Warrant Liabilities (Tables)

9 Months Ended

Sep. 30, 2013

Summary of assumptions used in connection with the valuation of warrants issued

	September 30, 2013			Initial Measurement June 25, 2013
Number of shares underlying the warrants		5,309,438			5,416,851
Exercise price	$	1.65		$	1.65
Volatility		142	%		140	%
Risk-free interest rate		1.39	%		1.49	%
Expected dividend yield		0			0
Expected warrant life (years)		4.74			5
Stock Price	$	2.09		$	0.96

Summary of fair value measurements using significant unobservable inputs (Level 3)

		Initial Measurement June 25, 2013				Decrease in Warrants Exercised in 2013				Increase in Fair Value				September 30, 2013
Warrant liability		$	4,827,788			$	(201,311	)		$	5,349,422			$	9,975,899

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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