Fair Value of Financial Instruments and Investments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2013 and December 31, 2012:

September 30, 2013	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and cash equivalents:
Cash	$	10,333	$	10,333	$	10,333	$	—	$	—
Money market funds		18,108		18,108		18,108		—		—
Total cash and cash equivalents		28,441		28,441		28,441		—		—
Short-term investments:
Certificates of deposit		6,183		6,183		6,183		—		—
Restricted cash:
Certificates of deposit		1,655		1,655		1,655		—		—
Total	$	36,279	$	36,279	$	36,279	$	—	$	—
Liabilities:
Embedded derivatives:
Debt redemption features	$	848	$	848	$	—	$	—	$	848
Warrant liability		1,634		1,634		—		—		1,634
Total	$	2,482	$	2,482	$	—	$	—	$	2,482

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 nine-month period ended September 30, 2013:

	Warrant Liability			Debt Redemption Features
	(In thousands)
Level 3
Balance at December 31, 2012		2,935			848
Unrealized gain		(1,301	)		—
Balance at September 30, 2013	$	1,634		$	848