Note 6 - Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Text Block]

6.         Fair Value Measurement

The Company adopted ASC 820, Fair Value Measurement (“ASC 820”), which defines fair value, establishes a framework for measuring fair value and requires additional disclosures about fair value measurements.  The framework that is set forth in this standard is applicable to the fair value measurements where it is permitted or required under other accounting pronouncements.

ASC 820 defines fair value as the exit price, which is the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants at the measurement date.  ASC 820 establishes a three-tier fair value hierarchy that prioritizes inputs to valuation techniques used for fair value measurement.

· Level 1 consists of observable market data in an active market for identical assets or liabilities.

· Level 2 consists of observable market data, other than that included in Level 1, that is either directly or indirectly observable.

· Level 3 consists of unobservable market data.  The input may reflect the assumptions of the Company, not a market participant, if there is little available market data and the Company’s own assumptions are considered by management to be the best available information.

The fair value of the Company’s notes payable is determined using various methods, including quoted market prices for notes with similar terms of maturity, which is a Level 2 measurement, and discounted cash flows, which is a Level 3 measurement. The estimated fair values of notes payable at March 31, 2013 and December 31, 2012, respectively, are as follows:

	December 31, 2012		March 31, 2013
Notes payable	$	171,841,824	$	160,328,713