4. INVESTMENTS

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 Company did not have any short-term investments as of March 31, 2017 and December 31, 2016.

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 below 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.

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

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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.

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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 following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2017:

	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents:
Money market funds	$	10,960	$	—	$	—	$	10,960

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2016:

	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents:
Money market funds	$	10,949	$	—	$	—	$	10,949

In addition to the money market funds above, the Company had approximately $7.4 million and $6.7 million of time deposits included in cash and cash equivalents as of March 31, 2017 and December 31, 2016, respectively.