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Fair Value Measurements (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Fair Value Disclosures [Abstract]    
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table summarizes the Company's assets and liabilities measured at fair value on a recurring basis at March 31, 2014:
 
 
 
Fair Value
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Convertible promissory notes payable derivative liability
 
$
189,300
 
$
-
 
$
-
 
$
189,300
 
Series A-1 preferred stock derivative liability
 
 
5,400
 
 
-
 
 
-
 
 
5,400
 
Common stock warrants
 
 
460,580
 
 
-
 
 
-
 
 
460,580
 
Total
 
$
655,280
 
$
-
 
$
-
 
$
655,280
 
The following table summarizes the Company's assets and liabilities measured at fair value on a recurring basis at December 31, 2013:
 
 
 
Fair Value
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Promissory notes payable derivative liability
 
$
534,975
 
$
-
 
$
-
 
$
534,975
 
Series A-1 preferred stock derivative liability
 
 
56,926
 
 
-
 
 
-
 
 
56,926
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
591,901
 
$
-
 
$
-
 
$
591,901
 
Schedule Of Changes In Fair Value Derivative Liability
The Company estimated the fair value of the derivative liability using the Black-Scholes option pricing model. The fair value of the derivative liability as of March 31, 2014 was estimated using the following assumptions:
 
Expected volatility
 
80
%
Risk free rate
 
1.61
%
Dividend yield
 
0
%
Expected term (in years)
 
5.00
 
 
Schedule of Changes in Fair Value of Company's Level 3 Liabilities
The following sets forth a summary of changes in fair value of the Company’s level 3 liabilities measured on a recurring basis for the three months ended March 31, 2014 and for the period from January 12, 2012 (inception) to March 31, 2014:
 
 
 
Convertible
 
Series A-1
 
 
 
 
 
 
Notes Payable
 
Preferred Stock
 
Common
 
 
 
Derivative
 
Derivative
 
Stock
 
 
 
Liability
 
Liability
 
Warrants
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2013
 
$
534,975
 
$
56,926
 
$
-
 
Extinguishment
 
 
(118,300)
 
 
-
 
 
-
 
Fair value at issuance
 
 
189,300
 
 
-
 
 
466,706
 
Change in fair value
 
 
(416,675)
 
 
(51,526)
 
 
(6,126)
 
Balance at March 31, 2014
 
$
189,300
 
$
5,400
 
$
460,580
 
The following sets forth a summary of changes in fair value of the Company’s level 3 liabilities measured on a recurring basis for the year ended December 31, 2013 and for the period from January 12, 2012 (inception) to December 31, 2013:
 
 
 
Promissory
 
Series A-1
 
 
 
Notes Payable
 
Preferred Stock
 
 
 
Derivative Liability
 
Derivative Liability
 
Balance at December 31, 2012
 
$
-
 
$
-
 
Fair value at issuance
 
 
582,903
 
 
548,465
 
Change in fair value
 
 
(47,928)
 
 
(491,539)
 
 
 
 
 
 
 
 
 
Balance at December 31, 2013
 
$
534,975
 
$
56,926