on settlement of debt.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
December 2012, the Company issued </font><font style="font: 10pt Times New Roman, Times, Serif">1,078,477 shares of its common
stock as payment of installment of $65,032 for a convertible debt (Note 5) at a conversion price of $.0603 per share. The fair
value of the shares was determined to be $96,523 based on the quoted market price of $0.09 per share. The Company recorded $31,491
as loss on settlement of debt.</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Stock
Compensation Plan</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
October 14, 2009, the Company adopted the 2009 Stock Incentive Plan (the “2009 Plan”) which supersedes and replaces
the 2007 Stock Plan. The 2009 Plan allows for the issuance of up to 10,000,000 common shares. <font style="letter-spacing: -0.1pt">Options
granted under the Plan shall be at prices and for terms as determined by the Board of Directors.</font></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 30, 2012, the Company granted 250,000 stock options to a management at an exercise price of $0.18 per share, vesting monthly
over thirty six month period. <font style="letter-spacing: -0.1pt">The aggregate fair value of the grant was estimated at $45,000,
or $0.18 per option, using the Black-Scholes Option Pricing Model with weighted average assumptions as follows: a risk free interest
rate of 1.95%, a dividend yield of 0%, an expected volatility of 199.0%, and an expected life of 10 years. </font></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
May 8, 2012, the Company granted 250,000 stock options to a consultant at an exercise price of $0.17 per share, vesting monthly
over twelve month period. <font style="letter-spacing: -0.1pt">The aggregate fair value of the grant was estimated at $40,000,
or $0.17 per option, using the Black-Scholes Option Pricing Model with weighted average assumptions as follows: a risk free interest
rate of 1.71%, a dividend yield of 0%, an expected volatility of 199.0%, and an expected life of 10 years. </font></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">The
expensed portion of the value of the vesting options during the nine months ended September 30, 2013 was $43,091 (September 30,
2012 - $106,072) which was recorded as stock based consulting and management fees. During the period, stock-based consulting and
management fees also includes share based compensation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"> </font></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><b>Share
purchase options</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">A
summary of the Company’s stock options as of September 30, 2013 and changes during the period is presented below: </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Number of <br />Options</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Weighted Average <br />Exercise Price</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Weighted Average <br />Remaining Life</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 20%; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Balance, December 31, 2011</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 19%; text-align: right">6,278,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 19%; text-align: right">0.18</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 19%; text-align: right">6.85</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Issued</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">500,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.17</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.35</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Cancelled/Forfeited</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(250,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.35</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Balance, December 31, 2012</b></font></td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,528,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.18</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.05</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Issued</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Cancelled/Forfeited</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Balance, September 30, 2013  </b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,528,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">0.18</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5.30</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">At
September 30, 2013, the intrinsic value of the vested options was equal to $nil (December 31, 2012 - $nil).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">A
summary of the status of the Company’s unvested options as of September 30, 2013 is presented below:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Number of <br />Shares</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Weighted Average <br />Grant-Date <br />Fair Value</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 26%; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Unvested, December 31, 2012</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 26%; text-align: right">379,575</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 26%; text-align: right">0.18</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Granted</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Vested</font></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(247,630</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.18</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Cancelled/Forfeited</font></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Unvested, September 30, 2013 </b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">131,945</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">0.17</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Share
Purchase Warrants</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
March, 2012, the Company issued 366,668 share purchase warrants to acquire an equivalent number of common shares of the Company,
at an exercise price of $0.40 per share for an exercise period of up to two years from the issuance date. The warrants were issued
pursuant to the private placement of $110,000 and included within equity. The fair value of these warrants was determined to be
$5,133, using the Black-Scholes Option Pricing Model with an expected life of 2 years, a risk free interest rate of 0.37%, a dividend
yield of 0%, and an expected volatility of 63%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
April, 2012, the Company issued 1,150,000 share purchase warrants to acquire an equivalent number of common shares of the Company,
at an exercise price of $0.40 per share for an exercise period of up to two years from the issuance date. The warrants were issued
pursuant to a private placement and included within equity. The fair value of these warrants was determined to be $123,000, using
the Black-Scholes Option Pricing Model with an expected life of 2 years, a risk free interest rate of 0.27%, a dividend yield
of 0%, and an expected volatility of 146.6%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
October, 2012, the Company issued 3,000,000 share purchase warrants to acquire an equivalent number of common shares of the Company,
at an exercise price of $0.25 per share for an exercise period of up to four years from the issuance date. The warrants were issued
pursuant to a convertible debt with price adjustment features. The residual fair value of these warrants was determined to be
$300,000 and recognized as a derivative liability. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
