Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v2.4.0.8
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2013
Fair Value Measurements [Abstract]  
Financial assets and liabilities carried at fair value
The following tables set forth the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012 are classified as follows (in thousands):

   
Fair Value Measurements at December 31, 2013 Using
        
   
Quoted Prices in
Active Markets
for Identical
Assets
    
Significant
Other
Observable
Inputs
    
Significant
Unobservable
Inputs
        
   
(Level 1)
    
(Level 2)
    
(Level 3)
    
Total
  
Assets:
                        
Money market funds (1)
  $ 82,759     $ -     $ -     $ 82,759  
U.S. treasury securities
     19,989       -       -       19,989  
Foreign exchange options
     -       361       -       361  
Total
   $ 102,748     $ 361     $ -     $ 103,109  
                                 
Liabilities:
                                
Contingent warrant liabilities
   $ -     $ -     $ 69,869     $ 69,869  
 
   
Fair Value Measurements at December 31, 2012 Using
          
   
Quoted Prices in
Active Markets
for Identical
Assets
    
Significant
Other
Observable
Inputs
    
Significant
Unobservable
Inputs
          
   
(Level 1)
    
(Level 2)
    
(Level 3)
    
Total
  
Assets:
                                
Money market funds (1)
  $ 37,461     $ -     $ -     $ 37,461  
U.S. treasury securities
     39,987                       39,987  
Foreign exchange options
     -       488       -       488  
Total
   $ 77,448     $ 488     $ -     $ 77,936  
                                 
Liabilities:
                                
Contingent warrant liabilities
   $ -     $ -     $ 15,001     $ 15,001  

(1)
Included in cash and cash equivalents

Warrant liabilities fair value assumptions
The fair value of the contingent warrant liabilities was estimated using the following range of assumptions at December 31, 2013 and 2012:

   
December 31,
2013
    
December 31,
2012
  
Expected volatility
     66.1% - 86.6 %     40 %
Risk-free interest rate
     0.1% - 0.8 %     0.3% - 0.7 %
Expected term
  
0.9 - 3.2 years
    
1.9 - 4.2 years
  

Summary of changes in fair value of Level 3 financial liabilities
The following table provides a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the years ended December 31, 2013, 2012 and 2011 (in thousands):
   
Warrant
Liabilities
  
Balance at December 31, 2010
   $ 4,245  
Net decrease in fair value of contingent warrant liabilities upon revaluation
     (3,866 )
Balance at December 31, 2011
     379  
Initial fair value of warrants issued in March 2012
     6,390  
Reclassification of contingent warrant liability to equity upon exercise of warrants
     (940 )
Net increase in fair value of contingent warrant liabilities upon revaluation
     9,172  
Balance at December 31, 2012
     15,001  
Reclassification of contingent warrant liability to equity upon exercise of warrants
     (6,171 )
Net increase in fair value of contingent warrant liabilities upon revaluation
     61,039  
Balance at December 31, 2013
   $ 69,869