IGC Pharma, Inc. Fair Value Disclosure
NOTE 15 – FAIR VALUE OF FINANCIAL INSTRUMENTS
As of March 31, 2025, the Company’s marketable securities consist of liquid funds, which have been classified as Level 1 of the fair value hierarchy because they have been valued using quoted prices in active markets. The Company’s cash and cash equivalents have also been classified as Level 1 on the same principle. Financial instruments are classified as current if they are expected to be liquidated within the next twelve months. The Company’s remaining investments have been classified as Level 3 instruments as there is little or no market data. Level 3 investments are valued using the cost method. For further information refer Note 7, “Investments in Non-Marketable Securities.”
The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of March 31, 2025, and 2024, and indicates the fair value hierarchy of the valuation techniques the Company used to determine such fair value:
(in thousands)
As of March 31, 2025
| Particular | Adjusted Cost ($) | Gain ($) | Loss ($) | Fair Value ($) | Cash & Cash Equivalents ($) | Short Term Investments ($) | ||||||||||||||||||
| Level 1 | ||||||||||||||||||||||||
| Cash | 368 | - | - | 368 | 368 | - | ||||||||||||||||||
| Money Market Fund | - | - | - | - | - | - | ||||||||||||||||||
| Debt Funds | - | - | - | - | - | - | ||||||||||||||||||
| Mutual Fund | - | - | - | - | - | - | ||||||||||||||||||
| Level 2 | ||||||||||||||||||||||||
| Certificates of Deposit | 37 | - | - | 37 | 37 | - | ||||||||||||||||||
| Level 3 | - | - | - | - | - | - | ||||||||||||||||||
| TOTAL | 405 | - | - | 405 | 405 | - | ||||||||||||||||||
As of March 31, 2024
| Particular | Adjusted Cost ($) | Gain ($) | Loss ($) | Fair Value ($) | Cash & Cash Equivalents ($) | Short Term Investments ($) | ||||||||||||||||||
| Level 1 | ||||||||||||||||||||||||
| Cash | 912 | - | - | 912 | 912 | - | ||||||||||||||||||
| Money Market Fund | - | - | - | - | - | - | ||||||||||||||||||
| Debt Funds | 13 | - | - | 13 | 13 | - | ||||||||||||||||||
| Mutual Fund | 123 | - | - | 123 | 123 | - | ||||||||||||||||||
| Level 2 | ||||||||||||||||||||||||
| Certificates of Deposit | 150 | - | - | 150 | 150 | - | ||||||||||||||||||
| Level 3 | - | - | - | - | - | - | ||||||||||||||||||
| TOTAL | 1,198 | - | - | 1,198 | 1,198 | - | ||||||||||||||||||
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.