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Note 15 - Financial Instruments

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Financial Instruments Disclosure [Text Block]

15. Financial Instruments

Fair value is defined by ASC 820, Fair Value Measurement (“ASC 820”) as the price that would be received upon selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

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Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

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Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

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Level 3 — Unobservable inputs for the asset or liability.

		*September 30, 2022*
		(in thousands)
		Level 1				Level 2				Level 3				Total
Assets
Cash Equivalents:
U.S. treasury bills		$	—			$	185,868			$	—			$	185,868
Certificates of deposit			—				1,632				—				1,632
Short term investments:
Certificates of deposit			—				2,003				—				2,003
Total		$	—			$	189,503			$	—			$	189,503
Liabilities:
Earn-out shares liabilities:
Earn-out shares ⁽¹⁾		$	—			$	—			$	4,074			$	4,074
Other non-current liabilities:
Warrant liabilities ⁽¹⁾			—				247				—				247
Total		$	—			$	247			$	4,074			$	4,321

(1) As a result of the Apex Business Combination on July 1, 2021, the Company recorded Company Earn-Out Shares and private placement warrants as liabilities and measured at fair value each reporting period. The Company measured the Company Earn-Out Shares at fair value determined at Level 3. The Company measured the private placement warrants at fair value determined at Level 2. Refer to “Note 12 — Earn-Out and Warrant Liabilities” for further details.

		*December 31, 2021*
		(in thousands)
		Level 1				Level 2				Level 3				Total
Assets
Cash Equivalents:
U.S. treasury bills		$	—			$	199,999			$	—			$	199,999
Certificates of deposit			—				1,433				—				1,433
Short term investments:
Certificates of deposit			—				2,411				—				2,411
Other assets:
Certificates of deposit			—				285				—				285
Total		$	—			$	204,128			$	—			$	204,128
Liabilities:
Earn-out shares liabilities:
Earn-out shares ⁽¹⁾		$	—			$	—			$	10,012			$	10,012
Other non-current liabilities:
Warrant liabilities ⁽¹⁾			—				458				—				458
Total		$	—			$	458			$	10,012			$	10,470

(1) As a result of the Apex Business Combination on July 1, 2021, the Company recorded Company Earn-Out Shares and private placement warrants as liabilities and measured at fair value each reporting period. The Company measured the Company Earn-Out Shares at fair value determined at Level 3. The Company measured the private placement warrants at fair value determined at Level 2. Refer to “Note 12 — Earn-Out and Warrant Liabilities” for further details.