STOCKHOLDERS' DEFICIT (Tables)

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Attributable to Parent [Abstract]

Schedule of allocation of proceeds from the Purchase Agreement based on relative fair values

The proceeds from the Purchase Agreement were allocated among the instruments based on their relative fair values as follows (in thousands):



	Relative Fair Value Allocation
Financial instruments:	March 9, 2015
Series A Preferred Stock ¹	$	59,355
PIPE Warrants ²	3,145
Total Investment	$	62,500

¹ The fair value of the Series A Preferred Stock was determined using a binomial lattice model using the following assumptions: volatility of 55%, risk-free rate of 0.92%, and a dividend rate of 11.5%. The model also utilized various assumptions about the time to maturity and conditions under which conversion features would be exercised.

² The fair value of the PIPE Warrants was determined using the Black Scholes model using the following assumptions: volatility of 55%, risk-free rate of 0.92%, and stated exercise prices. The model also utilized various assumptions about the time to maturity and conditions under which exercise would occur.

Carrying value of Series A and C Preferred Stock

The following table sets forth the activity recorded during the year ended December 31, 2016 related to the Series A Preferred Stock (in thousands) issued for both the PIPE Transaction and the Rights Offering:



Series A Preferred Stock carrying value at December 31, 2015	$	62,918
Exchange of Series A for Series C	(60,776		)
Discount related to beneficial conversion feature	40
Dividends recorded through December 31, 2016 ¹	280
Series A Preferred Stock carrying value at December 31, 2016	$	2,462

¹Dividends recorded reflect the increase in the Liquidation Preference associated with unpaid dividends.

The following table sets forth the activity recorded during the year ended December 31, 2016 related to the Series C Preferred Stock (in thousands):



Series C Preferred Stock carrying value at December 31, 2015	$	—
Exchange of shares - Series A to Series C	60,776
Accretion of discount related to issuance costs	652
Dividends recorded through December 31, 2016 ¹	8,112
Series C Preferred Stock carrying value at December 31, 2016	$	69,540

¹Dividends recorded reflect the increase in the Liquidation Preference associated with unpaid dividends.

Carrying value of Pipe Warrants

The following sets forth the carrying value of the PIPE Warrants which is classified as equity on the Consolidated Balance Sheet (in thousands):



	Carrying Value
PIPE Warrants	March 9, 2015
Fair value allocated to PIPE Warrants	$	3,145
Discount related to issuance costs	(203		)
Carrying value of PIPE Warrants	$	2,942

- 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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