Fair Value Measures (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Measures

Summary of assets and liabilities measured at fair value

			Fair Value Measurements at Reporting Date Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
	Balance as of		Identical		Observable		Unobservable
	March 31,		Assets		Inputs		Inputs
Description	2013		(Level 1)		(Level 2)		(Level 3)
Liabilities
Convertible notes	$	9,482,000	$	—	$	—	$	9,482,000
Warrant liabilities	$	12,481,000	$	—	$	—	$	12,481,000
Total Liabilities	$	21,963,000	$	—	$	—	$	21,963,000

Schedule of changes in the Convertible Notes, Second Tranche Convertible Notes, Third Tranche Convertible Notes, Investor Warrants, 2012 Warrants, Third Tranche Warrants, 2013 Warrants and Additional 2013 Warrants

	Fair Value of 2011 Convertible Notes			Fair Value of 2011 Warrant Liabilities			Fair Value of 2012 Convertible Notes			Fair Value of 2012 Warrant Liabilities			Fair Value of Third Tranche Convertible Notes			Fair Value of Third Tranche Warrant Liabilities			2013 Warrants		2013 SPA Option		Total
Balance December 31, 2011	$	5,327,000		$	1,600,000		$	—		$	—		$	—		$	—		$	—	$	—	$	6,927,000
Amortization of debt discount	$	66,000		$	—		$	—		$	—		$	—		$	—		$	—	$	—	$	66,000
Fair value adjustment	$	3,107,000		$	2,400,000		$	—		$	—		$	—		$	—		$	—	$	—	$	5,507,000
Balance March 31, 2012	$	8,500,000		$	4,000,000		$	—		$	—		$	—		$	—		$	—	$	—	$	12,500,000
Balance December 31, 2012	$	6,510,000		$	2,000,000		$	1,588,000		$	1,800,000		$	—		$	—						$	11,898,000
Allocation of initial proceeds	$	—		$	—		$	—		$	—		$	142,000		$	108,000		$	—	$	—	$	250,000
Initial fair value adjustment	$	—		$	—		$	—		$	—		$	252,000		$	192,000		$	—	$	—	$	444,000
January 16, 2013	$	6,510,000		$	2,000,000		$	1,588,000		$	1,800,000		$	394,000		$	300,000		$	—	$	—	$	12,592,000
Amortization of debt discount	$	38,000		$	—		$	55,000		$	—		$	2,000		$	—		$	—	$	—	$	95,000
Fair value adjustment	$	(370,000	)	$	—		$	(72,000	)	$	—		$	(8,000	)	$	—		$	—	$	—	$	(450,000	)
Carrying value of old debt at modification	$	(6,178,000	)	$	—		$	(1,571,000	)	$	—		$	(388,000	)	$	—		$	—	$	—	$	(8,137,000	)
Fair value of new debt at modification	$	6,070,000		$	—		$	1,516,000		$	—		$	386,000		$	—		$	—	$	—	$	7,972,000
Modification of warrants	$	—		$	1,916,000		$	—		$	632,000		$	—		$	—		$	—	$	—	$	2,548,000
Cancellation/retirement of warrants	$	—		$	—		$	—		$	(800,000	)	$	—		$	(300,000	)	$	—	$	—	$	(1,100,000	)
Fair value of instruments at issuance	$	—		$	—		$	—		$	—		$	—		$	—		$	2,759,000	$	1,211,000	$	3,970,000
February 22, 2013	$	6,070,000		$	3,916,000		$	1,516,000		$	1,632,000		$	386,000		$	—		$	2,759,000	$	1,211,000	$	17,490,000
Exercise of warrants	$	—		$	(844,000	)	$	—		$	—		$	—		$	—		$	—	$	—	$	(844,000	)
Fair value adjustment	$	1,130,000		$	2,014,000		$	284,000		$	326,000		$	96,000		$	—		$	884,000	$	583,000	$	5,317,000
March 31, 2013	$	7,200,000		$	5,086,000		$	1,800,000		$	1,958,000		$	482,000		$	—		$	3,643,000	$	1,794,000	$	21,963,000

Convertible Notes

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	December 31, 2012			February 22, 2013			March 31, 2013
Stock Price	$	0.15		$	0.14		$	0.17
Strike Price	$	0.10		$	0.10		$	0.10
Expected remaining term (in years)	1.15			2.35			2.25
Stock Volatility	105		%	100		%	100		%
Risk-Free Rate	0.17		%	0.32		%	0.28		%
Dividend Rate	0		%	0		%	0		%
Outstanding Shares of Common Stock	32,434,430			59,576,097			64,389,835
Effective discount rate	13.1		%	13.2		%	11.6		%
Probability of forced redemption	20		%	20		%	20		%

