STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Common Stock

As of December 31, 2013, the following shares were reserved for future issuance (in thousands):



	December 31,
	2013	2012
Stock Option Plan	1,057	697
Warrants to purchase common stock	2,540	2,733
Employee Stock Purchase Plan	300	—
	3,897	3,430

Warrants — issued and outstanding

As of December 31, 2013 the following warrants for common stock were issued and outstanding:



Issue date	Expiry date	Exercise price (stated in US Dollars as of 12/31/13)		Number of warrants outstanding
April 4, 2011	April 4, 2016	$	7.01	1,461,541
November 21, 2012	November 21, 2017	$	8.18	1,078,136
				2,539,677

On November 21, 2012, the Company completed a private placement resulting in gross proceeds of $26.1 million. Under the terms of the offering the Company issued a total of 3,593,819 units at a subscription price of CND$7.25 (or $7.28, US Dollar equivalent), each unit consisting of one share of common stock and thirty one-hundredths (0.30) of a common stock purchase warrant, exercisable for a period of five years from the date of issuance at an exercise price of CND$8.70 (or $8.73, as converted) (representing 120% of the subscription price). The issuance costs of the units amounted to $1.3 million. The net proceeds were allocated to common stock and warrants based on their relative fair values.

The fair value of the warrants issued on November 21, 2012 was estimated at the date of grant using the Black-Scholes option pricing model and the following assumptions: weighted average risk-free interest rate of 1.34%; dividend yield of zero; volatility factor of 115.5% and the expected life of the warrants of five years. The fair value allocated to the warrants amounted to $4.9 million and $19.9 million was recorded as an increase to common stock, net of costs.