Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of Assets and Liabilities Measured at Fair Value

The following table represents the fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis:

	As of September 30, 2014
	Level 1		Level 2		Level 3		Balance

Assets
Investment in money market funds⁽¹⁾	$	6,429,125	$	-	$	-	$	6,429,125
Total investment in money market funds	$	6,429,125	$	-	$	-	$	6,429,125

Liabilities
Current and non-current portion of derivative instruments related to stock purchase warrants	$	-	$	-	$	851,793	$	851,793
Total derivative instruments related to stock purchase warrants	$	-	$	-	$	851,793	$	851,793

	As of December 31, 2013
	Level 1		Level 2		Level 3		Balance

Assets
Investment in money market funds⁽¹⁾	$	7,928,807	$	-	$	-	$	7,928,807
Total investment in money market funds	$	7,928,807	$	-	$	-	$	7,928,807

Liabilities
Current and non-current portion of derivative instruments related to stock purchase warrants	$	-	$	-	$	1,740,235	$	1,740,235
Total derivative instruments related to stock purchase warrants	$	-	$	-	$	1,740,235	$	1,740,235

⁽¹⁾

Included in cash and cash equivalents on the condensed consolidated balance sheets.

Summary of Changes in Fair Value of Level 3 Liabilities

The following table sets forth a summary of changes in the fair value of the Company's Level 3 liabilities for the nine months ended September 30, 2014:

						Exercised
	Balance as of		Unrealized			Stock Purchase			Balance as of
	December 31,		(Gains)			Warrants			September 30,
Description	2013		2014			2014			2014
Derivative liabilities related to stock purchase warrants	$	1,740,235	$	(464,703	)	$	(423,739	)	$	851,793

The following table sets forth a summary of changes in the fair value of the Company's Level 3 liabilities for the nine months ended September 30, 2013:

						Exercised
		Balance as of		Unrealized		Stock Purchase		Balance as of
		December 31,		Losses		Warrants		September 30,
Description		2012		2013		2013		2013
Derivative liabilities related to stock purchase warrants	$	1,295,613	$	1,181,575	$	-	$	2,477,188

Schedule of Quantitative Information about Level 3 Fair Value Measurements

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details

Quantitative Information about Level 3 Fair Value Measurements

Fair Value at September 30, 2014

Valuation Technique

Unobservable Inputs

Black-Scholes option pricing model

Expected term

Expected dividends

Anticipated volatility