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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2013
Fair Value Measurements [Abstract] |
Assets and Liabilities Measured at Fair Value | The following table provides a summary of the recognized assets and liabilities that we measure at fair value on a recurring basis:
|  | Balance as of |  |  | Basis of Fair Value Measurements |
|  | September 30, 2013 |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 4,644,000 |  |  | $ | 4,644,000 |  |  | $ | — |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Warrant liability |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | Balance as of |  |  | Basis of Fair Value Measurements |
|  | December 31, 2012 |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 6,145,000 |  |  | $ | 6,145,000 |  |  | $ | — |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Put option liability |  | $ | (2,250,000 | ) |  | $ | — |  |  | $ | — |  |  | $ | (2,250,000 | )
Warrant liability |  | $ | (418,000 | ) |  | $ | — |  |  | $ | — |  |  | $ | (418,000 | )
Level 3 Put Option Liability and Warrant Liability | The following table summarizes the change in our Level 3 put option liability value:
Put option liability |  | Three months ended September 30, 2013 |  |  | Nine months ended September 30, 2013 |
Beginning balance |  | $ | — |  |  | $ | (2,250,000 | )
Decrease in fair value recognized in operating expenses |  |  | — |  |  |  | 2,250,000 |
Ending balance |  | $ | — |  |  | $ | — |
Put option liability |  | Three months ended September 30, 2012 |  |  | Nine months ended September 30, 2012 |
Beginning balance |  | $ | (2,100,000 | ) |  | $ | (1,910,000 | )
Increase in fair value recognized in operating expenses |  |  | (300,000 | ) |  |  | (490,000 | )
Ending balance |  | $ | (2,400,000 | ) |  | $ | (2,400,000 | )
Common stock purchase warrants issued in connection with our August 2008 private equity placement do not trade in an active securities market, and as such, we estimated the fair value of these warrants using the option pricing model (see note 5). Some of the significant inputs are observable in active markets, such as common stock market price, volatility, and risk free rate. The fair value of these warrants also incorporate our assumptions about future equity issuances and their impact to the down-round protection feature. Because some of the inputs to our valuation model are either not observable quoted prices or are not derived principally from or corroborated by observable market data by correlation or other means, the warrant liability is classified as Level 3 in the fair value hierarchy. The following table summarizes the change in our Level 3 warrant liability value:
Warrant liability |  | Three months ended September 30, 2013 |  |  | Nine months ended September 30, 2013 |
Beginning balance |  | $ | — |  |  | $ | (418,000 | )
Decrease in fair value recognized in operating expenses |  |  | — |  |  |  | 418,000 |
Ending balance |  | $ | — |  |  | $ | — |
Warrant liability |  | Three months ended September 30, 2012 |  |  | Nine months ended September 30, 2012 |
Beginning balance |  | $ | (1,008,000 | ) |  | $ | (627,000 | )
Increase in fair value recognized in operating expenses |  |  | (863,000 | ) |  |  | (1,244,000 | )
Ending balance |  | $ | (1,871,000 | ) |  | $ | (1,871,000 | )

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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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph c -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. + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258 + Details
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