Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.3.1.900
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of liabilities measured at fair value on a recurring basis
The following table discloses the liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014:
 
Fair value at December 31, 2015
 
Total
 
Level 1
 
Level 2
 
Level 3
Contingent consideration related to the acquisition of:

 
 
 
 
 
 
Indatus
$
814

 
$
—

 
$
—

 
$
814

VRX
27

 
—

 
—

 
27

 
$
841

 
$
—

 
$
—

 
$
841

 
Fair value at December 31, 2014
 
Total
 
Level 1
 
Level 2
 
Level 3
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

Changes in Level 3 fair value measurements
Changes in the fair value of Level 3 measurements for the reporting periods were as follows during the years ended December 31, 2015 and 2014, in thousands:
Balance, January 1, 2014
$
1,827

Initial contingent consideration
2,939

Settlements through cash payments
(229
)
Net gain on change in fair value
(387
)
Balance, December 31, 2014
4,150

Initial contingent consideration
1,414

Settlements through cash payments
(1,179
)
Net gain on change in fair value
(3,544
)
Balance, December 31, 2015
$
841

Recurring  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of valuation techniques
Significant unobservable inputs used in the contingent consideration fair value measurements included the following at December 31, 2015 and 2014:
 
 
2015
 
2014
Discount rates
 
15.8 - 60.0%
 
22.5 - 64.0%
Volatility rates
 
37.0 - 53.5%
 
45.0 - 48.0%
Risk free rate of return
 
0.5 - 0.9%
 
0.1 - 0.2%