6. Fair Value Measurements

The following tables present the financial instruments carried at fair value on a recurring basis as of December 31, 2025 and 2024, respectively, in accordance with the fair value hierarchy (in thousands):

 

 

December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

673

 

 

$

 

 

$

 

 

$

673

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

51,435

 

 

 

 

 

 

 

 

 

51,435

 

Total

$

52,108

 

 

$

 

 

$

 

 

$

52,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

9,491

 

 

$

 

 

$

 

 

$

9,491

 

Marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

107,458

 

 

 

 

 

 

 

 

 

107,458

 

Total

$

116,949

 

 

$

 

 

$

 

 

$

116,949

 

 

The Company’s cash equivalents represent deposits in a short-term money market fund quoted in an active market and classified as Level 1 assets. Marketable debt securities include investments in U.S. Treasury securities and are classified as Level 1 assets as they are valued using quoted prices in active markets. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the years ended December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Mar 23, 2026Showing above
2024Mar 18, 2025
2023Mar 21, 2024
2022Mar 22, 2023
2021Mar 29, 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.