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Note 16 - Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Financial Instruments Disclosure [Text Block]

16. Fair Value Measurements

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.

		*Year Ended December 31,*
		*2023*
		(in thousands)
		Level 1				Level 2				Level 3				Total
Assets
Cash Equivalents:
Certificates of deposit ⁽¹⁾		$	—			$	1,533			$	—			$	1,533
Money market funds			—				4,423				—				4,423
U.S. treasury bills			—				171,841				—				171,841
Short term investments:
Certificates of deposit⁽¹⁾			—				3,721				—				3,721
Other assets:
Notes receivables ⁽³⁾			—				—				1,840				1,840
Total		$	—			$	181,518			$	1,840			$	183,358
Liabilities:
Earn-out shares liabilities:
Earn-out shares⁽²⁾		$	—			$	—			$	18,346			$	18,346
Other non-current liabilities:
Warrant liabilities⁽²⁾			—				533				—				533
Total		$	—			$	533			$	18,346			$	18,879

AvePoint, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (continued)

		*Year Ended 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			—				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 ⁽²⁾		$	—			$	—			$	6,631			$	6,631
Other non-current liabilities:
Warrant liabilities ⁽²⁾			—				227				—				227
Total		$	—			$	227			$	6,631			$	6,858

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

⁽²⁾ Refer to “Note 13 - Company Earn-Out and Warrant Liabilities” for further details.

⁽³⁾ Other assets include yielding loan notes to Lumens Capital Partners, Ltd. (“LCP”) with a total commitment of up to $5.0 million and maturities of greater than twelve months. See “Note 21 - Subsequent Events” for more information. The notes bear interest at an annual rate equal to 8%. During the years ended December 31, 2023 and 2022, new notes receivables issued were $1.3 million and $0.5 million, respectively. Fair values are based on discounted future cash flows using current interest rates offered for similar notes to third parties with similar credit ratings for the same remaining maturities.

AvePoint, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (continued)

The following table summarizes the Company’s available-for-sale securities measured at fair value as of December 31, 2023.

		*Year Ended December 31,*
		*2023*
		(in thousands)
		Amortized Cost				Fair Value				Gross unrealized gains				Gross unrealized losses
U.S. treasury bills		$	171,815			$	171,841			$	26			$	—
Total		$	171,815			$	171,841			$	26			$	—

The contractual maturity of the available-for-sale securities held as of December 31, 2023 was within one year.

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 year ended December 31, 2023.

		*Year Ended December 31,*
		*2023*
		(in thousands)
Opening balance		$	6,631
Total gains or losses from the period
Included in other (expense) income, net			11,148
Reclass from Earnout-RSU			567
Closing balance		$	18,346

AvePoint, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (continued)