3. Fair Value of Financial Instruments

 

As of December 31, 2015 and 2014, we had invested our financial assets in a money market fund that can be converted to cash at par on demand. We measured these funds, which totaled $31.6 million and $21.9 million as of December 31, 2015 and 2014, respectively, at fair value, which approximates cost, as of the respective dates and classified them as Level 1 assets in the fair value hierarchy for financial assets. 

 

All cash equivalents and short-term investments held as of December 31, 2015 and 2014 were in active markets and valued based upon their quoted prices. We did not recognize any realized gains or losses on sales of investments for any period presented.