We have been increasing our promotion of the Trader product to these markets,
specifically targeting small and medium sized businesses with revenues of
Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in
the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
We believe the following critical accounting policies, among others, affect our more significant judgments and estimates used in the preparation of our consolidated financial statements:
Fair Value of Financial Instruments
The Company's financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, derivative liabilities, and debt instruments.
Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in one of the following three categories:
· Level 1 - Fair value based on quoted prices in active markets for identical
assets or liabilities.
· Level 2 - Fair value based on significant directly observable data (other
than Level 1 quoted prices) or significant indirectly observable data
through corroboration with observable market data. Inputs would normally be
(i) quoted prices in active markets for similar assets or liabilities, (ii)
quoted prices in inactive markets for identical or similar assets or
liabilities or (iii) information derived from or corroborated by observable