Fair Value

6 Months Ended

Jun. 30, 2011

Fair Value

Fair Value

3.FAIR VALUE

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. 

The standard describes three levels of inputs that may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.  

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities.  The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

The Company had no assets or liabilities measured at fair value on a recurring basis at December 31, 2010.

Assets and liabilities measured at fair value on a recurring basis at June 30, 2011 are summarized below:

	Fair Value Measurements as of June 30, 2011
Description	Total		Level 1		Level 2		Level 3
Short-term investments (Certificates of Deposit)	$	70,570	$	-	$	70,570	$	-
Total	$	70,570	$	-	$	70,570	$	-