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Fair value measurements
 12 Months Ended
Dec. 31, 2016
Fair value measurements [Abstract]  
Fair value measurements
4. Fair value measurements

  The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis:

 
December 31, 2016
 
(in thousands)
 
Level 1
  
Level 2
  
Level 3
  
Total
 
Assets:
            
Investment in money market funds (1)
 
$
10
  
$
-
  
$
-
  
$
10
 
Total assets
 
$
10
  
$
-
  
$
-
  
$
10
 
                 
Liabilities:
                
Contingent consideration
 
$
-
  
$
-
  
$
13,185
  
$
13,185
 
Total liabilities
 
$
-
  
$
-
  
$
13,185
  
$
13,185
 
                 
 
December 31, 2015
 
(in thousands)
 
Level 1
  
Level 2
  
Level 3
  
Total
 
Assets:
                
Investment in money market funds (1)
 
$
3,323
  
$
-
  
$
-
  
$
3,323
 
Total assets
 
$
3,323
  
$
-
  
$
-
  
$
3,323
 
                 
Liabilities:
                
Contingent price consideration
 
$
-
  
$
-
  
$
25,155
  
$
25,155
 
Total liabilities
 
$
-
  
$
-
  
$
25,155
  
$
25,155
 

(1) Included in cash and cash equivalents in accompanying consolidated balance sheets.

As of December 31, 2016 and 2015, the Company did not have any transfers between Level 1 and Level 2 assets or liabilities.

For the year ended December 31, 2016 and 2015, the contingent consideration obligation associated with the EV-035 series of molecules and the broad spectrum antiviral platform program decreased by $5.4 million and $9.4 million, respectively. These changes are primarily due to the estimated timing and probability of success for certain development and regulatory milestones and the estimated timing and volume of potential future sales of the EV-035 series of molecules and the broad spectrum antiviral platform, which are inputs that have no observable market (Level 3), along with the novation of the Defense Threat Reduction Agency ("DTRA") contract for the EV-035 series of molecules. These decreases in the contingent consideration were classified in the Company's statement of operations as both selling, general and administrative expense and research and development expense. During  2015, the Company received novation of the DTRA contract and paid the $4.0 million milestone to Evolva in the second quarter of 2015.

For the years ended December 31, 2016 and 2015, the contingent consideration obligations associated with RSDL decreased by $5.4 million and $1.5 million, respectively. The fair value of the RSDL contingent consideration obligations decreased as a result of management's assessment of the assumed and actual achievement of future net sales, which are inputs that have no observable market (Level 3). These changes are classified in the Company's statement of operations as cost of product sales and contract manufacturing.

The following table is a reconciliation of the beginning and ending balance of the liabilities measured at fair value using significant unobservable inputs (Level 3) during the years ended December 31, 2016 and 2015.

(in thousands)
   
Balance at December 31, 2014
 
$
40,037
 
(Income) expense included in earnings
  
(10,884
)
Settlements
  
(4,803
)
Purchases, sales and issuances
  
805
 
Transfers in/(out) of Level 3
  
-
 
Balance at December 31, 2015
 
$
25,155
 
(Income) expense included in earnings
  
(10,857
)
Settlements
  
(1,113
)
Purchases, sales and issuances
  
-
 
Transfers in/(out) of Level 3
  
-
 
Balance at December 31, 2016
 
$
13,185
 

Separate disclosure is required for assets and liabilities measured at fair value on a recurring basis from those measured at fair value on a non-recurring basis. As of December 31, 2016, there were no assets or liabilities measured at fair value on a non-recurring basis. As of December 31, 2015, the in-process research and development asset for the EV-035 series of molecules was measured at fair value on a non-recurring basis.