3. INVESTMENTS

The Company invests available cash primarily in FDIC guaranteed certificates of deposits and corporate notes. The Company’s short-term investments balance of $8.9 million as of December 31, 2015 is comprised of corporate notes and bonds of $7.0 million and FDIC guaranteed certificates of deposit of $1.9 million. The Company’s investments are classified as available-for-sale securities and are carried at fair market value with unrealized gains and losses recorded in accumulated other comprehensive income (loss).

The following table presents the amortized cost, and gross unrealized gains and losses on all securities at December 31, 2015:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Short-term Investments:
FDIC Guaranteed certificates of deposit	$	1,920	$	—	$	—	$	1,920
Corporate Notes/Bonds		6,980		—		5		6,975

Total short-term investments	$	8,900	$	—	$	5	$	8,895

The following table presents the amortized cost, and gross unrealized gains and losses on all securities at December 31, 2014:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Short-term Investments:
FDIC Guaranteed certificates of deposit	$	2,120	$	—	$	2	$	2,118
Corporate Notes/Bonds		18,458		—		14		18,444

Total short-term investments	$	20,578	$	—	$	16	$	20,562

The Company values its investments at fair value, defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

•

Level 1—Quoted prices in active markets for identical assets or liabilities.

•

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s fixed income available-for-sale securities consist of high-quality, investment grade commercial paper, FDIC guaranteed certificates of deposits, corporate notes and government securities. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. The valuation techniques used to measure the fair value of the Company’s financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques.

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2015:


	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market funds	$	17,702	$	—	$	—	$	17,702
Investments:
Available-for-sales securities—current:
FDIC Guaranteed certificates of deposit		—		1,920		—		1,920
Corporate notes/bonds		—		6,975		—		6,975

Total	$	17,702	$	8,895	$	—	$	26,597

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2014:


	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market funds	$	21,963	$	—	$	—	$	21,963
Investments:
Available-for-sales securities—current:
FDIC Guaranteed certificates of deposit		—		2,118		—		2,118
Corporate notes/bonds		—		18,444		—		18,444

Total	$	21,963	$	20,562	$	—	$	42,525

There are no terms or conditions restricting the Company from redeeming any of its investments.

In addition to the debt securities noted above, the Company had approximately $3.5 million and $2.4 million of time deposits included in cash and cash equivalents as of December 31, 2015 and 2014, respectively.