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Note 9 - Derivative liabilities
 3 Months Ended
Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative liabilities

Note 9 - Derivative liabilities

 

The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company has entered into certain other financial instruments and contracts, such as debt financing arrangements with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. These instruments are required to be carried as derivative liabilities, at fair value.

 

The following table discloses the fair value of the Company’s derivative liabilities as of March 31, 2013 and December 31, 2012. The Company held no asset derivatives at either reporting date.

 

    Liability Derivatives
    March 31, 2013     December 31, 2012
    Balance Sheet Location   Fair Value     Balance Sheet Location   Fair Value  
Derivatives not designated as hedging instruments                        
                         
Secured Promissory Notes Warrants   Derivative Liabilities   $ 44,000     Derivative Liabilities   $ 68,250  


 

The following table summarizes liabilities measured at fair value on a recurring basis for the periods presented:

 

    March 31, 2013     December 31, 2012  
Fair Value Measurements Using:   Level 1     Level 2     Level 3     Total     Level 1     Level 2     Level 3     Total  
Liabilities                                                                
Derivative Liabilities   $ —     $ 44,000     $ —     $ 44,000     $ —     $ 68,250     $ —     $ 68,250