Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Measurements [Abstract]

Fair Value Measurements

8.           Fair Value Measurements

Assets and liabilities recorded at fair value on the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure the fair value.  Level inputs are 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 following table summarizes fair value measurements by level at September 30, 2015 for assets and liabilities measured at fair value on a recurring basis:

(In thousands)	Level I		Level II		Level III			Total
Cash equivalents	$	55,045	$	—	$	—		$	55,045
Short-term investments		15,022		—		—			15,022
Warrant liabilities		—		—		(1,051	)		(1,051	)

The following table summarizes fair value measurements by level at December 31, 2014 for assets and liabilities measured at fair value on a recurring basis:

(In thousands)	Level I		Level II		Level III			Total
Cash equivalents	$	31,159	$	—	$	—		$	31,159
Short-term investments		45,622		—		—			45,622
Warrant liability		—		—		(5,131	)		(5,131	)

      The changes in carrying amounts of the warrant liability for the period ended September 30, 2015 was as follows:

(In thousands)	2015
Beginning balance	5,131
Net changes in valuation	(4,080)
Ending balance	1,051

Liabilities measured at market value on a recurring basis include warrant liability associated with outstanding warrants potentially settleable in cash. In accordance with ASC 815-40, the warrant liability is marked to market each quarter-end until it is completely settled. The warrant liability is valued using the Black-Scholes method, using assumptions consistent with the Company’s application of ASC 505-50. The change in the fair value of the liability classified in Level III is due to the unrealized gain of $4.1 million recognized and the gain is presented in the Condensed Statement of Operations (see Note 6).

The Company considers carrying amounts of accounts receivable, accounts payable and accrued expenses to approximate fair value due to the short-term nature of these financial instruments.  

The Company’s non-financial assets are measured at fair value when there is an indication of impairment and recorded at air value only when an impairment charge is recognized.  The Company’s non-financial assets were not material at September 30, 2015 or 2014.