XML 37 R29.htm IDEA: XBRL DOCUMENT

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Schedule Of Property Plant and Equipment Estimated Useful Lives

Property and equipment are recorded at cost and depreciated for financial statement purposes using the straight-line over estimated useful lives below:

	Estimated life, years
Building	39
Furniture and fixtures	5-7
Leasehold Improvements	1-3
Computer equipment	3-5
Research equipment	7
Machinery and equipment	3-5

Embedded Conversion Derivative Liabilities Measured and Recorded at Fair Value on Recurring Basis

The following table presents the embedded conversion derivative liabilities, the Company’s only financial liabilities measured and recorded at fair value on the Company’s consolidated balance sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2012 (in thousands):

		December 31, 2012				Level 1				Level 2				Level 3
Embedded conversion derivative liability		$	3,981			$	-			$	-			$	3,981

			December 31, 2011
Embedded conversion liability		$	1,238			$	-			$	-			$	1,238

Reconciliation of Financial Instruments Recognized at Fair Value

The following table reconciles, for the year ended December 31, 2012 and 2011, the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements (in thousands):

Balance of embedded conversion derivative liability as of December 31, 2010		$	-
Fair value of embedded conversion derivative liabilities at issuance			1,731
Reductions in fair value due to conversion of Convertible Debentures into common stock			(1,037	)
Loss on fair value adjustments to embedded conversion derivative liabilities			544
Balance of embedded conversion derivative liability as of December 31, 2011		$	1,238
Fair value of embedded conversion derivative liabilities at issuance			2,129
Reductions in fair value due to conversion of Convertible Debentures into common stock			(544	)
Debt modification expense			432
Loss on fair value adjustments to embedded conversion derivative liabilities			726
Balance of embedded conversion derivative liabilities at December 31, 2012		$	3,981

Schedule Of Fair Value Assumptions Of Derivatives

The derivatives were valued using the Black-Scholes option pricing model with the following assumptions:

		December 31, 2012				December 31, 2011
Market value of stock on measurement date		$	0.0085			$	0.0089
Risk-free interest rate			0.15	%			0.12	%
Dividend yield			0	%			0	%
Volatility factor			141	%			192	%
Term			1 year				1 year

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References+ Details