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Fair Value Measurements
 3 Months Ended
Mar. 31, 2012
Fair Value Measurements  
Fair Value Measurements

 

3.       Fair Value Measurements

 

The Company measures certain assets and liabilities at fair value on a recurring basis.  Fair value represents the amount that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is determined based upon assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

·                             Level 1 inputs: Quoted prices (unadjusted) for identical assets or liabilities in active markets;

 

·                             Level 2 inputs: Inputs, other than quoted prices included in Level 1 that are observable either directly or indirectly; and

 

·                             Level 3 inputs: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy described above. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

 

See Note 5 for disclosures related to the fair value of the Company’s warrants.  The Company does not have any other assets or liabilities on the balance sheet as of March 31, 2012 that are measured at fair value.