PepGen Inc. Fair Value Disclosure
3. Fair Value Measurements
The following tables present information about the Company’s financial assets that have been measured at fair value as of December 31, 2025 and December 31, 2024, and indicate the fair value of the hierarchy of the valuation inputs utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. All instruments held by the Company are Level 1. The following tables set forth marketable securities as of December 31, 2025 and December 31, 2024 (in thousands):
|
|
As of December 31, 2025 |
|
|||||||||||||
|
|
Amortized Cost |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Total |
|
||||
U.S. Treasury Notes |
|
|
87,903 |
|
|
|
39 |
|
|
|
— |
|
|
|
87,942 |
|
Total |
|
$ |
87,903 |
|
|
$ |
39 |
|
|
$ |
— |
|
|
$ |
87,942 |
|
|
|
As of December 31, 2024 |
|
|||||||||||||
|
|
Amortized Cost |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Total |
|
||||
U.S. Treasury Notes |
|
|
70,731 |
|
|
|
61 |
|
|
|
(22 |
) |
|
|
70,770 |
|
Total |
|
$ |
70,731 |
|
|
$ |
61 |
|
|
$ |
(22 |
) |
|
$ |
70,770 |
|
The following tables set forth the fair value of the Company’s financial assets measured at fair value on a recurring basis and indicate the level within the fair value hierarchy utilized to determine such values (in thousands):
|
|
As of December 31, 2025 |
|
|||||
|
|
Total |
|
|
Level 1 |
|
||
Cash Equivalents: |
|
|
|
|
|
|
||
U.S. Treasury-backed money market funds |
|
$ |
58,147 |
|
|
$ |
58,147 |
|
Marketable Securities: |
|
|
|
|
|
|
||
U.S. Treasury notes |
|
$ |
87,942 |
|
|
$ |
87,942 |
|
Total |
|
$ |
146,089 |
|
|
$ |
146,089 |
|
|
|
As of December 31, 2024 |
|
|||||
|
|
Total |
|
|
Level 1 |
|
||
Cash Equivalents: |
|
|
|
|
|
|
||
U.S. Treasury-backed money market funds |
|
$ |
45,570 |
|
|
$ |
45,570 |
|
Marketable Securities: |
|
|
|
|
|
|
||
U.S. Treasury notes |
|
$ |
70,770 |
|
|
$ |
70,770 |
|
Total |
|
$ |
116,340 |
|
|
$ |
116,340 |
|
Money market funds are highly liquid investments that are valued based on quoted market prices in active markets, which represent a Level 1 measurement within the fair value hierarchy. These money market funds are classified on the consolidated balance sheets under cash and cash equivalents.
The following table summarizes the scheduled maturity for the Company's marketable securities for the period presented (in thousands):
|
|
December 31, |
|
|
Maturing in one year or less |
|
$ |
87,942 |
|
Total |
|
$ |
87,942 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 23, 2023 | |
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.