• Filing Date: 2013-11-12
  • Form Type: 10-Q
  • Description: Quarterly report
v2.4.0.8
Fair Value Measurements
9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 11 - Fair Value Measurements
 
 
The Company adopted certain provisions of ASC Topic 820.  ASC 820 defines fair value, provides a consistent framework for measuring fair value under generally accepted accounting principles and expands fair value financial statement disclosure requirements.  ASC 820’s valuation techniques are based on observable and unobservable inputs.  Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions.  ASC 820 classifies these inputs into the following hierarchy:
 
 
Level 1
Quoted prices in active markets for identical assets or liabilities.  The Company's Level 1 assets consist of cash and cash equivalents.
 
 
Level 2
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
 
 
Level 3
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
 
 
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
 
 
September 30, 2013   Level 1     Level 2     Level 3     Total  
                         
Cash   $ 181,932     $ -     $ -     $ 181,932  
                                 
Total assets   $ 181,932     $ -     $ -     $ 181,932  
                                 
Original Issue Discount                                
  Senior Secured Convertible                                
  Promissory Notes   $ -     $ -     $ 2,400,000     $ 2,400,000  
                                 
 Total liabilities   $ -     $ -     $ 2,400,000     $ 2,400,000  
                                 
                                 
December 31, 2012   Level 1     Level 2     Level 3     Level 4  
                                 
Cash   $ 135,626     $ -     $ -     $ 135,626  
                                 
 Total assets   $ 135,626     $ -     $ -     $ 135,626  
                                 
Original Issue Discount                                
  Senior Secured Convertible                                
  Promissory Notes   $ -     $ -     $ 2,400,000     $ 2,400,000  
                                 
Total liabilities   $ -     $ -     $ 2,400,000     $ 2,400,000  
 
                                                                        
 
   
Original Issue Discount
Senior Secured Convertible
Promissory Notes
 
       
Balance, January 1, 2011   $ 1,459,209  
         
Realized gains/(losses)     -  
         
Unrealized gains/(losses) relating to     -  
 instruments still held at the reporting date        
         
Purchases, sales, issuances and settlements, net     -  
         
Discount on notes     -  
         
Amortization of discount on notes     1,200,791  
         
Conversion of notes to common stock     (260,000 )
         
Balance, December 31, 2011   $ 2,400,000  
         
Realized gains/(losses)     -  
         
Unrealized gains/(losses) relating to        
 instruments still held at the reporting date     -  
         
 Purchases, sales, issuances and settlements, net     -  
         
Discount on notes     -  
         
Amortization of discount on notes     -  
         
Balance, December 31, 2012   $ 2,400,000  
         
Balance, September 30, 2013   $ 2,400,000