Xenon Pharmaceuticals Inc. Fair Value Disclosure
The following table summarizes the fair value hierarchy used to determine the fair values of the Company's cash and cash equivalents and marketable securities:
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December 31, 2025 |
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|
December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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|
Level 1 |
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Level 2 |
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|
Level 3 |
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|
Total |
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Cash and cash equivalents |
|
|
|
|
|
|
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|
|
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|
|
|
|
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Cash, money market fund, mutual funds, |
|
$ |
154,659 |
|
|
$ |
44,504 |
|
|
$ |
— |
|
|
$ |
199,163 |
|
|
$ |
142,712 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
142,712 |
|
Marketable securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Guaranteed investment certificates |
|
|
14,737 |
|
|
|
— |
|
|
|
— |
|
|
|
14,737 |
|
|
|
16,147 |
|
|
|
— |
|
|
|
— |
|
|
|
16,147 |
|
U.S. treasuries |
|
|
142,593 |
|
|
|
— |
|
|
|
— |
|
|
|
142,593 |
|
|
|
130,948 |
|
|
|
— |
|
|
|
— |
|
|
|
130,948 |
|
Commercial paper |
|
|
— |
|
|
|
39,559 |
|
|
|
— |
|
|
|
39,559 |
|
|
|
— |
|
|
|
66,905 |
|
|
|
— |
|
|
|
66,905 |
|
Corporate debt securities |
|
|
— |
|
|
|
189,986 |
|
|
|
— |
|
|
|
189,986 |
|
|
|
— |
|
|
|
397,689 |
|
|
|
— |
|
|
|
397,689 |
|
Total marketable securities |
|
|
157,330 |
|
|
|
229,545 |
|
|
|
— |
|
|
|
386,875 |
|
|
|
147,095 |
|
|
|
464,594 |
|
|
|
— |
|
|
|
611,689 |
|
Total |
|
$ |
311,989 |
|
|
$ |
274,049 |
|
|
$ |
— |
|
|
$ |
586,038 |
|
|
$ |
289,807 |
|
|
$ |
464,594 |
|
|
$ |
— |
|
|
$ |
754,401 |
|
The fair values of the Company’s commercial paper and corporate debt securities are based on prices obtained from independent pricing sources. Securities with validated quotes from pricing services are reflected within Level 2, as they are primarily based on observable pricing for similar assets or other market observable inputs. Typical inputs used by these pricing services include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers or estimates of cash flow, prepayment spreads and default rates.
As of December 31, 2025 and 2024, the Company does not hold any securities classified as Level 3 and there were no securities transferred between Level 1 and 2.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 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.