Fair Value Measurements (Tables)
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12 Months Ended |
Dec. 31, 2015 |
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| Schedule of Derivative Liabilities at Fair Value |
| ($ in thousands) | | Fair Value of
Derivative
Warrant
Liability | | | Beginning balance at January 1, 2015 | | $ | - | | | Recognition of derivative warrant liability | | | 114 | | | Fair value adjustment of derivative warrant liability | | | - | | | Ending balance at December 31, 2015 | | $ | 114 | |
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| Fair Value for Checkpoint's Derivative Contingently Issuable Warrant Liabilities |
The following table sets forth the changes in the estimated fair value for Checkpoint’s Level 3 classified derivative Contingently Issuable Warrant liabilities: | ($ in thousands) | | Checkpoint’s
Contingently
Issuable
Warrants | | | Fair value at the beginning of period: | | $ | - | | | Additions | | | 175 | | | Change in fair value | | | 438 | | | Issuance of Warrants (October 30, 2015) | | | (613) | | | Fair value at end of period: | | $ | | |
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| 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 Consolidated Balance Sheets as of December 31, 2015 and 2014: | | | 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 | | | | | Fair Value Measurement as of December 31, 2014 | | | ($ in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | | | Assets | | | | | | | | | | | | | | | Marketable securities, at fair value: | | | | | | | | | | | | | | | U.S. treasury bills | | $ | 19,998 | | $ | - | | $ | - | | $ | 19,998 | | | Mutual funds | | | 4 | | | - | | | | | | 4 | | | Total marketable securities, at fair value | | | 20,002 | | | - | | | - | | | 20,002 | | | Long-term investments, at fair value | | | - | | | - | | | 4,160 | | | 4,160 | | | Total | | $ | 20,002 | | $ | - | | $ | 4,160 | | $ | 24,162 | |
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| 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 years ended December 31, 2014 and 2015:
| | | Fair Value of Investment | | | | | Short-term | | Long-term | | | | | | ($ in thousands) | | Other | | Other | | CB Pharma | | Total | | | Balance at December 31, 2013 | | $ | - | | $ | - | | $ | - | | $ | - | | | Purchases | | | 293 | | | 250 | | | 2,675 | | | 3,218 | | | Change in fair value of investments | | | (293) | | | | | | 1,235 | | | 942 | | | Balance at December 31, 2014 | | $ | - | | $ | 250 | | $ | 3,910 | | $ | 4,160 | | | Change in fair value of investments | | | - | | | - | | | (1,675) | | | (1,675) | | | Balance at December 31, 2015 | | $ | - | | $ | 250 | | $ | 2,235 | | $ | 2,485 | |
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| Avenue [Member] |
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| 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 the option pricing model, with the following key assumptions:
| | | February 17,
2015 | | December 31,
2015 | | | Risk-free interest rate | | | 1.97 | % | | 2.27 | % | | Expected dividend yield | | | - | % | | - | % | | Expected term in years | | | 10.00 | | | 9.84 | | | Expected volatility | | | 83.00 | % | | 83.00 | % | | Probability of issuance of the warrant | | | 25.00 | % | | 25.00 | % |
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| Checkpoint [Member] |
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| Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques |
The fair value of Checkpoint’s Contingently Issuable Warrants was determined at various issuance dates from March 19, 2015 to August 31, 2015 (“Issuance Dates”) for $0.2 million and on October 30, 2015 for $0.6 million by applying management’s estimate of the probability of issuance of the Contingently Issuable Warrants together with the option pricing model with the following key assumptions: | | | Issuance Dates | | | October 30,
2015 | | | Risk-free interest rate | | | 2.26 | % | | | 2.16 | % | | Expected dividend yield | | | - | | | | - | | | Expected term in years | | | 10.00 | | | | 10.00 | | | Expected volatility | | | 83 | % | | | 100.86 | % | | Probability of issuance of the warrant | | | 25 | % | | | 100 | % |
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