Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Assets and Liabilities Measured On Recurring and Nonrecurring Basis [Line Items]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table sets forth Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy:

Fair Value measurements at June 30, 2013 :

	Level 1		Level 2		Level 3		Total
Assets
Money Market Accounts (a)	$	200,000	$	-	$	-	$	200,000
Targets (b)	$	246,351	$	-	$	-	$	246,351
Liabilities
MDFA Warrant Liability 1	$	-	$	-	$	13,350	$	13,350
MDFA Warrant Liability 2	$	-	$	-	$	16,079	$	16,079
Hercules Warrant Liability	$	-	$	-	$	851,620	$	851,620
Convertible Debt Warrant Liability	$	-	$	-	$	1,064,416	$	1,064,416
Conversion Feature	$	-	$	-	$	1,064,828	$	1,064,828

	Level 1		Level 2		Level 3		Total
Assets
Money Market Accounts (a)	$	239,504	$	-	$	-	$	239,504
Targets (b)	$	315,350	$	-	$	-	$	315,350
Liabilities
MDFA Warrant Liability	$	-	$	-	$	111,811	$	111,811

Black-scholes option pricing model

The Company values the warrant liabilities issued in conjunction with the MDFA Note Payable (Note 5) using a Black-Scholes option pricing model, at each reporting date, which incorporates assumptions about underlying asset value, volatility, expected remaining life and risk free interest rate. The assumptions used at June 30, 2013 and December 31, 2012, respectively, were as follows:

	June 30,			December 31,
	2013			2012
Fair value of underlying stock per share	$	.31		$	3.00
Risk-free interest rate		1.81% -2.24	%		1.48	%
Expected term		8.29- 10 years			8.79 years
Dividend yield		0.0	%		0.0	%
Volatility		66.00% - 70.21	%		46.67	%

The Company values the warrant and derivative liabilities issued in conjunction with the Hercules Note Payable and the Convertible Debt (Note 5) using a Black-Scholes option pricing model, at each reporting date, which incorporates assumptions about underlying asset value, volatility, expected remaining life and risk free interest rate. The assumptions used at June 30, 2013 were as follows:

	Hercules Warrants			Prior Note Warrants			Conversion Feature
Fair value of underlying stock per share	$	1.99		$	.31		$	.31
Risk-free interest rate		1.96	%		1.04	%		1.04	%
Expected term		6.85 years			3.29-3.85 years			3.79-4.35 years
Dividend yield		0.00	%		0.00	%		0.00	%
Volatility		71.59	%		90.78	%		86.91	%

Change in Fair Value of Warrant

The change in fair value during the period is as follows:

	Targets		MDFA Warrants 1		MDFA Warrants 2		Hercules Warrants		Convertible Debt Warrants		Conversion Feature		Total Fair Value
Balance 12/31/12	$	315,350	$	111,811	$	-	$	-	$	-	$	-	$	427,161
Initial Measure May 2013		-		-		15,330		845,922		1,027,770		1,028,517		2,917,539
Mark to Market		(68,999)		(98,462)		750		5,698		36,646		36,311		(88,056)
Balance 6/30/13	$	246,351	$	13,349	$	16,080	$	851,620	$	1,064,416	$	1,064,828	$	3,256,644