Acorda Therapeutics (ACOR)

Short-Term Investments

        Short-term investments consist of US Treasury bonds with maturities greater than three months. The Company classifies its short-term investments as available-for-sale. Available-for-sale securities are recorded at fair value of the investments based on quoted market prices.

        Unrealized holding gains and losses on available-for-sale securities, which are determined to be temporary, are excluded from earnings and are reported as a separate component of accumulated other comprehensive income.

        Premiums and discounts on investments are amortized over the life of the related available-for-sale security as an adjustment to yield using the effective- interest method. Dividend and interest income are recognized when earned. Amortized premiums and discounts, dividend and interest income and realized gains and losses are included in interest income.

(4) Short-Term Investments

        The Company has determined that all of its short-term investments are classified as available-for-sale. Available-for-sale securities are carried at fair value with interest on these securities included in interest income and are recorded based primarily on quoted market prices. Available-for-sale securities consisted of the following:

        A decline in the market value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in carrying amount to fair value. The impairment would be charged to earnings for the difference between the investment's cost and fair value at such date and a new cost basis for the security established. Factors evaluated to determine if an investment is other-than-temporarily impaired include significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the issuer; adverse changes in the general market condition in which the issuer operates; the intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment; and, issues that raise concerns about the issuer's ability to continue as a going concern. The Company has determined that there were no other-than-temporary declines in the fair values of its short term investments as of December 31, 2009.

        Short-term investments with maturity of three months or less from date of purchase have been classified as cash and cash equivalents, and amounted to $43,471,757 and $27,283,767 as of December 31, 2009 and 2008, respectively.

Short-Term Investments

        Short-term investments consist of highly rated corporate securities including industrial issuers and US Treasury bonds with maturities greater than three months. In accordance with Statement of Financial Accounting Standards (SFAS) No. 115 (SFAS 115), Accounting for Certain Investments in Debt and Equity Securities, the Company classifies its short-term investments as available-for-sale. Available-for-sale securities are recorded at fair value of the investments based on quoted market prices. The Company considers all of these investments to be available-for-sale.

        Unrealized holding gains and losses on available-for-sale securities, which are determined to be temporary, are excluded from earnings and are reported as a separate component of other comprehensive income.

        Premiums and discounts on investments are amortized over the life of the related available-for-sale security as an adjustment to yield using the effective- interest method. Dividend and interest income are recognized when earned. Amortized premiums and discounts, dividend and interest income and realized gains and losses are included in interest income.

(4) Short-Term Investments

        The Company has accounted for its investments in accordance with SFAS No. 115 and determined that all of its short-term investments are classified as available-for-sale. Available-for-sale securities are carried at fair value with interest on these securities included in interest income. Available-for-sale securities consisted of the following:

        The contractual maturities of available-for-sale debt securities at December 31, 2008 and 2007 are within one year.

        A decline in the market value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in carrying amount to fair value in accordance with FASB Staff Position (FSP) FAS No. 115-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments. The impairment would be charged to earnings for the difference between the investment's cost and fair value at such date and a new cost basis for the security established. Factors evaluated to determine if an investment is other-than-temporarily impaired include significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the issuer; adverse changes in the general market condition in which the issuer operates; the intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment; and, issues that raise concerns about the issuer's ability to continue as a going concern. The Company has determined that there were no

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Table of Contents

other-than-temporary declines in the fair values of its short term investments as of December 31, 2008.

        Short-term investments with maturity of three months or less from date of purchase have been classified as cash and cash equivalents, and amounted to $27,283,767 and $15,766,935 as of December 31, 2008 and 2007, respectively.

Short-Term Investments

        Short-term investments consist of highly rated corporate securities including industrial issuers and US Treasury bonds with
maturities greater than three months. In accordance with Statement of Financial Accounting Standards (SFAS) No. 115 (SFAS 115), Accounting for Certain Investments
in Debt and Equity Securities, the Company classifies its short-term investments as available-for-sale.
Available-for-sale securities are recorded at fair value of the investments based on quoted market prices. The Company considers all of these investments to be
available-for-sale.

        Unrealized
holding gains and losses on available-for-sale securities, which are determined to be temporary, are excluded from earnings and are reported as a
separate component of other comprehensive income.

        Premiums
and discounts on investments are amortized over the life of the related available-for-sale security as an adjustment to yield using the effective-
interest method. Dividend and interest income are recognized when earned. Amortized premiums and discounts, dividend and interest income and realized gains and losses are included in interest income.

(4) Short-Term Investments

        The Company has accounted for its investments in accordance with SFAS No. 115 and determined that all of its
short-term investments are classified as
available-for-sale. Available-for-sale securities are carried at fair value with interest on these securities included in interest income.
Available-for-sale securities consisted of the following:

        The
contractual maturities of available-for-sale debt securities at December 31, 2008 and 2007 are within one year.

        A
decline in the market value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a
reduction in carrying amount to fair value in accordance with FASB Staff Position (FSP) FAS No. 115-1, The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments. The impairment would be charged to earnings for the difference between the
investment's cost and fair value at such date and a new cost basis for the security established. Factors evaluated to determine if an investment is other-than-temporarily
impaired include significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the issuer; adverse changes in the general market condition in which the
issuer operates; the intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment; and, issues that raise concerns about the
issuer's ability to continue as a going concern. The Company has determined that there were no

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HREF="#bg73301a_main_toc">Table of Contents

other-than-temporary
declines in the fair values of its short term investments as of December 31, 2008.

        Short-term
investments with maturity of three months or less from date of purchase have been classified as cash and cash equivalents, and amounted to $27,283,767 and
$15,766,935 as of December 31, 2008 and 2007, respectively.

