Fair Value Measurements

6 Months Ended

Jun. 30, 2015

Fair Value Measurements

Fair Value Measurements

4. Fair Value Measurements

The tables below present information about the Company’s financial assets and liabilities that are measured and carried at fair value as of June 30, 2016 and December 31, 2015 (in thousands) and indicate the level within the fair value hierarchy where each measurement is classified.

	June 30, 2016
	(level 1)		(level 2)		(level 3)		Total
US Treasury obligations, included in cash equivalents	$	52,004	$	—	$	—	$	52,004
US Treasury obligations, included in investments	$	—	$	—	$	—	$	—
Warrants to purchase redeemable convertible preferred stock, included in other long term liabilities	$	—	$	—	$	—	$	—

	December 31, 2015
	(level 1)		(level 2)		(level 3)		Total
US Treasury obligations, included in cash equivalents	$	14,486	$	—	$	—	$	14,486
US Treasury obligations, included in investments	$	3,516	$	—	$	—	$	3,516
Warrants to purchase redeemable convertible preferred stock, included in other long term liabilities	$	—	$	—	$	290	$	290

At June 30, 2016, all cash and cash equivalent investments where held in money markets, and at December 31, 2015 the average maturity for the US Treasury obligations was 106 days. Fair value of US Treasury obligations approximates amortized value.

In July 2015, the Company issued warrants for the purchase of 80,813 shares of common stock at an exercise price of $17.55 in connection with the issuance of convertible notes. These warrants expire three years from date of issuance. Common stock warrants are classified as permanent equity which are initially recorded at issuance date fair value and are not subsequently re‑measured.

In August 2013 and July 2014, in conjunction with the execution of a loan and security agreement (Note 8), the Company issued warrants to the lenders for the purchase of up to 66,668 shares of the Company’s Series D redeemable convertible preferred stock (“Series D Preferred”) at an exercise price of $4.50 per share. At the IPO, these warrants were converted to warrants to purchase 17,888 of common stock at an exercise price of $16.77. These warrants are classified as permanent equity in the accompanying consolidated balance sheets and will expire four years from the date of issuance.

In June 30, 2016, in conjunction with the execution of a loan and security agreement (Note 8), the Company issued warrants to the lenders for the purchase of up to 37,978 shares of the Company’s Series E Preferred at an exercise price of $4.50 per share. At the IPO, these warrants were converted to warrants to purchase 15,094 of common stock at an exercise price of $11.32.  These warrants are classified as permanent equity in the accompanying consolidated balance sheets and will expire four years from the date of issuance.