FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

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

December 31, 2013	Level I		Level II		Level III		Total

Derivative liability						318,000		318,000
Total liabilities	$	-	$	-	$	318,000	$	318,000

December 31, 2012	Level I		Level II		Level III		Total

Derivative liability						227,000		227,000
Total liabilities	$	-	$	-	$	227,000	$	227,000

Liabilities measured at fair value on a recurring basis using significant unobservable inputs

Liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level3):

	Derivative Liabilities
January 1, 2013	$	(227,000)
Loss on fair market valuation of derivatives		(91,000)
December 31, 2013	$	(318,000)

- 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.

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