Bolt Biotherapeutics, Inc. Fair Value Disclosure
3. Fair Value Measurements and Fair Value of Financial Instruments
The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:
Level 1—Quoted prices in active markets for identical assets or liabilities.
Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.
During the years ended December 31, 2025 and 2024, financial assets measured on a recurring basis consist of cash invested in money market accounts, short-term investments, and long-term investments. The fair value of short and long-term investments is based upon market prices quoted on the last day of the fiscal period or other observable market inputs. The Company obtains pricing information from its investment manager and generally determines the fair value of investment securities using standard observable inputs, including reported trades, broker/dealer quotes, bids and/or offers.
There were no transfers in or out of Level 3 fair value measurements during the years ended December 31, 2025 and 2024.
Marketable securities, all of which are classified as available-for-sale securities, consisted of the following at December 31, 2025 and 2024 (in thousands):
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Estimated |
|
||||
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
||||
Asset-backed securities |
|
$ |
5,334 |
|
|
$ |
6 |
|
|
$ |
— |
|
|
$ |
5,340 |
|
U.S. treasury securities |
|
|
991 |
|
|
|
1 |
|
|
|
— |
|
|
|
992 |
|
Other agency securities |
|
|
995 |
|
|
|
— |
|
|
|
— |
|
|
|
995 |
|
Commercial paper |
|
|
7,682 |
|
|
|
1 |
|
|
|
— |
|
|
|
7,683 |
|
Corporate debt securities |
|
|
5,128 |
|
|
|
1 |
|
|
|
— |
|
|
|
5,129 |
|
Total |
|
$ |
20,130 |
|
|
$ |
9 |
|
|
$ |
— |
|
|
$ |
20,139 |
|
|
|
December 31, 2024 |
|
|||||||||||||
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Estimated |
|
||||
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
||||
Asset-backed securities |
|
$ |
19,998 |
|
|
$ |
46 |
|
|
$ |
(10 |
) |
|
$ |
20,034 |
|
U.S. treasury securities |
|
|
14,346 |
|
|
|
18 |
|
|
|
— |
|
|
|
14,364 |
|
Commercial paper |
|
|
2,079 |
|
|
|
3 |
|
|
|
— |
|
|
|
2,082 |
|
Corporate debt securities |
|
|
26,478 |
|
|
|
46 |
|
|
|
(6 |
) |
|
|
26,518 |
|
Total |
|
$ |
62,901 |
|
|
$ |
113 |
|
|
$ |
(16 |
) |
|
$ |
62,998 |
|
As of December 31, 2025, the unrealized losses for available-for-sale investments were primarily due to changes in interest rates and not due to increased credit risks associated with specific securities. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. The Company does not currently intend to sell the investments. As of December 31, 2025, no allowance for credit losses was recorded and the Company did not recognize any impairment losses related to investments.
The tables below show the gross unrealized losses and fair value of the Company's available-for-sale securities with unrealized losses that are not deemed to have credit losses (in thousands), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025 and 2024, respectively:
|
|
December 31, 2025 |
|
|||||||||||||||||||||
|
|
Less Than 12 Months |
|
|
More Than 12 Months |
|
|
Total |
|
|||||||||||||||
|
|
Estimated |
|
|
Unrealized |
|
|
Estimated |
|
|
Unrealized |
|
|
Estimated |
|
|
Unrealized |
|
||||||
|
|
Fair Value |
|
|
Losses |
|
|
Fair Value |
|
|
Losses |
|
|
Fair Value |
|
|
Losses |
|
||||||
