Secured Debt and Convertible Notes (Tables)

9 Months Ended

Sep. 30, 2014

Debt Instrument [Line Items]

Inputs to Lattice Model used to Value Term Loan and 2017 Notes for which Fair Value Option was Elected

The following table sets forth the inputs to the lattice model that were used to value the Term Loan and 2017 Notes for which the fair value option was elected.  

	September 30,
	2014
Stock price	$	0.34
Conversion Rate		863.3
Conversion Price	$	1.16
Maturity date	March 15, 2017
Risk-free interest rate		0.80	%
Estimated stock volatility		85.0	%
Estimated credit spread		15.0	%

Information Pertaining to Convertible Notes

The following table sets forth information pertaining to the Term Loan and 2017 Notes which is included in the Company’s consolidated balance sheets (in thousands).

	Principal Amount of Term Loans			Principal Amount of 2017 Notes		Change in Estimated Fair Value			Total
Balance - December 31, 2013	$	-		$	-	$	-		$	-
Issuance of Term Loan		25,907			-		-			25,907
Exchange of Term Loan for 2017 Notes		(25,907	)		25,907		-			-
Non-cash paid-in-kind interest expense		-			201		-			201
Gain from change in fair value of debt		-			-		(544	)		(544	)
Balance - September 30, 2014	$	-		$	26,108	$	(544	)	$	25,564

Changes in certain inputs into the lattice model can have a significant impact on changes in the estimated fair value of the Term Loan and 2017 Notes. For example, the estimated fair value will generally decrease with; (1) a decline in the stock price; (2) increases in the estimated stock volatility; and (3) an increase in the estimated credit spread. The change in the estimated fair value of the 2017 Notes during the three and nine months ended September 30, 2014, represents an unrealized gain which has been recorded as gain from change in fair value of 2017 Notes in the consolidated statements of operations.

Secured Debt Included in Consolidated Balance Sheets

The following table sets forth information pertaining to the Company’s secured debt issued to TriplePoint Capital LLC (“TriplePoint”) which is included in the Company’s consolidated balance sheets (in thousands).

	September 30,			December 31,
	2014			2013
Secured debt
TriplePoint - September 2010 Advance	$	-		$	917
TriplePoint - October 2011 Advance		-			6,657
TriplePoint - January 2012 Advance		-			3,495
TriplePoint - May 2014 Advance		897			-
Total secured debt		897			11,069
Less:
Unamortized debt discounts		(58	)		(942	)
		839			10,127
Less current portion of debt		(253	)		(788	)
Long-term portion of debt	$	586		$	9,339

2022 Notes

Debt Instrument [Line Items]

Information Pertaining to Convertible Notes

The following table sets forth information pertaining to the 2022 Notes which is included in the Company’s consolidated balance sheets (in thousands).

	Embedded Derivatives			Principal Amount of 2022 Notes			Debt Discount			Total
Balance - December 31, 2012	$	11,000		$	45,000		$	(30,446	)	$	25,554
Amortization of debt discount		-			-			2,780			2,780
Write-off of debt discount associated with conversion of debt		-			-			11,277			11,277
Gain from change in fair value of embedded derivatives		(2,280	)		-			-			(2,280	)
Conversion		(4,416	)		(18,100	)		-			(22,516	)
Balance - September 30, 2013	$	4,304		$	26,900		$	(16,389	)	$	14,815
	Embedded Derivatives			Principal Amount of 2022 Notes			Debt Discount			Total
Balance - December 31, 2013	$	3,470		$	26,900		$	(15,869	)	$	14,501
Amortization of debt discount		-			-			1,889			1,889
Gain from change in fair value of embedded derivatives		(3,470	)		-			-			(3,470	)
Balance - September 30, 2014	$	-		$	26,900		$	(13,980	)	$	12,920