| FAIR VALUE |
NOTE 7 – FAIR VALUE The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | June 30, 2025 | | Level 1 | | Level 2 | | Level 3 | | Total | U.S. Treasury Securities (included within Customer funds) | $ | 1,279,774 | | $ | — | | $ | — | | $ | 1,279,774 | Derivative assets (included within Other current assets) | | | | | | | | | | | | Interest rate floors | $ | — | | $ | 1,564 | | $ | — | | $ | 1,564 | Foreign currency forwards | | — | | | 4,036 | | | — | | | 4,036 | Foreign currency net purchased options | | — | | | 1,404 | | | — | | | 1,404 | Total current derivative assets | $ | — | | $ | 7,004 | | $ | — | | $ | 7,004 | Derivative assets (included within Other non-current assets) | | | | | | | | | | | | Interest rate floors | $ | — | | $ | 24,343 | | $ | — | | $ | 24,343 | Total financial assets | $ | 1,279,774 | | $ | 31,347 | | $ | — | | $ | 1,311,121 | Skuad acquisition earnout liability (included within Other payables) | $ | — | | $ | — | | $ | 9,119 | | $ | 9,119 | Current portion of Payeco deferred payment liability (included within Other payables) | | — | | | — | | | 3,754 | | | 3,754 | Non-current portion of Payeco deferred payment liability (included within Other long-term liabilities) | | — | | | — | | | 8,256 | | | 8,256 | Total financial liabilities | $ | — | | $ | — | | $ | 21,129 | | $ | 21,129 |
| | | | | | | | | | | | | December 31, 2024 | | Level 1 | | Level 2 | | Level 3 | | Total | U.S. Treasury Securities (included within Customer funds) | $ | 1,174,937 | | $ | — | | $ | — | | $ | 1,174,937 | Derivative assets (included within Other current assets) | | | | | | | | | | | | Interest rate floors | $ | — | | $ | 739 | | $ | — | | $ | 739 | Foreign currency forwards | | — | | | 910 | | | — | | | 910 | Foreign currency net purchased options | | — | | | 385 | | | — | | | 385 | Total current derivative assets | $ | — | | $ | 2,034 | | $ | — | | $ | 2,034 | Derivative assets (included within Other non-current assets) | | | | | | | | | | | | Interest rate floors | $ | — | | $ | 17,692 | | $ | — | | $ | 17,692 | Total financial assets | $ | 1,174,937 | | $ | 19,726 | | $ | — | | $ | 1,194,663 | Current portion of Skuad acquisition earnout liability (incuded within Other payables) | $ | — | | $ | — | | $ | 723 | | $ | 723 | Non-current portion of Skuad acquisition earnout liability (included within Other long-term liabilities) | $ | — | | $ | — | | $ | 8,021 | | $ | 8,021 | Total financial liabilities | $ | — | | $ | — | | $ | 8,744 | | $ | 8,744 |
The Company’s foreign currency derivative instruments are valued using pricing models that take into account the contract terms and relevant currency rates. The Company’s interest rate floors are valued using pricing models that take into account the contract terms and relevant interest rates. As of June 30, 2025 and December 31, 2024, the fair values of the Company’s cash, cash equivalents, customer funds (other than the portion consisting of available-for-sale debt securities), restricted cash, accounts receivable, capital advance receivables, accounts payable, and outstanding operating balances approximated the carrying values of these instruments presented in the Company’s condensed consolidated balance sheets because of their nature. NOTE 7 – FAIR VALUE (continued): In 2024, the Company recognized a liability for contingent consideration related to the Skuad acquisition, and recognized $110 and $375 during the three and six months ended June 30, 2025, respectively in loss related to the change in the fair value of the liability, included within General and administrative expenses on the condensed consolidated statements of comprehensive income. Refer to Note 3 above for additional details around valuation.
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