SCYNEXIS INC Fair Value Disclosure
The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued expenses approximate their respective fair values due to the short-term nature of such instruments.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period, pursuant to the policy described in Note 2.
This determination requires significant judgments to be made. The following table summarizes the conclusions reached as of December 31, 2025 and 2024 for financial instruments measured at fair value on a recurring basis (in thousands):
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Fair Value Hierarchy Classification |
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Balance |
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Quoted Prices in Active |
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Significant Other |
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Significant Unobservable Inputs (Level 3) |
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December 31, 2025 |
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Cash |
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$ |
1,736 |
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$ |
1,736 |
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— |
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— |
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Restricted cash |
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189 |
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189 |
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— |
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— |
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Money market funds |
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19,523 |
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19,523 |
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— |
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— |
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Total assets |
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$ |
21,448 |
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$ |
21,448 |
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— |
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— |
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Warrant liability |
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$ |
2,225 |
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— |
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— |
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$ |
2,225 |
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Total liabilities |
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$ |
2,225 |
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— |
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— |
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$ |
2,225 |
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December 31, 2024 |
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Cash |
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$ |
3,441 |
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$ |
3,441 |
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— |
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— |
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Restricted cash |
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544 |
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544 |
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— |
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— |
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Money market funds |
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12,610 |
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12,610 |
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— |
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— |
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Total assets |
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$ |
16,595 |
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$ |
16,595 |
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— |
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— |
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Warrant liability |
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$ |
7,998 |
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— |
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— |
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$ |
7,998 |
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Total liabilities |
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$ |
7,998 |
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— |
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— |
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$ |
7,998 |
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The Company measures cash equivalents at fair value on a recurring basis. The fair value of cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. As of December 31, 2025, the cash and cash equivalents of $21.3 million and the restricted cash balances of $0.1 million within both short and long term on the balance sheet, respectively, sum to the total of $21.4 million as shown in the statement of cash flows. As of December 31, 2024, the cash and cash equivalents of $16.1 million and the restricted cash balances of $0.4 million and $0.1 million within short and long term on the balance sheet, respectively, sum to the total of $16.6 million as shown in the statement of cash flows.
Level 3 financial liabilities consist of the warrant liabilities for which there is no current market such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate. The Company uses the Black-Scholes option valuation model to value the Level 3 warrant liabilities at inception and on subsequent valuation dates. This model incorporates transaction details such as the Company’s stock price, contractual terms, maturity, risk free rates, as well as volatility. The unobservable input for all of the Level 3 warrant liabilities includes volatility. The historical and implied volatility of the Company, using its closing common stock prices and market data, is utilized to reflect future volatility over the expected term of the warrants. At December 31, 2025 and 2024, the Level 3 volatilities utilized in the Black-Scholes model to fair value the warrant liabilities were 86.1% and 83.4%, respectively.
A reconciliation of the beginning and ending balances for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows (in thousands):
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Warrant Liability |
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Balance – January 1, 2025 |
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$ |
7,998 |
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Gain adjustment to fair value |
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(5,773 |
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Balance – December 31, 2025 |
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$ |
2,225 |
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Historical Timeline
| Fiscal Year | Filed | |
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| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 29, 2022 | |
| 2020 | Mar 29, 2021 | |
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.