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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

4.	FAIR VALUE MEASUREMENTS

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2011:

			Fair Value Measurements, Using
	Total carrying value as of June 30, 2011		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents	$	57,169,800	$	57,169,800	$	-	$	-
Short-term investments		261,158,726		261,158,726		-		-
Stock warrant liability		4,588,178		-		-		4,588,178

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2010:

			Fair Value Measurements, Using
	Total carrying value as of December 31, 2010		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents	$	8,234,698	$	8,234,698	$	-	$	-
Short-term investments		52,794,545		52,794,545		-		-
Stock warrant liability		10,659,755		-		-		10,659,755

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management's own assumptions used to measure assets and liabilities at fair value. A financial asset or liability's classification is determined based on the lowest level input that is significant to the fair value measurement.

The following table is a reconciliation of the changes in fair value of the Company's stock warrant liability for the three months ended June 30, 2011 and 2010 which has been classified in Level 3 in the fair value hierarchy:

	2011			2010
Fair value of stock warrant liability, beginning of period	$	13,109,785		$	3,006,922
(Gain) loss for period		(4,496,367	)		2,582,428
Warrants exercised		(4,025,240	)		-
Fair value of stock warrant liability, end of period	$	4,588,178		$	5,589,350

The following table is a reconciliation of the changes in fair value of the Company's stock warrant liability for the six months ended June 30, 2011 and 2010 which has been classified in Level 3 in the fair value hierarchy:

	2011			2010
Fair value of stock warrant liability, beginning of period	$	10,659,755		$	3,720,165
Loss for period		4,429,845			1,869,185
Warrants exercised		(10,501,422	)		-
Fair value of stock warrant liability, end of period	$	4,588,178		$	5,589,350

The fair value of the stock warrant liability was determined using the Black-Scholes option pricing model with the following inputs at June 30, 2011 and 2010:

	2011			2010
Contractual life (years)		0.1			1.1
Expected volatility		87.4	%		57.3	%
Risk-free interest rate		0.02	%		0.5	%
Annual dividend yield		-			-

- Definition

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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