Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Schedule of changes in derivative financial instruments liability balance

Date	Description	Warrants		Derivative Instrument Liability (in thousands)
12/31/2011	Balance	2,265,160		$	3,325
3/31/2012	Fair value of new warrants issued during the quarter
3/31/2012	Change in fair value of warrants during the quarter recognized as other income in the statement of operations			(8		)
3/31/2012	Balance	2,265,160		3,317
6/30/2012	Fair value of new warrants issued during the quarter	112,500		169

6/30/2012	Change in fair value of warrants during the quarter recognized as other expense in the statement of operations	—		1,317
6/30/2012	Balance	2,377,660		4,803
9/30/2012	Fair value of new warrants issued during the quarter	—		—
9/30/2012	Change in fair value of warrants during the quarter recognized as other income in the statement of operations	—		(140		)
9/30/2012	Balance	2,377,660		4,663
12/31/2012	Fair value of new warrants issued during the quarter	—		—
12/31/2012	Reclassification of derivative liability to equity during the quarter	(112,500	)	(169		)
12/31/2012	Change in fair value of warrants during the quarter recognized as other expense in the statement of operations	—		764
12/31/2012	Balance	2,265,160		5,258
3/31/2013	Change in fair value of warrants during the quarter recognized as other expense in the statement of operations	—		1,093

3/31/2013	Balance	2,265,160		6,351
6/30/2013	Fair value of new warrants issued during the quarter	—		—
6/30/2013	Reclassification of derivative liability to equity during the quarter	(1,406,691	)	(3,575		)
6/30/2013	Change in fair value of warrants during the quarter recognized as other income in the statement of operations	—		(1,803		)
6/30/2013	Balance	858,469		$	973
9/30/2013	Fair value of new warrants issued during the quarter	—		—
9/30/2013	Change in fair value of warrants during the quarter recognized as other income in the statement of operations	—		77
9/30/2013	Balance	858,469		$	1,050

Schedule of liabilities that are measured and recognized at fair value on a recurring basis

($ in thousands)

Description	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2013
Derivative liabilities related to Warrants	$	—	$	—	$	5,258	$	5,258	$	—	$	—	$	1,050	$	1,050

Summary of changes in the fair value of Level 3 liabilities

Description	Balance at December 31, 2012		Fair value of warrants reclassified to additional paid in capital			(Gain) or loss recognized in earning from Change in Fair Value			Balance as of September 30, 2013
Derivative liabilities related to Warrants	$	5,258	$	(3,575	)	$	(633	)	$	1,050

Derivative instrument liability | Warrants | Black-Scholes option pricing model

Derivative Financial Instruments

Schedule of range of assumptions used to determine the fair value of the warrants

	Nine Months Ended September 30, 2013		Nine Months Ended September 30, 2012
Fair value of Synergy common stock	$	4.57	$	4.75
Expected warrant term	1.8 - 4.4 years		2.8 - 5.4 years
Risk-free interest rate	0.33%-1.39%		0.32%-1.33%
Expected volatility	60%		60%
Dividend yield	—		—

Derivative instrument liability | Warrants | Binomial model

Derivative Financial Instruments

Schedule of range of assumptions used to determine the fair value of the warrants

		Nine months ended September 30, 2012
Fair value of Synergy common stock		$3.28-$4.50
Expected warrant term		4.4 - 4.6 years
Risk-free interest rate		0.72%-1.03%
Expected volatility		60%
Dividend yield		—

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- 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.

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