XML 32 R21.htm IDEA: XBRL DOCUMENT

Note 14 - Financial Instruments

9 Months Ended

Sep. 30, 2024

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, 2024*
		(in thousands)
		Level 1				Level 2				Level 3				Total
Assets
Cash Equivalents:
Certificates of deposit		$	—			$	1,565			$	—			$	1,565
Money market funds			—				4,211				—				4,211
U.S. treasury bills			—				179,051				—				179,051
Short term investments:
Certificates of deposit			—				171				—				171
Other assets:
Certificates of deposit			—				38				—				38
Notes receivables ⁽¹⁾			—				—				3,692				3,692
Total		$	—			$	185,036			$	3,692			$	188,728
Liabilities:
Earn-out shares liabilities:
Earn-out shares ⁽²⁾		$	—			$	—			$	29,941			$	29,941
Other non-current liabilities:
Warrant liabilities ⁽²⁾			—				871				—				871
Total		$	—			$	871			$	29,941			$	30,812

		*December 31, 2023*
		(in thousands)
		Level 1				Level 2				Level 3				Total
Assets
Cash Equivalents:
Certificates of deposit ⁽³⁾		$	—			$	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⁽³⁾			—				3,721				—				3,721
Other assets:
Notes receivables⁽¹⁾			—				—				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

⁽¹⁾During 2023, the Company extended a credit facility to LCP with a total commitment of up to $5.0 million and maturities of greater than twelve months (the “LCP Notes Receivable”). Refer to “Note 12 — Growth Equity Fund” for further details. The LCP Notes Receivable bear interest at an annual rate equal to 8%. As of September 30, 2024 and December 31, 2023, the LCP Notes Receivable in the amounts of $3.5 million and $1.8 million, respectively, were included in other assets within the condensed consolidated balance sheets. 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.

⁽²⁾ Refer to “Note 10 — Earn-Out and Warrant Liabilities” for further details.

⁽³⁾ The majority of certificates of deposit are foreign deposits.

The following tables summarize the Company’s available-for-sale securities measured at fair value as of September 30, 2024 and December 31, 2023.

		*September 30, 2024*
		(in thousands)
		Amortized Cost				Fair Value				Gross unrealized losses
U.S. treasury bills		$	179,089			$	179,051			$	(38	)
Total		$	179,089			$	179,051			$	(38	)

		December 31, 2023
		(in thousands)
		Amortized Cost				Fair Value				Gross unrealized gains
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 September 30, 2024 and 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.

		*Nine Months Ended September 30,*
		*2024*
		(in thousands)
Opening balance		$	18,346
Total gains or losses from the period
Included in other expense, net			11,217
Reclass from Earnout-RSU			378
Closing balance		$	29,941