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Fair Value on Financial Instruments
 6 Months Ended
Jun. 30, 2012
Fair Value on Financial Instruments [Abstract]  
Fair Value on Financial Instruments

Note 2. Fair Value on Financial Instruments

The fair values of certain of the Company’s financial assets and liabilities were determined using the following inputs at June 30, 2012 (in thousands):

 

                                 
          Quoted
Prices in
Active
Markets for
Identical
Assets		     Significant
Other
Observable
Inputs		     Significant
Unobservable
Inputs		  
    Total     (Level 1)     (Level 2)     (Level 3)  

Money market funds (1)

   $ 9,214     $ 9,214     $ 0     $ 0  

United States government agency securities (2)

     0       0       0       0  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total financial assets

   $ 9,214     $ 9,214     $ 0     $ 0  
   

 

 

    

 

 

    

 

 

    

 

 

  

Warrant liability (3)

   $ 8,749     $ 0     $ 0     $ 8,749  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total financial liabilities

   $ 8,749     $ 0     $ 0     $ 8,749  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

 

(1) Included in cash and cash equivalents on the Company’s condensed consolidated balance sheets.
(2) Included in short-term investments on the Company’s condensed consolidated balance sheets.
(3) Included in current liabilities on the Company’s condensed consolidated balance sheets.

The fair values of certain of the Company’s financial assets and liabilities were determined using the following inputs at December 31, 2011 (in thousands):

 

                                 
          Quoted
Prices in
Active
Markets for
Identical
Assets		     Significant
Other
Observable
Inputs		     Significant
Unobservable
Inputs		  
    Total     (Level 1)     (Level 2)     (Level 3)  

Money market funds (1)

   $ 8,683     $ 8,683     $ 0     $ 0  

United States government agency securities (2)

     287       0       287       0  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total financial assets

   $ 8,970     $ 8,683     $ 287     $ 0  
   

 

 

    

 

 

    

 

 

    

 

 

  

Warrant liability (3)

   $ 7,979     $ 0     $ 0     $ 7,979  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total financial liabilities

   $ 7,979     $ 0     $ 0     $ 7,979  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Included in cash and cash equivalents on the Company’s condensed consolidated balance sheets.
(2) Included in short-term investments on the Company’s condensed consolidated balance sheets.
(3) Included in current liabilities on the Company’s condensed consolidated balance sheets.

A reconciliation of the beginning and ending balances for warrant liability using significant unobservable inputs (Level 3) from December 31, 2011, to June 30, 2012, was as follows (in thousands):

 

         

Balance at December 31, 2011

   $  7,979  

Increase in fair value of warrants

     787  

Settlement of warrants exercised

     (17 ) 
   

 

 

  

Balance at June 30, 2012

   $ 8,749  
   

 

 

  

See Note 1 and 10 in the Notes to Condensed Consolidated Financial Statements for further information regarding the Company’s valuation techniques and unobservable inputs for warrant liability using significant unobservable inputs (Level 3).

The Company did not have any transfers among fair value measurement levels during the six months ended June 30, 2012.