ARGAN INC Fair Value Disclosure
NOTE 4 – FAIR VALUE MEASUREMENTS
The following table presents the Company’s financial instruments as of January 31, 2026 and 2025 that are measured and recorded at fair value on a recurring basis:
January 31, 2026 | January 31, 2025 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||
| Inputs | | Inputs | Inputs | | Inputs | Inputs | | Inputs | |||||||||
Cash equivalents: | ||||||||||||||||||
Money market funds | $ | 149,597 | $ | — | $ | — | $ | 93,067 | $ | — | $ | — | ||||||
Available-for-sale securities: | ||||||||||||||||||
U.S. Treasury notes | — | 403,599 | — | — | 226,745 | — | ||||||||||||
Totals | $ | 149,597 | $ | 403,599 | $ | — | $ | 93,067 | $ | 226,745 | $ | — | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 26, 2026 | Showing above |
| 2025 | Mar 27, 2025 | |
| 2024 | Apr 11, 2024 | |
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.