Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company’s fair value measurements are classified and disclosed in one of the following three categories:

• Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

• Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability;

• Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following table summarizes the valuation of the Company’s financial instruments that are measured at fair value on a recurring basis: 

	December 31, 2015								December 31, 2014
	Fair value measurement category								Fair value measurement category
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Liabilities:
Warrant liabilities	$	757	$	—	$	757	$	—	$	1,081	$	—	$	1,061	$	20

The fair values of the warrants are measured using the Black-Scholes valuation model. See Note 11 for further discussion of the significant observable inputs use to measure the warrant liabilities.

The following table summarizes the change in the estimated fair value of the Company’s warrant liabilities: 

Warrant Liabilities (In thousands)
Balance at December 31, 2013	$	2,019
Warrant exercises	(965		)
Increase in fair value	27
Balance at December 31, 2014	1,081
Decrease in fair value	(324		)
Balance at December 31, 2015	$	757

A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:

	Year Ended December 31,
(In thousands)	2015			2014
Beginning balance	$	20		$	85
Decrease in fair value	(20		)	(65		)
Ending balance	$	—		$	20