LINCOLN EDUCATIONAL SERVICES CORPLINC

LINCOLN EDUCATIONAL SERVICES CORP Fair Value Disclosure

10-KFiled Mar 2, 20262 min read
15. FAIR VALUE
 
The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers:
 
Level 1:  Defined as quoted market prices in active markets for identical assets or liabilities.
 
Level 2:  Defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
 
Level 3:  Defined as unobservable inputs that are not corroborated by market data.
 
The following table presents the fair value of the financial instruments measured on a recurring basis as of December 31, 2025, and 2024.
 
                          
 
December 31, 2025  
    Carrying
Amount 		    Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1) 		    Significant
Other
Observable
Inputs
(Level 2) 		    Significant
Unobservable
Inputs
(Level 3) 		    Total  
Cash equivalents:
                        
Money market fund
 $51   $51     -      -    $51 
Total cash equivalents
 $51   $51     -      -    $51 
 
                          
 
December 31, 2024  
    Carrying
Amount 		    Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1) 		    Significant
Other
Observable
Inputs
(Level 2) 		    Significant
Unobservable
Inputs
(Level 3) 		    Total  
Cash equivalents:
                        
Money market fund
 $44,425   $44,425   $ -    $ -    $44,425 
Total cash equivalents
 $44,425   $44,425   $-   $-   $44,425 
 
The Company measures the fair value of money market funds and treasury bills using Level 1 inputs. Pricing sources may include industry standard data providers, security master files from large financial institutions and other third-party sources used to determine a daily market value.
 
The carrying amount of the Company’s financial instruments, including cash equivalents, short-term investments, prepaid expenses and other current assets, accrued expenses and other short-term liabilities approximate fair value due to the short-term nature of these items.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 4, 2025
2023Mar 5, 2024
2022Mar 7, 2023
2021Mar 3, 2022
2020Mar 9, 2021
2019Mar 6, 2020
2018Mar 13, 2019
2017Mar 9, 2018
2016Mar 10, 2017
2015Mar 10, 2016

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.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew StandardsPay vs Performance