InVivo Therapeutics (NVIVQ) 10-Q 5 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document and Entity Information	'	'
Entity Registrant Name	'INVIVO THERAPEUTICS HOLDINGS CORP.	'
Entity Central Index Key	'0001292519	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	93,547,062
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$17,634,000	$13,980,000
Restricted cash	371,000	602,000
Prepaid expenses and other current assets	342,000	20,000
Total current assets	18,347,000	14,602,000
Property, equipment and leasehold improvements, net	1,797,000	2,337,000
Other assets	141,000	157,000
Total assets	20,285,000	17,096,000
Current liabilities:	'	'
Accounts payable	711,000	899,000
Note payable-current portion	37,000	74,000
Capital lease payable	'	3,000
Derivative warrant liability	2,716,000	'
Accrued expenses	1,351,000	1,292,000
Total current liabilities	4,815,000	2,268,000
Loan payable	1,920,000	1,920,000
Note payable-less current portion	'	18,000
Total liabilities	6,735,000	4,206,000
Commitments and Contingencies	'	'
Stockholders' equity:	'	'
Common stock, $0.00001 par value, authorized 200,000,000 shares at September 30, 2014 and December 31, 2013; issued and outstanding 93,547,062 and 78,773,736 shares at September 30, 2014 and December 31, 2013, respectively	1,000	1,000
Additional paid-in capital	105,419,000	94,798,000
Deficit accumulated during the development stage	-91,870,000	-81,909,000
Total stockholders' equity	13,550,000	12,890,000
Total liabilities and stockholders' equity	$20,285,000	$17,096,000

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Consolidated Balance Sheets	'	'
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, authorized	200,000,000	200,000,000
Common stock, issued	93,547,062	78,773,736
Common stock, outstanding	93,547,062	78,773,736

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended		106 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Operating expenses:	'	'	'	'	'
Research and development	$2,385	$3,021	$8,678	$6,825	$34,471
General and administrative	1,800	2,386	5,317	6,505	28,444
Total operating expenses	4,185	5,407	13,995	13,330	62,915
Operating loss	-4,185	-5,407	-13,995	-13,330	-62,915
Other income (expense):	'	'	'	'	'
Other income	'	'	'	'	383
Interest income	2	4	4	13	75
Interest expense	-35	-34	-102	-95	-1,370
Modification of warrants	'	'	'	-765	-765
Derivatives gain (loss)	3,005	'	4,132	-18,871	-27,278
Other income (expense), net	2,972	-30	4,034	-19,718	-28,955
Net loss	($1,213)	($5,437)	($9,961)	($33,048)	($91,870)
Net loss per share, basic (in dollars per share)	($0.01)	($0.07)	($0.12)	($0.46)	($2.09)
Net loss per share, diluted (in dollars per share)	($0.01)	($0.07)	($0.12)	($0.46)	($2.09)
Weighted average number of common shares outstanding, basic (in shares)	101,635,856	78,603,114	81,761,045	72,391,396	44,047,625
Weighted average number of common shares outstanding, diluted (in shares)	101,635,856	78,603,114	81,761,045	72,391,396	44,047,625

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended		106 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Cash flows from operating activities:	'	'	'
Net loss	($9,961)	($33,048)	($91,870)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'	'
Depreciation and amortization expense	568	545	1,913
Non-cash derivatives (gain) loss	-4,132	18,871	27,278
Non-cash interest expense	'	'	985
Non-cash loss from modification of warrants	'	765	765
Common stock issued to 401(k) plan	118	124	443
Common stock issued for services	282	'	516
Share-based compensation expense	2,278	2,201	8,447
Changes in operating assets and liabilities:	'	'	'
Restricted cash	230	'	-372
Prepaid expenses	-322	26	-353
Other assets	3	3	-192
Accounts payable	-188	-445	711
Accrued interest payable	21	'	6
Accrued expenses	38	242	1,330
Net cash used in operating activities	-11,065	-10,716	-50,393
Cash flows from investing activities:	'	'	'
Purchases of property and equipment	-14	-651	-3,534
Net cash used in investing activities	-14	-651	-3,534
Cash flows from financing activities:	'	'	'
Proceeds from issuance of note payable	'	150	150
Repayment of note payable	-55	'	-112
Proceeds from issuance of convertible notes payable	'	'	4,181
Proceeds from convertible bridge notes	'	'	500
Principal payments on capital lease obligation	-3	-25	-94
Proceeds from loan payable	'	342	2,241
Repayment of loan payable, net	'	'	-321
Proceeds from issuance of common stock and warrants	14,791	16,408	65,016
Net cash provided by financing activities	14,733	16,875	71,561
Increase in cash and cash equivalents	3,654	5,508	17,634
Cash and cash equivalents at beginning of period	13,980	12,825	'
Cash and cash equivalents at end of period	17,634	18,333	17,634
Supplemental disclosure of cash flow information and non-cash transactions:	'	'	'
Cash paid for interest	77	91	359
Conversion of convertible notes payable and accrued interest into common stock	'	'	4,672
Conversion of convertible bridge note payable and accrued interest into common stock	'	'	505
Asset acquired through capital lease obligation	'	'	94
Beneficial conversion feature on convertible and bridge notes payable	'	'	134
Fair value of warrants issued with bridge notes payable	'	'	179
Fair value of warrants issued in connection with loan agreement	'	'	42
Fair value of warrants issued in connection with underwriting agreement	6,848	'	6,848
Reclassification of derivative warrant liability to additional paid-in capital	'	$33,456	$38,104

