XML 37 R22.htm IDEA: XBRL DOCUMENT

Fair Value Measures and Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Schedule of Valuation Methodology

		September 30, 2014
Share Price		$	1.05
Strike Price		$	0.75
Risk-free Rate			0.13	%
Volatility (Annual)			67	%
Number of Assumed Financings			1
Total Warrants Outstanding			25,703,219
Total Common Shares Outstanding			16,980,787
Time to Maturity (Years)		.87 to 1.15

Schedule of Fair Value of the Liabilities Measured on a Recurring Basis

December 31, 2013
		Fair Value				Level 1				Level 2				Level 3				Total
Derivative liability - warrants			26,505				-				-				26,505				26,505
Convertible notes			142,089				-				-				142,089				142,089
		$	168,594			$	-			$	-			$	168,594			$	168,594

September 30, 2014
		Fair Value				Level 1				Level 2				Level 3				Total
Derivative liability - warrants			54,292				-				-				54,292				54,292
		$	54,292			$	-			$	-			$	54,292			$	54,292

Derivative Liability [Member]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Schedule of Activity for Liabilities Measured at Fair Value using Unobservable Inputs

Fair Value Measurements Using Level 3 Inputs

		Derivative Liability
		Convertible
		Notes				Warrants				Total
Balance - December 31, 2013		$	142,089				26,505			$	168,594
Additions during the period			-				-				-
Total Unrealized (gains) or losses include in net loss			(5,945	)			100,154				94,209
Settlements during the period			(136,144	)			-				(136,144	)
Transfers in and/or out of Level 3			-				-				-
Balance - March 31, 2014		$	-				126,659			$	126,659
Additions during the period			-				-				-
Total Unrealized (gains) or losses include in net loss			-				(33,617	)			(33,617	)
Settlements during the period			-				-				-
Transfers in and/or out of Level 3			-				-				-
Balance - June 30, 2014		$	-				93,042			$	93,042
Additions during the period			-				-				-
Total Unrealized (gains) or losses include in net loss			-				(38,750	)			(38,750	)
Settlements during the period			-				-				-
Transfers in and/or out of Level 3			-				-				-
Balance - September 30, 2014		$	-				54,292			$	54,292

Earn Out Liability [Member]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Schedule of Activity for Liabilities Measured at Fair Value using Unobservable Inputs

Fair Value Measurements Using Level 3 Inputs
		Earn-out
		Liability				Total
Balance - December 31, 2013		$	-			$	-
Additions during the period			846,885				846,885
Total Unrealized (gains) or losses include in net loss			-				-
Settlements during the period			-				-
Transfers in and/or out of Level 3			-				-
Balance - December 31, 2013			846,885				846,885
Additions during the period			-				-
Total Unrealized (gains) or losses include in net loss			104,101				104,101
Settlements during the period			-				-
Transfers in and/or out of Level 3			-				-
Balance - June 30, 2014		$	950,986			$	950,986
Reduction as a result of measurement period adjustment			(238,987	)			(238,987	)
Total Unrealized (gains) or losses include in net loss			(141,371	)			(141,371	)
Settlements during the period			-				-
Transfers in and/or out of Level 3			-				-
Balance - September 30, 2014		$	570,628			$	570,628

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References+ Details

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details