Fair Value Hierarchy

6 Months Ended

Jun. 30, 2011

Fair Value Hierarchy

Fair Value Hierarchy

Note 6. Fair Value Hierarchy

The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity's own assumptions (unobservable inputs). The hierarchy consists of three levels:

• Level one—Quoted market prices in active markets for identical assets or liabilities;

• Level two—Inputs other than level one inputs that are either directly or indirectly observable; and

• Level three—Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.

Determining which category an asset or liability falls within the hierarchy requires significant judgment. We evaluate our hierarchy disclosures each quarter. Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

Liabilities	Level 1		Level 2		Level 3		June 30, 2011
Fair value of common stock warrants (derivative liabilities)	$	—	$	—	$	272,502	$	272,502
Total	$	—	$	—	$	272,502	$	272,502
Liabilities	Level 1		Level 2		Level 3		December 31, 2010
Fair value of common stock warrants (derivative liabilities)	$	—	$	—	$	573,073	$	573,073
Total	$	—	$	—	$	573,073	$	573,073