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Note 14 - Financial Instruments

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Financial Instruments Disclosure [Text Block]

14. 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:

•

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

•

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

•

Level 3 — Unobservable inputs for the asset or liability.

		*September 30, 2023*
		(in thousands)
		Level 1				Level 2				Level 3				Total
Assets
Cash Equivalents:
Certificates of deposit ⁽¹⁾		$	—			$	1,483			$	—			$	1,483
Money market funds⁽²⁾			—				4,108				—				4,108
U.S. treasury bills			—				169,793				—				169,793
Short term investments:
Certificates of deposit ⁽¹⁾			—				3,478				—				3,478
Total		$	—			$	178,862			$	—			$	178,862
Liabilities:
Earn-out shares liabilities:
Earn-out shares ⁽³⁾		$	—			$	—			$	13,822			$	13,822
Other non-current liabilities:
Warrant liabilities⁽³⁾			—				397				—				397
Total		$	—			$	397			$	13,822			$	14,219

		*December 31, 2022*
		(in thousands)
		Level 1				Level 2				Level 3				Total
Assets
Cash Equivalents:
Certificates of deposit ⁽¹⁾		$	—			$	1,693			$	—			$	1,693
Money market funds⁽²⁾			—				188,769				—				188,769
Short term investments:
Certificates of deposit ⁽¹⁾			—				2,620				—				2,620
Other assets:
Certificates of deposit ⁽¹⁾			—				162				—				162
Total		$	—			$	193,244			$	—			$	193,244
Liabilities:
Earn-out shares liabilities:
Earn-out shares ⁽³⁾		$	—			$	—			$	6,631			$	6,631
Other non-current liabilities:
Warrant liabilities ⁽³⁾			—				227				—				227
Total		$	—			$	227			$	6,631			$	6,858

(1) The majority of certificates of deposit are foreign deposits.

(2) Profits on securities for the three and nine months ended September 30, 2023 were $2.2 million and $5.8 million, respectively, and for the three and nine months ended September 30, 2022 were $1.2 million and $1.2 million, respectively.

(3) Refer to “Note 11 — Earn-Out and Warrant Liabilities” for further details.

The following table presents the reconciliation in Level 3 instruments which consisted of earn-out shares liabilities which were measured on a recurring basis for the nine months ended September 30, 2023.

		*Nine Months Ended September 30,*
		*2023*
		(in thousands)
Opening balance		$	6,631
Total gains or losses from the period
Included in (loss) gain on earn-out and warrant liabilities			6,752
Reclass from Earnout-RSU			439
Closing balance		$	13,822