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Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Financial Accounting Standards Board’s authoritative guidance for fair value measurements establishes a three-level hierarchy based upon the inputs to the valuation model of an asset or liability. Assets and liabilities presented at fair value in our Consolidated Balance Sheets are generally categorized as follows:
Level 1:Quoted prices in active markets for identical assets or liabilities.
Level 2:Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Such assets and liabilities may have values determined using pricing models, discounted cash flow methodologies, or similar techniques, and include instruments for which the determination of fair value requires significant management judgment or estimation.
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of assets and liabilities and their placement within the fair value hierarchy levels. The following table sets forth by level within the fair value hierarchy our assets and liabilities that were recorded at fair value as of June 30, 2025 and December 31, 2024 (in thousands):
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair Value as of June 30, 2025
Level 1Level 2Level 3Total
Assets (Liabilities):
Equity securities$1,763 $— $— $1,763 
Lumber derivative contracts 13 — — 13 
Investment in Enservco191 — 73 264 
BLL acquisition related earn-out— — (167)(167)
Total$1,967 $— $(94)$1,873 
Fair Value as of December 31, 2024
Level 1Level 2Level 3Total
Assets (Liabilities):
Equity securities$3,368 $— $— $3,368 
Lumber derivative contracts (7)— — (7)
Investment in Enservco496 — 259 755 
BLL acquisition related earn-out— — (152)(152)
Total$3,857 $— $107 $3,964 
The table below presents the reconciliation for all Level 3 assets for the three and six months ended June 30, 2025. See Note 4. “Supplementary Balance sheet Information” for the discussion of inputs to Level 3 assets.
Level 3 RollforwardEnservco Preferred stockEnservco Call OptionTotal
Beginning Balance December 31,2024)$191 $68 $259 
Unrealized gain (loss)(59)(39)(98)
Ending Balance March 31, 2025$132 $29 $161 
Unrealized gain (loss)(59)(29)(88)
Ending Balance June 30, 2025$73 $— $73 
The tables below present reconciliations for all Level 3 liabilities for the three and six months ended June 30, 2025 and June 30, 2024, respectively. The Level 3 liabilities consist of an earnout liability associated with the Big Lake Lumber (“BLL”) acquisition in 2023.
20252024
Beginning Balance December 31$152 $169 
Change in fair value of earn-out— — 
Balance as at March 31$152 $169 
Change in fair value of earn-out15— 
Balance as at June 30$167 $169 
Equity Securities
The investment in equity securities consists of common stock of publicly traded companies. The fair value of these securities is based on the closing prices observed on June 30, 2025 and December 31, 2024, respectively, and recorded in “Investments in equity securities” in the condensed Consolidated Balance Sheets.
Gains and losses from investments in equity securities are recorded in other income (expense) in the condensed Consolidated Statements of Operations and included the following for the three and six months ended June 30, 2025 and 2024, respectively:
Three Months Ended June 30,
20252024
Unrealized gain (loss) on equity securities$44 $(303)
Realized gain (loss) on equity securities5,553 — 
Total gain (loss) on equity securities$5,597 $(303)

Six Months Ended June 30,
20252024
Unrealized gain (loss) on equity securities$(180)$(75)
Realized gain (loss) on equity securities5,554 34
Total gain (loss) on equity securities$5,374 $(41)
During the quarter ended June 30, 2025, we recognized a $5.5 million realized gain primarily related to the Servotronics tender offer. As of June 30, 2025 we have recorded a $6.7 million receivable due from broker associated with this tender offer.
Lumber Derivative Contracts
We may enter into lumber derivative contracts in order to protect our gross profit margins from fluctuations caused by lumber price volatility. Such contracts, which are generally entered into to protect the gross margins on our wall panel contracts at EdgeBuilder and Glenbrook Building Supply, Inc. (“Glenbrook” and referred to jointly with EdgeBuilder as “EBGL”), are recorded within current assets or liabilities in the condensed Consolidated Balance Sheets. As of June 30, 2025, we had a net long (buying) position of 550,000 board feet under twenty lumber derivatives contracts. As of December 31, 2024, we had a net long (buying) position of 467,500 board feet under seventeen lumber derivatives contracts.
Gains and losses from lumber derivative contracts are recorded in the cost of goods sold of the condensed Consolidated Statements of Operations and included the following for the three and six months ended June 30, 2025 and 2024, respectively:
Three Months Ended June 30,
20252024
Unrealized gain (loss) on lumber derivatives$44 $1 
Realized gain (loss) on lumber derivatives42 (62)
Total gain (loss) on lumber derivatives$86 $(61)
Six Months Ended June 30,
20252024
Unrealized gain (loss) on lumber derivatives$20 $(19)
Realized gain (loss) on lumber derivatives(43)(46)
Total gain (loss) on lumber derivatives$(23)$(65)