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SEC Filings

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

Notes to Unaudited Condensed Financial Statements (Continued)

As of June 30, 2014 and December 31, 2013 and
for the Six Months Ended June 30, 2014 and 2013

5. Fair Value Measurements (Continued)

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 June 30, 2014 and December 31, 2013:

 
  Fair Value Measurements as of June 30, 2014 Using  
 
  Level 1   Level 2   Level 3   Balance as of June 30, 2014  

Assets

                         

Money market funds

  $ 8,434,149   $   $   $ 8,434,149  

Cash-restricted, CD

    200,000             200,000  

Marketable securities, available-for-sale

        9,422,358         9,422,358  
                   

Total assets

  $ 8,634,149   $ 9,422,358   $   $ 18,056,507  
                   
                   

Liabilities

                         

Preferred stock warrant liability

  $   $   $ 301,625   $ 301,625  
                   

Total liabilities

  $   $   $ 301,625   $ 301,625  
                   
                   

 

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

Assets

                         

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  
                   
                   

Liabilities

                         

Preferred stock warrant liability

  $   $   $ 477,375   $ 477,375  
                   

Total liabilities

  $   $   $ 477,375   $ 477,375  
                   
                   

        Preferred stock warrants are exercisable by the holder for shares of the Company's Series C and Series D preferred stock. The fair value of the warrants on the date of issuance and on each re-measurement date of those warrants classified as liabilities is estimated using the Black-Scholes option pricing model using the following assumptions: contractual life according to the remaining terms of the warrants, no dividend yield, weighted average volatility of 83% and weighted average fair value of the underlying instruments of $0.51 and $0.71, and weighted average risk-free interest rate of 1.89% and 2.68%, at June 30, 2014 and December 31, 2013, respectively. For this liability, the Company developed its own assumptions that do not have observable inputs or available market data to support the fair value. This method of valuation involves using inputs such as the fair value of the Company's various classes of preferred stock, stock price volatility, the contractual term of the warrants, risk free interest rates and dividend yields. Due to the nature of these inputs, the valuation of the warrants is considered a Level 3

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