Financial Instruments

9 Months Ended

Sep. 30, 2015

Financial Instruments.

Financial Instruments

3.Financial Instruments

The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value, and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value. The Company determines the fair value of the preferred stock warrants (Note 6) using Level 3 inputs. Below is a summary of assets and liabilities measured at fair value on a recurring basis (in thousands):

	As of September 30, 2015
	Quoted Prices in Active Markets (Level 1)		Significant  Observable  Inputs (Level 2)		Significant  Unobservable  Inputs (Level 3)		Total
Assets:
Money market funds	72,005		—		—		72,005
Total	$	72,005	$	—	$	—	$	72,005

	As of December 31, 2014
	Quoted Prices in Active Markets (Level 1)		Significant  Observable  Inputs (Level 2)		Significant  Unobservable  Inputs (Level 3)		Total
Assets:
Money market funds	13,506		—		—		13,506
Total	$	13,506	$	—	$	—	$	13,506
Liabilities:
Warrant Liability	—		—		108		108
Total	$	—	$	—	$	—	$	108

As of September 30, 2015 and December 31, 2014, the Company’s cash equivalents consisted principally of money market funds, which approximate their fair value due to their short-term nature. In connection with the completion of the IPO, warrants exercisable for Preferred Stock were automatically converted into warrants exercisable for Common Stock, resulting in the reclassification of the related warrant liability to additional paid-in capital as the warrants to purchase shares of Common Stock are accounted for as equity instruments (Note 6).