ALX ONCOLOGY HOLDINGS INC Fair Value Disclosure
(4) FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents the Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2025 and 2024 (in thousands):
|
|
December 31, 2025 |
|
|||||||||||||||
|
|
Fair Value |
|
Amortized Cost |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Fair Value |
|
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
Level 1 |
|
$ |
14,682 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
14,682 |
|
Short-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury securities |
|
Level 1 |
|
|
5,462 |
|
|
|
5 |
|
|
|
— |
|
|
|
5,467 |
|
U.S. government agency securities |
|
Level 2 |
|
|
996 |
|
|
|
— |
|
|
|
— |
|
|
|
996 |
|
Corporate debt securities |
|
Level 2 |
|
|
19,194 |
|
|
|
21 |
|
|
|
— |
|
|
|
19,215 |
|
Commercial paper |
|
Level 2 |
|
|
2,738 |
|
|
|
1 |
|
|
|
— |
|
|
|
2,739 |
|
Long-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities |
|
Level 2 |
|
|
3,493 |
|
|
|
1 |
|
|
|
— |
|
|
|
3,494 |
|
Total |
|
|
|
$ |
46,565 |
|
|
$ |
28 |
|
|
$ |
— |
|
|
$ |
46,593 |
|
|
|
December 31, 2024 |
|
|||||||||||||||
|
|
Fair Value |
|
Amortized Cost |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Fair Value |
|
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
Level 1 |
|
$ |
15,468 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
15,468 |
|
Short-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury securities |
|
Level 1 |
|
|
52,167 |
|
|
|
148 |
|
|
|
— |
|
|
|
52,315 |
|
U.S. government agency securities |
|
Level 2 |
|
|
3,101 |
|
|
|
6 |
|
|
|
— |
|
|
|
3,107 |
|
Corporate debt securities |
|
Level 2 |
|
|
52,657 |
|
|
|
122 |
|
|
|
— |
|
|
|
52,779 |
|
Commercial paper |
|
Level 2 |
|
|
1,988 |
|
|
|
1 |
|
|
|
— |
|
|
|
1,989 |
|
Long-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate debt securities |
|
Level 2 |
|
|
3,526 |
|
|
|
1 |
|
|
|
(3 |
) |
|
|
3,524 |
|
Total |
|
|
|
$ |
128,907 |
|
|
$ |
278 |
|
|
$ |
(3 |
) |
|
$ |
129,182 |
|
The Company did not have any outstanding financial liabilities to be re-measured on a recurring basis as of December 31, 2025 and 2024.
The fair value of cash equivalents and available-for-sale investments by classification included in the consolidated balance sheets was as follows as of December 31, 2025 and 2024 (in thousands):
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
Cash equivalents |
|
$ |
14,682 |
|
|
$ |
15,468 |
|
Short-term investments |
|
|
28,417 |
|
|
|
110,190 |
|
Long-term investments |
|
|
3,494 |
|
|
|
3,524 |
|
Total |
|
$ |
46,593 |
|
|
$ |
129,182 |
|
Cash and cash equivalents in the above table excludes bank account cash of $1.7 million and $2.1 million as of December 31, 2025 and 2024, respectively.
The fair value of cash equivalents and available-for-sale investments by contractual maturity was as follows as of December 31, 2025 and 2024 (in thousands):
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
Maturing in one year or less |
|
$ |
43,099 |
|
|
$ |
125,658 |
|
Maturing after one year through five years |
|
|
3,494 |
|
|
|
3,524 |
|
Total |
|
$ |
46,593 |
|
|
$ |
129,182 |
|
The primary objective of the Company’s investment portfolio is to maintain safety of principal, prudent levels of liquidity and acceptable levels of risk. The Company’s investment policy limits investments to certain types of instruments issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.
There were no transfers of assets or liabilities between the fair value measurement levels during the years ended December 31, 2025 and 2024 and there were no financial instruments classified as Level 3 as of December 31, 2025 and 2024.
As of December 31, 2025 and 2024, accrued interest receivable related to the Company’s investments of $0.3 million and $0.9 million, respectively, was included in on the consolidated balance sheets.
As of December 31, 2025, the unrealized losses for available-for-sale investments were non-credit related and the Company does not intend to sell the investments that were in an unrealized loss position, nor will it be required to sell those investments before recovery of their amortized costs basis, which may be maturity. As of December 31, 2025 and 2024, no allowance for credit losses for the Company’s investments was recorded. As of December 31, 2025 and 2024, there were no securities in a continuous net unrealized loss position for more than 12 months. As of December 31, 2025 and 2024, the Company has not recognized any impairment losses on available-for-sale investments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 18, 2021 | |
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.