Warrant Liabilities (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Warrant Valuation Assumptions

The assumptions used in connection with the valuation of warrants issued were as follows:


	June 30,	April 3,	April 2,
	2014	2014	2014
Number of shares underlying the warrants	77,862,807	30,136,713	47,726,094
Exercise price	$0.0001 - $0.80	$0.0001	$0.595 - $0.80
Volatility	111.17% - 199.57%	183.30%	134% - 158%
Risk-free interest rate	0.09% - 1.07%	0.11%	0.28% - 1.73%
Expected dividend yield	0.00%	0.00%	0.00%
Expected warrant life (years)	0.75 - 3.38	1	1.42 - 3.63
Stock price	$0.06	$0.08	$0.09

Schedule of Warrant Liabilities at Fair Value

Acquisition
			Measurement				Increase
			Date				(Decrease)
	December 31,		April 2,		Initial		in			June 30,
	2013		2014		Measurement		Fair Value			2014
2011 Unit Offering	$	-	$	1,242,333	$	-	$	(899,807	)	$	342,526
2011 Unit Offering Placement Agent		-		156,367		-		(113,254	)		43,113
2012 Bridge Warrant		-		20,690		-		(2,988	)		17,702
2012 Bridge Warrant Placement Agent		-		4,138		-		(598	)		3,540
2012 Unit Offering		-		137,178		-		(45,283	)		91,895
2012 Unit Offering Placement Agent		-		96,481		-		(34,436	)		62,045
2013 Merger related notes converted		-		11,608		-		(3,738	)		7,870
2014 Senior Note Purchase		-		-		2,407,930		(602,737	)		1,805,193
	$	-	$	1,668,795	$	2,407,930	$	(1,702,841	)	$	2,373,884

Schedule of Warrant Subject to Remeasurement

Number of Warrants Subject to Remeasurement


	Number of Warrants
			April 2,
	December 31,		2014		Warrant				June 30,
	2013		Acquisition		Additions		Reductions		2014
2011 Unit Offering		-		33,277,837		-		-		33,277,837
2011 Unit Offering Placement Agent		-		4,726,891		-		-		4,726,891
2012 Bridge Warrant		-		1,137,735		-		-		1,137,735
2012 Bridge Warrant Placement Agent		-		227,546		-		-		227,546
2012 Unit Offering		-		6,300,213		-		-		6,300,213
2012 Unit Offering Placement Agent		-		1,561,544		-		-		1,561,544
2013 Merger related notes converted		-		494,328		-		-		494,328
2014 Senior Note Purchase		-		-		30,136,713		-		30,136,713
		-		47,726,094		30,136,713		-		77,862,807

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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