ProMIS Neurosciences Inc. Fair Value Disclosure
3.FAIR VALUE MEASUREMENTS
The following are the major categories of assets measured at fair value on a recurring basis as of December 31, 2025 and 2024:
As of December 31, 2025 | ||||||||||||
| Level 1 | | Level 2 | | Level 3 | | Total | |||||
Assets: | ||||||||||||
Short-term investments | $ | 33,753 | $ | — | $ | — | $ | 33,753 | ||||
Total assets measured at fair value | $ | 33,753 | $ | — | $ | — | $ | 33,753 | ||||
Liabilities: |
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Share-based compensation liability | $ | — | $ | — | $ | 29,182 | $ | 29,182 | ||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 29,182 | $ | 29,182 | ||||
As of December 31, 2024 | ||||||||||||
| Level 1 | | Level 2 | | Level 3 | | Total | |||||
Assets: | ||||||||||||
Short-term investments | $ | 33,051 | $ | — | $ | — | $ | 33,051 | ||||
Total assets measured at fair value | $ | 33,051 | $ | — | $ | — | $ | 33,051 | ||||
Liabilities: |
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| |
| |
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Share-based compensation liability | $ | — | $ | — | $ | 199,263 | $ | 199,263 | ||||
Warrant liability | — | — | 5,592 | 5,592 | ||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 204,855 | $ | 204,855 | ||||
No transfers between levels have occurred in either reporting period presented. Refer to Note 6 for disclosures related to the warrant liability and Note 8 for disclosures related to share-based compensation liability.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 25, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 8, 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.