Financial instruments (Tables)

9 Months Ended

Sep. 30, 2014

Investments, All Other Investments [Abstract]

Fair Value of Financial Instruments Measured At Fair Value on a Recurring Basis

The following tables present the fair value of our financial instruments that are measured at fair value on a recurring basis:


	QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UN- OBSERVABLE INPUTS (LEVEL 3)			TOTAL
BALANCES – September 30, 2014
Short-term investments – U.S. treasury securities	$	6,138,001	$	—	$	—		$	6,138,001
Short-term investments – U.S. government agency securities		17,996,540		—		—			17,996,540
Investments – bank term deposits		—		44,610		—			44,610
Investments – U.S. treasury securities		6,094,143		—		—			6,094,143
Investments – U.S. government agency securities		2,001,299		—		—			2,001,299
Bank loan warrant derivative liabilities		—		—		(63,708	)		(63,708	)

	$	32,229,983	$	44,610	$	(63,708	)	$	32,210,885

BALANCES – December 31, 2013
Short-term investments – bank term deposits	$	—	$	2,820,600	$	—		$	2,820,600
Bank loan warrant derivative liabilities		—		—		(221,320	)		(221,320	)
Redemption option on preferred stock		—		—		(800,206	)		(800,206	)

		—	$	2,820,600	$	(1,021,526	)	$	1,799,074

Fair Value of Significant Unobservable Inputs

Fair value of significant unobservable inputs (Level 3):


	BANK LOAN WARRANT DERIVATIVE LIABILITIES			PREFERRED STOCK EMBEDDED DERIVATIVE LIABILITIES		TOTAL
Three months ended September 30, 2014:
BALANCES - June 30, 2014	$	93,096		$	—	$	93,096
Change in fair value of derivative liabilities		(29,388	)		—		(29,388	)

BALANCES – September 30, 2014	$	63,708		$	—	$	63,708


	BANK LOAN WARRANT DERIVATIVE LIABILITIES			PREFERRED STOCK EMBEDDED DERIVATIVE LIABILITIES			TOTAL
Nine months ended September 30, 2014:
BALANCES - January 1, 2014	$	221,320		$	800,206		$	1,021,526
Change in fair value of derivative liabilities		(157,612	)		—			(157,612	)
Derecognition of liabilities upon preferred stock conversion to common stock conversion		—			(800,206	)		(800,206	)

BALANCES – September 30, 2014	$	63,708		$	—		$	63,708

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period 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 asset.

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