Achieve Life Sciences, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

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 year ended December 31, 2014. During the twelve months ended December 31, 2014 we issued 3.5 million common stock warrants that were classified as liabilities (in thousands):

	Liability at				Unrealized			Liability at
	December 31,		Issuance of		Gain on			December 31,
	2013		Warrants		warrants			2014
Warrant liability	$	214	$	6,529	$	(3,741	)	$	3,002

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):

December 31, 2014	Level 1		Level 2		Level 3		Total
Assets
Cash	$	16,481	$	—	$	—	$	16,481
Money market securities		11,416		—		—		11,416
Restricted cash (Note 15)		251		—		—		251
Corporate bonds and commercial paper		—		19,160		—		19,160
Total assets	$	28,148	$	19,160	$	—	$	47,308
Liabilities
Warrants	$	—	$	—	$	3,002	$	3,002

December 31, 2013	Level 1		Level 2		Level 3		Total
Assets
Cash	$	10,575	$	—	$	—	$	10,575
Money market securities		4,018		—		—		4,018
Restricted Cash		314		—		—		314
Corporate bonds and commercial paper		—		24,629		—		24,629
Total assets	$	14,907	$	24,629	$	—	$	39,536
Liabilities
Warrants	$	—	$	—	$	214	$	214

Summary of Cash and Cash Equivalents and Short Term Investments

Cash and cash equivalents and short term investments (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
December 31, 2014	Cost		Gains		Losses			Fair Value
Cash	$	16,481	$	—	$	—		$	16,481
Money market securities		11,416		—		—			11,416
Total cash and cash equivalents	$	27,897	$	—	$	—		$	27,897
Money market securities (restricted cash)		251		—		—			251
Total restricted cash	$	251	$	—	$	—		$	251
Corporate bonds and commercial paper		19,179		1		(20	)		19,160
Total short-term investments	$	19,179	$	1	$	(20	)	$	19,160

			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
December 31, 2013	Cost		Gains		Losses			Fair Value
Cash	$	10,575	$	—	$	—		$	10,575
Money market securities		4,018		—		—			4,018
Total cash and cash equivalents	$	14,593	$	—	$	—		$	14,593
Money market securities (restricted cash)		314		—		—			314
Total restricted cash	$	314	$	—	$	—		$	314
Corporate bonds and commercial paper		24,627		3		(1	)		24,629
Total short-term investments	$	24,627	$	3	$	(1	)	$	24,629

- 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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