Black Diamond Therapeutics, Inc.BDTX

Black Diamond Therapeutics, Inc. Fair Value Disclosure

10-KFiled Mar 6, 20252 min read
FAIR VALUE MEASUREMENTS
The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values:

Fair value measurements at December 31, 2024 using:

Level 1

Level 2Level 3Total
Assets:





Cash equivalents:
Money market funds$35,345 $— $— $35,345 
Investments:
Commercial paper— 34,914 — 34,914 
Corporate bonds— 27,224 — 27,224 
Total$35,345 $62,138 $— $97,483 

Fair value measurements at December 31, 2023 using:

Level 1

Level 2Level 3Total
Assets:





Cash equivalents:
Money market funds$30,803 $— $— $30,803 
Investments:
Commercial paper— 44,871 — 44,871 
Corporate bonds— 30,308 — 30,308 
Total$30,803 $75,179 $— $105,982 
When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. When available, the Company uses quoted market prices to measure fair value. The valuation technique used to measure fair value for the Company's Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market-based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, the Company is required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument.
There were no transfers in or out of Level 3 categories in the periods presented.

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.

Other Available Disclosures

Income TaxesEarnings Per SharePP&ELeasesSegmentsCommitmentsStock CompensationNew Standards