8. FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Measurements Tables

Assumptions used and related fair values for warrants

Significant assumptions used and related fair values for the warrants as of March 31, 2013 were as follows:

Original Issuance	Exercise Price		Volatility		Risk-Free Interest Rate		Term (years)		Discount for Marketability restrictions		Warrants Outstanding		Fair Value
03/28/2013	$	7.80		71.1%		0.24%		2.00		38.2%		788,000	$	882,000
01/11/2013	$	7.80		72.5%		0.77%		4.79		54.4%		1,709,000		2,728,000
09/26/2012	$	8.85		84.2%		0.31%		2.49		75.9%		1,771,000		776,000
07/3/2012	$	7.50		71.1%		0.57%		4.26		51.8%		1,812,000		2,880,000
07/3/2012	$	6.45		63.7%		0.14%		0.76		57.6%		804,000		335,000
12/13/2011	$	11.25		68.1%		0.57%		3.71		47.1%		306,000		478,000
													$	8,079,000

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

Original Issuance	Exercise Price		Volatility		Risk-Free Interest Rate		Term (years)		Discount for Marketability restrictions		Warrants Outstanding		Fair Value
09/26/2012	$	8.85		70.2%		0.36%		2.74		53.9%		1,833,000	$	1,112,000
07/3/2012	$	7.50		76.1%		0.72%		4.51		55.5%		1,867,000		2,756,000
07/3/2012	$	6.45		69.3%		0.16%		1.01		55.5%		930,000		509,000
12/13/2011	$	12.45		74.4%		0.54%		3.95		52.3%		330,000		480,000
10/6/2010	$	1.80		76.0%		0.72%		4.80		46.4%		17,000		35,000
													$	4,892,000

Assumptions used and related fair value for conversion feature

Original Issuance	Conversion Price		Volatility		Risk-Free Interest Rate		Term (years)		Market Discount		Fair Value
3/28/13	$	15.00		62.2%		0.14%		1.0		24.5%	$	1,400,800

Summary of fair value measurements by level

The following table summarizes fair value measurements by level at March 31, 2013 (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts(1)	$	205	$	–	$	–	$	205
Total Assets	$	205	$	–	$	–	$	205
Liabilities:
Warrants(2)	$	–	$	–	$	8,079	$	8,079
Conversion feature(2)		–		–		1,401		1,401
Commodity contracts(3)		115		–		–		115
Total Liabilities	$	115	$	–	$	9,480	$	9,595

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

(2) Included in warrant liabilities and conversion feature at fair value in the consolidated balance sheets.

(3) Included in accrued liabilities in the consolidated balance sheets.

The following table summarizes fair value measurements by level at December 31, 2012 (in thousands):

	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 accrued liabilities in the consolidated balance sheets.

Changes in fair value of Level 3 inputs

	Warrants			Conversion Feature
Balance, December 31, 2012	$	4,892		$	–
Issuance of warrants in January offering		2,657			–
Issuance of notes and warrants in March offering		883			1,401
Exercises of warrants		(260	)		–
Adjustments to fair value for the period		(93	)		–
Balance, March 31, 2013	$	8,079		$	1,401