Elray Resources (ELRA) 10-Q 19 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 14, 2014
Document And Entity Information	'	'
Entity Registrant Name	'ELRAY RESOURCES, INC.	'
Entity Central Index Key	'0001402371	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	138,039,710
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$99,663	$9,097
Accounts receivable	39,500	'
Other receivable	31,925	'
Prepaid expenses	21,952	41,452
Total current assets	193,040	50,549
Rent deposit	7,535	7,535
Intangible assets, net	2,986,112	'
Total assets	3,186,687	58,084
Current liabilities:	'	'
Accounts payable and accrued liabilities	1,135,457	1,989,369
Accounts payable - related parties	934,102	732,484
Advances from shareholders	58,491	55,991
Settlement payable	2,450,410	'
Notes payable	45,429	292,929
Convertible notes payable, net of discounts	305,357	1,417,822
Derivative liabilities - note conversion feature	4,840,121	439,424
Total current liabilities	9,769,367	4,928,019
Long - term convertible notes payable	1,334,499	'
Total liabilities	11,103,866	4,928,019
Shareholders' deficit:	'	'
Series A preferred stock, par value $0.001, 300,000,000 shares authorized, 0 issued and outstanding	'	'
Series B preferred stock, par value $0.001, 280,000,000 shares authorized, 118,000,000 shares issued and outstanding	118,000	118,000
Series C preferred stock, par value $0.001, 10,000,000 shares authorized, 0 shares issued and outstanding	'	'
Common stock, par value $0.001, 890,000,000 shares authorized, 35,721,302 and 3,405,661 shares issued and outstanding, respectively	35,719	3,406
Additional paid-in capital	9,724,407	8,038,693
Subscription receivable	-161,589	-88,000
Accumulated deficit during the development stage	-17,633,716	-12,942,034
Total shareholders' deficit	-7,917,179	-4,869,935
Total liabilities and shareholders' deficit	$3,186,687	$58,084

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Shareholders' deficit:	'	'
Series A preferred stock; Par Value	$0.00	$0.00
Series A preferred stock; Shares Authorized	300,000,000	300,000,000
Series A preferred stock; Shares Issued	0	0
Series A preferred stock; Shares Outstanding	0	0
Series B preferred stock; Par Value	$0.00	$0.00
Series B preferred stock; Shares Authorized	280,000,000	280,000,000
Series B preferred stock; Shares Issued	118,000,000	118,000,000
Series B preferred stock; Shares Outstanding	118,000,000	118,000,000
Series C preferred stock; Par Value	$0.00	$0.00
Series C preferred stock; Shares Authorized	10,000,000	10,000,000
Series C preferred stock; Shares Issued	0	0
Series C preferred stock; Shares Outstanding	0	0
Common Stock; Par Value	$0.00	$0.00
Common Stock; Shares Authorized	890,000,000	890,000,000
Common Stock; Shares Issued	35,721,302	3,405,661
Common Stock; Shares Outstanding	35,721,302	3,405,661

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Consolidated Statements Of Operations	'	'	'	'
Revenues	$45,000	'	$75,000	'
Operating expenses:	'	'	'	'
General and administrative expenses	698,757	417,782	1,331,071	682,347
Depreciation and amortization	288,978	'	481,630	'
Total operating expenses	987,735	417,782	1,812,701	682,347
Loss from operations	-942,735	-417,782	-1,737,701	-682,347
Other income (expense):	'	'	'	'
Interest expense	-644,337	-186,165	-2,779,596	-312,512
Unrealized gain (loss) on derivative liability - note conversion feature	86,764	17,923	88,093	-21,485
Loss on settlement of accounts and notes payable	-10,073	-242,570	-262,478	-289,713
Total other income (expense)	-567,646	-410,812	-2,953,981	-623,710
Net loss	($1,510,381)	($828,594)	($4,691,682)	($1,306,057)
Net loss per common share - basic and diluted	($0.16)	($0.41)	($0.69)	($0.79)
Weighted average common shares outstanding - basic and diluted	9,576,580	2,003,389	6,810,846	1,660,838

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($4,691,682)	($1,306,057)
Adjustments to reconcile net loss to cash used in operations activities:	'	'
Stock-based compensation	306,375	161,450
Non-cash service fees	157,000	'
Depreciation and amortization	481,630	'
Amortization of debt discount	883,384	55,299
Non-cash interest expense related to conversion feature of notes payable	1,795,095	120,059
Unrealized (gain) loss on derivative liabilities - note conversion feature	-88,093	21,485
Loss on settlement of accounts and notes payable	262,478	289,713
Changes in operating assets and liabilities:	'	'
Prepaid expense	6,000	-6,059
Accounts and other receivables	-71,425	'
Accounts payable and accrued liabilities	398,686	424,907
Accounts payable - related parties	201,618	97,305
Net cash used in operating activities	-358,934	-159,898
Cash flows from investing activities:	'	'
Rent deposit	'	-7,535
Net cash used in investing activities	'	-7,535
Cash flows from financing activities:	'	'
Proceeds from convertible notes payable	25,000	167,500
Proceeds from long-term convertible notes payable	272,000	'
Proceeds from notes payable - related parties	2,500	'
Common stock issued for cash	150,000	'
Net cash provided by financing activities	449,500	167,500
Net increase in cash	90,566	67
Cash at beginning of period	9,097	214
Cash at end of period	99,663	281
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	'	'
Cash paid for income taxes	'	'
Non-cash investing and financing activities:	'	'
Common stock issued for conversion of debt	805,773	721,298
Debt discount-derivative liability on note conversion feature	3,089,484	167,500
Note issued to acquire intangible assets	$3,467,742	'

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2014
Basis Of Presentation	'
NOTE 1 - BASIS OF PRESENTATION	'
	The accompanying unaudited interim consolidated financial statements of Elray Resources, Inc. (“Elray” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report for the year ended December 31, 2013 on Form 10-K filed on March 28, 2014.
	In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for the most recent fiscal year ended December 31, 2013 have been omitted.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.
	Cash and Cash Equivalents
	The Company considers all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation (“FDIC”).
	Intangible Assets
	Intangible assets consist of expenditures for domain names and certain intellectual properties acquired for an online horse racing product the Company is developing. The intangible assets are recorded at cost and amortized over estimated useful life of 3 years.
	Revenues
	Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable.
	Subsequent Events
	Elray evaluated subsequent events through the date these financial statements were issued for disclosure purposes.
	Recent Accounting Pronouncements
	In June 2014, the FASB issued ASU 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. ASU 2014-10 eliminates the distinction of a development stage entity and certain related disclosure requirements, including the elimination of inception-to-date information on the statements of operations, cash flows and stockholders’ equity. The amendments in ASU 2014-10 will be effective prospectively for annual reporting periods beginning after December 15, 2014, and interim periods within those annual periods, however early adoption is permitted. The Company evaluated and adopted ASU 2014-10 for the reporting period ended June 30, 2014.
	Elray’s management does not believe that any other recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

