Elray Resources (ELRA) 10-K 2 Apr 15 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Mar. 23, 2015	Jun. 30, 2014
Document And Entity Information
Entity Registrant Name	ELRAY RESOURCES, INC.
Entity Central Index Key	1402371
Document Type	10-K
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
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		1,457,062,178
Entity Public Float			$2,215,071
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Dec. 31, 2014	Dec. 31, 2013
Current assets:
Cash	$27,447	$9,097
Accounts receivable	168,128
Other receivables	89,736
Prepaid expenses	9,952	41,452
Total current assets	295,263	50,549
Rent deposit	7,535	7,535
Intangible assets	2,408,156
Total assets	2,710,954	58,084
Current liabilities:
Accounts payable and accrued liabilities	1,185,763	1,989,369
Accounts payable - related parties	1,065,882	732,484
Advances from shareholders	58,491	55,991
Settlement payable	2,194,000
Notes payable	45,429	292,929
Convertible notes payable, net of discounts	283,980	1,417,822
Derivative liabilities - note conversion feature	3,960,098	439,424
Total current liabilities	8,793,643	4,928,019
Long - term convertible notes payable	1,395,947
Total liabilities	10,189,590	4,928,019
Shareholders' deficit:
Series A convertible preferred stock, par value $0.001, 300,000,000 shares authorized, 0 shares issued and outstanding
Series B convertible preferred stock, par value $0.001, 280,000,000 shares authorized, 280,000,000 and 118,000,000 shares issued and outstanding, respectively	280,000	118,000
Series C preferred stock, par value $0.001, 10,000,000 shares authorized, 2,083,333 and 0 shares issued and outstanding, respectively	2,083
Common stock, par value $0.001, 5,000,000,000 shares authorized, 82,293,182 and 113,522 shares issued and outstanding, respectively	82,293	114
Additional paid-in capital	15,609,309	8,041,985
Subscription receivable	-163,672	-88,000
Accumulated deficit	-23,288,649	-12,942,034
Total shareholders' deficit	-7,478,636	-4,869,935
Total liabilities and shareholders' deficit	$2,710,954	$58,084

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Consolidated Balance Sheets Parenthetical
Series A convertible preferred stock; Par Value	$0.00	$0.00
Series A convertible preferred stock; Shares Authorized	300,000,000	300,000,000
Series A convertible preferred stock; Shares Issued	0	0
Series A convertible preferred stock; Shares Outstanding	0	0
Series B convertible preferred stock; Par Value	$0.00	$0.00
Series B convertible preferred stock; Shares Authorized	280,000,000	280,000,000
Series B convertible preferred stock; Shares Issued	280,000,000	118,000,000
Series B convertible preferred stock; Shares Outstanding	280,000,000	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	$2,083,333	$0
Series C preferred stock; Shares Outstanding	$2,083,333	$0
Common Stock; Par Value	$0.00	$0.00
Common Stock; Shares Authorized	5,000,000,000	5,000,000,000
Common Stock; Shares Issued	82,293,182	113,522
Common Stock; Shares Outstanding	82,293,182	113,522

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements Of Operations
Revenues	$229,628
Operating expenses:
General and administrative expenses	2,311,608	2,078,580
Depreciation and amortization	1,059,586
Total operating expenses	3,371,194	2,078,580
Loss from operations	-3,141,566	-2,078,580
Other expense:
Interest expense	-5,054,538	-880,912
Unrealized loss on derivative liability - note conversion feature	-1,439,211	-104,824
Loss on settlement of accounts payable	-711,300	-289,713
Total other income (expense)	-7,205,049	-1,275,449
Net loss	($10,346,615)	($3,354,029)
Net loss per common share - basic and diluted	($0.69)	($47.61)
Weighted average common shares outstanding - basic and diluted	15,020,553	70,451

Consolidated_Statement_of_Shar

Consolidated Statement of Shareholders' Deficit (USD $)	Series A Preferred Stock	Series B Preferred Stock	Series C Preferred Stock	Common Stock	Additional Paid-In Capital	Subscription Receivable	Accumulated Deficit	Total
Begninng balance, Amount at Dec. 31, 2012	$211,019	$88,000		$41	$6,478,329	($299,019)	($9,588,005)	($3,109,635)
Begninng balance, Shares at Dec. 31, 2012	211,018,516	88,000,000		41,078
Cancellation of shares previously issued for acquisition of GM, Amount	-211,019					211,019
Cancellation of shares previously issued for acquisition of GM, Shares	-211,018,516
Issuance of shares for acquisition of VTG technology, Amount		30,000			12,000			42,000
Issuance of shares for acquisition of VTG technology, Shares		30,000,000
Issuance of shares in consideration for consulting services, Amount				10	222,655			222,665
Issuance of shares in consideration for consulting services, Shares				9,187
Issuance of shares for convertible notes conversion, Amount				40	639,311			639,351
Issuance of shares for convertible notes conversion, Shares				40,282
Issuance of shares for settlement of debt, Amount				23	689,690			689,713
Issuance of shares for settlement of debt, Shares				22,978
Net loss							-3,354,029	-3,354,029
Ending balance, Amount at Dec. 31, 2013		118,000		114	8,041,985	-88,000	-12,942,034	-4,869,935
Ending balance, Shares at Dec. 31, 2013		118,000,000		113,522
Issuance of shares in consideration for consulting services, Amount		162,000		1,514	173,042			336,556
Issuance of shares in consideration for consulting services, Shares		162,000,000		1,514,090
Issuance of shares for convertible notes conversion, Amount				66,824	5,806,504			5,873,328
Issuance of shares for convertible notes conversion, Shares				66,823,712
Issuance of shares for settlement of debt, Amount				13,505	1,214,525			1,228,030
Issuance of shares for settlement of debt, Shares				13,504,969
Issuance of shares for acquisition of asset,Amount			2,083	4	73,585	-75,672
Issuance of shares for acquisition of asset, Shares			2,083,333	3,555
Issuance of common stock for cash, Amount				332	299,668			300,000
Issuance of common stock for cash, Shares				333,334
Net loss							-10,346,615	-10,346,615
Ending balance, Amount at Dec. 31, 2014		$280,000	$2,083	$82,293	$15,609,309	($163,672)	($23,288,649)	($7,478,636)
Ending balance, Shares at Dec. 31, 2014		280,000,000	2,083,333	82,293,182

