WARRANTS (Tables)

12 Months Ended

Dec. 31, 2012

The following reflects the weighted-average assumptions for each of the periods indicated:


	Year Ended December 31,
	2012			2011			2010
Risk-free interest rate		0.2% - 0.3	%		0.1% - 0.4	%		0.6% - 1.0	%
Expected dividend yield		0	%		0	%		0	%
Expected lives		1.1 - 1.6 years			1.0 - 2.7 years			2.0 - 3.7 years
Expected volatility		139.2% - 164.1	%		71.8% - 75.6	%		84.7% - 90.1	%
Warrants classified as liabilities		3,127,618			4,824,827			4,901,591
Market value of stock at beginning of year	$	4.50		$	12.72		$	8.76
Market value of stock at end of year	$	25.80		$	4.50		$	12.72

Reconciliation of Change in Value of Warrants Recorded as Liabilities

A reconciliation of the change in value of the Company’s warrants recorded as liabilities for the years ended December 31, 2012, 2011 and 2010 is as follows:


	For the Year Ended December 31,
	2012			2011			2010
	(in thousands)
Balance at beginning of year	$	5,446		$	39,111		$	27,609
Change in value of warrants		91,938			(33,022	)		11,502
Reclassification to shareholders’ equity upon exercise of warrants		(32,191	)		(643	)		0
Issuances		0			0			0

Balance at end of year	$	65,193		$	5,446		$	39,111

Summary of Warrant Activity

A summary of the Company’s warrant activity with respect to 2012, 2011 and 2010 is as follows:


	For the Year Ended December 31,
	2012					2011					2010
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Warrants outstanding at beginning of year		4,867,477		$	9.54		4,944,241		$	9.48		5,388,833		$	20.40
Granted		0			0		0			0		0			0
Exercised		(1,739,859	)		11.81		(76,764	)		8.34		(51,333	)		10.68
Expired		0			0		0			0		(393,259	)		159.00

Warrants outstanding at end of year		3,127,618		$	8.48		4,867,477		$	9.54		4,944,241		$	9.48

Exercisable at end of year		3,127,618		$	8.48		4,867,477		$	9.54		4,944,241		$	9.48

Summary of Information about Warrants Outstanding

The following table summarizes information about warrants outstanding at December 31, 2012.


Issue Date	Exercise Price		Outstanding Warrants at December 31, 2012		Expiration Date		Weighted Average Remaining Contractual Life (Years)		Exercisable Warrants
1/30/2009	$	6.96		1,842,551		7/30/2014		1.6		1,842,551
1/30/2009	$	8.70		3,912		1/30/2014		1.1		3,912
8/25/2009	$	10.68		1,281,155		8/31/2014		1.7		1,281,155

				3,127,618						3,127,618

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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