Quarterly report pursuant to Section 13 or 15(d)

NOTE 6: DERIVATIVE LIABILITIES (Tables)

v2.4.1.9
NOTE 6: DERIVATIVE LIABILITIES (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] The Company estimated the fair value of the derivative liabilities using the Black-Scholes option pricing model and the following key assumptions during 2014 and 2013:

   
2014
   
2013
 
Expected dividends
   
-
%
   
-
%
Expected term (years)
   
0.04 - 4.42
     
0.17 - 5.01
 
Volatility
   
71% - 199
%
   
105% - 155
%
Risk-free rate
   
0.07% - 1.82
%
   
0.09% - 1.34
%
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] The following table sets forth by level with the fair value hierarchy the Company’s assets and liabilities measured at fair value as of September 30, 2014 and December 31, 2013:

   
Level 1
   
Level 2
   
Level 3
   
Total
 
September 30, 2014:
                       
Derivative liabilities
 
$
-
   
$
-
   
$
714,505
   
$
714,505
 
                                 
December 31, 2013:
                               
Derivative liabilities
 
$
-
   
$
-
   
$
355,281
   
$
355,281
 
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] The below table presents the change in the fair value of the derivative liabilities during the nine months ended September 30, 2014:

Fair value as of December 31, 2013
 
$
355,281
 
Fair value on the dates of issuance recorded as debt discounts
   
1,047,514
 
Fair value on the dates of issuance recognized as loss on derivatives
   
629,026
 
Fair value on the dates of issuance reclassified from equity
   
6,026
 
Resolution of derivative liabilities
   
(1,599,990
)
Loss on change in fair value of derivatives
   
276,648
 
Fair value as of September 30, 2014
 
$
714,505