Quarterly report pursuant to Section 13 or 15(d)

Derivative liability (Tables)

v2.4.0.8
Derivative liability (Tables)
9 Months Ended
Sep. 30, 2014
Derivative liability [Abstract]  
Schedule of Components of Derivative Liabilities

The following tables summarize the components of derivative liabilities:

 

   

September 30,

    December 31,  
    2014     2013  
             
Fair value of derivative liability   $ 8,298,000     $ 10,095,000  
                 
Significant assumptions (or ranges):                
Trading market values  (1)   $ 5.30     $ 5.75  
Term (years) (2)     1.41       2.08  
Expected volatility   (1)     33.1 %     41.4 %
Risk-free rate   (2)     .31 %     0.38 %
Discount rate (3)     1.18 %     1.24 %
Effective Exercise price (2)   $ 5.00     $ 5.00  
Trigger price (2)   $ 6.25     $ 6.25  
Expected months until effective registration (3)     0       2  

 

Fair value hierarchy:

 

  (1)
Level 1 inputs are quoted prices in active markets for identical assets and liabilities, or derived therefrom.

 

  (2)
Level 2 inputs are inputs other than quoted prices that are observable.

 

  (3)
Level 3 inputs are unobservable inputs. Inputs for which any parts are level 3 inputs are classified as level 3 in their entirety.