3. Fair Value Measurement

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

3. Fair Value Measurement

In accordance with FASB ASC Topic 820, "Fair Value Measurements and Disclosures," (“ASC Topic 820”), the Company measures its cash and cash equivalents and short term investments at fair value on a recurring basis. ASC Topic 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value fair hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 – Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than quoted prices included in Level 1 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 related assets or liabilities.

Level 3 – Unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

As of March 31, 2015 and December 31, 2014, the Company does not have liabilities that are measured at fair value.

The following tables set forth the Company's financial assets measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, based on the three-tier fair value hierarchy:

As of March 31, 2015	Level 1		Level 2		Total
Bank deposits	$	414,840	$	—	$	414,840
Money market funds	2,557,000		—		2,557,000
Cash and cash equivalents	2,971,840		—		2,971,840
Corporate debt securities	5,606,453		—		5,606,453
Total	$	8,578,293	$	—	$	8,578,293

As of December 31, 2014	Level 1		Level 2		Total
Bank deposits	$	972,891	$	—	$	972,891
Money market funds	1,565,867		—		1,565,867
Cash and cash equivalents	2,538,758		—		2,538,758
Corporate debt securities	6,799,702		—		6,799,702
Commercial paper	599,934		—		599,934
Short term investments	7,399,636		—		7,399,636
Total	$	9,938,394	$	—	$	9,938,394

The fair values of bank deposits, money market funds, corporate debt securities and commercial paper classified as Level 1 were derived from quoted market prices as active markets for these instruments exist. The Company has no level 2 or level 3 financial assets. The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2015 and the twelve months ended December 31, 2014.

Investments in debt securities at March 31, 2015, are investment grade and carried a long-term rating of BBB or higher.