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NOTE 3 - FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2012
Fair Value Disclosures [Text Block]
NOTE 3 - FAIR VALUE MEASUREMENTS

Effective August 1, 2008, Asure adopted ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value, establishes a framework for measuring fair value in U.S. generally accepted accounting principles and expands disclosures about fair value measurements.  

 ASC 820 establishes a three-tier fair value hierarchy, which is based on the reliability of the inputs used in measuring fair values. These tiers include:

                Level 1: 
Quoted prices in active markets for identical assets or liabilities;

                Level 2: 
Quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active for identical or similar assets or liabilities; and model-driven valuations whose significant inputs are observable; and

                Level 3: 
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table presents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of December 31, 2012 and 2011, respectively:

         
Fair Value Measure at December 31, 2012
 
   
Total
   
Quoted
   
Significant
       
   
Carrying
   
Prices
   
Other
   
Significant
 
   
Value at
   
in Active
   
Observable
   
Unobservable
 
   
December 31,
   
Market
   
Inputs
   
Inputs
 
Description
 
2012
   
(Level 1)
   
(Level 2)
   
(Level 3)
 
Cash and Cash Equivalents
 
$
2,177
   
$
2,177
   
$
-
   
$
-
 
Restricted cash- certificate of deposit
 
$
250
   
$
-
   
$
250
   
$
-
 
Total
 
$
2,427
   
$
2,177
   
$
250
   
$
-
 

         
Fair Value Measure at December 31, 2011
 
   
Total
   
Quoted
   
Significant
       
   
Carrying
   
Prices
   
Other
   
Significant
 
   
Value at
   
in Active
   
Observable
   
Unobservable
 
   
December 31,
   
Market
   
Inputs
   
Inputs
 
Description
 
2011
   
(Level 1)
   
(Level 2)
   
(Level 3)
 
Cash and Cash Equivalents
 
$
1,067
   
$
1,067
   
$
-
   
$
-
 
Derivative Liability
   
(835
)
   
-
     
(835
)
   
-
 
     Total
 
$
232
   
$
1,067
   
$
(835
)
 
$
-
 

Other Financial Assets and Liabilities

Financial assets and liabilities with carrying amounts approximating fair value include cash, trade accounts receivable, accounts payable, accrued expenses and other current liabilities.  The carrying amount of these financial assets and liabilities approximates fair value because of their short maturities.

Our line of credit and notes payable, including current portion, as of December 31, 2012, had a carrying value of $20,137.  This carrying value approximates fair value.  The fair value is based on interest rates that are currently available to us for issuance of debt with similar terms and remaining maturities.

See Note 5 for further discussion of the valuation of our derivative liability.