Fair Value on Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value of Financial Assets and Liabilities

The fair values of certain of the Company’s financial assets and liabilities were determined using the following inputs at June 30, 2013 (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⁾	$	46,500	$	46,500	$	0	$	0

Total financial assets	$	46,500	$	46,500	$	0	$	0


Warrant liability	$	10,290	$	0	$	0	$	10,290

Total financial liabilities	$	10,290	$	0	$	0	$	10,290

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

The fair values of certain of the Company’s financial assets and liabilities were determined using the following inputs at December 31, 2012 (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⁾	$	10,268	$	10,268	$	0	$	0

Total financial assets	$	10,268	$	10,268	$	0	$	0


Warrant liability	$	5,903	$	0	$	0	$	5,903

Total financial liabilities	$	5,903	$	0	$	0	$	5,903

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

Reconciliation of Fair Value Measurement on Liabilities Using Significant Unobservable Inputs

A reconciliation of the beginning and ending balances for warrant liability using significant unobservable inputs (Level 3) from December 31, 2012, to June 30, 2013, was as follows (in thousands):


Balance at December 31, 2012	$	5,903
Increase in fair value of warrants		4,387
Settlement of warrants exercised		0

Balance at June 30, 2013	$	10,290

- 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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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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