Common Stock Warrants

9 Months Ended

Sep. 30, 2011

Common Stock Warrants [Abstract]

Common Stock Warrants

6. Common Stock Warrants

In June 2011, and in connection with entering into the Amended Oxford/SVB Agreement (see note 5), the Company issued to Oxford and SVB warrants exercisable into an aggregate of 26,455 shares of common stock. The warrants are exercisable at $3.78 per share of common stock and have a term of 7 years. The value of the warrants of approximately $76,000 was recorded as debt discount and additional paid in capital in the consolidated balance sheet as of September 30, 2011.

In July 2011, upon the closing of and in connection with the Financing Agreement (see note 5), the Company issued to Cowen Royalty a warrant exercisable into 225,000 shares of common stock. The warrant is exercisable at $9.00 per share of common stock and has a term of 10 years. As the warrant contains covenants where compliance with such covenants may be outside of the Company's control, the warrant was recorded as a current liability and is marked to market at each reporting date. The fair value of the warrant was approximately $244,000 as of September 30, 2011.