Fair Value of Financial Instruments Not Measured at Fair Value on a Recurring Basis

6 Months Ended

Jun. 30, 2014

Fair Value of Financial Instruments Not Measured at Fair Value on a Recurring Basis

4. Fair Value of Financial Instruments Not Measured at Fair Value on a Recurring Basis

The following are descriptions of the valuation methodologies used for estimating the fair value of financial instruments not recorded at fair value on a recurring basis in the balance sheet; these financial instruments are carried at historical cost or amortized cost in the condensed consolidated balance sheets.

• Short-term financial assets: Short-term financial assets include cash and cash equivalents, restricted cash, accrued interest receivable, and other assets. These assets are carried at historical cost. The carrying amount approximates fair value due to the short term nature of the financial instruments.

• Short-term financial liabilities: Short-term financial liabilities include accounts payable, accrued interest payable, other accrued expenses and payables to investors. These liabilities are carried at historical cost. The carrying amount approximates fair value due to the short term nature of the financial instruments.

• Term Loan: Based on the frequent interest reset features of the term loan, the Company considers the carrying value of the term loan to approximate its fair value as of June 30, 2014.