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10-Q
FIBROCELL SCIENCE, INC. filed this Form 10-Q on 08/09/2018
Entire Document
 
Fibrocell Science, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)

Note 6. Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company follows the guidance in ASC 820, Fair Value Measurement, to account for financial assets and liabilities measured on a recurring basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses a fair value hierarchy, which distinguishes between assumptions based on market data (observable inputs) and an entity's own assumptions (unobservable inputs). The guidance requires fair value measurements be classified and disclosed in one of the following three categories:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability.
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each reporting period. There were no transfers between Level 1, 2 and 3 during the six months ended June 30, 2018.

The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017:
 
June 30, 2018
($ in thousands) 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents, money market funds with less than 90 days maturity
$
13,148

 
$

 
$

 
$
13,148

Total Assets
$
13,148

 
$

 
$

 
$
13,148

Liabilities:
 

 
 

 
 

 
 

Warrant liability
$

 
$

 
$
747

 
$
747

Derivative liability

 

 
2,957

 
2,957

Total Liabilities
$

 
$

 
$
3,704

 
$
3,704

 

 
December 31, 2017
($ in thousands) 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents, money market funds with less than 90 days maturity
$
14,670

 
$

 
$

 
$
14,670

Total Assets
$
14,670

 
$

 
$

 
$
14,670

Liabilities:
 

 
 

 
 

 
 

Warrant liability
$

 
$

 
$
1,073

 
$
1,073

Derivative liability

 

 
3,136

 
3,136

Total Liabilities
$

 
$

 
$
4,209

 
$
4,209


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