v3.25.2
Fair value of financial instruments
 6 Months Ended
Jun. 30, 2025
Fair value of financial instruments  
Fair value of financial instruments

Note 12. Fair value of financial instruments

Fair value provides information on what the Company may realize if certain assets were sold or might pay to transfer certain liabilities based upon an exit price. Financial assets and liabilities that are measured and reported at fair value are classified into a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs as follows:

●Level 1 – Quoted prices in active markets for identical assets or liabilities.
●Level 2 – Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. Long-term debt is classified as a Level 2 fair value input.
●Level 3 – Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company’s own data and judgements about assumptions that market participants would use in pricing the asset or liability.

The following table lists the Company’s financial assets and liabilities accounted for at fair value by the fair value hierarchy:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at

​

Fair Value Measurements at

​

​

June 30, 

​

Report Date Using

​

    

2025

    

(Level 1)

    

(Level 2)

    

(Level 3)

Deferred compensation liability

​

$

5,701

​

$

5,701

​

$

—

​

$

—

Total

​

$

5,701

​

$

5,701

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at

​

Fair Value Measurements at

​

​

December 31, 

​

Report Date Using

​

    

2024

    

(Level 1)

    

(Level 2)

    

(Level 3)

Deferred compensation liability

​

$

4,969

​

$

4,969

​

$

—

​

$

—

Total

​

$

4,969

​

$

4,969

​

$

—

​

$

—

​

Fair value measurements for the Company’s cash and cash equivalents are classified based upon Level 1 measurements because such measurements are based upon quoted market prices in active markets for identical assets.

Accounts receivable, accounts payable, long-term debt and accrued liabilities are recorded in the Condensed Consolidated Balance Sheets at cost and approximate fair value.

Deferred compensation liabilities are recorded at amounts due to participants at the time of deferral. Deferrals are invested in an investment vehicle based on the options made available to the participant, considered to be Level 1 or Level 2 on the fair value hierarchy, with the current balance all as Level 1. The change in fair value is recorded in the bonuses and deferred compensation line item on the Condensed Consolidated Statements of Comprehensive Income (Loss). The short-term and long-term balances due to participants are reflected on the bonuses and deferred compensation and deferred compensation, less current portion line items, respectively, on the Condensed Consolidated Balance Sheets.

The Company’s non-financial assets such as goodwill, intangible assets and property, plant, and equipment are re-measured at fair value when there is an indication of impairment and adjusted only when an impairment charge is recognized. As of June 30, 2025, there was no impairment recognized for the year.