Achieve Life Sciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands):


September 30, 2014	Level 1		Level 2		Level 3		Total
Assets
Cash	$	17,934	$	—	$	—	$	17,934
Money market securities		31,016		—		—		31,016
Restricted cash		251		—		—		251
Corporate bonds and commercial paper		—		5,057		—		5,057

Total assets	$	49,201	$	5,057	$	—	$	54,258
Liabilities
Warrants	$	—	$	—	$	3,975	$	3,975

Summary of Changes in Fair Value of Level 3 Financial Liabilities

The following table presents the changes in fair value of our total Level 3 financial liabilities for the nine months ended September 30, 2014. During the nine months ended September 30, 2014 we issued 3.5 million common stock warrants that were classified as liabilities (in thousands):


	Liability at December 31, 2013		Issuance of Warrants		Unrealized Gain on warrants			Liability at September 30, 2014
Warrant liability	$	214	$	6,529	$	(2,768	)	$	3,975

Summary of Marketable Securities

Marketable securities consist of the following (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
September 30, 2014

Cash	$	17,934	$	—	$	—		$	17,934
Money market securities		31,016		—		—			31,016

Total cash and cash equivalents	$	48,950	$	—	$	—		$	48,950

Money market securities		251		—		—			251

Total restricted cash	$	251	$	—	$	—		$	251

Corporate bonds and commercial paper		5,061		—		(4	)		5,057

Total short-term investments	$	5,061	$	—	$	(4	)	$	5,057

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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