Organization and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2012

Organization and Summary of Significant Accounting Policies [Abstract]

Company fair value hierarchy for assets and liabilities measured at fair value on a recurring basis

	September 30, 2012								December 31, 2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents (1)	$	18,038	$	0	$	0	$	18,038	$	36,959	$	0	$	0	$	36,959
Liabilities:
Derivative—warrants (2)		0		0		170		170		0		0		78		78
Equity:
Warrants (3)		0		0		0		0		0		0		209		209
	$	0	$	0	$	170	$	170	$	0	$	0	$	287	$	287

(1) Included in cash and cash equivalents and restricted cash on the accompanying condensed consolidated balance sheets.

(2) Represents warrants issued in February 2008 and October 2009, both of which qualified for liability accounting. The warrants issued in 2008 had a fair value of zero as of September 30, 2012 and December 31, 2011, using significant unobservable inputs (Level 3). The warrants issued in 2009 had a fair value of $0.2 million and $0.1 million calculated using the Black-Scholes Merton methodology, and were classified within other long term liabilities at September 30, 2012 and December 31, 2011, using significant unobservable inputs (Level 3). Inputs for the Black-Scholes Merton methodology were consistent with the inputs used for the Company’s share based compensation expense adjusted for the warrants’ expected life.

(3) Represents warrants issued in October 2011 in conjunction with credit facilities, which qualified for equity accounting. The warrants issued had a fair value of $0.2 million as of December 31, 2011 calculated using the Black-Scholes Merton methodology, and were classified within stockholders’ equity at December 31, 2011, using significant unobservable inputs (Level 3).

Reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs

The following table presents a reconciliation of the assets and liabilities measured at fair value on a quarterly basis using significant unobservable inputs (Level 3) from January 1, 2012 to September 30, 2012 (in thousands):

	Derivative Liability – Warrants
Balance at January 1, 2012	$	78
Adjustment to fair value included in earnings (1)		324
Balance at March 31, 2012		402
Adjustment to fair value included in earnings (1)		(232	)
Balance at June 30, 2012	$	170
Adjustment to fair value included in earnings (1)		0
Balance at September 30, 2012	$	170

(1) The derivatives were revalued at the end of the reporting period and the resulting difference is included in the results of operations. For the three and nine months ended September 30, 2012, the net adjustment to fair value is included in “Gain (loss) on net change in fair value of derivative assets and liabilities” on the accompanying condensed consolidated statements of comprehensive income (loss).

Computation of basic net income (loss) per share

Computation of basic net income (loss) per share for the three and nine months ended September 30, 2012 and 2011 was as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Numerator
Net income (loss) from continuing operations	$	(5,234	)	$	5,822		$	22,435		$	8,106
Net income (loss) from discontinued operations	$	(23	)	$	(24	)	$	(49	)	$	37
Net income (loss) attributed to Verenium Corporation	$	(5,257	)	$	5,798		$	22,386		$	8,143
	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Denominator
Weighted average shares outstanding during the period		12,765			12,612			12,664			12,612
Less: Weighted average unvested restricted shares outstanding		0			(5	)		0			(5	)
Weighted average shares used in computing basic net income (loss) per share		12,765			12,607			12,664			12,607
Net income (loss) per share, basic:
Continuing operations	$	(0.41	)	$	0.46		$	1.77		$	0.64
Discontinued operations	$	0.00		$	0.00		$	0.00		$	0.00
Attributed to Verenium Corporation	$	(0.41	)	$	0.46		$	1.77		$	0.65

Computation of diluted net income per share

	Nine Months Ended September 30, 2012
Numerator
Net income from continuing operations	$	22,435
Plus: Income impact of assumed conversions (Interest on convertible debt)		479
Net income from continuing operations plus assumed conversions	$	22,914
Net (loss) income from discontinued operations	$	(49	)
Net income attributed to Verenium Corporation	$	22,386
Plus: Income impact of assumed conversions (Interest on convertible debt)		479
Net income attributed to Verenium Corporation plus assumed conversions	$	22,865
Denominator
Weighted average shares used in computing basic net income per share		12,664
Plus: Effect of dilutive potential common shares from:
Stock options, awards and warrants		309
Convertible debt		151
Diluted weighted average common shares outstanding		13,124
Net income per share, diluted:
Continuing operations	$	1.75
Discontinued operations	$	0.00
Attributed to Verenium Corporation	$	1.74