Annual report pursuant to Section 13 and 15(d)

Derivative Liability and Fair Value Measurements (Tables)

v2.4.0.8
Derivative Liability and Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis
We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows at December 30, 2013:
 
 
 
Total
 
(Level 1)
 
(Level 2)
 
Level (3)
 
Assets
 
$
 
$
 
$
 
$
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets measured at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Liability
 
 
12,035,816
 
 
 
 
 
 
12,035,816
 
Total liabilities measured at fair value (Long-Term)
 
$
12,035,816
 
$
 
$
 
$
12,035,816
 
Schedule of Fair Value Level 3 warrant liabilities
 
 
December
31, 2013
 
December
31, 2012
 
Fair value – beginning of period
 
$
 
$
 
Warrants issue
 
 
9,067,283
 
 
 
Reclassification of warrant liabilities to Additional Paid-in Capital
 
 
(526,245)
 
 
 
Reclassification of warrant exercises to Additional Paid-in Capital
 
 
(80,500)
 
 
 
Change in fair value
 
 
3,575,278
 
 
 
 
 
 
 
 
 
 
 
Fair value – end of period
 
$
12,035,816
 
$
 
Schedule Of Fair Value Of Warrants
The following summary table shows the assumptions used to compute the fair value of the warrants granted during 2013 at issuance and as of December 31, 2013 is:
 
 
 
December 31, 2013
 
 
At Issuance
 
Assumptions for Pricing Model:
 
 
 
 
 
 
 
 
Expected term in years
 
 
4.2 to 4.6
 
 
 
4.62 to 5.0
 
Volatility range for years 1 to 5
 
 
56
%
 
 
61 to 110
%
Risk-free interest rate
 
 
1.75
%
 
 
0.77 to 1.41
%
Expected annual dividends
 
 
None
 
 
 
None
 
 
 
 
 
 
 
 
 
 
Value of warrants issued:
 
 
 
 
 
 
 
 
Fair value of warrants
 
$
12,035,816
 
 
$
9,067,283