NATURE_OF_OPERATIONS_BASIS_OF_

NATURE OF OPERATIONS, BASIS OF PRESENTATION, AND RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2014
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS	'
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS	'
	1.NATURE OF OPERATIONS, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS
	Business
	InVivo Therapeutics Holdings Corp. was incorporated on April 2, 2003, and on October 26, 2010, acquired the business of InVivo Therapeutics Corporation, which was incorporated on November 28, 2005, and are continuing the existing business operations of InVivo Therapeutics Corporation as a wholly-owned subsidiary of InVivo Therapeutics Holdings Corp. Unless otherwise noted herein, the “Company” or “InVivo” refers to InVivo Therapeutics Holdings Corp. and its wholly owned subsidiary on a consolidated basis. The Company is a pioneering biomaterials and biotechnology company with a focus on treatment of spinal cord injuries. Its proprietary technologies incorporate intellectual property licensed under the Company’s exclusive, world-wide license from Children’s Medical Center Corporation (“CMCC”) and the Massachusetts Institute of Technology (“MIT’) and intellectual property that has been developed internally, including in collaboration with its advisors and partners.
	Since its inception, InVivo has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital. Accordingly, InVivo is considered to be in the development stage.
	Basis of Presentation
	The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) consistent with those applied in, and should be read in conjunction with, the Company’s audited financial statements and related footnotes for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on March 17, 2014 and amended on April 29, 2014. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the Company’s financial position as of September 30, 2014 and its results of operations and cash flows for the interim periods presented and are not necessarily indicative of results for subsequent interim periods or for the full year. The interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements as allowed by the relevant SEC rules and regulations; however, the Company believes that its disclosures are adequate to ensure that the information presented is not misleading.
	Recently Issued Accounting Pronouncements
	In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 provides new guidance related to the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This new guidance is effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. Beginning in 2015, the Company will apply the new guidance, as applicable, to future disposals of components or classifications as held for sale.
	In June 2014, the FASB issued ASU 2014-10, “Development Stage Entities,” Topic 915. The ASU 2014-10 removes Topic 915, Development Stage Entities in its entirety from FASB Accounting Standards Codification (“ASC”). It also eliminates the guidance in ASC 810 on how to assess whether a development stage entity has sufficient equity at risk in the evaluation of whether the development stage entity is a variable interest entity. Additionally, the ASU 2014-10 clarifies that all entities, including entities that have not begun operations, should provide the risk and uncertainty disclosures required in ASC 275. The amendments made by ASU 2014-10 are for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The Company is assessing the impact of ASU 2014-10 on its disclosures.

CASH_AND_CASH_EQUIVALENTS

CASH AND CASH EQUIVALENTS	9 Months Ended
	Sep. 30, 2014
CASH AND CASH EQUIVALENTS	'
CASH AND CASH EQUIVALENTS	'
	2.CASH AND CASH EQUIVALENTS
	As of September 30, 2014, the Company held $17,634,000 in cash and cash equivalents. From time to time, the Company may have cash balances in financial institutions in excess of insurance limits. The Company has never experienced any losses related to these balances. The Company’s cash equivalents are held in money market funds. Cash and cash equivalents consisted of the following (in thousands):
		September 30,		December 31,
		2014		2013
	Cash	$	336	$	219
	Money market fund	17,298		13,761
	Total cash and cash equivalents	$	17,634	$	13,980

RESTRICTED_CASH

RESTRICTED CASH	9 Months Ended
	Sep. 30, 2014
RESTRICTED CASH	'
RESTRICTED CASH	'
	3.RESTRICTED CASH
	Restricted cash for the nine months ended September 30, 2014 was $371,000 and represented $60,000 of security deposits related to the Company’s credit card account and a $311,000 cash account securing a standby letter of credit in favor of a landlord (see Note 5).

FAIR_VALUE_OF_ASSETS_AND_LIABI

FAIR VALUE OF ASSETS AND LIABILITIES	9 Months Ended
	Sep. 30, 2014
FAIR VALUE OF ASSETS AND LIABILITIES	'
FAIR VALUE OF ASSETS AND LIABILITIES	'
	4.FAIR VALUE OF ASSETS AND LIABILITIES
	The Company groups its assets and liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
	Level 1 — Valuation is based on quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.
	Level 2 — Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	Level 3 — Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
	The Company uses valuation methods and assumptions that consider among other factors the fair value of the underlying stock, risk-free interest rate, volatility, expected life and dividend rates in estimating fair value for the warrants considered to be derivative instruments.
	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
		At September 30, 2014
		Level 1		Level 2		Level 3		Fair Value
	Liabilities:
	Derivative warrant liability	$	—	$	2,716	$	—	$	2,716
		At December 31, 2013
		Level 1		Level 2		Level 3		Fair Value
	Liabilities:
	Derivative warrant liability	$	—	$	—	$	—	$	—

