3. Fair Value Measurement

The following table sets forth the recurring fair value of the Company’s financial assets and liabilities, allocated into the Level 1, Level 2 and Level 3 hierarchy that were measured at fair value on a recurring basis (in thousands):

 

 

Fair Value Measurements as of December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

37,318

 

 

$

 

 

$

 

 

$

37,318

 

U.S. government treasury bills

 

 

43,881

 

 

 

 

 

 

 

 

 

43,881

 

Commercial paper

 

 

 

 

 

16,262

 

 

 

 

 

 

16,262

 

Corporate bonds

 

 

 

 

 

47,986

 

 

 

 

 

 

47,986

 

Total financial assets

 

$

81,199

 

 

$

64,248

 

 

$

 

 

$

145,447

 

 

 

 

Fair Value Measurements as of December 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

27,485

 

 

$

 

 

$

 

 

$

27,485

 

U.S. government treasury bills

 

 

12,562

 

 

 

 

 

 

 

 

 

12,562

 

Commercial paper

 

 

 

 

 

1,744

 

 

 

 

 

 

1,744

 

Corporate bonds

 

 

 

 

 

4,261

 

 

 

 

 

 

4,261

 

Total financial assets

 

$

40,047

 

 

$

6,005

 

 

$

 

 

$

46,052

 

 

(1)
Included in cash and cash equivalents in the accompanying balance sheets.

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 28, 2025
2023Mar 13, 2024
2022Mar 29, 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.