Derivative Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Liabilities [Abstract]

Schedule of Assumptions Used

The estimated fair values of the conversion option and the warrant derivative liabilities were computed by a third party using Monte Carlo simulations based on the following ranges for each assumption:

	At Issuances		December 31, 2013
Volatility	45% to 50.0	%	45.0	%
Risk-free interest rate	0.3% to 0.4	%	0.3	%
Dividend yield	0.0	%	0.0	%
Expected life	1.8 to 3.0 years		1.7 years

Financial Liabilities Measured at Fair Value on Recurring Basis

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

	As of December 31, 2013
							Derivative
							Liabilities at
	Level 1		Level 2		Level 3		Fair Value
8% Convertible promissory notes:
Conversion option	$	-	$	-	$	12,400,000	$	12,400,000
Warrants		-		-		4,790,000		4,790,000
Derivative liabilities - Current		-		-		17,190,000		17,190,000
Placement agent warrants - Non-current		-		-		296,194		296,194
Derivative liabilities - Total	$	-	$	-	$	17,486,194	$	17,486,194

	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 table is a reconciliation of the derivative liability for which Level 3 inputs were used in determining fair value during the years ended December 31, 2013 and 2012:

	For the Year Ended December 31, 2013
							Credited to
	Balance -		Fair Value of				Common Stock		Balance -
	January 1,		Derivative		Change in		Upon Issuance		December 31,
	2013		Liability		Fair Value		of Warrants		2013
8% Convertible promissory notes:
Conversion option	$	610,000	$	919,554	$	10,870,446	$	-	$	12,400,000
Warrants		220,000		334,059		4,235,941		-		4,790,000
Derivative liabilities - Current		830,000		1,253,613		15,106,387		-		17,190,000
Placement agent warrants - Non-current		81,716		-		214,478		-		296,194
Derivative liabilities - Total	$	911,716	$	1,253,613	$	15,320,865	$	-	$	17,486,194

	For the Year Ended December 31, 2012
							Credited to
	Balance -		Fair Value of				Common Stock		Balance -
	January 1,		Derivative		Change in		Upon Issuance		December 31,
	2012		Liability		Fair Value		of Warrants		2012
8% Convertible promissory notes:
Conversion option	$	-	$	1,025,691	$	(415,691)	$	-	$	610,000
Warrants		-		443,309		(223,309)		-		220,000
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		1,469,000		(765,580)		(1,932,497)		830,000
Placement agent warrants - Non-current		487,555		-		(405,839)		-		81,716
Derivative liabilities - Total	$	2,546,632	$	1,469,000	$	(1,171,419)	$	(1,932,497)	$	911,716