Andersen Group Inc. Fair Value Disclosure
| December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash equivalents | |||||||||||||||||||||||
| Money market funds | $ | 212,232 | $ | — | $ | — | $ | 212,232 | |||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash equivalents | |||||||||||||||||||||||
| Money market funds | $ | 77,451 | $ | — | $ | — | $ | 77,451 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Other liabilities | |||||||||||||||||||||||
| Contingent consideration | $ | — | $ | — | $ | 192 | $ | 192 | |||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Balance January 1, |
$ | 192 | $ | 514 | $ | 446 | |||||||||||
Remeasurement (gain)/loss |
(192) | (322) | 68 | ||||||||||||||
| Balance December 31, | $ | — | $ | 192 | $ | 514 | |||||||||||
| December 31, 2025 | |||||||||||||||||||||||
Amortized cost |
Unrealized gains |
Unrealized losses |
Fair value | ||||||||||||||||||||
Due within one year or less |
$ | 8,179 | $ | 20 | $ | — | $ | 8,199 | |||||||||||||||
Due between one and two years |
— | — | — | — | |||||||||||||||||||
Total held-to-maturity securities |
$ | 8,179 | $ | 20 | $ | — | $ | 8,199 | |||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
Amortized cost |
Unrealized gains |
Unrealized losses |
Fair value | ||||||||||||||||||||
Due within one year or less |
$ | 22,485 | $ | 31 | $ | — | $ | 22,516 | |||||||||||||||
Due between one and two years |
8,066 | 21 | (28) | 8,059 | |||||||||||||||||||
Total held-to-maturity securities |
$ | 30,551 | $ | 52 | $ | (28) | $ | 30,575 | |||||||||||||||
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.