Marketable Securities and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Summary of Investment Securities Classified as Available-for-sale

The Company’s investments in cash equivalents and marketable securities at December 31, 2023 and December 31, 2022 is as follows:

	December 31, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash equivalents:
U.S. Treasury Bills	$	22,778	$	5	$	—	$	22,783
Marketable securities:
Short-term U.S. Treasuries	49,501		—		(134)		49,367
Total available for sale securities	$	72,279	$	5	$	(134)	$	72,150

	December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash equivalents:
U.S. Treasury Bills	$	2,573	$	—	$	—	$	2,573
Marketable securities:
Short-term U.S. Treasuries	59,876		6		(86)		59,796
Long-term U.S. Treasuries	58,652		—		(298)		58,354
Total available for sale securities	$	121,101	$	6	$	(384)	$	120,723

The contractual maturities of the Company's investments in cash equivalents and marketable securities as of December 31, 2023 and December 31, 2022 is as follows:

December 31, 2023 (in thousands)	Due in One Year or less		Due After One Year through Five Years		Due After Five Years		Total
Cash equivalents:
U.S. Treasury Bills	$	22,783	$	—	$	—	$	22,783
Marketable securities:
Short-term U.S. Treasuries	49,367		—		—		49,367
Total available for sale securities	$	72,150	$	—	$	—	$	72,150

December 31, 2022 (in thousands)	Due in One Year or less		Due After One Year through Five Years		Due After Five Years		Total
Cash equivalents:
U.S. Treasury Bills	$	2,573	$	—	$	—	$	2,573
Marketable securities:
Short-term U.S. Treasuries	59,796		—		—		59,796
Long-term U.S. Treasuries	10,523		47,831		—		58,354
Total available for sale securities	$	72,892	$	47,831	$	—	$	120,723

Summary of Carrying Amounts of Financial Instruments

The following tables present the carrying amounts of the Company’s financial instruments at December 31, 2023 and December 31, 2022:

	December 31, 2023
(in thousands)	Total		Level 1		Level 2		Level 3
Financial assets:
Cash equivalents	$	22,783	$	—	$	22,783	$	—
Marketable securities	49,367		—		49,367		—
Financial liabilities:
Derivative warrant liabilities	$	636	$	—	$	636	$	—
Earnout liabilities	—		—		—		—
Conversion option derivative liabilities	3,082		—		—		3,082
Contingent consideration liability	1,944		—		1,944		—
Non-recurring fair value measurement
Goodwill	$	7,230	—		—		$	7,230

As of December 31, 2023, derivative warrant liabilities of $636 were transferred from a Level 3 to a Level 2 financial instrument as a result of the valuation being based on the market price of our public warrants, which management considers to

be a similar and comparable instrument, as compared to the previous valuation which was based on the Binomial Lattice Model. There were no other transfers between fair value measurement levels during the years ended December 31, 2023 and 2022.

	December 31, 2022
(in thousands)	Total		Level 1		Level 2		Level 3
Financial assets:
Cash equivalents	$	2,573	$	—	$	2,573	—
Marketable securities	59,796		—		59,796		—
Non-current investments	58,354		—		58,354		—
Financial liabilities:
Derivative warrant liabilities	$	350	$	—	$	—	$	350
Earnout liabilities	803		—		—		803
Conversion option derivative liabilities	3,960		—		—		3,960
Non-recurring fair value measurement
Goodwill	$	21,418	$	—	$	—	$	21,418

Summary of Changes in Fair Value of Level 3 Warrant Liabilities

The following table presents information about the Company’s Level 3 liabilities that are measured at fair value on a recurring basis at December 31, 2023:

(in thousands)	Earnout Liability		Conversion Option Derivative Liability
Balance at December 31, 2021	$	60,018	$	—
Conversion option derivative liability acquired (See Note 11 for detail)	—		28,160
Decrease in fair value included in other expense	(59,215)		(24,200)
Balance at December 31, 2022	$	803	$	3,960
Decrease in fair value included in other expense	(803)		(878)
Balance at December 31, 2023	$	—	$	3,082

Summary of Assumptions used in the Valuation of Derivative Liabilities

A summary of the level 3 fair value measurements inputs used in the valuations is as follows:

	December 31, 2023
		First Tranche Earnout			Second Tranche Earnout			Convertible Note Warrant Derivative Liability			Conversion Option Derivative Liability
Unit price		$	2.04		$	2.04		$	2.04		$	2.04
Term (in years)		0.87			0.87			3.61			3.61
Volatility		49.40		%	49.40		%	58.60		%	58.60		%
Risk-free rate		4.90		%	4.90		%	3.90		%	3.90		%
Dividend yield		—			—			—			—
Cost of equity		16.90		%	16.90		%	—			—

	December 31, 2022
	Derivative Warrant Liability			First Tranche Earnout			Second Tranche Earnout			Convertible Note Warrant Derivative Liability			Conversion Option Derivative Liability
Unit price	$	1.65		$	1.65		$	1.65		$	1.65		$	1.65
Term (in years)	3.87			1.54			1.55			4.61			4.61
Volatility	71.80		%	70.00		%	70.00		%	40.00		%	40.00		%
Risk-free rate	4.08		%	4.45		%	4.45		%	3.99		%	3.99		%
Dividend yield	—			—			—			—			—
Cost of equity	—			13.60		%	13.60		%	—			—

A summary of the inputs used in the initial measurement of the convertible note warrant and conversion option derivative liabilities is as follows:

	August 9, 2022
	(Initial Measurement)
	Convertible Note Warrant Derivative Liability			Conversion Option Derivative Liability
Unit price	$	6.63		$	6.63
Term (in years)	5.00			5.00
Volatility	42.5		%	42.5		%
Risk-free rate	3.0		%	3.0		%
Dividend yield	—			—
Cost of equity	—			—