LENSAR, Inc. Fair Value Disclosure
Note 4. Fair Value of Financial Instruments
The carrying value of the Company’s cash, cash equivalents, accounts receivable, accounts payable, accrued liabilities, and other current liabilities approximate fair value based on the short-term maturities of these instruments. The carrying value of the Company’s notes receivable also approximates fair value based on the associated credit risk.
The Company classifies money market funds, U.S. treasury bills and government securities, and certificates of deposit as Level 1 within the fair value hierarchy as the fair value is based on quoted prices. The Company classifies its warrant derivative liabilities as Level 3 within the fair value hierarchy as the Company estimates the fair value of the warrant liabilities using recently quoted market prices of the Company's common stock and the Black-Scholes option pricing model, refer to Note 10, Warrant Liabilities.
The following table sets forth by level, within the fair value hierarchy, the Company's assets and liabilities at fair value as of December 31, 2025 and 2024:
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
7,850 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,850 |
|
U.S. government securities |
|
|
5,004 |
|
|
|
— |
|
|
|
— |
|
|
|
5,004 |
|
Total assets |
|
$ |
12,854 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
12,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Warrant derivative liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
40,194 |
|
|
$ |
40,194 |
|
Total liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
40,194 |
|
|
$ |
40,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
December 31, 2024 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
6,631 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,631 |
|
U.S. treasury bills |
|
|
3,451 |
|
|
|
— |
|
|
|
— |
|
|
|
3,451 |
|
Certificates of deposit |
|
|
247 |
|
|
|
— |
|
|
|
— |
|
|
|
247 |
|
U.S. government securities |
|
|
2,494 |
|
|
|
— |
|
|
|
— |
|
|
|
2,494 |
|
Total assets |
|
$ |
12,823 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
12,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Warrant derivative liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
29,856 |
|
|
$ |
29,856 |
|
Total liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
29,856 |
|
|
$ |
29,856 |
|
There were no transfers between fair value hierarchy levels during the years ended December 31, 2025 and 2024.
The fair value of the Company’s financial assets that are measured at fair value on a recurring basis as of December 31, 2025 and 2024 are as follows:
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Amortized Cost |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Fair Value |
|
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
7,850 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,850 |
|
Short-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government securities |
|
|
5,000 |
|
|
|
4 |
|
|
|
— |
|
|
|
5,004 |
|
Total |
|
$ |
12,850 |
|
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
12,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
December 31, 2024 |
|
|||||||||||||
|
|
Amortized Cost |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Fair Value |
|
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
6,631 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,631 |
|
Short-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. treasury bills |
|
|
3,449 |
|
|
|
2 |
|
|
|
— |
|
|
|
3,451 |
|
Certificates of deposit |
|
|
245 |
|
|
|
2 |
|
|
|
— |
|
|
|
247 |
|
U.S. government securities |
|
|
2,492 |
|
|
|
2 |
|
|
|
— |
|
|
|
2,494 |
|
Total |
|
$ |
12,817 |
|
|
$ |
6 |
|
|
$ |
— |
|
|
$ |
12,823 |
|
The change in fair value of warrant liabilities measured on a recurring basis using unobservable Level 3 inputs for the year ended December 31, 2025 is set forth below:
|
|
Fair Value at |
|
|
|
|
|
Fair Value at |
|
|||
|
|
December 31, |
|
|
Change in |
|
|
December 31, |
|
|||
|
|
2024 |
|
|
Fair Value |
|
|
2025 |
|
|||
Series A Warrant |
|
$ |
15,351 |
|
|
$ |
5,284 |
|
|
$ |
20,635 |
|
Series B Warrant |
|
|
14,505 |
|
|
|
5,054 |
|
|
|
19,559 |
|
Total warrant liabilities |
|
$ |
29,856 |
|
|
$ |
10,338 |
|
|
$ |
40,194 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 4, 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.