Fair Value Measurements

3 Months Ended

Mar. 31, 2016

4.	FAIR VALUE MEASUREMENTS

The following tables and disclosure present information about the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands):

	March 31, 2016
	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	50,443	$	—	$	—	$	50,443
Total	$	50,443	$	—	$	—	$	50,443

	December 31, 2015
	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	60,743	$	—	$	—	$	60,743
Total	$	60,743	$	—	$	—	$	60,743

The carrying amounts of the Company’s financial instruments, including cash, restricted cash, accounts receivable, deposits, accounts payable, and accrued expenses and other liabilities, approximate fair value due to their short maturities. The Company’s lease obligations and term loan have fair values that approximate their carrying value based on prevailing borrowing rates available to the Company for instruments with similar terms.

None of the Company’s non-financial assets or liabilities is recorded at fair value on a non-recurring basis for the periods presented. There were no transfers between levels within the fair value hierarchy during the periods presented.

The following table provides a reconciliation of liabilities measured at fair value using Level 3 significant unobservable inputs (in thousands) for the three months ended March 31, 2016 and the year ended December 31, 2015:

	March 31, 2016		December 31, 2015
Balance, beginning of period	$	—	$	2,460
Reclassification of preferred stock warrant liability to additional paid-in capital upon conversion to common stock		—		(521	)
Change in fair value of preferred stock warrant liabilities ⁽¹⁾		—		(1,939	)
Balance, end of period	$	—	$	—

(1)	Changes in fair value of the preferred stock warrant liabilities were recorded in other income (expense), net on the accompanying Statement of Operations and Comprehensive Loss.

- 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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