Financial Instruments

3 Months Ended

Mar. 31, 2013

Financial Instruments [Abstract]

Financial Instruments

2.  Financial Instruments  

The following is a summary of the Company’s financial instruments measured at fair value (in thousands):

March 31, 2013	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	716	$	--	$	--	$	716
Restricted securities:
Money market funds		303		--		--		303
Total assets		1,019		--		--		1,019
Long-term liabilities:
Contingent consideration		--		--		(1,951)		(1,951)
Total liabilities		--		--		(1,951)		(1,951)
Net assets (liabilities)	$	1,019	$	--	$	(1,951)	$	(932)

December 31, 2012	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	1,319	$	--	$	--	$	1,319
Restricted securities:
Money market funds		323		--		--		323
Total assets		1,642		--		--		1,642
Long-term liabilities:
Contingent consideration						(1,912)		(1,912)
Total liabilities		--		--		(1,912)		(1,912)
Net assets (liabilities)	$	1,642	$	--	$	(1,912)	$	(270)

The Company used prices quoted from its investment management companies to determine the Level 1 valuation of its investments in money market funds and securities.The Company has changed the presentation of its December 31, 2012 money market funds to Level 1 from Level 2, consistent with its current year presentation.  The Company recorded a  contingent consideration liability, classified as Level 3, as a result of its acquisition of Hemosphere, Inc. (“Hemosphere”) in May 2012.  Refer to Note 4 for further discussion of the Level 3 contingent consideration liability. 

Changes in fair value of Level 3 liabilities are listed below (in thousands):

	Contingent Consideration
Balance as of December 31, 2012	$	1,912
Loss on remeasurement of contingent consideration		39
Balance as of March 31, 2013	$	1,951