Journey Medical Corp Fair Value Disclosure
NOTE 6: FAIR VALUE MEASUREMENTS
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
| December 31, 2025 | |||||||||||
($’s in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | ||||
Assets | | | | | ||||||||
Cash and cash equivalents | $ | 24,090 | $ | — | $ | — | $ | 24,090 | ||||
Total | $ | 24,090 | $ | — | $ | — | $ | 24,090 | ||||
December 31, 2024 | ||||||||||||
($’s in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | ||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 20,305 | $ | — | $ | — | $ | 20,305 | ||||
Total | $ | 20,305 | $ | — | $ | — | $ | 20,305 | ||||
The Company did not carry any level 2 or level 3 assets or liabilities at December 31, 2025 or December 31, 2024. No transfers occurred between level 1, level 2, and level 3 instruments during December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 31, 2023 | |
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.