MNKD 2017 Annual Report

Financial Liabilities — The following tables set forth the fair value of the Company’s financial instruments (in millions): As of December 31, 2017 Fair Value Measurements Using Carrying Amount Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Financial liabilities: . . . . . . . . . . . . . . . . . . Senior convertible notes (2021 notes) . . . . . . . . . . . . . . . . . . . . . . . $ 24.4 $— $— $ 19.8 $ 19.8 Facility financing obligation . . . . . . . 52.7 — — 54.6 54.6 Milestone rights . . . . . . . . . . . . . . . . . 8.9 — — 19.1 19.1 Total financial liabilities . . . . . . $ 86.0 $— $— $ 93.5 $ 93.5 As of December 31, 2016 Fair Value Measurements Using Carrying Value Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Financial liabilities: Senior convertible notes (2018 notes) . . . . . . . . . . . . . . . . . . . . . . . $ 27.6 $— $— $ 22.9 $ 22.9 Facility financing obligation . . . . . . . 71.3 — — 74.5 74.5 Milestone rights . . . . . . . . . . . . . . . . . 8.9 — — 18.4 18.4 Warrant liability (at recurring fair value) . . . . . . . . . . . . . . . . . . . . . . . 7.4 — — 7.4 7.4 Total financial liabilities . . . . . . $115.2 $— $— $123.2 $123.2 The following table provides a roll forward of the fair values of financial assets and liabilities that are carried at fair value (in millions): Warrants Assets Held for Sale Fair value, January 1, 2016 . . . . . . . . . . . . . . . . . . . . . . $ — $ — Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.8 17.3 Changes in fair value . . . . . . . . . . . . . . . . . . . . . . . (5.4) (0.6) Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — Fair value, December 31, 2016 . . . . . . . . . . . . . . . . . . . $ 7.4 $ 16.7 Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — Changes in fair value . . . . . . . . . . . . . . . . . . . . . . . (5.5) — Settlement through exchange of common shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.9) Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (16.7) Fair value, December 31, 2017 . . . . . . . . . . . . . . . . . . . $ — $ — Senior Convertible Notes — The estimated fair value of the 2021 notes was calculated based on model- derived valuations whose inputs were observable, such as the Company’s stock price and yields on U.S. Treasury notes and actively traded bonds, and non-observable, such as the Company’s longer-term historical volatility, and 107