Quarterly report pursuant to Section 13 or 15(d)

DISCLOSURES ABOUT FAIR VALUE

v2.4.0.8
DISCLOSURES ABOUT FAIR VALUE
 9 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
12.
DISCLOSURES ABOUT FAIR VALUE
 
Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables according to FASB ASC 820 pricing levels.
 
 
 
Fair Value Measurement Using
 
 
 
 
 
Quoted prices
 
 
 
 
 
 
 
 
 
in active
 
Significant
 
 
 
 
 
 
 
markets of
 
other
 
Significant
 
 
 
 
 
identical
 
observable
 
Unobservable
 
 
 
Recorded
 
assets
 
inputs
 
Inputs
 
 
 
value
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
 
 
September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities
 
$
35,362
 
$
35,362
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Embedded conversion feature
 
$
1,436,700
 
$
-
 
$
-
 
$
1,436,700
 
Warrant liability
 
 
76,800
 
 
-
 
 
-
 
 
76,800
 
 
 
$
1,513,500
 
$
-
 
$
-
 
$
1,513,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities
 
$
55,112
 
$
55,112
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Embedded conversion feature
 
$
2,146,000
 
$
-
 
$
-
 
$
2,146,000
 
 
At September 30, 2014 and December 31, 2013, the Company's available-for-sale equity securities were valued using Level 1 inputs as summarized above. Level 1 inputs are based on unadjusted prices for identical assets in active markets that the Company can access.
 
The derivative liabilities are measured at fair value using quoted market prices and estimated volatility factors based on historical quoted market prices for the Company’s common stock, and are classified within Level 3 of the valuation hierarchy.
 
Certain assets are not carried at fair value on a recurring basis, including investments accounted for under the equity and cost methods. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to re-measurement at fair value after initial recognition and the resulting re-measurement is reflected in the consolidated financial statements.
 
 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 three and nine months ended September 30, 2014. The Company did not have any warrants or conversion feature financial assets for the three and nine months ended September 30, 2013.
 
 
 
 
 
Conversion
 
 
 
 
 
Warrants
 
Feature
 
Total
 
 
 
 
 
 
 
 
 
Balance at January 1, 2014
 
$
-
 
$
2,146,000
 
$
2,146,000
 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of derivative liability
 
 
(34,500)
 
 
(814,800)
 
 
(849,300)
 
 
 
 
 
 
 
 
 
 
 
 
Amount included in debt discounts
 
 
111,300
 
 
105,500
 
 
216,800
 
Balance at September 30, 2014
 
$
76,800
 
$
1,436,700
 
$
1,513,500
 
 
The following are revenues and operating income (loss) by geographic area as of and for the three and nine months ended September 30, 2014 and 2013:
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
Revenue:
 
2014
 
2013
 
2014
 
2013
 
United States
 
$
3,957,161
 
$
25,000
 
$
10,445,982
 
$
75,000
 
South Africa
 
 
1,601,493
 
 
1,302,709
 
 
4,905,249
 
 
4,165,886
 
Australia
 
 
2,641,909
 
 
-
 
 
3,153,589
 
 
-
 
Europe
 
 
1,426,179
 
 
278,536
 
 
3,669,177
 
 
698,524
 
 
 
$
9,626,742
 
$
1,606,245
 
$
22,173,997
 
$
4,939,410
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
(729,351)
 
$
(767,524)
 
$
(3,408,663)
 
$
(1,850,054)
 
South Africa
 
 
(70,571)
 
 
(98,973)
 
 
(220,186)
 
 
(320,212)
 
Australia
 
 
192,566
 
 
-
 
 
(88,002)
 
 
-
 
Europe
 
 
19,007
 
 
(109,685)
 
 
44,816
 
 
(268,541)
 
 
 
$
(588,349)
 
$
(976,182)
 
$
(3,672,035)
 
$
(2,438,807)