FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2012

FAIR VALUE MEASUREMENTS [Abstract]

Financial instruments measured at fair value

The following table summarizes our financial instruments measured at fair value as of December 31, 2012 (in thousands):

	December 31, 2012 Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash and equivalents – United States	$	4,162	$	4,162	$	–	$	–
Cash and equivalents - Foreign currency		--		--		–		–
Total assets	$	4,162	$	4,162	$	–	$	–
Derivative Liabilities:
Warrant liability (1)	$	85	$	–	$	–	$	85
Total liabilities	$	85	$	–	$	–	$	85

The following table summarizes our financial instruments measured at fair value as of December 31, 2011 (in thousands):

	December 31, 2011 Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash and equivalents – United States	$	4,870	$	4,870	$	–	$	–
Cash and equivalents - Foreign currency		10		10		–		–
Total assets	$	4,880	$	4,880	$	–	$	–
Derivative Liabilities:
Warrant liability (1)	$	105	$	–	$	–	$	105
Total liabilities	$	105	$	–	$	–	$	105

(1) On April 18, 2010, we entered into a securities purchase agreement with purchasers named therein to raise in the aggregate of approximately $3 million in a private placement of common stock and warrants pursuant to Section 4(2) of the Securities Act of 1933, as amended, and/or Regulation D promulgated thereunder. Upon closing of the transaction, we entered into a registration rights agreement with the buyers and issued to the buyers an aggregate of 571,429 shares of common stock at a per share price of $5.25, and warrants to acquire additional shares of common stock of up to 50% of the common shares acquired by each respective buyer at an exercise price of $6.00 per share.

Changes in fair value measurements using significant unobservable inputs (Level 3)

Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands):

Description	Year Ended December 31, 2012		Year Ended December 31, 2011
Beginning balance	$	105	$	504
Purchases, issuances, and settlements		--		--
Reduced Lican liability from settlement		--		(111)
Total gain included in earnings (2)		(20)		(288)
Ending balance	$	85	$	105

(2) Gains for the period ended December 31, 2012 related to the revaluation of equity based liabilities. The gains related to the warrant liability portion were calculated from the date of the warrant issuance (April 18, 2010) through December 31, 2012. These gains and losses are reflected in our consolidated statements of operations as a component of other income (expense).