Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 06, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'PLC SYSTEMS INC | ' |
Entity Central Index Key | '0000879682 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 161,414,862 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,404 | $258 |
Restricted cash | 250 | ' |
Accounts receivable, net of allowance of $2 at September 30, 2013 and December 31, 2012, respectively | 488 | 402 |
Inventories | 145 | 182 |
Prepaid expenses and other current assets | 144 | 178 |
Total current assets | 2,431 | 1,020 |
Equipment, furniture and leasehold improvements, net | 50 | 67 |
Other assets | 4 | 4 |
Total assets | 2,485 | 1,091 |
Current liabilities: | ' | ' |
Accounts payable | 443 | 377 |
Accrued compensation | 41 | 78 |
Accrued other | 331 | 368 |
Deferred revenue | 13 | 317 |
Total current liabilities | 828 | 1,140 |
Convertible notes | 5,793 | 8,098 |
Warrant and option liabilities | 6,452 | 3,800 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders' deficit: | ' | ' |
Common stock, no par value, unlimited shares authorized, 125,000 shares issued and outstanding; 37,538 unissued and reserved at September 30, 2013; and 32,434 shares issued and outstanding at December 31, 2012 | 97,263 | 93,893 |
Additional paid in capital | ' | 1,540 |
Accumulated deficit | -107,586 | -107,114 |
Accumulated other comprehensive loss | -265 | -266 |
Total stockholders' deficit | -10,588 | -11,947 |
Total liabilities and stockholders' deficit | $2,485 | $1,091 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowance (in dollars) | $2 | $2 |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, shares issued | 125,000 | 32,434 |
Common stock, shares outstanding | 125,000 | 32,434 |
Common stock, shares unissued | 37,538 | ' |
Common stock, shares reserved | 37,538 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
Revenues | $348 | $212 | $1,069 | $595 |
Cost of revenues | 124 | 84 | 438 | 308 |
Gross profit | 224 | 128 | 631 | 287 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 945 | 674 | 2,595 | 1,899 |
Research and development | 549 | 549 | 1,661 | 1,618 |
Total operating expenses | 1,494 | 1,223 | 4,256 | 3,517 |
Loss from operations | -1,270 | -1,095 | -3,625 | -3,230 |
Other income (expense): | ' | ' | ' | ' |
Interest expense | -63 | -137 | -264 | -369 |
Foreign currency transaction gains (losses) | 16 | 17 | 9 | 2 |
Financing costs associated with convertible notes | ' | -80 | ' | -80 |
Change in fair value of warrant and option liabilities | 1,078 | -1,117 | 3,192 | -3,517 |
Change in fair value of convertible notes | 1,620 | -757 | 3,485 | -4,218 |
Loss on extinguishment of convertible notes | -1,991 | ' | -3,274 | ' |
Other income | 1 | 4 | 4 | 24 |
Total other income (expense) | 661 | -2,070 | 3,152 | -8,158 |
Net loss | ($609) | ($3,165) | ($473) | ($11,388) |
Net loss per weighted average share, basic | ($0.01) | ($0.10) | ($0.01) | ($0.37) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 76,902 | 30,397 | 60,923 | 30,912 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ' | ' | ' | ' |
Net loss | ($609) | ($3,165) | ($473) | ($11,388) |
Other comprehensive income (loss) | ' | ' | ' | ' |
Foreign currency translation adjustments | -9 | 2 | 1 | -17 |
Other comprehensive income (loss) | -9 | 2 | 1 | -17 |
Comprehensive loss | ($618) | ($3,163) | ($472) | ($11,405) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($473,000) | ($11,388,000) |
Depreciation and amortization | 39,000 | 31,000 |
Stock-based compensation expense | 158,000 | 433,000 |
Change in fair value of warrant and liabilities | -3,192,000 | 3,517,000 |
Change in fair value of convertible notes | -3,485,000 | 4,218,000 |
Financing costs associated with convertible notes | ' | 80,000 |
Loss on extinguishment of convertible notes | 3,274,000 | ' |
Non-cash interest expense | 158,000 | 215,000 |
Change in assets and liabilities: | ' | ' |
Restricted cash | -250,000 | ' |
Accounts receivable | -87,000 | 59,000 |
Inventories | 15,000 | 3,000 |
Prepaid expenses and other current assets | 36,000 | 12,000 |
Accounts payable | 66,000 | 82,000 |
Deferred revenue | -312,000 | 109,000 |
Accrued liabilities | -137,000 | 65,000 |
Net cash flows used in operating activities | -4,190,000 | -2,564,000 |
Cash flows used for investing activities: | ' | ' |
Purchase of equipment, furniture, and leasehold improvements | ' | -74,000 |
Net cash flow used for investing activities | ' | -74,000 |
Cash flows from financing activities: | ' | ' |
Net proceeds from sale of common stock and warrants | 5,079,000 | ' |
Net proceeds from issuance of convertible notes and warrants | 250,000 | 920,000 |
Net cash provided by financing activities | 5,329,000 | 920,000 |
Effect of exchange rate changes on cash and cash equivalents | 7,000 | -144,000 |
Net (decrease) increase in cash and cash equivalents | 1,146,000 | -1,862,000 |
Cash and cash equivalents at beginning of period | 258,000 | 2,585,000 |
Cash and cash equivalents at end of period | 1,404,000 | 723,000 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 112,000 | 154,000 |
Supplemental disclosure of non-cash financing activities: | ' | ' |
Cashless exercise of warrants | 2,655,000 | ' |
Cashless conversion of convertible notes | $883,000 | ' |
Business_and_Liquidity
Business and Liquidity | 9 Months Ended |
Sep. 30, 2013 | |
Business and Liquidity | ' |
Business and Liquidity | ' |
1. Business and Liquidity | |
PLC Systems Inc. (“PLC” or the “Company”) is a medical device company specializing in innovative technologies for the cardiac and vascular markets. Over the past five years, the Company has begun initial commercialization outside the United States of its product, RenalGuard®, which currently represents the Company’s key strategic growth initiative and primary business focus. The RenalGuard System consists of a proprietary console and accompanying single-use sets and is designed to reduce the potentially toxic effects that contrast media can have on the kidneys when it is administered to patients during certain medical imaging procedures. The Company conducts business operations as one operating segment. | |
For the nine months ended September 30, 2013, the Company incurred a loss from operations of approximately $3,625,000 and used cash in operations of approximately $4,190,000. As of September 30, 2013, cash and cash equivalents were $1,404,000. Management expects that quarterly losses from operations and negative cash flows will continue during 2013. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. | |
Based upon the current financial condition of the Company and the expectation of continued quarterly losses from operations during 2013, management is currently investigating ways to raise additional capital that can be completed in the next several months. The Company believes that its existing resources, based on its currently projected financial results, are sufficient to fund operations through the first quarter of 2014. Based upon current and anticipated revenue projections from foreign sales of our RenalGuard product, and the anticipated costs of its U.S. clinical trial, we expect that we will need to raise additional capital during the first quarter of 2014. The Company was able to raise an additional $1,750,000 of capital in September 2013, and $4,040,000 in capital in February 2013, through the completion of equity financings. (see Note 9 — Sale of Common Stock). Where possible, the Company has taken certain reductions in its discretionary spending. The Company will continue to review its other expense areas to determine whether additional reductions in discretionary spending can be achieved. | |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
2. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The preparation of financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
3. Inventories | ||||||||
Inventories are stated at the lower of cost (computed on a first-in, first-out method) or market value and include allocations of labor and overhead. As of September 30, 2013 and December 31, 2012, inventories consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 145 | $ | 143 | ||||
Finished goods | — | 39 | ||||||
$ | 145 | $ | 182 | |||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stock-Based Compensation | ' | |||||||||||
Stock-Based Compensation | ' | |||||||||||
4. Stock-Based Compensation | ||||||||||||
Stock Option Plans | ||||||||||||
In May 2005, the Company’s shareholders approved the 2005 Stock Incentive Plan (the “2005 Plan”). Incentive stock options are issuable only to employees of the Company, while non-qualified stock options may be issued to non-employee directors, consultants and others, as well as to employees. Under the 2005 Plan, the per share exercise price of incentive stock options may not be less than the fair market value of the common stock on the date the option is granted. The 2005 Plan provides that the Company may not grant non-qualified stock options at an exercise price less than 85% of the fair market value of the Company’s common stock. | ||||||||||||
In June 2013, the Company’s shareholders approved the 2013 Stock Incentive Plan (the “2013 Plan”). The 2013 Plan allows for an additional 11,382,600 incentive stock options which may be issued to non-employee directors, consultants and others, as well as to employees. Under the 2013 Plan, the per share exercise price of incentive stock options may not be less than the fair market value of the common stock on the date the option is granted. The 2013 Plan provides that the Company may not grant non-qualified stock options at an exercise price less than 85% of the fair market value of the Company’s common stock. | ||||||||||||
The Company grants stock options to its non-employee directors. New non-employee directors receive an initial grant of an option to purchase shares of the Company’s common stock that generally vest in quarterly installments over three years. Once the initial grant has fully vested, non-employee directors (other than the Chairman of the Board) receive an annual grant of an option to purchase additional shares of the Company’s common stock that generally will vest in four equal quarterly installments. The Chairman of the Board receives an annual grant of an option to purchase 45,000 shares of the Company’s common stock that generally vests in four equal quarterly installments. All such options have an exercise price equal to the fair market value of the Company’s common stock on the date of grant. | ||||||||||||
During the three months ended September 30, 2013, the Company granted options to employees to purchase 5,050,000 shares of the Company’s common stock, which vest ratably over a three year period. Certain of these grants were issued to former employees to replace 502,000 options that were cancelled during the three months ended September 30, 2013. These grants were accounted for as modifications of previously issued stock options during the quarter. Additionally, the Company granted 589,000 options to non-employee directors that vest quarterly over a one year period. | ||||||||||||
During the year ended December 31, 2012, the Company granted options to employees to purchase 355,000 shares of the Company’s common stock, which vest ratably over a three year period and granted options to purchase 112,500 shares of the Company’s common stock to non-employee directors that vest quarterly over one year. | ||||||||||||
During the year ended December 31, 2011, the Company granted options to purchase 565,000 shares of the Company’s common stock to employees with performance-based vesting. Management determined that as of June 30, 2012, it was probable that the performance conditions associated with the performance-based vesting were to be met in July 2012 with the closing of the second tranche convertible notes. Therefore, the related expense was recorded in the nine months ending | ||||||||||||
September 30, 2012. | ||||||||||||
During the year ended December 31, 2012, the Company issued an aggregate of 2,083,338 shares of restricted common stock to Garden State Securities, Inc. and JFS Investments, Inc. in exchange for certain investor relations and related consulting services provided to the Company. During the nine months ended September 30, 2013, the Company issued an aggregate of 416,668 shares of common stock resulting in $56,250 of compensation expense. These shares vested immediately but are restricted from being sold for a period of six months from the date of issuance. The contract with Garden State Securities, Inc. and JFS Investments, Inc. terminated in February 2013. No further stock issuances will occur under this agreement. | ||||||||||||
As of September 30, 2013, there were 1,819,000 shares of common stock available to be granted under the 2005 Plan, and 5,743,000 shares of common stock available to be granted under the 2013 Plan. | ||||||||||||
The following is a summary of option activity under all plans (in thousands, except per option data): | ||||||||||||
Number | Weighted | Average | Aggregate | |||||||||
of Options | Average | Remaining | Intrinsic | |||||||||
Exercise | Contractual | Value | ||||||||||
Price | Life (Years) | |||||||||||
Outstanding, December 31, 2012 | 5,592 | $ | 0.21 | 3.2 | $ | 6,500 | ||||||
Granted | 5,639 | 0.09 | ||||||||||
Exercised | — | — | ||||||||||
Cancelled | (502 | ) | 0.16 | |||||||||
Forfeited | (643 | ) | 0.1 | |||||||||
Expired | — | — | ||||||||||
Outstanding, September 30, 2013 | 10,086 | 0.15 | 6.1 | $ | 0 | |||||||
Exercisable, September 30, 2013 | 5,528 | 0.2 | 2.4 | $ | 0 | |||||||
Stock-Based Compensation Expense | ||||||||||||
The Company recorded compensation expense related to stock options of $76,000 and $102,000 in the three and nine months ended September 30, 2013, respectively, as compared to $12,000 and $65,000 in the three and nine months ended September 30, 2012, respectively. The Company also recorded compensation expense of $0 and $56,000 related to the issuance of restricted common shares during the three and nine months ended September 30, 2013, respectively, as compared to $123,000 and $368,000 in the three and nine months ended September 30, 2012, respectively. As of September 30, 2013, the Company had $401,000 of total unrecognized compensation cost related to its unvested options, which is expected to be recognized over a weighted average period of 1.93 years. | ||||||||||||
The weighted average fair value of options issued, as estimated using the Black-Scholes model, was $0.08 and $0.16 during the nine months ended September 30, 2013 and 2012, respectively. The assumptions used were as follows: | ||||||||||||
Grants Issued in: | ||||||||||||
2013 | 2012 | |||||||||||
Expected life (years) | 3.00-6.00 | 5.00-6.00 | ||||||||||
Risk free rate | 0.73-1.67% | 0.19-0.69% | ||||||||||
Volatility | 195.75-217.52% | 204.1-216.2% | ||||||||||
Expected dividend yield | None | None | ||||||||||
Value of options granted | $0.07-0.09 | $0.12-0.17 | ||||||||||
Stock Purchase Plan | ||||||||||||
The Company has a 2000 Employee Stock Purchase Plan (the “Purchase Plan”) for all eligible employees whereby shares of the Company’s common stock may be purchased at six-month intervals at 95% of the average of the closing bid and ask prices of the Company’s common stock on the last business day of the relevant plan period. Employees may purchase shares having a value not exceeding 10% of their gross compensation during an offering period, subject to certain additional limitations. There was no activity during the three and nine months ended September 30, 2013 or 2012. At September 30, 2013, 294,461 shares were reserved for future issuance under the Purchase Plan. | ||||||||||||
Revenue_Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2013 | |
Revenue Recognition | ' |
Revenue Recognition | ' |
5. Revenue Recognition | |
The Company recognizes revenue when the following basic revenue recognition criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the price to the buyer charged for products delivered or services rendered and collectability of the sales price. The Company assesses credit worthiness of customers based upon prior history with the customer and assessment of financial condition. The Company’s shipping terms are customarily Free On Board (“FOB”) shipping point. The Company records revenue at the time of shipment if all other revenue recognition criteria have been met. As of September 30, 2013, the Company had deferred $13,000 of revenue related to shipments prior to March 31, 2013 to its distributor in Italy, Artech, because not all revenue recognition criteria were met. The Company expects this revenue to be recognized during the fourth quarter of 2013. | |
Loss_per_Share
Loss per Share | 9 Months Ended |
Sep. 30, 2013 | |
Loss per Share | ' |
Loss per Share | ' |
6. Loss per Share | |
In the three and nine months ended September 30, 2012, basic loss per share has been computed using only the weighted average number of common shares outstanding during the period without giving effect to any potential future issuances of common stock related to stock option programs, Rights To Shares Agreement (see Note 9), investor warrants or convertible notes, since their inclusion would be antidilutive. | |
For the three and nine months ended September 30, 2013, 248,336,287 shares attributable to outstanding warrants, convertible notes, the Rights To Shares Agreements and stock options were excluded from the calculation of diluted earnings per share because the effect would have been antidilutive. | |
Total_Comprehensive_Income_Los
Total Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2013 | |
Total Comprehensive Income (Loss) | ' |
Total Comprehensive Income (Loss) | ' |
7. Total Comprehensive Income (Loss) | |
Total comprehensive loss for the three and nine months ended September 30, 2013 was $618,000 and $472,000 as compared to a comprehensive loss of $3,163,000 and $11,405,000 in the three and nine months ended September 30, 2012, respectively. Comprehensive income (loss) is comprised of the net income/loss plus the increase/decrease in currency translation adjustment. | |
Warranty_and_Preventative_Main
Warranty and Preventative Maintenance Costs | 9 Months Ended |
Sep. 30, 2013 | |
Warranty and Preventative Maintenance Costs | ' |
Warranty and Preventative Maintenance Costs | ' |
