12. FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Significant assumptions used in the valuations

Significant assumptions used and related fair values for the warrants as of December 31, 2012 are as follows:

Original Issuance	Exercise Price		Volatility		Risk Free Interest Rate		Term (years)		Market Discount		Warrants Outstanding		Fair Value
09/26/2012	$	0.59		70.2%		0.36%		2.74		53.9%		27,500,000	$	1,112,000
07/3/2012	$	0.50		76.1%		0.72%		4.51		55.5%		28,000,000		2,756,000
07/3/2012	$	0.43		69.3%		0.16%		1.01		55.5%		13,950,000		509,000
12/13/2011	$	0.83		74.4%		0.54%		3.95		52.3%		4,956,250		480,000
10/6/2010	$	0.12		76.0%		0.72%		4.80		46.4%		252,101		35,000
													$	4,892,000

Significant assumptions used and related fair values for the warrants as of December 31, 2011 are as follows:

Original Issuance	Exercise Price		Volatility		Risk Free Interest Rate		Term (years)		Market Discount		Warrants Outstanding		Fair Value
12/13/2011	$	1.50		68.0%		0.83%		4.96		52.0%		4,956,250	$	1,695,000
10/6/2010	$	0.45		68.0%		1.09%		5.90		47.4%		504,202		226,000
													$	1,921,000

Summary of fair value measurements by level

	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts(1)	$	189	$	–	$	–	$	189
Total Assets	$	189	$	–	$	–	$	189
Liabilities:
Warrants	$	–	$	–	$	4,892	$	4,892
Commodity contracts(2)		167		–		–		167
Total Liabilities	$	167	$	–	$	4,892	$	5,059

(1) Included in other current assets in the consolidated balance sheets. 

(2) Included in other current liabilities in the consolidated balance sheets.

The following table summarizes fair value measurements by level at December 31, 2011 (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts(1)	$	244	$	–	$	–	$	244
Total Assets	$	244	$	–	$	–	$	244
Liabilities:
Warrants	$	–	$	–	$	1,921	$	1,921
Commodity contracts(2)		500		–		–		500
Total Liabilities	$	500	$	–	$	1,921	$	2,421

(1) Included in other assets in the consolidated balance sheets. 

(2) Included in other liabilities in the consolidated balance sheets.

Changes in the fair value of the Company's Level 3 inputs

The changes in the Company’s fair value of its Level 3 inputs were as follows (in thousands):

	Warrants			Convertible Notes
Balance, December 31, 2010	$	5,718		$	38,108
Retirement of Convertible Notes		–			(35,000	)
Issuance of 2011 Warrants		1,809			–
Exercises of Warrants		(1,155	)		–
Adjustments to fair value for the period		(4,451	)		(3,108	)
Balance, December 31, 2011	$	1,921		$	–
Issuance of July Offering Warrants	$	3,380		$	–
Issuance of September Offering Warrants		1,658			–
Exercises of Warrants		(113	)		–
Adjustments to fair value for the period		(1,954	)		–
Balance, December 31, 2012	$	4,892		$	–