Quarterly report pursuant to Section 13 or 15(d)

14. Fair Value Disclosures (Tables)

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14. Fair Value Disclosures (Tables)
6 Months Ended
Jun. 30, 2014
Fair Value Disclosures Tables  
Fair value of the liability measured at fair value on a recurring basis

The following table represents the fair value of the liability measured at fair value on a recurring basis:

 

      Level 1   Level 2   Level 3   Total
As of June 30, 2014              
Non-current liabilities:              
  Derivative liability (see notes 6 and 8 )  $               -       $                      -       $   7,082,401    $       7,082,401
                   
As of December 31, 2013              
Non-current liabilities:              
  Derivative liability   $               -       $       10,515,472    $                     -       $     10,515,472

Changes in the derivative liability categorized within Level 3 of the fair value hierarchy

The following table reconciles the changes in the derivative liability categorized within Level 3 of the fair value hierarchy.

 

Balance at December 31, 2013   $ -  
Transfer of Level 2 balance (a)     10,515,472  
Issuance of additional warrants     1,301,607  
Gains for the period:        
Included in earnings (loss)     (1,919,069 )
Included in other comprehensive income (loss)     -  
Modification of warrant contracts (see note 8)     (2,815,609 )
Balance at June 30, 2014   $ 7,082,401