Significant assumptions (or ranges) used in valuing our outstanding
warrants at December 31, 2012 are as follows:
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|
|
|
|
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Trading market values (1)
|
|
$ |
0.60 |
|
|
Term (years) (3)
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|
|
0.61 |
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Volatility (1)
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|
|
44.80 |
% |
|
Risk-free rate (2)
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|
|
0.06 |
% |
Fair value hierarchy:
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(1) |
Level 1 inputs are quoted prices in
active markets for identical assets and liabilities, or derived
there from. Our trading market values and the volatilities that are
calculated thereupon are level 1 inputs. |
| |
(2) |
Level 2 inputs are inputs other than
quoted prices that are observable. We use the current published
yields for zero-coupon US Treasury Securities, with terms nearest
the remaining term of the warrants for our risk free rate. |
| |
(3) |
Level 3 inputs are unobservable
inputs. Inputs for which any parts are level 3 inputs are
classified as level 3 in their entirety. The remaining term used
equals the remaining contractual term as our best estimate of the
expected term. |
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