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4. Derivative Liabilities
 3 Months Ended
Mar. 31, 2014
Disclosure Text Block [Abstract]  
Derivatives and Fair Value [Text Block]
4.      Derivative Liabilities

The Company records the fair value of the of the conversion price of the convertible debentures disclosed in Notes 3(a) and 3(b) in accordance with ASC 815, Derivatives and Hedging. The fair value of the derivative was calculated using a multi-nominal lattice model performed by an independent qualified business valuator. The fair value of the derivative liability is revalued on each balance sheet date with corresponding gains and losses recorded in the consolidated statement of operations. During the period ended March 31, 2014, the Company recorded a loss on the change in fair value of derivative liability of $44,752 (December, 31, 2013 - $45,521). As at March 31, 2014, the Company recorded a derivative liability of $90,273 (December, 31, 2013 - $45,521).

The following inputs and assumptions were used to value the convertible debentures outstanding during the period ended March 31, 2014:

 ·
The underlying stock price of $0.0014 was used as the fair value of the common stock as at December 31, 2013.

 ·
The underlying stock price of $0.0033 was used as the fair value of the common stock as at March 31, 2014.

 ·
The principal of the debenture on the June 7, 2013 date of issuance was $32,500.

 ·
The balance of the principal and interest of the June 7, 2013 debenture on December 4, 2013, the date the June 7, 2013 debenture became convertible, was $33,775.

 ·
The balance of the principal and interest of the June 7, 2013 debenture on December 31, 2013 was $33,975.

 ·
The balance of the principal and interest of the June 7, 2013 debenture on March 31, 2014 was $34,616.

 ·
The principal of the debenture on the July 15, 2013 date of issuance was $27,500.

 ·
The balance of the principal and interest of the July 15, 2013 debenture on January 11, 2014, the date the July 15, 2013 debenture became convertible, was $28,579.

 ·
The balance of the principal and interest of the July 15, 2013 debenture on March 31, 2014 was $29,061

 ·
Capital raising events are not a factor for the debenture.

 ·
The Holder would redeem based on availability of alternative financing 0% of the time increasing 1.0% monthly to a maximum of 10%.

 ·
The Holder would automatically convert the note at maturity if the registration (after 120 days) was effective and the Company is not in default.

 ·
The projected annual volatility for each valuation period was based on the historic volatility of the Company of 178% as at December 4, 2013, 176% as at December 31, 2013, 175% as at January 11, 2014 and 171% as at March 31, 2014

 ·
An event of default would occur 0% of the time, increasing to 1.0% per month to a maximum of 5%. To date, the debenture is not in default nor converted by the Holder.

A summary of the activity of the derivative liability is shown below:

    $    
Balance, December 31, 2012
    –  
Derivative loss due to new issuances
    46,532  
Mark to market adjustment at December 31, 2013
    (1,011 )
Balance, December 31, 2013
    45,521  
Derivative loss due to new issuances
    36,272  
Mark to market adjustment at March 31, 2014
    8,480  
Balance, March 31, 2014
    90,273