v3.25.1
Fair Value Measurements and Fair Value of Instruments
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Instruments

NOTE 3. FAIR VALUE MEASUREMENTS AND FAIR VALUE OF INSTRUMENTS

The following tables display the carrying values and fair values of financial instruments.

 

 

 

 

 

As of

 

 

 

 

 

March 31, 2025

 

 

December 31, 2024

 

Assets on the Condensed Consolidated Balance Sheets

 

 

 

Carrying Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Carrying
Value

 

 

Unrealized Losses

 

 

Fair
Value

 

Cash and cash equivalents

 

Level 1

 

$

125,600

 

 

$

-

 

 

$

125,600

 

 

$

142,482

 

 

$

-

 

 

$

142,482

 

Total

 

 

 

$

125,600

 

 

$

-

 

 

$

125,600

 

 

$

142,482

 

 

$

-

 

 

$

142,482

 

 

The Company reports the current portion of restricted cash as a separate item in the Condensed Consolidated Balance Sheets and the non-current portion is a component of other long-term assets in the Condensed Consolidated Balance Sheets.

 

 

 

 

 

As of

 

 

 

 

 

March 31, 2025

 

 

December 31, 2024

 

Liabilities on the Condensed Consolidated Balance Sheets

 

 

 

Carrying
Value

 

 

Fair
Value

 

 

Carrying
Value

 

 

Fair
Value

 

Acquisition earnout payment

 

Level 3

 

$

1,760

 

 

$

1,760

 

 

$

1,760

 

 

$

1,760

 

Total liabilities

 

 

 

$

1,760

 

 

$

1,760

 

 

$

1,760

 

 

$

1,760

 

 

In December 2021, the Company purchased all of the outstanding equity interests of iQuue, LLC ("iQuue"). The Company reports the current portion of the acquisition earnout payment as a component of other current liabilities in the Condensed Consolidated Balance Sheets and the non-current portion is a component of other long-term liabilities on the Condensed Consolidated Balance Sheets. Earnout payments related to acquisitions are measured at fair value each reporting period using Level 3 unobservable inputs. The changes in the fair value of the Company's Level 3 liabilities for the three months ended March 31, 2025 and year ended December 31, 2024 are as follows.

 

 

 

 

As of

 

 

 

 

 

March 31, 2025

 

 

December 31, 2024

 

Balance at beginning of period

 

 

 

$

1,760

 

 

$

4,250

 

Payment of earnout in connection with the iQuue acquisition

 

 

 

 

-

 

 

 

(1,530

)

Change in fair value of earnout

 

 

 

 

-

 

 

 

(960

)

Balance at end of period

 

 

 

$

1,760

 

 

$

1,760

 

 

 

The fair value of the earnout payment is measured on a recurring basis at each reporting date. The following inputs and assumptions were used in the Monte Carlo simulation model to estimate the fair value of the earnout payment as of March 31, 2025 and December 31, 2024. During the three months ended March 31, 2025, the Company determined there was no material change in the fair value of the earnout. During the three months ended March 31, 2024, there was an $80 increase in the fair value of the earnout, primarily due to a decreased payment term as the Company was three months closer to the payment date. The Company recorded these adjustments in general and administrative expense on the Condensed Consolidated Statement of Operations and Comprehensive Loss. The following table sets forth the weighted-average assumptions used to estimate the fair value of the earnout payment as of March 31, 2025 and December 31, 2024.

 

 

 

 

 

As of

 

 

 

 

 

March 31, 2025

 

 

December 31, 2024

 

Discount Rate

 

 

 

 

18.50

%

 

 

12.30

%

Volatility

 

 

 

 

40.00

%

 

 

40.00

%