Fair Value (Tables)

The following table summarizes the change in fair value, as determined by Level 3 inputs for the contingent consideration liabilities for the three and nine months ended September 30, 2022:


Balance at March 31, 2022	$	3,773
Change in fair value	(454)
Balance at June 30, 2022	$	3,319
Change in fair value	186
Measurement period adjustment (see Note 2)	(125)
Balance at September 30, 2022	$	3,380

Contingent consideration liability, current portion	$	438
Contingent consideration liability, net of current portion	2,942
Balance at September 30, 2022	$	3,380

The following tables present the significant inputs and valuation methodologies used for the Company’s fair value of the contingent consideration liabilities, in addition to EPI Health’s forecasted net sales from the EPI Health legacy products:


	Transition Services Agreement		Sitavig Milestones (Regulatory)
Valuation methodology	Probability-Weighted		Probability-Weighted
Term	0.25		1.34
Payment term	0.5		1.59
Adjusted discount rate	22.30	%	20.66	%


	First Sales Based Legacy Milestone	Wynzora Milestone	Second Sales Based Legacy Milestone	Sitavig Milestones (Commercial)
Valuation methodology	Monte Carlo	Monte Carlo	Monte Carlo	Monte Carlo
Risk-adjusted discount rates (minimum)	7.78%	7.78%	7.78%	8.79%
Risk-adjusted discount rates (maximum)	9.23%	8.61%	9.23%	9.20%
Net sales volatility (per annum)	14.0%	13.0%	14.0%	14.0%
Credit spread (continuous)	18.32%	14.67%	18.32%	17.65%