December, 2012, the Company issued 1,000,000 share purchase warrants to acquire an equivalent number of common shares of the Company,
at an exercise price of $0.10 per share for an exercise period of up to five years from the issuance date. The warrants were issued
pursuant to a private placement and included within equity. The fair value of these warrants was determined to be $178,000, using
the Black-Scholes Option Pricing Model with an expected life of 5 years, a risk free interest rate of 0.87%, a dividend yield
of 0%, and an expected volatility of 199.0%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
March, 2013, the Company issued 3,470,709 share purchase warrants to acquire an equivalent number of common shares of the Company,
at an exercise price of $0.07 per share for an exercise period of up to two years from the issuance date. The warrants were issued
pursuant to a private placement and included within equity. The fair value of these warrants was determined to be $245,000, using
the Black-Scholes Option Pricing Model with an expected life of 2 years, a risk free interest rate of 0.24%, a dividend yield
of 0%, and an expected volatility of 131.02%.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
May, 2013, the Company issued 2,000,000 share purchase warrants to acquire an equivalent number of common shares of the Company,
at an exercise price of $0.06 per share for an exercise period of up to four years from the issuance date. The warrants were issued
pursuant to a convertible debt with price adjustment features. The residual fair value of these warrants was determined to be
$96,000 and recognized as a derivative liability. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
July, 2013, the Company issued 4,166,667 share purchase warrants to acquire an equivalent number of common shares of the Company,
at an exercise price of $0.04 per share for an exercise period of up to five years from the issuance date. The warrants were issued
pursuant to a convertible debt with price adjustment features. The residual fair value of these warrants was determined to be
$104,000 and recognized as a derivative liability. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">A
summary of the Company’s share purchase warrants as of September 30, 2013 and changes during the period is presented below:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Number of <br />Warrants</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Weighted Average <br />Exercise Price</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Weighted Average <br />Remaining Life</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; padding-left: 5.4pt">Balance, December 31, 2011</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">12,106,355</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">0.56</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">2.81</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">  Issued</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,516,668</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.32</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">  Exercised, cancelled or expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(714,400</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2.33</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Balance, December 31, 2012</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,908,623</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.39</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.19</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">  Issued</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,637,376</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.05</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.52</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">  Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,000,000</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.25</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">  Extinguished or expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,696,071</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.39</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Balance, September 30, 2013</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">19,849,928</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">0.24</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3.35</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">Number
of <br />Options</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">Weighted
Average <br />Exercise Price</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">Weighted
Average <br />Remaining Life</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 20%; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Balance,
December
31,
2011</b></font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 19%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,278,000</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 19%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.18</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 19%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6.85</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Issued</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.17</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">9.35</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Cancelled/Forfeited</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">(250,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.35</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Balance,
December
31,
2012</b></font></td><td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,528,000</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.18</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6.05</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Issued</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">  Cancelled/Forfeited</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"><b>Balance,
September
30,
2013  </b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,528,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">0.18</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">5</font><font style="font-family: Times New Roman, Times, Serif">.30</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="width: 55%; border-top: windowtext 1.5pt solid; border-bottom: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="width: 12%; border-top: windowtext 1.5pt solid; border-bottom: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="width: 16%; border-top: windowtext 1.5pt solid; border-bottom: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Number of</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Shares</p></td>
<td style="width: 17%; border-top: windowtext 1.5pt solid; border-bottom: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Weighted Average</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Grant-Date</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Fair Value</p></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"><b>Unvested, December 31, 2012</b></td>
<td style="padding-right: 6.45pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-right: 5.3pt; padding-left: 5.4pt; text-align: right"><font style="letter-spacing: -0.1pt">379,575 </font></td>
<td style="padding-right: 21.95pt; padding-left: 5.4pt; text-align: right">$  0.18</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">  Granted</td>
<td style="padding-right: 6.45pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-right: 5.3pt; padding-left: 5.4pt; text-align: right">-<font style="letter-spacing: -0.1pt"> </font></td>
