Kiniksa Pharmaceuticals International, plc Fair Value Disclosure
3. Fair Value of Financial Assets and Liabilities
The following tables present information about the Company’s financial instruments measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values:
Fair Value Measurements | ||||||||||||
as of December 31, 2025 Using: | ||||||||||||
| Level 1 | | Level 2 | | Level 3 | | Total | |||||
Assets: |
| |
| |
| |
| | ||||
Cash equivalents — money market funds | $ | 77,291 | $ | — | $ | — | $ | 77,291 | ||||
Short-term investments — U.S. Treasury Securities | — | 248,478 | — | 248,478 | ||||||||
Total | $ | 77,291 | $ | 248,478 | $ | — | $ | 325,769 | ||||
Fair Value Measurements | ||||||||||||
as of December 31, 2024 Using: | ||||||||||||
| Level 1 | | Level 2 | | Level 3 | | Total | |||||
Assets: |
| |
| |
| |
| | ||||
Cash equivalents — money market funds | $ | 135,275 | $ | — | $ | — | $ | 135,275 | ||||
Short-term investments — U.S. Treasury Securities | — | 60,046 | — | 60,046 | ||||||||
Total | $ | 135,275 | $ | 60,046 | $ | — | $ | 195,321 | ||||
During the years ended December 31, 2025 and 2024 there were no transfers between Level 1, Level 2 and Level 3. The money market funds were valued using quoted prices in active markets, which represent a Level 1 measurement in the fair value hierarchy. The Company’s cash equivalents and short-term investments as of December 31, 2025 and 2024 included United States Treasury securities, which are not traded on a daily basis and, therefore, represent a Level 2 measurement in the fair value hierarchy at each period end.
The contractual maturities of short-term investments were as follows:
December 31, | December 31, | |||||||||||
2025 | 2024 | |||||||||||
Maturities within one year | $ | 179,577 | $ | 60,046 | ||||||||
Maturities after one year through five years | 68,901 | — | ||||||||||
Total | $ | 248,478 | $ | 60,046 | ||||||||
The following tables summarize short-term investments:
Gross | Gross | ||||||||||||||
Amortized | Unrealized | Unrealized | Credit | Fair | |||||||||||
Cost | Gains | Losses | Losses | Value | |||||||||||
December 31, 2025 | |||||||||||||||
Short-term investments — U.S. Treasury Securities | $ | 248,354 | $ | 125 | $ | (1) | $ | — | $ | 248,478 | |||||
Total | $ | 248,354 | $ | 125 | $ | (1) | $ | — | $ | 248,478 | |||||
Gross | Gross | ||||||||||||||
Amortized | Unrealized | Unrealized | Credit | Fair | |||||||||||
Cost | Gains | Losses | Losses | Value | |||||||||||
December 31, 2024 | |||||||||||||||
Short-term investments — U.S. Treasury Securities | $ | 60,022 | $ | 24 | $ | — | $ | — | $ | 60,046 | |||||
Total | $ | 60,022 | $ | 24 | $ | — | $ | — | $ | 60,046 | |||||
As of December 31, 2025 and 2024 the Company considers the unrealized losses in their investment portfolio to be temporary in nature and not due to credit losses. The Company has the ability to hold such investments until recovery of the fair value. The Company utilizes the specific identification method in computing realized gains and losses. The Company had no realized gains and losses on their available-for-sale securities for the years ended December 31, 2025 or 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 2, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Mar 5, 2020 | |
| 2018 | Mar 12, 2019 | |
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.