OTHER EXPENSES

12 Months Ended

Dec. 31, 2012

Other Expenses [Abstract]

Other Expenses

13. OTHER EXPENSES

During the years ended December 31, 2012 and 2011, the Company recorded other expenses of approximately $3,233,000 and $1,729,000, respectively. Other expenses include interest expense, derivative expenses and other gains and losses.

Interest expense was $1,753,000 and $1,185,000 for the years ended December 31, 2012 and 2011, respectively. $1,628,000 and $1,134,000 of the total interest expense for the years ended December 31, 2012 and 2011, respectively, was related to the accretion of debt discount associated with convertible debt.

The Company recorded loss on fair value adjustments to embedded conversion derivative liability associated with the convertible debtof approximately $726,000 and $544,000 for the years ended December 31, 2012 and 2011, respectively.  

During the year ended December 31, 2012, the Company also recorded $18,000 loss on the disposal of property and equipment, $282,000 loss on settlement, debt modification expense of $432,000 and other expenses of $22,000.