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Fair Value Measurements
3 Months Ended
Mar. 31, 2020
Fair Value Measurements  
Fair Value Measurements

15. Fair Value

 

As of each of the periods ended March 31, 2020 and 2019, we did not have any Level 1 financial assets measured at fair value. In May 2017, we recorded a contingent consideration liability as a result of the acquisition of Deny Designs for $2.8 million. The minimum and maximum amount payable for each of the three years is $0.3 million and $1.2 million, respectively, based upon satisfaction of the contingent criteria related to the ongoing development of new products for sale, as specified in the purchase agreement. Such amounts are adjusted at each subsequent period based on probability of achievement until settlement of such liability. Adjustments to the liability will be recorded to income or expense in our condensed statement of operations. The estimated amount payable upon the third anniversary is included in accrued expenses and other current liabilities in our condensed consolidated balance sheet. The fair value adjustment to the liability for the three months ended March 31, 2020 and 2019 was not material. We classify our contingent consideration resulting from acquisitions within Level 3, as the valuation inputs are based on unobservable inputs. Of the $0.8 million held back as a result of the Well+Good acquisition, in May and June 2019 we paid a total of $0.6 million to the sellers, net of $0.2 million included as a working capital adjustment pursuant to the purchase agreement.