Protara Therapeutics, Inc. Fair Value Disclosure
3. Fair Value of Financial Instruments
The tables below present information about the Company’s financial instruments that are measured and carried at fair value on a recurring basis as of December 31, 2025 and 2024 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value, as described under Note 2, Summary of Significant Accounting Policies.
| As of December 31, 2025 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Cash and cash equivalents: | ||||||||||||||||
| Money market funds(a) | $ | 45,355 | $ | $ | $ | 45,355 | ||||||||||
| Corporate bonds(a) | 3,704 | 3,704 | ||||||||||||||
| Restricted cash, non-current: | ||||||||||||||||
| Money market funds(b) | 745 | 745 | ||||||||||||||
| Marketable debt securities: | ||||||||||||||||
| Corporate bonds(c) | 125,682 | 125,682 | ||||||||||||||
| U.S. Treasury securities(c) | 22,551 | 22,551 | ||||||||||||||
| Total | $ | 68,651 | $ | 129,386 | $ | $ | 198,037 | |||||||||
| As of December 31, 2024 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Cash and cash equivalents: | ||||||||||||||||
| Money market funds(a) | $ | 162,297 | $ | $ | $ | 162,297 | ||||||||||
| Restricted cash, non-current: | ||||||||||||||||
| Money market funds(b) | 745 | 745 | ||||||||||||||
| Marketable debt securities: | ||||||||||||||||
| U.S. Treasury securities(c) | 7,494 | 7,494 | ||||||||||||||
| Total | $ | 170,536 | $ | $ | $ | 170,536 | ||||||||||
| (a) | Money market funds and corporate bonds with original maturities of 90 days or less are included within cash and cash equivalents in the consolidated balance sheets. |
| (b) | Restricted money market funds are included within restricted cash, non-current in the consolidated balance sheets. |
| (c) | U.S. Treasury securities and corporate bonds with original maturities greater than 90 days are included within marketable debt securities in the consolidated balance sheets and classified as current or non-current based upon whether the maturity of the financial asset is less than or greater than 12 months. |
Money market funds and U.S. Treasury securities are classified as Level 1 within the fair value hierarchy, because they are valued using quoted prices in active markets. Corporate and agency bonds classified as Level 2 within the fair value hierarchy are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. Prices of these securities are obtained through independent, third-party pricing services and include market quotations that may include both observable and unobservable inputs. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. There were no transfers of financial instruments among Level 1, Level 2, and Level 3 during the period presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 8, 2023 | |
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.