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Fair Value on Financial Instruments
 9 Months Ended
Sep. 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 September 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)

   $ 10,263     $ 10,263     $ 0     $ 0  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total financial assets

   $ 10,263     $ 10,263     $ 0     $ 0  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Warrant liability (2)

   $ 7,876     $ 0     $ 0     $ 7,876  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total financial liabilities

   $ 7,876     $ 0     $ 0     $ 7,876  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Included in cash and cash equivalents on the Company’s condensed consolidated balance sheets.
(2) 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 September 30, 2012, was as follows (in thousands):

 

         

Balance at December 31, 2011

   $ 7,979  

Decrease in fair value of warrants

     (86 ) 

Settlement of warrants exercised

     (17 ) 
   

 

 

  

Balance at September 30, 2012

   $ 7,876  
   

 

 

  

See Notes 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 nine months ended September 30, 2012.