Quarterly report pursuant to sections 13 or 15(d)

8. Derivative liability (Tables)

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8. Derivative liability (Tables)
9 Months Ended
Sep. 30, 2012
Notes to Financial Statements  
The derivative liabilities were valued using a probability weighted average series of Black-Scholes-Merton models

The derivative liabilities were valued using a probability weighted average series of Black-Scholes-Merton models as a valuation technique with the following assumptions:

 

    Fair Value of Warrants  
    September 30, 2012     December 31,
2011
 
Risk-free interest rate     0.10%       0.12%  
Expected volatility     206%       92%  
Expected life (in years)     0.29       0.75 – 1.00  
Expected dividend yield     0%       0%  
Fair Value:                
2009 Summer Warrants     –       332,998  
2009 Wellfleet Warrants     –       17,807  
2009 Fall Warrants     3,035,739       1,292,334  
Total Fair Value   $ 3,035,739     $ 1,643,139