Fair Value of Financial Instruments and Investments (Tables)

3 Months Ended

Mar. 31, 2013

Financial Instruments Measured at Fair Value on Recurring Basis

The following table presents the Company’s cash and cash equivalents, and investments and including the hierarchy for its financial instruments measured at fair value on a recurring basis at March 31, 2013 and December 31, 2012:

March 31, 2013	Carrying Amount		Estimated Fair  Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and cash equivalents:
Cash	$	18,696	$	18,696	$	18,696	$	—	$	—
Money market funds		17,445		17,445		17,445		—		—
Total cash and cash equivalents		36,141		36,141		36,141		—		—
Short-term investments:
Certificates of deposit		32,648		32,648		32,648		—		—
Restricted cash:
Certificates of deposit		2,430		2,430		2,430		—		—
Total	$	71,219	$	71,219	$	71,219	$	—	$	—
Liabilities:
Embedded derivatives:
Debt redemption features	$	848	$	848	$	—	$	—	$	848
Warrant liability		2,190		2,190		—		—		2,190
Total	$	3,038	$	3,038	$	—	$	—	$	3,038
December 31, 2012	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and cash equivalents:
Cash	$	14,221	$	14,221	$	14,221	$	—	$	—
Money market funds		36,111		36,111		36,111		—		—
Total cash and cash equivalents		50,332		50,332		50,332		—		—
Short-term investments:
Certificates of deposit		45,949		45,949		45,949		—		—
Restricted cash:
Certificates of deposit		2,430		2,430		2,430		—		—
Total	$	98,711	$	98,711	$	98,711	$	—	$	—
Liabilities:
Embedded derivatives:
Debt redemption features	$	848	$	848	$	—	$	—	$	848
Warrant liability		2,935		2,935		—		—		2,935
Total	$	3,783	$	3,783	$	—	$	—	$	3,783

Changes in Fair Value of Financial Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table provides a summary of the changes in fair value of the Company’s financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three-month period ended March 31, 2013:

	Warrant Liability			Debt Redemption Features
	(In thousands)
Level 3
Balance at December 31, 2012		2,935			848
Unrealized gain		(745	)		—
Balance at March 31, 2013	$	2,190		$	848