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SEC Filings

VITAE PHARMACEUTICALS, INC filed this Form S-1 on 08/12/2014
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Vitae Pharmaceuticals, Inc.

Notes to the Financial Statements (Continued)

For the Years Ended December 31, 2013 and 2012

5. Fair Value Measurements

        The Company measures certain assets and liabilities at fair value in accordance with ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (the "exit price") in an orderly transaction between market participants at the measurement date. The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. In determining fair value, the Company maximizes the use of quoted prices and observable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of us. The fair value hierarchy is broken down into three levels based on the source of inputs as follows:

    Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.
    Level 2—Valuations based on observable inputs and quoted prices in active markets for similar assets and liabilities.
    Level 3—Valuations based on inputs that are unobservable and models that are significant to the overall fair value measurement.

        The Company's Level 1 assets include money market funds, certificates of deposit ("CD"), and U.S. Treasury notes. Level 2 assets include U.S. government agency securities and corporate debt securities. The following fair value hierarchy tables present information about each major category of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012:

  Fair Value Measurements as of December 31, 2013 Using  
  Level 1   Level 2   Level 3   Balance as of
December 31,



Money market funds

  $ 18,512,463   $   $   $ 18,512,463  

Cash-restricted, CD

    200,000             200,000  

Marketable securities, available-for-sale

        11,299,206         11,299,206  

Total assets

  $ 18,712,463   $ 11,299,206   $   $ 30,011,669  



Preferred stock warrant liability

  $   $   $ 477,375   $ 477,375  

Total liabilities

  $   $   $ 477,375   $ 477,375