MANNATECH INC Fair Value Disclosure
NOTE 3: FAIR VALUE
The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures.
Fair Value Measurements and Disclosure (Topic 820) of the FASB establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories:
| • | Level 1—Quoted unadjusted prices for identical instruments in active markets. |
| • | Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. |
| • | Level 3—Model derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. |
The primary objective of the Company’s investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company does have any material financial liabilities that were required to be measured at fair value on a recurring basis at December 31, 2025 and 2024.
As of December 31, 2025 and 2024, the carrying amount of the financial instruments such as cash and cash equivalents (excluding money market funds disclosed in the tables below), restricted cash, and long-term restricted cash approximate their fair value due to the short-term nature and the market rates of interest of these instruments. As such, these instruments are classified as Level 1.
The table below presents the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of December 31, 2025 and 2024:
| 2025 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Assets | ||||||||||||||||
| Money Market Funds (included in Cash and cash equivalents) | $ | 1,206 | $ | — | $ | — | $ | 1,206 | ||||||||
| 2024 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Assets | ||||||||||||||||
| Money Market Funds (included in Cash and cash equivalents) | $ | 4,005 | $ | — | $ | — | $ | 4,005 | ||||||||
The following table below present the carrying amount and estimated fair value of financial instruments as of December 31, 2025 and 2024, (in thousands) that are not measured at fair value:
| December 31, 2025 | December 31, 2024 | |||||||||||||||
| Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
| Long-term notes payable | $ | 2,750 | $ | 2,662 | $ | 2,900 | $ | 2,813 | ||||||||
The fair value was estimated using a net present value measurement, which is based on unobservable inputs, and as such, is classified as Level 3.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 15, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 17, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Mar 19, 2021 | |
| 2019 | Mar 26, 2020 | |
| 2018 | Mar 11, 2019 | |
| 2017 | Mar 26, 2018 | |
| 2016 | Mar 14, 2017 | |
| 2015 | Mar 15, 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.