Microvast Holdings, Inc. Fair Value Disclosure
Fair Value Measurement as of December 31, 2025 | ||||||||||||||||||||||||||
| Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 104,963 | — | — | $ | 104,963 | ||||||||||||||||||||
| Restricted cash | 64,275 | — | — | 64,275 | ||||||||||||||||||||||
| Total financial assets | $ | 169,238 | — | — | $ | 169,238 | ||||||||||||||||||||
| Warrant liability | $ | — | — | 15 | $ | 15 | ||||||||||||||||||||
| Convertible loan measured at fair value | — | — | 140,929 | 140,929 | ||||||||||||||||||||||
| Total financial liabilities | $ | — | — | 140,944 | $ | 140,944 | ||||||||||||||||||||
Fair Value Measurement as of December 31, 2024 | ||||||||||||||||||||||||||
| Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 73,007 | — | — | $ | 73,007 | ||||||||||||||||||||
| Restricted cash | 36,594 | — | — | 36,594 | ||||||||||||||||||||||
| Total financial assets | $ | 109,601 | — | — | $ | 109,601 | ||||||||||||||||||||
| Warrant liability | $ | — | — | 290 | $ | 290 | ||||||||||||||||||||
| Convertible loan measured at fair value | — | — | 104,613 | 104,613 | ||||||||||||||||||||||
| Total financial liabilities | $ | — | — | 104,903 | $ | 104,903 | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Balance at the beginning of the year | $ | 290 | $ | 67 | $ | 126 | |||||||||||
| (275) | 223 | (59) | |||||||||||||||
| Balance at end of the year | $ | 15 | $ | 290 | $ | 67 | |||||||||||
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Balance at the beginning of the period | $ | 104,613 | $ | — | |||||||
Issuance of convertible loan | — | 25,944 | |||||||||
| Interest paid during the period | (3,080) | (1,068) | |||||||||
| Changes in fair value | 39,396 | 79,737 | |||||||||
| Balance at end of the period | $ | 140,929 | $ | 104,613 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 29, 2022 | |
| 2020 | Mar 25, 2021 | |
| 2019 | Mar 13, 2020 | |
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.