Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Financial Instruments (Tables)

· The projected volatility curve for each valuation period was based on the historical volatility of the company:

	1 year	2 year	3 year	4 year	5 year
12/05/11	271%	461%	582%	832%	875%
12/31/11	271%	461%	582%	832%	875%
1/3/12	325%	484%	738%	840%	877%
1/31/12	302%	475%	707%	838%	877%
3/2/12	273%	466%	669%	835%	877%

Estimated Fair Value For The Derivatives As Of Issuance

Based on relevant information available, the estimated fair value for the derivatives as of issuance on the four ICG Notes is as follows:

Valuation Date:	12/5/2011	1/3/2012	1/31/2012	3/2/2012
Notional Amount	75,000	75,000	75,000	75,000
Note Balance	75,000	75,000	75,000	75,000
Derivative Value - Notes	73,679	76,421	77,011	73,141

Projected Volatality Based On Historical Volatality

The projected volatility curve for each valuation period was based on the historical volatility of the company:

	1 year	2 year	3 year	4 year	5 year
3/31/12	248%	462%	639%	834%	876%
4/11/12	230%	460%	610%	834%	876%
5/4/12	210%	453%	581%	832%	874%
06/11/12	186%	441%	571%	829%	871%
6/30/12	176%	435%	568%	827%	869%

Fair Value Estimated For The Derivatives As Of Issuance

Based on relevant information available, the estimated fair value for the derivatives as of issuance on the two Asher Notes is as follows:

Valuation Date:	4/11/2012	5/4/2012
Notional Amount	53,000	32,500
Note Balance	53,000	32,500
Derivative Value - Notes	60,220	40,653

Summary Of Fair Value Of Financial Assets And Liabilities

Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheets:

			Fair Value Measurement Using
	Carrying Value		Level 1			Level 2			Level 3		Total
Derivative warrant liabilities	$	535,938		$	-		$	-	$	535,938		$	535,938

Fair Value Measurement Using Level Three Inputs

The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31, 2011 and the six months ended June 30, 2012 :

	Fair Value Measurement Using Level 3 Inputs
		Derivative warrants				Total

Balance, December 31, 2010			$	424,671			$	424,671
Total gains or losses (realized/unrealized)
Included in net (income) loss				(163,745	)			(163,745	)
Included in other comprehensive income				-				-
Purchases, issuances and settlements				73,679				73,679
Transfers in and/or out of Level 3				-				-
Balance, December 31, 2011			$	334,605			$	334,605
Total gains or losses (realized/unrealized)
Included in net (income) loss				(110,727	)			(110,727	)
Included in other comprehensive income				-				-
Purchases, issuances and settlements				312,060				312,060
Transfers in and/or out of Level 3				-				-
Balance, June 30, 2012			$	535,938			$	535,938