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Fair Value Measurements
 12 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements

5. Fair Value Measurements

The following tables present the fair value of our financial instruments:

 

 

 

June 30, 2020

 

 

June 30, 2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

1,668

 

 

$

—

 

 

$

—

 

 

$

1,668

 

 

$

11,206

 

 

$

—

 

 

$

—

 

 

$

11,206

 

Total

 

$

1,668

 

 

$

—

 

 

$

—

 

 

$

1,668

 

 

$

11,206

 

 

$

—

 

 

$

—

 

 

$

11,206

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Post-closing payments related to acquisitions

 

$

—

 

 

$

9,045

 

 

$

—

 

 

$

9,045

 

 

$

—

 

 

$

16,259

 

 

$

—

 

 

$

16,259

 

Contingent consideration related to acquisitions

 

 

—

 

 

 

—

 

 

 

3,170

 

 

 

3,170

 

 

 

—

 

 

 

—

 

 

 

5,058

 

 

 

5,058

 

Total

 

$

—

 

 

$

9,045

 

 

$

3,170

 

 

$

12,215

 

 

$

—

 

 

$

16,259

 

 

$

5,058

 

 

$

21,317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported as:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

11,206

 

Other Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

$

6,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

8,967

 

Noncurrent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,350

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

$

12,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

21,317

 

 

There were no transfers between Level 1 and Level 2 during the periods presented.

Cash Equivalents

The valuation technique used to measure the fair value of money market funds included using quoted prices in active markets for identical assets.

Post-Closing Payments Related to Acquisitions

The post-closing payments are future payments related to the Company’s acquisitions of AmOne Corp (“AmOne”), CloudControlMedia, LLC (“CCM”) and MyBankTracker.com, LLC (“MBT”). As the fair value of the Company’s post-closing payments was determined based on installments stipulated in the terms of the acquisition agreements and discount rates observable in the market, the post-closing payments are classified as Level 2 within the fair value hierarchy. See Note 6, Acquisitions, for further details related to the acquisitions.

Contingent Consideration Related to Acquisitions

The contingent consideration consists of estimated future payments related to the Company’s acquisition of CCM and MBT. The fair value of the contingent consideration is determined using the real options technique which incorporates various estimates, including projected net revenue and gross margin that is subject to the contingent consideration payment, a volatility factor applied to net revenue and gross margin based on year-on-year growth in net revenue and gross margin of comparable companies and discount rates. As certain of these inputs are not observable in the market, the contingent consideration is classified as a Level 3 instrument. See Note 6, Acquisitions, for further details related to the acquisitions.

The following table represents the change in the contingent consideration (in thousands):

 

 

 

Level 3

 

Balance as of June 30, 2018

 

$

—

 

Additions related to acquisitions (initial measurement)

 

 

5,058

 

Balance as of June 30, 2019

 

 

5,058

 

Change in fair value during the period

 

 

—

 

Payments made during the period

 

 

(1,888

)

Balance as of June 30, 2020

 

$

3,170