Second Tranche Convertible Notes

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	December 31, 2012			February 22, 2013			March 31, 2013
Stock Price	$	0.15		$	0.14		$	0.17
Exercise Price	$	0.10		$	0.10		$	0.10
Expected remaining term (in years)	2.50			2.35			2.25
Stock Volatility	100		%	100		%	100		%
Risk-Free Rate	0.31		%	0.32		%	0.28		%
Dividend Rate	0		%	0		%	0		%
Outstanding Shares of Common Stock	32,434,430			59,576,097			64,389,835
Effective discount rate	13.2		%	13.2		%	13.2		%
Probability of forced redemption	20		%	20		%	20		%

Third Tranche Convertible Notes

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	January 16, 2013			February 22, 2013			March 31, 2013
Stock Price	$	0.15		$	0.14		$	0.17
Exercise Price	$	0.10		$	0.10		$	0.10
Expected remaining term (in years)	3			2.90			2.80
Stock Volatility	100		%	100		%	100		%
Risk-Free Rate	0.36		%	0.39		%	0.34		%
Dividend Rate	0		%	0		%	0		%
Outstanding Shares of Common Stock	32,434,430			59,576,097			64,389,835
Effective discount rate	13.2		%	13.2		%	13.2		%
Probability of forced redemption	20		%	20		%	20		%

2011 Warrants | Black-Scholes-Merton option-pricing model

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	December 31, 2012			February 22, 2013			March 31, 2013
Stock Price	$	0.15		$	0.14		$	0.17
Exercise Price	$	0.15		$	0.15		$	0.098
Expected Life (in years)	3.15			3.00			2.90
Stock Volatility	100		%	100		%	100		%
Risk-Free Rate	0.39		%	0.40		%	0.24		%
Dividend Rate	0		%	0		%	0		%
Outstanding Shares of Common Stock	32,434,430			59,576,097			64,389,835

$0.15 Warrants | Black-Scholes-Merton option-pricing model

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	December 31, 2012			February 22, 2013			March 31, 2013
Stock Price	$	0.15		$	0.14		$	0.17
Exercise Price	$	0.15		$	0.15		$	0.098
Expected Life (in years)	4.50			4.38			4.26
Stock Volatility	100		%	100		%	100		%
Risk-Free Rate	0.63		%	0.70		%	0.62		%
Dividend Rate	0		%	0		%	0		%
Outstanding Shares of Common Stock	32,434,430			59,576,097			64,389,835

$0.25 Warrants | Black-Scholes-Merton option-pricing model

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	December 31, 2012
Stock Price	$	0.15
Exercise Price	$	0.25
Expected Life (in years)	4.50
Stock Volatility	100		%
Risk-Free Rate	0.63		%
Dividend Rate	0		%
Outstanding Shares of Common Stock	32,434,430

Third Tranche Warrants | Black-Scholes-Merton option-pricing model

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	January 16, 2013
Stock Price	$	0.15
Exercise Price	$	0.15
Expected Life (in years)	5
Stock Volatility	110		%
Risk-Free Rate	0.75		%
Dividend Rate	0		%
Outstanding Shares of Common Stock	32,434,430

2013 Warrants | Monte Carlo simulation model

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	February 22, 2013			March 31, 2013
Stock Price	$	0.12		$	0.16
Exercise Price	$	0.20		$	0.20
Expected Life (in years)	5			4.90
Stock Volatility	110		%	110		%
Risk-Free Rate	0.84		%	0.75
Number of Steps	100,000			100,000
Outstanding Shares of Common Stock	59,576,097			64,389,835

2013 SPA Option | Black-Scholes-Merton option-pricing model

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	February 22, 2013			March 31, 2013
Stock Price	$	0.14		$	0.17
Exercise Price	$	0.15		$	0.15
Expected Life (in years)	0.75			0.64
Stock Volatility	110		%	110		%
Risk-Free Rate	0.15		%	0.84		%
Dividend Rate	0		%	0		%
Outstanding Shares of Common Stock	73,042,764			77,856,502

2013 SPA Option | Monte Carlo simulation model

Convertible Notes and Warrant Liabilities

Schedule of key inputs required to estimate fair value

Input	February 22, 2013			March 31, 2013
Stock Price (simulated)	$	0.10		$	0.66
Exercise Price	$	0.20		$	0.20
Expected Life (in years)	5.00			5.00
Stock Volatility	110		%	110		%
Risk-Free Rate	1.158		%	1.025		%
Number of Steps	10,000			10,000