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net loss	($10,346,615)	($3,354,029)
Adjustments to reconcile net loss to cash used in operations activities:
Stock-based compensation	368,056	207,665
Non-cash debt origination service fee	157,000
Depreciation and amortization	1,059,586
Amortization of debt discount	2,673,303	240,162
Non-cash interest expense related to conversion feature of notes payable	2,242,031	299,735
Unrealized loss on derivative liabilities-note conversion feature	1,439,211	104,824
Loss on settlement of accounts payable	711,300	289,713
Changes in operating assets and liabilities:
Accounts receivable	-168,128
Other receivable	-89,736
Prepaid expense		40,520
Accounts payable and accrued liabilities	476,444	1,318,402
Accounts payable - related parties	333,398	456,926
Net cash used in operating activities	-1,144,150	-396,082
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	835,000	412,500
Proceeds from long-term convertible notes payable	25,000
Proceeds from notes payable - related parties	2,500
Common stock issued for cash	300,000
Net cash provided by financing activities	1,162,500	412,500
Net increase in cash	18,350	8,883
Cash at beginning of year	9,097	214
Cash at end of year	27,447	9,097
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for taxes
Non-cash investing and financing activities:
Preferred stock issued for acquisition of assets	75,672	57,000
Common stock issued for conversion of debt	7,101,358	1,329,064
Debt discount-derivative liability on note conversion feature	3,641,684	132,500
Note issued to acquire intangible assets	$3,467,742

NATURE_OF_BUSINESS_AND_BASIS_O

NATURE OF BUSINESS AND BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 1 - NATURE OF BUSINESS AND BASIS OF PRESENTATION	Elray Resources, Inc. (“Elray” or the “Company”), a Nevada corporation, formed on December 13, 2006. Elray has been providing marketing and support for online gaming operations.
	The accompanying consolidated financial statements of Elray include the accounts of Elray and its wholly-owned subsidiary, Angkor Wat Minerals, Ltd. (“Angkor Wat”), and 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”). All intercompany balances have been eliminated.

GOING_CONCERN

GOING CONCERN	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 2 - GOING CONCERN	The accompanying 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 $10,346,615 and utilized cash for operating activities of $1,144,150 for the year ended December 31, 2014. The Company had a working capital deficit and stockholders’ deficit of $8,498,380 and $7,478,636, respectively, at December 31, 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.

SUMMARY_OF_ACCOUNTING_POLICIES

SUMMARY OF ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 3 - SUMMARY OF ACCOUNTING 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 Equivalents
	The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.
	Allowance for doubtful accounts
	The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. As of December 31, 2014 and 2013, there were no allowances for doubtful accounts.
	Long Lived Assets
	Long-lived assets to be held and used or disposed of other than by sale are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When required, impairment losses on assets to be held and used or disposed of other than by sale are recognized based on the fair value of the asset. Long-lived assets to be disposed of by sale are reported at the lower of its carrying amount or fair value less cost to sell.
	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 cost and amortized over its 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.
	Derivative Instruments
	Derivatives are measured at their fair value on the balance sheet. In determining the appropriate fair value, the Company uses the Black-Scholes-Merton option pricing model. Changes in fair value are recorded in the statement of operations.
	Fair Value of Financial Instruments
	The Company measures its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:
		•	Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;
		•	Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable, such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
		•	Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one more significant inputs or significant value drivers are unobservable.
	Our financial instruments include cash, accounts payable and accrued liabilities, notes payable, convertible notes payable, advances from shareholder, and derivative liabilities. The carrying values of the Company’s cash, accounts payable and accrued liabilities, notes payable, convertible notes payable and advances from shareholder approximate their fair value due to their short-term nature. The derivative liabilities are stated at their fair value as a level 3 measurement. The Company used a Black-Scholes model to determine the fair values of these derivative liabilities.
	Debt Discount
	Debt discount is amortized over the term of the related debt using the effective interest rate method.
	Stock-Based Compensation
	Stock-based compensation expense is recorded for stock and stock options awarded in return for services rendered. The expense is measured at the grant-date fair value of the award and recognized as compensation expense on a straight-line basis over the service period, which is typically the vesting period. The Company estimates forfeitures that it expects will occur and records expense based upon the number of awards expected to vest.
	Income Taxes
	Deferred income taxes reflect the net effect of (a) temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of operations because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry forward has been recognized, as it is not deemed likely to be realized.
	Loss Per Common Share
	Basic loss per common share has been calculated based on the weighted average number of shares of common stock outstanding during the period. During a loss period, the potentially dilutive securities have an anti-dilutive effect and are not included in the calculation of dilutive net loss per common share. As of December 31, 2014 and 2013, potentially dilutive securities include notes convertible to 734,240,926 and 47,274 shares of the Company’s common stock. As of December 31, 2014 and 2013, potentially dilutive securities also include preferred stock convertible to 6,400 and 1,000 shares of the Company’s common stock.
	Subsequent Events
	Elray evaluated subsequent events through the date these financial statements were issued for disclosure purposes.
	Recently Issued Accounting Standards
	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 as of June 30, 2014.
	In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently evaluating the effects of ASU 2014-15 on the consolidated financial statements.
	The Company does not believe that any 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

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
Note 4 - INTANGIBLE ASSETS	Intangible assets consisted of following at December 31, 2014 and 2013:
		31-Dec-14			31-Dec-13
	Intellectual properties	$	3,467,742		$	-
	Accumulated amortization		(1,059,586	)		-
	Total	$	2,408,156		$	-
	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.

SETTLEMENT_PAYABLE

SETTLEMENT PAYABLE	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
Note 5 - SETTLEMENT PAYABLE	On December 20, 2013, the Company entered into a settlement agreement with Tarpon Bay Partners LLC (“Tarpon”) whereby Tarpon acquired certain notes and accounts payable against the Company in the amount of $2,656,214. 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 a 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 year ended December 31, 2014, the Company issued Tarpon 13,286,601 common shares which have been sold entirely. Net proceeds from the sale amounted to $462,214, which was remitted to the original claim holders. As of December 31, 2014, the Company has a settlement payable of $2,194,000.

