ELECTRO SENSORS INC Fair Value Disclosure
Note 3. Fair Value Measurements
The following table provides information on those assets and liabilities measured at fair value on a recurring basis.
December 31, 2025
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| Carrying amount in |
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| Fair Value Measurement Using | |||||||||
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| balance sheet |
| Fair Value |
| Level 1 |
| Level 2 |
| Level 3 | |||||
Assets: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities |
|
| 56 |
|
| 56 |
|
| 0 |
|
| 0 |
|
| 56 |
December 31, 2024
|
| Carrying amount in |
|
|
| Fair Value Measurement Using | |||||||||
|
| balance sheet |
| Fair Value |
| Level 1 |
| Level 2 |
| Level 3 | |||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities |
|
| 56 |
|
| 56 |
|
| 0 |
|
| 0 |
|
| 56 |
The equity securities owned by the Company have an undeterminable market and the Company has determined the value based on financial and other factors, which are considered Level 3 inputs in the fair value hierarchy.
There was no change in Level 3 assets measured at fair value on a recurring basis during the years ended December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 19, 2025 | |
| 2023 | Mar 20, 2024 | |
| 2022 | Mar 17, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 25, 2021 | |
| 2019 | Mar 25, 2020 | |
| 2018 | Mar 20, 2019 | |
| 2017 | Mar 20, 2018 | |
| 2016 | Mar 29, 2017 | |
| 2015 | Mar 14, 2016 | |
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.