Fair value measurement

12 Months Ended

Dec. 31, 2018

12. Fair value measurement

The following table sets forth our financial assets and liabilities that are measured at fair value on a recurring basis:


At December 31, 2018	Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	137,723	$	—	$	—	$	137,723
Total assets	$	137,723	$	—	$	—	$	137,723
Liabilities:
Contingent consideration	$	—	$	—	$	961	$	961
Total liabilities	$	—	$	—	$	961	$	961


At December 31, 2017		Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	2,255	$	—	$	—	$	2,255
Total assets	$	2,255	$	—	$	—	$	2,255

The Company’s contingent consideration obligation was initially recorded at fair value and the Company will revalue this obligation each reporting period until the related contingencies are resolved. The fair value measurement is estimated using probability-weighted discounted cash flow approaches that are based on significant unobservable inputs related to achievement of estimated annual sales and are reviewed quarterly. Significant changes to estimated annual sales and discount rates would result in corresponding changes in the fair value of this obligation. There were no significant changes to the fair value of our contingent consideration liabilities during the period ended December 31, 2018.The following table presents a reconciliation of the beginning and ending amounts related to the fair value of contingent consideration categorized as Level 3:


Beginning balance, January 1, 2018	$	—
Additions		961
Payment of contingent consideration		—
Change in fair value		—
Balance, December 31, 2018	$	961

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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