Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Measurement Tables

Financial liabilities measured at fair value

Financial liabilities measured at fair value on a recurring basis are summarized below:

	Fair value measurements at March 31, 2013 using
	March 31, 2013			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Liabilities:
Fair value of warrant liabilities		$	215,853		–		–		$	215,853

	Fair value measurements at December 31, 2012 using
	December 31, 2012		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Liabilities:
Fair value of warrant liabilities	$	3,125,393		–		–	$	3,125,393

Liabilities resulting from the Series B Warrants

Liabilities resulting from the Series B Warrants issued in connection with the Company’s November 2012 financing were valued using the Black-Scholes option valuation model and the following assumptions on the following dates:

	March 31,			March 6,			December 31,
	2013			2013			2012
Warrants:
Risk-free interest rate		0.14% - 0.77	%		0.81	%		0.16% - 0.72	%
Expected volatility		96.57% - 147.28	%		147.15	%		91.79% - 146.03	%
Expected life (in years)		0.6 - 4.6			4.7			0.8 - 4.9
Expected dividend yield		-			-			-
Number of warrants		75,757			474,266			550,664
Fair value	$	215,853		$	5,695,935		$	3,125,393

Summary of the changes in the fair value of the Companys Level 3 financial liabilities

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis:

	For the three months ended March 31,
	2013		2012
Beginning balance	$	3,125,393	$	916,621
Issuance of new warrants		-		214,288
Unrealized loss (gain) on the warrant liabilities		2,786,395		(339,308)
Reclassification to stockholders’ equity		(5,695,935)		-
Ending balance	$	215,853	$	791,601