WARRANTS (Tables)

12 Months Ended

Dec. 31, 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 years ended December 31, 2013, 2012 and 2011 is as follows:


	For the Year Ended December 31,
	2013			2012			2011
	(in thousands)
Balance at beginning of year	$	65,193		$	5,446		$	39,111
Change in value of warrants		22,027			91,938			(33,022	)
Reclassification to stockholders’ equity upon exercise of warrants		(78,214	)		(32,191	)		(643	)
Balance at end of year	$	9,006		$	65,193		$	5,446

Summary of Warrant Activity

A summary of the Company’s warrant activity with respect to 2013, 2012 and 2011 is as follows:


	For the Year Ended December 31,
	2013					2012					2011
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Warrants outstanding at beginning of year		3,127,618		$	8.48		4,867,477		$	9.54		4,944,241		$	9.48
Granted		—			—		—			—		—			—
Exercised		(2,336,110	)		7.96		(1,739,859	)		11.81		(76,764	)		8.34
Expired		—			—		—			—		—			—

Warrants outstanding at end of year		791,508		$	10.05		3,127,618		$	8.48		4,867,477		$	9.54

Exercisable at end of year		791,508		$	10.05		3,127,618		$	8.48		4,867,477		$	9.54

Summary of Information about Warrants Outstanding

The following table summarizes information about warrants outstanding at December 31, 2013, all of which are exercisable.


Issue Date	Exercise Price		Outstanding Warrants at December 31, 2013		Expiration Date
1/30/2009	$	6.96		133,637		7/30/2014
8/25/2009	$	10.68		657,871		8/31/2014

Warrant

Weighted-Average Assumptions

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


	Year Ended December 31,
	2013			2012			2011
Risk-free interest rate		0.1	%		0.2% - 0.3	%		0.1% - 0.4	%
Expected dividend yield		0	%		0	%		0	%
Expected lives		0.6 - 0.7 years			1.1 - 1.6 years			1.0 - 2.7 years
Expected volatility		95.51	%		139.2% - 164.1	%		71.8% - 75.6	%
Warrants classified as liabilities		791,508			3,127,618			4,824,827
Market value of stock at beginning of year	$	25.80		$	4.50		$	12.72
Market value of stock at end of year	$	20.37		$	25.80		$	4.50

- 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