Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summarizes Activity of the Product Revenue Allowance and Reserve Categories

The following table summarizes activity in each of the product revenue allowance and reserve categories described above for the year ended December 31, 2013 (in thousands):


	Trade Allowances			Rebates, Chargebacks and Discounts			Product Returns		Other Incentives			Total
Balance at January 1, 2013	$	—		$	—		$	—	$	—		$	—
Provision related to current period and deferred sales		4,178			4,282			72		3,114			11,646
Credits/payments made for current period and deferred sales		(3,107	)		(3,145	)	$	—		(2,925	)		(9,177	)

Balance at December 31, 2013		1,071			1,137			72		189			2,469

Product Revenue Recognized and Deferred

The following table summarizes product revenue recognized and deferred during the year ended December 31, 2013 (in thousands):


	December 31, 2013		December 31, 2012
Product revenue recognized	$	26,351	$	—
Deferred product revenue		1,703		—

	$	28,054	$	—

Expensed and Capitalized Cost of Goods

In conjunction with the Company’s recognition and deferral of product revenues, the Company expensed and capitalized the associated cost of goods, as follows, during the year ended December 31, 2013 (in thousands):


	December 31, 2013		December 31, 2012
Cost of goods sold expensed	$	11,912	$	—
Finished goods inventory held by others		627		—

	$	12,539	$	—

Estimated Useful Lives

The estimated useful lives, by asset classification, are as follows:


Asset Classification		Useful Lives
Computer equipment and software		3 - 5 years
Furniture and fixtures		5 years
Leasehold Improvements		Lesser of useful life or lease term

Net Loss and the Number of Shares Used to Compute Basic and Diluted Earnings per Share

The calculation of net loss and the number of shares used to compute basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011 are as follows:


In thousands	2013			2012			2011
Net loss—basic	$	(166,227	)	$	(179,184	)	$	(69,126	)
Gain on warrant derivative liability		(47,936	)		—			—

Net loss—diluted		(214,163	)		(179,184	)		(69,126	)
Net loss per share—basic	$	(1.03	)	$	(1.24	)	$	(0.53	)
Weighted average shares outstanding—basic		161,022			144,017			130,247
Warrant exercises		6,048			—			—

Weighted average shares outstanding—diluted		167,070			144,017			130,247
Net income loss per share—diluted	$	(1.28	)	$	(1.24	)	$	(0.53	)

Anti-Dilutive Securities Not Included in the Computation of Net Loss per Share

For the years ended December 31, 2013, 2012 and 2011, the following potentially dilutive securities were not included in the computation of net loss per share because the effect would be anti-dilutive:


In thousands
Stock options	9,330	10,892	11,871
Restricted stock and restricted stock units	196	465	—
Warrants	1,702	9,937	21,106

Assets and Liability Measured at Fair Value on a Recurring Basis

The following table presents information about the Company’s assets and liabilities as of December 31, 2013 and 2012 that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:


	December 31, 2013
*In millions*	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	113.5	$	113.5	$	—	$	—

Liabilities:
Warrant derivative liability	$	6.9	$	—	$	—	$	6.9
Long term debt redemption feature	$	11.1	$	—	$	—	$	11.1


	December 31, 2012
*In millions*	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	64.1	$	64.1	$	—	$	—

Liabilities:
Warrant derivative liability	$	54.9	$	—	$	—	$	54.9
Long term debt redemption feature	$	14.6	$	—	$	—	$	14.6

Warrant

Change in Fair Value of Financial Instruments

The change in the fair value of financial instruments is as follows (in thousands):


	October 2009 Warrants			Debt Redemption Feature			Totals
Balance at December 31, 2011	$	123,125		$	—		$	123,125

Initial measurement—December 2012 financing		—			14,600			14,600
Loss (gain) on change in fair value of derivative liability		35,367			(23	)		35,344
Compensation expense for change in fair value of warrants issued to former employees		247						247
Transfers to equity		(103,885	)		—			(103,885	)


Balance at December 31, 2012	$	54,854		$	14,577		$	69,431

Gain on change in fair value of derivative liabilities		(44,233	)		(3,477	)		(47,710	)
Compensation income for change in fair value of warrants issued to former employees		(3,703	)		—			(3,703	)
Transfers to equity		(24	)		—			(24	)

Balance at December 31, 2013	$	6,894		$	11,100		$	17,994

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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