Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.3.0.814
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of contingent consideration related to acquisitions
The following table discloses the liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014:
 
Fair value at September 30, 2015
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(in thousands)
Contingent consideration related to the acquisition of:
 
 
 
 
 
 
 
InstaManager
$
66

 
$

 
$

 
$
66

Indatus
801

 

 

 
801

VRX
307

 

 

 
307

 
$
1,174

 
$

 
$

 
$
1,174

 
Fair value at December 31, 2014
 
Total
 
Level 1
 
Level 2
 
Level 3
 
(in thousands)
Contingent consideration related to the acquisition of:
 
 
 
 
 
 
 
Active Building
$
1,566

 
$

 
$

 
$
1,566

MyBuilding
248

 

 

 
248

InstaManager
2,335

 

 

 
2,335

     VMM
1

 

 

 
1

 
$
4,150

 
$

 
$

 
$
4,150

Schedule of change in level 3 fair values
The following table summarizes the changes in the fair value of our Level 3 liabilities for the nine months ended September 30, 2015 and 2014:
 
Nine Months Ended September 30,
 
2015
 
2014
 
(in thousands)
Balance at beginning of period
$
4,150

 
$
1,827

Initial contingent consideration
1,415

 
2,939

Settlements through cash payments
(1,179
)
 
(229
)
Net (gains) losses on change in fair value
(3,212
)
 
173

Balance at end of period
$
1,174

 
$
4,710

Schedules of valuation techniques
Significant unobservable inputs used in fair value measurement of the trade names included the following for the nine months ended September 30, 2015:
 
 
 
 
Nine Months Ended September 30, 2015
Discount rate
 
 
 
15.0%
Royalty Rate
 
 
 
5.4%
Recurring  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of fair value inputs
Significant unobservable inputs used in the contingent consideration fair value measurements included the following at September 30, 2015 and December 31, 2014:
 
 
September 30, 2015
 
December 31, 2014
Discount rates
 
15.8% - 60.3%
 
22.5% - 64.0%
Volatility rates
 
36.0% - 54.0%
 
45.0% - 48.0%
Risk free rate of return
 
0.2% - 0.6%
 
0.1% - 0.2%