WARRANTS (Tables)

3 Months Ended

Mar. 31, 2013

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


	Three Months Ended March 31,
	2013			2012
Risk-free interest rate		0.1	%		0.2%-0.3	%
Expected dividend yield		0	%		0	%
Expected lives		0.8-1.4 years			0.7-2.4 years
Expected volatility (1)		99.4%-110.7	%		65.1%-82.4	%
Shares underlying warrants classified as liabilities		3,093,676			4,824,827
Market value of stock at beginning of year	$	25.80		$	4.50
Market value of stock at end of period	$	36.95		$	9.24

(1)

For the three month period ended March 31, 2013, expected volatility has been estimated using a blend of calculated volatility of the Company’s common stock over a historical period and implied volatility in exchange-traded options associated with the Company’s common stock. Prior to January 1, 2013, expected volatility has been estimated using calculated volatility of the Company’s common stock over a historical period commensurate with the expected term of the option.

Reconciliation of Change in Value of Company's Warrants Liability

A reconciliation of the change in value of the Company’s warrants recorded as liabilities for the three months ended March 31, 2013 and 2012 is as follows:


	Three Months Ended March 31,
	2013			2012
	(in thousands)			(in thousands)

Balance at beginning of period	$	65,193		$	5,446
Increase in value of warrants		26,906			10,926
Reclassification to shareholders’ equity upon exercise of warrants		(1,022	)		—

Balance at end of period	$	91,077		$	16,372

Summary of Information about Warrants Outstanding

The following table summarizes the outstanding warrants at March 31, 2013.


Issue Date	Exercise Price		Outstanding Warrants at March 31, 2013		Expiration Date	Weighted Average Remaining Contractual Life (Years)	Exercisable Warrants
1/30/2009	$	6.96		1,819,567	7/30/2014	1.3		1,819,567
1/30/2009	$	8.70		3,912	1/30/2014	0.8		3,912
8/25/2009	$	10.68		1,270,197	8/31/2014	1.4		1,270,197

				3,093,676				3,093,676

- 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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