GOING_CONCERN

GOING CONCERN	6 Months Ended
	Jun. 30, 2014
Going Concern	'
NOTE 2 - GOING CONCERN	'
	The accompanying unaudited consolidated financial statements of Elray have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company sustained a net loss of $4,691,682 and utilized cash for operating activities of $358,934 for the six months ended June 30, 2014. The Company had a working capital deficit, stockholders’ deficit and accumulated deficit of $9,576,327, $7,917,177 and $17,633,716, respectively, at June 30, 2014. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. Without realization of additional capital, it would be unlikely for Elray to continue as a going concern. Elray's management plans on raising cash from public or private debt or equity financing, on an as needed basis, and in the longer term, revenues from the gambling business. Elray's ability to continue as a going concern is dependent on these additional cash financings, and, ultimately, upon achieving profitable operations through the development of its gambling business.

SETTLEMENT_PAYABLE

SETTLEMENT PAYABLE	6 Months Ended
	Jun. 30, 2014
Settlement Payable	'
NOTE 3 - SETTLEMENT PAYABLE	'
	On December 20, 2013, the Company entered into a settlement agreement with Tarpon Bay Partners LLC (“Tarpon”) whereby Tarpon acquired certain claims against the Company in the amount of $2,656,152. Pursuant to the agreement, the Company and Tarpon submitted the settlement agreement to the Circuit Court of the Second Judicial Circuit, Leon County, Florida for a hearing on the fairness of the agreement and the exemption from registration under the Securities Act of 1933 for the shares that will be issued to Tarpon for resale (“Settlement Shares”). 75% of the proceeds less all applicable fees and charges from the resale of the Settlement Shares will be remitted to the original claim holders of the Company (“Remittance Amount”). The Company agreed to issue sufficient shares to generate proceeds such that the aggregate Remittance Amount equals $2,656,214. Additionally, the Company agreed to issue a convertible note of $132,000, maturing in 6 months and convertible to the Company’s common stock at 50% of the lowest closing bid price for the 20 days prior to the conversion. The settlement agreement was effective on January 27, 2014 when the court granted approval.
	During the six months ended June 30, 2014, the Company issued Tarpon 3,331,000 common shares which have been sold entirely. Net proceeds from the sale amounted to $205,804, within which $197,298 was remitted to the original claim holders and $8,506 was not yet allocated among the claim holders. As of June 30, 2014, the Company has settlement payable of $2,450,410.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2014
Intangible Assets	'
NOTE 4 - INTANGIBLE ASSETS	'
	Intangible assets consisted of following at June 30, 2014 and December 31, 2013:
		June 30,			December 31,
		2014			2013
	Intellectual properties	$	3,467,742		$	-
	Accumulated amortization		(481,630	)		-
	Total	$	2,968,112		$	-
	On January 23, 2014, the Company entered into a Know-How and Asset Purchase Agreement, with Virtual Technology Group, LLC ("VTG") and Gold Globe Investments Limited (“GGIL”), whereby the Company acquired from VTG and GGIL all of their know-how, intellectual property, software, documentation, designs, work products and database schemas. The purchase price for these assets consisted of a convertible note in the amount of $1.5 million payable to VTG and a second convertible note in the amount of $2.8 million payable to GGIL. The Company recorded an initial discount to the notes of $832,258 for the benficial conversion feature.