<td style="padding-right: 21.95pt; padding-left: 5.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">  Vested</td>
<td style="padding-right: 6.45pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-right: 5.3pt; padding-left: 5.4pt; text-align: right">(247,630)</td>
<td style="padding-right: 21.95pt; padding-left: 5.4pt; text-align: right">0.18</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: windowtext 0.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">  Cancelled/Forfeited</td>
<td style="border-bottom: windowtext 0.5pt solid; padding-right: 6.45pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="border-bottom: windowtext 0.5pt solid; padding-right: 5.3pt; padding-left: 5.4pt; text-align: right">-<font style="letter-spacing: -0.1pt"> </font></td>
<td style="border-bottom: windowtext 0.5pt solid; padding-right: 21.95pt; padding-left: 5.4pt; text-align: right">-</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="padding-right: 6.45pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-right: 5.3pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="padding-right: 21.95pt; padding-left: 5.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><b>Unvested, September 30, 2013 </b></td>
<td style="border-bottom: windowtext 1.5pt solid; padding-right: 6.45pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt solid; padding-right: 5.3pt; padding-left: 5.4pt; text-align: right"><font style="letter-spacing: -0.1pt">131,945 </font></td>
<td style="border-bottom: windowtext 1.5pt solid; padding-right: 21.95pt; padding-left: 5.4pt; text-align: right">$  0.17</td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Number of <br />Warrants</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Weighted Average <br />Exercise Price</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Weighted Average <br />Remaining Life</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; padding-left: 5.4pt">Balance, December 31, 2011</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">12,106,355</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">0.56</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">2.81</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">  Issued</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,516,668</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.32</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">  Exercised, cancelled or expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(714,400</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2.33</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">Balance, December 31, 2012</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,908,623</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.39</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.19</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt">  Issued</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,637,376</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.05</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.52</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">  Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,000,000</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">0.25</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">  Extinguished or expired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,696,071</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.39</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt">Balance, September 30, 2013</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">19,849,928</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">0.24</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3.35</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
10:	Supplemental Cash Flow Information AND NON-CASH INVESTING AND FINANCING ACTIVITIES </u></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="5" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">Nine
Months Ended <br />September 30, 2013</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">Shares/warrants</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">Amount</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">       $</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Shares
issued pursuant to consulting arrangements</font></td><td style="width: 8%; color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 12%; color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">350,000</font></td><td style="width: 1%; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 8%; color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">38,935</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Shares
issued pursuant to debt settlement</font></td><td style="color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">18,464,921</font></td><td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">400,472</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Shares
issued pursuant to a settlement agreement</font></td><td style="color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">8,000,000</font></td><td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">110,100</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Shares
issued pursuant to notes conversion</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">30,471,339</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">699,427</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> <br /> <br /></font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Nine
Months
Ended</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">September
30,
2012</font></p></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; color: black">Shares/warrants</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; color: black">Amount</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif; color: black">     $</font></td><td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Shares
issued pursuant to debt settlement agreements</font></td><td style="color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,126,447</font></td><td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">326,937</font></td><td style="color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Common
shares issued pursuant to consulting service arrangements</font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">14,535,179</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="color: black; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,998,000</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0.5in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">See
Notes 5 and 9 for additional disclosure on non-cash transactions.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> <br /></font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">                      Period
Ended
June
30,</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: right; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2012</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Interest
paid in cash</font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Income
taxes paid</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0.5in"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="5" style="text-align: center; border-bottom: Black 1pt solid">Nine Months Ended <br />September 30, 2013</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td colspan="7" style="color: black; text-align: center; border-bottom: Black 1pt solid">Shares/warrants</td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="color: black; text-align: center; border-bottom: Black 1pt solid">Amount</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: center">       $</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; color: black; text-align: left; padding-left: 5.4pt">Shares issued pursuant to consulting arrangements</td><td style="width: 8%; color: black"> </td>
