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## Note 4 — Fair Value Measurements 

The Company accounts for certain assets and liabilities at fair value. Fair value is the price that would be received from selling an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. 

The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. 

The three levels of inputs that may be used to measure fair value are as follows: 

Level 1: Quoted prices in active markets for identical assets or liabilities; 

Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for 

similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets), or other inputs that are observable (model-derived valuations in which significant inputs are observable) or can be derived principally from, or corroborated by, observable market data; and 

Level 3: Unobservable inputs that are supported by little or no market activity that is significant to the fair value of the assets or liabilities. 

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and 2012: 

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