Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2012

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis

The following table summarizes the Company’s assets and liabilities carried at fair value measured on a recurring basis at June 30, 2012 and 2011 by valuation hierarchy:


	June 30, 2012
Description	Total Carrying Value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets:
Cash equivalents	$	4,292	$	4,042	$	250	$	—
Marketable securities:
Corporate bonds		5,950		3,684		2,266		—
Commercial paper		3,046		—		3,046		—
Certificates of Deposit		950		—		950		—

	$	14,238	$	7,726	$	6,512	$	—

Liabilities:
Derivative liabilities	$	—	$	—	$	—	$	—

	June 30, 2011
Description	Total Carrying Value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets:
Cash equivalents	$	8,678	$	8,678	$	—	$	—
Marketable securities:
Corporate bonds		7,312		5,792		1,520		—
U.S. Government obligations		1,205		—		1,205		—
Commercial paper		2,699		—		2,699		—

	$	19,894	$	14,470	$	5,424	$	—

Liabilities:
Derivative liabilities	$	170	$	—	$	—	$	170

Fair Value Valuation Assumptions

The Company’s derivative liabilities were classified as Level 3 and valued using the Black-Scholes model. At June 30, 2012 and 2011, the fair values were derived by applying the following assumptions:


	June 30,
	2012	2011
Expected term (in years)	0.05	1.05
Stock volatility	90%	95%
Risk-free interest rate	0.03%	0.19%
Expected dividends	0%	0%

Liabilities Measured at Fair Value on Recurring Basis

The reconciliation of the Company’s liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows:


	June 30,
	2012		2011
Balance at beginning of year	$	170	$	1,310
Change in fair value of derivatives—other income		170		1,140

Balance at end of year	$	—	$	170

Summary of Assets Carried at Fair Value Measured on Nonrecurring Basis

The following table summarizes the Company’s assets carried at fair value measured on a nonrecurring basis at December 31, 2011 and the losses recorded for the six month period then ended:


	December 31, 2011
	Total Carrying Value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total Losses
	(In thousands)
Finite-lived intangible assets	$	4,596	$	—	$	—	$	4,596	$	14,830

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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