Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Of Financial Instruments Tables

Fair Value of Financial Instruments

Assets and liabilities measured at fair value on a recurring basis are as follows at March 31, 2015:

Fair Value of Financial Instruments

	Total		(Level 1)		(Level 2)		(Level 3)
Assets	$	-	$	-	$	-	$	-
Total assets measured at fair value	$	-	$	-	$	-	$	-
Liabilities
Derivative Liability	$	258,965	$	-	$	-	$	258,965
Total liabilities measured at fair value	$	258,965	$	-	$	-	$	258,965

Fair value of the derivative liability

For purpose of determining the fair market value of the derivative liability for the warrants, the Company used Black Scholes option valuation model. The significant assumptions used in the Black Scholes valuation of the derivative are as follows:

Risk free interest rate	0.56		%
Stock volatility factor		26.08	%
Months to Maturity		20 Months
Expected dividend yield		None

For recurring fair value measurements

For recurring fair value measurements categorized within Level 3 of the fair value hierarchy, a reconciliation from the opening balances to the closing balances, disclosing separately changes during the period attributable to the following:  Total gains or losses for the period recognized in earnings, and the line item(s) in the income statement in which those gains or losses are recognized.:

Beginning balance as of January 1, 2014	$	268,403
Fair value of derivative liabilities issued		0
Net Loss/Gain on change in derivative liability		(9,438	)
Ending balance as of March 31, 2015	$	258,965