Derivative

Liability

Balance, December 31, 2011

$

-

Total (gains) losses

Initial fair value of debt derivative at note issuance

78,770

Mark-to-market at December 31, 2012:

 Embedded debt derivative

1,269

Balance, December 31, 2012

$

80,039

Net Loss for the year included in earnings relating to the liabilities

$ 

(1,269

)