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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
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:

 

May 9, 2022

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

 

 

 

$

 

 

 

$

 

36,140,000

 

 

$

 

36,140,000

 

 

December 31, 2022

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

 

 

 

$

 

 

 

$

 

37,000,000

 

 

$

 

37,000,000

 

Total

 

$

 

 

 

$

 

 

 

$

 

37,000,000

 

 

$

 

37,000,000

 

Schedule of fair value of the contingent consideration remeasured

The fair value of the contingent consideration was remeasured at December 31, 2022. The fair value of the financial instruments as of December 31, 2022 is as follows:

 

 

 

 

 

 

 

 

 

 

 

Contingent Consideration

 

Balance at December 31, 2021

 

$

 

Initial estimate (Level 3)

 

 

36,140,000

 

Loss in fair value of contingent consideration

 

 

3,298,230

 

Payments

 

 

(2,438,230

)

Balance at December 31, 2022 (Level 3)

 

$

37,000,000

 

Schedule of fair value measurements of contingent consideration recurring include significant unobservable inputs

The recurring Level 3 fair value measurements of contingent consideration for which a liability is recorded include the following significant unobservable inputs:

 

 

 

 

 

As of December 31, 2022

 

As of May 9, 2022

Valuation Methodology

Significant Unobservable Input

Weighted Average (range, if applicable)

Weighted Average (range, if applicable)

Contingent Consideration

 

Probability weighted income approach

 

Discount rate

 

12.0%

 

11.7%

 

 

 

 

Revenue Required Metric Risk Premium rate

 

20.9%

 

20.8%