NOTES_PAYABLE

NOTES PAYABLE	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 6 - NOTES PAYABLE	Notes payable
	Notes payable at December 31, 2014 and 2013 consisted of the following:
		Final Maturity		Interest Rate				31-Dec-14				31-Dec-13
	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. As a result, principal of $247,500 and associated accrued interest acquired by Tarpon were reclassified to settlement payable.
	Convertible notes payable
	Convertible notes payable at December 31, 2014 and 2013 consisted of the following:
			Interest Rate				31-Dec-14				31-Dec-13
	Alan Binder			10	%		$	-			$	25,000
	Rousay Holdings Ltd.			20	%			-				1,290,000
	JSJ Investments, Inc.			10%~12	%			60,670				38,600
	Asher Enterprises, Inc.			8	%			-				145,000
	KBM Worldwide, Inc.			8	%			140,000				-
	GEL Properties, LLC			8	%			-				50,000
	LG Capital Funding, LLC			8	%			72,000				50,000
	Tarpon			10	%			30,475				-
	WHC Capital, LLC			12	%			75,000				-
	Beaufort Capital Partners, LLC			12	%			21,000				-
	Tangiers Investment Group, LLC			0%~10	%			133,000				-
	Darling Capital, LLC			8	%			25,000				-
	Auctus Private Equity Fund, LLC			8	%			40,000				-
	Subtotal							597,145				1,598,600
	Debt discount							(313,165	)			(180,778	)
	Total						$	283,980			$	1,417,822
	Alan Binder
	On December 9, 2011, as a result of the Splitrock transaction, the Company assumed a $25,000 convertible note. The note was acquired by Tarpon on January 27, 2014. See Note 5.
	Rousay Holdings Ltd.
	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.
	JSJ Investments, Inc.
	On January 19, 2012, the Company entered into an agreement with JSJ Investments, Inc (“JSJ”) in which JSJ agreed to loan the Company $25,000. The note was for one year and bears interest at a rate of 10% per annum. From July 19, 2012 to July 19, 2013, the note holder had the option to convert the note to common shares in the Company at a discount of 50% of the average of the preceding seven days closing price. On May 28, 2013, JSJ converted this note into 1,090 shares of common stock.
	On May 31, 2013, the Company entered into a convertible promissory note with JSJ for $50,000. The note matured on December 2, 2013. 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 year ended December 31, 2014, JSJ converted $27,930 of this note to 4,900 shares of common stock. There was principal of $10,670 which has not been converted.
	On August 21, 2014, the Company entered into a convertible promissory note with JSJ for $50,000 cash. The note matured on February 21, 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 60% of the average of the three lowest bids on the twenty days before the date this note is executed, or 60% of the average of the three lowest bids during the twenty trading days preceding the delivery of any conversion notice, whichever is lower. The note is currently in default.
	Asher Enterprises, Inc.
	On June 5, 2012, the Company entered into a convertible promissory note with Asher Enterprises, Inc. (“Asher”) for $32,500. The note bears interest at 8% and matured on March 7, 2013. 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 58% of the average lowest three closing prices during the ten trading days prior to the conversion date. During the year ended December 31, 2013, the Company issued 48,692 shares of common stock for the conversion of this note in the amount of $32,500.
	On July 15, 2013, the Company entered into a convertible promissory note with Asher for $37,500. The note matured on April 17, 2014. 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 prices during the ten trading days prior to the conversion date.
	During 2013, the Company also entered into various convertible promissory notes with Asher for an aggregated amount of $107,500. These notes matured during 2014. 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 prices during the ten trading days prior to the conversion date.
	During the year ended December 31, 2014, the Company issued 549,828 shares of common stock for the conversion of these notes in the amount of $145,000 and accrued interest of $5,800.
	KBM Worldwide, Inc.
	On June 26, 2014, the Company entered into a convertible promissory note with KBM Worldwide Inc. for $32,500. The note matured on March 30, 2015 and was converted to the Company's common stock subsequent to December 31, 2014.
	On August 12, 2014, the Company entered into a convertible promissory note with KBM Worldwide Inc. for $32,500. The note matures on May 14, 2015.
	On October 2, 2014, the Company entered into a convertible promissory note with KBM Worldwide Inc. for $37,500. The note matures on July 7, 2015.
	On November 10, 2014, the Company entered into a convertible promissory note with KBM Worldwide Inc. for $37,500. The note matures on August 12, 2015.
	In the event that these notes remain 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.
	GEL Properties, LLC
	On November 11, 2013, the Company entered into a convertible promissory note with GEL Properties LLC (“GEL”) for $50,000. The principal was received and recorded on November 20, 2013. The note bears interest at 8% and matured 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 prices during the ten trading days prior to the conversion date. During the year ended December 31, 2014, the Company issued 500,796 shares of common stock for the conversion of this note in the amount of $50,000 and accrued interest of $1,764.
	LG Capital Funding, LLC
	On November 11, 2013, the Company entered into a convertible promissory note with LG Capital Funding LLC (“LG”) for $50,000. The note matured 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 year ended December 31, 2014, the Company issued 1,521,533 shares of common stock for the conversion of this note in the amount of $50,000 and accrued interest of $2,993.
	On November 10, 2014, the Company entered into a convertible promissory note with LG for $37,000. The note matures on November 10, 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.
	On November 10, 2014, the Company entered into a convertible promissory note with for $50,000, which was issued in exchange for a portion of the promissory note issued to VTG on January 23, 2014. The note bears interest at 8% and matures on November 10, 2015. LG has the right 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. The Company recorded a loss on extinguishment of debt of $46,981 related to the exchange. During the year ended December 31, 2014, the Company issued 4,201,552 shares of common stock for the conversion of this note in the amount of $15,000 and accrued interest of $66.
	Tarpon
	On October 2, 2013, 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 on 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 matured 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 less. For interest that accrues pursuant to this note, the conversion price shall be at $0.001 regardless of the trading price. During the year ended December 31, 2014, the Company issued 167,234 shares of common stock for the conversion of this note in the amount of $25,000 and accrued interest and fees of $1,660.
	On February 3, 2014, the Company entered into a convertible promissory note with Tarpon in the amount of $132,000. The promissory note was issued on 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 matured on August 3, 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 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. During the year ended December 31, 2014, the Company issued 18,908,016 shares of common stock for the conversion of this note in the amount of $101,525 and accrued interest and fees of $9,866.
	WHC Capital, LLC
	On September 23, 2014, the Company entered into a convertible promissory note with WHC Capital, LLC (“WHC”) for $75,000. The note bears interest at 12% and matures on September 23, 2015. WHC has the right at any time during the period beginning on the date of this note to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the lowest intra-day trading price during the fifteen trading days prior to the conversion date.
	Beaufort Capital Partners, LLC
	On September 2, 2014, the Company entered into a convertible promissory note with Beaufort Capital Partners, LLC (“Beaufort”) for $21,000. The note matured on March 2, 2015. Beaufort has the right after the maturity date to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the lowest trading prices during the fifteen trading days prior to the conversion date. Under certain conditions, the conversion price would be reset to $0.0001 or 65% off the lowest price of the previous five trading days. To date, the Company has not repaid the debt and Beaufort has not exercised their conversion right.
Tangiers Investment Group, LLC
On October 13, 2014, the Company entered into a convertible promissory note with Tangiers Investment Group LLC (“Tangiers”) for $55,000. The note matures on October 13, 2015. Tangiers 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 lowest trading prices during the twenty trading days prior to the conversion date.
On October 13, 2014, the Company entered into a convertible promissory note with Tangiers for $33,000. The note bears interest at 10% and matures on October 13, 2015. Tangiers 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 lowest trading prices during the twenty trading days prior to the conversion date.
On December 3, 2014, the Company entered into a convertible promissory note with Tangiers for $45,000, which was issued in exchange for a portion of the promissory note issued to GGIL on January 23, 2014. The note matures on December 3, 2015. Tangiers has the right to convert the balance outstanding into the Company’s common stock at a rate equal to 60% of the lowest three trading price during the ten trading days prior to the conversion date. The Company recorded a loss on extinguishment of debt of $51,501 related to the exchange.
Darling Capital LLC
On November 6, 2014, the Company entered into a convertible promissory note with Darling Capital LLC (“Darling”) for $25,000. The note matures on August 6, 2015. Auctus 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 of the lowest three trading prices during the fifteen trading days prior to the conversion date.
Auctus Private Equity Fund LLC
On November 7, 2014, the Company entered into a convertible promissory note with Auctus Private Equity Fund LLC (“Auctus”) for $40,000. The note matures on August 7, 2015. Auctus 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 of the lowest two trading prices during the twenty-five trading days prior to the conversion date.
Other Various Convertible Notes
During the year ended December 31, 2014, the Company also entered into other various convertible promissory notes for an aggregate principal amount of $359,000. In 2014, the Company issued 21,652,983 shares of common stock for the conversion of these notes along with accrued interest of $12,016.
During the year ended December 31, 2013, the Company also entered into other various convertible promissory notes for an aggregate principal amount of $117,500. In 2014, the Company issued 323,226 shares of common stock for the conversion of these notes along with accrued interest of $4,700.
Long-term convertible notes payable
	Maturity		Interest				December 31,				December 31,
	Date		Rate				2014				2013
Virtual Technology Group, Ltd	1/23/17			0	%		$	695,000				-
Gold Globe Investments Ltd	1/23/17			0	%		$	2,380,000				-
Vista Capital Investments, LLC.	4/15/16			12	%			5,800				-
Subtotal								3,080,800				-
Debt discount								(1,684,853	)			-
Total							$	1,395,947				-
On January 23, 2014, the Company entered into a convertible promissory note with Virtual Technology Group LLC (“VTG”) for $1,500,000. 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 on another other exchange. During the year ended December 31, 2014, the Company issued 11,288,001 shares of common stock for the conversion of a portion of this note in the amount of $755,000. On November 10, 2014, an additional $50,000 of this note was replaced with a note issued to LG.
On January 23, 2014, the Company entered into a convertible promissory note with Gold Globe Investments Limited (“GGIL”) for $2,800,000. 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 on another exchange. During the year ended December 31, 2014, the Company issued 4,695,536 shares of common stock for the conversion of a portion of this note in the amount of $375,000. On December 3, 2014, $45,000 of this note was replaced with a note issued to Tangiers.
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 issuance discount of $25,000. The note 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 per share or 60% of the lowest trade occurring during the twenty-five consecutive trading days preceding the conversion date. Due to certain events that occurred during 2014, the conversion price has been reset to $0.005 per share or 50% of the lowest trade occurring during the twenty-five consecutive trading days preceding the conversion date. Pursuant to the agreement, if the conversion price calculated under this agreement is less than $0.01 per share, the principal amount outstanding shall increase by $10,000 (“Sub-Penny”). $25,000 net proceeds was received on April 23, 2014. The remaining fund of this note has not been received. During the year ended December 31, 2014, the Company issued 3,333,333 shares of common stock for the conversion of a portion of this note in the amount of $35,000.
Debt Discount
The table below presents the changes of the debt discount during the years ended December 31, 2014 and 2013:
		Amount
31-Dec-12		$	8,440
Additions			412,500
Amortization			(240,162	)
31-Dec-13			180,778
Additions			4,490,543
Amortization			(2,673,303	)
31-Dec-14		$	1,998,018
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 year ended December 31, 2014, the Company received a loan of $2,500 from its officer to open a new bank account.

