Quarterly report pursuant to Section 13 or 15(d)

NOTE 6: DERIVATIVE LIABILITIES (Tables)

v3.3.1.900
NOTE 6: DERIVATIVE LIABILITIES (Tables)
 6 Months Ended
Jun. 30, 2015
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:

   
2015
   
2014
 
Expected dividends
   
-
%
   
-
%
Expected term (years)
   
0.04 – 4.17
     
0.01 – 4.67
 
Volatility
   
156% - 237
%
   
130% - 223
%
Risk-free rate
   
0.03% - 1.37
%
   
0.01% - 1.82
%
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 June 30, 2015 and December 31, 2014:

   
Level 1
   
Level 2
   
Level 3
   
Total
 
June 30, 2015:
                       
   Derivative liabilities – convertible debt
 
$
-
   
$
-
   
$
11,244,488
   
$
11,244,488
 
   Derivative liabilities – warrants
   
-
     
-
     
1,023,985
     
1,023,985
 
   Derivative liabilities – nonemployee options
   
-
     
-
     
16,295
     
16,295
 
                                 
December 31, 2014:
                               
   Derivative liabilities – convertible debt
 
$
-
   
$
-
   
$
1,550,703
   
$
1,550,703
 
   Derivative liabilities – warrants
   
-
     
-
     
214,565
     
214,565
 
   Derivative liabilities – nonemployee options
   
-
     
-
     
427
     
427
 
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 six months ended June 30, 2015:

Fair value as of December 31, 2014
 
$
1,765,695
 
  Fair value on the dates of issuance recorded as debt discounts
   
1,867,258
 
  Fair value on the dates of issuance recognized as loss on derivatives
   
8,365,937
 
  Fair value on the dates of issuance reclassified from equity
   
-
 
  Resolution of derivative liabilities
   
-
 
  Loss on change in fair value of derivatives
   
285,878
 
Fair value as of June 30, 2014
 
$
12,284,768