Fair Value of Financial Instruments (Tables)

9 Months Ended

Oct. 31, 2012

Summary of Level 3 Inputs Measurement on Recurring Basis

The following summarizes the activity of Level 3 inputs measured on a recurring basis for the nine months ended October 31, 2012:

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

	Derivative			Warrant			Total
Balance at January 31, 2012	$	653,026		$	120,000		$	773,026
Additions		-			-			-
Exercises		-			-			-
Reclassification (Note 9)		(5,818,149	)		(808,732	)		(6,626,881	)
Adjustment resulting from change in fair value recognized in earnings		5,165,123			688,732			5,853,855
Balance at October 31, 2012	$	-		$	-		$	-

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period 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 asset.

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