3. Fair Value of Assets and Liabilities

The following table presents 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 as of December 31, 2025 and 2024 (in thousands):

Description

 

December 31,
2025

 

 

Quoted prices in
active
markets
for identical
assets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

 

 

Significant
unobservable
inputs
(Level 3)

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

58,688

 

 

$

58,688

 

 

$

 

 

$

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

  U.S. Government agencies

 

 

84,726

 

 

 

 

 

 

84,726

 

 

 

 

Total financial assets

 

$

143,414

 

 

$

58,688

 

 

$

84,726

 

 

$

 

 

Description

 

December 31,
2024

 

 

Quoted prices in
active
markets
for identical
assets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

 

 

Significant
unobservable
inputs
(Level 3)

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

30,845

 

 

$

30,845

 

 

$

 

 

$

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

  U.S. Government agencies

 

 

119,401

 

 

 

 

 

 

119,401

 

 

 

 

Total financial assets

 

$

150,246

 

 

$

30,845

 

 

$

119,401

 

 

$

 

 

There were no transfers within the fair value hierarchy for the years ended December 31, 2025 and 2024.

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Historical Timeline

Fiscal YearFiled
2025Mar 30, 2026Showing above
2024Mar 24, 2025
2023Mar 27, 2024
2022Mar 15, 2023
2021Mar 23, 2022

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.