SAB Biotherapeutics, Inc. Fair Value Disclosure
(13) Fair Value Measurements
Fair value is defined as the price that would be received to sell 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. The following fair value hierarchy classifies the inputs to valuation techniques that would be used to measure fair value into one of three levels:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
The following tables present information about the Company's assets and liabilities that are measured at fair value on a recurring basis at December 31, 2025 and 2024, and indicate the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
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As of December 31, 2025 |
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Total |
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Quoted |
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Significant |
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Significant |
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Assets: |
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Cash equivalents |
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Money market funds |
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$ |
9,128,243 |
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$ |
9,128,243 |
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$ |
— |
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|
$ |
— |
|
Short-term investments |
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Mutual funds |
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59,129,609 |
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59,129,609 |
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— |
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— |
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U.S. treasury securities |
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24,027,260 |
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24,027,260 |
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— |
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|
— |
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Corporate Bonds |
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2,932,910 |
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— |
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2,932,910 |
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— |
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Long-term investments |
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U.S. treasury securities |
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42,783,989 |
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42,783,989 |
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— |
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— |
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Corporate Bonds |
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4,108,893 |
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— |
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4,108,893 |
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— |
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Liabilities: |
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Public Warrant liability |
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$ |
179,400 |
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$ |
179,400 |
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$ |
— |
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$ |
— |
|
Private Placement Warrant liability |
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6,508 |
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— |
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— |
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|
6,508 |
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Tranche C Preferred Warrants |
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5,449,204 |
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— |
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— |
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5,449,204 |
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As of December 31, 2024 |
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Total |
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Quoted |
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Significant |
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Significant |
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Assets: |
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Cash equivalents |
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Money market funds |
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$ |
3,460,221 |
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$ |
3,460,221 |
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$ |
|
|
$ |
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U.S. treasury securities |
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3,248,959 |
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|
3,248,959 |
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Short-term investments |
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Mutual funds |
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5,638,567 |
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5,638,567 |
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U.S. treasury securities |
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6,224,179 |
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6,224,179 |
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Liabilities: |
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Public Warrant liability |
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$ |
432,975 |
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$ |
432,975 |
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$ |
— |
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Private Placement Warrant liability |
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15,708 |
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— |
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— |
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|
15,708 |
|
Tranche C and B Preferred Warrants |
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5,940,543 |
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|
|
— |
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— |
|
|
|
5,940,543 |
|
The following table provides a summary of changes in Level 3 fair value measurements for the Private Placement Warrant Liability:
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Balance, December 31, 2024 |
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$ |
15,708 |
|
Change in fair value of Private Placement Warrant liability |
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(9,200 |
) |
Balance, December 31, 2025 |
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$ |
6,508 |
|
The following table provides a summary of the changes in Level 3 fair value measurements for the Preferred Warrant liabilities:
Balance, December 31, 2024 |
|
$ |
5,940,543 |
|
Change in fair value of the Preferred Warrant liabilities |
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|
(491,339 |
) |
Balance, December 31, 2025 |
|
$ |
5,449,204 |
|
As of December 31, 2025 and 2024, the Company did not have any other assets or liabilities that are recorded at fair value on a recurring basis.
The Company believes that the carrying amounts of its cash and cash equivalents, accrued interest receivable, accounts payable, notes payable, accrued expenses and other current liabilities approximate their fair values due to their near-term maturities.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Apr 14, 2023 | |
| 2021 | Mar 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.