| Schedule of Fair Value of Measured Assets and Liabilities |
Assets and liabilities
measured at fair value on a recurring basis are summarized in the following tables according to FASB ASC 820 pricing levels.
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Fair Value Measurement Using |
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Quoted prices |
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in active |
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Significant |
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markets of |
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other |
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Significant |
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identical |
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observable |
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Unobservable |
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Recorded |
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assets |
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inputs |
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Inputs |
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value |
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(Level 1) |
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(Level 2) |
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(Level 3) |
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| December 31, 2015 |
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| Assets: |
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| Available-for-sale securities |
|
$ |
31,322 |
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|
$ |
31,322 |
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|
$ |
- |
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|
$ |
- |
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| Liabilities: |
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| Embedded conversion feature |
|
$ |
1,094,000 |
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|
$ |
- |
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|
$ |
- |
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|
$ |
1,094,000 |
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| Warrants |
|
$ |
137,608 |
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$ |
137,608 |
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| December 31, 2014 |
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| Assets: |
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| Available-for-sale securities |
|
$ |
35,362 |
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|
$ |
35,362 |
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|
$ |
- |
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|
$ |
- |
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| Liabilities: |
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|
|
|
|
|
|
|
|
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|
|
|
|
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| Embedded conversion feature |
|
$ |
1,610,900 |
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|
$ |
- |
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|
$ |
- |
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|
$ |
1,610,900 |
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| Warrants |
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$ |
334,300 |
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|
$ |
- |
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|
$ |
- |
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|
$ |
334,300 |
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| Summary of Changes in Fair Value |
The following table
provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets measured at fair
value on a recurring basis using significant unobservable inputs during the year ended December 31, 2015 and 2014.
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Conversion |
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Warrants |
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Feature |
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Total |
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| Balance at January 1, 2014 |
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$ |
- |
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$ |
2,146,000 |
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$ |
2,146,000 |
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| Change in fair value of derivative liability |
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(292,600 |
) |
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(935,000 |
) |
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(1,227,600 |
) |
| Amount included in debt discounts |
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|
626,900 |
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|
399,900 |
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|
1,026,800 |
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| Balance at December 31, 2014 |
|
$ |
334,300 |
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|
$ |
1,610,900 |
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|
$ |
1,945,200 |
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| Change in fair value of derivative liability |
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(196,992 |
) |
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(671,600 |
) |
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|
(868,592 |
) |
| Amounts included in debt discount |
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|
- |
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|
778,900 |
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|
778,900 |
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| Reclassification in connection with conversion |
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- |
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(623,900 |
) |
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|
(623,900 |
) |
| Balance at December 31, 2015 |
|
$ |
137,308 |
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|
$ |
1,094,300 |
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$ |
1,231,608 |
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