Warrant Liabilities (Tables)

3 Months Ended

Mar. 31, 2014

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

December 31, 2013			January 22, 2014			March 31, 2014

Number of shares underlying the warrants		5,309,438			5,309,438			5,059,438
Exercise price	$	1.65		$	1.65		$	1.65
Volatility		135	%		135	%		133	%
Risk-free interest rate		1.75	%		1.30	%		1.32	%
Expected dividend yield		0			0			0
Expected warrant life (years)		4.5			4.42			4.25
Stock Price	$	1.80		$	2.29		$	2.24

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

	December 31, 2013				Decrease from Warrants Exercised in 2014				Increase in Fair Value				March 31, 2014
Warrant liability		$	8,281,247			$	(502,025	)		$	1,742,090			$	9,521,312

- 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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