Carrying Value

Fair Value Measurements at

As of

December 31, 2012

December 31,

Using Fair Value Hierarchy

2012

Level 1

Level 2

Level 3

Liabilities

Warrant liability

$

-

$

-

$

-

$

-

Senior subordinated convertible promissory notes

3,023,900

-

3,023,900

-

Subordinated convertible promissory notes

4,500,000

-

4,500,000

-

Unsecured convertible promissory notes

90,000

-

90,000

-

Senior convertible promissory notes

1,727,900

-

1,998,100

-

Conversion option liability

-

-

-

-

Total

$

9,341,800

$

-

$

9,612,000

$

-