8. Warranty and Preventative Maintenance Costs | |
The Company warranties its products against manufacturing defects under normal use and service during the warranty period. The Company evaluates the estimated future unrecoverable costs of warranty and preventative maintenance services for its installed base of products on a quarterly basis and adjusts its warranty reserve accordingly. The Company considers all available evidence, including historical experience and information obtained from supplier audits. There was no warranty liability recorded at September 30, 2013 or December 31, 2012. | |
Sale_of_Common_Stock
Sale of Common Stock | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Sale of Common Stock | ' | ||||||
Sale of Common Stock | ' | ||||||
9. Sale of Common Stock | |||||||
September 2013 Financing | |||||||
On September 18, 2013 the Company entered into a Securities Purchase Agreement (the “September SPA”) with a number of accredited investors, whereby the Company sold an aggregate of 29,166,668 shares of common stock at $0.06 per share (the “September Purchase Price”) and issued warrants to purchase an additional 29,166,668 shares of common stock (the “September Investor Warrants”) with gross proceeds to the Company of $1,750,000. After payment of the placement agent fees and other expenses, the Company received net proceeds of approximately $1,575,329. As part of the fee for its placement agent services, the Company also issued Palladium Capital Advisors a warrant to purchase 1,485,333 shares of common stock (together with the September Investor Warrants, the “September 2013 Warrants”) on the same terms and conditions as the investors under the September SPA. The shares of common stock sold in the offering are subject to certain piggyback registration rights as well as certain other protections, including price protection, as discussed below. | |||||||
The September SPA provides that for a period of 24 months after the later of (i) September 18, 2013, or (ii) the public announcement of FDA approval for RenalGuard for sale in the United States, and so long as the investors hold the shares purchased pursuant to the September SPA, if the Company issues or sells any shares of common stock or any common stock equivalent at a price less than the September Purchase Price (a “Share Dilutive Issuance”), the Company shall issue additional shares of common stock so that total amount paid by the investor to acquire the shares, divided by the number of shares held by the investor pursuant to the September SPA, plus the additional shares issued as a result of a Share Dilutive Issuance, equals the price per share paid in the Share Dilutive Issuance. This provision also extends to any common shares that are issued pursuant to an exercise of the September 2013 Warrants. | |||||||
In conjunction with the September 2013 SPA, the Company entered into a Right To Shares Agreement with one of the investors. Pursuant to this agreement, in lieu of issuing 16,666,667 of the common shares purchased by the investor, the Company shall be obligated to issue, and the investor has the right to up to 16,666,667 shares of the Company’s common stock. No additional consideration will be paid upon the issuance of the shares and the subscription amount has been paid in full by the investor and is non-refundable. The Company is obligated to deliver the shares to the investor within 3 days of the investor’s request for the share issuance. If the Company fails to deliver the shares within 3 days of the request, under certain circumstances defined in the Right To Shares Agreement, the Company may be obligated to reimburse the investor in cash for losses that the investor incurs as a result of not having access to the shares (the “Buy-In Shares”). As of September 30, 2013, the Company has reserved, but not issued 16,666,667 shares of common stock pursuant to the Right To Shares Agreement. | |||||||
The September SPA also provides the investors with the option, for a period through June 18, 2014, to purchase on the same terms and with the same rights as the September 2013 SPA up to one-half of the shares of common stock purchased by the purchaser at the initial closing (“September 2013 SPA Option”). The investors would also receive a warrant for every option share exercised with the same terms as the warrants issued in the September SPA. To date, no shares have been purchased under the September 2013 SPA Option. The following is a summary of the September 2013 SPA Option for the: | |||||||
September 2013 SPA Option | Shares | Exercise | |||||
Price | |||||||
Beginning balance at September 18, 2013 | 14,583,334 | $ | 0.06 | ||||
Ending balance at September 30, 2013 | 14,583,334 | $ | 0.06 | ||||
The September 2013 Warrants have a term of five-years and are immediately exercisable for an aggregate 30,625,001 shares of common stock purchased at an exercise price of $0.08 per share. The exercise price of the September 2013 Warrants shall be adjusted in the event of (a) stock splits, stock dividends, combinations, reclassifications, mergers, consolidations, distributions of assets or evidence of indebtedness, sales or transfers of substantially all assets, share exchanges or similar events, and (b) dilutive issuances of (i) common stock or (ii) common stock equivalents at an effective price per share that is lower than the then exercise price. The September 2013 Warrants may be exercised on a cashless basis if at any time there is no effective registration statement within 180 days after the closing date of the private placement covering the resale of the shares of common stock underlying the September 2013 Warrants. The September 2013 Warrants contain limitations on the holder’s ability to exercise the September 2013 Warrants in the event such exercise causes the holder to beneficially own in excess of 4.99% of the Company’s issued and outstanding common stock, subject to a discretionary increase in such limitation by the holder to 9.99% upon 61 days’ notice. To date, none of the September 2013 Warrants have been exercised. The following is a summary of the September 2013 Warrants for the nine months ending September 30, 2013: | |||||||
The September 2013 Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at September 18, 2013 | 30,625,001 | $ | 0.08 | ||||
Add: Adjustments | — | n/a | |||||
Ending balance at September 30, 2013 | 30,625,001 | $ | 0.08 | ||||
In June 2008, the FASB issued ASC 815-40-15 (formerly EITF 07-5, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock), which was effective for the Company in 2009. This issued guidance requires that derivative instruments be evaluated for certain contingencies and anti-dilution provisions that would affect their equity classification as a derivative under ASC 815, Derivatives and Hedging (ASC 815) and requires the instruments to be classified as liabilities and reported at fair value. | |||||||
Upon issuance, the September 2013 Warrants and the September 2013 SPA Option were not considered indexed to the Company’s own stock and therefore are required to be accounted for as freestanding derivative instruments and classified as a liability. A Monte Carlo simulation was used to estimate the fair value of the September 2013 Warrants and September 2013 SPA Option resulting in grant date fair values of $1,807,000 and $1,166,000, respectively (see Note 11 — Fair Value Measurements). As of September 30, 2013, the September 2013 Warrants have been marked to fair value resulting in a derivative liability of $1,574,000. The impact to other income for the change in fair value of the September 2013 Warrants for the three months ended September 30, 2013 was a gain of $233,000. As of September 30, 2013, the September 2013 SPA Options have been marked to fair value resulting in a derivative liability of $875,000. The impact to other income for the change in fair value of the September 2013 SPA Option for the three months ended September 30, 2013 was a gain of $291,000. | |||||||
The Company also assessed the provisions of the Buy-In Share feature of the Rights To Shares Agreement as an embedded derivative pursuant to ASC 815-15, Embedded Derivatives, and has concluded that the feature meets the definition of a derivative and is not clearly and closely related to the Rights To Shares equity host agreement. The Buy-In Shares feature has been bifurcated from the Rights To Shares agreement and accounted for separately. The value of this feature was nominal as of the issuance date and September 30, 2013. | |||||||
Allocation of SPA Proceeds | |||||||
The Company first allocated the proceeds of the September SPA to the fair value of the September 2013 Warrants and September 2013 SPA Option. When the issuance costs were considered, the aggregate fair value of the September 2013 Warrants and September 2013 SPA Option exceeded the net proceeds of the September SPA. The Company first recorded the difference as a reduction of additional paid in capital to the extent available, with the reminder accounted for as a reduction in common stock. | |||||||
February 2013 Financing | |||||||
On February 22, 2013, the Company entered into a Securities Purchase Agreement (the “February SPA”) with a number of accredited investors, whereby the Company sold an aggregate of 26,933,333 shares of common stock at $0.15 per share (the “February Purchase Price”) and issued warrants to purchase an additional 26,933,333 shares of common stock (the “February Investor Warrants”) with gross proceeds to the Company of $4,040,000. After payment of the placement agent fees and other expenses, the Company received net proceeds of approximately $3,504,000. As part of the fee for its placement agent services, the Company also issued Palladium Capital Advisors a warrant to purchase 1,885,333 shares of common stock (together with the Investor Warrant, the “February 2013 Warrants”) on the same terms and conditions as the investors under the February SPA. The shares of common stock sold in the offering are subject to certain piggyback registration rights as well as certain other protections, including price protection, as discussed below. | |||||||
The February SPA provides that for a period of 24 months after the later of (i) February 22, 2013, or (ii) the public announcement of FDA approval for RenalGuard for sale in the United States, and so long as the investors hold the shares purchased pursuant to the February SPA; in the event that the Company issues or sells any shares of common stock or any common stock equivalent at a price less than the Purchase Price (a “Share Dilutive Issuance”), the Company shall issue additional shares of common stock so that total amount paid by the investor to acquire the shares, divided by the number of shares held by the investor pursuant to the February SPA, plus the additional shares issued as a result of a Share Dilutive Issuance, equals the price per share paid in the Share Dilutive Issuance. This provision also extends to any common shares that are issued pursuant to an exercise of the February 2013 Warrants. As required under the terms of the February SPA, in connection with the September SPA, the Company issued to the investors in the February 2013 Financing an additional 40,400,001 shares of Common Stock due to these anti-dilutive provisions being triggered by the lower purchase price for shares issued in the September SPA. | |||||||
In conjunction with the February SPA, the Company entered into a Right To Shares Agreement with one of the investors. Pursuant to this agreement, in lieu of issuing 7,000,000 of the common shares purchased by the investor, the Company shall be obligated to issue, and the investor has the right to up to 7,000,000 shares of the Company’s common stock. No additional consideration will be paid upon the issuance of the shares and the subscription amount has been paid in full by the investor and is non-refundable. The Company is obligated to deliver the shares to the investor within 3 days of the investor’s request for the share issuance. If the Company fails to deliver the shares within 3 days of the request, under certain circumstances defined in the Right To Shares Agreement, the Company may be obligated to reimburse the investor in cash for losses that the investor incurs as a result of not having access to the shares (the “Buy-In Shares”). As of September 30, 2013, the Company has reserved, but not issued 19,000,000 shares of common stock pursuant to the Right To Shares Agreement. | |||||||
The February SPA also provides the investors with the option, for a period through November 21, 2013, to purchase on the same terms and with the same rights as the February 2013 SPA up to one-half of the shares of common stock purchased by the purchaser at the initial closing (“February 2013 SPA Option”). The investors would also receive a warrant for every option share exercised with the same terms as the warrant issued in the February SPA. To date, no shares have been purchased under the February 2013 SPA Option. The following is a summary of the February 2013 SPA Option for the nine months ending September 30, 2013: | |||||||
February 2013 SPA Option | Shares | Exercise | |||||
Price | |||||||
Beginning balance at February 22, 2013 | 13,466,667 | $ | 0.15 | ||||
Ending balance at September 30, 2013 | 13,466,667 | $ | 0.15 | ||||
The February 2013 Warrants have a term of five-years and were immediately exercisable for an aggregate 28,818,666 shares of common stock purchased at an exercise price of $0.20 per share. The exercise price of the 2013 Warrants shall be adjusted in the event of (a) stock splits, stock dividends, combinations, reclassifications, mergers, consolidations, distributions of assets or evidence of indebtedness, sales or transfers of substantially all assets, share exchanges or similar events, and (b) dilutive issuances of (i) common stock or (ii) common stock equivalents at an effective price per share that is lower than the then exercise price. Due to the September SPA, certain anti-dilution rights were triggered, resulting in the issuance of an additional 43,228,001 warrants at a price of $0.08 .All previously issued warrants related to the February 2013 financing have been repriced to $0.08. The February 2013 Warrants may be exercised on a cashless basis if at any time there is no effective registration statement within 180 days after the closing date of the private placement covering the resale of the shares of common stock underlying the February 2013 Warrants. The February 2013 Warrants contain limitations on the holder’s ability to exercise the February 2013 Warrant in the event such exercise causes the holder to beneficially own in excess of 4.99% of the Company’s issued and outstanding common stock, subject to a discretionary increase in such limitation by the holder to 9.99% upon 61 days’ notice. The following is a summary of the February 2013 Warrants for the nine months ending September 30, 2013: | |||||||
The February 2013 Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at February 22, 2013 | 28,818,666 | $ | 0.2 | ||||
Add: Anti-dilution adjustment | 43,228,001 | 0.08 | |||||
Ending balance at September 30, 2013 | 72,046,667 | $ | 0.08 | ||||
In June 2008, the FASB issued ASC 815-40-15 (formerly EITF 07-5, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock), which was effective for the Company in 2009. This issued guidance requires that derivative instruments be evaluated for certain contingencies and anti-dilution provisions that would affect their equity classification as a derivative under ASC 815, Derivatives and Hedging (ASC 815) and requires the instruments to be classified as liabilities and reported at fair value. | |||||||
Upon issuance, the February 2013 Warrants and February 2013 SPA Option were not considered indexed to the Company’s own stock and therefore are required to be accounted for as freestanding derivative instruments and classified as a liability. A Monte Carlo simulation was used to estimate the fair value of the February 2013 Warrants and February 2013 SPA Option resulting in grant date fair values of $2,759,000 and $1,211,000, respectively (see Note 11 — Fair Value Measurements). As of September 30, 2013, the February 2013 Warrants have been marked to fair value resulting in a derivative liability of $3,182,000. The impact to other income for the change in fair value of the February 2013 Warrants for the three and nine months ended September 30, 2013 was a loss of $1,165,000 and $423,000 respectively. As of September 30, 2013, the February 2013 SPA Options have been marked to fair value resulting in a derivative liability of $0. The impact to other income for the change in fair value of the February 2013 SPA Option for the three and nine months ended September 30, 2013 was a gain of $404,000 and a gain of $1,211,000, respectively. | |||||||
The Company also assessed the provisions of the Buy-In Share feature of the Rights To Shares Agreement as an embedded derivative pursuant to ASC 815-15, Embedded Derivatives, and has concluded that the feature meets the definition of a derivative and is not clearly and closely related to the Rights To Shares equity host agreement. The Buy-In Shares feature has been bifurcated from the Rights To Shares agreement and accounted for separately. The value of this feature was nominal as of the issuance date and September 30, 2013. | |||||||
Allocation of SPA Proceeds | |||||||
The Company first allocated the proceeds of the February SPA to the fair value of the February 2013 Warrants and February 2013 SPA Option. When the issuance costs were considered, the aggregate fair value of the February 2013 Warrants and February 2013 SPA Option exceeded exceeded the net proceeds of the February SPA. The Company recorded the difference as a reduction of additional paid in capital. | |||||||
The SPA requires the Company to use $1,000,000 of the proceeds received from the February SPA for investor relations. The Company engaged an investor relations firm and made an initial payment of $500,000 on the date of the February SPA closing. During the quarter ended September 30, 2013 the Company paid an additional $250,000. The remaining $250,000 will be paid during the quarter ended December 31, 2013. The Company has recorded the cash held in escrow as restricted cash on the balance sheet. The Company is amortizing the investor relations payments over the one-year estimated period of performance for the investor relations services. | |||||||
