Atea Pharmaceuticals, Inc. Fair Value Disclosure
3. Fair Value Measurements
The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values:
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As of 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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$ |
87,584 |
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$ |
— |
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$ |
— |
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$ |
87,584 |
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Marketable Securities |
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US Treasury obligations |
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— |
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59,845 |
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— |
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59,845 |
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Asset-backed securities |
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— |
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43,237 |
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— |
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43,237 |
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Commercial paper |
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— |
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9,422 |
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— |
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9,422 |
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Corporate bonds |
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— |
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93,613 |
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— |
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|
93,613 |
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Total |
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$ |
87,584 |
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$ |
206,117 |
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$ |
— |
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$ |
293,701 |
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As of 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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$ |
60,984 |
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$ |
— |
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|
$ |
— |
|
|
$ |
60,984 |
|
Marketable Securities |
|
|
|
|
|
|
|
|
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US Treasury obligations |
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— |
|
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109,036 |
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— |
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|
109,036 |
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US Government agency securities |
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— |
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25,094 |
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— |
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25,094 |
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Asset-backed securities |
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— |
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60,071 |
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— |
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|
60,071 |
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Commercial paper |
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— |
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21,857 |
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— |
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|
21,857 |
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Corporate bonds |
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— |
|
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|
173,967 |
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|
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— |
|
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|
173,967 |
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Total |
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$ |
60,984 |
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|
$ |
390,025 |
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$ |
— |
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$ |
451,009 |
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The Company’s assets with fair value categorized as Level 1 within the fair value hierarchy include money market accounts which invest in money market funds that are publicly traded mutual funds and are presented as cash equivalents on the consolidated balance sheets as of December 31, 2025 and 2024.
There were no transfers among Level 1, Level 2 or Level 3 categories in the years ended December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 30, 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.