Fair Value Measurement and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurement of Assets and Liabilities

Assets and liabilities of the Company measured at fair values on a recurring basis as of September 30, 2013 and December 31, 2012 are summarized as follows:

	September 30, 2013			Level 1		Level 2			Level 3
Assets
Cash and cash equivalents	$	2,518,377		$	2,518,377	$	—		$	—
Total Assets	$	2,518,377		$	2,518,377	$	—		$	—
Liabilities
Contingent consideration	$	2,868,734		$	—	$	—		$	2,868,734
Debt discount		(99,682	)		—		(99,682	)		—
Total Liabilities	$	2,769,052		$	—	$	(99,682	)	$	2,868,734

	December 31, 2012			Level 1		Level 2			Level 3
Assets
Cash and cash equivalents	$	3,307,822		$	3,307,822	$	—		$	—
Total Assets	$	3,307,822		$	3,307,822	$	—		$	—
Liabilities
Contingent consideration	$	4,759,257		$	—	$	—		$	4,759,257
Debt discount		(129,587	)		—		(129,587	)		—
Total Liabilities	$	4,629,670		$	—	$	(129,587	)	$	4,759,257

Summary of Rollforward of Fair Value

The following table provides a rollforward of the fair value, as determined by Level 3 inputs, of the contingent consideration.

	September 30, 2013
Outstanding balance at January 1, 2013	$	4,759,257
Payments		(1,435,548	)
Change in fair value included in earnings		(478,099	)
Accrued interest		23,124
Outstanding balance at September 30, 2013	$	2,868,734

Carrying Amounts and Fair Values of Company's Debt Obligations

The carrying amounts and fair values of the Company’s debt obligations are as follows:

	September 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, net of debt discount	$	4,900,318	$	4,900,318	$	6,370,413	$	6,370,413
Debt discount		99,682		99,682		129,587		129,587
Subordinated notes payable		4,000,000		4,000,000		4,000,000		4,000,000
Related party subordinated notes payable		2,000,000		2,000,000		2,000,000		2,000,000
Total debt obligations	$	11,000,000	$	11,000,000	$	12,500,000	$	12,500,000