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FAIR VALUE
 3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
FAIR VALUE
3. FAIR VALUE

 

Fair Value Measurements

 

As defined in ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”), fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

 

• Level 1:   Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

 

• Level 2:   Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly.

 

• Level 3:   Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

 

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk in its measurement of fair value.

 

The fair value of the Company’s financial assets that are measured on a recurring basis as of December 31, 2015 consisted of the following (in $000s):

 

    Level 1     Level 2     Level 3     Total  
ASSETS                                
Cash equivalents   $ 11,953     $ —     $ —     $ 11,953  
Total assets   $ 11,953     $ —     $ —     $ 11,953  

 

The fair value of the Company’s financial assets and liabilities that are measured on a recurring basis as of March 31, 2016 consisted of the following (in $000s):

 

    Level 1     Level 2     Level 3     Total  
ASSETS                                
Cash equivalents   $ 11,962     $ —     $ —     $ 11,962  
Total assets   $ 11,962     $ —     $ —     $ 11,962