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES	'
COMMITMENTS AND CONTINGENCIES	'
	5.COMMITMENTS AND CONTINGENCIES
	Operating Lease Commitment
	On November 29, 2011 and as amended on September 17, 2012, the Company entered into a commercial lease for 26,150 square feet of office, laboratory and manufacturing space in Cambridge, Massachusetts (as subsequently amended, the “Cambridge Lease”). The term of the Cambridge Lease is for six years and three months, with one five-year extension option. The Cambridge Lease also requires a standby letter of credit in the amount of $311,000 (see Note 3).
	The Cambridge Lease contains certain rent escalation clauses. The Company recognizes rent expense on a straight-line basis over the term of the Cambridge Lease and records the difference between the amount charged to expense and the rent paid as a deferred rent liability. As of September 30, 2014, the amount of deferred rent liability is $522,000 and is included in accrued expenses.
	It is the Company’s policy to assess whether improvements made to the space rented under operating leases should be accounted for as “lessor” or “lessee” assets. If the landlord/lessor makes the improvements and presents the Company with the finished space on a “turnkey” basis, the Company views the assets as being lessor assets. When the Company does the remodeling work and receives an allowance that may or may not cover all the costs, the Company makes a judgment as to the classification between lessor and lessee assets. The Company considers an asset to be a lessor asset if all of the following criteria are met:
		·		the lease specifically requires the lessee to make the improvement,
		·		the improvement is fairly generic,
		·		the improvement increases the fair value of the property to the lessor, and
		·		the useful life of the improvement is longer than the Company’s lease term.
	If any of the above criteria are not met, the Company considers the assets to be lessee assets, which are recorded as leasehold improvements in the Company’s consolidated balance sheets and payments received from the lessor to fund any portion of the cost of lessee assets are accounted for as lease incentives. Assets considered to be lessor assets are not reflected in the Company’s consolidated balance sheets. To the extent that the Company paid for such lessor assets and was not reimbursed through construction allowances, such net payments are recorded as leasehold improvements, which are amortized to rent expense over the lease term. As of September 30, 2014, such leasehold improvements totaled $390,000.
	Pursuant to the terms of the Company’s non-cancelable lease agreements in effect at September 30, 2014, the future minimum rent commitments are as follows (in thousands):
	Year Ended December 31,
	2014		306
	2015		1,243
	2016		1,269
	2017		1,295
	2018		1,049
	Total		$	5,162
	Total rent expense for the nine months ended September 30, 2014 and 2013, including month-to-month leases, was $861,000 and $838,000, respectively. Total rent expense for the three months ended September 30, 2014 and 2013, including month-to-month leases, was $287,000 and $241,000, respectively
	On September 4, 2013, the Company entered into a settlement agreement with the landlord of one of its proprieties, which resulted in the receipt of approximately $286,000 in prepaid rent as consideration for the settlement of litigation. The settlement has been included in deferred rent payable, and the benefit will be amortized through rent expense over the lease term.
	Litigation
	On July 31, 2014, a putative securities class action lawsuit was filed in the United States District Court for the District of Massachusetts, naming our Company and Mr. Reynolds, as defendants. The lawsuit alleges violations of the Securities Exchange Act of 1934 in connection with allegedly false and misleading statements related to the timing and completion of the clinical study of our Scaffold product. The plaintiff seeks class certification for purchasers of our common stock during the period from April 5, 2013 through August 26, 2013 and unspecified damages. The Company intends to vigorously defend the lawsuit.

ACCRUED_EXPENSES

ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2014
ACCRUED EXPENSES	'
ACCRUED EXPENSES	'
	6.ACCRUED EXPENSES
	Accrued expenses consisted of the following (in thousands):
		September 30,		December 31,
		2014		2013
	Accrued bonus	$	484	$	566
	Accrued payroll	110		101
	Deferred rent payable	522		553
	Accrued severance	7		—
	Accrued vacation	116		23
	Other accrued expenses	112		49
	Total accrued expenses	$	1,351	$	1,292

NOTE_PAYABLE

NOTE PAYABLE	9 Months Ended
	Sep. 30, 2014
NOTE PAYABLE	'
NOTE PAYABLE	'
	7.NOTE PAYABLE
	In May 2013, the Company entered into a contract for the purchase of an Enterprise Resource Planning (“ERP”) system for $150,000. The total cost for the ERP system, including interest, was approximately $159,000, with an implicit interest rate of approximately 6%.
	Pursuant to the terms of the non-cancelable purchase agreement in effect at September 30, 2014, the future minimum principal payments are as follows (in thousands):
	Year Ended December 31,
	2014	18
	2015	19
	Total	$	37
	In the third quarter of 2013, the Company abandoned the implementation of the ERP system. As such, the ERP system cost of $150,000 was fully expensed in 2013.

LOAN_PAYABLE

LOAN PAYABLE	9 Months Ended
	Sep. 30, 2014
LOAN PAYABLE	'
LOAN PAYABLE	'
	8.LOAN PAYABLE
	In October 2012, the Company entered into a loan agreement with the Massachusetts Development Finance Agency (“MassDev”). The loan agreement provided the Company with a $2,000,000 line of credit from the Commonwealth of Massachusetts’ Emerging Technology fund, with $200,000 designated to be used for working capital purposes and the remainder to be used for the purchase of capital equipment. The annual interest rate is fixed at 6.5% with interest only payments for the first thirty months, commencing on November 1, 2012, and then equal interest and principal payments over the next fifty-four months, with the final maturity on October 5, 2019. Based on the $1,920,000 balance outstanding as of September 30, 2014, equal monthly principal payments of approximately $36,000 will be due commencing on May 1, 2015. Therefore, for the years ending December 31, 2015, 2016, 2017, 2018 and 2019, principal payments of approximately $284,000, $427,000, $427,000, $427,000 and $355,000, respectively, will be due. In September 2012, the Company was assessed a commitment fee totaling $15,000, which was charged to the Company as interest expense. In October 2012, the Company issued MassDev a warrant for the purchase of 36,145 shares of its common stock. The warrant has a seven-year term and is exercisable at $1.66 per share. The fair value of the warrant was determined to be $32,000 and was recorded as a deferred financing cost and is being amortized to interest expense over a seven-year period commencing in October 2012. Amortization of the deferred financing cost for the nine months ended September 30, 2014 was $3,000 and is included in interest expense in the Company’s consolidated statements of operations. The equipment line of credit is secured by substantially all the assets of the Company, excluding intellectual property. Interest expense related to this loan for the nine months ended September 30, 2014 and 2013 was $95,000 and $90,000, respectively. Interest expense related to this loan for the three months ended September 30, 2014 and 2013 was $32,000 and $32,000, respectively.

