Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Fair Values of Financial Assets and Liabilities

The following table summarizes the fair values of our assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 (in thousands):

			Quoted Prices in				Significant Other
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	4,657	$	4,657	$	—	$	—
Liabilities
Contingent consideration	$	3,889	$	—	$	—	$	3,889

The following table summarizes the fair values of our financial assets as of December 31, 2014 (in thousands):

Quoted Prices in

Significant Other

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

Fair Value

(Level 1)

(Level 2)

(Level 3)

Assets

Cash equivalents

2,255

—

Changes in Fair Value of Level 3 Contingent Consideration

Changes in the fair value of our Level 3 contingent consideration for the year ended December 31, 2015 were as follows (in thousands):

	Contingent Consideration
Balance at December 31, 2014	$	—
Acquisition of Applimotion		965
Fair value adjustment		430
Acquisition of Lincoln Laser		2,344
Acquisition of Skyetek		150
Balance at December 31, 2015	$	3,889

Quantitative Information Associated with Fair Value Measurement of Company’s Level 3 Financial Instrument

There were no Level 3 assets or liabilities during the year ended December 31, 2014.

The following table provides quantitative information associated with the fair value measurement of the Company’s Level 3 liabilities:

Liability

December 31, 2015 Fair Value

(in thousands)

Valuation Technique

Unobservable Inputs

Percentage Applied

Contingent consideration (Applimotion)

$1,395

Monte Carlo

method

Historical and projected revenues for fiscal years 2015 to 2017

Revenue volatility

Cost of debt

WACC

N/A

87.3%

2.82%

11.1%

Contingent consideration (Lincoln Laser)

$2,344

Monte Carlo

method

Projected revenues for fiscal year 2016

Revenue volatility

Cost of debt

WACC

N/A

37.1%

4.7%

9.8%