NOTES_PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2014
Notes Payable	'
NOTE 5 - NOTES PAYABLE	'
	Notes payable
	Notes payable at June 30, 2014 and December 31, 2013 consisted of the following:
		Final Maturity		Interest Rate				June 30,				December 31,
								2014				2013
	C. Smith	9/18/11			8	%		$	-			$	14,850
	D. Radcliffe	9/18/11			8	%			-				49,500
	L. Kaswell	9/18/11			8	%			-				99,000
	M. Trokel	9/18/11			8	%			-				49,500
	Radcliffe Investment Partners I	9/18/11			8	%			-				34,650
	Morchester International Limited	7/14/12			15	%			35,429				35,429
	Morchester International Limited	7/14/12			8	%			10,000				10,000
	Total							$	45,429			$	292,929
	On December 9, 2011, Elray entered into an Amended Splitrock Agreement whereby the Company acquired certain assets and liabilities of Splitrock. As part of the liabilities assumed in terms of the Amended Splitrock Agreement, the Company assumed notes payable of $292,929 bearing interest of 8% or 15% per annum. All of these notes are past due and currently in default.
	On January 27, 2014, the court granted an approval of the settlement agreement with Tarpon whereby the Company would issue shares to Tarpon for resale to pay off certain liabilities. Principal of $247,500 and associated accrued interest acquired by Tarpon were reclassified to settlement payable during the six months ended June 30, 2014.
	Convertible notes payable
	Convertible notes payable, net of discounts, at June 30, 2014 and December 31, 2013 consisted of the following:
		30-Jun-14												31-Dec-13
		Principal				Unamortized discount				Principal, net of discounts				Principal		Unamortized discount			Principal, net of discounts
	a. Alan Binder	$	-			$	-			$	-			$	25,000	$	-		$	25,000
	b. JSJ Investments, Inc.		10,670				-				10,670				38,600		-			38,600
	c. JSJ Investments, Inc.		75,000				(48,146	)			26,854				-		-			-
	d. Asher Enterprises, Inc.		-				-				-				37,500		(15,492	)		22,008
	e. Asher Enterprises, Inc.		-				-				-				37,500		(20,989	)		16,511
	f. Asher Enterprises, Inc.		-				-				-				27,500		(21,689	)		5,811
	g. Asher Enterprises, Inc.		28,770				(9,048	)			33,452				42,500		(38,298	)		4,202
	h. Asher Enterprises, Inc.		32,500				(13,382	)			19,118				-		-			-
	i. Asher Enterprises, Inc.		32,500				(17,574	)			14,926				-		-			-
	j. KBM Worldwide, Inc.		32,500				(21,982	)			10,518				-		-			-
	k. KBM Worldwide, Inc.		37,500				(31,847	)			5,653				-		-			-
	l. GEL Properties, LLC		37,000				(7,955	)			29,045				50,000		(42,235	)		7,765
	m. LG Capital Funding, LLC		40,500				(7,922	)			32,578				50,000		(42,075	)		7,925
	n. LG Capital Funding, LLC		37,000				(25,591	)			11,409				-		-			-
	o. LG Capital Funding, LLC		50,000				(38,953	)			11,047				-		-			-
	p. Virtual Technology Group, Ltd		1,500,000				(1,035,289	)			464,711				-		-			-
	q. Gold Globe Investments Ltd		2,800,000				(1,932,541	)			867,459				-		-			-
	r. Vista Capital Investments, LLC.		25,000				(22,671	)			2,329				-		-			-
	s. Rousay Holdings Ltd.		-				-				-				1,290,000		-			1,290,000
	t. Tarpon Bay Partners, LLC.		13,050				(6,438	)			6,612				-		-			-
	u. ASC Recap		132,000				(24,795	)			107,205				-		-			-
	Total	$	4,883,990			$	(3,244,134	)		$	1,639,856			$	1,598,600	$	(180,778	)	$	1,417,822
	The table below presents the changes of debt discount during the six months ended June 30, 2014:
	31-Dec-13	$	180,778
	Additions		3,946,742
	Amortization		(883,386	)
	30-Jun-14	$	3,244,134
	a. On December 9, 2011, as a result of the Splitrock transaction, the Company assumed a $25,000 convertible note. The note was due on August 4, 2012 with 10% annual interest. The note was convertible to Splitrock’s common stock at $0.10 per share prior to December 9, 2011 and is now convertible to 7,545 shares of the Company’s common stock. The note was acquired by Tarpon on January 27, 2014. See Note 3.
	b. On May 31, 2013, the Company entered into a convertible promissory note with JSJ for $50,000 (the "Third JSJ Note"). The note bears interest at 10% and matured on December 2, 2013. From November 31, 2013 to November 31, 2014, the note holder has the option to convert the note to common shares in the Company at a discount of 50% of the average closing price over the last 120 days prior to conversion, or the average closing price over the last seven days prior to conversion. During the six months ended June 30, 2014, JSJ converted $27,930 of its third note to 147,000 shares of common stock.
	c. On January 30, 2014, the Company entered into a convertible promissory note with JSJ for $50,000 cash (the "Fourth JSJ Note"). The note bears interest at 10% and matured on January 30, 2015. Upon the maturity, the note has a cash redemption premium of 150% of the principal amount. The note is convertible to the Company’s common shares at a discount of 50% of the average of the three lowest bids on the twenty days before the date this note is executed, or 50% of the average of the three lowest bids during the twenty trading days preceding the delivery of any conversion notice, whichever is lower.
	d. On July 15, 2013, the Company entered into a convertible promissory note with Asher for $37,500 (the "Seventh Asher Note"). The note bears interest at 8% and matures on April 17, 2014. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. Asher has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 45% of the average lowest three closing bid prices during the ten trading days prior to the conversion date. During the six months ended June 30, 2014, the Company issued 163,884 shares of common stock for the conversion of the Seventh Asher Note in the amount of $37,500 and accrued interest of $1,500.
	e. On August 28, 2013, the Company entered into a convertible promissory note with Asher for $37,500 (the "Eighth Asher Note"). The note bears interest at 8% and matures on May 30, 2014. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. Asher has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the average lowest three closing bid prices during the ten trading days prior to the conversion date. During the six months ended June 30, 2014, the Company issued 370,940 shares of common stock for the conversion of the Eighth Asher Note in the amount of $37,500 and accrued interest of $1,500.
	f. On October 24, 2013, the Company entered into a convertible promissory note with Asher for $27,500 (the "Ninth Asher Note"). The note bears interest at 8% and matures on July 28, 2014. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. Asher has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the average lowest three closing bid prices during the ten trading days prior to the conversion date. During the six months ended June 30, 2014, the Company issued 2,583,210 shares of common stock for the conversion of the Ninth Asher Note in the amount of $27,500 and accrued interest of $1,100.
	g. On November 21, 2013, the Company entered into a convertible promissory note with Asher for $42,500 (the "Tenth Asher Note"). The note bears interest at 8% and matures on August 25, 2014. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. Asher has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the average lowest three closing bid prices during the ten trading days prior to the conversion date. During the six months ended June 30, 2014, the Company issued 2,692,157 shares of common stock for the conversion of the Tenth Asher Note in the amount of $13,730.
	h. On January 9, 2014, the Company entered into a convertible promissory note with Asher for $32,500 (the "Eleventh Asher Note"). The note bears interest at 8% and matures on October 13, 2014. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. Asher has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the average lowest three closing bid prices during the ten trading days prior to the conversion date.
	i. On February 20, 2014, the Company entered into a convertible promissory note with Asher for $32,500 (the "Twelfth Asher Note"). The note bears interest at 8% and matures on November 24, 2014. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. Asher has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the average lowest three closing bid prices during the ten trading days prior to the conversion date.
	j. On March 24, 2014, the Company entered into a convertible promissory note with KBM Worldwide Inc., an affiliate of Asher, (the "First KBM Note") for $32,500. The note bears interest at 8% and matures on January 2, 2015. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. KBM has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the average lowest three closing bid prices during the ten trading days prior to the conversion date.
	k. On May 14, 2014, the Company entered into a convertible promissory note with KBM Worldwide Inc. (the "Second KBM Note") for $37,500. The note bears interest at 8% and matures on February 16, 2015. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. KBM has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the average lowest three closing bid prices during the ten trading days prior to the conversion date.
	l. On November 11, 2013, the Company entered into a convertible promissory note with GEL Properties LLC ("GEL") for $50,000. The note bears interest at 8% and matures on August 11, 2014. GEL has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 55% of the average lowest three closing bid prices during the ten trading days prior to the conversion date. During the six months ended June 30, 2014, the Company issued 1,320,244 shares of common stock for the conversion of GEL Note in the amount of $13,000.
	m. On November 11, 2013, the Company entered into a convertible promissory note with LG Capital Funding LLC (the "First LG Note") for $50,000. The note bears interest at 8% and matures on August 11, 2014. LG has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 55% of the average lowest three closing bid prices during the ten trading days prior to the conversion date. During the six months ended June 30, 2014, the Company issued 941,106 shares of common stock for the conversion of LG Note in the amount of $9,500.
	n. On March 6, 2014, the Company entered into a convertible promissory note with LG Capital Funding LLC (the "Second LG" Note) for $37,000. The note bears interest at 8% and matures on March 6, 2015. LG has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the average lowest three trading prices during the fifteen trading days prior to the conversion date.
	o. On May 23, 2014, the Company entered into a convertible promissory note with LG Capital Funding LLC (the "First LG Backend" Note) for $50,000. The note bears interest at 8% and matures on November 11, 2014. LG has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 55% of the average lowest three trading prices during the fifteen trading days prior to the conversion date.
	p. On January 23, 2014, the Company entered into a convertible promissory note with Virtual Technology Group LLC ("VTG") for $1,500,000. The note bears no interest and matures on January 23, 2017. VTG has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 100% of the average of the closing bid prices for the seven trading days prior to the conversion date when the Company’s shares are traded in the OTCQB or during the ten trading days prior to the conversion date when the Company’s shares are traded in other exchange.
	q. On January 23, 2014, the Company entered into a convertible promissory note with Gold Globe Investments Limited for $2,800,000. The note bears no interest and matures on January 23, 2017. GGIL has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 100% of the average of the lowest three trading prices during the seven trading days prior to the conversion date when the Company’s shares are traded in the OTCQB or during the ten trading days prior to the conversion date when the Company’s shares are traded in other exchange.
	r. On April 15, 2014, the Company entered into a convertible promissory note with Vista Capital Investments, LLC ("Vista") for $250,000. The note has an original issue discount of $25,000. The note bears interest at 12% and matures 2 years from the date of each payment of the principal from Vista. In the event that the note remains unpaid at maturity date, the outstanding balance shall immediately increase to 120% of the outstanding balance. Vista has the right to convert the outstanding balance into the Company’s common stock at a rate equal to the lesser of $0.008 or 60% of the lowest trade occurring during the twenty-five consecutive trading days preceding the conversion date. $25,000 was received and recorded on April 23, 2014.
s. On April 25, 2012, the Company entered into a promissory note with Rousay Holdings Ltd. (“Rousay”) for $10,000,000 (“Original Rousay Note”). During year 2012, $2 million of the promissory note had been funded and $710,000 has been repaid. On October 8, 2012, the Company issued a new promissory note to Rousay to replace the Original Rousay Note, where the face of the note is $1,290,000. The new note was due on April 26, 2013 with an interest rate of 20% per annum. On the event of default, interest rate increases to 25% per annum. On April 26, 2013, Rousay has an option of receiving an amount of restricted common stock of the Company equal to 10% of the then outstanding and issued common stock of the Company in lieu of payment of principal and interest. The note was acquired by Tarpon on January 27, 2014. See Note 3.
t. On February 3, 2014, the Company entered into a convertible promissory note with Tarpon Bay Partners, LLC (“Tarpon”) in the amount of $25,000. The promissory note was issued in terms of a court granted and approved settlement agreement with Tarpon on January 27, 2014. See Note 3. The note bears interest at 10% and matures on October 2, 2014. Tarpon has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the lowest closing bid price in the 30 trading days prior to the conversion date, or $0.031, whichever is lesser. For interest that accrues pursuant to this note, the conversion price shall be at $0.001 regardless of the trading price. During the six months ended June 30, 2014, the Company issued 508,417 shares of common stock for the conversion of Tarpon Note in the amount of $11,950.
u. On February 3, 2014, the Company entered into a convertible promissory note with ASC Recap LLC (“ASC”) in the amount of $132,000. The promissory note was issued in terms of a court granted and approved settlement agreement with Tarpon on January 27, 2014. See Note 3. The note bears interest at 10% and matures on August 3, 2014. ASC has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the lowest closing bid price in the 20 trading days prior to the conversion date. For interest that accrues pursuant to this note, the conversion price shall be at $0.001 regardless of the trading price. The conversion price should also be adjusted if the Company issued any shares, prior to the conversion of the note, at a price lower than the conversion price.
Due to the conversion feature of JSJ, Asher, KBM, GEL, LG, VTG, Vista, Tarpon, ASC and GGIL notes, the actual number of shares of common stock that would be required if a conversion of the note was made through the issuance of common stock cannot be predicted, and the Company could be required to issue an amount of shares that may cause it to exceed its authorized common share amount. As a result, the conversion feature requires derivative accounting treatment and has been bifurcated from the note and is “marked to market” each reporting period through the statements of operations.
The conversion feature of the convertible notes issued during the six months ended June 30, 2014 was valued at $4,884,579 on the issuance date. As a result, these notes were fully discounted and the fair value of the conversion feature in excess of the principal amount of the note of $1,795,095 was expensed immediately as additional interest expense.
Loans from shareholders
On September 5, 2008, Elmside Pty Ltd, a company related to a former director, agreed to an interest free loan of $55,991 to the Company on an as-needed basis to fund the business operations and expenses of the Company until December 9, 2011, the due date of the loan. The note is in default.
During the six months ended June 30, 2014, the Company received $2,500 from its officer to open a new bank account.

