Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value of Warrants that were Accounted for on a Recurring Basis Classified as Level 3 Assets

The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands):


	Three Months Ended
	March 31,
	2017
Fair value of warrants at beginning of period	$	51
Unrealized loss on fair valuation of warrants		(14)
Fair value of warrants at end of period	$	37

Summary of Valuation Techniques and Significant Unobservable Inputs Used

The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring fair value calculation categorized as Level 3 in the fair value hierarchy at March 31, 2017 and December 31, 2016:


March 31, 2017
	Valuation	Valuation	Unobservable	Range of
Name	Frequency	Technique	Inputs	Input Values
Warrants	Recurring	Black-Scholes formulation	Stock price	$2.54 - $2.98
			Exercise price	$2.54 - $3.98
			Time to maturity (in years)	9.38 - 14.70
			Risk-free interest rate	2.37% - 2.57%
			Annualized volatility	42.36% - 47.58%


December 31, 2016
	Valuation	Valuation	Unobservable	Range of
Name	Frequency	Technique	Inputs	Input Values
Warrants	Recurring	Black-Scholes formulation	Stock price	$2.54 - $2.98
			Exercise price	$2.54 - $3.98
			Time to maturity (in years)	9.63 - 14.95
			Risk-free interest rate	2.43% - 2.62%
			Annualized volatility	49.08% - 108.99%

Estimated Fair Values of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at March 31, 2017 and December 31, 2016 (in thousands):


	March 31, 2017
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	5,970	$	5,970	$	-	$	-	$	5,970
Notes receivable, net		1,318		-		-		1,318		1,318
Warrants, fair value		37		-		-		37		37


		December 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	3,430	$	3,430	$	-	$	-	$	3,430
Notes receivable, net		1,451		-		-		1,451		1,451
Warrants, fair value		51		-		-		51		51