XML 65 R20.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Fair Value Measurements | 9 Months Ended
--- | ---
Sep. 30, 2013
Fair Value Measurements [Abstract] |
Fair Value Measurements |
15. | Fair Value Measurements
Fair value measurements are market-based measurements, not entity-specific measurements. Therefore, fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. We follow a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below: · Level 1: Quoted prices in active markets for identical assets or liabilities. · Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. · Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable in active markets. 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 | )
We use quoted market prices to determine the fair value of our cash equivalents, which consist of money market funds that are classified in Level 1 of the fair value hierarchy. We valued our put liability using an option pricing theory based simulation analysis (i.e., a Monte Carlo simulation). 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 put option liability is classified as Level 3 in the fair value hierarchy. 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 | )
The Company measures the fair value of its assets acquired and liabilities assumed in business acquisition. See Note 4 for discussion of fair value measurements of certain assets recorded at fair value on a non-recurring basis. No other assets or liabilities are measured at fair value on a recurring basis, or have been measured at fair value on a non-recurring basis subsequent to initial recognition, on the accompanying consolidated condensed balance sheet as of September 30, 2013. The warrants related to our warrant liability have expired as of August 2013 and the put options were eliminated as a part of the Joint Venture acquisition.

X
- Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 33 -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 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -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 107 -Paragraph 10 -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 Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258 Reference 5: 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 Reference 6: 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 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 6 -Footnote 4 -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
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration