Scholar Rock Holding Corp Fair Value Disclosure
3. Fair Value of Financial Assets and Liabilities
The following tables summarize the assets and liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024 (in thousands):
Fair Value Measurements at December 31, 2025 | ||||||||||||
| Total | | Level 1 | | Level 2 | | Level 3 | |||||
Assets: | | | | | ||||||||
Cash and cash equivalents: | ||||||||||||
Money market funds | $ | 309,089 | $ | 309,089 | $ | — | $ | — | ||||
Marketable securities: |
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U.S. treasury obligations and government agency securities | 44,036 | 44,036 | — | — | ||||||||
Total assets | $ | 353,125 | $ | 353,125 | $ | — | $ | — | ||||
Fair Value Measurements at December 31, 2024 | ||||||||||||
| Total | | Level 1 | | Level 2 | | Level 3 | |||||
Assets: | | | | | ||||||||
Cash and cash equivalents: | ||||||||||||
Money market funds | $ | 97,290 | $ | 97,290 | $ | — | $ | — | ||||
U.S. treasury obligations | 63,171 | 63,171 | — | — | ||||||||
Marketable securities: |
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U.S. treasury obligations and government agency securities |
| 259,400 | 259,400 | — | — | |||||||
Total assets | $ | 419,861 | $ | 419,861 | $ | — | $ | — | ||||
Level 1 assets include investments in money market funds, U.S. treasury obligations and government agency securities that are valued using quoted market prices in active markets. There were no transfers of assets between fair value measurement levels during the years ended December 31, 2025 and 2024.
The carrying amounts reflected in the balance sheets for prepaid expenses and other current assets, accounts payable, and accrued expenses approximate their fair values at December 31, 2025 and 2024, due to their short-term nature.
The Company believes the terms of its debt reflect current market conditions for an instrument with similar terms and maturity, therefore the carrying value of the Company's debt approximates its fair value based on Level 2 of the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 3, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 19, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Mar 12, 2020 | |
| 2018 | Mar 19, 2019 | |
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.