(4) Short-Term Investments

        The Company has accounted for its investments in accordance with SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, and determined that all of its short-term investments are classified as available-for-sale. Available-for-sale securities are carried at fair value with interest on these securities included in interest income. Available-for-sale securities consisted of the following:

        The contractual maturities of available-for-sale debt securities at December 31, 2007 and 2006 are within one year.

        A decline in the market value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in carrying amount to fair value in accordance with Financial Accounting Standards Board, or FASB, Staff Position, (FSP), FAS No. 115-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments. The impairment

F-17

would be charged to earnings for the difference between the investment's cost and fair value at such date and a new cost basis for the security established. Factors evaluated to determine if an investment is other-than-temporarily impaired include significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the issuer; adverse changes in the general market condition in which the issuer operates; the intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment; and, issues that raise concerns about the issuer's ability to continue as a going concern. The Company has determined that there were no other-than-temporary declines in the fair values of its short term investments as of December 31, 2007.

        The following table shows the gross unrealized losses and fair value of the Company's available-for-sale securities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2007 (in thousands):

(1)

The Company invests in bonds that are rated A1 or better, as dictated by its approved investment policy. Since the changes in the market value of these investments are due to changes in interest rates and not credit quality, and the Company has the ability and intent to hold these investments until recovery of the fair value, the Company does not consider its investments in corporate debt securities to be other-than-temporarily impaired at December 31, 2007.

Short-term investments with maturity of three months or less from date of purchase have been classified as cash and cash equivalents, and amounted to $15,766,935 and $16,681,442 as of December 31, 2007 and 2006, respectively.

(4) Short-Term Investments

        The Company has accounted for its investments in accordance with SFAS No. 115, Accounting for Certain Investments in Debt and
Equity Securities, and determined that all of its short-term investments are classified as available-for-sale.
Available-for-sale securities are carried at fair value with interest on these securities included in interest income. Available-for-sale securities
consisted of the following:

        The
contractual maturities of available-for-sale debt securities at December 31, 2007 and 2006 are within one year.

        A
decline in the market value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a
reduction in carrying amount to fair value in accordance with Financial Accounting Standards Board, or FASB, Staff Position, (FSP), FAS No. 115-1, The
Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments. The impairment

F-17

would
be charged to earnings for the difference between the investment's cost and fair value at such date and a new cost basis for the security established. Factors evaluated to determine if an
investment is other-than-temporarily impaired include significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the issuer;
adverse changes in the general market condition in which the issuer operates; the intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value
of the investment; and, issues that raise concerns about the issuer's ability to continue as a going concern. The Company has determined that there were no other-than-temporary
declines in the fair values of its short term investments as of December 31, 2007.

        The
following table shows the gross unrealized losses and fair value of the Company's available-for-sale securities that are not deemed to be
other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at
December 31, 2007 (in thousands):

(1)

The
Company invests in bonds that are rated A1 or better, as dictated by its approved investment policy. Since the changes in the market value of these investments are due to changes
in interest rates and not credit quality, and the Company has the ability and intent to hold these investments until recovery of the fair value, the Company does not consider its investments in
corporate debt securities to be other-than-temporarily impaired at December 31, 2007.

Short-term
investments with maturity of three months or less from date of purchase have been classified as cash and cash equivalents, and amounted to $15,766,935 and $16,681,442 as of
December 31, 2007 and 2006, respectively.

Short-Term Investments

Short-term investments consist of corporate debt securities with maturities greater than three months. In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 115 (“SFAS 115”), Accounting for Certain Investments in Debt and Equity Securities, the Company classifies its short-term investments as available-for-sale. Available-for-sale securities are recorded at fair value of the investments based on quoted market prices. The Company considers all of these investments to be available-for-sale.

Unrealized holding gains and losses on available-for-sale securities, which are determined to be temporary, are excluded from earnings and are reported as a separate component of other comprehensive income (loss).

Premiums and discounts on investments are amortized over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Dividend and interest income are recognized when earned. Realized gains and losses are determined on the average cost method. Amortized premiums and discounts, dividend and interest income and realized gains and losses are included in interest income.

Short-Term Investments

Short-term investments consist of corporate debt securities with maturities greater than three months. In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 115 (“SFAS 115”), Accounting for Certain Investments in Debt and Equity Securities, the Company classifies its short-term investments as available-for-sale. Available-for-sale securities are recorded at fair value of the investments based on quoted market prices. The Company considers all of these investments to be available-for-sale.

Unrealized holding gains and losses on available-for-sale securities, which are determined to be temporary, are excluded from earnings and are reported as a separate component of other comprehensive income (loss).

Premiums and discounts on investments are amortized over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Dividend and interest income are recognized when earned. Realized gains and losses are determined on the average cost method. Amortized premiums and discounts, dividend and interest income and realized gains and losses are included in interest income.

Short-Term Investments

Short-term investments consist of corporate debt securities with maturities greater than three months. In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 115 (“SFAS 115”), Accounting for Certain Investments in Debt and Equity Securities, the Company classifies its short-term investments as available-for-sale. Available-for-sale securities are recorded at fair value of the investments based on quoted market prices. The Company considers all of these investments to be available-for-sale.

Unrealized holding gains and losses on available-for-sale securities, which are determined to be temporary, are excluded from earnings and are reported as a separate component of other comprehensive income (loss).

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Premiums and discounts on investments are amortized over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Dividend and interest income are recognized when earned. Realized gains and losses are determined on the average cost method. Amortized premiums and discounts, dividend and interest income and realized gains and losses are included in interest income.