Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Summary of Liabilities Measured at Fair Value on a Recurring Basis on the Company's Consolidated Balance Sheets

The following table summarizes the valuation of liabilities measured at

ir value on a recurring basis on the Company’s Consolidated Balance Sheets:


	Level 1		Level 2		Level 3

December 31, 2023
Liabilities:
Contingent consideration obligations (1)	$	—	$	—	$	—

Fair value of financial instruments	$	—	$	—	$	—



December 31, 2024
Liabilities:
Contingent consideration obligations (1)	$	—	$	—	$	2,700

Fair value of financial instruments	$	—	$	—	$	2,700

(1)

The fair value measurement of the contingent consideration obligations arising from acquisitions is based upon Level 3 unobservable inputs including, in part, the estimate of future cash flows based upon the likelihood of achieving the various criteria triggering the payment of the obligations. The fair values of the liabilities associated with contingent consideration obligations were derived using the income approach with unobservable inputs, which included future earnings forecasts for which there is no market data. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values. During the year ended December 31, 2024 there were no material gains or losses related to liabilities classified as Level 3 as a result of fair value adjustments. Changes in the fair value of the contingent consideration obligations are recorded within Selling, general and administrative expenses.

Summary of Reconciliation of the Activity for the Level 3 Contingent Consideration Fair Value Measurements

The following table provides a reconciliation of the activity for the Level 3 contingent consideration fair value measurements during the years ended December 31, 2023 and 2024:



Balance at December 31, 2022	$	451
Payments		(451	)

Balance at December 31, 2023		—
Current year acquisitions		2,700

Balance at December 31, 2024	$	2,700

Summary of Outlines the Activity for the Allowance for Credit Losses

The

table below outlines the activity for the allowance for credit losses for the years ended December 31, 2023 and 2024:



Balance at December 31, 2022	$	5,371
Additions		5,718
Deductions		(4,918	)

Balance at December 31, 2023		6,171
Additions		8,388
Deductions		(5,691	)

Balance at December 31, 2024	$	8,868