7. FAIR VALUE MEASUREMENTS

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values:

 

 

December 31, 2025

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

207,599

 

 

$

 

 

$

 

 

$

207,599

 

Restricted cash equivalents

 

 

985

 

 

 

 

 

 

 

 

 

985

 

Treasury bills

 

 

90,328

 

 

 

 

 

 

 

 

 

90,328

 

Total financial assets

 

$

298,912

 

 

$

 

 

$

 

 

$

298,912

 

 

 

December 31, 2024

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

37,550

 

 

$

 

 

$

 

 

$

37,550

 

Restricted cash equivalents

 

 

1,446

 

 

 

 

 

 

 

 

 

1,446

 

Treasury bills

 

 

99,110

 

 

 

 

 

 

 

 

 

99,110

 

Total financial assets

 

$

138,106

 

 

$

 

 

$

 

 

$

138,106

 

 

The Company classifies its cash equivalents and marketable securities as Level 1 assets under the fair value hierarchy, as these assets have been valued using quoted market prices for identical assets in active markets without any valuation adjustment.

Historical Timeline

Fiscal YearFiled
2025Mar 3, 2026Showing above
2024Mar 4, 2025
2023Feb 22, 2024
2022Mar 13, 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.