Accrued Liabilities

12 Months Ended

Dec. 31, 2013

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Note 6 – Accrued Liabilities

The following table summarizes our accrued liabilities of December 31, 2013 and 2012:

	As of December 31,
	2013		2012
	(in thousands)

Accrued operating expenses	$	112	$	347
Accrued legal		114		27
Accrued payroll related expenses		65		6
Accrued interest		-		19
Total	$	291	$	399

On May 25, 2012, the terms of the debentures held by YA Global were modified to extend the stated maturity dates and reduce the interest rates to 9.5% per year. The effect of the modifications exceeded a significance threshold relative to the debentures’ cash flows resulting in an effective extinguishment whereby the existing debentures were considered to be retired and new debentures issued. Following the modification, the debentures are carried as hybrid instruments and are recorded at fair value. As a result, interest associated with the debentures is considered and accounted for in the consolidated statements of operations within the change in fair value of hybrid financial instruments line item rather than being reflected as an interest expense. Similarly, amounts previously reflected in the consolidated balance sheets as accrued interest are now considered and accounted for within the debentures payable – carried at fair value line item.