Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

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

	Nine Months Ended September 30, 2014		Nine Months Ended September 30, 2013
Fair value of Synergy common stock	$	2.79	$	4.57
Expected warrant term	0.75-3.4 years		1.8-4.4 years
Risk-free interest rate	0.08%-1.25%		0.33%-1.39%
Expected volatility	52% - 60%		60%
Dividend yield	—		—

Schedule of changes in derivative financial instruments and associated liability balance

Date	Description	Warrants		Derivative Instrument Liability ($ in thousands)
12/31/2012	Balance of derivative financial instruments liability	2,265,160		$	5,258

3/31/2013	Change in fair value of warrants during the quarter	—		1,093

3/31/2013	Balance of derivative financial instruments liability	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	—		(1,803		)
6/30/2013	Balance of derivative financial instruments liability	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	—		77

9/30/2013	Balance of derivative financial instruments liability	858,469		1,050
12/31/2013	Fair value of new warrants issued during the quarter	—		—
12/31/2013	Change in fair value of warrants during the quarter	—		484

12/31/2013	Balance of derivative financial instruments liability	858,469		1,534
3/31/2014	Fair value of new warrants issued during the quarter	—		—
3/31/2014	Change in fair value of warrants during the quarter	—		(223		)
3/31/2014	Balance of derivative financial instruments liability	858,469		1,311
6/30/2014	Fair value of new warrants issued during the quarter	—		—
6/30/3014	Change in fair value of warrants during the quarter	—		(756		)
6/30/2014	Balance of derivative financial instruments liability	858,469		555
9/30/2014	Fair value of new warrants issued during the quarter	—		—
9/30/2014	Change in fair value of warrants during the quarter	—		(425		)
9/30/2014	Balance of derivative financial instruments liability	858,469		$	130

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, 2013			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, 2014
Derivative liabilities related to Warrants		$	—		$	—		$	1,534		$	1,534		$	—		$	—		$	130		$	130

Summary of changes in the fair value of Level 3 liabilities

Description		Balance at December 31, 2013			Fair Value of warrants upon issuance			(Gain) or loss recognized in earning from Change in Fair Value			Balance as of September 30, 2014
Derivative liabilities related to Warrants		$	1,534		$	—		$	(1,404	)	$	130

- 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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