Annual report pursuant to Section 13 and 15(d)

FAIR VALUE MEASUREMENT (Tables)

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FAIR VALUE MEASUREMENT (Tables)
12 Months Ended
Dec. 31, 2014
Fair Value Measurement Tables  
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 December 31, 2014:

 

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

 

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, 2013:

 

    Level 1     Level 2     Level 3     Total  
Debt derivative liability   $       $       $ 1,019,103       1,019,103  
Warrant liability   $       $       $ 287,731       287,731  
Total   $ -     $ -     $ 1,306,834     $ 1,306,834  
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 for the years ended December 31, 2014 and 2013:

 

    Debt Derivative Liability     Warrant Liability  
Balance, December 31, 2012   $ 80,039       -  
Transfers in (out):                
Initial fair value of debt derivative at note issuance     76,480       99,061  
Mark-to-market at December 31, 2013:                
Embedded derivative     862,584       188,670  
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