DERIVATIVE_LIABILITIES_NOTE_CO

DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE	6 Months Ended
	Jun. 30, 2014
Derivative Liabilities - Note Conversion Feature	'
NOTE 6 - DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE	'
	Due to the conversion features contained in the convertible notes issued, the actual number of shares of common stock that would be required if a conversion of the note as further described in Note 5 was made through the issuance of the Company’s common stock cannot be predicted, and the Company could be required to issue an amount of shares that may cause it to exceed its authorized share amount. As a result, the conversion feature requires derivative accounting treatment and will be bifurcated from the note and “marked to market” each reporting period through the income statement. The fair value of the conversion future of these notes was recognized as a derivative liability instrument and will be measured at fair value at each reporting period.
	The Company remeasured the fair value of the instrument as of June 30, 2014, and recorded an unrealized gain of $88,093 for the six months ended June 30, 2014. The Company determined the fair values of these liabilities using a Black-Scholes valuation model with the following assumptions:
		December 31,			Various Issuance Dates in 2014			June 30,
		2013						2014
	Stock price on measurement date	$	0.5		$	1.05 ~ $0.012		$	0.012
	Exercise price	$	0.21~$0.29		$	0.005~$0.59		$	0.0048~$0.012
	Discount rate		0.1	%		0.77%~0.07	%		0.07	%
	Expected volatility		238	%		237	%		239	%
	Expected dividend yield		0	%		0	%		0	%
	The following table provides a summary of the changes in fair value of the derivative financial instruments measured at fair value on a recurring basis using significant unobservable inputs:
	Fair value at December 31, 2013	$	439,424
	Fair value of new financial derivatives		4,884,579
	Reclassification to equity		(395,789	)
	Change in fair value of derivative liabilities		(88,093	)
	Fair value at June 30, 2014	$	4,840,121

