Erasca, Inc. Fair Value Disclosure
Note 3. Fair value measurements
The following tables summarize the Company’s financial assets measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands):
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Fair value measurements as of December 31, 2025 using |
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Quoted prices in |
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Significant |
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Significant |
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active markets |
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other |
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unobservable |
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December 31, |
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for identical |
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observable |
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inputs |
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2025 |
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assets (level 1) |
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inputs (level 2) |
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(level 3) |
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Assets: |
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Money market funds(1) |
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$ |
62,229 |
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$ |
62,229 |
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$ |
— |
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$ |
— |
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Commercial paper(1) |
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4,986 |
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— |
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4,986 |
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— |
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US treasury securities(2) |
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99,914 |
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99,914 |
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— |
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— |
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US government agency securities(2) |
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74,563 |
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— |
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74,563 |
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— |
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Commercial paper(2) |
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27,793 |
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— |
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27,793 |
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— |
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US treasury securities(3) |
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47,780 |
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47,780 |
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— |
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— |
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US government agency securities(3) |
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17,941 |
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— |
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17,941 |
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— |
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Total fair value of assets |
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$ |
335,206 |
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$ |
209,923 |
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$ |
125,283 |
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$ |
— |
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Fair value measurements as of December 31, 2024 using |
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Quoted prices in |
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Significant |
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Significant |
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active markets |
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other |
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unobservable |
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December 31, |
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for identical |
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observable |
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inputs |
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2024 |
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assets (level 1) |
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inputs (level 2) |
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(level 3) |
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Assets: |
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Money market funds(1) |
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$ |
63,101 |
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$ |
63,101 |
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$ |
— |
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$ |
— |
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US treasury securities(2) |
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42,849 |
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42,849 |
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— |
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— |
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US government agency securities(2) |
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22,420 |
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— |
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22,420 |
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— |
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Corporate debt securities(2) |
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30,701 |
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— |
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30,701 |
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— |
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Commercial paper(2) |
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129,561 |
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— |
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129,561 |
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— |
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Yankee debt securities(2) |
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5,039 |
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— |
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5,039 |
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— |
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US treasury securities(3) |
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71,784 |
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71,784 |
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— |
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— |
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US government agency securities(3) |
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70,380 |
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— |
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70,380 |
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— |
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Total fair value of assets |
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$ |
435,835 |
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$ |
177,734 |
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$ |
258,101 |
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$ |
— |
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The carrying amounts of the Company’s financial instruments, including cash, prepaid expenses and other current assets, accounts payable, and accrued expenses and other current liabilities, approximate fair value due to their short maturities. As of December 31, 2025 and 2024, the Company's equity investment in Affini-T Therapeutics, Inc. (Affini-T) was fair valued at $0, which represents cost, less impairment. No adjustment was made to the value of the Company’s equity investment in Affini-T during the year ended December 31, 2025. Impairment adjustments of $2.2 million were recorded to date and during the year ended December 31, 2024 to other expense, net in the consolidated statements of operations and comprehensive loss related to the value of the Company's equity investment in Affini-T. As of December 31, 2024, the Company had reassessed the fair value of its equity investment in Affini-T using a market approach which represented a Level 3 nonrecurring fair value measurement. Calculating the fair value of the equity investment involved unobservable inputs, including the terms and preferences of Affini-T's financings, cash flow projections, and significant estimates and assumptions. Changes in the estimates and assumptions used could materially affect the amount of impairment losses recognized in the periods the equity investment is considered impaired. No transfers between levels have occurred during the periods presented.
Cash equivalents consist of money market funds and commercial paper, short-term marketable securities consist of US treasury securities, US government agency securities, corporate debt securities, commercial paper, and Yankee debt securities, and long-term marketable securities consist of US treasury securities and US government agency securities. The Company obtains pricing information from its investment manager and generally determines the fair value of marketable securities using standard observable inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, and bid and/or offers.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 20, 2025 | |
| 2023 | Mar 27, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 24, 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.