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Warrants - Note 8
6 Months Ended
Jun. 30, 2011
Equity [Abstract]  
Warrants

8. WARRANTS

Prior to 2011, we had common stock warrants outstanding that were issued in connection with certain notes. The warrants met the definition of derivative instruments that must be accounted for as liabilities because we could not engage in certain corporate transactions affecting the common stock unless we made a cash payment to the holders of the warrants. During 2010 these warrants expired unexercised. We recorded changes in the fair values of the warrants in the statement of operations each period. We valued the warrants at June 30, 2010 using the Black-Scholes option pricing model with the following assumptions: expected volatility of 80%; expected dividend yield of 0%; risk free interest rate of 0.21%; and contractual lives of 0.4 years. The change in value of the warrants of $98,000 and $491,000 for the three and six months ended June 30, 2010, respectively, was recorded as a non-operating loss and is included in "Gain on derivative instruments, net" in the consolidated statement of operations.