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2014
Commitments And Contingencies	'
NOTE 7 - COMMITMENTS AND CONTINGENCIES	'
	Legal Proceedings
	From time to time, we may be party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not involved currently in legal proceedings other than those detailed below that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future.
	Commitments and Contingencies
	In October 2011, the Company entered into an agreement with consultants to provide services relating to the development of an online gaming site. In return for such services, the Company paid the consultants $20,000 per month. During the six months ended June 30, 2014, the Company settled a $63,000 payable to the consultant by issuing 2,051,032 shares. The shares were valued at $66,782 based on the fair value on the issuance date and the Company recorded a loss on settlement of $3,782. On January 27, 2014, Tarpon acquired $478,000 of the consultant’s claim against the Company. See Note 3. As of June 30, 2014, the payable to the consultants was $440,964.
	On July 1, 2013, the Company entered into a lease agreement for office space in Australia. The agreement terminates on December 31, 2014 with an option to renew for another year. Rent is $30,000 per year and the Company paid a $7,535 security deposit.
	On March 5, 2014, the Company entered into consulting services agreements with Neil Cherry, Altaire Inc, Andriy Levytsky to assist in SIMTV racing platform development. Pursuant to the agreement, the Company shall issue Neil Cherry 7,500 shares of its common stock upon the completion of the 30-day plan to have a demonstration system of SIMTV, 100,000 shares of its common stock to Altaire Inc. and 12,500 shares to Andriy Levytsky, respectively, upon the completion of the 90-day plan, and additional 12,500 shares to Andriy Levytsky when the Company signs its first license agreement for SIMTV system.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2014
Related Party Transactions	'
NOTE 8 - RELATED PARTY TRANSACTIONS	'
	As of June 30, 2014 and December 31, 2013, loans from Elmside, a shareholder, were $55,991. The loans are currently in default.
	As of June 30, 2014 and December 31, 2013, the Company had accounts payable of $893,602 and $709,984, respectively, to its chief executive officer and a company owned by the chief executive officer for reimbursement of expense, compensation, and liabilities assumed from Splitrock.
	As of June 30, 2014 and December 31, 2013, the Company had accounts payable of $40,500 and $22,500 to Jay Goodman, son of the Company’s chief executive officer, for assisting the Company with data segmentation, financial and statistical services.

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2014
Equity	'
NOTE 9 - EQUITY	'
	On April 16, 2014, the Company’s Board of Directors approved a reverse split of the Company’s authorized, issued and outstanding shares of common stock, par value $0.001, at a ratio of 10:1, such that every 10 shares of common stock becomes 1 share of common stock, reducing the number of authorized shares of common stock to 112,000,000 (“Reverse Stock Split”). The Company filed a certificate of amendment to affect the Reverse Stock Split of ten-for-one on May 2, 2014. All share number or per share information presented gives effect to the Reverse Stock Split.
	Preferred Stock – Series A
	On May 3, 2012, the Company authorized the creation of 300,000,000 shares of Series A preferred stock. Prior to the Reverse Stock Split, the Series A Preferred stock are convertible at a rate of 100 common stock for each Series A Preferred stock, and has voting right of 100:1 with common stock. After the Reverse Stock Split, the Series A Preferred stock is convertible at a rate of 0.1 common stock for each Series A Preferred stock.
	Preferred Stock – Series B
	On July 1, 2012, the Company authorized the creation of 100,000,000 shares of Series B preferred stock. One share of Series B preferred stock was convertible to one share of the Company’s common stock and has voting rights of 1,000:1 with common stock. On September 24, 2012, the authorized Series B Preferred Stock was increased from 100,000,000 to 280,000,000. After the Reverse Stock Split, the Series B Preferred stock is convertible at a rate of 0.001 common stock for each Series B Preferred stock.
	On July 3, 2012, the Company entered into an agreement with Maxwell Newbould to acquire certain assets and intellectual property related to Penny Auction Technology, in exchange for 88,000,000 shares of the Company’s Series B preferred stock. The shares were issued to Gold Globe Investments acting as an escrow agent. The Series B preferred shares are to be held by Gold Globe Investments until such time as the Company concludes its due diligence. Gold Globe Investments holds the voting rights to these shares whilst the due diligence is conducted. On completion of the due diligence to the satisfaction of the Company, Maxwell Newbould will be granted a seat on the Board of Directors of the Company and an additional 20,000,000 Series B Preferred Shares. The Company has extended the due diligence period. The 88,000,000 shares of Series B Preferred stock issued had been recorded at par value of $88,000 with a subscription receivable at the same amount.
	On July 14, 2013, the Company entered into a 12-month consultancy agreement with Virtual Technology Group, LLC ("Virtual Technology") to assist the Company in developing marketing and supporting the technology of virtual online horse racing products and to provide the Company the exclusive use right to certain website domains. In consideration for such services and domains, the Company issued 30,000,000 Series B Preferred shares to Virtual Technology. The 30,000,000 Series B Preferred stock have been recorded at their estimated market value of $42,000 with a prepaid expense at the same amount. At June 30, 2014, $12,000 of the prepaid expense has not been amortized.
	Preferred Stock – Series C
	On June 20, 2014, the Company authorized the creation of 10,000,000 shares of Series C preferred stock. One share of Series C preferred stock was convertible to one hundred shares of the Company’s common stock and has voting rights of 1:1 with common stock.
	Common Stock
	On January 1, 2014, the Company issued 51,032 shares of its common stock to settle accounts payable of $23,000 to Portspot Consultants Limited ("Portspot"). These shares were valued at $26,782 based on the market price on the issuance date. The Company recorded a loss of $3,782 related to the settlement.
	On January 20, 2014, the Company issued 100,000 shares of its common stock to Gregory Caputo and Donald Radcliffe for consulting services over the prior six months. These shares were valued at $61,000 based on the market price on the issuance date.
	On January 25, 2014, the Company entered into an acquisition agreement with BetTek Inc. to acquire intellectual property and know-how to be utilized to build a virtual online horse racing product and other allied products. The Company issued 106,650 shares of its common stock for the acquisition. The closing of this transaction is contingent upon the Company’s satisfaction of the product and the product is currently under construction. The Company valued these shares based on the market price on the issuance date and recorded $73,589 subscription receivable for the shares issued.
	On May 12, 2014, the Company issued 1,000,000 shares of its common stock to Gregory Caputo for a six-month consulting agreement. These shares were valued at $100,000 based on the market price on the issuance date.
	On May 15, 2014, the Company issued 500,000 shares of its common stock to Harllon Holdings LLC for consulting services over the prior one month. These shares were valued at $25,250 based on the market price on the issuance date.
	On June 15, 2014, the Company issued 500,000 shares of its common stock to JFEN Holdings LLC for consulting services. These shares were valued at $8,750 based on the market price on the issuance date.
	On June 24, 2014, the Company issued 2,500,000 shares of its common stock to settle accounts payable of $50,000 to Mr. Goodman, 2,000,000 shares of its common stock to settle accounts payable of $40,000 to Pancar Capital LLC, and 2,000,000 shares of its common stock to settle accounts payable of $40,000 to Portspot.
	On June 24, 2014, the Company issued 1,000,000 shares of its common stock to BetTek Inc. for consulting services by Altaire Inc. These shares were valued at $15,000 based on the market price on the issuance date.
	On June 24, 2014, the Company issued 3,500,000 shares of common stock valued at $52,500, based on the stock price of grant date, to its six consultants for earlier services provided.
	On June 24, 2014, the Company issued 2,000,000 shares of its common stock valued at $30,000, based on the stock price of grant date, to its directors for earlier services provided.
	During the six months ended June 30, 2014, the Company issued 8,715,595 shares of common stock for the conversion of notes (see Note 5) and 11,364 shares of common stock, valued at $375 for legal services received for the note conversions.
	During the six months ended June 30, 2014, the Company issued Tarpon 3,331,000 shares of its common stock according to the settlement agreement discussed in Note 3. The shares were valued at $454,500 based on the market price on the issuance date. $205,803 net proceeds from the sale were used to pay the original creditors of the claims Tarpon acquired. The remaining $258,697 was recorded as loss on settlement.
	During the six months ended June 30, 2014, the Company issued 5,000,000 shares for cash of $150,000.

