Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 2. Fair Value Measurements

The Company measures at fair value certain financial assets and liabilities in accordance with a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. There are three levels of inputs that may be used to measure fair-value:

• Level 1 — quoted prices for identical instruments in active markets;

• Level 2 — quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

• Level 3 — valuations derived from valuation techniques in which one or more significant value drivers are unobservable.

The Company's assets and liabilities measured at fair value on a recurring basis consisted of the following as of the date indicated:

	Fair Value Measurement as of September 30, 2011
	Total		Level 1		Level 2		Level 3
	(in thousands)
Cash and Cash equivalents	$	46,356	$	46,356	$	—	$	—
Total assets	$	46,356	$	46,356	$	—	$	—
	Fair Value Measurement as of September 30, 2011
	Total		Level 1		Level 2		Level 3
	(in thousands)
Warrants	$	12,889	$	—	$	—	$	12,889
Total liabilities	$	12,889	$	—	$	—	$	12,889
	Fair Value Measurement as of December 31, 2010
	Total		Level 1		Level 2		Level 3
	(in thousands)
Cash and Cash equivalents	$	33,589	$	33,589	$	—	$	—
Total assets	$	33,589	$	33,589	$	—	$	—
	Fair Value Measurement as of December 31, 2010
	Total		Level 1		Level 2		Level 3
	(in thousands)
Warrants	$	39,111	$	—	$	—	$	39,111
Total liabilities	$	39,111	$	—	$	—	$	39,111

A reconciliation of the change in value of the Company's warrants for the three months ended September 30, 2011 is as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	(in thousands)
Balance at June 30, 2011	$	19,941
Change in value of warrants		(7,052	)
Balance at September 30, 2011	$	12,889

A reconciliation of the change in value of the Company's warrants for the nine months ended September 30, 2011 is as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	(in thousands)
Balance at December 31, 2010	$	39,111
Change in value of warrants		(25,579	)
Reclassification to shareholders' equity upon exercise of warrants		(643	)
Balance at September 30, 2011	$	12,889

See Note 7 — "Warrants" for additional information related to the determination of fair value of the warrants.

The carrying amounts reported in the balance sheets for accounts receivable, accounts payable, and other current monetary assets and liabilities approximate fair value because of the immediate or short-term maturity of these financial instruments.