Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.22.0.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2021
Fair Value Measurements  
Schedule of Financial Assets and Liabilities Carried at Fair Value on Recurring Basis

The following tables set forth the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as follows (in thousands):

Fair Value Measurements at December 31, 2021 Using

Quoted Prices in

Significant Other

Significant

Active Markets for

Observable

Unobservable

Identical Assets

Inputs

Inputs

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

Assets:

Equity securities

$

774

$

$

$

774

Liabilities:

Contingent consideration under RPAs and CPPAs

$

$

$

8,075

$

8,075

Fair Value Measurements at December 31, 2020 Using

Quoted Prices in

Significant Other

Significant

Active Markets for

Observable

Unobservable

Identical Assets

Inputs

Inputs

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

Assets:

  

  

  

  

Equity securities

$

$

$

1,693

$

1,693

Liabilities:

Contingent consideration

$

$

$

75

$

75

Summary of Changes in Estimated Fair Value of Level 3 Financial Assets

The following table reconciles the beginning and ending balance for the Level 3 financial assets recurring fair value measurement for the year ended December 31, 2021 (in thousands):

Year Ended

December 31, 2021

Balance at December 31, 2019

$

681

Change in fair value

1,012

Balance at December 31, 2020

$

1,693

Change in fair value

 

617

Transfer out of Level 3 as of June 30, 2021

(2,310)

Balance at December 31, 2021

$

Schedule of Estimated Fair Value of Equity Securities Assumptions

December 31, 

December 31, 

2021

2020

 

Closing common stock price

$

4.78

$

11.99

Tranche 1:

Discount for lack of marketability

 

N/A(1)

%  

12

%

Estimated time to liquidity of shares

 

0.25 year

Tranche 2:

Discount for lack of marketability

N/A(1)

%

14

%

Estimated time to liquidity of shares

0.67 years

(1) Due to sufficient and consistent trading volume, the equity investment will be measured at the closing price per the Nasdaq Stock Market. The assumptions related to the unobservable inputs identified above, and any changes in those assumptions thereto, will no longer be considered in determining the fair value of the equity securities.