Stockholders' Equity-Common and Preferred Shares (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Measurements on Recurring and Nonrecurring Basis

The Series A Warrants and Series B Warrants granted were valued using the Black-Scholes valuation model and the following Level 3 input assumptions:

Weighted Average Assumptions


	April 2013 Private Placement Series A Warrants			April 2013 Private Placement Series B Warrants
Risk-free interest rate		0.24	%		0.24	%
Expected life (years)		2.3			1.9
Expected volatility		87	%		87	%
Dividend yield		0.00	%		0.00	%

The Series B Preferred Stock was valued using Level 2 inputs by reference to the market value of the Company’s common stock into which the Series B Preferred Stock is convertible. The warrants granted were valued using the Black-Scholes valuation model and the following Level 3 input assumptions:

Weighted Average Assumptions


	September 2013 Private Placement Warrants
Risk-free interest rate		0.24	%
Expected life (years)		1.9
Expected volatility		79	%
Dividend yield		0.00	%

Summary of the Company's Outstanding Common Stock Warrants

The following is a summary of the Company’s outstanding common stock warrants as of March 31, 2014 and December 31, 2013:


	Date of Issuance		Exercise Price		Number of Warrants outstanding as of: (In thousands)
Warrants Issued in Connection with:	Date of Issuance		Exercise Price		March 31, 2014		December 31, 2013
Direct Registration Series I Warrants		07/20/09	$	504.00		12		12
Private Placement Series A Warrants		04/16/13	$	3.40		1,460		1,460
Private Placement Series B Warrants		04/16/13	$	3.40		757		1,107
2013 Private Placement Warrants		09/23/13	$	2.24		—		2,452
2013 Private Placement Warrants		09/23/13	$	2.80		147		147
2014 Public Offering Warrants		02/18/14	$	2.75		1,879		—
2014 Public Offering Warrants		02/18/14	$	2.56		293		—

Total Warrants Outstanding						4,548		5,178

Summary of the Company's Stock Option Activity under its 2005 Plan

The following is a summary of the Company’s stock option activity under its 2005 Plan for the three months ended March 31, 2014:


	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
	(In thousands)				(Years)		(In thousands)
Options outstanding at December 31, 2013		192	$	12.54		7.61
Granted		56	$	2.74

Options outstanding at March 31, 2014		248	$	10.33		7.55	$	86

Options exercisable at March 31, 2014		143	$	13.59		6.51	$	51
Options vested or expected to vest at March 31, 2014		222	$	10.86		7.38	$	78

Weighted-Average Assumptions

The fair values for the stock options granted were estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for the three months ended March 31, 2014:


Weighted Average Assumptions
Risk-free interest rate	1.70	%
Expected life (years)	4
Expected volatility	97	%
Dividend yield	0.00	%

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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