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FAIR VALUE MEASUREMENTS AND DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 2024
Summary of Carrying Amounts and Estimated Fair Values of the Company's Cash, Restricted Cash, and Long-Term Debt The carrying amounts and estimated fair values of the Company's cash, restricted cash and long-term debt were as follows (in thousands):

 

 

September 30, 2024

 

 

December 31, 2023

 

 

 

Carrying Value

 

 

Estimated Fair Value

 

 

Carrying Value

 

 

Estimated Fair Value

 

Cash

 

$

48,795

 

 

$

48,795

 

 

$

27,704

 

 

$

27,704

 

Restricted cash

 

 

1,198

 

 

 

1,198

 

 

 

1,198

 

 

 

1,198

 

Total cash

 

$

49,993

 

 

$

49,993

 

 

$

28,902

 

 

$

28,902

 

First lien term loan facility (a)

 

$

-

 

 

$

-

 

 

$

159,639

 

 

$

162,560

 

Term loan facility (a)

 

$

100,000

 

 

(b)

 

 

$

-

 

 

$

-

 

(a) The amounts above do not include the impact of the interest rate swap or debt issuance costs.

(b) The Company’s outstanding long-term debt as of September 30, 2024 was recently originated and bears variable interest rates. As a result, the Company believes that the fair value of long-term debt as of September 30, 2024 approximates its carrying amount.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis The following table presents information about the Company’s financial instruments recorded at fair value on a recurring basis (in thousands):

 

 

 

 

Fair Value Measurements at September 30, 2024

 

 

Fair Value Measurements at December 31, 2023

 

Description

 

Balance Sheet Location

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments (1)

 

Other current assets

 

$

385

 

 

$

-

 

 

$

385

 

 

$

-

 

 

$

2,372

 

$

-

 

 

$

2,372

 

 

$

-

 

Total assets

 

 

 

$

385

 

 

$

-

 

 

$

385

 

 

$

-

 

 

$

2,372

 

$

-

 

 

$

2,372

 

 

$

-

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments (1)

 

Other long term liabilities

 

$

460

 

 

$

-

 

 

$

460

 

 

$

-

 

 

$

-

 

$

-

 

 

$

-

 

 

$

-

 

Warrants

 

Warrant liabilities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20,400

 

 

-

 

 

 

20,400

 

 

 

-

 

Total liabilities

 

 

 

$

460

 

 

$

-

 

 

$

460

 

 

$

-

 

 

$

20,400

 

$

-

 

 

$

20,400

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
Consists of an amount attributable to interest rate swap contacts; see "Derivatives" below.
Schedule of Interest Rate Derivatives

The effect of the interest rate swap contracts designated as cash flows hedging instrument on the condensed consolidated financial statements was as follows (in thousands):

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 (Loss) gain recognized in accumulated other comprehensive income (loss)

 

$

(42

)

 

$

240

 

 

$

300

 

 

$

1,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains reclassified from accumulated other comprehensive income (loss) to interest expense

 

$

(855

)

 

$

(936

)

 

$

(2,747

)

 

$

(2,530

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Monte Carlo Model [Member]  
Significant Assumptions used in the Model to Determine Fair Value of Warrants

The fair value of the Public Warrants and 2020 PIPE Warrants are considered a Level 2 valuation and are determined using the Monte Carlo model. The Public Warrants expired on March 19, 2024, with warrants remaining unexercised as of the expiration date cancelled, and there were no amounts outstanding as of September 30, 2024 (See Note 5). The significant assumptions which the Company used in the Monte Carlo model are presented in the table below.

 

 

December 31, 2023

 

 

 

Public Warrants

 

 

2020 PIPE Warrants

 

 Stock price

 

$

14.10

 

 

$

14.10

 

 Strike price

 

$

11.50

 

 

$

5.75

 

 Remaining life (in years)

 

 

0.22

 

 

 

1.45

 

 Volatility

 

 

34

%

 

 

38

%

 Interest rate

 

 

5.36

%

 

 

4.49

%

 Redemption price

 

$

18.00

 

 

$

14.50

 
Black-Sholes Model [Member]  
Significant Assumptions used in the Model to Determine Fair Value of Warrants The significant assumptions which the Company used in the model are presented in the table below.

 

 

 

December 31, 2023

 

 

 

 Stock price

 

$

14.10

 

 

 

 Strike price

 

$

11.50

 

 

 

 Remaining life (in years)

 

 

0.22

 

 

 

 Volatility

 

 

38

%

 

 

 Interest rate

 

 

5.36

%

 

 

 Dividend yield

 

 

0.0

%