COMMON_STOCK

COMMON STOCK	9 Months Ended
	Sep. 30, 2014
COMMON STOCK	'
COMMON STOCK	'
	9.COMMON STOCK
	The Company has authorized 200,000,000 shares of common stock, $0.00001 par value per share, of which 93,547,062 shares were issued and outstanding as of September 30, 2014 and 78,773,736 shares were issued and outstanding as of December 31, 2013.
	During the nine months ended September 30, 2014, the Company issued an aggregate of 476,330 shares of common stock upon the exercise of stock options and received cash proceeds of approximately $162,000.
	During the nine months ended September 30, 2014, the Company issued an aggregate of 39,900 shares of common stock upon the exercise of warrants, including warrants to purchase 62,620 shares of common stock exercised through cashless exercise provisions resulting in the issuance of 27,610 shares of common stock and warrants to purchase 12,290 shares of common stock exercised for cash, providing net cash proceeds of approximately $12,000.
	During the nine months ended September 30, 2014, the Company issued an aggregate of 124,624 shares of common stock with a fair value of approximately $118,000 to the Company’s 401(k) plan as matching contributions.
	During the nine months ended September 30, 2014, the Company issued 108,848 and 22,374 shares of common stock to Michael J. Astrue, Interim Chief Executive Officer, and Gregory D. Perry, Interim Chief Financial Officer, respectively, in lieu of executive cash bonuses. Such shares had an aggregate fair value of approximately $282,000.
	On May 9, 2014, the Company closed an underwritten public offering of an aggregate of 14,001,250 shares of common stock and warrants to purchase up to an aggregate of 7,000,625 shares of common stock, at a price to the public of $1.15 per share of common stock and $0.00001 per warrant. The net proceeds to the Company, after deducting underwriting discounts and offering expenses, were approximately $14.6 million. The warrants have a per share exercise price of $1.4375, or 125% of the public offering price of the common stock, are exercisable immediately, and expire on May 9, 2019. The Company intends to use the net proceeds from the offering for general corporate purposes, including for research, development and pre-clinical studies for its product candidates, the completion of its Scaffold pilot study, and for working capital.

STOCK_OPTIONS

STOCK OPTIONS	9 Months Ended
	Sep. 30, 2014
STOCK OPTIONS	'
STOCK OPTIONS	'
	10.STOCK OPTIONS
	In 2007, the Company adopted the 2007 Employee, Director and Consultant Stock Plan (the “2007 Plan”). Pursuant to the 2007 Plan, the Company’s Board of Directors (or committees and/or executive officers delegated by the Board of Directors) may grant incentive and nonqualified stock options to the Company’s employees, officers, directors, consultants and advisors. As of September 30, 2014, there were options to purchase an aggregate of 1,799,030 shares of common stock outstanding under the 2007 Plan and no shares available for future grants under the 2007 Plan.
	On October 26, 2010, the Company’s Board of Directors adopted and the Company’s shareholders subsequently approved the 2010 Equity Incentive Plan (as subsequently amended, the “2010 Plan”). The 2010 Plan provides for grants of incentive stock options to employees and nonqualified stock options and restricted common stock to employees, consultants and non-employee directors of the Company. As of September 30, 2014, the number of shares authorized for issuance under the 2010 Plan was 11,000,000 shares. As of September 30, 2014, there were options to purchase an aggregate of 7,102,625 shares of common stock outstanding under the 2010 Plan and 3,585,261 shares available for future grants under the 2010 Plan. Options issued under the 2007 Plan and the 2010 Plan are exercisable for up to 10 years from the date of issuance.
	Share-based compensation
	For stock options issued and outstanding for the nine months ended September 30, 2014 and 2013, the Company recorded non-cash, stock-based compensation expense of approximately $2,278,000 and $2,201,000, respectively, net of forfeitures. For stock options issued and outstanding for the three months ended September 30, 2014 and 2013, the Company recorded non-cash, stock-based compensation expense of $682,000 and $574,000, respectively, net of forfeitures.
	The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table. The Company uses historical data, as well as subsequent events occurring prior to the issuance of the financial statements, to estimate option exercises and employee terminations within the valuation model. The expected term of options granted under the 2007 and 2010 Plans, all of which qualify as “plain vanilla,” is based on the average of the contractual term (10 years) and the vesting period (generally, 48 months). For non-employee options, the expected term is the contractual term. The risk-free rate is based on the yield of a U.S. Treasury security with a term consistent with the option. The assumptions used principally in determining the fair value of options granted were as follows:
		September 30,
		2014
	Risk-free interest rate	1.90	%
	Expected dividend yield	0.00	%
	Expected term (in years)	6.08
	Expected volatility	120.65	%
	A summary of option activity as of September 30, 2014 and changes for the period then ended are presented below:
	Options	Shares		Weighted		Weighted	Aggregate
				Average		Average	Intrinsic Value
				Exercise		Remaining
				Price		Contractual
						Term in
						Years
	Outstanding at December 31, 2013	8,055,522		$	1.55
	Granted	2,975,000		$	2.16
	Forfeited	(1,652,537	)	$	1.87
	Exercised	(476,330	)	$	0.34
	Outstanding at September 30, 2014	8,901,655		$	1.76	7.38	$	728,905
	Vested at September 30, 2014	3,720,301		$	1.21	5.07	$	728,905
	The weighted average grant-date fair value of options granted during the nine months ended September 30, 2014 was $1.91 per share. The total fair value of options that vested for the nine months ended September 30, 2014 was $2,062,804. As of September 30, 2014, there was $6,459,750 of total unrecognized compensation expense related to non-vested share-based option compensation arrangements. The unrecognized compensation expense is estimated to be recognized over a period of 2.86 years at September 30, 2014.

