3. Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring and nonrecurring basis

The fair and carrying value of our debt instruments are detailed as follows (in thousands):

		As of June 30, 2017				As of December 31, 2016
		Fair		Carrying		Fair		Carrying
		Value		Value		Value		Value
4.25% Convertible Notes	$	41,408	$	106,377	$	32,595	$	104,071
Derivative liability		314		314		230		230
Contingent consideration		1,863		1,863		2,403		2,403
Treximet Secured Notes		138,739		173,105		147,551		183,353
Total	$	182,324	$	281,659	$	182,779	$	290,057

Fair Value Measurements Using Significant Unobservable Input (Tables)

For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the periods (in thousands).

		As of and for the		As of and for the
		Six months Ended		Year Ended
		June 30, 2017		December 31, 2016
Derivative liability:
Balance at beginning of year	$	230	$	9,165
Initial measurement of derivative liability		-		-
Remeasurement adjustments - loss (gains) included in earnings		84		(8,935)
Ending balance	$	314	$	230
Contingent consideration:
Balance at beginning of year	$	2,403	$	14,055
Initial measurement of contingent consideration		-		-
Remeasurement adjustments - loss (gains) included in earnings		(540)		(11,652)
Ending balance	$	1,863	$	2,403