XML 51 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.6

8. FAIR VALUE MEASUREMENTS | 9 Months Ended
--- | ---
Sep. 30, 2012
Fair Value Measurements |
8. FAIR VALUE MEASUREMENTS. | The fair value hierarchy prioritizes the inputs used in valuation techniques into three levels as follows:
| · | Level 1 – Observable inputs – unadjusted quoted prices in active markets for identical assets and liabilities;
| · | Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data; and
| · | Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable. For fair value measurements using significant unobservable inputs, a description of the inputs and the information used to develop the inputs is required along with a reconciliation of Level 3 values from the prior reporting period.
The Company valued its warrants using a Monte Carlo Binomial Lattice-Based valuation methodology, adjusted for marketability restrictions. Significant assumptions used in the valuations for the dates noted are as follows (fair value in thousands): As of September 30, 2012:
Original Issue Date |  |  | Exercise Price |  |  |  | Volatility |  |  |  | Risk Free Int Rate |  |  |  | Term (yrs) |  |  |  | Marketability Discount |  |  | Fair Value |
October 2010 |  | $ | 0.12 |  |  |  | 75.6% |  |  |  | 0.62% |  |  |  | 5.10 |  |  |  | 48.0% |  |  | $ | 43 |
December 2011 |  | $ | 0.84 |  |  |  | 77.7% |  |  |  | 0.47% |  |  |  | 4.21 |  |  |  | 55.9% |  |  |  | 585 |
July 2012 |  | $ | 0.50 |  |  |  | 76.8% |  |  |  | 0.62% |  |  |  | 4.76 |  |  |  | 57.5% |  |  |  | 3,351 |
July 2012 |  | $ | 0.43 |  |  |  | 73.9% |  |  |  | 0.17% |  |  |  | 1.26 |  |  |  | 57.5% |  |  |  | 858 |
September 2012 |  | $ | 0.59 |  |  |  | 74.1% |  |  |  | 0.31% |  |  |  | 3.00 |  |  |  | 58.5% |  |  |  | 1,658 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 6,495 |
As of December 31, 2011:
Original Issue Date |  |  | Exercise Price |  |  |  | Volatility |  |  |  | Risk Free Int Rate |  |  |  | Term (yrs) |  |  |  | Marketability Discount |  |  | Fair Value |
October 2010 |  | $ | 0.45 |  |  |  | 68.0% |  |  |  | 1.09% |  |  |  | 5.90 |  |  |  | 47.4% |  |  | $ | 226 |
December 2011 |  | $ | 1.50 |  |  |  | 68.0% |  |  |  | 0.83% |  |  |  | 4.96 |  |  |  | 52.0% |  |  |  | 1,695 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,921 |
The changes in the fair value of the Company’s Level 3 inputs were as follows (in thousands):
Balance, December 31, 2011 |  | $ | 1,921 |
Warrant exercises |  |  | (112 | )
Adjustments to fair value for the period |  |  | 33 |
Balance, March 31, 2012 |  |  | 1,842 |
Adjustments to fair value for the period |  |  | (1,285 | )
Balance, June 30, 2012 |  |  | 557 |
July Offering |  |  | 3,380 |
September Offering |  |  | 1,658 |
Adjustments to fair value for the period |  |  | 900 |
Balance, September 30, 2012 |  | $ | 6,495 |
Other Derivative Instruments – The Company’s other derivative instruments consist of commodity positions. The fair value of the commodity positions are based on quoted prices on the commodity exchanges and are designated as Level 1. The following table summarizes fair value measurements by level at September 30, 2012 (in thousands):
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity contracts(1) |  | $ | 514 |  |  |  | – |  |  |  | – |  |  | $ | 514 |
Total Assets |  | $ | 514 |  |  | $ | – |  |  | $ | – |  |  | $ | 514 |
__________ (1) Included in other current assets in the consolidated balance sheets.
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Warrants |  | $ | – |  |  | $ | – |  |  | $ | 6,495 |  |  | $ | 6,495 |
Commodity contracts(1) |  |  | 291 |  |  |  | – |  |  |  | – |  |  |  | 291 |
Total Liabilities |  | $ | 291 |  |  | $ | – |  |  | $ | 6,495 |  |  | $ | 6,786 |
__________ (1) Included in accrued liabilities in the consolidated balance sheets. The following tables summarize fair value measurements by level at December 31, 2011 (in thousands):
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity contracts(1) |  | $ | 244 |  |  |  | – |  |  |  | – |  |  | $ | 244 |
Total Assets |  | $ | 244 |  |  | $ | – |  |  | $ | – |  |  | $ | 244 |
__________ (1) Included in other current assets in the consolidated balance sheets.
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Warrants(1) |  | $ | – |  |  | $ | – |  |  | $ | 1,921 |  |  | $ | 1,921 |
Commodity contracts(2) |  |  | 500 |  |  |  | – |  |  |  | – |  |  |  | 500 |
Total Liabilities |  | $ | 500 |  |  | $ | – |  |  | $ | 1,921 |  |  | $ | 2,421 |
__________ (1) Included in other liabilities in the consolidated balance sheets. (2) Included in accrued liabilities in the consolidated balance sheets.

X
- Details
Name: | peix_FairValueMeasurementsAbstract
Namespace Prefix: | peix_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration