Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Carrying Value and Estimated Fair Value of Financial Instruments

The following tables present the carrying values and fair value estimates of financial instruments as of March 31, 2014 and December 31, 2013:

		March 31, 2014
(Dollars in thousands)	Fair Value Hierarchy	Carrying Amount		EstimatedFair Value
ASSETS
Continuing operations:
Cash and cash equivalents	Level 1	$	44,628	$	44,628
Restricted cash	Level 1		2,805		2,805
Loans receivable, net (other noncurrent assets)	Level 3		1,352		1,350
Preferred stock (other noncurrent assets)	Level 3		800		3,000
Discontinued operations:
Cash and cash equivalents	Level 1		121		121
LIABILITIES
Continuing operations:
Line of credit	Level 3	$	2,000	$	2,000
Long-term debt	Level 3		16,325		16,325
Common stock warrant liability	Level 3		8,500		8,500

		December 31, 2013
(Dollars in thousands)	Fair Value Hierarchy	Carrying Amount		EstimatedFair Value
ASSETS
Continuing operations:
Cash and cash equivalents	Level 1	$	47,880	$	47,880
Restricted cash	Level 1		2,805		2,805
Loans receivable, net (other noncurrent assets)	Level 3		1,407		1,400
Preferred stock (other noncurrent assets)	Level 3		800		4,000
Discontinued operations:
Cash and cash equivalents	Level 1		139		139
LIABILITIES
Continuing operations:
Line of credit	Level 3	$	500	$	500
Long-term debt	Level 3		17,200		17,200
Common stock warrant liability	Level 3		9,300		9,300

Assets and Liabilities Measured at Fair Value on Recurring and Non-Recurring Basis Based on Fair Value Hierarchy

The following table presents the Company’s estimated fair value of assets and liabilities as of March 31, 2014 and December 31, 2013, based on the fair value hierarchy, measured on a recurring and nonrecurring basis:

(Dollars in thousands)	Quoted Prices in Active Markets(Level 1)		Significant Other Observable Inputs(Level 2)		Significant  Unobservable Inputs(Level 3)		Total Fair Value
Recurring fair value measurements:
March 31, 2014
Liabilities:
Common stock warrant liability	$	—	$	—	$	8,500	$	8,500
December 31, 2013
Liabilities:
Common stock warrant liability	$	—	$	—	$	9,300	$	9,300
Nonrecurring fair value measurements:
December 31, 2013
Assets:
Real estate owned, net	$	—	$	—	$	75	$	75

Reconciliation for Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level Three)

The following table presents a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2014 and 2013:

(Dollars in thousands)	BeginningBalance		Income (Expense) Realized in Earnings			Transfers In/Out ofLevel 3		Purchases		Issuances		Settlements		EndingBalance
Three Months Ended March 31, 2014
Common stock warrant liability	$	9,300	$	800		$	—	$	—	$	—	$	—	$	8,500
Three Months Ended March 31, 2013
Common stock warrant liability		2,350		(1,450	)		—		—		—		—		3,800

Total Gains (Losses) on Assets and Liabilities Measured on Fair Values on Non-Recurring Basis

The following table summarizes gains (losses) on assets and liabilities recorded on a nonrecurring basis for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
(Dollars in thousands)	2014		2013
Real estate owned, net	$	—	$	(283	)
Inventory (discontinued operations)		432		—

Valuation Techniques and Unobservable Inputs Applied to Level Three Fair Value Measurements

The Company’s Level 3 assets and liabilities are determined using valuation techniques that incorporate unobservable inputs that require significant judgment or estimation. The following tables presents quantitative information about the valuation techniques and unobservable inputs applied to Level 2 and Level 3 recurring and nonrecurring fair value measurements as of March 31, 2014 and December 31, 2013:

	March 31, 2014
(Dollars in thousands)	Estimated Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Liabilities:
Common stock warrant liability	$	8,500	Lattice option    pricing model	Exercise multiple	2.8x (2.8x)
				Volatility	54.0% (54.0%)
				Expected term	4.1 - 4.2 years (4.1 years)

	December 31, 2013
(Dollars in thousands)	Estimated Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Assets:
Real estate owned, net    (discontinued operations)	$	75	Market approach	Marketability    discount	20.0% (20.0%)
				Estimated    selling costs	8.0% (8.0%)
Liabilities:
Common stock warrant liability	$	9,300	Lattice option    pricing model	Exercise multiple	2.8x (2.8x)
				Volatility	55.0% (55.0%)
				Expected term	4.1 - 4.2 years (4.1 years)