Asset-backed securities |
|
$ |
1,003 |
|
|
$ |
— |
|
|
$ |
4,337 |
|
|
$ |
— |
|
|
$ |
5,340 |
|
|
$ |
— |
|
U.S. treasury securities |
|
|
992 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
992 |
|
|
|
— |
|
Other agency securities |
|
|
995 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
995 |
|
|
|
— |
|
Commercial paper |
|
|
7,683 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,683 |
|
|
|
— |
|
Corporate debt securities |
|
|
5,129 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,129 |
|
|
|
— |
|
Total |
|
$ |
15,802 |
|
|
$ |
— |
|
|
$ |
4,337 |
|
|
$ |
— |
|
|
$ |
20,139 |
|
|
$ |
— |
|
|
|
December 31, 2024 |
|
|||||||||||||||||||||
|
|
Less Than 12 Months |
|
|
More Than 12 Months |
|
|
Total |
|
|||||||||||||||
|
|
Estimated |
|
|
Unrealized |
|
|
Estimated |
|
|
Unrealized |
|
|
Estimated |
|
|
Unrealized |
|
||||||
|
|
Fair Value |
|
|
Losses |
|
|
Fair Value |
|
|
Losses |
|
|
Fair Value |
|
|
Losses |
|
||||||
Asset-backed securities |
|
$ |
2,000 |
|
|
$ |
— |
|
|
$ |
18,034 |
|
|
$ |
(10 |
) |
|
$ |
20,034 |
|
|
$ |
(10 |
) |
U.S. treasury securities |
|
|
10,382 |
|
|
|
— |
|
|
|
3,982 |
|
|
|
— |
|
|
|
14,364 |
|
|
|
— |
|
Commercial paper |
|
|
2,082 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,082 |
|
|
|
— |
|
Corporate debt securities |
|
|
14,710 |
|
|
|
— |
|
|
|
11,808 |
|
|
|
(6 |
) |
|
|
26,518 |
|
|
|
(6 |
) |
Total |
|
$ |
29,174 |
|
|
$ |
— |
|
|
$ |
33,824 |
|
|
$ |
(16 |
) |
|
$ |
62,998 |
|
|
$ |
(16 |
) |
Accrued interest receivable on available-for-sale securities were $0.1 million and $0.3 million at December 31, 2025 and 2024, respectively, which are recorded in cash and cash equivalents line item on the Company's balance sheets. The Company has not written off any accrued interest receivables for the years ended December 31, 2025 and 2024.
At December 31, 2025 and 2024, the fair values of the Company’s assets, which are measured at fair value on a recurring basis, were determined using the following inputs (in thousands):
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Total |
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
||||
Money market funds |
|
$ |
7,755 |
|
|
$ |
7,755 |
|
|
$ |
— |
|
|
$ |
— |
|
Asset-backed securities |
|
|
5,340 |
|
|
|
— |
|
|
|
5,340 |
|
|
|
— |
|
U.S. treasury securities |
|
|
992 |
|
|
|
992 |
|
|
|
— |
|
|
|
— |
|
Other agency securities |
|
|
995 |
|
|
|
— |
|
|
|
995 |
|
|
|
— |
|
Commercial paper |
|
|
7,683 |
|
|
|
— |
|
|
|
7,683 |
|
|
|
— |
|
Corporate debt securities |
|
|
5,129 |
|
|
|
— |
|
|
|
5,129 |
|
|
|
— |
|
Total |
|
$ |
27,894 |
|
|
$ |
8,747 |
|
|
$ |
19,147 |
|
|
$ |
— |
|
|
|
December 31, 2024 |
|
|||||||||||||
|
|
Total |
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
||||
Money market funds |
|
$ |
5,620 |
|
|
$ |
5,620 |
|
|
$ |
— |
|
|
$ |
— |
|
Asset-backed securities |
|
|
20,034 |
|
|
|
— |
|
|
|
20,034 |
|
|
|
— |
|
U.S. treasury securities |
|
|
14,364 |
|
|
|
12,379 |
|
|
|
1,985 |
|
|
|
— |
|
Commercial paper |
|
|
2,082 |
|
|
|
— |
|
|
|
2,082 |
|
|
|
— |
|
Corporate debt securities |
|
|
26,518 |
|
|
|
— |
|
|
|
26,518 |
|
|
|
— |
|
Total |
|
$ |
68,618 |
|
|
$ |
17,999 |
|
|
$ |
50,619 |
|
|
$ |
— |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 24, 2025 | |
| 2023 | Mar 21, 2024 | |
| 2022 | Mar 29, 2023 | |
| 2021 | Mar 30, 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.