Trevena, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value of Financial Instruments (Tables)

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of cash and available-for-sale securities' adjusted cost, gross unrealized gains, gross unrealized losses and fair values by significant investment category

	December 31, 2015
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	20,672,737	$	—	$	—		$	20,672,737	$	20,672,737	$	—
Level 1(1):
Money market funds		4,100,829		—		—			4,100,829		4,100,829		—
U.S. Treasury securities		12,020,862		92		(1,434	)		12,019,520		—		12,019,520

Subtotal		16,121,691		92		(1,434	)		16,120,349		4,100,829		12,019,520

Level 2(2):
Repurchase agreements		22,000,000		—		—			22,000,000		22,000,000		—
U.S. government agency securities		114,049,441		269		(204,783	)		113,844,927		—		113,844,927

Subtotal		136,049,441		269		(204,783	)		135,844,927		22,000,000		113,844,927

Total	$	172,843,869	$	361	$	(206,217	)	$	172,638,013	$	46,773,566	$	125,864,447

	December 31, 2014
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	7,141,548	$	—	$	—		$	7,141,548	$	7,141,548	$	—
Level 1(1):
Money market funds		29,064,011		—		—			29,064,011		29,064,011		—
U.S. Treasury securities		70,717,422		258		(19,040	)		70,698,640		—		70,698,640

Subtotal		99,781,433		258		(19,040	)		99,762,651		29,064,011		70,698,640

Total	$	106,922,981	$	258	$	(19,040	)	$	106,904,199	$	36,205,559	$	70,698,640


(1)	The fair value of Level 1 securities is estimated based on quoted prices in active markets for identical assets or liabilities.
(2)	The fair value of Level 2 securities is estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term on the assets or liabilities.

Schedule of changes in the fair value of the Company's warrant liability representing a recurring measurement classified within Level 3, wherein fair value is estimated using significant unobservable inputs

	Warrant Liability
Balance as of January 1, 2014	$	350,519
Amounts acquired or issued		—
Changes in estimated fair value		(122,412	)
Amounts reclassified to additional paid-in capital		(145,256	)

Balance as of December 31, 2014		82,851
Amounts acquired or issued		—
Changes in estimated fair value		70,387

Balance as of December 31, 2015	$	153,238

Schedule of assumptions used for valuation of warrants

	December 31,
	2015			2014
	Common stock warrant liability			Common stock warrant liability
Estimated remaining term		6.3 years			7.3 years
Risk-free interest rate		2.0	%		2.0	%
Volatility		67.4	%		71.8	%
Dividend yield		0	%		0	%
Fair value of underlying instrument*	$	10.50		$	5.98


*	Trevena, Inc. closing stock price.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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