CONCENTRATION

CONCENTRATION	6 Months Ended
	Jun. 30, 2014
Concentration	'
NOTE 10 - CONCENTRATION	'
	All of the Company’s revenues for the six months ended June 30, 2014 were from one customer. As of June 30, 2014, the amount due from this customer was $39,500.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2014
Subsequent Events	'
NOTE 11 - SUBSEQUENT EVENTS	'
	On June 26, 2014, the Company entered into a convertible promissory note with KBM Worldwide Inc. (the "Third KBM Note”) for $32,500. The principal was received and recorded on July 2, 2014. The note bears interest at 8% and matures on March 30, 2015. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. KBM has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the average lowest three closing bid prices during the ten trading days prior to the conversion date.
	On July 5, 2014, the Company issued 50,000,000 Series B Preferred stock to VTG as compensation for services provided in terms of the consultancy agreement dated July 14, 2013
	During July and August, 2014, the Company issued 10,087,306 shares of common stock for the conversion of the GEL note in the amount of $22,000. The remaining principal of $15,000 has not been converted.
	During July and August 2014, the Company issued 10,503,839 shares of common stock for the conversion of the Fourth JSJ Note in the amount of $19,206. The remaining principal of $30,794 has not been converted.
	During July and August 2014, the Company issued 10,684,664 shares of common stock for the conversion of the Tenth Asher Note in the amount of $28,770 and 4,531,579 shares of common stock for the conversion of the Eleventh Asher Note.
	During July and August 2014, the Company issued 3,515,240 shares of common stock for the conversion of the First LG Note in the amount of $11,500. The remaining principal of $21,000 has not been converted.
	During the months of July and August 2014, Gold Globe Investments Limited converted $225,000 of convertible notes to 18,426,822 shares of common stock and Virtual Technology Group converted $240,000 of convertible notes to 34,871,601 shares of common stock.
	On July 7, 2014, the Company entered into an agreement with South Street Media, Inc. ("South Street") to provide investor relations services to the Company for six months. In consideration for such services, the Company agreed to issue 1,000,000 shares. As of the filing date, none of these shares had been issued.
	On July 7, 2014, the Company entered into an agreement with South Ludlow Capital, Inc. (“Ludlow”) to provide investor relations services to the Company for six months. In consideration for such services, the Company agreed to issue 1,000,000 shares. As of the filing date, none of these shares had been issued.
	On August 12, 2014, the Company entered into a subscription agreement with Longma Holdings Limited, in which the Company sold an aggregate of 10,000,000 shares of common stock at $0.03 per share, for aggregate proceeds of $300,000 within which, $150,000 was received prior to June 30, 2014.
	On August 12, 2014, the Company entered into a convertible promissory note with KBM Worldwide Inc. (the "fourth KBM" note) for $32,500. The principal was not received as of the filing date. The note bears interest at 8% and matures on May 14, 2015. In the event that the note remains unpaid at that date, the Company will pay default interest of 22%. KBM has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the average lowest three closing bid prices during the ten trading days prior to the conversion date.
	During July 2014, the Company issued Tarpon 4,697,377 shares of common stock according to the settlement agreement discussed in Note 3 to the consolidated financial statements.

BASIS_OF_PRESENTATION_Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2014
Basis Of Presentation Policies	'
Use of Estimates	'
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.
Cash and Cash Equivalent	'
	The Company considers all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation (“FDIC”).
Intangible Assets	'
	Intangible assets consist of expenditures for domain names and certain intellectual properties acquired for an online horse racing product the Company is developing. The intangible assets are recorded at cost and amortized over estimated useful life of 3 years.
Revenues	'
	Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable.
Subsequent Events	'
	Elray evaluated subsequent events through the date these financial statements were issued for disclosure purposes.
Recent Accounting Pronouncements	'
	In June 2014, the FASB issued ASU 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. ASU 2014-10 eliminates the distinction of a development stage entity and certain related disclosure requirements, including the elimination of inception-to-date information on the statements of operations, cash flows and stockholders’ equity. The amendments in ASU 2014-10 will be effective prospectively for annual reporting periods beginning after December 15, 2014, and interim periods within those annual periods, however early adoption is permitted. The Company evaluated and adopted ASU 2014-10 for the reporting period ended June 30, 2014.
	Elray’s management does not believe that any other recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2014
Intangible Assets Tables	'
Intangible assets	'
	Intangible assets consisted of following at June 30, 2014 and December 31, 2013:
		June 30,			December 31,
		2014			2013
	Intellectual properties	$	3,467,742		$	-
	Accumulated amortization		(481,630	)		-
	Total	$	2,968,112		$	-

