Fair value

3 Months Ended

Mar. 31, 2023

Fair value

Fair value

11. Fair value

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, certain accrued expenses, and contingent consideration. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximated their respective fair value due to the short-term nature and maturity of these instruments.

As of March 31, 2023, the Company had a contingent consideration liability of $1.7 million related to the acquisition of Avidea Technologies, Inc. The fair value of the contingent consideration is a Level 3 valuation with the significant unobservable inputs being the probability of success of achievement of the milestone and the expected date of the milestone achievement. Significant judgment is employed in determining the appropriateness of certain of these inputs.

The following table summarizes changes to our financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy (in thousands):

	Three months ended
	March 31,
	2023		2022
Beginning balance	$	1,711	$	2,371
Change in fair value recognized in net (loss)/ income		(1)		143
Foreign exchange loss		(37)		—
Foreign exchange translation recognized in other comprehensive loss		37		(70)
Ending balance	$	1,710	$	2,444