Convertible_Notes_and_Warrants
Convertible Notes and Warrants | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Convertible Notes and Warrants | ' | ||||||
Convertible Notes and Warrants | ' | ||||||
10. Convertible Notes and Warrants | |||||||
Features of the Convertible Notes and Investor Warrants | |||||||
On February 22, 2011 (the “Original Issue Date”), the Company entered into a Securities Purchase Agreement (“Purchase Agreement”) and a 5% Senior Secured Convertible Debenture Agreement (the “Note Agreement”) with GCP IV LLC (the “Investors” or “Holders”) pursuant to which the Company agreed to issue and sell in a private placement to the Investors an aggregate principal amount of $4,000,000 of convertible notes due February 22, 2014 (the “2011 Convertible Notes”) and warrants to purchase 40,000,000 shares of common stock at $0.15 per share (the “2011 Warrants”). Under the terms of the Purchase Agreement, the Company had the opportunity to raise up to an additional $2,000,000 from the Holders in two separate $1,000,000 tranches, based upon meeting certain operational milestones within certain periods of time. The deadline for achieving the operational milestones for the first $1,000,000 tranche expired in February 2012 without the Company achieving such milestones; however, the Investors agreed to waive both the deadline and the achievement of these milestones as a condition for the investment of the first additional $1,000,000 tranche (the “2012 Convertible Notes”) and issuance of warrants to purchase 10,000,000 shares of common stock at $0.15 per share and 10,000,000 shares of common stock at $0.25 per share (the “2012 Warrants”) which was completed on July 2, 2012. On January 16, 2013 the Company entered into an amendment and waiver to the Purchase Agreement to provide for the issuance of an additional $250,000 of 5% Senior Secured Convertible Debentures (the “Third Tranche Convertible Notes”) maturing on January 16, 2016 and warrants exercisable for a period of five years to purchase up to 2,500,000 shares of common stock at an exercise price of $0.15 per share (the “Third Tranche Warrants”). | |||||||
The convertible notes and warrants and the Purchase Agreement covering both are secured by a security interest in all assets of the Company and its subsidiaries and all such obligations are guaranteed jointly and severally by the Company’s subsidiaries. The convertible notes also contain non-financial covenants which limit the Company and its subsidiaries from incurring subsequent indebtedness, incurring liens, and amending organizational documents, repurchasing or repaying other debt, paying cash dividends and entering into affiliate transactions. | |||||||
On February 22, 2013, simultaneous with the closing of the February SPA, the Company entered into an Amendment and Waiver Agreement (the “February Amendment and Waiver Agreement”) with the Holder under which the Holder agreed to (a) increase the number of shares exercisable under the 2011 and 2012 Warrants from an aggregate 50,000,000 shares to 81,578,946 shares and to modify both the exercise price and the Volume Weighted Average Price (“VWAP price”) of the 2011 and 2012 Warrants to $0.098 and $0.155, respectively, (b) return to the Company for forfeiture the remaining warrants previously issued to purchase an aggregate 12,500,000 shares of common stock, (c) extend the due date for the 2012 Convertible Notes from February 22, 2014 to June 30, 2015, (d) until February 22, 2014, without the prior written consent from the majority of the investors under the February SPA, forbear from declaring any Event of Default (as defined in the original debenture, and (e) relinquish its right to purchase up to an additional $750,000 in debentures under the terms of the original Purchase Agreement. The terms of the individual tranches of convertible notes and warrants issued pursuant to this agreement and the impact of the Amendment and Waiver Agreement are discussed below. | |||||||
On September 18, 2013, simultaneous with the closing of the September SPA, the company entered into an Amendment and Waiver Agreement (“the September Amendment and Waiver Agreement”) under which the holders of the term debentures have agreed to (a) extend the payment due date for the interest on the debentures to June 30, 2015, modify the conversion price for the debentures to $0.06, and set the VWAP Price of the warrants originally issued in 2011 and 2012 to $0.3705. | |||||||
2011 Convertible Notes | |||||||
The September Amendment and Waiver of the Convertible Notes extends the payment due date for the interest on the debentures to June 30, 2015. Interest is calculated on the basis of a 360-day year and accrues daily commencing on the Original Issue Date until payment in full of the outstanding principal, together with all accrued and unpaid interest, liquidated damages and other amounts that may become due in connection with the Convertible Notes, has been made. | |||||||
The Holders may convert the outstanding principal amount of the Convertible Notes into shares of the Company’s common stock at the conversion price of $0.06 per share (“Conversion Price”) as per the September 2013 Amendment and Waiver. The Conversion Price is subject to adjustment in the event of (a) stock splits, stock dividends, combinations, reclassifications, mergers, consolidations, distributions of assets or evidence of indebtedness, sales or transfers of substantially all assets, share exchanges or similar events, and (b) certain dilutive issuances of (i) common stock or (ii) common stock equivalents at an effective price per share that is lower than the then Conversion Price. | |||||||
At any time after February 2012, and upon entering into a change of control transaction or Fundamental Transaction, as defined in the Debenture Agreement, the Company may deliver a notice to the Holders of its irrevocable election to redeem all of the then outstanding principal of the Convertible Notes for cash in an amount equal to the sum of (a) the greater of (i) the outstanding amount of the Convertible Notes divided by the Conversion Price on the date of the mandatory default amount, as defined in the Purchase Agreement, is either (A) demanded or (B) paid in full, whichever has a lower conversion price, multiplied by the VWAP of the date of the mandatory default amount is either (x) demanded or otherwise due or (y) paid in full, whichever has higher VWAP, plus all accrued and unpaid interest, or (ii) 130% of the outstanding principal amount of the Notes, plus 100% of accrued and unpaid interest, and (b) all other amounts, costs, expenses and liquidated damages due under the various agreements covering issuance of the Convertible Notes. Such amount would include the liquidated damages due under the default provision of the Purchase Agreement. | |||||||
Due to the February 2013 Amendment and Waiver agreement, the Company is required to repay, in cash, any outstanding principal amount of the Convertible Notes on June 30, 2015 and is not permitted, except upon entering into a change of control transaction or fundamental transaction as noted above, to prepay any portion of the principal amount without prior written consent of the Holders. | |||||||
2011 Warrants | |||||||
On February 22, 2011, in connection with the issuance of the 2011 Convertible Notes, the Company issued warrants for the purchase of up to 40,000,000 shares of common stock at the exercise price of $0.15 per share and with an expiration date of February 22, 2016 (the “Warrants”). On February 22, 2013, as per the terms of the Amendment and Waiver Agreement, the Company canceled the original warrants and re-issued new warrants for the purchase of up to 65,263,156 shares of common stock at an exercise price of $0.098 per share. | |||||||
The 2011 Warrants are exercisable by a cashless exercise to purchase shares of the Company’s common stock (the “Warrant Shares”). The Exercise Price of the Warrants shall be adjusted in the event of (a) stock splits, stock dividends, combinations, reclassifications, mergers, consolidations, distributions of assets or evidence of indebtedness, sales or transfers of substantially all assets, share exchanges or similar events, and (b) certain dilutive issuances of (i) common stock or (ii) common stock equivalents at an effective price per share that is lower than the then Exercise Price. | |||||||
In connection with a Fundamental Transaction, as defined in the Purchase Agreement, that is an all-cash transaction, the Company shall have the right to purchase from the Holders all, but not less than all, of the unexercised portion of the Warrants by paying in cash to the Holders an amount equal to 30% of the Exercise Price multiplied by the number of shares of Common Stock for which the Warrants are exercisable immediately prior to such change of control transaction. | |||||||
During the nine months ended September 30, 2013, 47,322,376 of the 2011 Warrants were exercised pursuant to the cashless exercise provisions resulting in the issuance of 19,608,926 shares of common stock. | |||||||
The following is a summary of the 2011 Warrants outstanding for the nine months ending September 30, 2013: | |||||||
2011 Warrants | Exercise | ||||||
Price | |||||||
Beginning balance — December 31, 2012 | 40,000,000 | $ | 0.15 | ||||
Less: Canceled | (40,000,000 | ) | 0.15 | ||||
Add: Issued | 65,263,156 | 0.098 | |||||
Less: Exercised | (47,322,376 | ) | 0.098 | ||||
Ending Balance — September 30, 2013 | 17,940,780 | $ | 0.098 | ||||
2012 Convertible Notes | |||||||
The 2012 Convertible Notes contains the same terms as the 2011 Convertible Notes and require payment of interest at the rate of 5% per annum, payable upon the maturation of the debenture and mature on July 2, 2015. The Second Tranche Convertible Notes provide the Investors the option at any time prior to the repayment of the notes to convert any portion of the outstanding Second Tranche balance into fully-paid and non-assessable restricted shares of common stock of the Company at an initial conversion price of $0.06 per share (the “Conversion Price”). The Conversion Price is subject to adjustment in the event of (a) stock splits, stock dividends, combinations, reclassifications, mergers, consolidations, distributions of assets or evidence of indebtedness, sales or transfers of substantially all assets, share exchanges or similar events, and (b) certain dilutive issuances of (i) common stock or (ii) common stock equivalents at an effective price per share that is lower than the then Conversion Price. | |||||||
The Second Tranche Convertible Notes may be redeemed at the option of the Company on the same terms as the Convertible Notes only in connection with a change of control or other fundamental transaction of the Company and subject to the satisfaction of other conditions including, without limitation, that the shares issuable upon conversion of the debentures are freely tradable and that there is no event of default. | |||||||
2012 Warrants | |||||||
On July 2, 2012, in conjunction with the issuance of the 2012 Convertible Notes, the Company issued warrants for the purchase of up to 20,000,000 shares of common stock with five year terms. The warrants were issued to allow the Investors to purchase up to 10,000,000 shares of common stock at an initial purchase price of $0.15 per share and the remaining 10,000,000 shares of common stock at an initial purchase price of $0.25 per share. The terms of the 2012 Warrants are identical to those of the 2011 Warrants, except that the 2012 Warrants are exercisable for a period of five years from the date of issuance and contain different exercise prices. On February 22, 2013, as per the terms of the Amendment and Waiver Agreement, the Company canceled the original warrants and re-issued new warrants for the purchase of up to 16,315,790 shares of common stock at an initial purchase price of $0.098. During the nine months ended September 30, 2013, 9,250,535 of the 2012 Warrants were exercised pursuant to the cashless exercise provisions resulting in the issuance of 3,401,809 shares of common stock. | |||||||
The following is a summary of the 2012 Warrants outstanding at September 30, 2013: | |||||||
$0.15 Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at December 31, 2012 | 10,000,000 | $ | 0.15 | ||||
Less: Canceled | (10,000,000 | ) | 0.15 | ||||
Add: Issued | 16,315,790 | 0.098 | |||||
Less: Exercised | (9,250,535 | ) | 0.098 | ||||
Ending balance at September 30, 2013 | 7,065,255 | $ | 0.098 | ||||
$0.25 Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at December 31, 2012 | 10,000,000 | $ | 0.25 | ||||
Less: Canceled | (10,000,000 | ) | 0.25 | ||||
Ending balance at September 30, 2013 | — | $ | — | ||||
Third Tranche Convertible Notes | |||||||
The Third Tranche Convertible Notes, which were issued on January 16, 2013, contain the same terms as the 2011 and 2012 Convertible Notes and require payment of interest at the rate of 5% per annum, payable upon the maturation of the debenture on January 16, 2016. The Third Tranche Convertible Notes provide the Investors the option at any time prior to the repayment of the notes to convert any portion of the outstanding Third Tranche balance into fully-paid and non-assessable restricted shares of common stock of the Company at an initial conversion price of $0.06 per share (the “Conversion Price”). The Conversion Price is subject to adjustment in the event of (a) stock splits, stock dividends, combinations, reclassifications, mergers, consolidations, distributions of assets or evidence of indebtedness, sales or transfers of substantially all assets, share exchanges or similar events, and (b) certain dilutive issuances of (i) common stock or (ii) common stock equivalents at an effective price per share that is lower than the then Conversion Price. | |||||||
The Third Tranche Convertible Notes may be redeemed at the option of the Company on the same terms as the 2011 and 2012 Convertible Notes only in connection with a change of control or other fundamental transaction of the Company and subject to the satisfaction of other conditions including, without limitation, that the shares issuable upon conversion of the debentures are freely tradable and that there is no event of default. | |||||||
Third Tranche Warrants | |||||||
On January 16, 2013, in connection with the Third Tranche Convertible Notes, the Company issued warrants for the purchase of up to 2,500,000 shares of common stock with five year terms. The warrants were issued to allow the Investors to purchase up to 2,500,000 shares of common stock at an initial purchase price of $0.15 per share. On February 22, 2013, per the terms of the Amendment and Waiver Agreement, the Third Tranche Warrants were canceled. The following is a summary of the 2012 Warrants outstanding for the nine months ending September 30, 2013: | |||||||
Third Tranche Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at December 31, 2012 | — | $ | — | ||||
Add: Issued | 2,500,000 | $ | 0.15 | ||||
Less: Canceled warrants | (2,500,000 | ) | 0.15 | ||||
Ending balance at September 30, 2013 | — | $ | — | ||||
Accounting for the 2011 Convertible Notes, 2012 Convertible Notes, Third Tranche Convertible Notes, 2011 Warrants, 2012 Warrants, and Third Tranche Warrants | |||||||
2011 Convertible Notes, 2012 Convertible Notes, and Third Tranche Convertible Notes | |||||||
The Company has determined that the 2011 Convertible Notes, 2012 Convertible Notes and Third Tranche Convertible Notes constitute a hybrid instrument that has the characteristics of a debt host contract containing several embedded derivative features that would require bifurcation and separate accounting as a derivative instrument pursuant to the provisions of ASC 815. The Company has identified all of the derivatives associated with each convertible note. As permitted under ASC 825-10-10 — Financial Instruments, as it relates to the fair value option, the Company has elected, as of the original issuance date of each convertible note, to measure the 2011 Convertible Notes, 2012 Convertible Notes, and the Third Tranche Convertible Notes in their entirety at fair value with changes in fair value recognized in the Consolidated Statement of Operations as either a gain or loss until the notes are settled. As such, the Company has appropriately valued the embedded derivatives as a single hybrid contract together with the convertible notes. This election was made by the Company after determining the aggregate fair value of the convertible notes to be more meaningful in the context of the Company’s financial statements than if separate fair values were assigned to each of the multiple embedded instruments contained in the convertible notes. | |||||||
Pursuant to the guidance of ASC 815-40-15 (formerly EITF 07-5, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock), the 2011 Warrants, 2012 Warrants and Third Tranche Warrants were not considered indexed to the Company’s own stock. As a result these instruments have been account for as freestanding derivative instruments and classified as a liability recorded at fair value at each reporting period. | |||||||
The February 2013 Amendment and Waiver Agreement triggered a greater than 10% change in the present value of cash flows of the convertible notes and associated warrants. As a result, the Company has treated the Amendment and Waiver Agreement as a debt extinguishment where the carrying value of the convertible notes and warrants prior to the amendment were removed from the Company’s books and the fair value of the amended convertible notes and warrants was recorded. The resulting difference in value was recorded as a $1,283,000 loss on the extinguishment of debt. The impact to each of the convertible notes and associated warrants is discussed below. | |||||||
The September 2013 Amendment and Waiver Agreement triggered a greater than 10% change in the present value of cash flows of the convertible notes. As a result, the Company has treated the Amendment and Waiver Agreement as a debt extinguishment where the carrying value of the convertible notes prior to the amendment were removed from the Company’s books and the fair value of the amended convertible notes was recorded. The resulting difference in value was recorded as a $1,991,000 loss on the extinguishment of debt. The impact to each of the convertible note tranches is discussed below. | |||||||
