Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.4.0.3
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2016
Schedule of Derivative Liabilities at Fair Value
 
 
Fair Value of
 
 
 
Derivative
 
 
 
Warrant
 
($ in thousands)
 
Liability
 
Beginning balance at January 1, 2016
 
$
114
 
Fair value adjustment of derivative warrant liability
 
 
89
 
Ending balance at March 31, 2016
 
$
203
 
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables classify into the fair value hierarchy financial instruments measured at fair value on a recurring basis on the condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015:
 
 
 
Fair Value Measurement as of March 31, 2016
 
($ in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term investments, at fair value
 
$
-
 
$
-
 
$
1,567
 
$
1,567
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative warrant liability
 
$
-
 
$
-
 
$
203
 
$
203
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement as of December 31, 2015
 
($ in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term investments, at fair value
 
$
-
 
$
-
 
$
2,485
 
$
2,485
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative warrant liability
 
$
-
 
$
-
 
$
114
 
$
114
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of changes in fair value of financial instruments
The table below provides a rollforward of the changes in fair value of Level 3 financial instruments for the three months ended March 31, 2016 and 2015: 
 
 
 
Fair Value of Investment
 
 
 
Long-term
 
 
 
($ in thousands)
 
Other
 
CB Pharma
 
Total
 
Balance at December 31, 2015
 
$
250
 
$
2,235
 
$
2,485
 
Change in fair value of investments
 
 
-
 
 
(918)
 
 
(918)
 
Balance at March 31, 2016
 
$
250
 
$
1,317
 
$
1,567
 
 
 
 
Fair Value of Investment
 
 
 
Long-term
 
 
 
 
($ in thousands)
 
Other
 
CB Pharma
 
Total
 
Balance at December 31, 2014
 
$
250
 
$
3,910
 
$
4,160
 
Change in fair value of investments
 
 
-
 
 
(215)
 
 
(215)
 
Balance at March 31, 2015
 
$
250
 
$
3,695
 
$
3,945
 
Avenue [Member]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques
The fair value of the Avenue’s Contingently Issuable Warrants was determined by applying management’s estimate of the probability of issuance of the Contingently Issuable Warrants together with an option pricing model, with the following key assumptions:
 
 
 
March 31,
 
 
 
2016
 
Risk-free interest rate
 
 
1.78
%
Expected dividend yield
 
 
-
%
Expected term in years
 
 
9.59
 
Expected volatility
 
 
83.00
%
Probability of issuance of the warrant
 
 
45.00
%