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Financial Instruments | 6 Months Ended
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Jun. 30, 2020
Investments All Other Investments [Abstract] |
Financial Instruments | NOTE 4. FINANCIAL INSTRUMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, as follows:
| • | Level 1—quoted prices (unadjusted) in active markets for identical assets or liabilities;
| • | Level 2—inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or
| • | Level 3—unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Cash and Cash Equivalents The Company’s money market funds are categorized as Level 1 within the fair value hierarchy. As of June 30, 2020, the Company’s cash and cash equivalents balance were as follows:
|  |  |  |  |  | Gross |  |  |  |  |  |  | Cash and |
|  |  |  |  |  | Unrealized |  |  | Fair |  |  | Cash |
|  | Cost |  |  | Losses |  |  | Value |  |  | Equivalents |
Cash |  | $ | 39,057 |  |  | $ | — |  |  | $ | 39,057 |  |  | $ | 39,057 |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  |  | 11,024 |  |  |  | — |  |  |  | 11,024 |  |  |  | 11,024 |
Total |  | $ | 50,081 |  |  | $ | — |  |  | $ | 50,081 |  |  | $ | 50,081 |
As of December 31, 2019, the Company’s cash and cash equivalents balances were as follows:
|  |  |  |  |  | Gross |  |  |  |  |  |  | Cash and |
|  |  |  |  |  | Unrealized |  |  | Fair |  |  | Cash |
|  | Cost |  |  | Losses |  |  | Value |  |  | Equivalents |
Cash |  | $ | 23,710 |  |  | $ | — |  |  | $ | 23,710 |  |  | $ | 23,710 |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  |  | 20,355 |  |  |  | — |  |  |  | 20,355 |  |  |  | 20,355 |
Total |  | $ | 44,065 |  |  | $ | — |  |  | $ | 44,065 |  |  | $ | 44,065 |
Stock Warrants All of the Company’s outstanding stock warrants are categorized as Level 3 within the fair value hierarchy. Stock warrants have been recorded at their fair value using either a probability weighted expected return model, the Monte Carlo simulation model or the Black-Scholes option-pricing model. These models incorporate contractual terms, maturity, risk-free interest rates and volatility. The value of the Company’s stock warrants would increase if a higher risk-free interest rate was used, and would decrease if a lower risk-free interest rate was used. Similarly, a higher volatility assumption would increase the value of the stock warrants, and a lower volatility assumption would decrease the value of the stock warrants. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. In April 2020, in connection with a consulting agreement between the Company and a consulting firm, the Company issued to such firm a warrant to purchase up to 50,000 shares of the Company’s common stock (the “Compensation Warrant”). The Compensation Warrant was fully vested and exercisable upon issuance, has an exercise price of $3.01 per share and expires on December 31, 2021. The holder is able to redeem the warrant for a number of shares having a value equal to the in-the-money value of the warrant. The fair value of this stock warrant is $59, which was determined using the Black-Scholes option-pricing model and was recorded in general and administrative operating expenses in the three and six months ended June 30, 2020. The Company also issued to such firm in connection with the consulting agreement an additional warrant to purchase up to 400,000 shares of the Company’s common stock (the “Performance Warrant” and collectively with the Compensation Warrant, the “2020 Stock Warrants”). The Performance Warrant has an exercise price of $3.01 per share, shall vest and become exercisable in three substantially equal installments of 133,333 shares upon the achievement of specified performance goals and/or a market condition, and expires on December 31, 2023. The fair value of the installment of the Performance Warrant tied to a market condition is $43, which was determined using a Monte Carlo simulation model and was recorded in general and administrative operating expenses in the three and six months ended June 30, 2020. The Company has not recorded any fair value with respect to the remaining installments linked to performance goals, because the achievement of such performance goals is not yet considered probable. In April 2018, in connection with the advisory agreement between the Company and a financial advisory firm, the Company issued such firm a warrant to purchase up to 20,000 shares of the Company’s common stock (“April 2018 Warrant”). The April 2018 Warrant was fully vested and exercisable upon issuance, has an exercise price of $11.73 per share and expires on April 6, 2023. The Company recorded this stock warrant at its fair value of $207 using the Black-Scholes option-pricing model. The holder is able to redeem the warrant for a number of shares having a value equal to the in-the-money value of the warrant. The April 2018 Warrant was outstanding at June 30, 2020. The following table summarizes quantitative information with respect to the significant unobservable inputs that were used to value the 2020 Stock Warrants during the six months ended June 30, 2020:
| Compensation Warrant |  |  | Performance Warrant |
Volatility |  | 88 | % |  |  | 85 | %
Risk-free rate |  | 0.23 | % |  |  | 0.34 | %
Term | 1.7 years |  |  | 3.7 years |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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