Derivative Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 are as follows: (in thousands)

			Fair Value Measurements at Reporting Date Using
Description	Balance as of December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Liabilities
Derivative liability – long-term portion	$	186	$	-	$	-	$	186

Total	$	186	$	-	$	-	$	186

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 are as follows: (in thousands)

			Fair Value Measurements at Reporting Date Using
Description	Balance as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Liabilities
Derivative liability – current portion	$	20	$	-	$	-	$	20
Derivative liability – long-term portion		2,214		-		-		2,214

Total	$	2,234	$	-	$	-	$	2,234

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table sets forth a reconciliation of changes in the fair value of the Company’s derivative liabilities classified as Level 3 for the years ended December 31, 2013 and 2012 (in thousands):

	2013		2012
Balance at beginning of year	$	2,234	$	807
Recognition of derivative liabilities		607		3,064
Exercise of derivative instruments		(298)		—
Change in fair value		(2,357)		(1,637)
	$	186	$	2,234

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details

THERMOENERGY CORP 10-K