ArriVent BioPharma, Inc. Fair Value Disclosure
(4) | Fair Value Measurements |
The following tables show the Company’s cash equivalents and available-for-sale securities’ carrying amounts, fair values, and fair value hierarchy as of December 31, 2025 and 2024 (in thousands):
December 31, 2025 | ||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Level 1 | | Level 2 | | Level 3 | ||||||||||||
| | | ||||||||||||||||||
Money market funds | $ | 40,494 | $ | — | $ | — | $ | 40,494 | $ | 40,494 | $ | — | $ | — | ||||||
Corporate securities | 105,373 | 78 | (25) | 105,426 | 16,347 | 89,079 | — | |||||||||||||
Government securities | 161,882 | 116 | (143) | 161,855 | — | 161,855 | — | |||||||||||||
Total assets measured at fair value | $ | 307,749 | $ | 194 | $ | (168) | $ | 307,775 | $ | 56,841 | $ | 250,934 | $ | — | ||||||
December 31, 2024 | ||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Level 1 | | Level 2 | | Level 3 | ||||||||||||
| | | ||||||||||||||||||
Money market funds | $ | 49,031 | $ | — | $ | — | $ | 49,031 | $ | 49,031 | $ | — | $ | — | ||||||
Corporate securities | 114,577 | 10 | (148) | 114,439 | — | 114,439 | — | |||||||||||||
Government securities | 98,150 | 18 | (91) | 98,077 | — | 98,077 | — | |||||||||||||
Total assets measured at fair value | $ | 261,758 | $ | 28 | $ | (239) | $ | 261,547 | $ | 49,031 | $ | 212,516 | $ | — | ||||||
Cash balances were $5.0 million at each of December 31, 2025 and 2024. Money market funds are highly liquid investments. The pricing information on the Company’s money market funds are based on quoted prices in active markets. This approach results in a classification of these securities as Level 1 of the fair value hierarchy.
The Company’s investment portfolio includes many fixed income securities that do not always trade on a daily basis. As a result, the pricing services used by the Company applied other available information as applicable through processes such as benchmark yields, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. In addition, model processes were used to assess interest rate impact and develop prepayment scenarios. These models take into consideration relevant credit information, perceived market movements, sector news and economic events. The inputs into these models may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads and other relevant data.
As of December 31, 2025, $267.3 million of the Company’s fixed income securities have maturity dates within the next twelve months. All securities are considered available for sale. During the year ended December 31, 2025, the Company had proceeds from the sale of available-for-sale marketable securities of $18.9 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 3, 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.