FAIR VALUE

9 Months Ended

Sep. 30, 2024

FAIR VALUE

FAIR VALUE

NOTE 7 – FAIR VALUE

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Level 1		Level 2		Level 3		Total
U.S. Treasury Securities (included within Customer funds)	$	1,061,214	$	—	$	—	$	1,061,214
Derivative assets (included within Other current assets)
Foreign currency forwards	$	—	$	507	$	—	$	507
Foreign currency net purchased options		—		1		—		1
Total derivative assets	$	—	$	508	$	—	$	508
Total financial assets	$	1,061,214	$	508	$	—	$	1,061,722
Derivative liabilities (included within Other payables)
Foreign currency net purchased options	$	—	$	5	$	—	$	5
Total derivative liabilities	$	—	$	5	$	—	$	5
Skuad acquisition earnout liability	$	—	$	—	$	5,452	$	5,452
Total financial liabilities	$	—	$	5	$	5,452	$	5,457

	December 31, 2023
	Level 1		Level 2		Level 3		Total
Warrant liability	$	8,555	$	—	$	—	$	8,555

NOTE 7 – FAIR VALUE (continued):

The Company’s derivative instruments are valued using pricing models that take into account the contract terms and relevant currency rates.

As of September 30, 2024 and December 31, 2023, the fair values of the Company's cash, cash equivalents, customer funds (other than the portion consisting of available-for-sale debt securities), restricted cash, accounts receivable, capital advance receivables, accounts payable, outstanding operating balances, and short and long-term debt approximated the carrying values of these instruments presented in the Company's consolidated balance sheets because of their nature. The fair value of short and long-term debt, when carrying value does not approximate fair value, is determined using Level 3 unobservable inputs and assumptions by the Company.

In the three months ended September 30, 2024, the Company recognized a liability for contingent consideration related to the Skuad acquisition, and recognized $169 in loss related to the change in the fair value of the liability since the acquisition date, included within General and administrative expenses on the condensed consolidated statements of comprehensive income. Refer to Note 3 above for additional details around valuation.