WARRANTS

WARRANTS	9 Months Ended
	Sep. 30, 2014
WARRANTS	'
WARRANTS	'
	11.WARRANTS
	The following table presents information about warrants to purchase common stock issued and outstanding at September 30, 2014:
	Year Issued	Classification	Number of	Exercise Price		Date of
			Warrants			Expiration
	2010	Equity	1,494,603	$	1.40	10/26/2017 — 12/3/2017
	2010	Equity	1,318,268	$	1.00	9/26/2015 — 12/3/2015
	2011	Equity	16,071	$	1.40	6/17/18
	2011	Equity	343,137	$	3.06	12/21/16
	2012	Equity	36,145	$	1.66	10/5/19
	2014	Liability	7,000,625	$	1.44	5/9/19
	Total		10,208,849
	Weighted average exercise price			$	1.43
	Weighted average life in years					4.06

DERIVATIVE_INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2014
DERIVATIVE INSTRUMENTS	'
DERIVATIVE INSTRUMENTS	'
	12.DERIVATIVE INSTRUMENTS
	The warrants issued in connection with the Company’s May 2014 public offering (see Note 9) have anti-dilution protection provisions that allow for the reduction in the exercise price of the warrants if the Company subsequently issues equity securities, including common stock or any security convertible or exchangeable for shares of common stock, for no consideration or for consideration less than the exercise price of the warrants. Accordingly, through September 2014, these warrants were accounted for as derivative liabilities. The Company used the Black-Scholes option pricing model and assumptions that consider, among other factors, the fair value of the underlying stock, risk-free interest rate, volatility, expected life and dividend rates in estimating fair value for the warrants considered to be derivative instruments. Changes in fair value of the derivative financial instruments are recognized in the Company’s consolidated statement of operations as a derivative gain or loss. The warrant derivative gains (losses) are non-cash income (expenses); and for the nine months ended September 30, 2014 and 2013, a gain (loss) of $4,132,000 and $(18,871,000), respectively, were included in other income (expense) in the Company’s consolidated statement of operations.
		September 30,
		2014
	Risk-free interest rate	1.63	%
	Expected dividend yield	0.00	%
	Expected term (in years)	4.61
	Expected volatility	117.75	%
	The primary underlying risk exposure pertaining to the warrants is the change in fair value of the underlying Common Stock for each reporting period.
	Changes in the derivative warrant liability for the nine months ended September 30 are as follows (in thousands
		Nine Months Ended September 30,
		2014			2013
	Balance at December 31,	$	—		$	14,585
	Fair value of warrants issued	6,848			—
	Reduction in derivative liability due to exercise and modification of warrants	—			(33,456		)
	Increase (decrease) in the fair value of warrants	(4,132		)	18,871
	Balance at September 30,	$	2,716		$	—

CASH_AND_CASH_EQUIVALENTS_Tabl

CASH AND CASH EQUIVALENTS (Tables)	9 Months Ended
	Sep. 30, 2014
CASH AND CASH EQUIVALENTS	'
Schedule of cash and cash equivalents	'
	The Company’s cash equivalents are held in money market funds. Cash and cash equivalents consisted of the following (in thousands):
		September 30,		December 31,
		2014		2013
	Cash	$	336	$	219
	Money market fund	17,298		13,761
	Total cash and cash equivalents	$	17,634	$	13,980

FAIR_VALUE_OF_ASSETS_AND_LIABI1

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2014
FAIR VALUE OF ASSETS AND LIABILITIES	'
Summary of assets and liabilities measured at fair value on a recurring basis	'
	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
		At September 30, 2014
		Level 1		Level 2		Level 3		Fair Value
	Liabilities:
	Derivative warrant liability	$	—	$	2,716	$	—	$	2,716
		At December 31, 2013
		Level 1		Level 2		Level 3		Fair Value
	Liabilities:
	Derivative warrant liability	$	—	$	—	$	—	$	—

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES	'
Future minimum rent commitments	'
	Pursuant to the terms of the Company’s non-cancelable lease agreements in effect at September 30, 2014, the future minimum rent commitments are as follows (in thousands):
	Year Ended December 31,
	2014	306
	2015	1,243
	2016	1,269
	2017	1,295
	2018	1,049
	Total	$	5,162

ACCRUED_EXPENSES_Tables

ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2014
ACCRUED EXPENSES	'
Summary of accrued expenses	'
	Accrued expenses consisted of the following (in thousands):
		September 30,		December 31,
		2014		2013
	Accrued bonus	$	484	$	566
	Accrued payroll	110		101
	Deferred rent payable	522		553
	Accrued severance	7		—
	Accrued vacation	116		23
	Other accrued expenses	112		49
	Total accrued expenses	$	1,351	$	1,292

NOTE_PAYABLE_Tables

NOTE PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2014
NOTE PAYABLE	'
Schedule of future minimum principal payments	'
	Pursuant to the terms of the non-cancelable purchase agreement in effect at September 30, 2014, the future minimum principal payments are as follows (in thousands):
	Year Ended December 31,
	2014	18
	2015	19
	Total	$	37

