Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Measurements [Abstract]

Balances of Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of liabilities measured at fair value on a recurring basis by level as of March 31, 2015:

	Fair Value Measurements Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
As of March 31, 2015
Derivative liability	$	-	$	-	$	466,587	$	466,587
Warrant liability		-		-		1,223,601		1,223,601
Total	$	-	$	-	$	1,690,188	$	1,690,188

Changes in Liabilities with Significant Unobservable Inputs (Level 3)

The following table presents changes in the liabilities with significant unobservable inputs (Level 3) for the nine months ended March 31, 2015:

	Warrant		Derivative			Total
	Liability		Liability			Liability
Balance December 31, 2014	$	764,958	$	296,881		$	1,061,839
Elimination on extinguishment of debt		-		(49,235	)		(49,235	)
Change in estimated fair value (1)		458,643		218,941			677,584
Balance March 31, 2015	$	1,223,601	$	466,587		$	1,690,188

(1) Included in the Condensed Statements of Operation on the line “Change in fair value of derivative and warrant liabilities.”

Derivative and Warrant Liabilities

Management used the following inputs to value the Derivative and Warrant Liabilities for the nine months ended March 31, 2015:

	Derivative Liability			Warrant Liability
Expected term		1 year			5 years
Exercise price	$	0.045 - $0.099		$	0.075 - $0.1287
Expected volatility		287	%		219	%
Expected dividends		None			None
Risk-free interest rate		0.26	%		1.37	%
Forfeitures		None			None