Derivative Liability (Tables)

12 Months Ended

Dec. 31, 2012

Derivative liability [Abstract]

Additional information on warrants, issued for bridge financing

Issue Date	Number of warrants issued	Exercise price	Risk free interest rate	Expected life	Expected volatility	Dividend yield	Derivative liability value on date of issue
4/23/2012	5,349	$ 0.05	1.78%	3 years	205.3%	$ -	$ 50
11/15/2012	3,294	$ 0.05	1.58%	3 years	202.2%	$ -	$ 8

Key assumptions used to calculate fair value of warrant derivative liabilities

The Company uses a discounted Black-Scholes pricing model to calculate the fair value of its preferred share and warrant liabilities. Key assumptions used to apply these models are as follows:

	December 31, 2012	December 31, 2011
Expected term	0.3 to 2.80 years	0.5 to 2.90 years
Volatility	205.3%	204.7% - 315.2%
Risk-free interest rate	1.78	0.06 - 0.36%
Dividend yield	0%	0%

Changes in the market value of the Level 3 derivative liability

Changes in the fair value of the level 3 derivative liability for the year ended December 31, 2012, are as follows:

	Derivative Liability
Balance at January 1, 2011	$ 281
Additional liabilities recorded related to warrants issued for services	55
Additional liabilities recorded related to warrants issued for services	3
Gain on derivative liability	(211)
Balance at December 31, 2012	$ 128

Liabilities measured at fair value

Assets and liabilities measured at fair value as of December 31, 2012, are as follows:

	Value at December 31, 2012	Quoted prices in active markets	Significant other observable inputs	Significant unobservable inputs
		(Level 1)	(Level 2)	(Level 3)
Derivative liability	$ 128	$ -	$ -	$ 128