Quarterly report pursuant to Section 13 or 15(d)

Fair Value (Tables)

v2.4.0.8
Fair Value (Tables)
9 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract]  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table summarizes the valuation of the Company’s derivatives by the above fair value hierarchy levels as of September 30, 2014 and December 31, 2013 using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3):
 
 
 
 
 
Quoted Prices
 
 
 
 
 
 
 
 
 
In Active
 
Significant
 
 
 
 
 
 
 
Markets for
 
Other
 
Significant
 
 
 
 
 
Identical
 
Observable
 
Unobservable
 
 
 
 
 
Liabilities
 
Inputs
 
Inputs
 
 
 
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
 
 
Warrant liability
 
$
2,303,561
 
$
-
 
$
-
 
$
2,303,561
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance - September 30, 2014
 
$
2,303,561
 
$
-
 
$
-
 
$
2,303,561
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrant liability
 
$
231,200
 
$
-
 
$
-
 
$
231,200
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance - December 31, 2013
 
$
231,200
 
$
-
 
$
-
 
$
231,200
 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
Assumptions utilized in the valuation of Level 3 liabilities are described as follows:
 
 
 
For the Three Months Ended
 
For the Nine Months Ended
 
 
 
 
September 30
 
September 30,
 
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Risk-free interest rate
 
 
1.43% - 1.68
%
 
0.05% - 0.08
%
 
1.43% - 1.73
%
 
0.02% - 0.08
%
 
Expected term (years)
 
 
4.08 - 4.84
 
 
0.00
 
 
4.08 - 5.00
 
 
0.00 - 0.50
 
 
Expected volatility
 
 
164
%
 
65
%
 
164% - 168
%
 
65% - 99
%
 
Expected dividends
 
 
0.00
%
 
0.00
%
 
0.00
%
 
0.00
%
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table provides a summary of the changes in fair value, including net transfers in and/or out, of all Level 3 liabilities measured at fair value on a recurring basis using unobservable inputs during the nine months ended September 30, 2014 and 2013:
 
 
 
2014
 
2013
 
 
 
 
 
 
 
Balance - January 1,
 
$
231,200
 
$
38,300
 
 
 
 
 
 
 
 
 
Change in fair value of derivative liability
 
 
(12,400)
 
 
(64,500)
 
 
 
 
 
 
 
 
 
Value of warrants exercised
 
 
(144,439)
 
 
-
 
 
 
 
 
 
 
 
 
Issuance of derivative liability
 
 
2,229,200
 
 
434,200
 
 
 
 
 
 
 
 
 
Balance - September 30,
 
$
2,303,561
 
$
408,000