FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following table represents the fair value hierarchy for those financial assets measured at fair value on a recurring basis

	Fair Value at
	March 31,		Fair Value Measurement Using
	2015		Level 1	Level 2	Level 3
Derivative liability – Conversion Feature	$	1,985,622	-	-	$	1,985,622
	$	1,985,622	-	-	$	1,985,622

	Fair Value at
	December 31,		Fair Value Measurement Using
	2014		Level 1	Level 2	Level 3
Derivative liability – Conversion Feature	$	910,590	-	-	$	910,590
	$	910,590	-	-	$	910,590

Liabilities measured at fair value on a recurring basis using significant unobservable inputs

Liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level3):

	March 31,
	2015
Balance at December 31, 2014	$	910,590
Issuance of notes with derivatives		571,000
Derivative debt converted into equity		(105,448)
Loss on fair market valuation of derivatives		609,480
Balance at March 31, 2015	$	1,985,622

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details

INERGETICS INC 10-Q