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Note 15 - Fair Value Measurement

9 Months Ended

Sep. 30, 2012

Fair Value Measurements, Valuation Techniques

15. FAIR VALUE MEASUREMENT

ASC Topic 820, “Fair Value Measurements and Disclosures” establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company's own assumptions used to measure assets and liabilities at fair value. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following table provides a summary of the fair values of the Company's derivative instrument assets and liabilities measured at fair value on a recurring basis at September 30, 2012:

	September 30, 2012
	Fair Value Measurements Using						Assets at
	Level 1		Level 2		Level 3		Fair Value

Derivative instrument asset	$	—	$	468,675	$	—	$	468,675
Total Assets	$	—	$	468,675	$	—	$	468,675

Derivative instrument liability	$	—	$	13,011	$	—	$	13,011
Total Liabilities	$	—	$	13,011	$	—	$	13,011

The following table provides a summary of the fair values of the Company's derivative instrument assets measured at fair value on a recurring basis as at December 31, 2011:

	December 31, 2011
	Fair Value Measurements Using						Assets at
	Level 1		Level 2		Level 3		Fair Value

Derivative instrument asset	$	—	$	87,023	$	—	$	87,023
Total Assets	$	—	$	87,023	$	—	$	87,023

Derivative instrument liability	$	—	$	786,506	$	—	$	786,506
Total Liabilities	$	—	$	786,506	$	—	$	786,506

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accreditation

fees payable, customer deposits, loan payable and accrued liabilities approximate their fair values due to the relatively short periods to maturity of the instruments. The fair value of these financial assets and liabilities is determined using Level 3 inputs.