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Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 31, 2019
Fair Value Measurements |
Schedule of Financial Assets and Liabilities Carried at Fair Value on Recurring Basis | The following tables set forth the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as follows (in thousands):
|  | Fair Value Measurements at December 31, 2019 Using
|  | Quoted Prices in |  | Significant Other |  | Significant |  |  |
|  | Active Markets for |  | Observable |  | Unobservable |  |  |
|  | Identical Assets |  | Inputs |  | Inputs |  |  |
|  | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | — |  | $ | — |  | $ | 681 |  | $ | 681
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  | $ | — |  | $ | 75 |  | $ | 75
|  | Fair Value Measurements at December 31, 2018 Using
|  | Quoted Prices in |  | Significant Other |  | Significant |  |  |
|  | Active Markets for |  | Observable |  | Unobservable |  |  |
|  | Identical Assets |  | Inputs |  | Inputs |  |  |
|  | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | — |  | $ | — |  | $ | 392 |  | $ | 392
Summary of Changes in Estimated Fair Value of Level 3 Financial Assets | Equity Securities The following table provides a summary of changes in the estimated fair value of the Company’s Level 3 financial assets for the year ended December 31, 2019 (in thousands):
Balance at December 31, 2018 |  | $ | 392
Change in fair value |  |  | 289
Balance at December 31, 2019 |  | $ | 681
Schedule of Estimated Fair Value of Equity Securities Assumptions | The estimated fair value of the equity securities was calculated based on the following assumptions as of December 31, 2018:
Discount for lack of marketability |  |  | 35 | %
Estimated time to liquidity of shares |  |  | 1.45 years |
Scenario probabilities |  |  |  |
Liquidation |  |  | 20 | %
Near-term sale |  |  | 5 | %
Near-term financing |  |  | 75 | %
In the first quarter of 2019, the Company updated the methodology used to value the equity securities due to Rezolute’s completion of a Qualified Financing (see Note 4). As of December 31, 2019, the Company and its valuation specialist valued the equity securities using the closing price for Rezolute’s common stock traded on the over-the-counter exchange and adjusted for an illiquidity discount. The inputs used to calculate the illiquidity discount are based on observable and unobservable estimates and judgments and therefore is classified as a Level 3 fair value measurement. As the Company has the right and option to sell up to 5,000,000 shares of Rezolute’s common stock back to Rezolute after December 31, 2019 (see Note 4), the fair value of the equity securities was determined by dividing the total shares of Rezolute’s common stock held by the Company into two tranches based on the estimated time to a potential liquidity event. The estimated fair value of the equity securities was calculated based on the following assumptions as of December 31, 2019.
Closing common stock price on the Over-the-counter (OTC) exchange |  | $ | 0.12 |
Tranche 1: |  |  |  |
Discount for lack of marketability |  |  | 13 | %
Estimated time to liquidity of shares |  |  | 0.25 years |
Tranche 2: |  |  |  |
Discount for lack of marketability |  |  | 33 | %
Estimated time to liquidity of shares |  |  | 1.5 years |
Outstanding Long Term Debt Carrying Amount and Estimated Fair Value | The carrying amount and the estimated fair value of the Company’s outstanding long-term debt at December 31, 2019 and 2018, are as follows (in thousands):
|  | December 31, 2019 |  | December 31, 2018
|  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
SVB Loans |  | $ | 16,374 |  | $ | 16,048 |  | $ | 7,286 |  | $ | 7,281
Novartis note |  |  | 15,903 |  |  | 15,713 |  |  | 15,193 |  |  | 14,825
Total |  | $ | 32,277 |  | $ | 31,761 |  | $ | 22,479 |  | $ | 22,106

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period 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 asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of information pertaining to carrying amount and estimated fair value of short-term and long-term debt instruments or arrangements, including but not limited to, identification of terms, features, and collateral requirements. + References No definition available. + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, 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). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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