Dyne Therapeutics, Inc. Fair Value Disclosure
4. Fair Value Measurements
The following tables set forth marketable securities for the periods presented:
|
As of December 31, 2025 |
|
||||||||||||||
(in thousands) |
|
Amortized Cost |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Total |
|
||||
Commercial paper |
|
|
7,736 |
|
|
|
8 |
|
|
|
— |
|
|
|
7,744 |
|
Corporate debt securities |
|
|
175,401 |
|
|
|
343 |
|
|
|
(6 |
) |
|
|
175,738 |
|
Certificates of deposit |
|
|
10,181 |
|
|
|
9 |
|
|
|
— |
|
|
|
10,190 |
|
U.S. Treasury notes |
|
|
23,400 |
|
|
|
121 |
|
|
|
— |
|
|
|
23,521 |
|
Total |
|
$ |
216,718 |
|
|
$ |
481 |
|
|
$ |
(6 |
) |
|
$ |
217,193 |
|
|
As of December 31, 2024 |
|
||||||||||||||
(in thousands) |
|
Amortized Cost |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Total |
|
||||
Commercial paper |
|
|
14,203 |
|
|
|
8 |
|
|
|
— |
|
|
|
14,211 |
|
Corporate debt securities |
|
|
162,078 |
|
|
|
131 |
|
|
|
(114 |
) |
|
|
162,095 |
|
Certificates of deposit |
|
|
9,369 |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
9,372 |
|
U.S. Treasury notes |
|
|
21,163 |
|
|
|
7 |
|
|
|
(29 |
) |
|
|
21,141 |
|
Total |
|
$ |
206,813 |
|
|
$ |
150 |
|
|
$ |
(144 |
) |
|
$ |
206,819 |
|
The following tables set forth by level, within the fair value hierarchy (see Note 2), the assets carried at fair value on a recurring basis for the periods presented:
|
|
Fair Value Measurements as of December 31, 2025 |
|
|||||||||||||
(in thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
278,133 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
278,133 |
|
Marketable securities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial paper |
|
|
— |
|
|
|
7,744 |
|
|
|
— |
|
|
|
7,744 |
|
Corporate debt securities |
|
|
— |
|
|
|
175,738 |
|
|
|
— |
|
|
|
175,738 |
|
Certificates of deposit |
|
|
— |
|
|
|
10,190 |
|
|
|
— |
|
|
|
10,190 |
|
U.S. Treasury notes |
|
|
23,521 |
|
|
|
— |
|
|
|
— |
|
|
|
23,521 |
|
Total |
|
$ |
301,654 |
|
|
$ |
193,672 |
|
|
$ |
— |
|
|
$ |
495,326 |
|
|
|
Fair Value Measurements as of December 31, 2024 |
|
|||||||||||||
(in thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
3,535 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,535 |
|
Marketable securities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial paper |
|
|
— |
|
|
|
14,211 |
|
|
|
— |
|
|
|
14,211 |
|
Corporate debt securities |
|
|
— |
|
|
|
162,095 |
|
|
|
— |
|
|
|
162,095 |
|
Certificates of deposit |
|
|
— |
|
|
|
9,372 |
|
|
|
— |
|
|
|
9,372 |
|
U.S. Treasury notes |
|
|
21,141 |
|
|
|
— |
|
|
|
— |
|
|
|
21,141 |
|
Total |
|
$ |
24,676 |
|
|
$ |
185,678 |
|
|
$ |
— |
|
|
$ |
210,354 |
|
The fair value of U.S. government Treasury notes and money market funds were determined by the Company based on quoted market prices, which represent a Level 1 measurement within the fair value hierarchy. Commercial paper, certificates of deposit and corporate debt securities were valued by the Company using quoted prices in active markets for similar securities, which represent a Level 2 measurement within the fair value hierarchy.
There were no transfers between Level 1, Level 2, or Level 3 during the periods presented.
The following table summarizes the scheduled maturity for the Company's marketable securities for the periods presented:
(in thousands) |
|
December 31, |
|
|
|
|
2025 |
|
|
Maturing in one year or less |
|
$ |
156,029 |
|
Maturing after one year through two years |
|
|
61,164 |
|
Maturing after two years |
|
|
— |
|
Total |
|
$ |
217,193 |
|
Financial instruments not recorded at fair value
The carrying values of cash, cash equivalents, accounts payable and accrued expenses that are reported on the balance sheets approximate their fair value due to the short-term nature of these assets and liabilities. The carrying amount of the Company's Term Loans under the Hercules Agreement, as defined in Note 7, approximate market rates currently available to the Company.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 2, 2023 | |
| 2021 | Mar 10, 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.