Talkspace, Inc. Fair Value Disclosure
NOTE 5. FAIR VALUE MEASUREMENTS
The carrying value of the Company’s cash, cash equivalents, accounts receivable, other current assets, accounts payable, and accrued expenses and other current liabilities approximate fair value because of the relatively short-term nature of the underlying assets or liabilities.
Cash, Cash Equivalents and Marketable Securities
The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 31, 2025 and 2024:
|
|
Fair Value Measurements as of December 31, 2025 |
|
|||||||||||||||||||||
(in thousands) |
|
Adjusted Cost Basis |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Fair Value |
|
|
Cash and Cash Equivalents |
|
|
Marketable Securities |
|
||||||
Cash |
|
$ |
1,059 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,059 |
|
|
$ |
1,059 |
|
|
$ |
— |
|
Level 1: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Money market funds |
|
|
36,293 |
|
|
|
— |
|
|
|
— |
|
|
|
36,293 |
|
|
|
36,293 |
|
|
|
— |
|
Commercial paper |
|
|
986 |
|
|
|
— |
|
|
|
— |
|
|
|
986 |
|
|
|
— |
|
|
|
986 |
|
Total level 1 |
|
|
37,279 |
|
|
|
— |
|
|
|
— |
|
|
|
37,279 |
|
|
|
36,293 |
|
|
|
986 |
|
Level 2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury securities |
|
|
3,783 |
|
|
|
2 |
|
|
|
— |
|
|
|
3,785 |
|
|
|
— |
|
|
|
3,785 |
|
U.S. Government securities |
|
|
14,988 |
|
|
|
28 |
|
|
|
— |
|
|
|
15,016 |
|
|
|
— |
|
|
|
15,016 |
|
Certificates of deposit |
|
|
1,201 |
|
|
|
1 |
|
|
|
— |
|
|
|
1,202 |
|
|
|
— |
|
|
|
1,202 |
|
Corporate debt securities |
|
|
34,219 |
|
|
|
28 |
|
|
|
(2 |
) |
|
|
34,245 |
|
|
|
— |
|
|
|
34,245 |
|
Total level 2 |
|
|
54,191 |
|
|
|
59 |
|
|
|
(2 |
) |
|
|
54,248 |
|
|
|
— |
|
|
|
54,248 |
|
|
|
$ |
92,529 |
|
|
$ |
59 |
|
|
$ |
(2 |
) |
|
$ |
92,586 |
|
|
$ |
37,352 |
|
|
$ |
55,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Fair Value Measurements as of December 31, 2024 |
|
|||||||||||||||||||||
(in thousands) |
|
Adjusted Cost Basis |
|
|
Unrealized Gains |
|
|
Unrealized Losses |
|
|
Fair Value |
|
|
Cash and Cash Equivalents |
|
|
Marketable Securities |
|
||||||
Cash |
|
$ |
911 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
911 |
|
|
$ |
911 |
|
|
$ |
— |
|
Level 1: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Money market funds |
|
|
68,639 |
|
|
|
— |
|
|
|
— |
|
|
|
68,639 |
|
|
|
68,639 |
|
|
|
— |
|
Commercial paper |
|
|
6,876 |
|
|
|
3 |
|
|
|
— |
|
|
|
6,879 |
|
|
|
648 |
|
|
|
6,231 |
|
Total level 1 |
|
|
75,515 |
|
|
|
3 |
|
|
|
- |
|
|
|
75,518 |
|
|
|
69,287 |
|
|
|
6,231 |
|
Level 2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury securities |
|
|
7,232 |
|
|
|
2 |
|
|
|
— |
|
|
|
7,234 |
|
|
|
6,494 |
|
|
|
740 |
|
U.S. Government securities |
|
|
1,439 |
|
|
|
2 |
|
|
|
— |
|
|
|
1,441 |
|
|
|
— |
|
|
|
1,441 |
|
Certificates of deposit |
|
|
2,920 |
|
|
|
1 |
|
|
|
— |
|
|
|
2,921 |
|
|
|
— |
|
|
|
2,921 |
|
Corporate debt securities |
|
|
29,791 |
|
|
|
7 |
|
|
|
(13 |
) |
|
|
29,785 |
|
|
|
— |
|
|
|
29,785 |
|
Total level 2 |
|
|
41,382 |
|
|
|
12 |
|
|
|
(13 |
) |
|
|
41,381 |
|
|
|
6,494 |
|
|
|
34,887 |
|
|
|
$ |
117,808 |
|
|
$ |
15 |
|
|
$ |
(13 |
) |
|
$ |
117,810 |
|
|
$ |
76,692 |
|
|
$ |
41,118 |
|
Contractual Maturities
The following table summarizes the remaining contractual maturities of our marketable securities as of December 31, 2025:
|
|
As of December 31, 2025 |
|
|
(in thousands) |
|
Fair Value |
|
|
Due within one year |
|
$ |
47,396 |
|
Due after one year through two years |
|
|
7,838 |
|
Total |
|
$ |
55,234 |
|
Level 3
The following table presents changes in Level 3 liabilities measured at fair value on a recurring basis for the years ended December 31, 2025 and 2024:
|
|
Level 3 Liabilities |
|
|||||||||
|
|
Year Ended December 31, 2025 |
|
|||||||||
(in thousands) |
|
Beginning Balance |
|
|
Change in Fair Value |
|
|
Ending Balance |
|
|||
Private Placement Warrants |
|
$ |
1,690 |
|
|
$ |
(1,491 |
) |
|
$ |
199 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Level 3 Liabilities |
|
|||||||||
|
|
Year Ended December 31, 2024 |
|
|||||||||
(in thousands) |
|
Beginning Balance |
|
|
Change in fair Value |
|
|
Ending Balance |
|
|||
Private Placement Warrants |
|
$ |
1,842 |
|
|
$ |
(152 |
) |
|
$ |
1,690 |
|
The following were the inputs utilized in determining the fair value of the Private Placement Warrants as of December 31, 2025 and 2024:
|
|
Year Ended December 31, |
||
|
|
2025 |
|
2024 |
Dividend yield (1) |
|
0% |
|
0% |
Expected volatility (2) |
|
75.20% |
|
68.80% |
Risk-free interest rate (3) |
|
3.60% |
|
4.20% |
Time to maturity (years) |
|
0.47 |
|
1.47 |
(1) No dividends were paid for the years ending December 31, 2025 and 2024.
(2) The expected volatility is based on the volatility implied by backsolving to the Public Warrants' price as of the valuation date.
(3) The risk -free interest rate is based on the yield from U.S. Treasury bonds with an equivalent term to the time to maturity of the warrants.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Feb 25, 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.