Acrivon Therapeutics, Inc. Fair Value Disclosure
4. Fair Value Measurement
The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy to determine such fair value as of December 31, 2025 and 2024 (in thousands):
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Fair Value Measurements at December 31, 2025: |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Cash equivalents: |
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Money market funds |
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$ |
39,719 |
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$ |
39,719 |
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$ |
— |
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$ |
— |
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Short-term investments: |
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U.S. Treasury securities |
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67,092 |
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— |
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67,092 |
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— |
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U.S. government-sponsored enterprise securities |
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9,991 |
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— |
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9,991 |
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— |
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Total assets |
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$ |
116,802 |
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$ |
39,719 |
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$ |
77,083 |
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$ |
— |
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Fair Value Measurements at December 31, 2024: |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Cash equivalents: |
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Money market funds |
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$ |
38,442 |
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$ |
38,442 |
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$ |
— |
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$ |
— |
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Short-term investments: |
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U.S. Treasury securities |
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129,730 |
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129,730 |
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— |
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— |
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U.S. government-sponsored enterprise securities |
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9,932 |
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— |
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9,932 |
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— |
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Long-term investments: |
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U.S. Treasury securities |
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5,089 |
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5,089 |
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— |
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— |
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Total assets |
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$ |
183,193 |
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$ |
173,261 |
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$ |
9,932 |
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$ |
— |
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The Company classifies its money market funds and on-the-run U.S. Treasury securities as Level 1 assets under the fair value hierarchy as these assets have been valued using quoted market prices in active markets without any valuation adjustment. The Company classifies its off-the-run U.S. Treasury securities and U.S. government-sponsored enterprise securities as Level 2 assets under the fair value hierarchy as these assets have been valued using information obtained through a third-party pricing service as of the balance sheet date, using observable market inputs that may include trade information, broker or dealer quotes, bids, offers, or a combination of these data sources.
During the years ended December 31, 2025 and 2024, there were no transfers between levels. The Company uses the carrying amounts of its restricted cash, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities to approximate their fair values due to the short-term nature of these amounts.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 28, 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.