DERIVATIVE_LIABILITIES_NOTE_CO

DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 7 - 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 notes as further described in Note 6 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 notes and “marked to market” each reporting period through the income statement. The fair value of the conversion future of the notes was recognized as a derivative liability instrument and will be measured at fair value at each reporting period.
	The conversion feature of the convertible notes issued during the years ended December 31, 2014 and 2013 was valued at $5,883,688 and $87,713, respectively, 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 $2,242,031 and $51,934, respectively, was expensed immediately as additional interest expense.
	The Company remeasured the fair value of the instruments as of December 31, 2014 and 2013, and recorded an unrealized loss of $1,439,211 and $104,824 for the years ended December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, the derivative liability associated with the note conversion features was $3,960,098 and $439,424. The Company determined the fair values of these liabilities using a Black-Scholes valuation model with the following assumptions:
		31-Dec-13			December 31,
					2014
	Estimated market value of common stock on measurement date	$	15		$	0.006
	Exercise price	$	6.3~8.7		$	0.0024~$0.006
	Discount rate		0.1	%		0.12	%
	Expected volatility		238	%		273	%
	Expected dividend yield		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:
		Amount
	Fair value at December 31, 2012	$	65,693
	Fair value of new financial derivatives		712,237
	Reclassification to equity		(443,330	)
	Change in fair value of derivative liabilities		104,824
	Fair value at December 31, 2013		439,424
	Fair value of new financial derivatives		5,883,689
	Increase due to exchange		98,482
	Reclassification to equity		(3,900,708	)
	Change in fair value of derivative liabilities		1,439,211
	Fair value at December 31, 2014	$	3,960,098

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 8 - RELATED PARTY TRANSACTIONS	On September 5, 2008, Elmside Pty Ltd, a company related to a former director, agreed to an interest free loan 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. As of December 31, 2014 and 2013, loans from Elmside, a shareholder, were $55,991. The loans are currently in default.
	As of December 31, 2014 and 2013, the Company had accounts payable of $1,007,382 and $709,984, respectively, to its chief executive officer and a company owned by the chief executive officer for reimbursement of expenses and compensation.
	On May 15, 2013, the Company entered into an agreement with Jay Goodman, son of the Company’s chief executive officer, to provide consulting services assisting the Company with data segmentation, financial and statistical services. In consideration for such services, the Company pays $3,000 per month to Jay Goodman. As of December 31, 2014 and 2013, the Company has a $58,500 and $22,500 payable to Jay Goodman, respectively.