2011 Convertible Notes and 2011 Warrants | |||||||
Upon issuance of the 2011 Convertible Notes, the Company allocated the proceeds received to the 2011 Convertible Notes and 2011 Warrants on a relative fair value basis. As a result of such allocation, the Company determined the initial carrying value of the Notes to be $3,208,000. The debt discount in the amount of $792,000 (resulting from the allocation of proceeds) was being amortized to interest expense using the effective interest method over the expected term of the 2011 Convertible Notes. The carrying value of the 2011 Convertible Notes has been adjusted to fair value each reporting period. During the three and nine months ended September 30, 2012, the Company amortized $67,000 and $198,000 of the debt discount and recorded a $747,000 gain and a $2,715,000 loss in the adjustment to the fair value of the notes as a component of other income (expense), respectively. | |||||||
The Company has accounted for the February 2013 Amendment and Waiver Agreement as an extinguishment of debt at February 22, 2013. The fair value of the 2011 Convertible Notes prior to the extinguishment was replaced by the fair value of the amended 2011 Convertible Notes, resulting in a fair value of $6,070,000 as of February 22, 2013. In connection with the extinguishment of the debt as of February 22, 2013, the Company had amortized $38,000 of the debt discount and wrote off the remaining debt discount of $265,000. | |||||||
The Company has accounted for the September 2013 Amendment and Waiver Agreement as an extinguishment of debt at September 18, 2013. The fair value of the 2011 Convertible Notes prior to the extinguishment was replaced by the fair value of the amended 2011 Convertible Notes, resulting in a fair value of $4,920,000 as of September 18, 2013. As of September 30, 2013, the 2011 Convertible Notes have been marked to fair value resulting in a derivative liability of $4,190,000. The impact to other income (expense) for the loss on extinguishment and adjustments to fair value for the three and nine months ended September 30, 2013 was a gain of $1,227,000 and $1,475,000 respectively. | |||||||
During the three and nine months ended September 30, 2013, certain holders of the 2011 Convertible Notes converted $456,000 and $756,000, respectively, of convertible note principal into 6,427,000 and 9,427,000 shares of common stock, respectively. The conversions resulted in the reclassification of $433,000 and $833,000, respectively, in conversion date fair value of the shares as a component of the common stock balance in stockholders’ equity within the balance sheet. | |||||||
As a result of the February 2013 Amendment and Waiver Agreement the carrying value of the 2011 Warrants was adjusted at February 22, 2013 to reflect the revised terms. As of September 30, 2013, the 2011 Warrants have been marked to fair value resulting in a derivative liability of $538,000. The impact to other income (expense) for the change in fair value of the 2011 Warrants for the three and nine months ended September 30, 2013 was a gain of $857,000 and a loss of $955,000 respectively. | |||||||
During the three and nine months ended September 30, 2013, certain holders of the 2011 Warrants exercised warrants to purchase 18,236,853 and 47,322,376, respectively, shares of common stock pursuant to the cashless exercise provisions resulting in the issuance of 8,913,000 and 19,609,000, respectively, shares of the Company’s common stock. The cashless exercise resulted in the reclassification of $652,000 and $2,405,000, respectively, in the exercise date fair value of the 2011 Warrants exercised as a component of the common stock balance within stockholders’ equity in the balance sheet. | |||||||
2012 Convertible Notes and 2012 Warrants | |||||||
Upon issuance of the 2012 Convertible Notes, the Company allocated the proceeds received to the Second Tranche Convertible Notes and 2012 Warrants on a relative fair value basis. As a result of such allocation, the Company determined the initial carrying value of the Second Tranche Convertible Notes to be $417,000. The debt discount in the amount of $583,000 (resulting from the allocation of proceeds) was being amortized to interest expense using the effective interest method over the expected term of the 2012 Convertible Notes. The carrying value of the 2012 Convertible Notes has been adjusted to fair value each reporting period. During the three and nine months ended September 30, 2012 the Company amortized $17,000 of the debt discount and recorded a loss of $1,502,000 in fair value adjustment as a component of other income (expense), respectively. | |||||||
The Company has accounted for the February 2013 Amendment and Waiver Agreement as an extinguishment of debt at February 22, 2013. The fair value of the 2012 Convertible Notes prior to the extinguishment was replaced by the fair value of the amended 2012 Convertible Notes, resulting in a fair value of $1,516,000 as of February 22, 2013. | |||||||
The Company has accounted for the September 2013 Amendment and Waiver Agreement as an extinguishment of debt at September 18, 2013. The fair value of the 2012 Convertible Notes prior to the extinguishment was replaced by the fair value of the amended 2012 Convertible Notes, resulting in a fair value of $1,390,000 as of September 18, 2013. As of September 30, 2013, the 2012 Convertible Notes have been marked to fair value resulting in a derivative liability of $1,290,000. The impact to other income (expense) for the loss on extinguishment and adjustments to fair value was a loss of $110,000 and a gain of $353,000 for the three and nine months ended September 30, 2013, respectively. | |||||||
As a result of the February 2013 Amendment and Waiver Agreement the carrying value of the 2012 Warrants was adjusted at February 22, 2013 to reflect the revised terms. As of September 30, 2013, the 2012 Warrants have been marked to fair value resulting in a derivative liability of $283,000. The impact to other income (expense) for the three and nine months ended September 30, 2013 was a gain of $458,000 and $1,279,000 respectively. | |||||||
During the three months ended September 30, 2013, certain holders of the 2012 Warrants exercised warrants to purchase 9,250,535 shares of common stock pursuant to the cashless exercise provisions resulting in the issuance of 3,401,809 shares of the Company’s common stock. The cashless exercise resulted in the reclassification of $238,000 in the exercise date fair value of the 2012 Warrants exercised as a component of common stock in stockholders’ equity. | |||||||
Third Tranche Convertible Notes and Third Tranche Warrants | |||||||
Upon issuance of the Third Tranche Convertible Notes in January 2013, the Company allocated the proceeds received to the Third Tranche Convertible Notes and Third Tranche Warrants on a relative fair value basis. As a result of such allocation, the Company determined the initial carrying value of the Third Tranche Convertible Notes to be $142,000. The Third Tranche Convertible Notes were immediately marked to fair value, resulting in a derivative liability in the amount of $394,000. The debt discount in the amount of $108,000 (resulting from the allocation of proceeds) was being amortized to interest expense using the effective interest method over the expected term of the Convertible Notes. | |||||||
The Company has accounted for the February 2013 Amendment and Waiver Agreement as an extinguishment of debt at February 22, 2013. The fair value of the Third Tranche Convertible Notes prior to the extinguishment was replaced by the fair value of the amended Third Tranche Convertible Notes, resulting in a fair value of $386,000 as of February 22, 2013. | |||||||
The Company has accounted for the September 2013 Amendment and Waiver Agreement as an extinguishment of debt at September 18, 2013. The fair value of the Third Tranche Convertible Notes prior to the extinguishment was replaced by the fair value of the amended Third Tranche Convertible Notes, resulting in a fair value of $361,000 as of September 18, 2013. As of September 30, 2013, the Third Tranche Convertible Notes have been marked to fair value resulting in a derivative liability of $313,000. The impact to other income (expense) for the loss on extinguishment and adjustments to fair value was a loss of $18,000 and a gain of $83,000 for the three and nine months ended September 30, 2013, respectively. | |||||||
Upon issuance of the Third Tranche Warrants, the Company allocated $108,000 of the initial proceeds to the Third Tranche Warrants and immediately marked them to fair value resulting in a derivative liability of $300,000. As of September 30, 2013, the Third Tranche Warrants have been canceled as per the terms of the February 2013 Amendment and Waiver Agreement. The impact to other income (expense) for the three and nine months ended September 30, 2013 was a gain of $0 and $108,000, respectively. | |||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||||
11. Fair Value Measurements | |||||||||||||||||||||||||||||||||||
The following summarizes the Company’s assets and liabilities measured at fair value as of December 31, 2012: | |||||||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||||||||||||
Quoted | |||||||||||||||||||||||||||||||||||
Prices | |||||||||||||||||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||||||||||||||||
Balance as of | Identical | Observable | Unobservable | ||||||||||||||||||||||||||||||||
December 31, | Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||
Description | 2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Convertible notes | $ | 8,098,000 | $ | — | $ | — | $ | 8,098,000 | |||||||||||||||||||||||||||
Warrant liabilities | $ | 3,800,000 | $ | — | $ | — | $ | 3,800,000 | |||||||||||||||||||||||||||
Total Liabilities | $ | 11,898,000 | $ | — | $ | — | $ | 11,898,000 | |||||||||||||||||||||||||||
The following summarizes the Company’s assets and liabilities measured at fair value as of September 30, 2013: | |||||||||||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||||||||||||
Quoted | |||||||||||||||||||||||||||||||||||
Prices | |||||||||||||||||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||||||||||||||||
Balance as of | Identical | Observable | Unobservable | ||||||||||||||||||||||||||||||||
September 30, | Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||
Description | 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Convertible notes | $ | 5,793,000 | $ | — | $ | — | $ | 5,793,000 | |||||||||||||||||||||||||||
Warrant liabilities | $ | 6,452,000 | $ | — | $ | — | $ | 6,452,000 | |||||||||||||||||||||||||||
Total Liabilities | $ | 12,245,000 | $ | — | $ | — | $ | 12,245,000 | |||||||||||||||||||||||||||
A summary of changes in the Convertible Notes, Second Tranche Convertible Notes, Third Tranche Convertible Notes, Investor Warrants, 2012 Warrants, Third Tranche Warrants, and the 2013 Warrants and Additional 2013 Warrants as of September 30, 2012, December 31, 2012, February 22, 2013, September 18, 2013 and September 30, 2013 is as follows: | |||||||||||||||||||||||||||||||||||
Fair Value | Fair Value of | Fair Value of | Fair Value of | Fair Value of | Fair Value of | February | February | September | September | Total | |||||||||||||||||||||||||
of 2011 | 2011 | 2012 | 2012 | Third | Third | 2013 | 2013 SPA | 2013 | 2013 SPA | ||||||||||||||||||||||||||
Convertible | Warrant | Convertible | Warrant | Tranche | Tranche | Warrants | Option | Warrants | Options | ||||||||||||||||||||||||||
Notes | Liabilities | Notes | Liabilities | Convertible | Warrant | ||||||||||||||||||||||||||||||
Notes | Liabilities | ||||||||||||||||||||||||||||||||||
Balance December 31, 2011 | $ | 5,327,000 | $ | 1,600,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,927,000 | |||||||||||||
Amortization of debt discount | $ | 198,000 | $ | — | $ | 17,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 215,000 | |||||||||||||
Allocation of initial proceeds | $ | — | $ | — | $ | 417,000 | $ | 583,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,000,000 | |||||||||||||
Fair value adjustment | $ | 2,715,000 | $ | 1,600,000 | $ | 1,502,000 | $ | 1,917,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 7,734,000 | |||||||||||||
Balance September 30, 2012 | $ | 8,240,000 | $ | 3,200,000 | $ | 1,936,000 | $ | 2,500,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 15,876,000 | |||||||||||||
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 | |||||||||||||
Fair value adjustment | $ | (2,041,000 | ) | $ | (716,000 | ) | $ | (536,000 | ) | $ | (970,000 | ) | $ | (136,000 | ) | $ | — | $ | (742,000 | ) | $ | (807,000 | ) | $ | — | $ | — | $ | (5,948,000 | ) | |||||
Carrying value of old debt at modification | $ | (3,450,000 | ) | $ | — | $ | (980,000 | ) | $ | — | $ | (250,000 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4,680,000 | ) | |||||||||
Fair value of new debt at modification | $ | 4,920,000 | $ | — | $ | 1,390,000 | $ | — | $ | 361,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,671,000 | |||||||||||||
Conversion of debentures and warrants | $ | (579,000 | ) | $ | (2,152,000 | ) | $ | — | $ | (238,000 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2,969,000 | ) | |||||||||
Fair value of instruments at issuance | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,807,000 | $ | 1,166,000 | $ | 2,973,000 | |||||||||||||
September 18, 2013 | $ | 4,920,000 | $ | 1,048,000 | $ | 1,390,000 | $ | 424,000 | $ | 361,000 | $ | — | $ | 2,017,000 | $ | 404,000 | $ | 1,807,000 | $ | 1,166,000 | $ | 13,537,000 | |||||||||||||
Conversion of debentures and warrants | $ | (304,000 | ) | $ | (265,000 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (569,000 | ) | ||||||||||
Fair value adjustment | $ | (426,000 | ) | $ | (245,000 | ) | $ | (100,000 | ) | $ | (141,000 | ) | $ | (48,000 | ) | $ | — | $ | 1,165,000 | $ | (404,000 | ) | $ | (233,000 | ) | $ | (291,000 | ) | $ | (723,000 | ) | ||||
September 30, 2013 | $ | 4,190,000 | $ | 538,000 | $ | 1,290,000 | $ | 283,000 | $ | 313,000 | $ | — | $ | 3,182,000 | $ | — | $ | 1,574,000 | $ | 875,000 | $ | 12,245,000 | |||||||||||||
Valuation — Methodology and Significant Inputs Assumptions | |||||||||||||||||||||||||||||||||||
Fair values for the Company’s derivatives and financial instruments are estimated by utilizing valuation models that consider current and expected stock prices, volatility, dividends, market interest rates, forward yield curves and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future. The methods and significant inputs and assumptions utilized in estimating the fair value of the warrant liabilities, 2013 SPA Options and Convertible Notes as of the December 31, 2012 balance sheet date, February 22, 2013 Amendment and Waiver Agreement date, September 18, 2013 Amendment and Waiver agreement, and the September 30, 2013 balance sheet date are discussed below. Each of the measurements is considered a Level 3 measurement as a result of at least one significant unobservable input. | |||||||||||||||||||||||||||||||||||
2011 Warrants | |||||||||||||||||||||||||||||||||||
A Black-Scholes-Merton option-pricing model, with dilution effects, was utilized to estimate the fair value of the 2011 Warrants as of December 31, 2012, February 22, 2013, and September 30, 2013. This model is widely used in estimating value of European options dependent upon a non-paying dividend stock and fixed inputs. This model is subject to the significant assumptions discussed below and requires the following key inputs with respect to the Company and/or instrument: | |||||||||||||||||||||||||||||||||||
Input | December 31, | February 22, | September 30, | ||||||||||||||||||||||||||||||||
2012 | 2013 | 2013 | |||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.065 | |||||||||||||||||||||||||||||
Exercise Price | $ | 0.15 | $ | 0.15 | $ | 0.098 | |||||||||||||||||||||||||||||
Expected Life (in years) | 3.15 | 3 | 2.4 | ||||||||||||||||||||||||||||||||
Stock Volatility | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||
Risk-Free Rate | 0.39 | % | 0.4 | % | 0.24 | % | |||||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 160,666,475 | ||||||||||||||||||||||||||||||||
2012 Warrants | |||||||||||||||||||||||||||||||||||
$0.15 Warrants | |||||||||||||||||||||||||||||||||||
A Black-Scholes-Merton option-pricing model, with dilution effects, was also utilized to estimate the fair value of the $0.15 Warrants as of December 31, 2012, February 22, 2013, and September 30, 2013. | |||||||||||||||||||||||||||||||||||
Input | December 31, | February 22, | September 30, | ||||||||||||||||||||||||||||||||
2012 | 2013 | 2013 | |||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.065 | |||||||||||||||||||||||||||||
Exercise Price | $ | 0.15 | $ | 0.15 | $ | 0.0098 | |||||||||||||||||||||||||||||
Expected Life (in years) | 4.5 | 4.38 | 3.76 | ||||||||||||||||||||||||||||||||
Stock Volatility | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||
Risk-Free Rate | 0.63 | % | 0.7 | % | 0.92 | % | |||||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 160,666,475 | ||||||||||||||||||||||||||||||||
$0.25 Warrants | |||||||||||||||||||||||||||||||||||
A Black-Scholes-Merton option-pricing model, with dilution effects, was also utilized to estimate the fair value of the $0.25 Warrants as December 31, 2012. These warrants were canceled on February 22, 2013. | |||||||||||||||||||||||||||||||||||
Input | December 31, 2012 | ||||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | |||||||||||||||||||||||||||||||||
Exercise Price | $ | 0.25 | |||||||||||||||||||||||||||||||||
Expected Life (in years) | 4.5 | ||||||||||||||||||||||||||||||||||
Stock Volatility | 100 | % | |||||||||||||||||||||||||||||||||
Risk-Free Rate | 0.63 | % | |||||||||||||||||||||||||||||||||
Dividend Rate | 0 | % | |||||||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | ||||||||||||||||||||||||||||||||||
Third Tranche Warrants | |||||||||||||||||||||||||||||||||||
A Black-Scholes-Merton option-pricing model, with dilution effects, was also utilized to estimate the fair value of the Third Tranche Warrants as of January 16, 2013. These warrants were canceled on February 22, 2013. | |||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
