Fair Value Measurement and Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value Measurement and Fair Value of Financial Instruments [Abstract]

FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 13 — FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company follows ASC 820-10 for fair value measurements. ASC 820-10 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard provides a consistent definition of fair value, which focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard also prioritizes, within the measurement of fair value, the use of market-based information over entity specific information and establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date.

The hierarchy established under ASC 820-10 gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

Level 1 — Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. As required by ASC 820-10, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

Level 2 — Pricing inputs are quoted prices for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments.

Level 3 — Pricing inputs are unobservable for the investment, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Level 3 includes investments that are supported by little or no market activity.

Assets and liabilities of the Company measured at fair values on a recurring basis as of December 31, 2011 and 2010 are summarized as follows:

	December 31, 2011		(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	1,837,801	$	1,837,801	$	—	$	—
Investments		716,936		—		—		716,936
Total Assets	$	2,554,737	$	1,837,801	$	—	$	716,936

Liabilities
Contingent consideration	$	4,739,982	$	—	$	—	$	4,739,982
Total Liabilities	$	4,739,982	$	—	$	—	$	4,739,982
	December 31, 2010		(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	3,559,288	$	3,559,288	$	—	$	—
Total Assets	$	3,559,288	$	3,559,288	$	—	$	—