Note 14 - Fair Value Measurement

12 Months Ended

Dec. 31, 2012

Fair Value Measurements, Valuation Techniques

14. Fair value measurement:

For financial assets and liabilities recorded in our financial statements at fair value we utilize 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 instruments measured at fair value on a recurring basis as at December 31, 2012:

	December 31, 2012
	Fair Value Measurement Using						Assets at
	Level 1		Level 2		Level 3		Fair Value
Derivative instrument asset	$	—	$	444,782	$	—	$	444,782
Total Assets	$	—	$	444,782	$	—	$	444,782

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

	December 31, 2011
	Fair Value Measurement 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