WARRANTS (Tables)

9 Months Ended

Sep. 30, 2013

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 and nine months ended September 30, 2013 is as follows:


	Three months ended September 30, 2013			Nine months ended September 30, 2013
	(in thousands)			(in thousands)
Balance at beginning of period	$	79,116		$	65,193
Increase in value of warrants		17,160			46,011

Reclassification to stockholders’ equity upon exercise of warrants		(60,282	)		(75,210	)

Balance at end of period	$	35,994		$	35,994

Summary of Information about Warrants Outstanding

The following table summarizes the outstanding warrants at September 30, 2013.


Issue Date	Exercise Price		Outstanding Warrants at September 30, 2013		Expiration Date	Weighted Average Remaining Contractual Life (Years)		Exercisable Warrants
1/30/2009	$	6.96		232,103	7/30/2014		0.8		232,103
8/25/2009	$	10.68		727,180	8/31/2014		0.9		727,180

				959,283					959,283

Warrant

Weighted-Average Assumptions

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


	September 30, 2013			December 31, 2012
Risk-free interest rate		0.1	%		0.2%-0.3	%
Expected dividend yield		0	%		0	%
Expected lives		0.8-0.9 years			1.1-1.6 years
Expected volatility (1)		67.8%-72.7	%%		139.2%-164.1	%
Shares underlying warrants classified as liabilities		959,283			3,127,618
Market value of stock at beginning of year	$	25.80		$	4.50
Market value of stock at end of period	$	47.23		$	25.80

(1)

For the three and nine months ended September 30, 2013, expected volatility was 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 was estimated using calculated volatility of the Company’s common stock over a historical period commensurate with the expected term of the option.

- 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.

+ References+ Details