COMPASS Pathways plc Fair Value Disclosure
Fair Value Measurements | |||||||||||||||||||||||
| as of December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash equivalents | 43,053 | — | — | 43,053 | |||||||||||||||||||
| $ | 43,053 | $ | — | $ | — | $ | 43,053 | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||
| as of December 31, 2024 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
| Cash equivalents | 41,355 | — | — | 41,355 | |||||||||||||||||||
| $ | 41,355 | $ | — | $ | — | $ | 41,355 | ||||||||||||||||
| January 13, 2025 | December 31, 2025 | |||||||||||||||||||
| Level | Amount | Level | Amount | |||||||||||||||||
Warrant Liabilities: | ||||||||||||||||||||
Pre-funded Warrants | 2 | $ | 37,220 | 2 | $ | 60,029 | ||||||||||||||
2025 ADS Warrants | 3 | 55,726 | 3 | 143,697 | ||||||||||||||||
Total Warrant Liabilities | $ | 92,946 | $ | 203,726 | ||||||||||||||||
| January 13, 2025 | December 31, 2025 | ||||||||||
| Exercise price | $5.7960 | $5.7960 | |||||||||
| Market price | $3.37 | $6.90 | |||||||||
| Volatility | 146.1% to 158.7% | 143.4% to 144.8% | |||||||||
| Risk-free rate | 4.6% | 3.6% | |||||||||
| Dividend yield | —% | —% | |||||||||
| Term (in years) | 4.0 to 4.4 years | 3.1 to 3.2 years | |||||||||
Pre-Funded Warrants | ADS Warrants | ||||||||||
Fair value as of December 31, 2024 | $ | — | $ | — | |||||||
Initial fair value as of January 13, 2025 | 37,220 | 55,726 | |||||||||
Exercise of warrant liabilities | (10,153) | — | |||||||||
Fair value change of warrant liabilities | 32,962 | 87,971 | |||||||||
Fair value as of December 31, 2025 | $ | 60,029 | $ | 143,697 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 24, 2026 | Showing above |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 24, 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.