Fair value measurement

12 Months Ended

Dec. 31, 2022

15. Fair value measurement

The following table lists the Company’s financial assets and liabilities by level within the fair value hierarchy. The Company’s assessment of the significance of an input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

During the twelve months ended December 31, 2022, there were no changes in the fair value methodology of the financial instruments and, therefore, there were no transfers between levels.

	Year Ended December 31, 2022
		Level 1		Level 2			Fair Value			Book Value
Liabilities
Derivative financial instruments ⁽ⁱ⁾		-		(3,562,500	)		(3,562,500	)		(3,562,500	)
	$	-	$	(3,562,500	)	$	(3,562,500	)	$	(3,562,500	)

(i)	Refers to the Private Placement Warrants.

	Year Ended December 31, 2021
		Level 1		Level 2			Fair Value			Book Value
Liabilities
Derivative financial instruments		-		(32,226	)		(32,226	)		(32,226	)
	$	-	$	(32,226	)	$	(32,226	)	$	(32,226	)

The fair value of the Private Placement Warrants and the New Warrants with an exercise price of $11.50 was estimated based on the Eve’s Public Warrants fair value on May 9, 2022, since they have similar key terms.

The change in the fair value of the Private Placement Warrants from the Closing date until December 31, 2022:

	Private Placement Warrants
Balance as of December 31, 2021	$	-
Change in fair value		-
Balance as of May 9, 2022	$	13,110,000
Change in fair value		(9,547,500	)
Balance as of December 31, 2022	$	3,562,500

The Public Warrants were remeasured at fair value as of the Closing date and reclassified to equity.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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