Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

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
	March 31, 2015
	(unaudited)
					Significant
	Total Carrying		Quoted Prices		Other		Significant
	Value at		in Active		Observable		Unobservable
	March 31,		Markets		Inputs		Inputs
	2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	25,810	$	25,810	$	—	$	—
Marketable securities	39,026		—		39,026		—
Long term marketable securities	27,315		—		27,315		—
Marketable securities - restricted (SERP)	267		—		267		—
Total assets at fair value	$	92,418	$	25,810	$	66,608	$	—

Liabilities:
Derivative liabilities	$	2,691	$	—	$	—	$	2,691

	Fair Value Measurements at
	December 31, 2014
					Significant
	Total Carrying		Quoted Prices		Other		Significant
	Value at		in Active		Observable		Unobservable
	December 31,		Markets		Inputs		Inputs
	2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	36,396	$	36,396	$	—	$	—
Marketable securities	37,940		—		37,940		—
Long term marketable securities	19,816		—		19,816		—
Marketable securities - restricted (SERP)	305		—		305		—
Total assets at fair value	$	94,457	$	36,396	$	58,061	$	—

Liabilities:
Derivative liabilities	$	6,564	$	—	$	—	$	6,564

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, 2014 and March 31, 2015 that are included in the Non-Current Liabilities section of the Consolidated Balance Sheets, in thousands:

	Three Months ended
	March 31,
	2015
	(unaudited)

Balance at December 31, 2014	$	6,564

Changes in fair value of derivative liabilities included in earnings	49
Reduction due to conversion of debt to equity	(3,922		)

Balance at March 31, 2015	$	2,691

Schedule of unrestricted marketable securities

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

At March 31, 2015 (unaudited):

Available for Sale		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Corporate debt securities		$	66,406		$	15		$	(80	)	$	66,341

At December 31, 2014:

Available for Sale		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Corporate debt securities		$	57,910		$	4		$	(158	)	$	57,756

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:

	March 31,
	2015
	(unaudited)
Less Than 1 Year	$	39,026
1-5 years	27,315
Greater Than 5 Years	—
Total	$	66,341

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 March 31, 2015		$12.09 per share
Credit Spread		1388 bps
Term		2.1 years
Dividend Yield		0.0%

Warrant to purchase common stock

Fair value of financial instruments

Schedule of assumptions used to calculate fair value of liabilities

Exercise Price		$4.00 - $5.00 per share
Volatility		65%
Stock Price as of March 31, 2015		$12.09 per share
Term		5.8 - 6.8 years
Dividend Yield		0.0%
Risk-Free Rate		1.5% -1.7%

- 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.

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