Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Summary of Company's Financial Assets Carried at Fair Value

The following table summarizes the basis used to measure certain of the Company’s financial assets that are carried at fair value:

Bank deposits are classified within the second level of the fair value hierarchy and the fair value of those assets are determined based upon quoted prices for similar assets in active markets.


	Basis of Fair Value Measurements
	Balance		Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Balance at December 31, 2012
Cash equivalents - money market funds	$	49,209,098	$	49,209,098	$	—	$	—
Cash equivalents - bank deposits		5,037,169		—		5,037,169		—
Short-term marketable securities - U.S. government agency securities		100,160,889		90,138,019		10,022,870		—
Contingent consideration liability		161,494		—		—		161,494
Balance at June 30, 2013
Cash equivalents - money market funds		48,995,405		48,995,405		—		—
Cash equivalents - bank deposits		5,038,325		—		5,038,325		—
Short-term marketable securities - U.S. government agency securities		100,357,728		95,358,878		4,998,850		—
Contingent consideration liability		176,454		—		—		176,454

Reconciliation of Beginning and Ending Level 3 Liability

A reconciliation of the beginning and ending Level 3 liability is as follows:


	Six Months Ended June 30, 2012		Six Months Ended June 30, 2013
Balance beginning of period	$	212,536	$	161,494
Change in fair value (included within research and development expense)		22,032		14,960


Balance end of period	$	234,568	$	176,454

- 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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