STOCK_OPTIONS_Tables

STOCK OPTIONS (Tables)	9 Months Ended
	Sep. 30, 2014
STOCK OPTIONS	'
Schedule of assumptions used principally in determining the fair value of options granted	'
		September 30,
		2014
	Risk-free interest rate	1.90	%
	Expected dividend yield	0.00	%
	Expected term (in years)	6.08
	Expected volatility	120.65	%
Summary of option activity	'
	Options	Shares		Weighted		Weighted	Aggregate
				Average		Average	Intrinsic Value
				Exercise		Remaining
				Price		Contractual
						Term in
						Years
	Outstanding at December 31, 2013	8,055,522		$	1.55
	Granted	2,975,000		$	2.16
	Forfeited	(1,652,537	)	$	1.87
	Exercised	(476,330	)	$	0.34
	Outstanding at September 30, 2014	8,901,655		$	1.76	7.38	$	728,905
	Vested at September 30, 2014	3,720,301		$	1.21	5.07	$	728,905

WARRANTS_Tables

WARRANTS (Tables)	9 Months Ended
	Sep. 30, 2014
WARRANTS	'
Schedule of information about warrants to purchase common stock issued and outstanding	'
	Year Issued	Classification	Number of	Exercise Price		Date of
			Warrants			Expiration
	2010	Equity	1,494,603	$	1.40	10/26/2017 — 12/3/2017
	2010	Equity	1,318,268	$	1.00	9/26/2015 — 12/3/2015
	2011	Equity	16,071	$	1.40	6/17/18
	2011	Equity	343,137	$	3.06	12/21/16
	2012	Equity	36,145	$	1.66	10/5/19
	2014	Liability	7,000,625	$	1.44	5/9/19
	Total		10,208,849
	Weighted average exercise price			$	1.43
	Weighted average life in years					4.06

DERIVATIVE_INSTRUMENTS_Tables

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2014
DERIVATIVE INSTRUMENTS	'
Assumptions used in determining fair value of warrants	'
		September 30,
		2014
	Risk-free interest rate	1.63	%
	Expected dividend yield	0.00	%
	Expected term (in years)	4.61
	Expected volatility	117.75	%
Changes in derivative warrant liability	'
	Changes in the derivative warrant liability for the nine months ended September 30 are as follows (in thousands):
		Nine Months Ended September 30,
		2014			2013
	Balance at December 31,	$	—		$	14,585
	Fair value of warrants issued	6,848			—
	Reduction in derivative liability due to exercise and modification of warrants	—			(33,456		)
	Increase (decrease) in the fair value of warrants	(4,132		)	18,871
	Balance at September 30,	$	2,716		$	—

CASH_AND_CASH_EQUIVALENTS_Deta

CASH AND CASH EQUIVALENTS (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Cash and cash equivalents	'	'	'	'
Total cash and cash equivalents	$17,634	$13,980	$18,333	$12,825
Cash	'	'	'	'
Cash and cash equivalents	'	'	'	'
Total cash and cash equivalents	336	219	'	'
Money market fund	'	'	'	'
Cash and cash equivalents	'	'	'	'
Total cash and cash equivalents	$17,298	$13,761	'	'

RESTRICTED_CASH_Details

RESTRICTED CASH (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Restricted cash	'	'
Restricted cash	$371,000	$602,000
Security deposit related to credit card account	'	'
Restricted cash	'	'
Restricted cash	60,000	'
Standby letter of credit in favor of a landlord	'	'
Restricted cash	'	'
Restricted cash	$311,000	'

FAIR_VALUES_OF_ASSETS_AND_LIAB

FAIR VALUES OF ASSETS AND LIABILITIES (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets and liabilities measured at fair value on a recurring basis	'	'
Derivative warrant liability	$2,716	$14,585
Recurring basis	'	'
Assets and liabilities measured at fair value on a recurring basis	'	'
Derivative warrant liability	2,716	'
Recurring basis | Level 2	'	'
Assets and liabilities measured at fair value on a recurring basis	'	'
Derivative warrant liability	$2,716	'

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	0 Months Ended
	Nov. 29, 2011	Sep. 30, 2014	Nov. 29, 2011
	item		sqft
	sqft
Commitments	'	'	'
Leasehold improvements	'	$390,000	'
Cambridge Lease	'	'	'
Commitments	'	'	'
Lease Space for Laboratory and office space (in square feet)	'	'	26,150
Term of commercial lease	'6 years 3 months	'	'
Number of lease extension options	1	'	'
Term of lease extension option	'5 years	'	'
Standby letter of credit	'	'	311,000
Deferred rent liability	'	$522,000	'

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 04, 2013
Future minimum rent commitments	'	'	'	'	'
2014	$306,000	'	$306,000	'	'
2015	1,243,000	'	1,243,000	'	'
2016	1,269,000	'	1,269,000	'	'
2017	1,295,000	'	1,295,000	'	'
2018	1,049,000	'	1,049,000	'	'
Total	5,162,000	'	5,162,000	'	'
Commitments	'	'	'	'	'
Total rent expense	287,000	241,000	861,000	838,000	'
Amount of settlement agreement	'	'	'	'	$286,000

ACCRUED_EXPENSES_Details

ACCRUED EXPENSES (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
ACCRUED EXPENSES	'	'
Accrued bonus	$484	$566
Accrued payroll	110	101
Deferred rent payable	522	553
Accrued severance	7	'
Accrued vacation	116	23
Other accrued expenses	112	49
Total accrued expenses	$1,351	$1,292