<td style="width: 1%; color: black; text-align: left"> </td><td style="width: 12%; color: black; text-align: right">350,000</td><td style="width: 1%; color: black; text-align: left"> </td><td style="width: 8%; color: black"> </td>
<td style="color: black; text-align: right">38,935</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-left: 5.4pt">Shares issued pursuant to debt settlement</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">18,464,921</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: right">400,472</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt">Shares issued pursuant to a settlement agreement</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">8,000,000</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: right">110,100</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Shares issued pursuant to notes conversion</td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">30,471,339</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: right">699,427</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> <br /> <br /></td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Nine Months Ended</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">September 30, 2012</p></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="color: black">Shares/warrants</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right"><font style="color: black">Amount</font></td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right"><font style="color: black">     $</font></td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="color: black; text-align: left; padding-left: 5.4pt">Shares issued pursuant to debt settlement agreements</td><td style="color: black"> </td>
<td style="color: black; text-align: left"> </td><td style="color: black; text-align: right">2,126,447</td><td style="color: black; text-align: left"> </td><td style="color: black"> </td>
<td style="color: black; text-align: left">$</td><td style="color: black; text-align: right">326,937</td><td style="color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="color: black; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Common shares issued pursuant to consulting service arrangements</td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left"> </td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">14,535,179</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td><td style="color: black; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; color: black; text-align: left">$</td><td style="border-bottom: Black 1pt solid; color: black; text-align: right">1,998,000</td><td style="padding-bottom: 1pt; color: black; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> <br /></td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">                 Period Ended June 30,</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: right; padding-bottom: 1pt; padding-left: 5.4pt">2013</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2012</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; padding-left: 5.4pt">Interest paid in cash</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Income taxes paid</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
11:	ContingencIES AND COMMITMENTs</u></font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Contingencies</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Tax
Filings</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">The
Company has not filed income tax returns for several years in certain operating jurisdictions (Note 10), and may be subject to
possible compliance penalties and interest. Management is currently not able to make a reliably measurable provision for possible
liability for penalties and interest, if any, at this time, and the Company may be liable for such amounts upon assessment. Penalties
and interest, if assessed in the future, will be recorded in the period such amounts are determinable.</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Commitments</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Combined
Research and Operating Obligations</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">Effective
May 25, 2010, the Company entered into a research and license Option Agreement with the Mayo Clinic for the development and possible
commercial use of a cancer vaccine. Subject to the approval and guidance of the United States Food and Drug Administration (“FDA”)
the Mayo Clinic plans to conduct a Phase I human clinical trial (“Phase I Trial”) to test and develop the Company’s
technology. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">The
Company has agreed that, during the period of the option and upon approval of FDA to conduct Phase I Trials, will pay all the
costs incurred by the Mayo Clinic, not to exceed a total of $841,000, of which, $510,572 has been paid and $50,000 accrued as
of September 30, 2013 . Both Parties agree that within 30 days after the Mayo Clinic informs the Company in writing about the
receipt of FDA approval, the parties shall enter into an a formal research agreement. Management anticipates that Phase 1 Trials
will begin in the fourth quarter of 2013. An initial payment of $250,000 will be required within 30 days of receiving notice from
the Mayo</font><font style="font: 10pt Times New Roman, Times, Serif"> Clinic that the Phase 1 Trial will commence.</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Management
Services Agreement</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
February 2011, the Company approved an employment agreement with Dr. Wilson with an initial term of 2 years, which may be automatically
extended for successive one-year terms. This employment agreement provides for annual compensation of $180,000 and the grant of
an option to acquire 2,000,000 shares of the Company’s common stock at $0.19 per share, 50% of which vested on March 16,
2011, while the remainder vested monthly over a period of two years (41,667 per month). The options shall be exercisable for at
least five years.</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Consultant
Agreements</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
April 2012, the Company entered into an investors’ relation consulting agreement for a one year term, with a one-time right
to terminate the agreement at its six month anniversary. The consulting agreement provided for the Company to issue 620,690 shares
to the consultant and a monthly payment of $7,500.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
April 2012, the Company entered into financial consulting service agreements, which included compensation of 14,000,000 shares
of common stock, whereby the Company agreed to issue additional shares to the consultants to restore their holdings to 24.8% of
fully diluted capitalization of the Company if the Company completes a re-organization, re-capitalization or a liquidity event
during the eighteen months commencing with the signing of these agreements. In May 2013, the Company recovered 2,800,000 of 14,000,000
common shares issued to the consultant during the year ended December 31, 2012, under a settlement agreement.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
May 2012, the Company entered into a one year consulting services agreement superseding the previous management consulting agreement
with Mr. Corin to provide expertise in the areas of finance and corporate development to the Management and Board of TapImmune.