NOTES_PAYABLE_Tables

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2014
Notes Payable Tables	'
Notes Payable	'
	Notes payable at June 30, 2014 and December 31, 2013 consisted of the following:
		Final Maturity		Interest Rate				June 30,				December 31,
								2014				2013
	C. Smith	9/18/11			8	%		$	-			$	14,850
	D. Radcliffe	9/18/11			8	%			-				49,500
	L. Kaswell	9/18/11			8	%			-				99,000
	M. Trokel	9/18/11			8	%			-				49,500
	Radcliffe Investment Partners I	9/18/11			8	%			-				34,650
	Morchester International Limited	7/14/12			15	%			35,429				35,429
	Morchester International Limited	7/14/12			8	%			10,000				10,000
	Total							$	45,429			$	292,929
Convertible Notes Payable	'
	Convertible notes payable, net of discounts, at June 30, 2014 and December 31, 2013 consisted of the following:
		30-Jun-14												31-Dec-13
		Principal				Unamortized discount				Principal, net of discounts				Principal		Unamortized discount			Principal, net of discounts
	a. Alan Binder	$	-			$	-			$	-			$	25,000	$	-		$	25,000
	b. JSJ Investments, Inc.		10,670				-				10,670				38,600		-			38,600
	c. JSJ Investments, Inc.		75,000				(48,146	)			26,854				-		-			-
	d. Asher Enterprises, Inc.		-				-				-				37,500		(15,492	)		22,008
	e. Asher Enterprises, Inc.		-				-				-				37,500		(20,989	)		16,511
	f. Asher Enterprises, Inc.		-				-				-				27,500		(21,689	)		5,811
	g. Asher Enterprises, Inc.		28,770				(9,048	)			33,452				42,500		(38,298	)		4,202
	h. Asher Enterprises, Inc.		32,500				(13,382	)			19,118				-		-			-
	i. Asher Enterprises, Inc.		32,500				(17,574	)			14,926				-		-			-
	j. KBM Worldwide, Inc.		32,500				(21,982	)			10,518				-		-			-
	k. KBM Worldwide, Inc.		37,500				(31,847	)			5,653				-		-			-
	l. GEL Properties, LLC		37,000				(7,955	)			29,045				50,000		(42,235	)		7,765
	m. LG Capital Funding, LLC		40,500				(7,922	)			32,578				50,000		(42,075	)		7,925
	n. LG Capital Funding, LLC		37,000				(25,591	)			11,409				-		-			-
	o. LG Capital Funding, LLC		50,000				(38,953	)			11,047				-		-			-
	p. Virtual Technology Group, Ltd		1,500,000				(1,035,289	)			464,711				-		-			-
	q. Gold Globe Investments Ltd		2,800,000				(1,932,541	)			867,459				-		-			-
	r. Vista Capital Investments, LLC.		25,000				(22,671	)			2,329				-		-			-
	s. Rousay Holdings Ltd.		-				-				-				1,290,000		-			1,290,000
	t. Tarpon Bay Partners, LLC.		13,050				(6,438	)			6,612				-		-			-
	u. ASC Recap		132,000				(24,795	)			107,205				-		-			-
	Total	$	4,883,990			$	(3,244,134	)		$	1,639,856			$	1,598,600	$	(180,778	)	$	1,417,822
Changes of debt discount	'
	The table below presents the changes of debt discount during the six months ended June 30, 2014:
	31-Dec-13	$	180,778
	Additions		3,946,742
	Amortization		(883,386	)
	30-Jun-14	$	3,244,134

DERIVATIVE_LIABILITIES_NOTE_CO1

DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE (Tables)	6 Months Ended
	Jun. 30, 2014
Derivative Liabilities - Note Conversion Feature Tables	'
Fair Value of the Liabilites using a Black-Scholes Valuation method	'
	The Company determined the fair values of these liabilities using a Black-Scholes valuation model with the following assumptions:
		December 31,			Various Issuance Dates in 2014			June 30,
		2013						2014
	Stock price on measurement date	$	0.5		$	1.05 ~ $0.012		$	0.012
	Exercise price	$	0.21~$0.29		$	0.005~$0.59		$	0.0048~$0.012
	Discount rate		0.1	%		0.77%~0.07	%		0.07	%
	Expected volatility		238	%		237	%		239	%
	Expected dividend yield		0	%		0	%		0	%
Changes in fair value of the derivative financial instruments measured at fair value on a recurring basis	'
	The following table provides a summary of the changes in fair value of the derivative financial instruments measured at fair value on a recurring basis using significant unobservable inputs:
	Fair value at December 31, 2013	$	439,424
	Fair value of new financial derivatives		4,884,579
	Reclassification to equity		(395,789	)
	Change in fair value of derivative liabilities		(88,093	)
	Fair value at June 30, 2014	$	4,840,121

GOING_CONCERN_Details_Narrativ

GOING CONCERN (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Going Concern Details Narrative	'	'	'	'	'
Net loss	$1,510,381	$828,594	$4,691,682	$1,306,057	'
Cash for operating activities	'	'	358,934	159,898	'
Accumlated deficit	17,633,716	'	17,633,716	'	12,942,034
Working Capital Deficiency	9,576,327	'	9,576,327	'	'
Stockholders' deficit	$7,917,177	'	$7,917,177	'	'

SETTLEMENT_PAYABLE_Details_Nar

SETTLEMENT PAYABLE (Details Narrative) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014
			Tarpon [Member]
Common shares issued	35,721,302	3,405,661	3,331,000
Proceeds sale amount	'	'	$205,804
Unalloted amount among the claim holders	'	'	8,506
Amount retain for charge	'	'	197,298
Settlement payable	$2,450,410	'	'

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Intangible Assets Details	'	'
Intellectual properties	$3,467,742	'
Accumulated amortization	-481,630	'
Total	$2,986,112	'

NOTES_PAYABLE_Details

NOTES PAYABLE (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Notes Payable	$45,429	$292,929
C. Smith	'	'
Final Maturity	18-Sep-11	'
Interest Rate	8.00%	'
Notes Payable	'	14,850
D. Radcliffe	'	'
Final Maturity	18-Sep-11	'
Interest Rate	8.00%	'
Notes Payable	'	49,500
L. Kaswell	'	'
Final Maturity	18-Sep-11	'
Interest Rate	8.00%	'
Notes Payable	'	99,000
M. Trokel	'	'
Final Maturity	18-Sep-11	'
Interest Rate	8.00%	'
Notes Payable	'	49,500
Radcliffe Investment Partners I	'	'
Final Maturity	18-Sep-11	'
Interest Rate	8.00%	'
Notes Payable	'	34,650
Morchester International Limited	'	'
Final Maturity	14-Jul-12	'
Interest Rate	15.00%	'
Notes Payable	35,429	35,429
Morchester International One Limited	'	'
Final Maturity	14-Jul-12	'
Interest Rate	8.00%	'
Notes Payable	$10,000	$10,000

