Forte Biosciences, Inc. Fair Value Disclosure
4. Fair Value
The following tables provide a summary of the assets that are measured at fair value on a recurring basis as of December 31, 2025 and December 31, 2024 (in thousands):
|
|
Fair Value Measurements as of |
|
|||||||||||||
Cash and cash equivalents |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Cash |
|
$ |
3,280 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,280 |
|
Money Market Funds |
|
|
53,713 |
|
|
|
- |
|
|
|
- |
|
|
|
53,713 |
|
U.S. Treasury Bills |
|
|
- |
|
|
|
19,964 |
|
|
|
- |
|
|
|
19,964 |
|
Total |
|
$ |
56,993 |
|
|
$ |
19,964 |
|
|
$ |
— |
|
|
$ |
76,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Fair Value Measurements as of |
|
|||||||||||||
Cash, cash equivalents and short-term investments |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Cash |
|
$ |
1,464 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,464 |
|
Money Market Funds |
|
|
20,780 |
|
|
|
- |
|
|
|
- |
|
|
|
20,780 |
|
U.S. Treasury Bills |
|
|
- |
|
|
|
36,121 |
|
|
|
- |
|
|
|
36,121 |
|
Total |
|
$ |
22,244 |
|
|
$ |
36,121 |
|
|
$ |
— |
|
|
$ |
58,365 |
|
Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. Money market funds and U.S. Treasury bills were included as cash and cash equivalents in the consolidated balance sheet as of December 31, 2025. The Company's U.S Treasury Bills were included in short-term investments as of December 31, 2024, due to an original maturity greater than 90 days. The Company obtains the fair value of its Level 2 cash equivalents and short-term investments from third-party pricing services. The pricing services utilize industry standard valuation models whereby all significant inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, or other market-related data, are observable.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 18, 2024 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Mar 9, 2018 | |
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.