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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of estimated useful lives of assets

Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, as follows:



Computer equipment		3 years
Office and other equipment		6 years
Laboratory equipment		6 years
Leasehold improvements		The lesser of the lease term or the life of the asset

Schedule of potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive

The following table presents potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive:



	Year ended
	December 31,
	2013	2012
Common stock options	495	15,663
Common stock warrants	644,426	690,046
Total	644,921	705,709

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

The following table summarizes the assets and liabilities measured at fair value on a recurring basis (in thousands):



	December 31, 2013		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	14,235	$	12,431	$	1,804	$	—
Short-term investments	47,835		—		47,835		—
	$	62,070	$	12,431	$	49,639	$	—

Liabilities
Warrant liability	$	33,407	$	—	$	—	$	33,407
	$	33,407	$	—	$	—	$	33,407



	December 31, 2012		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	18,403	$	2,825	$	15,578	$	—
Short-term investments	18,580		—		18,580		—
	$	36,983	$	2,825	$	34,158	$	—

Liabilities
Warrant liability	$	—	$	—	$	—	$	—
	$	—	$	—	$	—	$	—

Schedule of rollforward of the fair value of the liability which includes Level 3 measurements

The following table presents a rollforward of the fair value of the warrant liability which includes Level 3 measurements (in thousands):



	Year ended December 31,
	2013			2012
Warrant liability:
Balance at beginning of year:	$	—		$	—
Fair value upon reclassification of balance as of January 1, 2013	16,194			—
Change in fair value of warrant liability included in net loss	19,799			—
Fair value of warrants exercised	(2,586		)	—
Balance at end of year:	$	33,407		$	—

Schedule of assumptions used to calculate fair value of the liability

The fair value of the warrant liability was calculated utilizing the Black-Scholes option-pricing model, using the following assumptions:



	January 1, 2013				December 31, 2013
	2011 Warrants		2012 Warrants		2011 Warrants		2012 Warrants
Risk-free interest rate	1.2	%	1.4	%	1.2	%	1.6	%
Volatility	107.5	%	116.3	%	112.0	%	115.9	%
Dividend yield	—		—		—		—
Expected life in years	3.3		4.9		2.3		3.9

- 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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