Convertible Senior Secured Notes

3 Months Ended

Mar. 31, 2014

8. Convertible Senior Secured Notes

The table below summarizes how the issuance of the Notes is reflected in the balance sheet at March 31, 2014, in thousands:

Gross proceeds	$	90,000
Initial value of interest make-whole derivative reported as debt discount	(9,270		)
Conversion option reported as debt discount and APIC	(22,336		)
Conversion of debt to equity - principal	(40,492		)
Conversion of debt to equity - debt discount	13,833
Amortization of debt discount	2,658
December 31, 2013 carrying value	34,393

Conversion of debt to equity - principal	(9,467		)
Conversion of debt to equity - debt discount	2,908
Amortization of debt discount	524
March 31, 2014 carrying value	$	28,358

During the three month period ended March 31, 2014, approximately $9.5 million of the Notes were presented to the Company for conversion. Accordingly, the Company issued approximately 1.8 million shares of common stock in conversion of the principal amount of the Notes. The Company issued an additional 0.3 million shares of common stock in settlement of the interest make-whole provision related to the converted Notes. As a result of the conversions, the Company incurred an approximately $1.7 million loss on extinguishment of debt during the three months ended March 31, 2014.