EQUITY

EQUITY	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
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. The Company filed a certificate of amendment to effect the reverse stock split of ten-for-one on May 2, 2014.
	On December 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 30:1, such that every 30 shares of common stock becomes 1 share of common stock, reducing the number of authorized shares of common stock to 276,333,333. The reverse stock split of thirty-for-one was effective on January 15, 2015 upon approval of shareholders holding a majority of the voting stock. On March 3, 2015, the authorized number of shares of common stock was increased to 5 billion.
	All share numbers or per share information are presented given the effects of the reverse stock splits.
	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 a reverse split of common shares at a ratio of 100:1, the Series A Preferred Series shares are convertible at a rate of 100 common shares for each Series A Preferred Share. After the reverse stock splits, the Class A Preferred Series shares are convertible at a rate of 3.3 common shares for each Series A Preferred Share.
	On May 4, 2012, the Company entered into an acquisition agreement under which the Company acquired all of the outstanding shares of Golden Match Holdings Limited (“GM”). This follows the letter of intent previously signed on March 22, 2012. Under the terms of the acquisition agreement, Elray acquired 100% of GM, an investment holding company which has a profit sharing agreement with CALI Promocao de Jogos Sociedade Unipessoal Lda., a company incorporated under the laws of the Special Administrative Region of Macau. In the agreement, the Company transferred to the principals of GM 211,018,516 shares of its Series A Preferred Stock, which on a fully diluted basis, was equal to 95% of the Company’s then outstanding shares. In accordance with the above-referenced agreement, Mr. Lao Sio I had been appointed to the Company’s Board of Directors. On July 1, 2012, the Board of Directors held a special board meeting, wherein a motion was approved to remove Mr. Lao Sio I as a director.
	On September 27, 2013, the Company entered into a Termination Agreement (the “Termination Agreement”), with Mr. Lao Sio I, Millennium Commodity Trading Pty Ltd., a Hong Kong corporation (“Millennium”) and Millennium Holdings Pty Ltd., a Hong Kong corporation (“Millennium Holdings”), whereby the Company, Mr. Lao Sio I, Millennium and Millennium Holdings agreed to rescind the Acquisition Agreement dated May 4, 2012, entered into between the Company and Mr. Lao Sio I (the “Sale Agreement”). Following execution of the Acquisition Agreement, disputes arose between the Company, Mr. Lao Sio I, Millennium and Millennium Holdings regarding the parties’ obligations and performance under the Acquisition Agreement. As a result, legal proceedings were instituted in the District Court of Clark County in the State of Nevada and also in Juizo Civel, Tribunal Judicial de Base in Macau. The parties have now resolved all disputes related to the litigation and the Acquisition Agreement and have entered into a Settlement Agreement, which requires that the parties enter into and deliver the Termination Agreement. Pursuant to the terms of the Termination Agreement, the Company agreed to return to Mr. Lao Sio I, Millennium and Millennium Holdings all of the stock of Golden Match it received under the Acquisition Agreement and Mr. Lao Sio I, Millennium and Millennium Holdings agreed to return to the Company all of the stock of the Company they received under the Acquisition Agreement. Mr. Lao Sio I therefore has relinquished any right to be a member of the Company’s Board of Directors. All parties also agreed to release each other for any and all claims that they hold against each other.
	As of December 31, 2014, there are no Series A Preferred Stock outstanding.
	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 is convertible to 0.01 share of the Company’s common stock and has voting rights of 10:1 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 splits, the Series B Preferred stock is convertible at a rate of 0.00003 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 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. Subsequent to December 31, 2014, the Company terminated this project. The 88,000,000 shares of the Company’s Series B preferred stock were returned to the Company.
	On July 14, 2013, the Company entered into a 12-month consultancy agreement with VTG 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 192,000,000 Series B Preferred shares to VTG. The 192,000,000 Series B Preferred stock have been recorded at their estimated market value of $43,031.
	Preferred Stock – Series C
	On June 20, 2014, the Company authorized the creation of 10,000,000 shares of Series C preferred stock. Prior to a reverse split of common shares at a ratio of 30:1, the Series C Preferred Series shares are convertible at a rate of 100 common shares for each Series C Preferred Share and has voting rights of 1:1 with common stock. After the reverse stock splits, the Series C preferred shares are convertible at a rate of 3.33 common shares for each Series C Preferred Share.
	On September 18, 2014, the Company entered into an agreement to acquire a 25% interest in Global Tech Software Solutions LLC doing business as Golden Galaxy (“Golden Galaxy”) which operates online casinos. Under the terms of the purchase agreement, the Company will be entitled to 1% of the gross wagering generated by Golden Galaxy. In consideration for the purchase, the Company will issue 5,000,000 shares of the Company’s Series C preferred stock. Upon Golden Galaxy achieving revenues of at least $100,000 within the first 6 months of operation, the Company will issue additional 3,000,000 Series C preferred shares. On February 22, 2015, the Company received the certificate for the 25% interest in Golden Galaxy and issued 5,000,000 shares of the Company’s Series C preferred stock.
	On September 18, 2014, the Company entered into an agreement with Yangjiu Xie, owner of Asialink Treasure Limited (“ATL”). Pursuant to the agreement, the Company issued 2,083,333 shares of its Series C preferred stock as part of the consideration to acquire 49% of the outstanding shares of ATL in a series of transactions. The Company has not received the certificate of ownership from ATL. These shares were recorded at their par value of $2,083 with a subscription receivable at the same amount.
	Common Stock
	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 3,555 shares of its common stock for the acquisition. The closing of this transaction is 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 as a subscription receivable for the shares issued.
	During the year ended December 31, 2014, the Company issued 1,514,090 common shares and 162,000,000 shares of Series B preferred stock for services provided by vendors, consultants, directors and employees. These shares were valued at $336,556 based on the market price on the issuance date.
	In January and June, 2014, the Company issued a total of 218,368 shares of its common stock to settle accounts payable of $153,000 to Portspot Consultants Limited, Mr. Goodman, Pancar Capital LLC, and Portspot.
	On August 12, 2014, the Company entered into a subscription agreement with Longma Holdings Limited, in which the Company sold an aggregate of 333,334 shares of common stock at a purchase price of $0.90 per share, for net proceeds of $300,000.
	During the year ended December 31, 2014, the Company issued 66,823,712 shares of common stock for the conversion of notes payable and accrued interest in the amounts of $1,938,455 and $34,165, respectively.
	During the year ended December 31, 2014, the Company issued Tarpon 13,286,601 shares of its common stock according to the settlement agreement discussed in Note 3. These shares were valued at $1,071,248 based on the market price on the issuance date. $462,212 net proceeds from the sale were used to pay the original creditors of the claims Tarpon acquired. The remaining $260,679 was recorded as a loss on settlement.
	During the year ended December 31, 2013, the Company issued 9,184 shares of common stock for services. These shares were valued at $264,665 based on the market price on the issuance date.
	During the year ended December 31, 2013, the Company issued 40,282 shares of common stock for the conversion of notes payable and accrued interest in the amounts of $186,400 and $9,621, respectively.
	During the year ended December 31, 2013, the Company issued 22,978 shares of common stock to settle accounts payable of $400,000. These shares were valued at $689,713 based on the market price on the settlement date. The Company recorded a loss of $289,713 for the settlement.

