Annual report pursuant to Section 13 and 15(d)

Financial Instruments (Tables)

v3.6.0.2
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table presents a summary of the Company’s financial instruments that are measured on a recurring basis:
 
 
 
Fair Value Measurements at December 31, 2016
 
Balance at
December 31,
2016
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in thousands)
Assets
 
 
 
 
 
 
 
Money market funds
$
39,181

 
$
39,181

 
$
—

 
$
—

Government debt securities
27,993

 
—

 
27,993

 
—

Corporate debt securities
25,916

 
—

 
25,916

 
—

 
$
93,090

 
$
39,181

 
$
53,909

 
$
—

Liabilities
 
 
 
 
 
 
 
Contingent consideration
$
375

 
$
—

 
$
—

 
$
375

 
$
375

 
$
—

 
$
—

 
$
375

 
 
 
Fair Value Measurements at December 31, 2015
 
Balance at
December 31,
2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in thousands)
Assets
 
 
 
 
 
 
 
Money market funds
$
17,144

 
$
17,144

 
$
—

 
$
—

Government debt securities
17,273

 
—

 
17,273

 
—

Corporate debt securities
45,269

 
—

 
45,269

 
—

 
$
79,686

 
$
17,144

 
$
62,542

 
$
—

Liabilities
 
 
 
 
 
 
 
Contingent consideration
$
395

 
$
—

 
$
—

 
$
395

 
$
395

 
$
—

 
$
—

 
$
395

Available-for-sale Securities [Table Text Block]
The composition of financial instruments is as follows:
 
December 31, 2016
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
Gains
 
Losses
 
 
(in thousands)
Assets
 
 
 
 
 
 
 
Money market funds
$
39,181

 
$
—

 
$
—

 
$
39,181

Government debt securities
28,025

 
—

 
(32
)
 
27,993

Corporate debt securities
25,923

 
—

 
(7
)
 
25,916

 
93,129

 
—

 
(39
)
 
93,090

Less amounts included in cash and cash equivalents
(39,181
)
 
—

 
—

 
(39,181
)
 
$
53,948

 
$
—

 
$
(39
)
 
$
53,909

 
Fair Value at December 31, 2016
 
(in thousands)
Liabilities
 
Contingent consideration
$
375

 
December 31, 2015
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
Gains
 
Losses
 
 
(in thousands)
Assets
 
 
 
 
 
 
 
Money market funds
$
17,144

 
$
—

 
$
—

 
$
17,144

Government debt securities
17,303

 
—

 
(30
)
 
17,273

Corporate debt securities
45,353

 
—

 
(84
)
 
45,269

 
79,800

 
—

 
(114
)
 
79,686

Less amounts included in cash and cash equivalents
(17,144
)
 
—

 
—

 
(17,144
)
 
$
62,656

 
$
—

 
$
(114
)
 
$
62,542


 
Fair Value at December 31, 2015
 
(in thousands)
Liabilities
 
Contingent consideration
$
395

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following summarizes the activity in Level 3 financial instruments:
 
Fair Value at December 31,
 
2016
 
2015
 
(in thousands)
Contingent Consideration (1)
 
 
 
Beginning balance
$
395

 
$
265

Physpeed earn-out payment
(240
)
 
—

Loss recognized in earnings (2)
220

 
130

Ending balance
$
375

 
$
395

Net loss for the period included in earnings attributable to contingent consideration held at the end of the period:
$
220

 
$
130

(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 statements 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.