Derivative Liabilities (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Liabilities [Abstract]

Schedule of Assumptions Used

The estimated fair values of the derivative liabilities for the conversion options on the 8% Notes issued during the nine months ended September 30, 2013 and the warrants issued therewith, were computed by a third party using Monte Carlo simulations based on the following ranges for each assumption:

	At Issuances			September 30, 2013
Volatility		50.0	%		45.0	%
Risk-free interest rate		0.4	%		0.3	%
Dividend yield		0.0	%		0.0	%
Expected life, in years		2.4 to 2.6			1.9

Financial Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the financial liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	As of September 30, 2013
							Derivative
							Liabilities at
	Level 1		Level 2		Level 3		Fair Value
8% convertible promissory notes:
Conversion option	$	-	$	-	$	1,060,000	$	1,060,000
Warrants		-		-		270,000		270,000
Derivative liabilities - Current		-		-		1,330,000		1,330,000
Placement agent warrants - non-current		-		-		122,357		122,357
Derivative liabilities - Total	$	-	$	-	$	1,452,357	$	1,452,357

	As of December 31, 2012
							Derivative
							Liabilities at
	Level 1		Level 2		Level 3		Fair Value
8% convertible promissory notes:
Conversion option	$	-	$	-	$	610,000	$	610,000
Warrants		-		-		220,000		220,000
Derivative liabilities - Current		-		-		830,000		830,000
Placement agent warrants - non-current		-		-		81,716		81,716
Derivative liabilities - Total	$	-	$	-	$	911,716	$	911,716

Reconciliation of Derivative Liability Used in Determining Fair Value

The following tables are a reconciliation of the derivative liabilities for which Level 3 inputs were used in determining fair value during the three and nine months ended September 30, 2013 and 2012:

	For the Three Months Ended September 30, 2013
							Credited to
							Common
	Balance -		Fair Value of				Stock		Balance -
	July 1,		Derivative		Change in		Upon Issuance		September 30,
	2013		Liability		Fair Value		of Warrants		2013
8% convertible promissory notes:
Conversion option	$	1,520,000	$	-	$	(460,000)	$	-	$	1,060,000
Warrants		540,000		-		(270,000)		-		270,000
Derivative liabilities - current		2,060,000		-		(730,000)		-		1,330,000
Placement agent warrants - non-current		122,357		-		-		-		122,357
Derivative liabilities - total	$	2,182,357	$	-	$	(730,000)	$	-	$	1,452,357

	For the Three Months Ended September 30, 2012
							Credited to
							Common
	Balance -		Fair Value of				Stock		Balance -
	July 1,		Derivative		Change in		Upon Issuance		September 30,
	2012		Liability		Fair Value		of Warrants		2012
8% convertible promissory notes:
Conversion option	$	-	$	982,932	$	(262,932)	$	-	$	720,000
Warrants		-		427,888		(127,888)		-		300,000
Derivative liabilities - current		-		1,410,820		(390,820)		-		1,020,000
Placement agent warrants - non-current		140,458		-		(54,864)		-		85,594
Derivative liabilities - total	$	140,458	$	1,410,820	$	(445,684)	$	-	$	1,105,594

	For the Nine Months Ended September 30, 2013
							Credited to
			Fair Value of				Common Stock		Balance -
	Balance -		Derivative		Change in		Upon Issuance		September 30,
	January 1, 2013		Liability		Fair Value		of Warrants		2013
8% convertible promissory notes:
Conversion option	$	610,000	$	545,426	$	(95,426)	$	-	$	1,060,000
Warrants		220,000		249,151		(199,151)		-		270,000
Derivative liabilities - current		830,000		794,577		(294,577)		-		1,330,000
Placement agent warrants - non-current		81,716				40,641		-		122,357
Derivative liabilities - total	$	911,716	$	794,577	$	(253,936)	$	-	$	1,452,357

	For the Nine Months Ended September 30, 2012
							Credited to
			Fair Value of				Common Stock		Balance -
	Balance -		Derivative		Change in		Upon Issuance		September 30,
	January 1, 2012		Liability		Fair Value		of Warrants		2012
8% convertible promissory notes:
Conversion option	$	-	$	982,932	$	(262,932)	$	-	$	720,000
Warrants		-		427,888		(127,888)		-		300,000
12% convertible revolving credit agreement:
Conversion option		113,271		-		(113,271)		-		-
10% convertible preferred stock:
Warrants		1,875,463		-		-		(1,875,463)		-
10% convertible debentures:
Warrants		70,343		-		(13,309)		(57,034)		-
Derivative liabilities - current		2,059,077		1,410,820		(517,400)		(1,932,497)		1,020,000
Placement agent warrants - non-current		487,555		-		(401,961)		-		85,594
Derivative liabilities - total	$	2,546,632	$	1,410,820	$	(919,361)	$	(1,932,497)	$	1,105,591