Dianthus Therapeutics, Inc. /DE/ Fair Value Disclosure
7. Fair Value of Financial Instruments
The following table provides a summary of financial assets measured at fair value on a recurring basis:
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Fair Value at |
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Description |
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December 31, |
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Level 1 |
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Level 2 |
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Level 3 |
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Recurring Assets: |
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Cash equivalents: |
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|
|
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|
|
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Money market funds |
|
$ |
50,247 |
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$ |
50,247 |
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$ |
— |
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|
$ |
— |
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Short-term investments: |
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|
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|
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|
|
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|
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U.S. treasury securities |
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|
274,152 |
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274,152 |
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|
|
— |
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|
|
— |
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Certificate of deposit |
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|
6,121 |
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|
6,121 |
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|
|
— |
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|
|
— |
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U.S. government agency securities |
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7,521 |
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|
|
— |
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7,521 |
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|
|
— |
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Corporate debt securities |
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61,100 |
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|
|
— |
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|
61,100 |
|
|
|
— |
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Commercial paper |
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4,314 |
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|
— |
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4,314 |
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|
— |
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Long-term investments: |
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U.S. treasury securities |
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71,918 |
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71,918 |
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|
|
— |
|
|
|
— |
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U.S. government agency securities |
|
|
9,542 |
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|
|
— |
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|
|
9,542 |
|
|
|
— |
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Corporate debt securities |
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|
28,675 |
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|
|
— |
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|
28,675 |
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— |
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Other assets and restricted cash: |
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Investment in former related party |
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656 |
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|
656 |
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|
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— |
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— |
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Total assets measured at fair value |
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$ |
514,246 |
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|
$ |
403,094 |
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|
$ |
111,152 |
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|
$ |
— |
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Fair Value at |
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|
December 31, |
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Description |
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2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Recurring Assets: |
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Cash equivalents: |
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|
|
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Money market funds |
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$ |
19,742 |
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$ |
19,742 |
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|
$ |
— |
|
|
$ |
— |
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Corporate debt securities |
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|
2,204 |
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|
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— |
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2,204 |
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|
— |
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Short-term investments: |
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|
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U.S. treasury securities |
|
|
186,552 |
|
|
|
186,552 |
|
|
|
— |
|
|
|
— |
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U.S. government agency securities |
|
|
3,928 |
|
|
|
— |
|
|
|
3,928 |
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|
|
— |
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Corporate debt securities |
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|
61,969 |
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|
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— |
|
|
|
61,969 |
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|
|
— |
|
Long-term investments: |
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|
|
|
|
|
|
|
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|
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U.S. treasury securities |
|
|
70,850 |
|
|
|
70,850 |
|
|
|
— |
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|
|
— |
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U.S. government agency securities |
|
|
3,015 |
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|
|
— |
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|
|
3,015 |
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|
|
— |
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Corporate debt securities |
|
|
7,863 |
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|
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— |
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|
7,863 |
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|
— |
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Other assets and restricted cash: |
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|
|
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Investment in former related party |
|
|
148 |
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|
148 |
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|
|
— |
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|
— |
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Total assets measured at fair value |
|
$ |
356,271 |
|
|
$ |
277,292 |
|
|
$ |
78,979 |
|
|
$ |
— |
|
There were no transfers between levels for the years ended December 31, 2025 or 2024. The weighted-average maturity of the securities held at December 31, 2025 was less than 12 months.
As of December 31, 2024, marketable securities within the corporate debt securities line item included both commercial paper and corporate debt securities. Commercial paper held at December 31, 2024 was classified as short-term securities and classified within Level 2 of the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 21, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 3, 2021 | |
| 2019 | Mar 3, 2020 | |
| 2018 | Mar 19, 2019 | |
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.