7. Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

7. Fair Value Measurements

7. Fair Value Measurements

On a recurring basis, we measure certain financial assets and liabilities based upon the fair value hierarchy as described in the Company’s significant accounting policies in Note 1. The following table presents information about the Company’s liabilities measured at fair value as of September 30, 2015 and December 31, 2014:

	Level 1	Level 2	Level 3	Fair Value at September 30, 2015
Liabilities
Derivative Liability	-	$ 467,865		$ 467,865

	Level 1	Level 2	Level 3	Fair Value at December 31, 2014
Liabilities
Derivative Liability	-	$ 48,851	-	$ 48,851

The fair value changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 2), relate solely to the derivative liability as follows:

	Amount
Balance at December 31, 2014	$ 48,851
New warrant issued with stock/convertible debentures	780,125
Fair value adjustment	(348,614)
Decrease due to Conversion of convertible debenture	(12,497)
Balance at September 30, 2015	$ 467,865