6. FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value are performed in a manner to maximize the use of observable inputs and minimize the use of unobservable inputs.

The Company classified its money market funds within Level 1 because their fair values are based on their quoted market prices. The Company classified its debt securities within Level 2 because their fair values are determined using alternative pricing sources or models that utilized market observable inputs.

A summary of the assets that are measured at fair value as of December 31, 2025 and 2024 is as follows (in thousands):

 

 

 

Fair Value Measurement at
December 31, 2025

 

Assets:

 

Carrying
Value

 

 

Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)

 

 

Significant
other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Money market funds(1)

 

$

200,628

 

 

$

200,628

 

 

$

 

 

$

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

200,628

 

 

$

200,628

 

 

$

 

 

$

 

 

 

 

Fair Value Measurement at
December 31, 2024

 

Assets:

 

Carrying
Value

 

 

Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)

 

 

Significant
other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Money market funds(1)

 

$

5,926

 

 

$

5,926

 

 

$

 

 

$

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

5,926

 

 

$

5,926

 

 

$

 

 

$

 

 

(1)
Money market funds with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying consolidated balance sheets and are recognized at fair value.
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Historical Timeline

Fiscal YearFiled
2025Mar 19, 2026Showing above
2024Mar 19, 2025
2023Mar 8, 2024
2022Mar 9, 2023
2021Feb 17, 2022
2020Mar 29, 2021

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.