The consulting services agreement provides for a consulting fee of $12,000 per month from May 2012 to December 2012 and $10,000
for the following four months. The Company also granted 250,000 options to Mr. Corin, vesting equally over twelve months at an
exercise price of $0.17 with a ten year term.</font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Rental
Lease Agreement</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">In
December 2011, the Company entered into a lease agreement, to start in January 2012 for a two year period. The Company will pay
a monthly basic rent of $7,152 and additional rent for operating costs of 2.20% of total operating expenses of the property.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt">The
Company has obligations under various research and consulting agreements through December 31, 2014. The aggregate minimum annual
payments for the years ending December 31 are as follows:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: top">
<td style="width: 40%"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td>
<td style="width: 60%"><font style="font: 10pt Times New Roman, Times, Serif">$422,749</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><u>22,284</u></font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><u>$445,033</u></font></td></tr>
<tr style="vertical-align: top">
<td style="font-weight: bold; text-decoration: underline"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-decoration: underline"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
12:	accounts payable and accrued liabilities</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b> </b></font></p>
<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Accounts
Payable and Accrued Liabilities</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3"><font style="font: 10pt Times New Roman, Times, Serif">September 30, 2013</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> Trade
accounts payable</font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">983,303</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 8%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 12%; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,663,315</font></td><td style="width: 1%; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> Accrued liabilities</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">136,395</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">242,245</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> Employee payroll</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">127,083</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">61,458</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> Accrued
interest</font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">210,517</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">74,698</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,457,298</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,041,716</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3">September 30, 2013</td><td> </td>
<td colspan="3">December 31, 2012</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">$</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">$</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; padding-left: 5.4pt"> Trade accounts payable</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">983,303</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">1,663,315</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt"> Accrued liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">136,395</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">242,245</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt"> Employee payroll</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">127,083</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">61,458</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"> Accrued interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">210,517</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,698</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,457,298</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,041,716</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><u>Note
13:	SUBSEQUENT EVENTS</u></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
November, 2013, the Company entered into securities purchase agreements with accredited investors to place convertible notes with
a maturity date of six months after the issuance thereof in the aggregate principal amount of $143,000. Consideration under the
notes consisted of $130,000 in cash proceeds and an original issue discount of 10%. The note holders have the option to convert
a portion or all of the outstanding balance of the notes including any accrued interest into shares of the Company’s common
stock at a conversion rate of lesser than $0.01 per share or a conversion price available to any of the other debtors. The note
carries no interest unless the note is in default, in which case, the note will incur an interest rate of 20% per year.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
November, 2013, the Company exchanged partial amount due to a related party into a convertible note with a maturity date of six
months after the issuance thereof in the aggregate principal amount of $56,667. Consideration under the notes consisted of $51,000
of accounts payable and an original issue discount of 10%. The note was issued on the same terms as the notes issued to accredited
investors in November 2013.In November, 2013, one of the convertible note holders elected to convert $6,360, a portion of the
note, into 1,200,000 shares of the Company at a conversion price of $0.0053.</font></p>
<p style="margin: 0pt"></p>
143000
130000
10%.
56667
51000
6360
1200000
0.0053