3. Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 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 the Company’s debt instruments are detailed as follows (in thousands):

		As of December 31, 2017				As of December 31, 2016
		Fair		Carrying		Fair		Carrying
		Value		Value		Value		Value
4.25% Convertible Notes	$	36,208	$	65,732	$	32,595	$	104,071
Exchangeable Notes		21,375		8,275		-		-
Delayed draw term loan		30,300		27,897		-		-
Derivative liability		93		93		230		230
Contingent consideration		1,358		1,358		2,403		2,403
Treximet Secured Notes		139,201		167,551		147,551		183,353
Total	$	228,535	$	270,906	$	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 years ended December 31, 2017 and 2016 (in thousands).

		December 31,
		2017		2016
Derivative liability:
Balance at beginning of year	$	230	$	9,165
Partial conversion		(90)		-
Remeasurement adjustments - loss (gains) included in earnings		(47)		(8,935)
Ending balance	$	93	$	230
Contingent consideration:
Balance at beginning of year	$	2,403	$	14,055
Remeasurement adjustments - loss (gains) included in earnings		(1,045)		(11,652)
Ending balance	$	1,358	$	2,403