Fair Value Measurements and Disclosures (Tables)

9 Months Ended

Nov. 01, 2014

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Summary of company's financial instruments

The following tables present information on the Company’s financial instruments (in thousands):



	Carrying Amount as of November 1, 2014		Fair Value Measurements at Reporting Date Using
	Carrying Amount as of November 1, 2014		Level 1		Level 2		Level 3
Financial assets:
Money market funds	$	7,521	$	—	$	7,521	$	—
Cash equivalents	7,521

Financial liability:
Senior convertible note	$	21,291	$	—	$	—	$	14,923



	Carrying Amount as of February 1, 2014		Fair Value Measurements at Reporting Date Using
	Carrying Amount as of February 1, 2014		Level 1		Level 2		Level 3
Financial assets:
Money market funds	$	22,427	$	—	$	22,427	$	—
Cash equivalents	22,427

Certificates of deposits	3,084		—		3,079		—
US government securities	4,302		—		4,300		—
Short-term investments	$	7,386



	Carrying Amount as of November 2, 2013		Fair Value Measurements at Reporting Date Using
	Carrying Amount as of November 2, 2013		Level 1		Level 2		Level 3
Financial assets:
Money market funds	$	13,986	$	—	$	13,986	$	—
Cash equivalents	13,986

Certificates of deposit	5,490		—		5,476		—
US treasury securities	4,994		—		5,000		—
US government securities	25,328		—		25,303		—
Short-term investments	35,812

Long-term tenant allowances receivable	$	1,029	$	—	$	—	$	1,029

Warrant Liability [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of significant assumptions

The following significant assumptions were used as of November 1, 2014 and March 26, 2014:



	November 1, 2014			March 26, 2014
Stock price	$	0.34		$	1.16
Exercise price	$	1.76		$	2.12
Exercise price floor	N/A			$	1.76
Expected volatility	54.36		%	54.00		%
Expected term (in years)	5.3			5.5
Risk free interest rate	1.64		%	1.86		%
Expected dividend yield	—		%	—		%

Reconciliation of level 3 liabilities

The following table presents the activity recorded for the warrants liability since inception (in thousands):



	November 1, 2014
Beginning balance as of March 26, 2014	$	3,610
Less: Gain from change in fair value	264
Balance as of May 3, 2014	$	3,346
Less: Gain from change in fair value	1,409
Balance as of August 2, 2014	$	1,937
Less: Gain from change in fair value	1,566
Balance as of November 1, 2014	$	371

Derivative Liability [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of significant assumptions

The fair value of the embedded derivatives was estimated using a binomial lattice model, incorporating the “with-and-without” method to bifurcate the embedded derivatives, which requires Level 3 inputs that are highly subjective and determined using the following significant assumptions:



	November 1, 2014			March 26, 2014
Stock price	$	0.34		$	1.16
Conversion price	1.84			1.84
Expected volatility	65.66		%	52.0		%
Expected term (in years)	2.3			3.0
Risk free interest rate	0.57		%	0.89		%
Expected dividend yield	—		%	—		%
Bond yield	16.6		%	4.2		%
Recovery rate	45.0		%	45.0		%

Reconciliation of level 3 liabilities

The following table presents the activity recorded for the derivative liability since inception (in thousands):



	November 1, 2014
Beginning balance as of March 26, 2014	$	2,081
Less: Gain from change in fair value	175
Balance as of May 3, 2014	$	1,906
Less: Gain from change in fair value	1,087
Balance as of August 2, 2014	819
Less: Gain from change in fair value	129
Balance as of November 1, 2014	$	690

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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