Derivative Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Liabilities [Abstract]

Schedule of Assumptions Used

The estimated fair values of the conversion option and the warrant derivative liabilities were computed by a third party using Monte Carlo simulations based on the following ranges for each assumption:

	At Issuances			December 31, 2012
Volatility		50.0	%		50.0	%
Risk-free interest rate		0.3% to 0.4	%		0.3	%
Dividend yield		0.0	%		0.0	%
Expected life		2.6 to 3.0 years			2.7 years

Financial Liabilities Measured at Fair Value on Recurring Basis

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

	As of December 31, 2012
							Derivative
							Liabilities at
	Level 1		Level 2		Level 3		Fair Value
8% Convertible promissory notes:
Conversion option	$	-	$	-	$	610,000	$	610,000
Warrants		-		-		220,000		220,000
Derivative liabilities - Current		-		-		830,000		830,000
Placement agent warrants - Non-current		-		-		81,716		81,716
Derivative liabilities - Total	$	-	$	-	$	911,716	$	911,716

	As of December 31, 2011 (Restated)
							Derivative
							Liabilities at
	Level 1		Level 2		Level 3		Fair Value
Convertible revolving credit agreement:
Conversion option	$	-	$	-	$	113,271	$	113,271
10% convertible preferred stock:
Warrants		-		-		1,875,463		1,875,463
10% convertible debentures:
Warrants		-		-		70,343		70,343
Derivative liabilities - Current		-		-		2,059,077		2,059,077
Placement agent warrants - Non-current		-		-		487,555		487,555
Derivative liabilities - Total	$	-	$	-	$	2,546,632	$	2,546,632

Reconciliation of Derivative Liability Used in Determining Fair Value

The following table is a reconciliation of the derivative liability for which Level 3 inputs were used in determining fair value during the years ended December 31, 2012 and 2011:

	For the Year Ended December 31, 2012
								Credited to
			Fair Value of					Common Stock
	Balance -		Derivative		Change in			Upon Issuance			Balance -
	January 1, 2012		Liability		Fair Value			of Warrants			December 31, 2012
8% Convertible promissory notes:
Conversion option	$	-	$	1,025,691	$	(415,691	)	$	-		$	610,000
Warrants		-		443,309		(223,309	)		-			220,000
12% Convertible revolving credit agreement:
Conversion option		113,271		-		(113,271	)		-			-
10% convertible preferred stock:
Warrants		1,875,463		-		-			(1,875,463	)		-
10% convertible debentures:
Warrants		70,343		-		(13,309	)		(57,034	)		-
Derivative liabilities - Current		2,059,077		1,469,000		(765,580	)		(1,932,497	)		830,000
Placement agent warrants - Non-current		487,555		-		(405,839	)		-			81,716
Derivative liabilities - Total	$	2,546,632	$	1,469,000	$	(1,171,419	)	$	(1,932,497	)	$	911,716

	For the Year Ended December 31, 2011 (Restated)
								Credited to
			Fair Value of					Common Stock
	Balance -		Derivative		Change in			Upon Issuance			Balance -
	January 1, 2011		Liability		Fair Value			of Warrants			December 31, 2011
12% Convertible revolving credit agreement:
Conversion option	$	-	$	118,663	$	(5,392	)	$	-		$	113,271
10% convertible preferred stock:
Warrants		-		-		1,875,463			-			1,875,463
10% convertible debentures:
Warrants		-		797,185		(492,111	)		(234,731	)		70,343
Derivative liabilities - Current		-		915,848		1,377,960			(234,731	)		2,059,077
Placement agent warrants - Non-current		-		487,555		-			-			487,555
Derivative liabilities - Total	$	-	$	1,403,403	$	1,377,960		$	(234,731	)	$	2,546,632