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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis
The following table presents the placement in the fair value hierarchy of liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017:
 
May 2015 Warrants
 
 
 
 
 
 
Fair value measurement at reporting date using
 
 
 
 
 
 
Quoted prices in
 
 
 
 
 
 
 
 
 
 
 
 
active markets
 
 
Significant other
 
 
Significant
 
 
 
 
 
 
for identical
 
 
observable
 
 
unobservable
 
 
 
Balance
 
 
assets (Level 1)
 
 
inputs (Level 2)
 
 
inputs (Level 3)
 
December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 2015 Warrants
 
$
 
 
$
 
 
$
 
 
$
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 2015 Warrants
 
$
34
 
 
$
 
 
$
 
 
$
34
 
 
May 2018 Warrants
 
 
 
 
 
 
Fair value measurement at reporting date using
 
 
 
 
 
 
Quoted prices in
 
 
 
 
 
 
 
 
 
 
 
 
active markets
 
 
Significant other
 
 
Significant
 
 
 
 
 
 
for identical
 
 
observable
 
 
unobservable
 
 
 
Balance
 
 
assets (Level 1)
 
 
inputs (Level 2)
 
 
inputs (Level 3)
 
December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A Warrants
 
$
476
 
 
$
 
 
$
 
 
$
476
 
B Warrants
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
476
 
 
$
 
 
$
 
 
$
476
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 17, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A Warrants
 
$
1,827
 
 
$
 
 
$
 
 
$
1,827
 
B Warrants
 
 
135
 
 
 
 
 
 
 
 
 
135
 
Total
 
$
1,962
 
 
$
 
 
$
 
 
$
1,962
 
Changes in Liabilities Measured at Fair Value Using Significant Unobservable Inputs
The following table summarizes the changes in the Company’s derivative warrant liabilities measured at fair value using significant unobservable inputs (Level 3) during the year ended December 31, 2018:
 
December 31, 2017
 
$
34
 
Issuance of warrants May 17, 2018
 
 
1,962
 
Decrease in fair value of the derivative warrant liabilities
 
 
(1,520
)
December 31, 2018
 
$
476
 
Fair Value Measurements Based Upon Sensitivity and Nature of Inputs
Fair value measurement of the derivative warrant liabilities falls within Level 3 of the fair value hierarchy. The fair value measurements are evaluated by management to ensure that changes are consistent with expectations of management based upon the sensitivity and nature of the inputs.
 
May 2015 Warrants
 
December 31, 2018:
 
Description
 
Valuation technique
 
Unobservable inputs
 
Range
 
May 2015 Warrants
 
Black-Scholes-Merton
 
Volatility
 
 
71.16
%
 
 
 
 
Risk-free interest rate
 
 
2.49
%
 
 
 
 
Expected term, in years
 
 
1.34
 
 
 
 
 
Dividend yield
 
 
0.00
%
 
December 31, 2017:
 
Description
 
Valuation technique
 
Unobservable inputs
 
Range
 
May 2015 Warrants
 
Black-Scholes-Merton
 
Volatility
 
 
39.64
%
 
 
 
 
Risk-free interest rate
 
 
1.88
%
 
 
 
 
Expected term, in years
 
 
2.34
 
 
 
 
 
Dividend yield
 
 
0.00
%
 
May 2018 Warrants
 
December 31, 2018:
 
 
 
Dividend yield
 
 
0.00
%
 
Description
 
Valuation technique
 
Unobservable inputs
 
Range
 
Derivative warrant liabilities –

A Warrants
 
Black-Scholes-Merton
 
Volatility
 
 
70.61
%
 
 
 
 
Risk-free interest rate
 
 
2.53
%
 
 
 
 
Expected term, in years
 
 
4.38
 
 
 
 
 
Dividend yield
 
 
0.00
%
 
Description
 
Valuation technique
 
Unobservable inputs
 
Range
 
Derivative warrant liabilities –

B Warrants
 
Black-Scholes-Merton
 
Volatility
 
 
84.02
%
 
 
 
 
Risk-free interest rate
 
 
2.25
%
 
 
 
 
Expected term, in years
 
 
0.12
 
 
 
 
 
Dividend yield
 
 
0.00
%
 
May 17, 2018:
 
Description
 
Valuation technique
 
Unobservable inputs
 
Range
 
Derivative warrant liabilities –

A Warrants
 
Black-Scholes-Merton
 
Volatility
 
 
71.13
%
 
 
 
 
Risk-free interest rate
 
 
2.98
%
 
 
 
 
Expected term, in years
 
 
5.00
 
 
 
 
 
Dividend yield
 
 
0.00
%
 
Description
 
Valuation technique
 
Unobservable inputs
 
Range
 
Derivative warrant liabilities –

B Warrants
 
Black-Scholes-Merton
 
Volatility
 
 
72.88
%
 
 
 
 
Risk-free interest rate
 
 
1.99
%
 
 
 
 
Expected term, in years
 
 
0.50
 
 
 
 
 
Dividend yield
 
 
0.00
%
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis The following table presents the placement in the fair value hierarchy of the Marathon Common Stock measured at fair value on a nonrecurring basis as of the Transaction Date:
 
 
 
 
 
 
Fair value measurement at reporting date using
 
 
 
 
 
 
Quoted prices in
 
 
 
 
 
 
 
 
 
 
 
 
active markets
 
 
Significant other
 
 
Significant
 
 
 
 
 
 
for identical
 
 
observable
 
 
unobservable
 
 
 
Balance
 
 
assets (Level 1)
 
 
inputs (Level 2)
 
 
inputs (Level 3)
 
January 11, 2018
 
$
450
 
 
$
 
 
$
450
 
 
$
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
$
23
 
 
$
23
 
 
$
 
 
$
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table summarizes the changes in the Company’s investment in Marathon Common Stock, measured at fair value using significant other observable inputs (Level 2) as of Transaction Date and measured at fair value using quoted prices in active markets for identical assets (Level 1) during the year ended December 31, 2018:
 
January 11, 2018
 
$
450
 
Carrying value of Marathon Common Stock sold
 
 
(279
)
Decrease in fair value of the Marathon Common Stock
 
 
(148
)
December 31, 2018
 
$
23
 
Fair Value, Assets Measured on Recurring Basis
The following table presents the placement in the fair value hierarchy of the contingent consideration assumed by the Company following the acquisition of Excalibur Integrated Systems, Inc. (“Excalibur”), which is measured at fair value on a recurring basis as of December 31, 2018 and 2017:
 
 
 
 
 
 
Fair value measurement at reporting date using
 
 
 
 
 
 
Quoted prices in
 
 
 
 
 
 
 
 
 
 
 
 
active markets
 
 
Significant other
 
 
Significant
 
 
 
 
 
 
for identical
 
 
observable
 
 
unobservable
 
 
 
Balance
 
 
assets (Level 1)
 
 
inputs (Level 2)
 
 
inputs (Level 3)
 
December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
$
316
 
 
$
 
 
$
 
 
$
316
 
December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
$
316
 
 
$
 
 
$
 
 
$
316