Arena Group Holdings, Inc.AREN

Arena Group Holdings, Inc. Fair Value Disclosure

10-KFiled Mar 16, 20262 min read
Fair Value Measurement
The Company’s financial instruments may consist of Level 1, Level 2, or Level 3 valuations. As of December 31, 2025 and 2024, the Company’s cash equivalents of $4,241 and cash and cash equivalents of $4,362, respectively, were Level 1 assets and included savings deposits, overnight investments, and other liquid funds with financial institutions.
The Company’s Term Debt (as described below) is carried at amortized cost, with a carrying value of $97,578 and $110,436 as of December 31, 2025 and 2024, respectively. The carrying value of the Company's long-term debt with fixed interest rates approximates fair value based on instruments with similar terms (Level 2), as of December 31, 2025. The Simplify Loan (as described below in note 16) was carried at amortized cost in 2024, and had a carrying value of $10,651 as of December 31, 2024.

Fexy Put Option – The Company accounted for certain common stock issued in connection with the acquisition of Fexy Studios on January 11, 2023 that was subject to a put option (which provided for a cash payment to the sellers on the first anniversary date of the closing (or January 11, 2024) in the event the common stock trading price on such date was less
than the common stock trading price on the day immediately preceding the acquisition date, or $8.10 per share), as a derivative liability.
During the year ended December 31, 2024, the Company paid the Fexy Put Option and recorded the repurchase of 274,692 shares of the Company’s common stock issued in connection with the acquisition, resulting in a loss of $379 as reflected on the consolidated statement of stockholders’ deficiency.

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Apr 15, 2025
2023Apr 1, 2024
2022Mar 31, 2023
2021Apr 1, 2022
2020Aug 16, 2021
2019Apr 9, 2021
2018Jan 8, 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.

Other Available Disclosures

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