RenovoRx, Inc. Fair Value Disclosure
6. Fair Value Measurements
As of December 31, 2025, and 2024, the Company held $6.6 million and $7.0 million, respectively, in a money market account.
The following tables summarize the Company’s financial assets and liabilities, measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):
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Fair Value Measurements at December 31, 2025 using: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Cash equivalents: |
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Money market funds |
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$ |
6,640 |
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$ |
- |
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$ |
- |
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$ |
6,640 |
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Total cash equivalents |
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$ |
6,640 |
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$ |
- |
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$ |
- |
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$ |
6,640 |
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Liabilities: |
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Common stock warrant liability |
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$ |
- |
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$ |
- |
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$ |
604 |
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$ |
604 |
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Total liabilities |
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$ |
- |
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$ |
- |
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$ |
604 |
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$ |
604 |
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Fair Value Measurements at December 31, 2024 using: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Cash equivalents: |
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Money market funds |
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$ |
7,008 |
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$ |
- |
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$ |
- |
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$ |
7,008 |
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Total cash equivalents |
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$ |
7,008 |
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$ |
- |
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$ |
- |
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$ |
7,008 |
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Liabilities: |
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Common stock warrant liability |
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$ |
- |
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$ |
- |
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$ |
1,519 |
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$ |
1,519 |
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Total liabilities |
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$ |
- |
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$ |
- |
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$ |
1,519 |
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$ |
1,519 |
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There were no transfers between Level 1, Level 2 or Level 3 during the periods presented. The Company had no other financial assets or liabilities that were required to be measured at fair value on a recurring basis.
Common Stock Warrants Liability, Changes on Level 3 Liabilities Measured at Fair Value on a Recurring Basis
The following table reflects the change in the Company’s Level 3 common stock warrant liability for the year ended December 31, 2025 (in thousands):
Schedule of Level 3 Liabilities Measured at Fair Value on a Recurring Basis
Fair value as of December 31, 2024 |
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$ |
1,519 |
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Change in fair value |
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(915 |
) |
Fair value as of December 31, 2025 |
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$ |
604 |
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The Company remeasures the fair value of its common stock warrant liability at each reporting date. The fair value of the common stock warrants was determined using a probability weighted scenario method with a Monte Carlo simulation and Black-Scholes model. The scenario-based method estimates the fair value of the Company’s common stock warrants by considering various outcomes as assessed by the Company. Quantitative elements associated with the inputs impacting the fair value measurement of the common stock warrants include the underlying fair value of common stock, timing of the expected scenarios, risk-free rate, and volatility of the Company’s shares. The risk-free rate is determined by reference to the U.S. Treasury yield curve for the respective time periods based on the remaining contractual term of the warrants. The volatility is based on the historical volatility of the Company’s stock. The Monte Carlo simulation projects the Company’s volume weighted average stock price based on the various fundamental transaction scenarios considered and utilizes a Black-Scholes model to value the warrants within these scenarios.
The following table details the assumptions used in the Monte Carlo simulation to estimate the fair value of the common stock warrant liability:
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December 31, |
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December 31, |
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Stock price |
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$ |
0.84 |
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$ |
1.29 |
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Expected volatility |
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102.0% - 122.0% |
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108.0 |
% |
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Expected term (years) |
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0.00 - 2.76 |
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3.76 |
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Risk-free interest rate |
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3.53% - 3.67% |
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4.31 |
% |
|
Dividend rate |
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|
- |
% |
|
|
- |
% |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Apr 1, 2025 | |
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.