February 2013 Warrants | |||||||||||||||||||||||||||||||||||
A Monte Carlo simulation mode was utilized to estimate the fair value of the February 2013 warrants as of February 22, 2013 and September 30, 2013. | |||||||||||||||||||||||||||||||||||
Input | February 22, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price | $ | 0.12 | $ | 0.058 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.2 | $ | 0.08 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 5 | 4.4 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 0.84 | % | 1.16 | % | |||||||||||||||||||||||||||||||
Number of Steps | 100,000 | 100,000 | |||||||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 59,576,097 | 160,666,475 | |||||||||||||||||||||||||||||||||
February 2013 SPA Option | |||||||||||||||||||||||||||||||||||
The February 2013 SPA option, upon exercise, allows the investor to purchase one share of common stock and one common stock warrant. The option was valued using multiple valuation models, including a Black-Scholes-Merton option-pricing model, with dilution effects, to estimate the fair value of the option to purchase the common share, and a Monte Carlo simulation to determine the estimated fair value of the warrant that would be issued at the time of exercise. These models were used to estimate the fair value of the option at February 22, 2013 and September 30, 2013. | |||||||||||||||||||||||||||||||||||
A Black-Scholes-Merton option-pricing model, with dilution effects, was also utilized to estimate the fair value of the February 2013 SPA Option as of February 22, 2013 and September 30, 2013. | |||||||||||||||||||||||||||||||||||
Input | February 22, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price | $ | 0.14 | $ | 0.065 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.15 | $ | 0.015 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 0.75 | 0.142 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 0.15 | % | 0.03 | % | |||||||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | |||||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 73,042,764 | 160,666,475 | |||||||||||||||||||||||||||||||||
A Monte Carlo simulation model was also utilized to estimate the fair value of the February 2013 SPA Option as of February 22, 2013 and September 30, 2013. | |||||||||||||||||||||||||||||||||||
Input | February 22, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price (simulated) | $ | 0.1 | $ | 0.065 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.2 | $ | 0.2 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 5 | 0.142 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 1.158 | % | 1.475 | % | |||||||||||||||||||||||||||||||
Number of Steps | 10,000 | 10,000 | |||||||||||||||||||||||||||||||||
September 2013 Warrants | |||||||||||||||||||||||||||||||||||
A Monte Carlo simulation mode was utilized to estimate the fair value of the September 2013 warrants as of September 18, 2013 and September 30, 2013. | |||||||||||||||||||||||||||||||||||
Input | September 18, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price | $ | 0.071 | $ | 0.062 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.08 | $ | 0.08 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 5 | 4.97 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 1.43 | % | 1.38 | % | |||||||||||||||||||||||||||||||
Number of Steps | 100,000 | 100,000 | |||||||||||||||||||||||||||||||||
September 2013 SPA Option | |||||||||||||||||||||||||||||||||||
The September 2013 SPA option, upon exercise, allows the investor to purchase one share of common stock and one common stock warrant. The option was valued using multiple valuation models, including a Black-Scholes-Merton option-pricing model, with dilution effects, to estimate the fair value of the option to purchase the common share, and a Monte Carlo simulation to determine the estimated fair value of the warrant that would be issued at the time of exercise. These models were used to estimate the fair value of the option at September 18, 2013 and September 30, 2013. | |||||||||||||||||||||||||||||||||||
A Black-Scholes-Merton option-pricing model, with dilution effects, was also utilized to estimate the fair value of the September 2013 SPA Option as of September 18, 2013 and September 30, 2013. | |||||||||||||||||||||||||||||||||||
Input | September 18, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 0.748 | 0.715 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 0.07 | % | 0.07 | % | |||||||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | |||||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 143,997,066 | 160,666,475 | |||||||||||||||||||||||||||||||||
A Monte Carlo simulation model was also utilized to estimate the fair value of the 2013 SPA Option as of September 18, 2013 and September 30, 2013. | |||||||||||||||||||||||||||||||||||
Input | September 18, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price (simulated) | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 0.748 | 0.715 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 0.07 | % | 0.07 | % | |||||||||||||||||||||||||||||||
Number of Steps | 10,000 | 10,000 | |||||||||||||||||||||||||||||||||
2011 Convertible Notes | |||||||||||||||||||||||||||||||||||
A binomial lattice model was utilized to estimate the fair value of the Convertible Notes as of December 31, 2012, February 22, 2012, September 18, 2013 and September 30, 2013. The binomial model considers the key features of the Convertible Notes, as noted above, and is subject to the significant assumptions discussed below. First, a discrete simulation of the Company’s stock price, without effects of dilution due to the conversion feature, was conducted at each node and throughout the expected life of the instrument. Second, a discrete simulation of the Company’s stock price, with effects of dilution due to the conversion feature, was conducted at each node and throughout the expected life of the instrument. Third, based upon the simulated stock price with dilution effect, an analysis of the higher position of a conversion position, redemption position, or holding position (i.e. fair value of the respective future nodes value discounted using the applicable discount rate) was conducted relative to each node until a final fair value of the instrument is conducted at the node representing the measurement date. This model requires the following key inputs with respect to the Company and/or instrument: | |||||||||||||||||||||||||||||||||||
Input | December 31, | February 22, | September 18 | September 30, | |||||||||||||||||||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||
Strike Price | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||
Expected remaining term (in years) | 1.15 | 2.35 | 1.78 | 1.75 | |||||||||||||||||||||||||||||||
Stock Volatility | 105 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||
Risk-Free Rate | 0.17 | % | 0.32 | % | 0.38 | % | 0.27 | % | |||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 143,997,066 | 160,666,475 | |||||||||||||||||||||||||||||||
Effective discount rate | 13.1 | % | 13.2 | % | 16.4 | % | 16.4 | % | |||||||||||||||||||||||||||
Probability of forced redemption | 20 | % | 20 | % | 20 | % | 20 | % | |||||||||||||||||||||||||||
2012 Convertible Notes | |||||||||||||||||||||||||||||||||||
A binomial lattice model was also utilized to estimate the fair value of the 2012 Convertible Notes as of December 31, 2012, February 22, 2012 and September 30, 2013. This model requires the following key inputs with respect to the Company and/or instrument: | |||||||||||||||||||||||||||||||||||
Input | December 31, | February 22, | September 18 | September 30, | |||||||||||||||||||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||
Exercise Price | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||
Expected remaining term (in years) | 2.5 | 2.35 | 1.79 | 1.75 | |||||||||||||||||||||||||||||||
Stock Volatility | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||
Risk-Free Rate | 0.31 | % | 0.32 | % | 0.38 | % | 0.26 | % | |||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 143,997,066 | 160,666,475 | |||||||||||||||||||||||||||||||
Effective discount rate | 13.2 | % | 13.2 | % | 16.4 | % | 16.4 | % | |||||||||||||||||||||||||||
Probability of forced redemption | 20 | % | 20 | % | 20 | % | 20 | % | |||||||||||||||||||||||||||
Third Tranche Convertible Notes | |||||||||||||||||||||||||||||||||||
A binomial lattice model was also utilized to estimate the fair value of the Tranche Three Convertible Notes as of January 16, 2012, February 22, 2012 and September 30, 2013. This model requires the following key inputs with respect to the Company and/or instrument: | |||||||||||||||||||||||||||||||||||
Input | January 16, | February 22, | September 18 | September 30, | |||||||||||||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||
Exercise Price | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||
Expected remaining term (in years) | 3 | 2.9 | 2.33 | 2.3 | |||||||||||||||||||||||||||||||
Stock Volatility | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||
Risk-Free Rate | 0.36 | % | 0.39 | % | 0.56 | % | 0.42 | % | |||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 143,997,066 | 160,666,475 | |||||||||||||||||||||||||||||||
Effective discount rate | 13.2 | % | 13.2 | % | 13.3 | % | 13.3 | % | |||||||||||||||||||||||||||
Probability of forced redemption | 20 | % | 20 | % | 20 | % | 20 | % | |||||||||||||||||||||||||||
The following are significant assumptions utilized in developing the inputs: | |||||||||||||||||||||||||||||||||||
· The Company’s common stock shares are traded on the OTC Bulletin Board and, accordingly, the stock price input is based upon bid prices as of the valuation dates due to the extremely thin trading volume, broker-driven market (vs. exchange market) and the wide bid/ask spread as of the valuation date; | |||||||||||||||||||||||||||||||||||
· The expected future stock prices of the Company’s stock were modeled to include the effect of dilution upon conversion of the instruments to shares of common stock; | |||||||||||||||||||||||||||||||||||
· Stock volatility was estimated by considering (i) the annualized monthly volatility of the Company’s stock price during the historical period preceding the respective valuation dates and measured over a period corresponding to the remaining life of the instruments (monthly data set is more relevant given the extremely thin trading volume of the Company’s common stock) and (ii) the annualized daily volatility of comparable companies’ stock price during the historical period preceding the respective valuation dates and measured over a period corresponding to the remaining life of the instrument. Historic prices of the Company and comparable companies’ common stock were used to estimate volatility as the Company did not have traded options as of the valuation dates; | |||||||||||||||||||||||||||||||||||
· Based upon the Company’s historical operations and management’s expectations for the foreseeable future, the Company’s stock was assumed to be a non-dividend-paying stock; | |||||||||||||||||||||||||||||||||||
· The risk-free interest rate is based on the U.S. Treasury Yield curve in effect as of the valuation date for the expected term; | |||||||||||||||||||||||||||||||||||
· With respect to the 2011 Convertible Notes, 2012 Convertible Notes and Third Tranche Convertible Notes, the Company is expected to pay all accrued interest due to the Holders on each Interest Payment Date; | |||||||||||||||||||||||||||||||||||
· With respect to the 2011 Convertible Notes, 2012 Convertible Notes and Third Tranche Convertible Notes, based upon management’s expectations for a change of control or fundamental transaction to occur prior to the maturity date of the 2011 Convertible Notes, 2012 Convertible Notes and Third Tranche Convertible Notes, a low probability of a forced redemption; | |||||||||||||||||||||||||||||||||||
· Upon a change of control redemption, the change of control redemption amount shall equal to the sum of: | |||||||||||||||||||||||||||||||||||
I. the greater of: | |||||||||||||||||||||||||||||||||||
(i) the outstanding amount of the debt divided by the Conversion Price on the date of the mandatory default amount is either (A) demanded or (B) paid in full, whichever has a lower conversion price, multiplied by the VWAP of the date of the mandatory default amount is either (x) demanded or otherwise due or (y) paid in full, whichever has higher VWAP, plus all accrued and unpaid interest, or | |||||||||||||||||||||||||||||||||||
(ii) 130% of the outstanding principal amount of the debt, plus 100% of accrued and unpaid interest, and | |||||||||||||||||||||||||||||||||||
II. all other amounts, costs, expenses and liquidated damages due under the various agreements covering issuance of the debt. | |||||||||||||||||||||||||||||||||||
Additionally, it is assumed that no amounts are due pursuant to clause (II) above in any period and that the stock price at each respective node represents a reasonable approximation of the VWAP requirements. | |||||||||||||||||||||||||||||||||||
The changes in fair value between reporting periods are related to the changes in the price of the Company’s common stock as of the measurement dates, the volatility of the Company’s common stock during the remaining term of the instrument, changes in the conversion price and effective discount rate. | |||||||||||||||||||||||||||||||||||
Commitments
Commitments | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments | ' | ||||
Commitments | ' | ||||
12. Commitments | |||||
Lease Commitments | |||||
The Company leases its corporate office under an operating lease agreement that expires in August 2014. In addition to the minimum lease payments, the agreement requires payment of the Company’s pro-rata share of property taxes and building operating expenses. | |||||
As of September 30, 2013, future minimum lease payments are estimated to be as follows (in thousands): | |||||
Year | Future Minimum | ||||
Lease Payments | |||||
2013 | $ | 11 | |||
2014 | 30 | ||||
Total | $ | 41 | |||
The Company manufactures its RenalGuard consoles and sterile disposable kits using two separate outside contract manufacturers. The contracts with these manufacturers do not contain minimum purchase requirements or any future commitments. Purchases are made upon request to the manufacturer. | |||||
During the year ended December 31, 2011, the Company hired a clinical research organization (“CRO”) to assist with managing its clinical trial. The contract with the CRO does not contain minimum purchase requirements or any future commitments, and payments are made once services are provided. | |||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
13. Subsequent Events | |
The Company has evaluated all events or transactions through the date of this filing. During this period, the Company did not have any material subsequent events that impacted its condensed consolidated financial statements or disclosures. | |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
As of September 30, 2013 and December 31, 2012, inventories consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 145 | $ | 143 | ||||
Finished goods | — | 39 | ||||||
$ | 145 | $ | 182 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stock-Based Compensation | ' | |||||||||||
Summary of option activity under all plans | ' | |||||||||||
The following is a summary of option activity under all plans (in thousands, except per option data): | ||||||||||||
Number | Weighted | Average | Aggregate | |||||||||
of Options | Average | Remaining | Intrinsic | |||||||||
Exercise | Contractual | Value | ||||||||||
Price | Life (Years) | |||||||||||
Outstanding, December 31, 2012 | 5,592 | $ | 0.21 | 3.2 | $ | 6,500 | ||||||
Granted | 5,639 | 0.09 | ||||||||||
Exercised | — | — | ||||||||||
Cancelled | (502 | ) | 0.16 | |||||||||
Forfeited | (643 | ) | 0.1 | |||||||||
Expired | — | — | ||||||||||
Outstanding, September 30, 2013 | 10,086 | 0.15 | 6.1 | $ | 0 | |||||||
Exercisable, September 30, 2013 | 5,528 | 0.2 | 2.4 | $ | 0 | |||||||
Summary of assumptions used for weighted average fair value of options issued | ' | |||||||||||
Grants Issued in: | ||||||||||||
2013 | 2012 | |||||||||||
Expected life (years) | 3.00-6.00 | 5.00-6.00 | ||||||||||
Risk free rate | 0.73-1.67% | 0.19-0.69% | ||||||||||
Volatility | 195.75-217.52% | 204.1-216.2% | ||||||||||
Expected dividend yield | None | None | ||||||||||
Value of options granted | $0.07-0.09 | $0.12-0.17 |
Sale_of_Common_Stock_Tables
Sale of Common Stock (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
September 2013 Warrants | ' | ||||||
Sale of Common Stock | ' | ||||||
Summary of warrants outstanding | ' | ||||||
The September 2013 Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at September 18, 2013 | 30,625,001 | $ | 0.08 | ||||
Add: Adjustments | — | n/a | |||||
Ending balance at September 30, 2013 | 30,625,001 | $ | 0.08 | ||||
February 2013 Warrants | ' | ||||||
Sale of Common Stock | ' | ||||||
Summary of warrants outstanding | ' | ||||||
The February 2013 Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at February 22, 2013 | 28,818,666 | $ | 0.2 | ||||
Add: Anti-dilution adjustment | 43,228,001 | 0.08 | |||||
Ending balance at September 30, 2013 | 72,046,667 | $ | 0.08 | ||||
September 2013 SPA Option | ' | ||||||
Sale of Common Stock | ' | ||||||
Summary of option outstanding | ' | ||||||
September 2013 SPA Option | Shares | Exercise | |||||
Price | |||||||
Beginning balance at September 18, 2013 | 14,583,334 | $ | 0.06 | ||||
Ending balance at September 30, 2013 | 14,583,334 | $ | 0.06 | ||||
February 2013 SPA Option | ' | ||||||
Sale of Common Stock | ' | ||||||
Summary of option outstanding | ' | ||||||
February 2013 SPA Option | Shares | Exercise | |||||
Price | |||||||
Beginning balance at February 22, 2013 | 13,466,667 | $ | 0.15 | ||||
Ending balance at September 30, 2013 | 13,466,667 | $ | 0.15 |
Convertible_Notes_and_Warrants1
Convertible Notes and Warrants (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
2011 Warrants | ' | ||||||
Convertible Notes and Warrant Liabilities | ' | ||||||
Summary of warrants outstanding | ' | ||||||
2011 Warrants | Exercise | ||||||
Price | |||||||
