Derivative Financial Instruments

9 Months Ended

Sep. 30, 2016

Derivative Financial Instruments

9. Derivative Financial Instruments

The Company determined that certain embedded features related to the Series 1 preferred stock are derivative financial instruments.

Fair values of derivative instruments to be classified as derivative liabilities on the balance sheet consist of the following:

($ in thousands)
Liability derivates:	Balance Sheet Location		Fair Value
September 30, 2016:
Derivative liabilities		Liabilities	$	694

The change in the derivative liability for the three months ended September 30, 2016 consists of the following:

($ in thousands)
	Fair Value
Balance, June 30, 2016	$	694
Dividends		21
Mark-to-market		(21	)
Balance, September 30, 2016	$	694

See Notes 3 and 8 for additional discussion regarding the accounting for and valuation of these derivative financial instruments.