Arcellx, Inc. Fair Value Disclosure
3. Fair Value of Financial Instruments
The fair value of the Company’s financial assets by level within the fair value hierarchy were as follows (in thousands):
|
December 31, 2025 |
|
|||||||
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|||
Money market fund (cash equivalent) |
$ |
78,872 |
|
$ |
— |
|
$ |
— |
|
Certificate of deposit (long-term restricted cash) |
— |
|
|
2,616 |
|
— |
|
||
Marketable securities: |
|
|
|
|
|
|
|||
Government agency |
— |
|
|
439,788 |
|
— |
|
||
Total assets measured at fair value |
$ |
78,872 |
|
$ |
442,404 |
|
$ |
— |
|
|
December 31, 2024 |
|
|||||||
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|||
Money market fund (cash equivalent) |
$ |
104,579 |
|
$ |
— |
|
$ |
— |
|
Money market fund (short-term restricted cash) |
|
208 |
|
— |
|
— |
|
||
Certificate of deposit (long-term restricted cash) |
— |
|
|
2,418 |
|
— |
|
||
Marketable securities: |
|
|
|
|
|
|
|||
Government agency |
— |
|
|
519,973 |
|
— |
|
||
Total assets measured at fair value |
$ |
104,787 |
|
$ |
522,391 |
|
$ |
— |
|
The Company did not transfer any assets measured at fair value on a recurring basis between levels during the years ended December 31, 2025 or 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 29, 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.