GT Biopharma, Inc. Fair Value Disclosure
Note 3 – Fair Value of Financial Instruments
Financial Assets
The following table represents the estimated fair values of the Company’s financial instruments:
| December 31, 2023 | ||||||||||||||||
| Unrealized | Unrealized | Fair | ||||||||||||||
| Cost | Gains | Losses | Value | |||||||||||||
| Short-term investments | $ | 12,845,000 | $ | 48,000 | $ | $ | 12,893,000 | |||||||||
| Total | $ | 12,845,000 | $ | 48,000 | $ | $ | 12,893,000 | |||||||||
The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments):
| December 31, 2024 | ||||||||||||||||
| Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
| Cash equivalents: | ||||||||||||||||
| Money market funds | $ | 3,755,000 | $ | 3,755,000 | $ | $ | ||||||||||
| US treasuries | ||||||||||||||||
| Short-term investments: | ||||||||||||||||
| US treasuries | ||||||||||||||||
| Total financial assets | $ | 3,755,000 | $ | 3,755,000 | $ | $ | ||||||||||
| December 31, 2023 | ||||||||||||||||
| Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
| Cash equivalents: | ||||||||||||||||
| Money market funds | $ | 443,000 | $ | 443,000 | $ | $ | ||||||||||
| Short-term investments: | ||||||||||||||||
| US treasuries and US gov’t. agencies | 12,893,000 | 12,893,000 | ||||||||||||||
| Total financial assets | $ | 13,336,000 | $ | 443,000 | $ | 12,893,000 | $ | |||||||||
Warrant Liability
For the details of warrant liability transactions see Note 5 – Warrant Liability.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 21, 2025 | Showing above |
| 2023 | Mar 26, 2024 | |
| 2022 | Mar 30, 2023 | |
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.