DERIVATIVE WARRANT AND CONVERSION OPTION LIABILITY AND FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Value the warrants and conversion option

December 31, 2012

September 30, 2013

Expected Life (Years)

Risk free Rate

Dividend yield

Volatility

Expected Life (Years)

Risk free Rate

Dividend yield

Volatility

Share purchase warrants

0.08 to 3.78

0.02% to 0.36%

0.00

%

199

%

1.10 to 3.03

0.09% to 0.63%

0.00

%

199

%

Value the warrants and conversion option

	December 31, 2012					September 30, 2013
	Expected Life (Years)	Risk free Rate	Dividend yield		Volatility	Expected Life (Years)	Risk free Rate	Dividend yield		Volatility
Conversion Option	0.003 to 0.89	0.05% to 0.19%	0.00	%	100.88% to 141.21%	0.14 to 0.78	0.02% to 0.15%	0.00	%	108% to 161.97%

Financial assets and liabilities measured at fair value

			As of September 30, 2013
			Fair Value Measurements
	Carrying Value		Level 1		Level 2		Level 3		Total
Derivative liability - warrants	$	89,195		—		—	$	89,195	$	89,195
Derivative liability – conversion option		195,300		—		—		195,300		195,300
Total	$	284,495		—		—	$	284,495	$	284,495

Financial assets and liabilities measured at fair value

	As of December 31, 2012
			Fair Value Measurements Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Derivative liability - warrants	$	977,086		—		—	$	977,086	$	977,086
Derivative liability – conversion option		867,575		—		—		867,575		867,575
Total	$	1,844,661		—		—	$	1,844,661	$	1,844,661

Changes in fair value

	Fair Value Measurements Using Level 3 Inputs
		Derivative liability - warrants			Derivative liability – conversion option			Total
Balance,  December 31, 2011	$	1,317,834		$	—		$	1,317,834
Additions during the year		300,000			737,700			1,037,700
Total unrealized (gains) or losses included in net loss		(597,127	)		129,875			(467,252	)
Debt settlement		(43,621	)		—			(43,621	)
Transfers in and/or out of Level 3		—			—			—
Balance,  December 31, 2012		977,086			867,575			1,844,661
Additions during the period		200,000			363,300			563,300
Total unrealized (gains) or losses included in net loss		(1,087,891	)		(1,035,575	)		(2,123,466	)
Transfers in and/or out of Level 3		—			—			—
Balance, September 30, 2013	$	89,195		$	195,300		$	284,495