|6 Months Ended|
Jun. 30, 2015
|Notes to Financial Statements|
The following is a summary of activity in the number of warrants outstanding to purchase the Companys common stock for the six months ended June 30, 2015 (in thousands):
For the six months ended June 30, 2015, there were a total of 18,389,000 warrants exercised. All warrants were exercised on a net exercise basis and resulted in the issuance of 8,636,000 shares of the Companys common stock during that period.
Warrants consist of warrants potentially settleable in cash, which are liability-classified warrants, and equity-classified warrants.
Warrants classified as liabilities
Liability-classified warrants consist of warrants issued in connection with equity financings in February 2012, October 2013 and January 2014. These warrants are potentially settleable in cash and were determined not to be indexed to the Companys own stock and are therefore accounted for as liabilities.
The estimated fair value of outstanding warrants accounted for as liabilities is determined at each balance sheet date. Any decrease or increase in the estimated fair value of the warrant liability since the most recent balance sheet date is recorded in the consolidated statement of comprehensive loss as changes in fair value of derivative liabilities. The fair value of the warrants classified as liabilities is estimated using the Black-Scholes option-pricing model with the following inputs as of June 30, 2015:
Warrants classified as equity
Warrants that were recorded in equity at fair value upon issuance, and are not reported as liabilities on the balance sheet, are included in the above table which shows all warrants.
Disclosure of accounting policy for investments in debt and equity securities that are classified as trading securities. This policy also may describe the entity's accounting treatment for transfers between investment categories and how the fair values of such securities are determined.
Reference 1: http://www.xbrl.org/2003/role/presentationRef