Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Derivative Liabilities at Fair Value

Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of June 30, 2015:

	Level 1		Level 2		Level 3		Total
Debt derivative liability	$	-	$	-	$	116,366		116,366
Warrant liability	$		$	-	$	39,488		39,488
Total	$	-	$	-	$	155,854	$	155,854

Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2014:

	Level 1		Level 2		Level 3		Total
Warrant liability	$	-	$	-	$	98,702	$	98,702
Total	$	-	$	-	$	98,702	$	98,702

Changes in the fair value of the Company's Level 3 financial liabilities

The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities from December 31, 2013 through June 30, 2015:

	Debt Derivative Liability			Warrant Liability
Balance, December 31, 2013	$	1,019,103			287,731
Transfers in (out):
Fair value of debt derivative at note extinguishment transferred to equity		(800,987	)
Fair value of warrant liability at date of cancellation transferred to equity					(129,551	)
Mark-to-market at December 31, 2014:
Embedded derivative		(218,116	)		(59,478	)
Balance, December 31, 2014		-			98,702
Transfers in (out):
Initial fair value of debt derivative at note issuance		161,320
Mark-to-market at June 30, 2015:
Embedded derivative		(44,954	)		(59,214	)
Balance, June 30, 2015	$	116,366		$	39,488