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, 2013
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
17.
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, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities
 
$
12,062
 
$
10,562
 
$
1,500
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liability
 
$
2,341,500
 
$
-
 
$
-
 
$
2,341,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities
 
$
56,949
 
$
55,449
 
$
1,500
 
$
-
 
  
At September 30, 2013 and December 31, 2012, the Company's available-for-sale equity securities were valued using Level 1 and Level 2 inputs as summarized above. Level 1 inputs are based on unadjusted prices for identical assets in active markets that the Company can access. Level 2 inputs are based on quoted prices for similar assets other than quoted prices in Level 1, quoted prices in markets that are not yet active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets.
 
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.
 
See Note 4 for further details of the Company's investments.
 
The following 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 nine months ended September 30, 2013. 
 
Balance, January 1, 2013
 
$
-
 
Change in fair value of derivative liability
 
 
75,900
 
Included in debt discount
 
 
2,115,400
 
Included in interest expense
 
 
150,200
 
Balance, September 30, 2013
 
$
2,341,500