Beginning balance — December 31, 2012 | 40,000,000 | $ | 0.15 | ||||
Less: Canceled | (40,000,000 | ) | 0.15 | ||||
Add: Issued | 65,263,156 | 0.098 | |||||
Less: Exercised | (47,322,376 | ) | 0.098 | ||||
Ending Balance — September 30, 2013 | 17,940,780 | $ | 0.098 | ||||
2012 Warrants - $0.15 Warrants | ' | ||||||
Convertible Notes and Warrant Liabilities | ' | ||||||
Summary of warrants outstanding | ' | ||||||
$0.15 Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at December 31, 2012 | 10,000,000 | $ | 0.15 | ||||
Less: Canceled | (10,000,000 | ) | 0.15 | ||||
Add: Issued | 16,315,790 | 0.098 | |||||
Less: Exercised | (9,250,535 | ) | 0.098 | ||||
Ending balance at September 30, 2013 | 7,065,255 | $ | 0.098 | ||||
2012 Warrants - $0.25 Warrants | ' | ||||||
Convertible Notes and Warrant Liabilities | ' | ||||||
Summary of warrants outstanding | ' | ||||||
$0.25 Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at December 31, 2012 | 10,000,000 | $ | 0.25 | ||||
Less: Canceled | (10,000,000 | ) | 0.25 | ||||
Ending balance at September 30, 2013 | — | $ | — | ||||
Third Tranche Warrants | ' | ||||||
Convertible Notes and Warrant Liabilities | ' | ||||||
Summary of warrants outstanding | ' | ||||||
Third Tranche Warrants | Warrants | Exercise | |||||
Price | |||||||
Beginning balance at December 31, 2012 | — | $ | — | ||||
Add: Issued | 2,500,000 | $ | 0.15 | ||||
Less: Canceled warrants | (2,500,000 | ) | 0.15 | ||||
Ending balance at September 30, 2013 | — | $ | — |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
December 31, | Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||
Description | 2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Convertible notes | $ | 8,098,000 | $ | — | $ | — | $ | 8,098,000 | |||||||||||||||||||||||||||
Warrant liabilities | $ | 3,800,000 | $ | — | $ | — | $ | 3,800,000 | |||||||||||||||||||||||||||
Total Liabilities | $ | 11,898,000 | $ | — | $ | — | $ | 11,898,000 | |||||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||||||||||||
Quoted | |||||||||||||||||||||||||||||||||||
Prices | |||||||||||||||||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||||||||||||||||
Balance as of | Identical | Observable | Unobservable | ||||||||||||||||||||||||||||||||
September 30, | Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||
Description | 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Convertible notes | $ | 5,793,000 | $ | — | $ | — | $ | 5,793,000 | |||||||||||||||||||||||||||
Warrant liabilities | $ | 6,452,000 | $ | — | $ | — | $ | 6,452,000 | |||||||||||||||||||||||||||
Total Liabilities | $ | 12,245,000 | $ | — | $ | — | $ | 12,245,000 | |||||||||||||||||||||||||||
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 | Fair Value of | Fair Value of | Fair Value of | Fair Value of | Fair Value of | February | February | September | September | Total | |||||||||||||||||||||||||
of 2011 | 2011 | 2012 | 2012 | Third | Third | 2013 | 2013 SPA | 2013 | 2013 SPA | ||||||||||||||||||||||||||
Convertible | Warrant | Convertible | Warrant | Tranche | Tranche | Warrants | Option | Warrants | Options | ||||||||||||||||||||||||||
Notes | Liabilities | Notes | Liabilities | Convertible | Warrant | ||||||||||||||||||||||||||||||
Notes | Liabilities | ||||||||||||||||||||||||||||||||||
Balance December 31, 2011 | $ | 5,327,000 | $ | 1,600,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,927,000 | |||||||||||||
Amortization of debt discount | $ | 198,000 | $ | — | $ | 17,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 215,000 | |||||||||||||
Allocation of initial proceeds | $ | — | $ | — | $ | 417,000 | $ | 583,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,000,000 | |||||||||||||
Fair value adjustment | $ | 2,715,000 | $ | 1,600,000 | $ | 1,502,000 | $ | 1,917,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 7,734,000 | |||||||||||||
Balance September 30, 2012 | $ | 8,240,000 | $ | 3,200,000 | $ | 1,936,000 | $ | 2,500,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 15,876,000 | |||||||||||||
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 | |||||||||||||
Fair value adjustment | $ | (2,041,000 | ) | $ | (716,000 | ) | $ | (536,000 | ) | $ | (970,000 | ) | $ | (136,000 | ) | $ | — | $ | (742,000 | ) | $ | (807,000 | ) | $ | — | $ | — | $ | (5,948,000 | ) | |||||
Carrying value of old debt at modification | $ | (3,450,000 | ) | $ | — | $ | (980,000 | ) | $ | — | $ | (250,000 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (4,680,000 | ) | |||||||||
Fair value of new debt at modification | $ | 4,920,000 | $ | — | $ | 1,390,000 | $ | — | $ | 361,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,671,000 | |||||||||||||
Conversion of debentures and warrants | $ | (579,000 | ) | $ | (2,152,000 | ) | $ | — | $ | (238,000 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2,969,000 | ) | |||||||||
Fair value of instruments at issuance | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,807,000 | $ | 1,166,000 | $ | 2,973,000 | |||||||||||||
September 18, 2013 | $ | 4,920,000 | $ | 1,048,000 | $ | 1,390,000 | $ | 424,000 | $ | 361,000 | $ | — | $ | 2,017,000 | $ | 404,000 | $ | 1,807,000 | $ | 1,166,000 | $ | 13,537,000 | |||||||||||||
Conversion of debentures and warrants | $ | (304,000 | ) | $ | (265,000 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (569,000 | ) | ||||||||||
Fair value adjustment | $ | (426,000 | ) | $ | (245,000 | ) | $ | (100,000 | ) | $ | (141,000 | ) | $ | (48,000 | ) | $ | — | $ | 1,165,000 | $ | (404,000 | ) | $ | (233,000 | ) | $ | (291,000 | ) | $ | (723,000 | ) | ||||
September 30, 2013 | $ | 4,190,000 | $ | 538,000 | $ | 1,290,000 | $ | 283,000 | $ | 313,000 | $ | — | $ | 3,182,000 | $ | — | $ | 1,574,000 | $ | 875,000 | $ | 12,245,000 | |||||||||||||
2011 Convertible Notes | Binomial lattice model | ' | ||||||||||||||||||||||||||||||||||
Convertible Notes and Warrant Liabilities | ' | ||||||||||||||||||||||||||||||||||
Schedule of key inputs required to estimate fair value | ' | ||||||||||||||||||||||||||||||||||
Input | December 31, | February 22, | September 18 | September 30, | |||||||||||||||||||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||
Strike Price | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||
Expected remaining term (in years) | 1.15 | 2.35 | 1.78 | 1.75 | |||||||||||||||||||||||||||||||
Stock Volatility | 105 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||
Risk-Free Rate | 0.17 | % | 0.32 | % | 0.38 | % | 0.27 | % | |||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 143,997,066 | 160,666,475 | |||||||||||||||||||||||||||||||
Effective discount rate | 13.1 | % | 13.2 | % | 16.4 | % | 16.4 | % | |||||||||||||||||||||||||||
Probability of forced redemption | 20 | % | 20 | % | 20 | % | 20 | % | |||||||||||||||||||||||||||
2012 Convertible Notes | Binomial lattice model | ' | ||||||||||||||||||||||||||||||||||
Convertible Notes and Warrant Liabilities | ' | ||||||||||||||||||||||||||||||||||
Schedule of key inputs required to estimate fair value | ' | ||||||||||||||||||||||||||||||||||
Input | December 31, | February 22, | September 18 | September 30, | |||||||||||||||||||||||||||||||
2012 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||
Exercise Price | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||
Expected remaining term (in years) | 2.5 | 2.35 | 1.79 | 1.75 | |||||||||||||||||||||||||||||||
Stock Volatility | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||
Risk-Free Rate | 0.31 | % | 0.32 | % | 0.38 | % | 0.26 | % | |||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 143,997,066 | 160,666,475 | |||||||||||||||||||||||||||||||
Effective discount rate | 13.2 | % | 13.2 | % | 16.4 | % | 16.4 | % | |||||||||||||||||||||||||||
Probability of forced redemption | 20 | % | 20 | % | 20 | % | 20 | % | |||||||||||||||||||||||||||
Third Tranche Convertible Notes | Binomial lattice model | ' | ||||||||||||||||||||||||||||||||||
Convertible Notes and Warrant Liabilities | ' | ||||||||||||||||||||||||||||||||||
Schedule of key inputs required to estimate fair value | ' | ||||||||||||||||||||||||||||||||||
Input | January 16, | February 22, | September 18 | September 30, | |||||||||||||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||
Exercise Price | $ | 0.1 | $ | 0.1 | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||
Expected remaining term (in years) | 3 | 2.9 | 2.33 | 2.3 | |||||||||||||||||||||||||||||||
Stock Volatility | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||
Risk-Free Rate | 0.36 | % | 0.39 | % | 0.56 | % | 0.42 | % | |||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 143,997,066 | 160,666,475 | |||||||||||||||||||||||||||||||
Effective discount rate | 13.2 | % | 13.2 | % | 13.3 | % | 13.3 | % | |||||||||||||||||||||||||||
Probability of forced redemption | 20 | % | 20 | % | 20 | % | 20 | % | |||||||||||||||||||||||||||
February 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, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price | $ | 0.14 | $ | 0.065 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.15 | $ | 0.015 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 0.75 | 0.142 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 0.15 | % | 0.03 | % | |||||||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | |||||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 73,042,764 | 160,666,475 | |||||||||||||||||||||||||||||||||
February 2013 SPA Option | Monte Carlo simulation model | ' | ||||||||||||||||||||||||||||||||||
Convertible Notes and Warrant Liabilities | ' | ||||||||||||||||||||||||||||||||||
Schedule of key inputs required to estimate fair value | ' | ||||||||||||||||||||||||||||||||||
Input | February 22, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price (simulated) | $ | 0.1 | $ | 0.065 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.2 | $ | 0.2 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 5 | 0.142 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 1.158 | % | 1.475 | % | |||||||||||||||||||||||||||||||
Number of Steps | 10,000 | 10,000 | |||||||||||||||||||||||||||||||||
September 2013 SPA Option | Black-Scholes-Merton option-pricing model | ' | ||||||||||||||||||||||||||||||||||
Convertible Notes and Warrant Liabilities | ' | ||||||||||||||||||||||||||||||||||
Schedule of key inputs required to estimate fair value | ' | ||||||||||||||||||||||||||||||||||
Input | September 18, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 0.748 | 0.715 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 0.07 | % | 0.07 | % | |||||||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | |||||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 143,997,066 | 160,666,475 | |||||||||||||||||||||||||||||||||
September 2013 SPA Option | Monte Carlo simulation model | ' | ||||||||||||||||||||||||||||||||||
Convertible Notes and Warrant Liabilities | ' | ||||||||||||||||||||||||||||||||||
Schedule of key inputs required to estimate fair value | ' | ||||||||||||||||||||||||||||||||||
Input | September 18, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price (simulated) | $ | 0.075 | $ | 0.065 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.06 | $ | 0.06 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 0.748 | 0.715 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 0.07 | % | 0.07 | % | |||||||||||||||||||||||||||||||
Number of Steps | 10,000 | 10,000 | |||||||||||||||||||||||||||||||||
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, | February 22, | September 30, | ||||||||||||||||||||||||||||||||
2012 | 2013 | 2013 | |||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.065 | |||||||||||||||||||||||||||||
Exercise Price | $ | 0.15 | $ | 0.15 | $ | 0.098 | |||||||||||||||||||||||||||||
Expected Life (in years) | 3.15 | 3 | 2.4 | ||||||||||||||||||||||||||||||||
Stock Volatility | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||
Risk-Free Rate | 0.39 | % | 0.4 | % | 0.24 | % | |||||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 160,666,475 | ||||||||||||||||||||||||||||||||
2012 Warrants - $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, | February 22, | September 30, | ||||||||||||||||||||||||||||||||
2012 | 2013 | 2013 | |||||||||||||||||||||||||||||||||
Stock Price | $ | 0.15 | $ | 0.14 | $ | 0.065 | |||||||||||||||||||||||||||||
Exercise Price | $ | 0.15 | $ | 0.15 | $ | 0.0098 | |||||||||||||||||||||||||||||
Expected Life (in years) | 4.5 | 4.38 | 3.76 | ||||||||||||||||||||||||||||||||
Stock Volatility | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||
Risk-Free Rate | 0.63 | % | 0.7 | % | 0.92 | % | |||||||||||||||||||||||||||||
Dividend Rate | 0 | % | 0 | % | 0 | % | |||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 32,434,430 | 59,576,097 | 160,666,475 | ||||||||||||||||||||||||||||||||
2012 Warrants - $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) | 4.5 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
February 2013 Warrants | Monte Carlo simulation model | ' | ||||||||||||||||||||||||||||||||||
Convertible Notes and Warrant Liabilities | ' | ||||||||||||||||||||||||||||||||||
Schedule of key inputs required to estimate fair value | ' | ||||||||||||||||||||||||||||||||||
Input | February 22, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price | $ | 0.12 | $ | 0.058 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.2 | $ | 0.08 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 5 | 4.4 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 0.84 | % | 1.16 | % | |||||||||||||||||||||||||||||||
Number of Steps | 100,000 | 100,000 | |||||||||||||||||||||||||||||||||
Outstanding Shares of Common Stock | 59,576,097 | 160,666,475 | |||||||||||||||||||||||||||||||||
September 2013 Warrants | Monte Carlo simulation model | ' | ||||||||||||||||||||||||||||||||||
Convertible Notes and Warrant Liabilities | ' | ||||||||||||||||||||||||||||||||||
Schedule of key inputs required to estimate fair value | ' | ||||||||||||||||||||||||||||||||||
Input | September 18, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||||
Stock Price | $ | 0.071 | $ | 0.062 | |||||||||||||||||||||||||||||||
Exercise Price | $ | 0.08 | $ | 0.08 | |||||||||||||||||||||||||||||||
Expected Life (in years) | 5 | 4.97 | |||||||||||||||||||||||||||||||||
Stock Volatility | 110 | % | 110 | % | |||||||||||||||||||||||||||||||
Risk-Free Rate | 1.43 | % | 1.38 | % | |||||||||||||||||||||||||||||||
Number of Steps | 100,000 | 100,000 |
Commitments_Tables
Commitments (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments | ' | ||||
Schedule of estimated future minimum lease payments | ' | ||||
As of September 30, 2013, future minimum lease payments are estimated to be as follows (in thousands): | |||||
Year | Future Minimum | ||||
Lease Payments | |||||
2013 | $ | 11 | |||
2014 | 30 | ||||
Total | $ | 41 |
Business_and_Liquidity_Details
Business and Liquidity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | ||||||||
Business and Liquidity | ' | ' | ' | ' | ' | ' | ' | ' |
Period since the entity has begun commercialization outside the United States of its newest product, RenalGuard | ' | ' | ' | ' | '5 years | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | 1 | ' | ' | ' |
Loss from operations | ' | ' | ($1,270,000) | ($1,095,000) | ($3,625,000) | ($3,230,000) | ' | ' |
Cash used in operations | ' | ' | ' | ' | 4,190,000 | 2,564,000 | ' | ' |
Cash and cash equivalents | 1,404,000 | ' | 1,404,000 | 723,000 | 1,404,000 | 723,000 | 258,000 | 2,585,000 |
Additional capital | $1,750,000 | $4,040,000 | ' | ' | ' | ' | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $145 | $143 |
Finished goods | ' | 39 |
Total | $145 | $182 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Restricted common stock | Restricted common stock | Restricted common stock | Restricted common stock | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2013 Plan | 2013 Plan | 2013 Plan | Stock Purchase Plan | Stock Purchase Plan | Stock Purchase Plan | Stock Purchase Plan | |
Low end of range | Low end of range | High end of range | High end of range | Non-employee directors | Chairman of the Board | Stock options | Stock options | Stock options | Stock options | Stock options | Non-qualified stock options | Stock options with performance-based vesting | Restricted common stock | Restricted common stock | Stock options | Stock options | Non-qualified stock options | ||||||||||||||
item | item | Non-employee directors | Non-employee directors | Employees | Employees | Low end of range | Employees | Garden State and JFS | Garden State and JFS | Low end of range | |||||||||||||||||||||
Stock Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise or purchase price relative to market values (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | 85.00% | ' | ' | 95.00% | ' |
Shares reserved for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,382,600 | ' | 294,461 | ' | 294,461 | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual grant (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equal quarterly installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '1 year | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued in exchange for certain investor relations and relating consulting services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 416,668 | 2,083,338 | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | $76,000 | $12,000 | $102,000 | $65,000 | ' | ' | ' | ' | ' | ' | ' | $0 | $123,000 | $56,000 | $368,000 | ' | ' | ' | ' | ' | ' | ' | $56,250 | ' | ' | ' | ' | ' | ' | ' | ' |
Period for which shares are restricted from being sold from the date of issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares for further issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock available to be granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,819,000 | ' | ' | ' | ' | ' | ' | ' | ' | 5,743,000 | ' | ' | ' | ' | ' | ' |