INCOME_TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 10 - INCOME TAXES	No net provision for refundable federal income tax has been made in the accompanying statement of operations because no recoverable taxes were paid previously. As of December 31, 2014, the Company has about $7 million unused net operating losses. No deferred tax asset attributable to the net operating loss carry forward has been recognized, as it is not deemed likely to be realized. Additionally, as a result of the change in control in common stock transactions, the utilization of some or all of the net operating losses may be restricted as defined under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended.

CONCENTRATIONS

CONCENTRATIONS	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
Note 11 - CONCENTRATIONS	The Company’s revenues for the years ended December 31, 2014 were from three customers. As of December 31, 2014, the aggregate amount due from three customers was $257,864 which included $89,736 receivable for expenses paid on behalf of one customer.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 12 - COMMITMENTS AND CONTINGENCIES	On July 1, 2013, the Company entered into a lease agreement for office space in Australia. The agreement expired on December 31, 2014, but was extended to October 31, 2016. Rent is $43,456 per year and the Company paid a $7,535 security deposit.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 13 - SUBSEQUENT EVENTS	Convertible notes
	On January 20, 2015, the Company entered into a convertible promissory note with JSJ for $40,000. The note bears interest at 12% and matures on July 20, 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 60% of the lowest trading price on the twenty days before the date this note is executed, or 60% of the lowest trading price during the twenty trading days preceding the delivery of any conversion notice, whichever is lower.
	On January 20, 2015, the Company entered into a convertible promissory note with JSJ for $60,000, which was issued in exchange for a portion of the promissory note issued to VTG on January 23, 2014. The note bears interest at 12% and matures on January 20, 2015. JSJ has the right to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the lowest trading price on the twenty days before the date this note is executed, or 50% of the lowest trading price during the twenty trading days preceding the delivery of any conversion notice, whichever is lower.
	On January 30, 2015, the Company entered into the assignment and modification agreement to assign $62,500 of the convertible promissory note of VTG dated January 23, 2014 to GSM Fund Management LLC (“GSM”). The note bears interest at 12% and matures on January 30, 2016. GSM 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 15 trading days prior to the conversion date.
	Acquisition of assets
	On January 7, 2015, the Company entered into an agreement to acquire 23% interest in Golden Galaxy. In consideration for the purchase, the Company will issue 5,000,000 shares of the Company’s Series C preferred stock.
	On February 22, 2015, the Company issued 5,000,000 shares of the Company’s Series C preferred stock in consideration for the 25% interests in Global Galaxy.
	Increase of authorized number of shares of common stock
	On March 3, 2015, the authorized number of shares of common stock was increased to 5 billion.
	Conversion of debt
	Subsequent to December 31, 2014, the Company issued 1,338,716,996 shares of common stock for the conversion of various convertible notes as follows:
	Note holder	Shares		Principal		Accrued
		Issued		Converted		Interest
						Converted
	Tangiers		299,747,387	$	39,763	$	-
	LG		67,522,347		22,500		330
	KBM		438,673,612		61,920		1,300
	GGIL		17,278,579		56,000		-
	VTG		18,133,038		71,000		-
	JSJ		123,640,766		21,164		-
	GSM		88,067,396		10,572		-
	Tarpon		204,853,871		27,269		4,810
	Beaufort		80,800,000		4,040		-
	Total		1,338,716,996	$	314,228	$	6,440
	Subsequent to December 31, 2014, the Company also issued 36,052,000 shares of common stock pursuant to a settlement agreement. See Note 5.

