General form of registration statement for all companies including face-amount certificate companies

FAIR VALUES OF ASSETS AND LIABILITIES

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FAIR VALUES OF ASSETS AND LIABILITIES
 3 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2011
Sep. 30, 2011
Dec. 31, 2010
FAIR VALUES OF ASSETS AND LIABILITIES
2.
FAIR VALUES OF ASSETS AND LIABILITIES

In accordance with Fair Value Measurements and Disclosures Topic of the FASB ASC, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

 
·
Level 1: Input prices quoted in an active market for identical financial assets or liabilities.
 
·
Level 2: Inputs other than prices quoted in Level 1, such as prices quoted for similar financial assets and liabilities in active markets, prices for identical assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data.
 
·
Level 3: Input prices quoted that are significant to the fair value of the financial assets or liabilities which are not observable or supported by an active market.


Assets and liabilities measured at fair value on a recurring basis are summarized below:

   
March 31, 2011
  
   
Level 1
    
Level 2
    
Level 3
    
Fair Value
  
                         
Liabilities:
                        
Warrants
   $ -     $ 162,760     $ -     $ 162,760  
 
The Company uses valuation methods and assumptions that consider among others the fair value of the underlying stock, risk-free interest rate, volatility, expected life and dividend rates in estimating fair value for the warrants considered to be derivative instruments. Assumptions used are generally consistent with those disclosed for stock-based compensation (see Note 5).
3.
FAIR VALUES OF ASSETS AND LIABILITIES

In accordance with Fair Value Measurements and Disclosures Topic of the FASB ASC, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

 
·
Level 1: Input prices quoted in an active market for identical financial assets or liabilities.
 
·
Level 2: Inputs other than prices quoted in Level 1, such as prices quoted for similar financial assets and liabilities in active markets, prices for identical assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data.
 
·
Level 3: Input prices quoted that are significant to the fair value of the financial assets or liabilities which are not observable or supported by an active market.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

   
September 30, 2011
  
   
Level 1
    
Level 2
    
Level 3
    
Fair Value
  
                         
Liabilities:
                        
Warrants
   $ -     $ 77,967     $ -     $ 77,967  
 
   
December 31, 2010
  
   
Level 1
    
Level 2
    
Level 3
    
Fair Value
  
                         
Liabilities:
                        
Warrants
   $ -     $ -     $ -     $ -  
 
The Company uses the Black-Scholes option pricing model and assumptions that consider, among other variables, the fair value of the underlying stock, risk-free interest rate, volatility, expected life and dividend rates in estimating fair value for the warrants considered to be derivative instruments. Assumptions used are generally consistent with those disclosed for stock-based compensation (see Note 11).
4.  FAIR VALUES OF ASSETS AND LIABILITIES

In accordance with Fair Value Measurements and Disclosures Topic of the FASB ASC, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

 
·
Level 1: Input prices quoted in an active market for identical financial assets or liabilities.
 
·
Level 2: Inputs other than prices quoted in Level 1, such as prices quoted for similar financial assets and liabilities in active markets, prices for identical assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data.


 
·
Level 3: Input prices that are significant to the fair value of the financial assets or liabilities which are not observable or supported by an active market.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

   
December 31, 2010
  
   
Level 1
    
Level 2
    
Level 3
    
Fair Value
  
                         
Liabilities:
                        
Warrants
  
$
-
    
$
288,250
    
$
-
    
$
288,250
  

   
December 31, 2009
  
   
Level 1
    
Level 2
    
Level 3
    
Fair Value
  
                         
Liabilities:
                        
Warrants
  
$
-
    
$
10,487,000
    
$
-
    
$
10,487,000
  

The Company uses valuation methods and assumptions that consider among others the fair value of the underlying stock, risk-free interest rate, volatility, expected life and dividend rates in estimating fair value for the warrants considered to be derivative instruments. Assumptions used are generally consistent with those disclosed for stock-based compensation (see Note 7).