Vor Biopharma Inc. Fair Value Disclosure
4. Fair Value Measurements
The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis:
|
|
December 31, 2024 |
|
|||||||||||||
(in thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
81,718 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
81,718 |
|
Marketable securities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasuries |
|
|
— |
|
|
|
9,977 |
|
|
|
— |
|
|
|
9,977 |
|
Total marketable securities |
|
|
— |
|
|
|
9,977 |
|
|
|
— |
|
|
|
9,977 |
|
Restricted cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
|
2,413 |
|
|
|
— |
|
|
|
— |
|
|
|
2,413 |
|
Total |
|
$ |
84,131 |
|
|
$ |
9,977 |
|
|
$ |
— |
|
|
$ |
94,108 |
|
|
|
December 31, 2023 |
|
|||||||||||||
(in thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
31,164 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
31,164 |
|
Marketable securities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury Bill |
|
|
8,812 |
|
|
|
— |
|
|
|
— |
|
|
|
8,812 |
|
U.S. Treasuries |
|
|
— |
|
|
|
97,003 |
|
|
|
— |
|
|
|
97,003 |
|
Total marketable securities |
|
|
8,812 |
|
|
|
97,003 |
|
|
|
— |
|
|
|
105,815 |
|
Restricted cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
|
2,413 |
|
|
|
— |
|
|
|
— |
|
|
|
2,413 |
|
Total |
|
$ |
42,389 |
|
|
$ |
97,003 |
|
|
$ |
— |
|
|
$ |
139,392 |
|
The fair value of the Company’s cash equivalents and restricted cash equivalents is based on quoted market prices in active markets with no valuation adjustment. The fair value of marketable securities was determined based on observable market inputs. During the years ended December 31, 2024 and 2023, there were no transfers between levels.
Prepaid expenses, accounts payable and accrued expenses are stated at their respective historical carrying values which approximate fair value due to their short-term nature.
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.