3.
Fair Value Measurements

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy described in Note 2 above (in thousands):

 

 

 

 

Fair Value Measurements Using

 

As of December 31, 2025

 

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

16,100

 

 

$

16,100

 

 

$

 

 

$

 

U.S. government obligations (2)

 

 

89,713

 

 

 

 

 

 

89,713

 

 

 

 

Total fair value of assets

 

$

105,813

 

 

$

16,100

 

 

$

89,713

 

 

$

 

 

(1)
Included in cash and cash equivalents on the balance sheets.
(2)
Included in short-term investments on the balance sheets.

 

 

 

 

 

Fair Value Measurements Using

 

As of December 31, 2024

 

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

24,889

 

 

$

24,889

 

 

$

 

 

$

 

U.S. government obligations (2)

 

 

118,289

 

 

 

 

 

 

118,289

 

 

 

 

Corporate debt securities (2)

 

 

7,238

 

 

 

 

 

 

7,238

 

 

 

 

Total fair value of assets

 

$

150,416

 

 

$

24,889

 

 

$

125,527

 

 

$

 

 

(1)
Included in cash and cash equivalents on the balance sheets.
(2)
Included in short-term investments on the balance sheets.

The Company’s money market funds are classified as Level 1 because they are valued using quoted market prices in active markets for identical assets. The Company’s investments consist of available-for-sale securities and are classified as Level 2 because their value is based on valuations using significant inputs derived from or corroborated by observable market data.

There were no transfers of assets between fair value levels for any period presented.

Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Mar 27, 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.