Acumen Pharmaceuticals, Inc. Fair Value Disclosure
| Fair value measurements as of December 31, 2024 using | |||||||||||||||||||||||
| Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value as of December 31, 2024 | ||||||||||||||||||||
| Assets included in: | |||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Money market securities | $ | 35,268 | $ | — | $ | — | $ | 35,268 | |||||||||||||||
| Marketable securities | |||||||||||||||||||||||
| Corporate debt securities | — | 178,901 | — | 178,901 | |||||||||||||||||||
| Government and agency - U.S. | — | 16,997 | — | 16,997 | |||||||||||||||||||
| Total fair value | $ | 35,268 | $ | 195,898 | $ | — | $ | 231,166 | |||||||||||||||
| Liabilities included in: | |||||||||||||||||||||||
| Debt, long-term | |||||||||||||||||||||||
| Embedded derivative liabilities | $ | — | $ | — | $ | 970 | $ | 970 | |||||||||||||||
| Total fair value | $ | — | $ | — | $ | 970 | $ | 970 | |||||||||||||||
| Fair value measurements as of December 31, 2023 using | |||||||||||||||||||||||
| Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value as of December 31, 2023 | ||||||||||||||||||||
| Assets included in: | |||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Money market securities | $ | 66,207 | $ | — | $ | — | $ | 66,207 | |||||||||||||||
| Marketable securities | |||||||||||||||||||||||
| Corporate debt securities | — | 201,635 | — | 201,635 | |||||||||||||||||||
| Government and agency - U.S. | — | 37,554 | — | 37,554 | |||||||||||||||||||
| Total fair value | $ | 66,207 | $ | 239,189 | $ | — | $ | 305,396 | |||||||||||||||
| Liabilities included in: | |||||||||||||||||||||||
| Debt, long-term | |||||||||||||||||||||||
| Embedded derivative liabilities | $ | — | $ | — | $ | 2,560 | $ | 2,560 | |||||||||||||||
| Total fair value | $ | — | $ | — | $ | 2,560 | $ | 2,560 | |||||||||||||||
| Balance, January 1, 2023 | $ | — | |||
| Fair value of embedded derivatives at issuance of Term Loan | 1,200 | ||||
| Change in fair value of embedded derivatives | 1,360 | ||||
| Balance, December 31, 2023 | 2,560 | ||||
| Change in fair value of embedded derivatives | (1,590) | ||||
| Balance, December 31, 2024 | $ | 970 | |||
| December 31, | November 10, | ||||||||||||||||
| 2024 | 2023 | 2023 | |||||||||||||||
| Conversion price | $2.53 | $2.53 | $2.53 | ||||||||||||||
| Expected term (in years) | 3.7 | 4.7 | 4.9 | ||||||||||||||
| Expected equity volatility | 98.2% | 106.7% | 102.5% | ||||||||||||||
| Risk-free interest rate | 4.3% | 3.9% | 4.7% | ||||||||||||||
| Discount for lack of marketability | 12.5% | 11.5% | 9.5% | ||||||||||||||
| Expected dividend yield | 0% | 0% | 0% | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 27, 2025 | Showing above |
| 2022 | Mar 27, 2023 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.