Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value of Financial Instruments

Schedule of fair value inputs

	June 30, 2022			December 31, 2021
Current stock price	$	2.55		$	3.04
Estimated volatility of future stock price		83.76	%		133.13	%
Risk free interest rate		2.83	%		0.55	%
Contractual term		1.41	years		1.90	years

The following table presents quantitative information about the inputs and valuation methodologies used for the Company’s fair value measurements of contingent consideration classified as Level 3 as of June 30, 2022 and December 31, 2021:

	As of June 30, 2022
	Valuation	Significant		Weighted Average
	Methodology	Unobservable Input		(range, if applicable)
Pelican contingent consideration	Probability weighted income approach	Milestone dates		2022-2032
		Discount rate		10.59%
		Probability of occurrence		4.9% to 55%
Elusys contingent consideration:
Revenue earn-out	Discounted cash flow analysis	Timing of expected payments		2024-2035
		Discount rate		26%
		Future revenue projections	$	325.9 million
Contract deferred consideration	Discounted cash flow analysis	Timing of expected payments		2023
		Discount rate		14%
		Future revenue projections	$	7.6 million

	As of December 31, 2021
	Valuation	Significant	Weighted Average
	Methodology	Unobservable Input	(range, if applicable)
Pelican Contingent Consideration	Probability weighted income approach	Milestone dates	2022-2031
		Discount rate	7.51%
		Probability of occurrence	4.9% to 75%

Schedule of fair value of financial instruments measured on a recurring basis

The fair value of financial instruments measured on a recurring basis is as follows:

	As of June 30, 2022
Description	Total		Level 1		Level 2	Level 3
Assets:
Short-term investments	$	59,707,339	$	59,707,339	—		—
Liabilities:
Contingent consideration	$	23,287,630		—	—	$	23,287,630
Warrant liability	$	1,730		—	—	$	1,730

	As of December 31, 2021
Description	Total			Level 1	Level 2	Level 3
Assets:
Short-term investments	$	88,324,922	$	88,324,922	—		—
Liabilities:
Contingent consideration	$	3,342,515		—	—	$	3,342,515
Warrant liability	$	11,020		—	—	$	11,020

Schedule of change in fair value, as determined by Level 3 inputs, for all assets and liabilities using unobservable Level 3 inputs

The following tables summarize the change in fair value, as determined by Level 3 inputs, for all Pelican assets and liabilities using unobservable Level 3 inputs for the six months ended June 30, 2022 and 2021:

	Pelican		Elusys		Total
	Contingent		Contingent		Contingent		Warrant
	Consideration		Consideration		Consideration		Liability
Balance at December 31, 2021	$	3,342,515	$	—	$	3,342,515	$	11,020
Change in fair value		(224,000)		—		(224,000)		(9,290)
Acquisition of Elusys		—		42,953,686		42,953,686		—
Payment of receivable consideration		—		(20,784,571)		(20,784,571)		—
Payment of deferred cash consideration		—		(2,000,000)		(2,000,000)
Balance at June 30, 2022	$	3,118,515	$	20,169,115	$	23,287,630	$	1,730

	Pelican
	Contingent		Warrant
	Consideration		Liability
Balance at December 31, 2020	$	2,912,515	$	33,779
Change in fair value		111,000		4,023
Balance at June 30, 2021	$	3,023,515	$	37,802