Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v3.24.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company’s assets and liabilities that were measured at fair value on a recurring basis were as follows:
Fair Value Measured as of December 31, 2023
Level 1 Level 2 Level 3 Total
(In thousands)
Assets
Money market funds (i) $ 3,422  $ —  $ —  $ 3,422 
Corporate bonds (ii) —  6,621  —  6,621 
Total financial assets $ 3,422  $ 6,621  $ —  $ 10,043 
Liabilities
Common stock warrant liabilities (Public) (iii) $ 258  $ —  $ —  $ 258 
Common stock warrant liabilities (Private Placement) (iii) —  —  127  127 
Common stock warrant liabilities (2022 Private Warrant) (iii) —  —  23  23 
Common stock warrant liabilities (RDO Warrants) (iii) —  —  10,891  10,891 
Common stock warrant liabilities (Placement Agent Warrants) (iii)
 —  —  536  536 
Contingent earnout liabilities —  —  1,456  1,456 
Total financial liabilities $ 258  $ —  $ 13,033  $ 13,291 
Fair Value Measured as of December 31, 2022
Level 1 Level 2 Level 3 Total
(In thousands)
Assets
Money market funds (i) $ 31,728  $ —  $ —  $ 31,728 
U.S. Treasury securities (ii) 24,701  —  —  24,701 
Corporate bonds (ii) —  23,513  —  23,513 
Total financial assets $ 56,429  $ 23,513  $ —  $ 79,942 
Liabilities
Common stock warrant liabilities (Public) (iii) $ 1,748  $ —  $ —  $ 1,748 
Common stock warrant liabilities (Private Placement) (iii) —  —  888  888 
Common stock warrant liabilities (2022 Private Warrant) (iii) —  —  109  109 
Contingent earnout liabilities —  —  17,414  17,414 
Total financial liabilities $ 1,748  $ —  $ 18,411  $ 20,159 
(i)     Included in cash and cash equivalents on the consolidated balance sheets.
(ii)     Included in short-term investments on the consolidated balance sheets.
(iii)    Included in warrant liabilities on the consolidated balance sheets.
For more information regarding the Public Warrants, Private Placement Warrants, the 2022 Private Warrant, the RDO Warrants, the Placement Agent Warrants, and the Contingent earnout liabilities, see Note 10, Equity Instruments.
The aggregate fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of December 31, 2023 and 2022. Realized gains and losses, net of tax, were not material for any of the periods presented.
The following table presents a summary of the changes in the fair value of the Company’s Level 3 financial instruments:
Private placement warrant liabilities 2022 Private Warrant Contingent earnout liabilities
Debt derivatives
 RDO Warrants
Placement Agent Warrants
(In Thousands)
Fair value as of January 1, 2023
 $ 888  $ 109  $ 17,414  $ —  $ —  $ — 
Issuance of instruments
 —  —  —  13,890  10,891  536 
Change in fair value (761) (86) (15,958) (8,485) —  — 
Extinguishment of debt derivatives in connection with debt extinguishment
 —  —  —  (5,405) —  — 
Fair value as of December 31, 2023
 $ 127  $ 23  $ 1,456  $ —  $ 10,891  $ 536 
Fair value as of January 1, 2022
 $ 7,387  $ —  $ 111,487  $ —  $ —  $ — 
Issuance of warrants —  170  —  —  —  — 
Change in fair value (6,499) (61) (94,073) —  —  — 
Fair value as of December 31, 2022
 $ 888  $ 109  $ 17,414  $ —  $ —  $ — 
The fair value of the private placement warrant liability, the 2022 Private Warrant, Contingent earnout liability, Debt derivative, RDO Warrants, and Placement Agent Warrants are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.
In determining the fair value of the Private Placement Warrant liability, Contingent earnout liability, and Debt derivatives, the Company used the Monte Carlo simulation model using a distribution of potential outcomes on a weekly basis over the applicable periods that assumes optimal exercise of the Company’s redemption option at the earliest possible date (see Note 10, Equity Instruments).
In determining the fair value of the 2022 Private Warrant, RDO Warrants, and Placement Agent Warrants, the Company used the Black-Scholes option pricing model to estimate the fair value using unobservable inputs including the expected term, expected volatility, risk-free interest rate and dividend yield (see Note 10, Equity Instruments).