v3.26.1
Note 4 - Fair Value Measurements
 6 Months Ended
Jun. 30, 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 June 30, 2026 and December 31, 2025, were as follows (in thousands):

 

  

June 30, 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

  -   13,664   -   13,664 

 

 

  

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”.