v3.26.1
Note 4 - Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

4.

Fair value measurements

 

Recurring Basis

 

A summary of financial assets and liabilities that are measured at fair value on a recurring basis, as of March 31, 2026 and December 31, 2025, were as follows (in thousands):

 

   

March 31, 2026

  
   

Level 1

    

Level 2

    

Level 3

    

Total

  

Assets:

                                

Non-current accounts receivable, net

   $ -     $ 7,432     $ -     $ 7,432  

Liabilities:

                                

Contingent consideration

     -       -       9,313       9,313  

Long-term borrowings

     -       79,065       -       79,065  

Finance lease liabilities

     -       14,422       -       14,422  

 

 

   

December 31, 2025

  
   

Level 1

    

Level 2

    

Level 3

    

Total

  

Assets:

                                

Non-current accounts receivable, net

   $ -     $ 7,432     $ -     $ 7,432  

Liabilities:

                                

Contingent consideration

     -       -       9,470       9,470  

Long-term borrowings

     -       79,065       -       79,065  

Finance lease liabilities

     -       15,121       -       15,121  

 

We have certain contingent consideration assets and liabilities related to acquisitions which are measured at fair value using Level 3 inputs. The amount of contingent consideration due from or due to the sellers is based on the achievement of agreed-upon financial performance metrics by the acquired company, as determined by the terms of the contingent consideration agreements with the sellers of each acquired company. We record a liability at the time of the acquisition based on the present value of management’s best estimates of the future results of the acquired companies compared to the agreed-upon metrics. After the date of acquisition, we update the original valuation to reflect the passage of time and current projections of future results of the acquired companies. Accretion of, and changes in the valuations of, contingent consideration are reported on the condensed consolidated statement of operations within “Severance and other expense.”