Fair Value On Financial Instruments

9 Months Ended

Sep. 30, 2011

Fair Value On Financial Instruments

Fair Value On Financial Instruments

Note 3. Fair Value on Financial Instruments

The fair values of certain of the Company's financial assets and liabilities were determined using the following inputs at September 30, 2011 (in thousands):

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Money market funds (1)	$	6,761	$	6,761	$	0	$	0
United States government agency securities (2)		457		0		457		0
Total financial assets	$	7,218	$	6,761	$	457	$	0
Warranty liability (3)	$	4,643	$	0	$	0	$	4,643
Total financial liabilities	$	4,643	$	0	$	0	$	4,643

The fair values of certain of the Company's financial assets were determined using the following inputs at December 31, 2010 (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds (1)	$	6,178	$	6,178	$	0	$	0
Corporate debt securities (2)		73		0		73		0
United States government agency securities (2)		988		0		988		0
Total financial assets	$	7,239	$	6,178	$	1,061	$	0
Warranty liability (3)	$	8,465	$	0	$	0	$	8,465
Total financial liabilities	$	8,465	$	0	$	0	$	8,465

(1) Included in cash and cash equivalents on the Company's condensed consolidated balance sheet.

(2) Included in short-term investments on the Company's condensed consolidated balance sheet.

(3) Included in current liabilities on the Company's condensed consolidated balance sheet.

A reconciliation of the beginning and ending balances for warrant liabilities using significant unobservable inputs (Level 3) from December 31, 2010 to September 30, 2011 was as follows (in thousands):

Balance at December 31, 2010	$	8,465
Issuance of warrants		0
Decrease in value of warrants		(3,822	)
Balance at September 30, 2011	$	4,643

The Company did not have any transfers amongst fair value measurement levels during the nine months ended September 30, 2011.