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FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The accounting guidance on fair value measurements clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices for identical assets in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.
The short-term nature of the Company’s cash and cash equivalents, accounts receivable, debt and current liabilities causes each of their carrying values to approximate fair value for all periods presented. Cash equivalents classified as Level 1 instruments was $66.5 million for December 31, 2024 and $139.0 million for 2023.

The following table presents the Company’s fair value hierarchy for financial liabilities as of December 31, 2024 (in thousands):
Level 1Level 2Level 3Total
Liabilities:
Earnout liability$— $— $10,208 $10,208 
Total$— $— $10,208 $10,208 

The following table presents the Company’s fair value hierarchy for financial liabilities as of December 31, 2023:
Level 1Level 2Level 3Total
Liabilities:
Earnout liability$— $— $46,852 $46,852 
Total$— $— $46,852 $46,852 
The Company did not transfer any investments between level 1 and level 2 of the fair value hierarchy in the years ended December 31, 2024 and 2023.
The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3). See Note 11 - “Earnout Liability” for more details. (In thousands):
Fair Value Measurements Using Significant Unobservable Inputs
Balance at December 31, 2023$46,852 
Fair value adjustment(36,644)
Balance at December 31, 2024$10,208