VICOR CORP Fair Value Disclosure
The Company accounts for certain financial assets at fair value, defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. A three-level hierarchy is used to show the extent and level of judgment used to estimate fair value measurements.
Assets and liabilities measured at fair value on a recurring basis included the following as of December 31, 2025 (in thousands):
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Using |
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Significant |
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Quoted Prices |
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Other |
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Significant |
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in Active |
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Observable |
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Unobservable |
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Total Fair |
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Markets |
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Inputs |
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Inputs |
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Value as of |
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(Level 1) |
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(Level 2) |
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(Level 3) |
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December 31, 2025 |
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Cash equivalents: |
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Money market funds |
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$ |
367,340 |
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$ |
— |
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$ |
— |
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$ |
367,340 |
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Long-term investment: |
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Failed Auction Security |
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— |
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— |
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2,462 |
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2,462 |
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Assets measured at fair value on a recurring basis included the following as of December 31, 2024 (in thousands):
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Using |
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Significant |
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Quoted Prices |
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Other |
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Significant |
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in Active |
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Observable |
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Unobservable |
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Total Fair |
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Markets |
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Inputs |
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Inputs |
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Value as of |
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(Level 1) |
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(Level 2) |
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(Level 3) |
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December 31, 2024 |
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Cash equivalents: |
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Money market funds |
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$ |
246,745 |
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$ |
— |
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$ |
— |
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$ |
246,745 |
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Long-term investment: |
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Failed Auction Security |
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— |
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— |
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2,641 |
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2,641 |
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The change in the estimated fair value calculated for the investment valued on a recurring basis utilizing Level 3 inputs (i.e., the Failed Auction Security) for the year ended December 31, 2025 was as follows (in thousands):
Balance at the beginning of the period |
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$ |
2,641 |
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Loss included in |
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(179 |
) |
Balance at the end of the period |
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$ |
2,462 |
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Management utilized a probability weighted discounted cash flow model to determine the estimated fair value of this investment as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 7, 2017 | |
| 2015 | Mar 8, 2016 | |
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.