ESS Tech, Inc. Fair Value Disclosure
December 31, 2025 | |||||||||||||||||
| Cash Equivalents and Restricted Cash | Short-Term Investments | Total Assets at Fair Value | |||||||||||||||
| Level 1: | |||||||||||||||||
| Money market funds | $ | 9,191 | $ | — | $ | 9,191 | |||||||||||
| U.S. Treasury securities | — | 793 | 793 | ||||||||||||||
| Total Level 1 | 9,191 | 793 | 9,984 | ||||||||||||||
| Level 2: | |||||||||||||||||
| Commercial paper | 2,792 | 6,764 | 9,556 | ||||||||||||||
| Total Level 2 | 2,792 | 6,764 | 9,556 | ||||||||||||||
| Total assets measured at fair value | $ | 11,983 | $ | 7,557 | $ | 19,540 | |||||||||||
December 31, 2024 | |||||||||||||||||
| Cash Equivalents and Restricted Cash | Short-Term Investments | Total Assets at Fair Value | |||||||||||||||
| Level 1: | |||||||||||||||||
| Money market funds | $ | 7,232 | $ | — | $ | 7,232 | |||||||||||
| U.S. Treasury securities | — | 7,142 | 7,142 | ||||||||||||||
| Total Level 1 | 7,232 | 7,142 | 14,374 | ||||||||||||||
| Level 2: | |||||||||||||||||
| Certificate of deposit | 80 | — | 80 | ||||||||||||||
| U.S. agency securities | 4,811 | 7,825 | 12,636 | ||||||||||||||
| Commercial paper | — | 3,296 | 3,296 | ||||||||||||||
| Total Level 2 | 4,891 | 11,121 | 16,012 | ||||||||||||||
| Total assets measured at fair value | $ | 12,123 | $ | 18,263 | $ | 30,386 | |||||||||||
December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Public common stock warrants | $ | 573 | — | — | $ | 573 | |||||||||||||||||
| Total liabilities measured at fair value | $ | 573 | $ | — | $ | — | $ | 573 | |||||||||||||||
December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Public common stock warrants | $ | 802 | — | — | $ | 802 | |||||||||||||||||
| Total liabilities measured at fair value | $ | 802 | $ | — | $ | — | $ | 802 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 2, 2023 | |
| 2021 | Mar 4, 2022 | |
| 2020 | Mar 31, 2021 | |
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.