Inhibikase Therapeutics, Inc. Fair Value Disclosure
4. Fair Value of Financial Instruments
The following table summarizes cash equivalents and marketable securities measured at their fair value on a recurring basis as of:
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Fair Value Measurements as of December 31, 2025: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Cash equivalents: |
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Money market funds |
|
$ |
14,824,866 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
14,824,866 |
|
Total |
|
$ |
14,824,866 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
14,824,866 |
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|
|
|
|
|
|
|
|
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|
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Marketable securities, available-for-sale: |
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U.S. Treasury obligations |
|
$ |
39,543,820 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
39,543,820 |
|
Total |
|
$ |
39,543,820 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
39,543,820 |
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|
|
|
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Other current liabilities: |
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Contingent consideration (see Note 7) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,061,501 |
|
|
$ |
3,061,501 |
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Total |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,061,501 |
|
|
$ |
3,061,501 |
|
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Fair Value Measurements as of December 31, 2024: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Cash equivalents: |
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|
|
|
|
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Money market funds |
|
$ |
11,238,598 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,238,598 |
|
Total |
|
$ |
11,238,598 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,238,598 |
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|
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Marketable securities, available-for-sale: |
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|
|
|
|
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|
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U.S. Treasury obligations |
|
$ |
41,052,949 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
41,052,949 |
|
Total |
|
$ |
41,052,949 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
41,052,949 |
|
The following table provides a rollforward of the contingent consideration related to the acquisition of CorHepta (see Note 7):
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Year ended December 31, |
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2025 |
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2024 |
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Balance, beginning |
|
$ |
— |
|
|
$ |
— |
|
Additions |
|
|
4,435,443 |
|
|
|
— |
|
Payments |
|
|
— |
|
|
|
— |
|
Change in fair value |
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|
(1,373,942 |
) |
|
|
— |
|
Balance, ending |
|
$ |
3,061,501 |
|
|
$ |
— |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 27, 2024 | |
| 2022 | Mar 31, 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.