FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of financial assets and liabilities measured on a recurring basis

The fair value of the Company’s financial assets and liabilities that are measured on a recurring basis were determined using the following inputs as of December 31, 2012 (in $000s):

	Level 1		Level 2		Level 3		Total
ASSETS
Cash equivalents	$	5,523	$	6,799	$	—	$	12,322
Total assets	$	5,523	$	6,799	$	—	$	12,322

LIABILITIES
Financial instrument associated with stock purchase agreement	$	—	$	—	$	—	$	—
Economic rights	—		—		1,120		1,120
Other liabilities measured at fair value:
Warrants liability	—		—		—		—
Scottish Enterprise agreement	—		—		20		20
Other liabilities measured at fair value	—		—		20		20
Total liabilities	$	—	$	—	$	1,140	$	1,140

The fair value of the Company’s financial assets and liabilities that are measured on a recurring basis were determined using the following inputs as of June 30, 2013 (in $000s):

	Level 1		Level 2		Level 3		Total
ASSETS
Cash equivalents	$	31,404	$	800	$	—	$	32,204
Total assets	$	31,404	$	800	$	—	$	32,204

LIABILITIES
Financial instrument associated with stock purchase agreement	$	—	$	—	$	—	$	—
Other liabilities measured at fair value:
Warrants liability	—		—		—		—
Scottish Enterprise agreement	—		—		20		20
Other liabilities measured at fair value	—		—		20		20
Total liabilities	$	—	$	—	$	20	$	20

Schedule of reconciliation of the beginning and ending balance of Level 3 inputs

The following table reconciles the beginning and ending balances of Level 3 inputs for the six months ended June 30, 2013 (in $000s):

	Level 3
Balance as of December 31, 2012	$	1,140
Change in valuation of Economic Rights	(570		)
Movement of valuation of Economic Rights from Level 3 to Level 2	(550		)
Balance as of June 30, 2013	$	20

- 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.

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