Derivative Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Financial Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the financial liabilities measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	As of June 30, 2012
	Level 1		Level 2		Level 3		Liabilities at Fair Value
Placement agent warrants		-		-		140,458		140,458
Total	$	-	$	-	$	140,458	$	140,458

	As of December 31, 2011 (Restated)
	Level 1		Level 2		Level 3		Liabilities at Fair Value
Derivative liability – conversion option	$	-	$	-	$	113,271	$	113,271
Derivative liability – warrants		-		-		1,875,463		1,875,463
Derivative liability – bonus warrants		-		-		70,343		70,343
Placement agent warrants		-		-		487,555		487,555
Total	$	-	$	-	$	2,546,632	$	2,546,632

Reconciliation of Derivative Liability Used in Determining Fair Value

The following tables are a reconciliation of the derivative liability for which Level 3 inputs were used in determining fair value:

	Conversion Option			Warrants			Bonus Warrants			Placement Agent Warrants
Beginning balance as of January 1, 2012	$	113,271		$	1,875,463		$	70,343		$	487,555
Change in fair value		(113,271	)		-			(13,309	)		(347,097	)
Credited to common stock upon issuance of warrants		-			(1,875,463	)		(57,034	)		-
Ending balance as of June 30, 2012	$	-		$	-		$	-		$	140,458

	Conversion Option			Warrants		Bonus Warrants			Placement Agent Warrants
Beginning balance as of January 1, 2011	$	-		$	-	$	-		$	-
Fair value of derivative liability		118,663			-		797,185			487,555
Change in fair value		(5,392	)		1,875,463		(492,111	)		-
Credited to common stock upon issuance of warrants		-			-		(234,731	)		-
Ending balance as of December 31, 2011	$	113,271		$	1,875,463	$	70,343		$	487,555