Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.10.0.1
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]  
Financial Assets and Liabilities Carried at Fair Value on Recurring Basis

The following tables set forth the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as follows (in thousands):

 

 

 

Fair Value Measurements at September 30, 2018 Using

 

 

 

Quoted Prices in

Active Markets for

Identical Assets

 

 

Significant Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

 

 

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term equity securities

 

$

 

 

$

 

 

$

347

 

 

$

347

 

 

 

 

 

Fair Value Measurements at December 31, 2017 Using

 

 

 

Quoted Prices in

Active Markets for

Identical Assets

 

 

Significant Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

 

 

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

34,907

 

 

$

 

 

$

 

 

$

34,907

 

 

 

(1)

Included in cash and cash equivalents

Summary of Changes in Estimated Fair Value of Level 3 Financial Assets

The following table provides a summary of changes in the estimated fair value of the Company’s Level 3 financial assets for the nine months ended September 30, 2018 (in thousands):

 

Balance at December 31, 2017

 

$

 

Fair value of long-term equity securities at contract inception

 

 

955

 

Change in fair value

 

 

(608

)

Balance at September 30, 2018

 

$

347

 

 

Estimated Fair Value of Equity Securities Assumptions

The estimated fair value of the equity securities was calculated based on the following assumptions as of September 30, 2018 and the contract inception date of April 3, 2018:

 

 

 

September 30,

 

 

April 3,

 

 

 

2018

 

 

2018

 

Discount for lack of marketability

 

 

35

%

 

 

30

%

Estimated time to liquidity of shares

 

1.45 years

 

 

1.45 years

 

 

 

 

 

 

 

 

 

 

Scenario probabilities

 

 

 

 

 

 

 

 

Liquidation

 

 

80

%

 

 

65

%

Near-term sale

 

 

5

%

 

 

5

%

Near-term financing

 

 

15

%

 

 

30

%

 

Outstanding Long Term Debt Carrying Amount and Estimated Fair Value

The carrying amount and the estimated fair value of the Company’s outstanding long-term debt at September 30, 2018, and December 31, 2017, are as follows (in thousands):

 

 

September 30, 2018

 

 

December 31, 2017

 

 

 

Carrying Amount

 

 

Fair Value

 

 

Carrying Amount

 

 

Fair Value

 

Novartis note

 

$

14,853

 

 

$

14,552

 

 

$

14,572

 

 

$

14,178

 

SVB Loan

 

 

7,181

 

 

 

7,182

 

 

 

 

 

 

 

Total

 

$

22,034

 

 

$

21,734

 

 

$

14,572

 

 

$

14,178