Fair Value Measurements

9 Months Ended

Sep. 30, 2021

As of September 30, 2021 and December 31, 2020, the recorded values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of the instruments.

Cash and cash equivalents held by the Company as of September 30, 2021 and December 31, 2020 were $540.3 million and $262.7 million, respectively, and were comprised of cash on hand and money market funds classified within Level 1 of the fair value hierarchy.

Public and Private Common Stock Warrants


	Fair Value Measurements as of September 30, 2021
Liabilities included in:	Level 1		Level 2		Level 3		Total

Private Common Stock Warrants	—		—		12,318		12,318
Total fair value	$	—	$	—	$	12,318	$	12,318


	Fair Value Measurements as of December 31, 2020
Liabilities included in:	Level 1		Level 2		Level 3		Total
Public Common Stock Warrants	$	124,545	$	—	$	—	$	124,545
Private Common Stock Warrants	—		—		53,687		53,687
Total fair value	$	124,545	$	—	$	53,687	$	178,232

The Public Warrants were classified within Level 1 as they are publicly traded and had an observable market price in an active market. The Private Warrants were classified within Level 3 as they were valued based on a BSM pricing model, which involved the use of certain unobservable inputs, such as expected volatility estimated based on the average historical stock price volatility of comparable companies. As of December 31, 2020, the fair value of the Private Warrants liability was $53.7 million. During the three and nine months ended September 30, 2021, the fair value of the Private Warrants liability decreased by $48.4 million and $41.4 million, respectively. As of September 30, 2021, the fair value of the Private Warrants liability was $12.3 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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