Life360, Inc. Fair Value Disclosure
| As of December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Money market funds | $ | 332,808 | $ | — | $ | — | $ | 332,808 | |||||||||||||||
Convertible Note Investment | — | — | 24,726 | 24,726 | |||||||||||||||||||
| Total assets | $ | 332,808 | $ | — | $ | 24,726 | $ | 357,534 | |||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Money market funds | $ | 133,959 | $ | — | $ | — | $ | 133,959 | |||||||||||||||
| Total assets | $ | 133,959 | $ | — | $ | — | $ | 133,959 | |||||||||||||||
| As of December 31, 2025 | |||||
Convertible Note Investment | |||||
Fair value, beginning of the year | $ | — | |||
Initial investment | 25,000 | ||||
| Changes in fair value | (274) | ||||
Fair value, end of period | $ | 24,726 | |||
| As of December 31, 2024 | |||||||||||
| Derivative Liability | September 2021 Convertible Notes | ||||||||||
| Fair value, beginning of the year | 217 | 3,449 | |||||||||
| Changes in fair value | 1,707 | 608 | |||||||||
Settlement of September 2021 Convertible Notes upon conversion (Note 8) | — | (3,548) | |||||||||
Gain on settlement of September 2021 Convertible Notes (Note 8) | — | (509) | |||||||||
Gain on settlement of derivative liability (Note 9) | (1,924) | — | |||||||||
| Fair value, end of period | $ | — | $ | — | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 23, 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.