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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis

The following table presents information regarding the Company’s financial liabilities that were measured at fair value on a recurring basis:

 

 

March 31, 2024

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Earnout liability

 

$

 

 

$

 

 

$

54,044

 

 

$

54,044

 

 

 

 

December 31, 2023

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Earnout liability

 

$

 

 

$

 

 

$

41,100

 

 

$

41,100

 

Summary of Significant Inputs Used to Measure Fair Value of Level 3 Earnout Liability

The following table provides the significant inputs used to measure the fair value of the level 3 Earnout liability:

 

 

As of

 

 

 

March 31, 2024

 

 

December 31, 2023

 

Stock price

 

$

5.80

 

 

$

4.94

 

Risk-free rate

 

 

4.3

%

 

 

4.0

%

Volatility

 

 

67.5

%

 

 

65.0

%

Term (in years)

 

 

3.2

 

 

 

3.9

 

 

Changes in Fair Value of Level 3 Financial Instruments

Changes in the fair value of the Company’s Level 3 financial instruments were as follows:

(in thousands)

 

Earnout Liability

 

Fair value as of December 31, 2023

 

$

41,100

 

Fair value of earnout related to acquisitions

 

 

855

 

Loss from change in fair value

 

 

12,089

 

Fair value as of March 31, 2024

 

$

54,044