Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Note 5. Related Party Transactions

On September 6, 2013, in connection with entering into a credit facility, the Company issued warrants to an affiliate of a stockholder, Carlson Capital, L.P. (the “Stockholder”), for 100 thousand shares of the Company’s common stock at a strike price of $13.88. The warrants have a price anti-dilution mechanism that was triggered by the price that shares were sold by the Company in a rights offering in 2014, and as a result, the strike price of the warrants was reduced to $13.48.

Due to certain provisions within the warrant agreement, the warrants meet the definition of a derivative and do not qualify for a scope exception, as it is not considered indexed to the Company’s stock. As such, the warrants with a value of $0.2 million and $0.3 million as of December 31, 2016 and 2015, respectively, are reflected as a warrant liability in the consolidated balance sheets. An unrealized gain of $0.1 million and an unrealized loss of $0.2 million were included in other income (expense), net in the consolidated statements of operations for the years ended December 31, 2016 and 2015, respectively. The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions:

	December 31,
	2016			2015
Dividend rate		—			—
Risk-free rate		1.9	%		1.8	%
Expected life (years)		3.7			4.7
Expected volatility		34.1	%		33.3	%

The changes on the value of the warrant liability during the years ended December 31, 2016 and 2015 were as follows (in thousands):

Fair value – December 31, 2014	$	421
Issuances		—
Change in fair value		(162	)
Fair value – December 31, 2015		259
Issuances		—
Changes in fair value		(70	)
Fair value – December 31, 2016	$	189

During the year ended December 31, 2015, the Company recognized interest expense totaling $0.4 million, consisting of debt issuance cost amortization. The Company did not recognize any interest expense during the year ended December 31, 2016.

Other

The Company provides investment advisory services to an affiliate of a stockholder. During, and as of the end of the years ended, December 31, 2016 and 2015, there was no revenue or accounts receivable from this affiliate.