Warrants (Tables)

3 Months Ended

Mar. 31, 2014

The number of warrants outstanding at March 31, 2014 and December 31, 2013 were as follows:


	March 31,		December 31,
	2014		2013

Liability-classified warrants		8,235,076		8,235,076
Equity-classified warrants		2,304,691		2,304,691


Total warrants		10,539,767		10,539,767

Assumptions Used in Binomial and Monte Carlo Valuation Model

The following assumptions were used in the Binomial/Monte Carlo valuation model at March 31, 2014 and 2013:


	March 31, 2014			March 31, 2013

Risk-free interest rate		0.11	%		0.25	%
Expected life in years		0.69			1.69
Expected volatility		80	%		70	%
Expected dividend yield		0			0
Steps per year		13			12

Warrant Exercises

During the three months ended March 31, 2013, warrant exercises were as follows:


(in thousands, except share data)	Equity Warrants		Liability Warrants		Common Stock Issued		Liability Reclassed Equity		Cash Received

Cash exercises		49,315		—		49,315	$	—	$	101
Cashless exercises		—		—		—		—		—

		49,315		—		49,315	$	—	$	101

- 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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