Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments (Tables)

v3.2.0.727
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2015
Fair Value Disclosures [Abstract]  
Composition of Financial Instruments
The composition of financial instruments is as follows:
 
June 30, 2015
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
Gains
 
Losses
 
Assets
 
 
 
 
 
 
 
Money market funds
$
5,421

 
$
—

 
$
—

 
$
5,421

Government debt securities
8,898

 
1

 
—

 
8,899

Corporate debt securities
16,461

 
—

 
(16
)
 
16,445

 
30,780

 
1

 
(16
)
 
30,765

Less amounts included in cash and cash equivalents
(5,421
)
 
—

 
—

 
(5,421
)
 
$
25,359

 
$
1

 
$
(16
)
 
$
25,344

 
Fair Value at June 30, 2015
Liabilities
 
Contingent Consideration
$
133

Total
$
133

 
December 31, 2014
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
Gains
 
Losses
 
Assets
 
 
 
 
 
 
 
Money market funds
$
1,858

 
$
—

 
$
—

 
$
1,858

Government debt securities
27,154

 
5

 
(8
)
 
27,151

Corporate debt securities
31,543

 
3

 
(42
)
 
31,504

 
60,555

 
8

 
(50
)
 
60,513

Less amounts included in cash and cash equivalents
(1,858
)
 
—

 
—

 
(1,858
)
 
$
58,697

 
$
8

 
$
(50
)
 
$
58,655


 
Fair Value at December 31, 2014
Liabilities
 
Contingent Consideration
$
265

Total
$
265

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents a summary of the Company’s financial instruments that are measured on a recurring basis:
 
 
 
Fair Value Measurements at June 30, 2015
 
Balance at
June 30,
2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Money market funds
$
5,421

 
$
5,421

 
$
—

 
$
—

Government debt securities
8,899

 
—

 
8,899

 
—

Corporate debt securities
16,445

 
—

 
16,445

 
—

 
$
30,765

 
$
5,421

 
$
25,344

 
$
—

Liabilities
 
 
 
 
 
 
 
Contingent consideration
$
133

 
$
—

 
$
—

 
$
133

 
$
133

 
$
—

 
$
—

 
$
133

 
 
 
Fair Value Measurements at December 31, 2014
 
Balance at
December 31,
2014
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
Money market funds
$
1,858

 
$
1,858

 
$
—

 
$
—

Government debt securities
27,151

 
—

 
27,151

 
—

Corporate debt securities
31,504

 
—

 
31,504

 
—

 
$
60,513

 
$
1,858

 
$
58,655

 
$
—

Liabilities
 
 
 
 
 
 
 
Contingent consideration
$
265

 
$
—

 
$
—

 
$
265

 
$
265

 
$
—

 
$
—

 
$
265

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following summarizes the activity in Level 3 financial instruments:
 
Six Months Ended June 30, 2015
Contingent Consideration (1)
 
Beginning balance
$
265

(Gain) loss recognized in earnings (2)
(132
)
Ending balance
$
133

Net gain (loss) for the period included in earnings attributable to contingent consideration held at the end of the period:
$
(132
)
(1) In connection with the acquisition of Physpeed, the Company recorded contingent consideration based upon the expected achievement of certain 2015 and 2016 revenue milestones. Changes to the fair value of contingent consideration due to changes in assumptions used in preparing the valuation model are recorded in selling, general and administrative expense in the statement of operations.
(2) Changes to the estimated fair value of contingent consideration were primarily due to revisions to the Company's expectations of earn-out achievement.