NOTES_PAYABLE_Details_1

NOTES PAYABLE (Details 1) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Notes Payable. gross	$4,883,990	$1,598,600
Unamortized Discount	-3,244,134	-180,778
Principal, net of Discounts	1,639,856	1,417,822
Alan Binder	'	'
Unamortized Discount	'	'
Principal, net of Discounts	'	25,000
JSJ Investments, Inc.	'	'
Unamortized Discount	'	'
Principal, net of Discounts	10,670	38,600
JSJ Investments, One Inc.	'	'
Notes Payable. gross	75,000	'
Unamortized Discount	-48,146	'
Principal, net of Discounts	26,854	'
Asher Enterprises, Inc.	'	'
Notes Payable. gross	'	37,500
Unamortized Discount	'	-15,492
Principal, net of Discounts	'	22,008
Asher Enterprises, One Inc.	'	'
Notes Payable. gross	'	37,500
Unamortized Discount	'	-20,989
Principal, net of Discounts	'	16,511
Asher Enterprises, Two Inc.	'	'
Notes Payable. gross	'	27,500
Unamortized Discount	'	-21,689
Principal, net of Discounts	'	5,811
Asher Enterprises, Three Inc.	'	'
Notes Payable. gross	28,770	42,500
Unamortized Discount	-9,048	-38,298
Principal, net of Discounts	33,452	4,202
Asher Enterprises, Four Inc.	'	'
Notes Payable. gross	32,500	'
Unamortized Discount	-13,382	'
Principal, net of Discounts	19,118	'
Asher Enterprises, Five Inc.	'	'
Notes Payable. gross	32,500	'
Unamortized Discount	-17,574	'
Principal, net of Discounts	14,926	'
KBM Worldwide, Inc.	'	'
Notes Payable. gross	32,500	'
Unamortized Discount	-21,982	'
Principal, net of Discounts	10,518	'
KBM Worldwide, One Inc.	'	'
Notes Payable. gross	37,500	'
Unamortized Discount	-31,847	'
Principal, net of Discounts	5,653	'
GEL Properties, LLC	'	'
Notes Payable. gross	37,000	50,000
Unamortized Discount	-7,955	-42,235
Principal, net of Discounts	29,045	7,765
LG Capital Funding, LLC	'	'
Notes Payable. gross	40,500	50,000
Unamortized Discount	-7,922	-42,075
Principal, net of Discounts	32,578	7,925
LG Capital Funding, One LLC	'	'
Notes Payable. gross	37,000	'
Unamortized Discount	-25,591	'
Principal, net of Discounts	11,409	'
LG Capital Funding, Two LLC	'	'
Notes Payable. gross	50,000	'
Unamortized Discount	-38,953	'
Principal, net of Discounts	11,047	'
Virtual Technology Group, Ltd [Member]	'	'
Notes Payable. gross	1,500,000	'
Unamortized Discount	-1,035,289	'
Principal, net of Discounts	464,711	'
Gold Globe Investments Ltd [Member]	'	'
Notes Payable. gross	2,800,000	'
Unamortized Discount	-1,932,541	'
Principal, net of Discounts	867,459	'
Vista Capital Investments, LLC.	'	'
Notes Payable. gross	25,000	'
Unamortized Discount	-22,671	'
Principal, net of Discounts	2,329	'
Rousay Holdings Ltd.	'	'
Unamortized Discount	'	'
Principal, net of Discounts	'	1,290,000
Tarpon Bay Partners, LLC.	'	'
Notes Payable. gross	13,050	'
Unamortized Discount	-6,438	'
Principal, net of Discounts	6,612	'
ASC Recap [Member]	'	'
Notes Payable. gross	132,000	'
Unamortized Discount	-24,795	'
Principal, net of Discounts	107,205	'
GoldGlobe [Member]	'	'
Unamortized Discount	'	'
Principal, net of Discounts	'	'

NOTES_PAYABLE_Details_2

NOTES PAYABLE (Details 2) (USD $)	6 Months Ended
	Jun. 30, 2014
Notes Payable Details 2	'
Beginning Balance	$180,778
Addition	3,946,742
Amortization	-883,386
Unamortized Discount, Ending Balance	$3,244,134

NOTES_PAYABLE_Details_Narrativ

NOTES PAYABLE (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Common Stock; Shares Issued	35,721,302	3,405,661
Convertible notes issued	$4,884,579	'
Additional interest expense	1,795,095	'
Amount received from officer to open bank account	2,500	'
Tarpon [Member]	'	'
Common Stock; Shares Issued	3,331,000	'
Principal note amount	247,500	'
JSJ Investments, Inc.	'	'
Amount converted of its third note to shares of common stock	27,930	'
Shares of common stock converted	147,000	'
SeventhAsher Note	'	'
Common Stock; Shares Issued	163,884	'
Principal note amount	37,500	'
Accrued interest	1,500	'
Eighth Asher Note	'	'
Common Stock; Shares Issued	370,940	'
Principal note amount	37,500	'
Accrued interest	1,500	'
Ninth Asher Note	'	'
Common Stock; Shares Issued	2,583,210	'
Principal note amount	27,500	'
Accrued interest	1,100	'
Tenth Asher Note	'	'
Common Stock; Shares Issued	2,692,157	'
Accrued interest	13,730	'
GEL Properties, LLC	'	'
Common Stock; Shares Issued	1,320,244	'
Accrued interest	13,000	'
LG Capital Funding, LLC	'	'
Common Stock; Shares Issued	941,106	'
Accrued interest	9,500	'
Tarpon Bay Partners, LLC.	'	'
Common Stock; Shares Issued	508,417	'
Accrued interest	$11,950	'

DERIVATIVE_LIABILITIES_Details

DERIVATIVE LIABILITIES (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Stock price on measurement date	$0.01	$0.50
Discount rate	0.07%	0.10%
Expected volatility	239.00%	238.00%
Expected dividend yield	0.00%	0.00%
Minimum [Member]	'	'
Exercise Price	$0.00	$0.21
Maximum [Member]	'	'
Exercise Price	$0.01	$0.29
Various Issuance Dates	'	'
Expected volatility	237.00%	'
Expected dividend yield	0.00%	'
Various Issuance Dates | Minimum [Member]	'	'
Stock price on measurement date	$1.05	'
Exercise Price	$0.01	'
Discount rate	0.77%	'
Various Issuance Dates | Maximum [Member]	'	'
Stock price on measurement date	$0.01	'
Exercise Price	$0.59	'
Discount rate	0.07%	'

DERIVATIVE_LIABILITIES_Details1

DERIVATIVE LIABILITIES (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2014
Derivative Liabilities Details 1	'
Fair value, Beginning Balance	$439,424
Fair value of new financial derivatives	4,884,579
Reclassification to equity	-395,789
Change in fair value of derivative liabilities	-88,093
Fair value, Ending Balance	$4,840,121

DERIVATIVE_LIABILITIES_Details2

DERIVATIVE LIABILITIES (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Derivative Liabilities Details Narrative	'	'
Unrealized gain (loss) on derivative instrument	$88,093	($21,485)

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014
Commitments And Contingencies Details Narrative	'
Payable to consultants	$63,000
Payable to consultants, shares issue	2,051,032
Payable to consultants, balance	$440,964

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Related Party Transactions Details Narrative	'	'
Loans from shareholders	$55,991	$55,991
Accounts payable - related parties	893,602	709,984
Accounts Payable to Jay Goodman	$40,500	$22,500

EQUITY_Details_Narrative

EQUITY (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Common stock for the conversion of notes	8,715,595	'
Common stock shares	11,364	'
Legal services received	$375	'
Common stock shares issued	5,000,000	'
Common stock issued for cash	$150,000	'
Tarpon [Member]	'	'
Common stock shares issued	3,331,000	'

CONCENTRATION_Details_Narrativ

CONCENTRATION (Details Narrative) (USD $)	Jun. 30, 2014
Concentration Details Narrative	'
Amount due from customer	$39,500