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Fair Value Measurements
 12 Months Ended
Dec. 31, 2012
Fair Value Measurements [Abstract]  
Fair Value Measurements
7.
Fair Value Measurements
 
Accounting guidance defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements about fair value measurements. The accounting guidance does not mandate any new fair value measurements and is applicable to assets and liabilities that are required to be recorded at fair value under other accounting pronouncements.
 
            There were no assets or liabilities recorded at fair value on a recurring basis in 2012.
  
The three levels of the fair value hierarchy are described as follows:
 
Level 1: Applies to assets or liabilities for which there are quoted prices (unadjusted) in active markets for identical assets and liabilities. We had no Level 1 assets or liabilities.
 
Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly. We had no Level 2 assets or liabilities.
 
Level 3: Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. We valued warrants and embedded conversion features that were without observable market values and the valuation required a high level of judgment to determine fair value (Level 3 inputs). The Company estimated the fair value of these warrants and embedded conversion features using the Black-Scholes option pricing model using the following assumptions:
 
   
For the year
  
   
ended
December 31,
2010
  
       
 Annual dividend yield
     -  
 Expected life (years)
     0.50 – 4.8  
 Risk-free interest rate
     0.18% - 1.90 %
 Expected volatility
     117% - 221 %
 
   
For the year
  
   
ended
December 31,
2011
  
       
 Annual dividend yield
     -  
 Expected life (years)
     0.08 – 3.0  
 Risk-free interest rate
     0.08% - 1.27 %
 Expected volatility
     110% - 263 %
 
The following table shows the classification of our liabilities that were subject to fair value measurements and the roll-forward of these liabilities for the years ended December 31, 2011 and 2010 (in thousands):
 
Fair Value of Embedded Conversion Features and Warrants
 
January 1, 2010
 
$
4,507
  
Ne Derivatives added in connection with issuance of debt and equity
  
 
5,236
  
Derivatives reclassified to equity in connection with repayment and conversion of debt
  
 
      (19,286)
  
Net increase in fair value
 
 
         16,261
  
December 31, 2010
  
$
6,718
  
 
  Ne Derivatives added in connection with issuance of debt and equity
  
 
4,762
  
Derivatives reclassified to equity in connection with repayment
           and conversion of debt
  
 
      (20,075)
  
Net increase in fair value
 
 
         8,595
  
December 31, 2011
  
$
-