| Schedule of liabilities measured at fair value |
| |
|
September 30, 2013
(Unaudited)
|
|
|
December 31, 2012
|
|
| |
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
609,050
|
|
|
$
|
609,050
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,616,325
|
|
|
$
|
1,616,325
|
|
|
Total warrant liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
609,050
|
|
|
$
|
609,050
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,616,325
|
|
|
$
|
1,616,325
|
|
|
The following table summarizes the liabilities measured at fair value on a recurring basis as of December 31, 2013: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | LIABILITIES: | | | | | | | | | | | | | | | | | Warrant liability | | $ | — | | | $ | — | | | $ | 140,550 | | | $ | 140,550 | | Total warrant liability | | $ | — | | | $ | — | | | $ | 140,550 | | | $ | 140,550 | |
The following table summarizes the liabilities measured at fair value on a recurring basis as of December 31, 2012: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | LIABILITIES: | | | | | | | | | | | | | | | | | Warrant liability | | $ | — | | | $ | — | | | $ | 1,616,325 | | | $ | 1,616,325 | | Total warrant liability | | $ | — | | | $ | — | | | $ | 1,616,325 | | | $ | 1,616,325 | |
|
| Schedule of estimated fair value of the warrant liability |
| |
|
September 30,
|
|
|
December 31,
|
|
| |
|
2013
|
|
|
2012
|
|
| |
|
(Unaudited)
|
|
|
|
|
|
Stock price
|
|
$
|
0.90
|
|
|
$
|
1.25
|
|
|
Strike price
|
|
$
|
2.50
|
|
|
$
|
2.50
|
|
|
Remaining contractual term (years)
|
|
|
2.3
|
|
|
|
3.1
|
|
|
Volatility
|
|
|
113.7
|
%
|
|
|
171.9
|
%
|
|
Adjusted volatility
|
|
|
99.7
|
%
|
|
|
121.1
|
%
|
|
Risk-free rate
|
|
|
0.4
|
%
|
|
|
0.4
|
%
|
|
Dividend yield
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
| | | December 31, | | | December 31, | | | | | 2013 | | | 2012 | | Stock price | | $ | 0.42 | | | $ | 1.25 | | Strike price | | $ | 2.50 | | | $ | 2.50 | | Remaining contractual term (years) | | | 2.1 | | | | 3.1 | | Volatility | | | 109.6 | % | | | | % | Adjusted volatility | | | 102.5 | % | | | | % | Risk-free rate | | | 0.4 | % | | | 0.4 | % | Dividend yield | | | 0 | % | | | 0 | % |
|