2.4.0.8000080 - Disclosure - Note 3 - Summary of Significant Accounting Policiestruefalsefalse1false falsefalseD130101_130630http://www.sec.gov/CIK0001455694duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_DisclosureTextBlockAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Notes2false 2us-gaap_SignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.   Derivative Financial Instruments The Company generally does not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of its financial instruments. The Company utilizes various types of financing to fund our business needs, including preferred stock with warrants attached and other instruments not indexed to our stock. The Company is required to record its derivative instruments at their fair value. Changes in the fair value of derivatives are recognized in earnings in accordance with ASC 815.   Fair Value of Financial Instruments  In accordance with ASC 820, the carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates fair value due to the short-term maturity of these instruments.  ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:   Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.   Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.    Level 3-Inputs are unobservable inputs which reflect the reporting entitys own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.   The carrying amounts reported in the balance sheets for cash, accounts payable and accrued expenses, approximate their fair market value based on the short-term maturity of these instruments. The following table presents assets and liabilities that are measured and recognized at fair value as of June 30, 2013, on a recurring basis:   <table border="0" cellspacing="0" cellpadding="0" width="622" style='width:466.4pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="241" valign="bottom" style='width:180.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Description </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" colspan="2" valign="bottom" style='width:49.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Level 1 </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="60" colspan="2" valign="bottom" style='width:45.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Level 2 </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="98" colspan="2" valign="bottom" style='width:73.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Level 3 </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="98" colspan="2" valign="bottom" style='width:73.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Gains (Losses) </td> </tr> <tr style='height:12.75pt'> <td width="241" valign="bottom" style='width:180.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> Derivative Liability </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="45" valign="bottom" style='width:33.55pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="24" valign="bottom" style='width:17.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="37" valign="bottom" style='width:27.55pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="77" valign="bottom" style='width:57.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="77" valign="bottom" style='width:57.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> (3,926) </td> </tr> <tr style='height:12.75pt'> <td width="241" valign="bottom" style='width:180.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> Total </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="45" valign="bottom" style='width:33.55pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="24" valign="bottom" style='width:17.75pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="37" valign="bottom" style='width:27.55pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="77" valign="bottom" style='width:57.5pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="77" valign="bottom" style='width:57.5pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> (3,926) </td> </tr> </table>   The following table presents assets and liabilities that are measured and recognized at fair value as of December 31, 2012, on a recurring basis:   <table border="0" cellspacing="0" cellpadding="0" width="622" style='width:466.4pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:15.0pt'> <td width="241" valign="bottom" style='width:180.75pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Description </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="66" colspan="2" valign="bottom" style='width:49.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Level 1 </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="60" colspan="2" valign="bottom" style='width:45.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Level 2 </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="98" colspan="2" valign="bottom" style='width:73.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Level 3 </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> <td width="98" colspan="2" valign="bottom" style='width:73.3pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'> Gains (Losses) </td> </tr> <tr style='height:12.75pt'> <td width="241" valign="bottom" style='width:180.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> Derivative Liability </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="45" valign="bottom" style='width:33.55pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="24" valign="bottom" style='width:17.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="37" valign="bottom" style='width:27.55pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="77" valign="bottom" style='width:57.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> (5,687,262) </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="77" valign="bottom" style='width:57.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> (309,954) </td> </tr> <tr style='height:12.75pt'> <td width="241" valign="bottom" style='width:180.75pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> Total </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="45" valign="bottom" style='width:33.55pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="24" valign="bottom" style='width:17.75pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="37" valign="bottom" style='width:27.55pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> - </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="77" valign="bottom" style='width:57.5pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> (5,687,262) </td> <td width="15" valign="bottom" style='width:11.1pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="21" valign="bottom" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="77" valign="bottom" style='width:57.5pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> (309,954) </td> </tr> </table>   A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodology used to measure fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.   Derivative Liability:     Market prices are not available for the Company's warrants nor are market prices of similar warrants available. The Company assessed that the fair value of this liability approximates its carrying value since carrying value has been adjusted to fair value.   The method described above may produce a current fair value calculation that may not be indicative of net realizable value or reflective of future fair values. If a readily determined market value became available or if actual performance were to vary appreciably from assumptions used, assumptions may need to be adjusted, which could result in material differences from the recorded carrying amounts. The Company believes its method of determining fair value is appropriate and consistent with other market participants. However, the use of different methodologies or different assumptions to value certain financial instruments could result in a different estimate of fair value.   The following tables present the fair value of financial instruments as of June 30, 2013, by caption on the condensed balance sheet and by ASC 820 valuation hierarchy described above.   <table border="0" cellspacing="0" cellpadding="0" width="501" style='width:375.75pt;margin-left:4.65pt;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="379" valign="bottom" style='width:284.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="122" colspan="2" style='width:91.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> Stock Warrant </td> </tr> <tr style='height:12.75pt'> <td width="379" style='width:284.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> Level 3 Reconciliation: </td> <td width="122" colspan="2" style='width:91.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> Derivative </td> </tr> <tr style='height:12.75pt'> <td width="379" style='width:284.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-top:0in;margin-right:-32.65pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal'>Level 3 assets and liabilities at December 31, 2012 </td> <td width="21" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> $ </td> <td width="101" style='width:75.7pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> (5,687,262) </td> </tr> <tr style='height:12.75pt'> <td width="379" style='width:284.25pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> Purchases, sales, issuances and settlements (net) </td> <td width="21" style='width:15.8pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'></td> <td width="101" style='width:75.7pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'> 5,687,262 </td> </tr> <tr style='height:13.5pt'> <td width="379" style='width:284.25pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> Total level 3 assets and liabilities at June 30, 2013  </td> <td width="21" style='width:15.8pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> $ </td> <td width="101" style='width:75.7pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> - </td> </tr> </table>   Recent Accounting Pronouncements <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;text-align:left !msorm;background:white !msorm;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;line-height:normal;background:white'>The Company has evaluated recent accounting pronouncements and their adoption has not had nor is it expected to have a material impact on the Companys financial position, or statements.  . See the list of recent accounting pronouncements below.   Update No. 2013-06Not-for-Profit Entities (Topic 958): Services Received from Personnel of an Affiliate (a consensus of the FASB Emerging Issues Task Force). These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.   Update No. 2013-07Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.   Update No. 2013-08Financial ServicesInvestment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.   Update No. 2013-09Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.   Update No. 2013-10Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (a consensus of the FASB Emerging Issues Task Force). These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.   Update No. 2013-11Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.   falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18726-107790 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 22 -Paragraph 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18861-107790 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18743-107790 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18854-107790 false0Note 3 - Summary of Significant Accounting PoliciesfalseNote 3 - Summary of Significant Accounting PoliciesUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://signpathpharma.com/20130630/role/idr_DisclosureNote3SummaryOfSignificantAccountingPolicies12