Derivative Liabilities

12 Months Ended

Dec. 31, 2013

Derivative Liabilities

Derivative liabilities

11. Derivative liabilities

The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company has entered into certain other financial instruments and contracts, such as debt financing arrangements with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. These instruments are required to be carried as derivative liabilities, at fair value.

The following table discloses the fair value of the Company’s derivative liabilities as of December 31, 2013 and 2012. The Company held no asset derivatives at either reporting date.

	Liability Derivatives
	December 31, 2013				December 31, 2012
	Balance SheetLocation		FairValue		Balance SheetLocation		FairValue
Derivatives not designated as hedging instruments
Secured Promissory Notes Warrants		Derivative Liabilities	$	0		Derivative Liabilities	$	68,250

The following table summarizes liabilities measured at fair value on a recurring basis for the periods presented:

	December 31, 2013								December 31, 2012
Fair Value Measurements Using:	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Liabilities
Derivative Liabilities	$	—	$	—	$	—	$	—	$	—	$	68,250	$	—	$	68,250