Alphatec Holdings, Inc. Fair Value Disclosure
3. Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis include the following as of December 31, 2025 and 2024 (in thousands):
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December 31, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Cash equivalents: |
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Money market funds |
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$ |
23,625 |
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— |
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— |
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$ |
23,625 |
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Total cash equivalents |
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$ |
23,625 |
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— |
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— |
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$ |
23,625 |
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December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Cash equivalents: |
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Money market funds |
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$ |
57,006 |
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— |
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— |
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$ |
57,006 |
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Total cash equivalents |
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$ |
57,006 |
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— |
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— |
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$ |
57,006 |
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The Company did not have any transfers of assets and liabilities between the levels of the fair value measurement hierarchy during the years presented.
Fair Value of Convertible Debt
The fair value, based on a quoted market price (Level 1), of the Company’s outstanding 0.75% Convertible Senior Notes due 2026 (the "2026 Notes") was approximately $79.0 million at December 31, 2025 and approximately $299.6 million at December 31, 2024.
The fair value, based on a quoted market price (Level 1), of the Company’s outstanding 0.75% Convertible Senior Notes due 2030 (the "2030 Notes") was approximately $618 million at December 31, 2025.
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.