Fair Value Measurements and Fair Value of Instruments

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements and Fair Value of Instruments

NOTE 3. FAIR VALUE MEASUREMENTS AND FAIR VALUE OF INSTRUMENTS

The following tables display the carrying values and fair values of financial instruments.

		As of
		June 30, 2024						December 31, 2023
Assets on the Consolidated Balance Sheets		Carrying Value		Unrealized Losses		Fair Value		Carrying Value		Unrealized Losses		Fair Value
Cash and cash equivalents	Level 1	$	187,435	$	-	$	187,435	$	215,214	$	-	$	215,214
Restricted cash	Level 1		247		-		247		495		-		495
Total		$	187,682	$	-	$	187,682	$	215,709	$	-	$	215,709

The Company reports the current portion of restricted cash as a separate item in the Consolidated Balance Sheets and the non-current portion is a component of other long-term assets in the Consolidated Balance Sheets.

		As of
		June 30, 2024				December 31, 2023
Liabilities on the Consolidated Balance Sheets		Carrying Value		Fair Value		Carrying Value		Fair Value
Acquisition earnout payment	Level 3	$	2,860	$	2,860	$	4,250	$	4,250
Total liabilities		$	2,860	$	2,860	$	4,250	$	4,250

In December 2021, the Company purchased all of the outstanding equity interests of iQuue, LLC ("iQuue"). The Company reports the current portion of the acquisition earnout payment as a component of other current liabilities in the Consolidated Balance Sheets and the non-current portion is a component of other long-term liabilities on the Consolidated Balance Sheets. Earnout payments related to acquisitions are measured at fair value each reporting period using Level 3 unobservable inputs. The changes in the fair value of the Company's Level 3 liabilities for the six months ended June 30, 2024 and year ended December 31, 2023 are as follows.

	As of
	June 30, 2024			December 31, 2023
Balance at beginning of period	$	4,250		$	5,540
Payment of earnout in connection with the iQuue acquisition		(1,530	)		(1,702	)
Change in fair value of earnout		140			412
Balance at end of period	$	2,860		$	4,250

The fair value of the earnout payment is measured on a recurring basis at each reporting date. The following inputs and assumptions were used in the Monte Carlo simulation model to estimate the fair value of the earnout payment as of June 30, 2024 and December 31, 2023. During the six months ended June 30, 2024, the Company determined there was a $140 increase in the fair value of the earnout, primarily due to a decreased payment term as the Company is six months closer to the payout date. During the six months ended June 30, 2023, there was a $306 increase in the fair value of the earnout, primarily due to a decreased payment term as the Company approached the payment date. The Company recorded these adjustments in general and administrative expense on the Consolidated Statement of Operations and Comprehensive Loss. The following table sets forth the weighted-average assumptions used to estimate the fair value of the earnout payment as of June 30, 2024 and December 31, 2023.

	As of
	June 30, 2024			December 31, 2023
Discount Rate		12.10	%		10.50	%
Volatility		40.00	%		42.00	%