| Summary of Financial Assets Measured at Fair Value on Recurring Basis |
The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the three-tier fair value hierarchy:
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As of March 31, 2025 |
|
(in thousands) |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
Cash equivalents: |
|
|
|
|
|
|
|
|
Money market funds |
$ |
12,884 |
|
$ |
- |
|
$ |
- |
|
$ |
12,884 |
|
Total cash equivalents |
$ |
12,884 |
|
$ |
- |
|
$ |
- |
|
$ |
12,884 |
|
Current marketable securities: |
|
|
|
|
|
|
|
|
U.S. Treasury securities |
$ |
- |
|
$ |
10,948 |
|
$ |
- |
|
$ |
10,948 |
|
Total current marketable securities |
$ |
- |
|
$ |
10,948 |
|
$ |
- |
|
$ |
10,948 |
|
Total marketable securities and cash equivalents |
$ |
12,884 |
|
$ |
10,948 |
|
$ |
- |
|
$ |
23,832 |
|
Financial liabilities: |
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|
|
|
|
|
|
|
Long-term debt |
$ |
- |
|
$ |
- |
|
$ |
41,464 |
|
$ |
41,464 |
|
Warrant liabilities |
|
1,182 |
|
|
- |
|
|
1,872 |
|
$ |
3,054 |
|
Non-qualified deferred compensation plan liability |
|
- |
|
|
4,160 |
|
|
- |
|
$ |
4,160 |
|
Total financial liabilities |
$ |
1,182 |
|
$ |
4,160 |
|
$ |
43,336 |
|
$ |
48,678 |
|
Financial assets: |
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|
|
|
|
|
|
|
Corporate-owned life insurance policies |
$ |
- |
|
$ |
2,605 |
|
$ |
- |
|
$ |
2,605 |
|
Total financial assets |
$ |
- |
|
$ |
2,605 |
|
$ |
- |
|
$ |
2,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2024 |
|
(in thousands) |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
Cash equivalents: |
|
|
|
|
|
|
|
|
Money market funds |
$ |
11,720 |
|
$ |
- |
|
$ |
- |
|
$ |
11,720 |
|
Total cash equivalents |
$ |
11,720 |
|
$ |
- |
|
$ |
- |
|
$ |
11,720 |
|
Current marketable securities: |
|
|
|
|
|
|
|
|
U.S. Treasury securities |
$ |
- |
|
$ |
21,835 |
|
$ |
- |
|
$ |
21,835 |
|
Total current marketable securities |
$ |
- |
|
$ |
21,835 |
|
$ |
- |
|
$ |
21,835 |
|
Total marketable securities and cash equivalents |
$ |
11,720 |
|
$ |
21,835 |
|
$ |
- |
|
$ |
33,555 |
|
Financial liabilities: |
|
|
|
|
|
|
|
|
Long-term debt |
$ |
- |
|
$ |
- |
|
$ |
42,245 |
|
$ |
42,245 |
|
Warrant liability |
|
- |
|
|
- |
|
|
3,432 |
|
$ |
3,432 |
|
Non-qualified deferred compensation plan liability |
|
- |
|
|
5,063 |
|
|
- |
|
$ |
5,063 |
|
Total financial liabilities |
$ |
- |
|
$ |
5,063 |
|
$ |
45,677 |
|
$ |
50,740 |
|
Financial assets: |
|
|
|
|
|
|
|
|
Corporate-owned life insurance policies |
$ |
- |
|
$ |
3,006 |
|
$ |
- |
|
$ |
3,006 |
|
Total financial assets |
$ |
- |
|
$ |
3,006 |
|
$ |
- |
|
$ |
3,006 |
|
|
| Summary of Fair Value Measurement Inputs and Valuation Techniques |
The below assumptions were used in the MCS:
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|
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|
March 31, 2025 |
|
December 31, 2024 |
|
Risk-free interest rate |
|
3.86 |
% |
|
4.25 |
% |
Revenue volatility |
|
63.00 |
% |
|
63.00 |
% |
Revenue discount rate |
|
18.35 |
% |
|
14.11 |
% |
The fair value of the $10.9847 Warrants liability, which is reported within Warrant liabilities on the Consolidated Balance Sheets, is estimated by the Company based on the Black-Scholes option pricing model with the following key inputs:
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|
|
|
|
|
|
|
March 31, 2025 |
|
December 31, 2024 |
|
Price of common stock |
$ |
8.14 |
|
$ |
12.80 |
|
Expected term |
8.56 years |
|
8.80 years |
|
Expected volatility |
|
51.59 |
% |
|
48.89 |
% |
Exercise price |
$ |
10.9847 |
|
$ |
10.9847 |
|
Risk-free interest rate |
|
4.13 |
% |
|
4.49 |
% |
Expected dividends |
|
0.00 |
% |
|
0.00 |
% |
|
| Summary of Changes in Fair Value |
The following table presents the summary of changes in the fair value of our Level 3 financial instruments:
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As of March 31, 2025 |
|
As of December 31, 2024 |
|
(in thousands) |
Long-term debt |
|
Warrant liability |
|
Long-term debt |
|
Warrant liability |
|
Balance beginning of period |
$ |
42,245 |
|
$ |
3,432 |
|
$ |
39,812 |
|
$ |
3,158 |
|
Change in fair value in earnings |
|
760 |
|
|
(1,560 |
) |
|
2,463 |
|
|
274 |
|
Change in fair value in other comprehensive loss |
|
(1,541 |
) |
|
- |
|
|
(30 |
) |
|
- |
|
Balance end of period, at fair value |
$ |
41,464 |
|
$ |
1,872 |
|
$ |
42,245 |
|
$ |
3,432 |
|
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