Fair Value Measurement

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

The following tables summarize the Company's assets and liabilities measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands):

	June 30, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market fund	$	1,502	$	—	$	—	$	1,502
Total cash equivalents	$	1,502	$	—	$	—	$	1,502
Short-term investments:
Commercial paper	$	—	$	21,161	$	—	$	21,161
U.S. treasury securities	—		2,985		—		2,985
U.S. government agency securities	—		9,882		—		9,882
Corporate debt securities	—		3,008		—		3,008
Total short-term investments	$	—	$	37,036	$	—	$	37,036
Total assets measured at fair value	$	1,502	$	37,036	$	—	$	38,538
Liabilities:
Warrant liability	$	—	$	310	$	—	$	310
Earnout liability	—		—		184		184
Total liabilities measured at fair value	$	—	$	310	$	184	$	494

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market fund	$	10,437	$	—	$	—	$	10,437
Total cash equivalents	$	10,437	$	—	$	—	$	10,437
Short-term investments:
U.S. government agency securities	$	—	$	2,493	$	—	$	2,493
Corporate debt securities	—		1,210		—		1,210
Total short-term investments	$	—	$	3,703	$	—	$	3,703
Total assets measured at fair value	$	10,437	$	3,703	$	—	$	14,140
Liabilities:
Warrant liability	$	—	$	440	$	—	$	440
Earnout liability	—		—		920		920
Total liabilities measured at fair value	$	—	$	440	$	920	$	1,360

Cash equivalents consist primarily of money market funds with original maturities of three months or less at the time of purchase, and the carrying amount is a reasonable estimate of fair value. Short-term investments consist of investment securities with original maturities greater than three months but less than twelve months and are included as current assets in the condensed consolidated balance sheets. For short-term investments, the fair value as of June 30, 2023 and December 31, 2022 approximates amortized cost basis.

Because the transfer of Private Placement Warrants to non-permitted transferees would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company determined that the fair value of each Private Placement Warrant is consistent with that of a Public Warrant. Accordingly, the Private Placement Warrants are classified as Level 2 financial instruments under warrant liability.

The value of the earnout liability is classified as Level 3 under the fair value hierarchy because it has been valued based on significant inputs not observable in the market.

Changes in Level 3 liabilities related to earnout liability measured at fair value for the six months ended June 30, 2023 (in thousands):

	Six Months Ended June 30, 2023
Balance as of December 31, 2022	$	920
Gain on change in fair value of earnout liability	(736)
Balance as of June 30, 2023	$	184

The gain on change in the fair value of the earnout liability was shown in the condensed consolidated statement of operations and comprehensive income (loss).