SUMMARY_OF_ACCOUNTING_POLICIES1

SUMMARY OF ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2014
Summary Of Accounting Policies 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 investments with original maturities of three months or less to be cash equivalents.
Allowance for doubtful accounts	The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. As of December 31, 2014 and 2013, there were no allowances for doubtful accounts.
Long Lived Assets	Long-lived assets to be held and used or disposed of other than by sale are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When required, impairment losses on assets to be held and used or disposed of other than by sale are recognized based on the fair value of the asset. Long-lived assets to be disposed of by sale are reported at the lower of its carrying amount or fair value less cost to sell.
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 cost and amortized over its 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.
Derivative Instruments	Derivatives are measured at their fair value on the balance sheet. In determining the appropriate fair value, the Company uses the Black-Scholes-Merton option pricing model. Changes in fair value are recorded in the statement of operations.
Fair Value of Financial Instruments	The Company measures its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:
		•	Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;
		•	Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable, such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
		•	Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one more significant inputs or significant value drivers are unobservable.
	Our financial instruments include cash, accounts payable and accrued liabilities, notes payable, convertible notes payable, advances from shareholder, and derivative liabilities. The carrying values of the Company’s cash, accounts payable and accrued liabilities, notes payable, convertible notes payable and advances from shareholder approximate their fair value due to their short-term nature. The derivative liabilities are stated at their fair value as a level 3 measurement. The Company used a Black-Scholes model to determine the fair values of these derivative liabilities.
Debt Discount	Debt discount is amortized over the term of the related debt using the effective interest rate method.
Stock-Based Compensation	Stock-based compensation expense is recorded for stock and stock options awarded in return for services rendered. The expense is measured at the grant-date fair value of the award and recognized as compensation expense on a straight-line basis over the service period, which is typically the vesting period. The Company estimates forfeitures that it expects will occur and records expense based upon the number of awards expected to vest.
Income Tax	Deferred income taxes reflect the net effect of (a) temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of operations because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry forward has been recognized, as it is not deemed likely to be realized.
Loss Per Common Share	Basic loss per common share has been calculated based on the weighted average number of shares of common stock outstanding during the period. During a loss period, the potentially dilutive securities have an anti-dilutive effect and are not included in the calculation of dilutive net loss per common share. As of December 31, 2014 and 2013, potentially dilutive securities include notes convertible to 734,240,926 and 47,274 shares of the Company’s common stock. As of December 31, 2014 and 2013, potentially dilutive securities also include preferred stock convertible to 6,400 and 1,000 shares of the Company’s common stock.
Subsequent Events	Elray evaluated subsequent events through the date these financial statements were issued for disclosure purposes.
Recently Issued Accounting Standards	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 as of June 30, 2014.
	In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently evaluating the effects of ASU 2014-15 on the consolidated financial statements.
	The Company does not believe that any 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)	12 Months Ended
	Dec. 31, 2014
Intangible Assets Tables
INTANGIBLE ASSETS		31-Dec-14			31-Dec-13
	Intellectual properties	$	3,467,742		$	-
	Accumulated amortization		(1,059,586	)		-
	Total	$	2,408,156		$	-

NOTES_PAYABLE_Tables

NOTES PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2014
Notes Payable Tables
Notes Payable	Notes payable at December 31, 2014 and 2013 consisted of the following:
		Final Maturity		Interest Rate				31-Dec-14				31-Dec-13
	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 at December 31, 2014 and 2013 consisted of the following:
			Interest Rate				31-Dec-14				31-Dec-13
	Alan Binder			10	%		$	-			$	25,000
	Rousay Holdings Ltd.			20	%			-				1,290,000
	JSJ Investments, Inc.			10%~12	%			60,670				38,600
	Asher Enterprises, Inc.			8	%			-				145,000
	KBM Worldwide, Inc.			8	%			140,000				-
	GEL Properties, LLC			8	%			-				50,000
	LG Capital Funding, LLC			8	%			72,000				50,000
	Tarpon			10	%			30,475				-
	WHC Capital, LLC			12	%			75,000				-
	Beaufort Capital Partners, LLC			12	%			21,000				-
	Tangiers Investment Group, LLC			0%~10	%			133,000				-
	Darling Capital, LLC			8	%			25,000				-
	Auctus Private Equity Fund, LLC			8	%			40,000				-
	Subtotal							597,145				1,598,600
	Debt discount							(313,165	)			(180,778	)
	Total						$	283,980			$	1,417,822
Long-term convertible notes payable		Maturity		Interest				December 31,				December 31,
		Date		Rate				2014				2013
	Virtual Technology Group, Ltd	1/23/17			0	%		$	695,000				-
	Gold Globe Investments Ltd	1/23/17			0	%		$	2,380,000				-
	Vista Capital Investments, LLC.	4/15/16			12	%			5,800				-
	Subtotal								3,080,800				-
	Debt discount								(1,684,853	)			-
	Total							$	1,395,947				-
Changes of debt discount	The table below presents the changes of the debt discount during the years ended December 31, 2014 and 2013:
			Amount
	31-Dec-12		$	8,440
	Additions			412,500
	Amortization			(240,162	)
	31-Dec-13			180,778
	Additions			4,490,543
	Amortization			(2,673,303	)
	31-Dec-14		$	1,998,018

DERIVATIVE_LIABILITIES_Tables

DERIVATIVE LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2014
Derivative Liabilities Tables
Fair Value of the Liabilites using a Black-Scholes Valuation method		31-Dec-13			December 31,
					2014
	Estimated market value of common stock on measurement date	$	15		$	0.006
	Exercise price	$	6.3~8.7		$	0.0024~$0.006
	Discount rate		0.1	%		0.12	%
	Expected volatility		238	%		273	%
	Expected dividend yield		0	%		0	%
Changes in fair value of the derivative financial instruments measured at fair value on a recurring basis		Amount
	Fair value at December 31, 2012	$	65,693
	Fair value of new financial derivatives		712,237
	Reclassification to equity		(443,330	)
	Change in fair value of derivative liabilities		104,824
	Fair value at December 31, 2013		439,424
	Fair value of new financial derivatives		5,883,689
	Increase due to exchange		98,482
	Reclassification to equity		(3,900,708	)
	Change in fair value of derivative liabilities		1,439,211
	Fair value at December 31, 2014	$	3,960,098

GOING_CONCERN_Details_Narrativ

GOING CONCERN (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Going Concern Details Narrative
Working Capital Deficiency	$8,498,380
Stockholders' deficit	-7,478,636	-4,869,935	-3,109,635
Net cash used in operating activities	-1,144,150	-396,082
Net loss	($10,346,615)	($3,354,029)

SUMMARY_OF_ACCOUNTING_POLICIES2

SUMMARY OF ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Summary Of Accounting Policies Details Narrative
Potentially dilutive securities include notes convertible	734,240,926	47,274
Potentially dilutive securities include preferred stock convertible	6,400	1,000

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Intangible Assets Details
Intellectual properties	$3,467,742
Accumulated amortization	-1,059,586
Total	$2,408,156

SETTLEMENT_PAYABLE_Details_Nar

SETTLEMENT PAYABLE (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Settlement Payable Details Narrative
Net proceeds from the sale	$462,214
Settlement payable	$2,194,000

