XML 66 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.8

DEBT | 12 Months Ended
--- | ---
Dec. 31, 2013
DEBT |
DEBT | 6. DEBT Financing Facility On November 13, 2013, the Company, together with each of the Company's subsidiaries as guarantors, entered into the Loan Agreement with RCF, pursuant to which RCF provided a senior secured loan facility (the "Facility") to the Company under which the Company may draw up to $15.0 million. The Facility consists of three tranches of $5.0 million each. RCF advanced $3.0 million of the first $5.0 million tranche shortly following the closing of the Loan Agreement. The convertible debentures are secured and bear interest, calculated on the outstanding principal balance, at 12% per annum through January 29, 2014 and 10% per annum thereafter, payable quarterly. The principal amounts of the Facility are convertible into shares of the Company at a price of $2.60 per share at any time prior to the maturity date of December 31, 2016. RCF may convert the loan amount at the conversion price, which is $2.60 per share. The conversion rate is subject to customary anti-dilution adjustments and further downward adjustment, subject to a floor of $1.00 per share, in case of certain equity issuances by the Company before November 13, 2014. In December 2012, the Company completed a $5 million short term financing provided by RCF. The terms of the financing include an annualized interest rate of 10% payable quarterly and a loan establishment fee of $160,000. The loan establishment fee was paid in December 2012 by the issuance of 42,884 shares of common stock of the Company. The number of shares paid was determined based upon the volume weighted average price of the Company's common stock for the 20 days ending November 29, 2012 ($3.73 per share). The maturity date for the financing was the earlier of (i) the date of the closing of the Shareholder Rights Offering and (ii) June 28, 2013. In connection with the Rights Offering during March 2013, the Company repaid the RCF $5.0 million short term loan facility by issuing 1.96 million shares of the Company's common stock to RCF. Summary of Long-Term Debt
|  | At December 31, |
--- | --- | --- | ---
|  | 2013 |  | 2012 |
Long-term debt of the Company consists of: |  |  |  |  |  |  |
Resource Capital Funds—Convertible Debt Facility |  | $ | 3,000,000 |  | $ | — |
Note Payable |  |  | — |  |  | 5,000,000 |
Capital leases |  |  | 15,038 |  |  | 129,722 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
|  |  | 3,015,038 |  |  | 5,129,722 |
Less—current portion |  |  | (10,543 | ) |  | (5,112,140 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total long-term debt, including capital leases |  | $ | 3,004,495 |  | $ | 17,582 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Maturities of long-term debt and capital leases are as follows:
For the Twelve Months Ended: |  | Long-term Debt |  | Capital Leases |
--- | --- | --- | --- | --- | ---
December 31, 2014 |  | $ | 4,495 |  | $ | 24,154 |
December 31, 2015 |  |  | — |  |  | 4,578 |
December 31, 2016 |  |  | 3,000,000 |  |  | — |
December 31, 2017 |  |  | — |  |  | — |
December 31, 2018 and beyond |  |  | — |  |  | — |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Totals |  | $ | 3,004,495 |  | $ | 28,732 |
Less amounts representing imputed interest |  |  |  |  |  | (18,156 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Present value of future payments |  |  |  |  | $ | 10,576 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Capital leases consist of trucks and equipment included in uranium properties. Derivative Liability The conversion feature of the convertible debentures meets the definition of a derivative liability instrument because the exercise price is not a fixed price as described above. Therefore, the conversion feature does not meet the "fixed-for-fixed" criteria outlined in ASC 815-40-15. As a result, the conversion feature of the notes is required to be recorded as a derivative liability recorded at fair value and marked-to-market each period with the changes in fair value each period being charged or credited to income or loss. At the closing of the convertible debt loan on November 13, 2013, the fair value of the derivative liability related to the conversion feature was $2,061,794 and at December 31, 2013, was $2,169,408. The derivative liability was calculated using the Black-Scholes option pricing model with the following assumptions:
Risk-free interest rate |  | 0.61% - 0.78%
Expected life of derivative liability |  | 3.00 - 3.12 years
Expected volatility |  | 94% - 97%
Dividend rate |  | 0.00%
The changes in the derivative liability related to the conversion feature are as follows:
|  | December 31, 2013 |  | Financial Statement Location
--- | --- | --- | --- | ---
Balance, December 31, 2012 |  | $ | — |  |
Fair value at inception |  |  | 2,061,794 |  |
Change in fair value of derivative liability |  |  | 107,614 |  | Change in fair value of derivative liability
​ | ​ | ​ | ​ | ​ | ​
Balance, December 31, 2013 |  | $ | 2,169,408 |  | Derivative liability—convertible debenture
​ | ​ | ​ | ​ | ​ | ​
With the conversion feature initially being valued at $2,061,794, the resulting residual value allocated to the host debenture was $938,206, being the difference between the face value of the convertible debentures and the fair value of the conversion feature derivative liability. The change in the convertible debentures is as follows:
|  | December 31, 2013 |
--- | --- | --- | ---
Balance, December 31, 2012 |  | $ | — |
Discounted convertible debentures |  |  | 938,206 |
Amortization of discount |  |  | 86,509 |
​ | ​ | ​ | ​ | ​
Balance, December 31, 2013 |  | $ | 1,024,715 |
​ | ​ | ​ | ​ | ​
In addition to the amortization of the discount on the convertible debenture, the Company incurred interest expense of $47,000 based on the 12% per annum stated interest rate.

X
- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References No definition available. + Details
Name: | us-gaap_DebtAndCapitalLeasesDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration