Fair Value of Financial Instruments (Tables)

6 Months Ended

Jul. 31, 2012

Carrying Amounts And Fair Values Of Financial Instruments

The carrying amounts and fair values of the Company's financial instruments are presented below as of July 31, 2012:

	Carrying Amount		Fair Value (a)
Level 3 Liabilities
Derivative liability	$	(a)	$	3,109,152
Warrant liability		(a)		454,585
	$		$	3,563,737

(a) No cost is associated with these liabilities (see Note 9)

Summary Of Level 3 Inputs Measurement On Recurring Basis

The following summarizes the activity of Level 3 inputs measured on a recurring basis for the three months ended July 31, 2012:

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

	Derivative		Warrant		Total
Balance at January 31, 2012	$	653,026	$	120,000	$	773,026
Additions		-		-		-
Exercises		-		-		-
Adjustment resulting from change in fair value recognized in earnings (1)		2,456,126		334,585		2,790,711
Balance at July 31, 2012	$	3,109,152	$	454,585	$	3,563,737

(1) The amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to liabilities held at the reporting date. The unrealized gain is recorded in unrealized gain on change in fair value of warrant and derivative liabilities in the accompanying condensed and consolidated statement of operations.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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