Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.22.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2022
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 June 30, 2022
Level 1 Level 2 Level 3 Total
(In thousands)
Assets
Money market funds (i) $ 42,869  $ —  $ —  $ 42,869 
U.S. Treasury securities (ii) 52,704  —  —  52,704 
Corporate bonds (ii) —  45,583  —  45,583 
Total financial assets $ 95,573  $ 45,583  $ —  $ 141,156 
Liabilities
Common stock warrant liabilities (Public) (iii) $ 2,673  $ —  $ —  $ 2,673 
Common stock warrant liabilities (Private Placement) (iii) —  —  1,380  1,380 
Contingent earnout liabilities —  —  12,493  12,493 
Total financial liabilities $ 2,673  $ —  $ 13,873  $ 16,546 
Fair Value Measured as of December 31, 2021
Level 1 Level 2 Level 3 Total
(In thousands)
Assets
Money market funds (i) $ 207,471  $ —  $ —  $ 207,471 
U.S. Treasury securities (ii) 8,141  —  —  8,141 
Corporate bonds (ii) —  7,342  —  7,342 
Total financial assets $ 215,612  $ 7,342  $ —  $ 222,954 
Liabilities
Common stock warrant liabilities (Public) (iii) $ 14,318  $ —  $ —  $ 14,318 
Common stock warrant liabilities (Private Placement) (iii) —  —  7,387  7,387 
Contingent earnout liabilities —  —  111,487  111,487 
Total financial liabilities $ 14,318  $ —  $ 118,874  $ 133,192 
(i)     Included in cash and cash equivalents on the condensed consolidated balance sheets.
(ii)     Included in short-term investments on the condensed consolidated balance sheets.
(iii)    Included in warrant liabilities on the condensed consolidated balance sheets.
The money market funds are classified as cash and cash equivalents on the condensed consolidated balance sheets. 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 June 30, 2022 and December 31, 2021. Realized gains and losses, net of tax, were not material for any period presented.
As of June 30, 2022 and December 31, 2021, the Company had no investments with a contractual maturity of greater than one year.
The following table presents a rollforward of the Level 3 assets and liabilities measured at fair value on a recurring basis:
Redeemable convertible preferred stock warrant liabilities Private placement warrant liabilities Contingent earnout liabilities
Three Months Ended June 30, 2022 (In thousands)
Fair value as of March 31, 2022 $ —  $ 9,434  $ 142,719 
Change in fair value (8,054) (130,226)
Fair value as of June 30, 2022 $ —  $ 1,380  $ 12,493 
Six months ended June 30, 2022
Fair value as of January 1, 2022 $ —  $ 7,387  $ 111,488 
Change in fair value —  (6,007) (98,995)
Fair value as of June 30, 2022 $ —  $ 1,380  $ 12,493 
Three Months Ended June 30, 2021
Fair value as of March 31, 2021 $ 1,695  $ —  $ — 
Change in fair value 227  —  — 
Fair value as of June 30, 2021 $ 1,922  $ —  $ — 
Six months ended June 30, 2021
Fair value as of January 1, 2021 $ 181  $ —  $ — 
Change in fair value 1,741  —  — 
Fair value as of June 30, 2021 $ 1,922  $ —  $ — 
The fair value of the private placement warrant liability, redeemable convertible preferred stock warrant liability and contingent earnout liability 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, the Company used the Binomial-Lattice Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date. In determining the fair value of the redeemable convertible preferred stock warrant liability, 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). In determining the fair value of the contingent earnout liability, the Company used the Monte Carlo simulation valuation model using a distribution of potential outcomes on a monthly basis over the applicable earnout period using the most reliable information available (see Note 10, Equity Instruments).