Number of Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 5,592,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 5,639,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 589,000 | 112,500 | 5,050,000 | 355,000 | ' | 565,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in shares) | ' | ' | -502,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -502,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | -643,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | 10,086,000 | ' | 10,086,000 | ' | 5,592,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | 5,528,000 | ' | 5,528,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | $0.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in dollars per share) | ' | ' | $0.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | $0.15 | ' | $0.15 | ' | $0.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | $0.20 | ' | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average Remaining Contractual Life (Years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of a period, Average Remaining Contractual Life | ' | ' | '6 years 1 month 6 days | ' | '3 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of a period, Average Remaining Contractual Life | ' | ' | '2 years 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of a period, Aggregate Intrinsic Value | 0 | ' | 0 | ' | 6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of a period, Aggregate Intrinsic Value | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to unvested options | $401,000 | ' | $401,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period for recognition of unrecognized compensation cost | ' | ' | '1 year 11 months 5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of intervals for purchase of shares of common stock by all eligible employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' |
Maximum value of shares as a percent of gross compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | 10.00% | ' |
Activity in period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 |
Weighted average fair value of options issued (in dollars per share) | ' | ' | $0.08 | $0.16 | ' | $0.07 | $0.12 | $0.09 | $0.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumptions used | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life | ' | ' | ' | ' | ' | '3 years | '5 years | '6 years | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free rate, minimum (as a percent) | ' | ' | ' | ' | ' | 0.73% | 0.19% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free rate, maximum (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.67% | 0.69% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility, minimum (as a percent) | ' | ' | ' | ' | ' | 195.75% | 204.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility, maximum (as a percent) | ' | ' | ' | ' | ' | ' | ' | 217.52% | 216.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | ' | ' | 0.00% | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of options granted (in dollars per share) | ' | ' | $0.08 | $0.16 | ' | $0.07 | $0.12 | $0.09 | $0.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue_Recognition_Details
Revenue Recognition (Details) (Artech, USD $) | Sep. 30, 2013 |
Artech | ' |
Deferred revenue | ' |
Deferred revenue | $13,000 |
Loss_per_Share_Details
Loss per Share (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Loss per Share | ' | ' |
Anti-dilutive securities excluded from the calculation of diluted earnings per share (in shares) | 248,336,287 | 248,336,287 |
Total_Comprehensive_Income_Los1
Total Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Total Comprehensive Income (Loss) | ' | ' | ' | ' |
Total Comprehensive loss | ($618) | ($3,163) | ($472) | ($11,405) |
Warranty_and_Preventative_Main1
Warranty and Preventative Maintenance Costs (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Warranty and Preventative Maintenance Costs | ' | ' |
Reserve for warranty and preventative maintenance costs | $0 | $0 |
Sale_of_Common_Stock_Details
Sale of Common Stock (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||
Sep. 30, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Sep. 18, 2013 | Sep. 18, 2013 | Sep. 18, 2013 | Sep. 18, 2013 | Sep. 18, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | |
September 2013 Warrants | September 2013 Warrants | September 2013 Warrants | September 2013 SPA Option | September 2013 SPA Option | September 2013 SPA Option | September 2013 SPA | September 2013 SPA | September 2013 SPA | September 2013 SPA | September 2013 SPA | September 2013 Right to Shares Agreement | September 2013 Right to Shares Agreement | ||||||||
September 2013 Investor Warrants | September 2013 Placement Agent Warrants | September 2013 Warrants | September 2013 SPA Option | item | ||||||||||||||||
High end of range | ||||||||||||||||||||
Sale of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock sold | 125,000,000 | ' | 125,000,000 | ' | 125,000,000 | ' | 32,434,000 | ' | ' | ' | ' | ' | ' | 29,166,668 | ' | ' | ' | ' | ' | ' |
Common stock issuable under warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,166,668 | 1,485,333 | ' | ' | ' | ' |
Gross proceeds from sale of common stock | $1,750,000 | $4,040,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,750,000 | ' | ' | ' | ' | ' |
Net proceeds from sale of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,575,329 | ' | ' | ' | ' | ' |
Term to hold share purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' |
Number of investors entered into agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Common stock, shares unissued | 37,538,000 | ' | 37,538,000 | ' | 37,538,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,666,667 | ' |
Rights to purchase common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,666,667 | ' |
Additional consideration paid upon the issuance of the shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Period for obligation to deliver shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 days | ' |
Common stock, shares reserved but unissued | 37,538,000 | ' | 37,538,000 | ' | 37,538,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,666,667 |
Portion of shares of common stock and warrants available for same per share purchase price (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | ' | ' |
Number of common stocks purchased under the option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants exercised | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,625,001 | ' | ' | 14,583,334 | ' | ' | ' | ' | ' | ' | ' |
Ending balance (in shares) | ' | ' | ' | ' | ' | ' | ' | 30,625,001 | 30,625,001 | 30,625,001 | 14,583,334 | 14,583,334 | 14,583,334 | ' | ' | ' | ' | ' | ' | ' |
Term of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Number of shares exercisable under warrants issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,625,001 | ' | ' | ' |
Exercise price of warrants (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.08 | $0.08 | $0.08 | $0.06 | $0.06 | $0.06 | ' | ' | ' | $0.08 | ' | ' | ' |
Period for presenting effective registration statement for avoiding cashless exercise of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' |
Limitation of beneficial ownership of common stock for exercise of warrants (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.99% | ' | ' | ' |
Discretionary increase in limitation of beneficial ownership of common stock for exercise of warrants (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.99% | ' | ' | ' |
Notice period for discretionary increase in limitation of beneficial ownership of common stock for exercise of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '61 days | ' | ' | ' |
Grant date fair value | ' | ' | ' | ' | ' | ' | ' | 1,807,000 | 1,807,000 | ' | 1,166,000 | 1,166,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivative liability | ' | ' | ' | ' | ' | ' | ' | 1,574,000 | 1,574,000 | ' | 875,000 | 875,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Impact to other income (expense) | ' | ' | $1,078,000 | ($1,117,000) | $3,192,000 | ($3,517,000) | ' | ' | $233,000 | ' | ' | $291,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale_of_Common_Stock_Details_2
Sale of Common Stock (Details 2) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||
Sep. 30, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Sep. 18, 2013 | Feb. 22, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Feb. 22, 2013 | Feb. 22, 2013 | Feb. 22, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | |
February 2013 Warrants | February 2013 Warrants | February 2013 Warrants | February 2013 Warrants | February 2013 Warrants | February 2013 SPA Option | February 2013 SPA Option | February 2013 SPA Option | February 2013 SPA Option | February 2013 SPA | February 2013 SPA | February 2013 SPA | February 2013 SPA | February 2013 SPA | February 2013 SPA | February 2013 SPA | February 2013 SPA | February 2013 Right to Shares Agreement | February 2013 Right to Shares Agreement | ||||||||
February 2013 Warrants | February 2013 Investor Warrants | February 2013 Placement Agent Warrants | February 2013 SPA Option | item | ||||||||||||||||||||||
High end of range | ||||||||||||||||||||||||||
Sale of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock sold | 125,000,000 | ' | 125,000,000 | ' | 125,000,000 | ' | 32,434,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,933,333 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, share price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issuable under warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,933,333 | 1,885,333 | ' | ' | ' |
Gross proceeds from sale of common stock | $1,750,000 | $4,040,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,040,000 | ' | ' | ' | ' |
Net proceeds from sale of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,504,000 | ' | ' | ' | ' |
Term to hold share purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investors entered into agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Common stock, shares unissued | 37,538,000 | ' | 37,538,000 | ' | 37,538,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' |
Rights to purchase common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' |
Additional consideration paid upon the issuance of the shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Period for obligation to deliver shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 days | ' |
Common stock, shares reserved but unissued | 37,538,000 | ' | 37,538,000 | ' | 37,538,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 |
Portion of shares of common stock and warrants available for same per share purchase price (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | ' | ' |
Additional shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,400,001 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares and warrants purchased under the option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,818,666 | ' | ' | ' | 13,466,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Add: Adjustments for anti-dilution (in shares) | ' | ' | ' | ' | ' | ' | ' | 43,228,001 | ' | 43,228,001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 72,046,667 | 72,046,667 | 72,046,667 | ' | 13,466,667 | 13,466,667 | 13,466,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' |
Number of shares exercisable under warrants issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,818,666 | ' | ' | ' | ' | ' |
Exercise price of warrants (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.08 | $0.08 | $0.08 | $0.08 | $0.20 | $0.15 | $0.15 | $0.15 | $0.15 | ' | ' | ' | ' | $0.20 | ' | ' | ' | ' | ' |
Exercise price for adjustments (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.08 | ' | ' | ' | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted exercise price of warrants (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for presenting effective registration statement for avoiding cashless exercise of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' |
Limitation of beneficial ownership of common stock for exercise of warrants (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.99% | ' | ' | ' | ' | ' |
Discretionary increase in limitation of beneficial ownership of common stock for exercise of warrants (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.99% | ' | ' | ' | ' | ' |
Notice period for discretionary increase in limitation of beneficial ownership of common stock for exercise of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '61 days | ' | ' | ' | ' | ' |
Grant date fair value | ' | ' | ' | ' | ' | ' | ' | ' | 2,759,000 | 2,759,000 | 2,759,000 | ' | 1,211,000 | 1,211,000 | 1,211,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivative liability | ' | ' | ' | ' | ' | ' | ' | ' | 3,182,000 | 3,182,000 | 3,182,000 | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact to other income (expense) | ' | ' | 1,078,000 | -1,117,000 | 3,192,000 | -3,517,000 | ' | ' | -1,165,000 | ' | -423,000 | ' | 404,000 | ' | 1,211,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds received to be used for investor relations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Payments made for investor relations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount released from escrow account to investor relations firm | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000 | $250,000 | ' | ' | ' | ' | ' | ' |
Amortization period of investor relations payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible_Notes_and_Warrants2
Convertible Notes and Warrants (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 22, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Feb. 20, 2013 | Feb. 22, 2013 | Sep. 18, 2013 | Feb. 22, 2013 | Feb. 22, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 02, 2012 | Sep. 30, 2013 | Feb. 22, 2013 | Jul. 02, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 02, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 22, 2013 | Jan. 16, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 22, 2011 | Sep. 30, 2013 | Jul. 02, 2012 | Jan. 16, 2013 | |
2011 Securities Purchase Agreement | February 2013 Amendment and Waiver Agreement | September 2013 Amendment and Waiver Agreement | September 2013 Amendment and Waiver Agreement | 2011 and 2012 Warrants | 2011 and 2012 Warrants | 2011 and 2012 Warrants | 2011 Warrants | 2011 Warrants | 2011 Warrants | 2011 Warrants | 2011 Warrants | 2012 Warrants | 2012 Warrants | 2012 Warrants - $0.15 Warrants | 2012 Warrants - $0.15 Warrants | 2012 Warrants - $0.15 Warrants | 2012 Warrants - $0.15 Warrants | 2012 Warrants - $0.25 Warrants | 2012 Warrants - $0.25 Warrants | 2012 Warrants - $0.25 Warrants | Third Tranche Warrants | Third Tranche Warrants | Third Tranche Warrants | 2011 Convertible Notes | 2011 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | Third Tranche Convertible Notes | ||||
item | 2011 Securities Purchase Agreement | February 2013 Amendment and Waiver Agreement | September 2013 Amendment and Waiver Agreement | |||||||||||||||||||||||||||||
Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | 5.00% |
Amount of additional secured convertible debt that may be secured in tranche | ' | ' | ' | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of tranches | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of additional debt funding available in each separate tranche | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | 1,000,000 | 250,000 |
Period considered in a year for calculation of interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '360 days | ' | ' | ' | ' |
Number of securities called by outstanding warrants returned to the Company for forfeiture (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of debentures subject to relinquishment of right to purchase | ' | ' | ' | ' | ' | ' | ' | ' | 750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price (in dollars per share) | ' | ' | ' | ' | ' | ' | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.06 | ' | $0.06 | ' | $0.06 |
Percentage of outstanding principal redeemed under a change of control | ' | 130.00% | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' |
Percentage of accrued and unpaid interest | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Canceled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -40,000,000 | ' | ' | ' | ' | ' | -10,000,000 | ' | ' | -10,000,000 | ' | -2,500,000 | ' | -2,500,000 | ' | ' | ' | ' | ' |
Add: Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,263,156 | 40,000,000 | ' | 65,263,156 | ' | 20,000,000 | ' | 16,315,790 | 10,000,000 | 16,315,790 | ' | 10,000,000 | ' | ' | ' | 2,500,000 | 2,500,000 | ' | ' | ' | ' | ' |
Less: Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,236,853 | -47,322,376 | ' | ' | -9,250,535 | ' | ' | -9,250,535 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,940,780 | 17,940,780 | ' | ' | ' | ' | ' | 7,065,255 | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' |
Exercise price of warrants (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | $0.10 | $0.15 | $0.10 | $0.10 | $0.15 | ' | ' | $0.10 | $0.15 | $0.10 | $0.15 | $0.25 | ' | $0.25 | ' | $0.15 | ' | ' | ' | ' | ' | ' |
Volume Weighted Average Price (VWAP price) (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.16 | $0.37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants cancelled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' | ' | ' | ' | ' | $0.15 | ' | ' | $0.25 | ' | ' | ' | $0.15 | ' | ' | ' | ' | ' |
Exercise price of warrants issued (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | $0.15 | ' | ' | ' | ' | ' |
Exercise price of warrants exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares exercisable under warrants issued | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | 81,578,946 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price as a percentage of exercise price of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued on conversion of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,913,000 | 19,608,926 | ' | ' | 3,401,809 | ' | ' | 3,401,809 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Percentage of change in the present value of the cash flows of the convertible notes and associated warrants, minimum | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on the extinguishment of debt | $1,991,000 | $3,274,000 | ' | ' | $1,283,000 | $1,991,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible_Notes_and_Warrants3
Convertible Notes and Warrants (Details 2) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||
Jan. 16, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 18, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Feb. 22, 2013 | Jan. 16, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 18, 2013 | Feb. 22, 2013 | Feb. 22, 2011 | Feb. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 18, 2013 | Jan. 16, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | ||||||||||
