Connect Biopharma Holdings Ltd Fair Value Disclosure
| Fair Value Measurements at Reporting Date Using | ||||||||||||||
| Balance at December 31, 2025 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
| Money market funds | $ | 8,531 | $ | 8,531 | $ | — | $ | — | ||||||
| U.S. treasury bills | 3,997 | 3,997 | — | — | ||||||||||
| U.S. government agency obligations | 3,001 | — | 3,001 | — | ||||||||||
| U.S. corporate debt securities | 1,001 | — | 1,001 | — | ||||||||||
| U.S. commercial paper | 10,973 | — | 10,973 | — | ||||||||||
| Foreign commercial paper | 8,458 | — | 8,458 | — | ||||||||||
| Total | $ | 35,961 | $ | 12,528 | $ | 23,433 | $ | — | ||||||
| Fair Value Measurements at Reporting Date Using | ||||||||||||||
| Balance at December 31, 2024 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
| Money market funds | $ | 43,090 | $ | 43,090 | $ | — | $ | — | ||||||
| U.S. treasury bills | 5,936 | 5,936 | — | — | ||||||||||
| U.S. government agency obligations | 8,325 | — | 8,325 | — | ||||||||||
| U.S. corporate debt securities | 1,387 | — | 1,387 | — | ||||||||||
| U.S. commercial paper | 1,831 | — | 1,831 | — | ||||||||||
| Foreign commercial paper | 980 | — | 980 | — | ||||||||||
| Total | $ | 61,549 | $ | 49,026 | $ | 12,523 | $ | — | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 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.