Derivative Liability

6 Months Ended

Jun. 30, 2013

Derivative Liability [Abstract]

Derivative Liability

10.  Derivative Liability

During the six months ended June 30, 2013, we had the following activity in the accounts related to our convertible notes payable:

	Derivative Liability	Debt Discount	Gain (Loss) on Derivative Liability
Balance at December 31, 2012	$     136,116	$   (70,691)
Derivative liability at inception of the   February 2013 note	56,945	(47,500)	$           (9,445)
Conversion of convertible debt	(22,752)	6,600	-
Gain on derivative liability	(68,639)	-	68,639
Amortization of debt discount to    interest expense	-	79,740	-
Balance at June 30, 2013	$     101,670	$      (31,851)	$          59,194

We estimated the fair value of the derivative for the conversion feature at the inception of the February 2013 note and for all convertible notes to the investor at June 30, 2013 using the Black-Scholes pricing model with the following assumptions:

	February 2013 Note Inception	Range All Notes June 30, 2013
Risk-free interest rate	0.13%	0.02 - 0.07%
Expected life in years	0.75	0.05-0.75
Dividend yield	0%	0%
Expected volatility	190.10%	147.38-190.10%