Derivative Liabilities (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Liabilities [Abstract]

Schedule of Assumptions Used

The estimated fair values of the derivative liabilities associated with the 8% Notes (2012) and the 12% Notes, for the conversion options and warrants issued through and as of June 30, 2015 were computed by a third party using Monte Carlo simulations based on the following ranges for each assumption:

			June 30,
	At Issuances		2015
Volatility	40.0% to 45.0	%	35.0	%
Risk-free interest rate	0.11% to 0.3	%	0.01	%
Dividend yield	0.0	%	0.0	%
Expected life	1.1 to 1.6 years		0.17 years

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, 2015 and December 31, 2014, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	As of June 30, 2015
							Derivative
							Liabilities
							at
	Level 1		Level 2		Level 3		Fair Value
12% Convertible promissory notes:
Conversion option	$	-	$	-	$	176,000	$	176,000
Derivative liabilities - Current		-		-		176,000		176,000
Placement agent warrants - Non-current		-		-		121		121
Derivative liabilities - Total	$	-	$	-	$	176,121	$	176,121

	As of December 31, 2014
							Derivative
							Liabilities
							at
	Level 1		Level 2		Level 3		Fair Value
8% Convertible promissory notes:
Conversion option	$	-	$	-	$	1,984,000	$	1,984,000
12% Convertible promissory notes:
Conversion option		-		-		69,000		69,000
Derivative liabilities - Current		-		-		2,053,000		2,053,000
Placement agent warrants - Non-current		-		-		52,720		52,720
Derivative liabilities - Total	$	-	$	-	$	2,105,720	$	2,105,720

Reconciliation of Derivative Liability Used in Determining Fair Value

The following table is a reconciliation of the derivative liabilities for which Level 3 inputs were used in determining fair value during the three and six months ended June 30, 2015 and 2014:

	For the Three Months Ended June 30, 2015
			Fair Value
	Balance -		of				Balance -
	April 1,		Derivative		Change in		June 30,
	2015		Liability		Fair Value		2015
8% Convertible promissory notes:
Conversion option	$	381,000	$	-	$	(381,000)	$	-
12% Convertible promissory notes:
Conversion option		158,000		-		18,000		176,000
Derivative liabilities - Current		539,000		-		(363,000)		176,000
Placement agent warrants - Non-current		52,720		-		(52,599)		121
Derivative liabilities - Total	$	591,720	$	-	$	(415,599)	$	176,121

	For the Six Months Ended June 30, 2015
			Fair Value
	Balance -		of				Balance -
	January 1,		Derivative		Change in		June 30,
	2015		Liability		Fair Value		2015
8% Convertible promissory notes:
Conversion option	$	1,984,000	$	-	$	(1,984,000)	$	-
12% Convertible promissory notes:
Conversion option		69,000		-		107,000		176,000
Derivative liabilities - Current		2,053,000		-		(1,877,000)		176,000
Placement agent warrants - Non-current		52,720		-		(52,599)		121
Derivative liabilities - Total	$	2,105,720	$	-	$	(1,929,599)	$	176,121

	For the Three Months Ended June 30, 2014
			Fair Value
	Balance -		of				Balance -
	April 1,		Derivative		Change in		June 30,
	2014		Liability		Fair Value		2014
8% Convertible promissory notes:
Conversion option	$	8,404,000	$	2,960,000	$	(669,000)	$	10,695,000
Warrants		3,351,000		-		(3,351,000)		-
Derivative liabilities - Current		11,755,000		2,960,000		(4,020,000)		10,695,000
Placement agent warrants - Non-current		175,221		-		(55,518)		119,703
Derivative liabilities - Total	$	11,930,221	$	2,960,000	$	(4,075,518)	$	10,814,703

	For the Six Months Ended June 30, 2014
			Fair Value
	Balance -		of				Balance -
	January 1,		Derivative		Change in		June 30,
	2014		Liability		Fair Value		2014
8% Convertible promissory notes:
Conversion option	$	12,400,000	$	3,985,139	$	(5,690,139)	$	10,695,000
Warrants		4,790,000		391,365		(5,181,365)		-
Derivative liabilities - Current		17,190,000		4,376,504		(10,871,504)		10,695,000
Placement agent warrants - Non-current		296,194		-		(176,491)		119,703
Derivative liabilities - Total	$	17,486,194	$	4,376,504	$	(11,047,995)	$	10,814,703