v3.26.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

5. Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value. Fair value is determined based on the exit price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy:

 

Level 1 -

Quoted prices in active markets for identical assets or liabilities.

 

 

Level 2 -

Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 

 

Level 3 -

Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

 

The Company’s population of financial assets and liabilities subject to fair value measurements on a recurring basis are as follows:

 

 

 

Fair Value as of December 31, 2025

 

Recurring fair value measurements

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Contingent purchase consideration (1)

 

$

—

 

 

$

—

 

 

$

(2,756

)

 

$

(2,756

)

 

$

—

 

 

$

—

 

 

$

(2,756

)

 

$

(2,756

)

 

 

Fair Value as of December 31, 2024

 

Recurring fair value measurements

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Money market funds

 

$

8,853

 

 

$

—

 

 

$

—

 

 

$

8,853

 

Contingent purchase consideration (1)

 

 

—

 

 

 

—

 

 

 

(2,925

)

 

 

(2,925

)

 

$

8,853

 

 

$

—

 

 

$

(2,925

)

 

$

5,928

 

 

(1) Contingent purchase consideration represents a liability recorded at fair value in connection with the Otonomo merger, and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent purchase consideration was estimated based on the fair value of the Company’s shares issuable on a contingent basis. Contingent purchase consideration is included in Accrued expenses in the condensed consolidated balance sheets.

The following table sets forth a summary of the changes in the fair value of the contingent purchase consideration:

 

Fair value as of December 31, 2023

 

$

4,617

 

Change in fair value

 

 

(1,692

)

Fair value as of December 31, 2024

 

 

2,925

 

Change in fair value

 

 

(169

)

Fair value as of December 31, 2025

 

$

2,756

 

 

The carrying values for cash, accounts receivable, accounts payable and long-term debt approximated fair value for the years ended December 31, 2025 and 2024.