Olema Pharmaceuticals, Inc. Fair Value Disclosure
The Company assesses the fair value of financial instruments based on the provisions of ASC 820, Fair Value Measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
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December 31, 2025 |
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||||||||||||||||
(in thousands) |
|
Level 1 |
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Level 2 |
|
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Level 3 |
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Total |
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||||||||
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash |
|
$ |
|
16,007 |
|
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
16,007 |
|
Money market funds |
|
|
|
30,866 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
30,866 |
|
Commercial paper |
|
|
|
— |
|
|
|
|
102,193 |
|
|
|
|
— |
|
|
|
|
102,193 |
|
Corporate bonds |
|
|
|
— |
|
|
|
|
81,607 |
|
|
|
|
— |
|
|
|
|
81,607 |
|
U.S. government treasury bills |
|
|
|
233,938 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
233,938 |
|
Government-sponsored enterprise securities |
|
|
|
— |
|
|
|
|
41,029 |
|
|
|
|
— |
|
|
|
|
41,029 |
|
Total |
|
$ |
|
280,811 |
|
|
$ |
|
224,829 |
|
|
$ |
|
— |
|
|
$ |
|
505,640 |
|
|
|
December 31, 2025 |
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|||||||||||||||||
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|
|
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Gross |
|
|
Gross |
|
|
|
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|
||||||
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Estimated |
|
||||||||
(in thousands) |
|
Cost |
|
|
Gains |
|
|
Losses |
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|
Fair Value |
|
||||||||
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
|
48,503 |
|
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
48,503 |
|
Short-term marketable securities (<12 months to maturity) |
|
|
|
300,243 |
|
|
|
|
501 |
|
|
|
|
(12 |
) |
|
|
|
300,732 |
|
Long-term marketable securities (>12 months to maturity) |
|
|
|
156,273 |
|
|
|
|
160 |
|
|
|
|
(28 |
) |
|
|
|
156,405 |
|
Total |
|
$ |
|
505,019 |
|
|
$ |
|
661 |
|
|
$ |
|
(40 |
) |
|
$ |
|
505,640 |
|
|
|
|
December 31, 2024 |
|
||||||||||||||||
(in thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||||||
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash |
|
$ |
|
6,489 |
|
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
6,489 |
|
Money market funds |
|
|
|
118,955 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
118,955 |
|
Commercial paper |
|
|
|
— |
|
|
|
|
109,432 |
|
|
|
|
— |
|
|
|
|
109,432 |
|
Corporate bonds |
|
|
|
— |
|
|
|
|
43,409 |
|
|
|
|
|
|
|
|
43,409 |
|
|
U.S. government treasury bills |
|
|
|
144,741 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
144,741 |
|
Government-sponsored enterprise securities |
|
|
|
— |
|
|
|
|
11,714 |
|
|
|
|
— |
|
|
|
|
11,714 |
|
Total |
|
$ |
|
270,185 |
|
|
$ |
|
164,555 |
|
|
$ |
|
— |
|
|
$ |
|
434,740 |
|
|
|
December 31, 2024 |
|
|||||||||||||||||
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
||||||
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Estimated |
|
||||||||
(in thousands) |
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
||||||||
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
|
142,706 |
|
|
$ |
|
4 |
|
|
$ |
|
— |
|
|
$ |
|
142,710 |
|
Short-term marketable securities (<12 months to maturity) |
|
|
|
219,062 |
|
|
|
|
185 |
|
|
|
|
(57 |
) |
|
|
|
219,190 |
|
Long-term marketable securities (>12 months to maturity) |
|
|
|
72,829 |
|
|
|
|
53 |
|
|
|
|
(42 |
) |
|
|
|
72,840 |
|
Total |
|
$ |
|
434,597 |
|
|
$ |
|
242 |
|
|
$ |
|
(99 |
) |
|
$ |
|
434,740 |
|
The Company considers its marketable securities with maturities beyond one year as current assets, based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. The Company considers its investment portfolio of marketable securities to be available-for-sale.
The Company periodically reviews its available-for-sale marketable securities for other-than-temporary impairment. The Company considers factors such as the duration, severity and the reason for the decline in value, the potential recovery period and its intent to sell. For debt securities, the Company also considers whether (i) it is more likely than not that the Company will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses.
There were no marketable securities that have been in a consecutive loss position for more than 12 months as of December 31, 2025. During the year ended December 31, 2025, the Company did not recognize any other-than-temporary impairment loss. As of December 31, 2025, there was no allowance for losses on available-for-sale debt securities attributable to credit risk.
As of December 31, 2025, all of the Company’s cash and cash equivalents primarily consisted of cash on deposit with U.S. banks denominated in U. S. dollars and Australian dollars, and investments in interest-bearing money market funds.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 18, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Feb 28, 2022 | |
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.