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Warrants (Tables)

12 Months Ended

Dec. 31, 2013

Cumulative Effect on Balance Sheets of Reclassification Attributed to Adoption of Standard

The reclassification attributed to adoption of the standard had the following cumulative effect on the Balance Sheets:


(in thousands)	Liabilities		Stockholders’ Equity
	Warrants		Warrants			Deficit Accumulated During the Development Stage
As reported on December 31, 2008	$	—	$	20,504		$	(85,061	)
Re-classification		72		(1,638	)		1,566

Balance on January 1, 2009	$	72	$	18,866		$	(83,495	)

Assumptions Used In Binomial Valuation Model and Black-Scholes Valuation Model

The following Black-Scholes pricing assumptions were used at January 1, 2009:


	January 1, 2009
Risk-free interest rate		1.55	%
Expected life in years		3.42
Expected volatility		102	%
Expected dividend yield		0

The following pricing assumptions were used in the Binomial/Monte Carlo valuation model at December 31, 2013, 2012 and 2011:


	December 31, 2013	December 31, 2012	December 31, 2011
Risk-free interest rate	0.13%	0.25%	0.05 - 0.35%
Expected life in years	0.94	1.94	0.42 - 2.92
Expected volatility	80%	70%	64 - 80%
Expected dividend yield	0	0	0

Summary of Warrants Outstanding

The following is a summary of warrants outstanding as of December 31, 2013.


Number of Warrants		Issued in Connection With	Exercise Price		Expiration Date
	2,264,393	Investor warrants	$	2.04	September 15, 2014
	40,298	Placement warrants for services performed		2.04	September 15, 2014
	8,235,076	Investor warrants		4.02	December 9, 2014

	10,539,767

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

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- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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