NOTES_PAYABLE_Details

NOTES PAYABLE (Details) (USD $)	12 Months Ended
	Dec. 31, 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 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 $)	Dec. 31, 2014	Dec. 31, 2013
Convertible notes payable	$597,145	$1,598,600
Debt discount	-313,165	-180,778
Total	283,980	1,417,822
Alan Binder
Convertible notes payable		25,000
Interest Rate	10.00%
Rousay Holdings Ltd.
Convertible notes payable		1,290,000
Interest Rate	10.00%
JSJ Investments, Inc.
Convertible notes payable	60,670	38,600
JSJ Investments, Inc. | Minimum [Member]
Interest Rate	10.00%
JSJ Investments, Inc. | Maximum [Member]
Interest Rate	12.00%
Asher Enterprises, Inc.
Convertible notes payable		145,000
Interest Rate	8.00%
KBM Worldwide, Inc.
Convertible notes payable	140,000
Interest Rate	8.00%
GEL Properties, LLC
Convertible notes payable		50,000
Interest Rate	8.00%
LG Capital Funding, LLC
Convertible notes payable	72,000	50,000
Interest Rate	8.00%
Tarpon
Convertible notes payable	30,475
Interest Rate	10.00%
WHC Capital, LLC.
Convertible notes payable	75,000
Interest Rate	12.00%
Beaufort Capital Partners, LLC.
Convertible notes payable	21,000
Interest Rate	12.00%
Tangiers Investment Group, LLC
Convertible notes payable	133,000
Tangiers Investment Group, LLC | Minimum [Member]
Interest Rate	0.00%
Tangiers Investment Group, LLC | Maximum [Member]
Interest Rate	10.00%
Darling Capital, LLC.
Convertible notes payable	25,000
Interest Rate	8.00%
Auctus Private Equity Fund, LLC.
Convertible notes payable	$40,000
Interest Rate	8.00%

NOTES_PAYABLE_Details_2

NOTES PAYABLE (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Long-term convertible notes payable	$3,080,800
Debt discount	-1,684,853
Total	1,395,947
Virtual Technology Group, Ltd
Maturity Date	23-Jan-17
Interest Rate	0.00%
Long-term convertible notes payable	695,000
Gold Globe Investments Ltd
Maturity Date	23-Jan-17
Interest Rate	0.00%
Long-term convertible notes payable	2,380,000
Vista Capital Investments, LLC
Maturity Date	15-Apr-16
Interest Rate	12.00%
Long-term convertible notes payable	$5,800

NOTES_PAYABLE_Details_3

NOTES PAYABLE (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Notes Payable Details 3
Unamortized Discount, Beginning Balance	$180,778	$8,440
Addition	4,490,543	412,500
Amortization	-2,673,303	-240,162
Unamortized Discount, Ending Balance	$1,998,018	$180,778

NOTES_PAYABLE_Details_Narrativ

NOTES PAYABLE (Details Narrative) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Common Stock; Shares Issued	82,293,182	113,522
Received loan from its officers	$2,500
Virtual Technology Group LLC [Member]
Common Stock; Shares Issued	11,288,001
Principal note amount	755,000
Gold Globe Investments Limited [Member]
Common Stock; Shares Issued	4,695,536
Principal note amount	375,000
JSJ Investments, Inc.
Common Stock; Shares Issued	4,900
Principal note amount	10,670
Principal amount converted	27,930
Asher Enterprises, Inc.
Common Stock; Shares Issued	549,828	48,692
Principal note amount	145,000	32,500
Accrued interest	5,800
GEL Properties, LLC
Common Stock; Shares Issued	500,796
Principal note amount	50,000
Accrued interest	1,764
LG Capital Funding, LLC | November 11, 2013
Common Stock; Shares Issued	1,521,533
Principal note amount	50,000
Accrued interest	2,993
LG Capital Funding, LLC | November 10, 2014
Common Stock; Shares Issued	4,201,552
Principal note amount	15,000
Accrued interest	66
Tarpon | October 2, 2013
Common Stock; Shares Issued	167,234
Principal note amount	25,000
Accrued interest	1,660
Tarpon | February 3, 2014
Common Stock; Shares Issued	18,908,016
Principal note amount	101,525
Accrued interest	9,866
Vista Capital Investments, LLC
Common Stock; Shares Issued	3,333,333
Principal note amount	35,000
Other Various Convertible Notes [Member]
Principal amount converted	$359,000	117,500

DERIVATIVE_LIABILITIES_NOTE_CO1

DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Estimated market value of common stock on measurement date	$0.01	$15
Discount rate	0.12%	0.10%
Expected volatility	273.00%	238.00%
Expected dividend yield	0.00%	0.00%
Minimum [Member]
Exercise Price	$0.00	$6.30
Maximum [Member]
Exercise Price	$0.01	$8.70

DERIVATIVE_LIABILITIES_NOTE_CO2

DERIVATIVE LIABILITIES b NOTE CONVERSION FEATURE (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Derivative Liabilities Note Conversion Feature Details 1
Fair value, Beginning Balance	$439,424	$65,693
Fair value of new financial derivatives	5,883,689	712,237
Increase due to exchange	98,482
Reclassification to equity	-3,900,708	-443,330
Change in fair value of derivative liabilities	1,439,211	104,824
Fair value, Ending Balance	$3,960,098	$439,424

DERIVATIVE_LIABILITIES_NOTE_CO3

DERIVATIVE LIABILITIESb NOTE CONVERSION FEATURE (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Derivative Liabilities Note Conversion Feature Details Narrative
Convertible notes issued	$5,883,688	$87,713
Unrealized gain (loss) on derivative instrument	-1,439,211	-104,824
Derivative liablity associated with conversion feature	$3,960,098	$439,424

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Accounts payable - related parties	$1,007,382	$709,984
Jay Goodman [Member]
Accounts payable - related parties	$58,500	$22,500

EQUITY_Details_Narrative

EQUITY (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Stock issued	66,823,712	40,282
Accounts payable	$22,978
Tarpon
Stock issued	13,286,601
Accured interest
Stock issued	34,165	9,621
Common Stock
Stock issued	1,514,090
Series B Preferred Stock
Stock issued for services	162,000,000
Services
Stock issued		9,184
Common stock value		264,665
Notes Payable Conversion
Stock issued	1,938,455	186,400
Accounts Payable
Stock issued		400,000

INCOME_TAXES_Details_Narrative

INCOME TAXES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014
Income Taxes Details Narrative
Unused net operating losses	$7,000,000

CONCENTRATIONS_Details_Narrati

CONCENTRATIONS (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014
Concentrations Details Narrative
Revenues from three customers	$257,864
Receivables for expenses paid on behalf of customers	$89,736