(3) Marketable Securities and Fair Value Disclosures

Marketable securities consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands):

	March 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Short-term available-for-sale securities:
Corporate bonds	$	13,050	$	3	$	(12	)	$	13,041
Total	$	13,050	$	3	$	(12	)	$	13,041


	December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Short-term available-for-sale securities:
Corporate bonds	$	13,778	$	—	$	(16	)	$	13,762
Total	$	13,778	$	—	$	(16	)	$	13,762
Long-term available-for-sale securities:
Corporate bonds	$	2,355	$	3	$	(6	)	$	2,352
Total	$	2,355	$	3	$	(6	)	$	2,352

As of March 31, 2017, the amortized cost and estimated fair value of available-for-sale securities by contractual maturity were as follows (in thousands):

	Amortized		Fair
	Cost		Value
Due in one year or less	$	13,050	$	13,041
Total	$	13,050	$	13,041

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Inputs used to measure fair value are classified into the following hierarchy:

•

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 assets consist of money market investments. The Company does not have any Level 1 liabilities.

•

Level 2—Unadjusted quoted prices in active markets for similar assets or liabilities; unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability. The Company’s Level 2 assets consist of corporate bonds and commercial paper securities. The Company does not have any Level 2 liabilities.

•

Level 3—Unobservable inputs for the asset or liability. The Company does not have any Level 3 assets or liabilities.

The following table identifies the Company’s assets that were measured at fair value on a recurring basis (in thousands):


	Balance		Level 1		Level 2		Level 3
March 31, 2017
Money market	$	6,170	$	6,170	$	—	$	—
Corporate bonds		13,041		—		13,041		—
Total	$	19,211	$	6,170	$	13,041	$	—


December 31, 2016
Money market	$	7,672	$	7,672	$	—	$	—
Corporate bonds		16,114		—		16,114		—
Total	$	23,786	$	7,672	$	16,114	$	—

As of March 31, 2017 and December 31, 2016, the Company had $6.2 million and $7.7 million, respectively, of cash equivalents consisting of money market funds with maturities of 90 days or less. The Company has the ability to liquidate these investments without restriction. The Company determines fair value for these money market funds and equity securities with Level 1 inputs through quoted market prices. There were no transfers of assets between fair value hierarchy levels during the three month period ended March 31, 2017.

Fair Value of Other Financial Instruments

The carrying amount of other financial instruments, including accounts payable and short-term notes payable approximated fair value due to their short maturities.