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Fair Value Measurements
 12 Months Ended
Dec. 31, 2012
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS

(11) FAIR VALUE MEASUREMENTS

The Company measures certain assets and liabilities pursuant to accounting guidance which establishes a three-tier fair value hierarchy and prioritizes the inputs used in measuring fair value. These tiers include:

 

  •  

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

 

  •  

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

 

  •  

Level 3: Unobservable inputs are used when little or no market data is available.

 

The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2012, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:

 

                 
          Significant  
          Unobservable  
          Inputs  
    December 31, 2012     (Level 3)  

Liabilities:

                

Contingent consideration

   $ 104     $ 104  

The fair value of the contingent consideration was determined using a discounted cash flow model at the acquisition date and is revalued at each reporting date or more frequently if circumstances dictate based on changes in the discount periods and rates, changes in the timing and amount of the revenue estimates and changes in probability assumptions with respect to the likelihood of achieving the obligations. The change in the fair value of this obligation and the accretion expense related to the net increase in the net present value of the contingent liability totaled $31 for the year ended December 31, 2012. The Company did not have any Level 3 liabilities at December 31, 2011. No contingent payments were made during the year.

Changes in the fair value of these obligations are recorded as income or expense within the line item “Other income (expense)” in the Company’s consolidated statements of operations. Accretion expense related to the increase in the net present value of the contingent liabilities is also included in the line item “Other income (expense)” in the Company’s consolidated statements of operations. The fair value measurement is based on significant inputs not observable in the market, which are referred to as Level 3 inputs. Changes in the fair value of the Level 3 liabilities for the year ended December 31, 2012:

 

         

Balance at beginning of 2012

   $ —    

Additions (Note 5)

     135  

Accretion expense

     21  

Change in fair value of contingent consideration

     (52 ) 
   

 

 

  

Balance at end of 2012

   $ 104  
   

 

 

  

As of December 31, 2012 the Company modified its financial forecasts for NeuroDyne which resulted in a change in its sales-based performance target.