Fair Value Measurements
The following table summarizes our cash equivalents and marketable securities measured at fair value on a recurring basis as of December 31, 2025 and 2024, respectively:
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| December 31, 2025 |
| Level 1 | | Level 2 | | Level 3 | | Total |
| Assets: | | | | | | | |
| Cash equivalents | | | | | | | |
| Money market | $ | 105,330,208 | | | $ | — | | | $ | — | | | $ | 105,330,208 | |
| U.S. Treasuries | 1,992,340 | | | — | | | — | | | 1,992,340 | |
| Government securities | — | | | 9,222,990 | | | — | | | 9,222,990 | |
| Commercial paper | — | | | 11,827,667 | | | — | | | 11,827,667 | |
| Total cash equivalents | 107,322,548 | | | 21,050,657 | | | — | | | 128,373,205 | |
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| Marketable securities: | | | | | | | |
| U.S. Treasuries | $ | 44,276,965 | | | $ | — | | | $ | — | | | $ | 44,276,965 | |
| Government securities | — | | | 11,945,540 | | | — | | | 11,945,540 | |
| Debt securities | — | | | 10,038,420 | | | — | | | 10,038,420 | |
| Commercial paper | — | | | 22,108,505 | | | — | | | 22,108,505 | |
| Total marketable securities | 44,276,965 | | | 44,092,465 | | | — | | | 88,369,430 | |
| Total cash equivalents and marketable securities | $ | 151,599,513 | | | $ | 65,143,122 | | | $ | — | | | $ | 216,742,635 | |
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| December 31, 2024 |
| Level 1 | | Level 2 | | Level 3 | | Total |
| Assets: | | | | | | | |
| Cash equivalents | | | | | | | |
| | | | | | | |
| Money market | $ | 35,865,754 | | | $ | — | | | $ | — | | | $ | 35,865,754 | |
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| Total cash equivalents | $ | 35,865,754 | | | $ | — | | | $ | — | | | $ | 35,865,754 | |
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There were no transfers between Level 1 and Level 2 and the Company had no financial assets or liabilities that were classified as Level 3 at any point during the years ended December 31, 2025 and 2024.
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.