NOTE_PAYABLE_Details

NOTE PAYABLE (Details) (USD $)	9 Months Ended			1 Months Ended
	Sep. 30, 2013	Sep. 30, 2014	Dec. 31, 2013	31-May-13	Sep. 30, 2014
				Note Payable	Note Payable
Note payable	'	'	'	'	'
Contract price for the purchase of ERP system	'	'	'	$150,000	'
Total cost for ERP system including interest	'	'	'	159,000	'
Implicit interest rate	'	'	'	6.00%	'
Future minimum principal payments	'	'	'	'	'
2014	'	37,000	74,000	'	18,000
2015	'	'	'	'	19,000
Total	'	'	'	'	37,000
Note payable disclosures	'	'	'	'	'
ERP system fully expensed due to abandonment of implementation	$150,000	'	'	'	'

LOAN_PAYABLE_Details

LOAN PAYABLE (Details) (MassDev, USD $)	1 Months Ended	3 Months Ended		9 Months Ended			0 Months Ended
	Sep. 30, 2012	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Oct. 31, 2012	Oct. 31, 2012
							Warrants
Loans Payable	'	'	'	'	'	'	'
Line of credit for the purchase of capital equipment	'	'	'	'	'	$2,000,000	'
Line of credit facility commitment fees	15,000	'	'	'	'	'	'
Number of shares into which a warrant may be converted	'	'	'	'	'	'	36,145
Warrant period	'	'	'	'	'	'	'7 years
Exercise price of warrant (in dollars per share)	'	'	'	'	'	'	1.66
Amortization of the deferred financing costs	'	3,000	'	3,000	'	'	'
Interest expense	'	32,000	32,000	95,000	90,000	'	'
Additional disclosure	'	'	'	'	'	'	'
Line of credit for working capital purpose	'	'	'	'	'	200,000	'
Fixed interest rate (as a percent)	'	6.50%	'	6.50%	'	'	'
Period for charging equal interest and principal payments	'	'	'	'54 months	'	'	'
Maturity date	'	'	'	5-Oct-19	'	'	'
Principal amount outstanding	'	1,920,000	'	1,920,000	'	'	'
Amount of monthly principal payment	'	'	'	36,000	'	'	'
Commencement date of monthly installments	'	'	'	1-May-15	'	'	'
Future Principal payment due : 2015	'	284,000	'	284,000	'	'	'
Future Principal payment due : 2016	'	427,000	'	427,000	'	'	'
Future Principal payment due : 2017	'	427,000	'	427,000	'	'	'
Future Principal payment due : 2018	'	427,000	'	427,000	'	'	'
Future Principal payment due : 2019	'	355,000	'	355,000	'	'	'
Approximate fair value of warrant	'	'	'	'	'	'	$32,000
Amortization period of deferred financing cost	'	'	'	'	'	'	'7 years

COMMON_STOCK_Details

COMMON STOCK (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Common stock, number of shares, par value and other disclosures	'	'
Common stock, authorized	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, issued	93,547,062	78,773,736
Common stock, outstanding	93,547,062	78,773,736
Common stock disclosures	'	'
Proceeds from exercise of stock options (in dollars)	$162,000	'
Proceeds from warrant exercises	12,000	'
Issuance of common stock to 401(k) plan (in dollars)	118,000	'
Common Stock	'	'
Common stock disclosures	'	'
Issuance of common stock upon exercise of stock options (in shares)	476,330	'
Issuance of common stock upon exercise of warrants (in shares)	39,900	'
Warrants to purchase through cashless exercise provisions (in shares)	62,620	'
Shares issued through cashless exercise provisions	27,610	'
Warrants to purchase exercise through cash (in shares)	12,290	'
Issuance of common stock to 401(k) plan (in shares)	124,624	'
Issuance of stock for services (in dollars)	$282,000	'
Common Stock | Michael J. Astrue, Interim Chief Executive Officer	'	'
Common stock disclosures	'	'
Issuance of stock for services (in shares)	108,848	'
Common Stock | Gregory D. Perry, Interim Chief Financial Officer	'	'
Common stock disclosures	'	'
Issuance of stock for services (in shares)	22,374	'

COMMON_STOCK_Details_2

COMMON STOCK (Details 2) (Public Offering - Underwritten, USD $)	0 Months Ended
In Millions, except Share data, unless otherwise specified	9-May-14
Common Stock And Warrants	'
Common stock disclosures	'
Issuance of equity (in units)	14,001,250
Net proceeds from issuance of equity (in dollars)	$14.60
Common Stock	'
Common stock disclosures	'
Issuance of stock (in shares)	7,000,625
Equity issuance (in price per unit)	$1.15
Warrants	'
Common stock disclosures	'
Equity issuance (in price per unit)	$0.00
Exercise price of warrants as percentage of offering price of common stock	125.00%

STOCK_OPTIONS_Details

STOCK OPTIONS (Details) (USD $)	9 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2014
			Stock Options and Restricted Stock	Stock Options and Restricted Stock	Stock Options and Restricted Stock	Stock Options and Restricted Stock	2007 Plan	2010 Plan
Stock option	'	'	'	'	'	'	'	'
Options available to purchase/Common Stock outstanding	8,901,655	8,055,522	'	'	'	'	1,799,030	7,102,625
Shares available for future grants	'	'	'	'	'	'	0	3,585,261
Shares authorized for issuance	'	'	'	'	'	'	'	11,000,000
Exercisable period	'6 years 29 days	'	'	'	'	'	'10 years	'10 years
Stock-based compensation expense, net of forfeitures	'	'	$682,000	$574,000	$2,278,000	$2,201,000	'	'
Expected term of options granted	'	'	'	'	'10 years	'	'	'
Vesting period	'5 years 26 days	'	'	'	'48 months	'	'	'

