Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2019

2. Fair Value of Financial Instruments

The Company measures and reports its cash equivalents and investments at fair value. The carrying amounts for cash equivalents and investments approximate their fair values due to their short maturities. The following tables set forth the fair value of the Company’s cash equivalents and investments by level within the fair value hierarchy (in thousands):

	As of March 31, 2019
	Fair Value		Level I		Level II		Level III
Assets:
Money market funds	$	2,035	$	2,035	$	—	$	—
Corporate debt securities and commercial paper		23,613		—		23,613		—
Total assets measured at fair value	$	25,648	$	2,035	$	23,613	$	—

	As of December 31, 2018
	Fair Value		Level I		Level II		Level III
Assets:
Money market funds	$	5,383	$	5,383	$	—	$	—
Corporate debt securities and commercial paper		22,098		—		22,098		—
Total assets measured at fair value	$	27,481	$	5,383	$	22,098	$	—

Debt investments are classified as “available-for-sale” and are carried at fair value based on quoted markets or other readily available market information. The Company's investment policy requires all investments to have a less than twenty four month maturity term and a minimum credit rating of A-. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income (loss). Gains and losses are determined using the specific identification method. Cash, cash equivalents, and investments consisted of the following as of September 30, 2018 (in thousands):

	As of March 31, 2019
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Assets:
Cash	$	1,781	$	—	$	—	$	1,781
Money market funds		2,035		—		—		2,035
Corporate debt securities and commercial paper		23,620		7		—		23,613
Total cash, cash equivalents and investments	$	27,436	$	7	$	—	$	27,429

As of December 31, 2018, the Company had $28,000 of unrealized losses.

- 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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