HERON THERAPEUTICS, INC. /DE/ Fair Value Disclosure
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The FASB ASC Topic 820, Fair Value Measurements & Disclosures, establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:
We measure cash, cash equivalents and short-term investments at fair value on a recurring basis. The fair values of such assets were as follows (in thousands):
|
|
Fair Value Measurements at Reporting Date Using |
|
|||||||||||||
|
|
Balance at |
|
|
Quoted |
|
|
Significant |
|
|
Significant |
|
||||
Cash and money market funds |
|
$ |
22,313 |
|
|
$ |
22,313 |
|
|
$ |
— |
|
|
$ |
— |
|
U.S. treasury bills and government agency obligations |
|
|
9,534 |
|
|
|
9,534 |
|
|
|
— |
|
|
|
— |
|
U.S. corporate debt securities |
|
|
7,035 |
|
|
|
— |
|
|
|
7,035 |
|
|
|
— |
|
Foreign corporate debt securities |
|
|
2,225 |
|
|
|
— |
|
|
|
2,225 |
|
|
|
— |
|
Foreign commercial paper |
|
|
3,979 |
|
|
|
— |
|
|
|
3,979 |
|
|
|
— |
|
U.S. commercial paper |
|
|
1,545 |
|
|
|
— |
|
|
|
1,545 |
|
|
|
— |
|
Total |
|
$ |
46,631 |
|
|
$ |
31,847 |
|
|
$ |
14,784 |
|
|
$ |
— |
|
|
|
Fair Value Measurements at Reporting Date Using |
|
|||||||||||||
|
|
Balance at |
|
|
Quoted |
|
|
Significant |
|
|
Significant |
|
||||
Cash and money market funds |
|
$ |
23,860 |
|
|
$ |
23,860 |
|
|
$ |
— |
|
|
$ |
— |
|
U.S. treasury bills and government agency obligations |
|
|
14,868 |
|
|
|
14,868 |
|
|
|
— |
|
|
|
— |
|
U.S. corporate debt securities |
|
|
13,644 |
|
|
|
— |
|
|
|
13,644 |
|
|
|
— |
|
Foreign corporate debt securities |
|
|
5,913 |
|
|
|
— |
|
|
|
5,913 |
|
|
|
— |
|
Foreign commercial paper |
|
|
998 |
|
|
|
— |
|
|
|
998 |
|
|
|
— |
|
Total |
|
$ |
59,283 |
|
|
$ |
38,728 |
|
|
$ |
20,555 |
|
|
$ |
— |
|
We have not transferred any investment securities between the three levels of the fair value hierarchy.
As of December 31, 2025, cash equivalents included $11.6 million of available-for-sale securities with contractual maturities of three months or less and short-term investments included $5.4 million of available-for-sale securities with contractual maturities of three months to one year. As of December 31, 2024, cash equivalents included $1.9 million of available-for-sale securities with contractual maturities of three months or less and short-term investments included $9.0 million of available-for-sale securities with contractual maturities of three months to one year. The money market funds as of December 31, 2025 and 2024 are included in cash and cash equivalents on the consolidated balance sheets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 12, 2024 | |
| 2022 | Mar 29, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2015 | Feb 19, 2016 | |
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.