STOCK_OPTIONS_Details_2

STOCK OPTIONS (Details 2)	9 Months Ended
	Sep. 30, 2014
Assumptions used principally in determining the fair value of options granted	'
Risk-free interest rate (as a percent)	1.90%
Expected dividend yield (as a percent)	0.00%
Expected term	'6 years 29 days
Expected volatility (as a percent)	120.65%

STOCK_OPTIONS_Details_3

STOCK OPTIONS (Details 3) (USD $)	9 Months Ended
	Sep. 30, 2014
Summary of option activity - Shares	'
Outstanding at the beginning of year (in shares)	8,055,522
Granted (in shares)	2,975,000
Forfeited (in shares)	-1,652,537
Exercised (in shares)	-476,330
Outstanding at the end of period (in shares)	8,901,655
Vested at the end of period (in shares)	3,720,301
Summary of option activity - Weighted Average Exercise Price	'
Outstanding at the beginning of year (in dollars per shares)	$1.55
Granted (in dollars per shares)	$2.16
Forfeited (in dollars per shares)	$1.87
Exercised (in dollars per shares)	$0.34
Outstanding at the end of period (in dollars per shares)	$1.76
Vested at the end of period (in dollars per share)	$1.21
Option activity disclosures	'
Weighted Average Remaining Contractual Term - Outstanding	'7 years 4 months 17 days
Weighted Average Remaining Contractual Term - Vested	'5 years 26 days
Aggregate Intrinsic Value - Outstanding (in dollars)	$728,905
Aggregate Intrinsic Value - Vested (in dollars)	728,905
Stock Option	'
Weighted average grant-date fair value of options granted	$1.91
Total fair value of options vested	2,062,804
Total unrecognized compensation expense, related to non-vested share-based compensation arrangements	$6,459,750
Period for unrecognized compensation expense is estimated to be recognized	'2 years 10 months 10 days

WARRANTS_Details

WARRANTS (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Warrants to purchase common stock issued and outstanding	'
Number of Warrants	10,208,849
Weighted average exercise price	$1.43
Weighted average life in years	'4 years 22 days
Equity | Derivative with Exercise Price One	'
Warrants to purchase common stock issued and outstanding	'
Warrants Issued Year	'2010
Number of Warrants	1,494,603
Warrant Exercise Price	1.4
Equity | Derivative with Exercise Price One | Minimum	'
Warrants to purchase common stock issued and outstanding	'
Expiration date	26-Oct-17
Equity | Derivative with Exercise Price One | Maximum	'
Warrants to purchase common stock issued and outstanding	'
Expiration date	3-Dec-17
Equity | Derivative with Exercise Price Two	'
Warrants to purchase common stock issued and outstanding	'
Warrants Issued Year	'2010
Number of Warrants	1,318,268
Warrant Exercise Price	1
Equity | Derivative with Exercise Price Two | Minimum	'
Warrants to purchase common stock issued and outstanding	'
Expiration date	26-Sep-15
Equity | Derivative with Exercise Price Two | Maximum	'
Warrants to purchase common stock issued and outstanding	'
Expiration date	3-Dec-15
Equity | Derivative with Exercise Price Three	'
Warrants to purchase common stock issued and outstanding	'
Warrants Issued Year	'2011
Number of Warrants	16,071
Warrant Exercise Price	1.4
Expiration date	17-Jun-18
Equity | Derivative with Exercise Price Four	'
Warrants to purchase common stock issued and outstanding	'
Warrants Issued Year	'2011
Number of Warrants	343,137
Warrant Exercise Price	3.06
Expiration date	21-Dec-16
Equity | Derivative with Exercise Price Five	'
Warrants to purchase common stock issued and outstanding	'
Warrants Issued Year	'2012
Number of Warrants	36,145
Warrant Exercise Price	1.66
Expiration date	5-Oct-19
Liability | Derivative with Exercise Price Six	'
Warrants to purchase common stock issued and outstanding	'
Warrants Issued Year	'2014
Number of Warrants	7,000,625
Warrant Exercise Price	1.44
Expiration date	9-May-19

DERIVATIVE_INSTRUMENTS_Details

DERIVATIVE INSTRUMENTS (Details) (USD $)	3 Months Ended	9 Months Ended		106 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
DERIVATIVE INSTRUMENTS	'	'	'	'
Derivatives gain (loss)	$3,005	$4,132	($18,871)	($27,278)

DERIVATIVE_INSTRUMENTS_Details1

DERIVATIVE INSTRUMENTS (Details 2)	9 Months Ended
	Sep. 30, 2014
Fair value of warrants	'
Risk-free interest rate (as a percent)	1.63%
Expected dividend yield (as a percent)	0.00%
Expected term (in years)	'4 years 7 months 10 days
Expected volatility (as a percent)	117.75%

DERIVATIVE_INSTRUMENTS_Details2

DERIVATIVE INSTRUMENTS (Details 3) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Changes in derivative warrant liability	'	'
Balance at beginning of year	'	$14,585
Fair value of warrants issued	6,848	'
Reduction in derivative liability due to exercise and modification of warrants	'	-33,456
Increase (decrease) in fair value of warrants	-4,132	18,871
Balance at end of period	$2,716	'