Stoke Therapeutics, Inc. Fair Value Disclosure
3. Fair value measurements
The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values:
|
|
Fair value measurements as of |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
72,890 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
72,890 |
|
Total |
|
$ |
72,890 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
72,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Marketable Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate bonds |
|
$ |
— |
|
|
$ |
84,750 |
|
|
$ |
— |
|
|
$ |
84,750 |
|
Commercial paper |
|
|
— |
|
|
|
23,961 |
|
|
|
— |
|
|
|
23,961 |
|
US Government and US Government agency debt securities |
|
|
— |
|
|
|
197,999 |
|
|
|
— |
|
|
|
197,999 |
|
Total |
|
$ |
— |
|
|
$ |
306,710 |
|
|
$ |
— |
|
|
$ |
306,710 |
|
|
|
Fair value measurements as of |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
122,446 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
122,446 |
|
Total |
|
$ |
122,446 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
122,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Marketable Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate bonds |
|
$ |
— |
|
|
$ |
18,668 |
|
|
$ |
— |
|
|
$ |
18,668 |
|
Commercial paper |
|
|
— |
|
|
|
6,944 |
|
|
|
— |
|
|
|
6,944 |
|
US Government debt securities |
|
|
— |
|
|
|
93,128 |
|
|
|
— |
|
|
|
93,128 |
|
Total |
|
$ |
— |
|
|
$ |
118,740 |
|
|
$ |
— |
|
|
$ |
118,740 |
|
The Company’s cash equivalents and marketable securities are carried at fair value, determined according to the fair value hierarchy described above and in Note 2. The carrying value of the Company’s accounts payable and accrued expenses approximate their fair values due to the short-term nature of these liabilities.
The Company’s assets with fair value categorized as Level 1 within the fair value hierarchy include money market funds. Money market funds are publicly traded mutual funds and are presented as cash equivalents on the consolidated balance sheets as of December 31, 2025 and 2024.
The Company measures its marketable securities at fair value on a recurring basis and classifies those instruments within Level 2 of the fair value hierarchy. Marketable securities are valued using models or other valuation methodologies that use Level 2 inputs. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, default rates, current market and contractual prices for the underlying financial instruments, as well as other economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace.
There were no transfers to Level 3 in the periods presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 18, 2025 | |
| 2023 | Mar 25, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Mar 10, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Mar 23, 2020 | |
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.