v3.25.2
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis

The following table presents information regarding the Company’s financial liabilities that were measured at fair value on a recurring basis:

 

 

June 30, 2025

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Earnout liability

 

$

 

 

$

 

 

$

8,279

 

 

$

8,279

 

 

 

 

December 31, 2024

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Earnout liability

 

$

 

 

$

 

 

$

17,235

 

 

$

17,235

 

Summary of Significant Inputs Used to Measure Fair Value of Level 3 Earnout Liability

The following table provides the significant inputs used to measure the fair value of the level 3 earnout liability related to the Business Combination Agreement:

 

 

As of

 

 

 

June 30, 2025

 

 

December 31, 2024

 

Stock price

 

$

4.02

 

 

$

6.18

 

Risk-free rate

 

 

3.7

%

 

 

4.2

%

Volatility

 

 

71.6

%

 

 

75.0

%

Term (in years)

 

 

1.9

 

 

 

2.4

 

 

The following table provides the significant inputs used to measure the fair value of the level 3 earnout liability related to the acquisition of Simpatra:

 

 

As of

 

 

 

June 30, 2025

 

 

December 31, 2024

 

Stock price

 

$

4.02

 

 

$

6.18

 

Risk-free rate

 

 

3.7

%

 

 

4.3

%

Equity volatility

 

 

63.0

%

 

 

68.5

%

Revenue volatility

 

 

54.8

%

 

 

53.9

%

Revenue discount rate

 

 

14.8

%

 

 

14.6

%

Correlation factor

 

 

5.0

%

 

 

5.0

%

Term (in years)

 

 

2.5

 

 

 

3.0

 

Changes in Fair Value of Level 3 Financial Instruments

Changes in the fair value of the Company’s Level 3 financial instruments were as follows:

(in thousands)

 

Earnout Liability

 

Fair value as of December 31, 2024

 

$

17,235

 

Settlement

 

 

(75

)

Gain on asset acquisition

 

 

(25

)

Gain from change in fair value

 

 

(8,856

)

Fair value as of June 30, 2025

 

$

8,279