Metagenomi Therapeutics, Inc. Fair Value Disclosure
The following tables summarize financial assets that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
||||
Money market funds (included in cash and cash equivalents) |
|
$ |
40,721 |
|
|
$ |
40,721 |
|
|
$ |
— |
|
|
$ |
— |
|
U.S. government bonds |
|
|
72,177 |
|
|
|
— |
|
|
|
72,177 |
|
|
|
— |
|
Government agency obligations |
|
|
15,825 |
|
|
|
— |
|
|
|
15,825 |
|
|
|
— |
|
Corporate debt obligations |
|
|
15,211 |
|
|
|
— |
|
|
|
15,211 |
|
|
|
— |
|
Commercial paper |
|
|
15,864 |
|
|
|
— |
|
|
|
15,864 |
|
|
|
— |
|
Total fair value of assets |
|
$ |
159,798 |
|
|
$ |
40,721 |
|
|
$ |
119,077 |
|
|
$ |
— |
|
|
|
December 31, 2024 |
|
|||||||||||||
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
||||
Money market funds (included in cash and cash equivalents) |
|
$ |
26,169 |
|
|
$ |
26,169 |
|
|
$ |
— |
|
|
$ |
— |
|
U.S. government bonds |
|
|
109,657 |
|
|
|
— |
|
|
|
109,657 |
|
|
|
— |
|
Government agency obligations |
|
|
40,544 |
|
|
|
— |
|
|
|
40,544 |
|
|
|
— |
|
Corporate debt obligations |
|
|
32,353 |
|
|
|
— |
|
|
|
32,353 |
|
|
|
— |
|
Commercial paper |
|
|
30,349 |
|
|
|
— |
|
|
|
30,349 |
|
|
|
— |
|
Asset-backed securities |
|
|
5,520 |
|
|
|
— |
|
|
|
5,520 |
|
|
|
— |
|
Foreign debt securities |
|
|
2,498 |
|
|
|
— |
|
|
|
2,498 |
|
|
|
— |
|
Long-term investments (Note 5) |
|
|
1,292 |
|
|
|
— |
|
|
|
— |
|
|
|
1,292 |
|
Total fair value of assets |
|
$ |
248,382 |
|
|
$ |
26,169 |
|
|
$ |
220,921 |
|
|
$ |
1,292 |
|
In addition, restricted cash of $5.2 million as of December 31, 2025 and 2024, collateralized by the Company’s cash equivalents, are financial assets measured at fair value and are Level 1 financial instruments under the fair value hierarchy.
The Company has investments in preferred stock, common stock and warrants of Affini-T Therapeutics, Inc. (“Affini-T”) (see Note 5, “Long-Term Investments”) which are Level 3 financial assets. The equity value of the investments in Affini-T was determined under a fair-value hybrid method with the changes in fair value recorded within other income (expense), net. The hybrid method is a hybrid between the probability-weighted expected returns method (the “”) and the option-pricing model backsolve method (the “OPM”). As of December 31, 2025 and 2024, the estimated fair value of investments in Affini-T was zero and $1.3 million, respectively.
The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial assets (in thousands):
|
|
Years Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Beginning balance |
|
$ |
1,292 |
|
|
$ |
8,521 |
|
Fair value of investment received as collaboration consideration |
|
|
— |
|
|
|
1,632 |
|
Fair value of investment purchased in preferred stock purchase agreement |
|
|
— |
|
|
|
324 |
|
Change in fair value included in other income (expense) |
|
|
(1,292 |
) |
|
|
(9,185 |
) |
Ending balance |
|
$ |
— |
|
|
$ |
1,292 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
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.