Fair Value on Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Fair Values of Financial Assets and Liabilities

The fair values of the Company’s financial assets and liabilities were determined using the following inputs at March 31, 2015 (in thousands):


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds ⁽¹⁾	$	5,512	$	5,512	$	0	$	0
Corporate debt securities ⁽²⁾		20,552		0		20,552		0
United States government agency securities ⁽²⁾		73,407		0		73,407		0

Total financial assets	$	99,471	$	5,512	$	93,959	$	0


Warrant liability ⁽³⁾	$	4,189	$	0	$	0	$	4,189

Total financial liabilities	$	4,189	$	0	$	0	$	4,189

(1)	Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheets.

(2)	Included in short-term investments on the Company’s unaudited condensed consolidated balance sheets.

(3)	Included in current liabilities on the Company’s unaudited condensed consolidated balance sheets.

The fair values of the Company’s financial assets and liabilities were determined using the following inputs at December 31, 2014 (in thousands):


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds ⁽¹⁾	$	3,912	$	3,912	$	0	$	0
Corporate debt securities ⁽²⁾		26,088		0		26,088		0
United States government agency securities ⁽²⁾		3,426		0		3,426		0

Total financial assets	$	33,426	$	3,912	$	29,514	$	0


Warrant liability ⁽³⁾	$	10,485	$	0	$	0	$	10,485

Total financial liabilities	$	10,485	$	0	$	0	$	10,485

(1)	Included in cash and cash equivalents on the Company’s consolidated balance sheets.

(2)	Included in short-term investments on the Company’s consolidated balance sheets, except for approximately $1.0 million of corporate debt securities that are included in cash and cash equivalents on the Company’s consolidated balance sheets.

(3)	Included in current liabilities on the Company’s consolidated balance sheets.

Reconciliation of Fair Value Measurement on Liabilities Using Significant Unobservable Inputs

A reconciliation of the beginning and ending balances for warrant liability using significant unobservable inputs (Level 3) from December 31, 2014 to March 31, 2015 was as follows (in thousands):


Balance at December 31, 2014	$	10,485
Decrease in fair value of warrants		(6,296	)

Balance at March 31, 2015	$	4,189

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes 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 liability.

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