February 2013 Amendment and Waiver Agreement | |||||||||||||||||||||||||||||
Convertible Notes and Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of initial proceeds | $250,000 | ' | ' | ' | ' | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,208,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt discount to be amortized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 792,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of debt discount | ' | 95,000 | ' | ' | 158,000 | 215,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000 | ' | 38,000 | ' | 67,000 | ' | 198,000 | ' | ' | ' | ' |
Impact to other income (expense) | ' | ' | 1,620,000 | -757,000 | 3,485,000 | -4,218,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,227,000 | 747,000 | 1,475,000 | -2,715,000 | ' | ' | ' | ' |
Total Liabilities | 12,592,000 | 17,490,000 | 12,245,000 | 15,876,000 | 12,245,000 | 15,876,000 | 13,537,000 | 11,898,000 | 6,927,000 | 538,000 | 538,000 | 1,048,000 | 3,916,000 | 2,000,000 | 2,000,000 | 3,200,000 | 1,600,000 | 538,000 | 6,070,000 | ' | 6,070,000 | 4,190,000 | 8,240,000 | 4,190,000 | 8,240,000 | 4,920,000 | 6,510,000 | 6,510,000 | 5,327,000 |
Impact to other income (expense) | ' | ' | 1,078,000 | -1,117,000 | 3,192,000 | -3,517,000 | ' | ' | ' | 857,000 | -955,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of debt discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 265,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2011 Convertible Notes converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 456,000 | ' | 756,000 | ' | ' | ' | ' | ' |
Shares issued on conversion of 2011 Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,427,000 | ' | 9,427,000 | ' | ' | ' | ' | ' |
Amount of shares issued on conversion of 2011 Convertible Notes | ' | ' | ' | ' | 883,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 433,000 | ' | 833,000 | ' | ' | ' | ' | ' |
Warrants exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,236,853 | 47,322,376 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued on conversion of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,913,000 | 19,608,926 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cashless exercise of warrants | ' | ' | ' | ' | $2,655,000 | ' | ' | ' | ' | $652,000 | $2,405,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible_Notes_and_Warrants4
Convertible Notes and Warrants (Details 3) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||
Jan. 16, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 18, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 18, 2013 | Feb. 22, 2013 | Jan. 16, 2013 | Dec. 31, 2012 | Jul. 02, 2012 | Feb. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 18, 2013 | Jan. 16, 2013 | Dec. 31, 2012 | |
2012 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | ||||||||||
Convertible Notes and Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of initial proceeds | $250,000 | ' | ' | ' | ' | $1,000,000 | ' | ' | ' | ' | ' | $583,000 | ' | ' | ' | ' | $417,000 | ' | ' | ' | ' | $417,000 | ' | ' | ' |
Debt discount to be amortized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 583,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of debt discount | ' | 95,000 | ' | ' | 158,000 | 215,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000 | ' | 17,000 | ' | 17,000 | ' | ' | ' |
Total Liabilities | 12,592,000 | 17,490,000 | 12,245,000 | 15,876,000 | 12,245,000 | 15,876,000 | 13,537,000 | 11,898,000 | 6,927,000 | 283,000 | 283,000 | 2,500,000 | 424,000 | 1,632,000 | 1,800,000 | 1,800,000 | ' | 1,516,000 | 1,290,000 | 1,936,000 | 1,290,000 | 1,936,000 | 1,390,000 | 1,588,000 | 1,588,000 |
Impact to other income (expense) | ' | ' | 1,620,000 | -757,000 | 3,485,000 | -4,218,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -110,000 | -1,502,000 | 353,000 | -1,502,000 | ' | ' | ' |
Impact to other income (expense) | ' | ' | 1,078,000 | -1,117,000 | 3,192,000 | -3,517,000 | ' | ' | ' | 458,000 | 1,279,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,250,535 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued on conversion of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,401,809 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cashless exercise of warrants | ' | ' | ' | ' | $2,655,000 | ' | ' | ' | ' | $238,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible_Notes_and_Warrants5
Convertible Notes and Warrants (Details 4) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Jan. 16, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 18, 2013 | Feb. 22, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 16, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 16, 2013 | Jan. 16, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Feb. 22, 2013 | |
Third Tranche Warrant Liabilities | Third Tranche Warrant Liabilities | Third Tranche Warrant Liabilities | Third Tranche Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | ||||||||||
Convertible Notes and Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of initial proceeds | $250,000 | ' | ' | ' | $1,000,000 | ' | ' | ' | ' | $108,000 | ' | ' | $142,000 | $142,000 | ' | ' | ' | ' |
Total Liabilities | 12,592,000 | 12,245,000 | 15,876,000 | 12,245,000 | 15,876,000 | 13,537,000 | 17,490,000 | 11,898,000 | 6,927,000 | 300,000 | ' | ' | 394,000 | 394,000 | 313,000 | 313,000 | 361,000 | 386,000 |
Debt discount to be amortized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108,000 | 108,000 | ' | ' | ' | ' |
Impact to other income (expense) | ' | 1,620,000 | -757,000 | 3,485,000 | -4,218,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,000 | 83,000 | ' | ' |
Impact to other income (expense) | ' | $1,078,000 | ($1,117,000) | $3,192,000 | ($3,517,000) | ' | ' | ' | ' | ' | $0 | $108,000 | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Sep. 18, 2013 | Feb. 22, 2013 | Jan. 16, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Assets and liabilities measured at fair value | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes | $5,793,000 | ' | ' | ' | $8,098,000 | ' | ' |
Total Liabilities | 12,245,000 | 13,537,000 | 17,490,000 | 12,592,000 | 11,898,000 | 15,876,000 | 6,927,000 |
Balance | ' | ' | ' | ' | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes | 5,793,000 | ' | ' | ' | 8,098,000 | ' | ' |
Warrant liabilities | 6,452,000 | ' | ' | ' | 3,800,000 | ' | ' |
Total Liabilities | 12,245,000 | ' | ' | ' | 11,898,000 | ' | ' |
Significant Unobservable Inputs (Level 3) | ' | ' | ' | ' | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes | 5,793,000 | ' | ' | ' | 8,098,000 | ' | ' |
Warrant liabilities | 6,452,000 | ' | ' | ' | 3,800,000 | ' | ' |
Total Liabilities | $12,245,000 | ' | ' | ' | $11,898,000 | ' | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 0 Months Ended | 1 Months Ended | 7 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 7 Months Ended | 0 Months Ended | 7 Months Ended | 0 Months Ended | 1 Months Ended | 7 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 7 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 7 Months Ended | 0 Months Ended | 7 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 7 Months Ended | |||||||||||
Sep. 30, 2013 | Jan. 16, 2013 | Feb. 22, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 22, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Sep. 18, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Feb. 22, 2013 | Sep. 18, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 16, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Feb. 22, 2011 | Feb. 22, 2013 | Sep. 30, 2012 | Sep. 18, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jul. 02, 2012 | Feb. 22, 2013 | Sep. 30, 2012 | Sep. 18, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jan. 16, 2013 | Jan. 16, 2013 | Feb. 22, 2013 | Sep. 18, 2013 | |
February 2013 SPA Option | February 2013 SPA Option | February 2013 SPA Option | September 2013 SPA Option | September 2013 SPA Option | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2011 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Warrant Liabilities | 2012 Warrant Liabilities | Third Tranche Warrant Liabilities | Third Tranche Warrant Liabilities | February 2013 Warrants | February 2013 Warrants | February 2013 Warrants | September 2013 Warrants | September 2013 Warrants | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | |||||||
Changes in the Convertible Notes and Investor Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of liabilities at the beginning of the period | $13,537,000 | $11,898,000 | $12,592,000 | $17,490,000 | $11,898,000 | $6,927,000 | $404,000 | ' | $1,211,000 | $1,166,000 | ' | $1,048,000 | $2,000,000 | $3,916,000 | $1,600,000 | $2,000,000 | $424,000 | $1,800,000 | $1,632,000 | ' | $1,800,000 | ' | $300,000 | $2,017,000 | ' | $2,759,000 | $1,807,000 | ' | $4,920,000 | ' | ' | $6,510,000 | ' | $6,070,000 | $5,327,000 | $6,510,000 | $1,390,000 | ' | $1,588,000 | ' | $1,516,000 | ' | $1,588,000 | $361,000 | ' | ' | $394,000 | $386,000 |
Amortization of debt discount | ' | ' | 95,000 | ' | 158,000 | 215,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000 | ' | 38,000 | 67,000 | ' | 198,000 | ' | ' | ' | 55,000 | 17,000 | ' | 17,000 | ' | ' | ' | ' | 2,000 | ' |
Allocation of initial proceeds | ' | 250,000 | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 583,000 | ' | 108,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,208,000 | ' | ' | ' | ' | ' | ' | 417,000 | ' | ' | ' | 417,000 | ' | ' | 142,000 | 142,000 | ' | ' |
Modification of warrants | ' | ' | 2,548,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,916,000 | ' | ' | ' | ' | 632,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of debentures and warrants | -569,000 | ' | ' | -2,969,000 | ' | ' | ' | ' | ' | ' | ' | -265,000 | ' | -2,152,000 | ' | ' | ' | ' | -238,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -304,000 | ' | ' | ' | ' | -579,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial fair value adjustment/Fair value adjustment | -723,000 | 444,000 | -450,000 | -5,948,000 | ' | 7,734,000 | -404,000 | ' | -807,000 | -291,000 | ' | -245,000 | ' | -716,000 | 1,600,000 | ' | -141,000 | ' | -970,000 | 1,917,000 | ' | 192,000 | ' | 1,165,000 | ' | -742,000 | -233,000 | ' | -426,000 | ' | ' | -370,000 | ' | -2,041,000 | 2,715,000 | ' | -100,000 | ' | -72,000 | ' | -536,000 | 1,502,000 | ' | -48,000 | ' | 252,000 | -8,000 | -136,000 |
Carrying value of old debt at modification | ' | ' | -8,137,000 | -4,680,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,178,000 | ' | -3,450,000 | ' | ' | ' | ' | -1,571,000 | ' | -980,000 | ' | ' | ' | ' | ' | -388,000 | -250,000 |
Fair value of new debt at modification | ' | ' | 7,972,000 | 6,671,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,070,000 | ' | 4,920,000 | ' | ' | ' | ' | 1,516,000 | ' | 1,390,000 | ' | ' | ' | ' | ' | 386,000 | 361,000 |
Cancellation/retirement of warrants | ' | ' | -1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -800,000 | ' | ' | ' | ' | -300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of instruments at issuance | ' | ' | 3,970,000 | 2,973,000 | ' | ' | ' | 1,211,000 | ' | ' | 1,166,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,759,000 | ' | ' | 1,807,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of liabilities at the end of the period | $12,245,000 | $12,592,000 | $17,490,000 | $13,537,000 | $12,245,000 | $15,876,000 | ' | $1,211,000 | $404,000 | $875,000 | $1,166,000 | $538,000 | $3,916,000 | $1,048,000 | $3,200,000 | $2,000,000 | $283,000 | $1,632,000 | $424,000 | $2,500,000 | $1,800,000 | $300,000 | ' | $3,182,000 | $2,759,000 | $2,017,000 | $1,574,000 | $1,807,000 | $4,190,000 | $6,070,000 | ' | $6,070,000 | $8,240,000 | $4,920,000 | $8,240,000 | $6,510,000 | $1,290,000 | ' | $1,516,000 | $1,936,000 | $1,390,000 | $1,936,000 | $1,588,000 | $313,000 | $394,000 | $394,000 | $386,000 | $361,000 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 18, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 18, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 18, 2013 | Feb. 22, 2013 | Jan. 16, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 22, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jan. 16, 2013 | Feb. 22, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Sep. 18, 2013 | Sep. 30, 2013 | |
2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2011 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | 2012 Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | Third Tranche Convertible Notes | February 2013 SPA Option | February 2013 SPA Option | February 2013 SPA Option | February 2013 SPA Option | February 2013 SPA Option | September 2013 SPA Option | September 2013 SPA Option | September 2013 SPA Option | September 2013 SPA Option | September 2013 SPA Option | 2011 Warrants | 2011 Warrants | 2011 Warrants | 2012 Warrants - $0.15 Warrants | 2012 Warrants - $0.15 Warrants | 2012 Warrants - $0.15 Warrants | 2012 Warrants - $0.25 Warrants | Third Tranche Warrants | 2013 Warrants | February 2013 Warrants | February 2013 Warrants | September 2013 Warrants | September 2013 Warrants | |||
Binomial lattice model | Binomial lattice model | Binomial lattice model | Binomial lattice model | Binomial lattice model | Binomial lattice model | Binomial lattice model | Binomial lattice model | Binomial lattice model | Binomial lattice model | Binomial lattice model | Binomial lattice model | Black-Scholes-Merton option-pricing model | Black-Scholes-Merton option-pricing model | Monte Carlo simulation model | Monte Carlo simulation model | Black-Scholes-Merton option-pricing model | Black-Scholes-Merton option-pricing model | Monte Carlo simulation model | Monte Carlo simulation model | Black-Scholes-Merton option-pricing model | Black-Scholes-Merton option-pricing model | Black-Scholes-Merton option-pricing model | Black-Scholes-Merton option-pricing model | Black-Scholes-Merton option-pricing model | Black-Scholes-Merton option-pricing model | Black-Scholes-Merton option-pricing model | Black-Scholes-Merton option-pricing model | Monte Carlo simulation model | Monte Carlo simulation model | Monte Carlo simulation model | Monte Carlo simulation model | Monte Carlo simulation model | ||||||
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Valuation - Methodology and Significant Inputs Assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock issuable for each option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock warrants issuable for each option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Input | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Price (in dollars per share) | ' | ' | ' | $0.08 | $0.14 | $0.07 | $0.15 | $0.08 | $0.14 | $0.07 | $0.15 | $0.08 | $0.14 | $0.15 | $0.07 | ' | $0.14 | $0.07 | $0.10 | $0.07 | ' | $0.08 | $0.07 | $0.08 | $0.07 | $0.14 | $0.07 | $0.15 | $0.14 | $0.07 | $0.15 | $0.15 | $0.15 | ' | $0.12 | $0.58 | $0.07 | $0.06 |
Exercise Price (in dollars per share) | ' | ' | ' | $0.06 | $0.10 | $0.06 | $0.10 | $0.06 | $0.10 | $0.06 | $0.10 | $0.06 | $0.10 | $0.10 | $0.06 | ' | $0.15 | $0.02 | $0.20 | $0.20 | ' | $0.06 | $0.06 | $0.06 | $0.06 | $0.15 | $0.10 | $0.15 | $0.15 | $0.01 | $0.15 | $0.25 | $0.15 | $0.20 | $0.20 | $0.08 | $0.08 | $0.08 |
Expected Life | ' | ' | ' | '1 year 9 months 11 days | '2 years 4 months 6 days | '1 year 9 months | '1 year 1 month 24 days | '1 year 9 months 14 days | '2 years 4 months 6 days | '1 year 9 months | '2 years 6 months | '2 years 3 months 29 days | '2 years 10 months 24 days | '3 years | '2 years 3 months 18 days | ' | '9 months | '1 month 21 days | '5 years | '1 month 21 days | ' | '8 months 29 days | '8 months 17 days | '8 months 29 days | '8 months 17 days | '3 years | '2 years 4 months 24 days | '3 years 1 month 24 days | '4 years 4 months 17 days | '3 years 9 months 4 days | '4 years 6 months | '4 years 6 months | '5 years | ' | '5 years | '4 years 4 months 24 days | '5 years | '4 years 11 months 19 days |
Stock Volatility (as a percent) | ' | ' | ' | 100.00% | 100.00% | 100.00% | 105.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ' | 110.00% | 110.00% | 110.00% | 110.00% | ' | 110.00% | 110.00% | 110.00% | 110.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 110.00% | ' | 110.00% | 110.00% | 110.00% | 110.00% |
Risk-Free Rate (as a percent) | ' | ' | ' | 0.38% | 0.32% | 0.27% | 0.17% | 0.38% | 0.32% | 0.26% | 0.31% | 0.56% | 0.39% | 0.36% | 0.42% | ' | 0.15% | 0.03% | 1.16% | 1.48% | ' | 0.07% | 0.07% | 0.07% | 0.07% | 0.40% | 0.24% | 0.39% | 0.70% | 0.92% | 0.63% | 0.63% | 0.75% | ' | 0.84% | 1.16% | 1.43% | 1.38% |
Dividend Rate (as a percent) | ' | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | 0.00% | 0.00% | ' | ' | ' | 0.00% | 0.00% | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' |
Number of Steps | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | 10,000 | ' | ' | ' | 10,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | 100,000 | 100,000 |
Outstanding Shares of Common Stock | 125,000,000 | 32,434,000 | ' | 143,997,066 | 59,576,097 | 160,666,475 | 32,434,430 | 143,997,066 | 59,576,097 | 160,666,475 | 32,434,430 | 143,997,066 | 59,576,097 | 32,434,430 | 160,666,475 | ' | 73,042,764 | 160,666,475 | ' | ' | ' | 143,997,066 | 160,666,475 | ' | ' | 59,576,097 | 160,666,475 | 32,434,430 | 59,576,097 | 160,666,475 | 32,434,430 | 32,434,430 | 32,434,430 | ' | 59,576,097 | 160,666,475 | ' | ' |
Effective discount rate (as a percent) | ' | ' | ' | 16.40% | 13.20% | 16.40% | 13.10% | 16.40% | 13.20% | 16.40% | 13.20% | 13.30% | 13.20% | 13.20% | 13.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Probability of forced redemption (as a percent) | ' | ' | ' | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption amount due pursuant to clause (II) | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding principal redeemed under a change of control, used as valuation assumption | 130.00% | 130.00% | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of accrued and unpaid interest, used as valuation assumption | 100.00% | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_Details
Commitments (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
item | |
Estimated future minimum lease payments | ' |
2013 | $11 |
2014 | 30 |
Total | $41 |
Number of separate outside contract manufacturers | 2 |