NOTE 9: FAIR VALUE OF FINANCIAL INSTRUMENTS

The following tables present the Company’s fair value hierarchy for all its financial assets and liabilities, by major security type, measured at fair value on a recurring basis (in thousands):

 

December 31, 2025

 

Estimated Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

      Money market fund

 

$

40,367

 

 

$

40,367

 

 

$

 

 

$

 

 

December 31, 2024

 

Estimated Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

      Money market fund

 

$

68,543

 

 

$

68,543

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 25, 2026Showing above
2024Mar 25, 2025
2023Apr 1, 2024
2022Mar 22, 2023
2021Feb 28, 2022
2020Mar 31, 2021
2019Mar 26, 2020
2018Mar 28, 2019
2017Mar 8, 2018

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.