Enom 2011 Annual Report Download - page 96

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Financial assets and liabilities carried at fair value on a recurring basis were as follows:
December 31, 2010
Level 1 Level 2 Level 3 Total
Assets
Cash equivalents(1) $ — $ 18,702 $ — $ 18,702
Total assets at fair value $ — $ 18,702 $ — $ 18,702
Liabilities
Series C preferred stock warrants(2) — — 477 477
Total liabilities at fair value $ — $ — $ 477 $ 477
___________________________________
(1) comprises money market funds which are included in Cash and cash equivalents in the accompanying balance sheet
(2) included in Other liabilities in the accompanying balance sheet
December 31, 2011
Level 1 Level 2 Level 3 Total
Assets
Cash equivalents (1) $ 54,701 $ 15,447 $ — $ 70,148
Total assets at fair value $ 54,701 $ 15,447 $ — $ 70,148
___________________________________
(1) comprises money market funds which are included in Cash and cash equivalents in the accompanying balance sheet
For financial assets that utilize Level 1 and Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including quoted
market prices (Level 1 inputs) or inputs that are derived principally from or corroborated by observable market data (Level 2 inputs). The fair value of the
Company’s Series C preferred stock warrants was classified as a Level 3 instrument, as it uses unobservable inputs and requires management judgment due to
the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such financial instruments.
The following table presents a reconciliation of the Company’s liabilities measured and recorded at fair value on a recurring basis using significant
unobservable inputs (Level 3) for the years ended December 31, 2009, 2010 and 2011:
Series C
Preferred
Stock
Warrants
Balance at December 31, 2008 $ 166
Change in fair value included in other income (expense) 59
Balance at December 31, 2009 225
Change in fair value included in other income (expense) 252
Balance at December 31, 2010 477
Change in fair value included in other income (expense) 319
Conversion into common stock (796)
Balance at December 31, 2011 $ —
Recent Accounting Pronouncements
In May 2011, the FASB issued Accounting Standards Update 2011-04, “Fair Value Measurement” (“ASU 2011-04”). The primary focus of ASU
2011-04 is the convergence of accounting requirements for fair value measurements and related financial statement disclosures under U.S. GAAP and
International Financial Reporting Standards (“IFRS”). While ASU 2011-04 does not significantly change existing guidance for measuring fair value, it does
require additional disclosures about fair value measurements and changes the wording of certain requirements in the guidance to achieve consistency with
IFRS. ASU 2011-04 is effective for interim and annual periods beginning after December 15, 2011, and is required to be applied prospectively. The Company
does
F-17