Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of fair value of the financial assets and liabilities

In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value, in thousands:

			Fair Value Measurements at
			September 30, 2014
			(unaudited)
					Significant
	Total Carrying		Quoted Prices		Other		Significant
	Value at		in Active		Observable		Unobservable
	September 30,		Markets		Inputs		Inputs
	2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	37,780	37,780		—		—
Marketable securities	34,783		—		34,783		—
Long term marketable securities	15,763		—		15,763		—
Marketable securities - restricted (SERP)	305		—		305		—
Total assets at fair value	$	88,631	$	37,780	$	50,851	$	—
Liabilities:
Derivative liabilities	$	7,258	$	—	$	—	$	7,258

			Fair Value Measurements at
			December 31, 2013
					Significant
	Total Carrying		Quoted Prices		Other		Significant
	Value at		in Active		Observable		Unobservable
	December 31,		Markets		Inputs		Inputs
	2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	32,980	$	32,980	$	—	$	—
Marketable securities	49,211		—		49,211		—
Long term marketable securities	8,756		—		8,756		—
Marketable securities - restricted (SERP)	305		—		305		—
Total assets at fair value	$	91,252	$	32,980	$	58,272	$	—
Liabilities:
Derivative liabilities	$	12,644	$	—	$	—	$	12,644

Schedule of Level 3 liabilities included in Non-current Liabilities on the Balance Sheet

The following table presents information about the Company’s Level 3 liabilities as of December 31, 2013 and September 30, 2014 that are included in the Non-Current Liabilities section of the Consolidated Balance Sheets, in thousands:

	Nine Months ended
	September 30, 2014
	(unaudited)

Balance at December 31, 2013	$	12,644
Changes in fair value of derivative liabilities included in earnings	(2,115		)
Reduction due to conversion of debt to equity	(3,271		)
Balance at September 30, 2014	$	7,258

Schedule of unrestricted marketable securities

Unrestricted marketable securities held by the Company were as follows, in thousands:

At September 30, 2014, unaudited:

Available for Sale		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Corporate debt securities		$	50,581		$	14		$	(49	)	$	50,546

At December 31, 2013:

Available for Sale		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Corporate debt securities		$	57,967		$	33		$	(33	)	$	57,967

Schedule of contractual maturities of the unrestricted available for sale marketable securities held

The contractual maturities of the unrestricted available for sale marketable securities held by the Company were as follows, in thousands:

	September 30, 2014
	(unaudited)

Less Than 1 Year	$	34,783
1 - 5 Years	15,763
Greater Than 5 Years	—
Total	$	50,546

Warrant to Purchase Common Stock

Fair value of financial instruments

Schedule of assumptions used to calculate fair value of liabilities

Exercise Price		$4 - $5 per share
Volatility		50%
Stock Price as of September 30, 2014		$8.69 per share
Term		6.3 - 7.2 years
Dividend Yield		0.0%
Risk-Free Rate		2.03% - 2.18%

Interest Make Whole Liability

Fair value of financial instruments

Schedule of assumptions used to calculate fair value of liabilities

Volatility		45%
Stock Price as of September 30, 2014		$8.69 per share
Credit Spread		1254 bps
Term		2.6 years
Dividend Yield		0.0%

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details