Fair Value Measurements

6 Months Ended

Jun. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

3. Fair Value Measurements

     Effective January 1, 2008, the Company implemented FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) for the Company’s financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and are re-measured and reported at fair value at least annually using a fair value hierarchy that is broken down into three levels. Level inputs are as defined as follows:

Level 1 — quoted prices in active markets for identical assets or liabilities.

Level 2 — other significant observable inputs for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 — significant unobservable inputs that reflect management’s best estimate of what market participants would use to price the assets or liabilities at the measurement date.

     The Company categorized its cash equivalents as a Level 1 hierarchy. The valuation for Level 1 was determined based on a “market approach” using quoted prices in active markets for identical assets. Valuations of these assets do not require a significant degree of judgment. The Company categorized its warrants potentially settled in cash and its common stock potentially redeemable in cash as a Level 2 hierarchy. The warrants are measured at market value on a recurring basis and are being marked to market each quarter-end until they are completely settled. The warrants are valued using the Black-Scholes method, using assumptions consistent with our application of ASC 718.

     On March 30, 2011, the Company entered into a severance agreement with its former President and Chief Executive Officer whereby, among other things, it agreed to issue shares to the former officer such that the number of shares issued times the market price of the shares on the day immediately following the separation date equal a value of $300,000. The agreement further provides that the Company will, at its option, provide a cash payment or additional shares to the former officer if necessary such that the value of 1/3 of the shares issued and 2/3 of the shares issued, respectively, at the separation date equal a guaranteed value of $100,000 as of the 90^th day following the seperation date and $200,000 as of the 180^th day following the seperation date based on the closing price of the Company’s common stock for the five days preceding each measurement date. At June 30, 2011, a liability of $200,000 was included in accrued expenses representing the guaranteed value under the severance agreement for the remaining 2/3 shares issued.

	Quoted Prices		Significant
	in		Other		Observable		Unobservable
	June 30,		Active Markets		Inputs		Inputs
Description	2011		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents	$	17,933	$	17,933	$	—	$	—
Total assets	$	17,933	$	17,933	$	—	$	—
Liabilities:
Stock options potentially settleable in cash	$	682	$	—	$	682	$	—
Warrants potentially settleable in cash		11,882		—		11,882		—
Common stock potentially settleable in cash (included in accrued expenses)		200		—		200		—
Contingent purchase price consideration		6,432		—		—		6,432
Total liabilities	$	19,196	$	—	$	12,764	$	6,432

			Quoted Prices		Significant
			in		Other
			Active		Observable		Unobservable
	December 31,		Markets		Inputs		Inputs
Description	2010		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents	$	6,891	$	6,891	$	—	$	—
Total assets	$	6,891	$	6,891	$	—	$	—
Liabilities:
Warrants potentially settleable in cash	$	3,138	$	—	$	3,138	$	—
Total liabilities	$	3,138	$	—	$	3,138	$	—

Fair Value of Financial Instruments

     The carrying amounts reported in the balance sheet for cash equivalents, accounts payable, and capital leases approximate their fair values due to their short-term nature and market rates of interest.