CG Oncology, Inc. Fair Value Disclosure
The following tables present the financial instruments carried at fair value on a recurring basis as of December 31, 2025 and 2024 in accordance with the ASC 820, Fair Value Measurement (ASC 820) hierarchy (in thousands):
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Fair Value Measurements at 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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Assets |
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Cash equivalents |
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$ |
16,639 |
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$ |
10,056 |
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$ |
— |
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$ |
26,695 |
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Marketable securities |
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$ |
— |
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$ |
709,665 |
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$ |
— |
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$ |
709,665 |
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Fair Value Measurements at 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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Assets |
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Cash equivalents |
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$ |
256,204 |
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$ |
— |
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$ |
— |
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$ |
256,204 |
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Marketable securities |
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$ |
— |
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$ |
484,930 |
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$ |
— |
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$ |
484,930 |
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The Company’s cash equivalents represent deposits in a short-term U.S. Treasury money market fund quoted in an active market, which were classified as a Level 1 fair value measurement, and fixed income securities (U.S. treasury bills) with original maturities of 90 days or less. Marketable securities consist primarily of fixed income securities (U.S. treasury bills and notes) and corporate bonds with original maturities greater than 90 days. All fixed income securities and corporate bonds were classified as a Level 2 fair value measurement.
There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 28, 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.