Fair Value Accounting

12 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Accounting

Fair Value Accounting

ASC 820, Fair Value Measurements, establishes a valuation hierarchy for disclosure of the inputs to valuation techniques used to measure fair value. This standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value:

• Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

• Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly, through market corroboration, for substantially the full term of the financial instrument.

• Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets or liabilities at fair value.

Classification of an asset or liability within this hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The following table lists our financial assets and liabilities that are measured at fair value on a recurring basis:

Fair Value Measurement
(in thousands)	Level 1		Level 2	Level 3
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Remaining Inputs	Significant Unobservable Inputs	Total
As of September 30, 2015
Assets:
Cash and cash equivalents	$	111,885	—	—	$	111,885
Restricted cash	375		—	—	375
As of September 30, 2014
Assets:
Cash and cash equivalents	$	20,687	—	—	$	20,687
Restricted cash	1,482		—	—	1,482
Liabilities:
Warrant liability	—		122	—	122

Cash consists primarily of bank deposits or, highly liquid short-term investments with a maturity of three months or less at the time of purchase. Restricted cash represents temporarily restricted deposits held as compensating balances against short-term borrowing arrangements.

As of September 30, 2014, warrants representing the right to purchase 400,001 shares, of our common stock were outstanding. Since the warrants expired on April 1, 2015, no warrants were outstanding as of September 30, 2015. All of our warrants met the classification requirements for liability accounting pursuant to ASC 815, Derivatives and Hedging. Historically, recording the change in the fair value of our warrants impacted our statements of operations and comprehensive income and was primarily due to the change in the closing price of our common stock.

Assumptions used in Monte Carlo Option Valuation Model	Warrants issued on October 1, 2009
	As of September 30, 2015	As of September 30, 2014
Number of warrants issued	—	400,001
Expiration date	—	4/1/2015
Exercise price	—	$6.76 - $9.44
Expected dividend yield	—	—
Expected stock price volatility	—	51.71	%
Risk-free interest rate	—	0.30	%
Expected term (in years)	—	0.5
Total warrant valuation	—	$121,667

The carrying amounts of accounts receivable, prepaid expenses and other current assets, borrowings from our credit facility, accounts payable, accrued expenses and other current liabilities approximate fair value because of the short maturity of these instruments.

Impairment tests related to our long-lived assets involves comparing fair value to carrying amount. See Note 8 - Property, Plant and Equipment for disclosures related to recent long-lived asset impairment tests.