Fair Value Measurement |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurement | NOTE 4: Fair Value Measurement The Company determines the fair market values of its financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following are three levels of inputs that may be used to measure fair value:
In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3. Level 3 liabilities that are measured at fair value on a recurring basis consist of the contingent consideration and acquisition-related liabilities resulting from the KSF Acquisition. The inputs used in estimating the fair value of these liabilities at the Closing Date are described in Note 2 – Business Combination. As of June 30, 2026, key assumptions include the discount rate and expected volatility rate, which were 10.0% and 12%, respectively, and probability-weighted projections of revenue, net and gross margin. The following tables summarize, for each category of assets or liabilities carried at fair value, the respective fair value as of June 30, 2026 and December 31, 2025, and the classification by level of input within the fair value hierarchy (in thousands):
There were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis during the periods presented, and the valuation techniques used did not change compared to the Company’s established practice. The following table sets forth a summary of the changes in the fair value of Company’s Level 3 contingent consideration and acquisition-related liabilities during the six-month period ended June 30, 2026, which were measured at fair value on a recurring basis (in thousands):
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