Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis

As of September 30, 2017 and December 31, 2016, financial assets and liabilities measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above were as follows:

	As of September 30, 2017								As of December 31, 2016
	Fair Value Measurements								Fair Value Measurements
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	22,149	$	—	$	—	$	22,149	$	8,270	$	—	$	—	$	8,270
Liabilities:
Earn-out liability	$	—	$	—	$	524	$	524	$	—	$	—	$	694	$	694

Quantitative Information about the Inputs and Valuation Methodologies Used for Fair Value Measurements

The following tables present quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of September 30, 2017 and December 31, 2016.

As of September 30, 2017	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	524	Discounted cash flow	Projected royalties (in thousands)	$1,719
				Discount rate	10.89% (10.89% - 27.00%)

As of December 31, 2016	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input	Weighted Average (range)
Earn-out liability	$	694	Discounted cash flow	Projected royalties (in thousands)	$2,154
				Discount rate	11.22% (11.22% - 27.00%)

Reconciliation of the Changes in the Company's Earn-Out - Cash (Level 3 Liabilities) Balance

A reconciliation of the changes in the Company’s earn-out liability (Level 3 liability) for the nine months ended September 30, 2017 and October 1, 2016 is as follows:

	Nine Months Ended
(in thousands)	September 30, 2017			October 1, 2016
Balance as of beginning of the period	$	694		$	1,005
Payments against earn-out		(292	)		(313	)
Change in fair value of earn-out liability		122			86
Balance as of the end of the period	$	524		$	778