Fair Value Measurements

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 9 — Fair Value Measurements

Liabilities measured at fair value (in thousands) on a recurring basis are summarized as follows:

							Carrying
	Fair Value Measurements Using Inputs						Amount at
Financial Instruments	Level 1		Level 2		Level 3		September 30, 2016
Liabilities:
Derivative liability	$	-	$	1,369	$	-	$	1,369
Total	$	-	$	1,369	$	-	$	1,369

As described further in Note 6, the derivative liability is related to warrants to purchase 1,189,492 shares of common stock issued by the Company in connection with our Convertible Note, which included a down-round protection on the warrants. These warrants were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation. The fair value of these warrants were $6.0 million at inception. The Company recognized $0.9 million of other expense for the nine months ended September 30, 2016 in the accompanying consolidated statements of operations, resulting from the increase in the fair value of the derivative liability at September 30, 2016 as compared to December 31, 2015. The derivative liability will continue to be measured at fair value, with changes in fair value recognized in earnings, until the warrants are exercised, expire or are otherwise extinguished.