Liability Attributable to Warrants (Tables)

3 Months Ended

Mar. 31, 2013

Liability Attributable to Warrants [Abstract]

Assumption used to determine the fair value of warrants

We used a binomial pricing model to determine the fair value of our warrants as of March 31, 2013 and December 31, 2012, the balance sheet date, using the following assumptions:

	For the Three Months Ended December 31, 2012
	Estimated Volatility			Annualized Forfeiture Rate		Expected Option Term (Years)		Estimated Exercise Factor		Risk-Free Interest Rate			Dividends
2011 Private Placement		145	%		—		3.42		4		0.36	%		—
ipCapital		145	%		—		3.54		4		0.36	%		—

For the Year Ended December 31, 2012
	Estimated Volatility	Annualized Forfeiture Rate	Expected Option Term (Years)	Estimated Exercise Factor	Risk-Free Interest Rate	Dividends
2011 Private Placement	159% - 202%	—	3.67 – 4.42	10	0.47% - 1.04%	—
ipCapital	163% - 201%	—	3.80 – 4.54	10	0.47% - 1.04%	—

Reconciliation of the warrants liability measured at fair value using significant unobservable inputs

The following table is a reconciliation of the warrants liability measured at fair value using significant unobservable inputs (Level 3) for the three months ended March 31, 2013: During the three month period ended March 31, 2013 warrants were exercised for 462,000 shares.

Warrants liability – December 31, 2012 fair value	$	7,390,100
Change in fair value of warrant liability recorded in other expenses		3,448,700
Accretion of warrant liability recorded in general and administrative expense		73,500
Reclassification of warrants liability to equity from the exercise of warrants		(215,100	)
Warrants liability – March 31, 2013 fair value	$	10,697,200

Warrants outstanding

The following table reconciles the number of warrants outstanding for the periods ended March 31, 2013 and 2012, respectively.

For the Period Ended March 31, 2013
	Beginning Outstanding		Exercised		Ending Outstanding
2011 Private Placement		23,075,000		462,500		22,612,500
ipCapital		400,000		—		400,000
Total		23,475,000		462,500		23,012,500

For the Period Ended March 31, 2012
	Beginning Outstanding		Exercised		Ending Outstanding
2011 Private Placement		23,075,000		—		23,075,000
ipCapital		400,000		—		400,000
Total		23,475,000		—		23,475,000

- 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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