FORUM MARKETS Inc Fair Value Disclosure
NOTE 10 – FAIR VALUE MEASUREMENTS
The Company measures certain assets and liabilities at fair value on a recurring basis in accordance with ASC 820. ASC 820 establishes a three-level hierarchy that prioritizes the inputs used in measuring fair value. A description of the hierarchy levels is included in Note 3 — Summary of Significant Accounting Policies.
The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis by fair value hierarchy level (in thousands):
| December 31, 2025 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 8,018 | $ | $ | $ | 8,018 | ||||||||||
| Restricted cash equivalents | 1,016 | 1,016 | ||||||||||||||
| Marketable securities | 4,411 | 4,411 | ||||||||||||||
| Digital Assets | 61,587 | 61,587 | ||||||||||||||
| Total assets | $ | 75,032 | $ | $ | $ | 75,032 | ||||||||||
| Liabilities: | ||||||||||||||||
| Embedded derivative liabilities1 | $ | $ | 81,299 | $ | $ | 81,299 | ||||||||||
| Total liabilities | $ | $ | 81,299 | $ | $ | 81,299 | ||||||||||
| (1) | Represents the change in fair value related to the embedded derivative associated with the Staking Receivables (i.e., deposits into liquid staking protocols) on the Company’s Consolidated Balance Sheets. |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 1, 2026 | Showing above |
| 2019 | Apr 7, 2020 | |
| 2018 | Apr 1, 2019 | |
| 2017 | Mar 29, 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.