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Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Fair Value of Assets and Liabilities That are Measured at Fair Value on a Recurring Basis

The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by level within the fair value hierarchy are as follows:

 

 

 

June 30, 2022

 

(in thousands)

 

Quoted prices in
active markets

 

 

Significant
other observable
inputs

 

 

Significant
unobservable
inputs

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Cash sweep accounts

 

$

37,864

 

 

$

-

 

 

$

-

 

Public warrants

 

$

653

 

 

$

-

 

 

$

-

 

Private placement warrants

 

$

-

 

 

$

522

 

 

$

-

 

 

 

 

December 31, 2021

 

(in thousands)

 

Quoted prices in
active markets

 

 

Significant
other observable
inputs

 

 

Significant
unobservable
inputs

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Cash sweep and money market accounts

 

$

8,702

 

 

$

-

 

 

$

-

 

Related party derivative liability

 

$

-

 

 

$

-

 

 

$

4,395

 

Legacy Fast Radius warrant liability

 

$

-

 

 

$

-

 

 

$

2,968

 

Summary of Changes in Fair Value of Derivative Liabilities

The following table includes a summary of the changes in fair value of the liability classified warrants issued to purchase Legacy Fast Radius common stock measured at fair value using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2022 and 2021:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

2022

 

 

2021

 

 

2022

 

 

2021

 

Beginning balance

$

-

 

 

$

1,153

 

 

$

2,014

 

 

$

87

 

Additions

 

 

 

 

481

 

 

 

 

 

 

988

 

Change in fair value

 

 

 

 

(184

)

 

 

(1,475

)

 

 

375

 

Converted to common stock

 

 

 

 

 

 

 

(539

)

 

 

 

Ending balance

$

-

 

 

$

1,450

 

 

$

-

 

 

$

1,450

 

Summary of Weighted Average Significant Unobservable Inputs used in The Measuring The Derivative Liability

A summary of the weighted average significant unobservable inputs (Level 3 inputs) used in measuring the Company’s derivative liability categorized within Level 3 of the fair value hierarchy as of February 4, 2022 (the conversion date) and December 31, 2021 is as follows:

 

Energize

February 4, 2022

 

 

December 31, 2021

 

Cost of debt

 

11.0

%

 

 

11.0

%

Term (Years)

 

0.0

 

 

0.08 - 0.25

 

Present value factor

1

 

 

0.98 - 0.99

 

 

 

 

 

 

 

Drive Capital

February 4, 2022

 

 

December 31, 2021

 

Cost of debt

 

11.0

%

 

 

11.0

%

Term (Years)

 

0.0

 

 

0.08 - 0.25

 

Present value factor

1

 

 

0.98 - 0.99

 

 

 

 

 

 

 

ECP Holdings

February 4, 2022

 

 

December 31, 2021

 

Cost of debt

 

11.0

%

 

 

11.0

%

Term (Years)

 

0.0

 

 

0.08 - 0.25

 

Present value factor

1

 

 

0.98 - 0.99

 

Common Share Warrants [Member] | Warrants [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Quantitative Information Regarding Fair Value Measurements Inputs

A summary of the weighted average significant unobservable inputs (Level 3 inputs) used in measuring the Company’s warrant liability for common share warrants categorized within Level 3 of the fair value hierarchy as of February 4, 2022 (the conversion date) and December 31, 2021 is as follows:

 

 

February 4, 2022

 

 

December 31, 2021

 

Legacy Fast Radius stock price

$

15.69

 

 

$

28.28

 

Term (Years)

N/A

 

 

 

10.71

 

Volatility

N/A

 

 

 

84.40

%

Risk-free rate of return

N/A

 

 

 

1.52

%

Dividend yield

 

0.00

%

 

 

0.00

%

Series A Three Preferred Stock [Member] | Warrants [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Changes in Fair Value of Derivative Liabilities

The following table includes a summary of changes in fair value of the liability classified warrants issued to purchase Legacy Fast Radius series A-3 preferred stock measured at fair value using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2022 and 2021:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

2022

 

 

2021

 

 

2022

 

 

2021

 

Beginning balance

$

-

 

 

$

806

 

 

$

954

 

 

$

112

 

Additions

 

 

 

 

 

 

 

 

 

 

 

Change in fair value

 

 

 

 

(17

)

 

 

(473

)

 

 

677

 

Converted to common stock

 

 

 

 

 

 

 

(481

)

 

 

 

Ending balance

$

-

 

 

$

789

 

 

$

-

 

 

$

789

 

Series A Three Preferred Share Warrants [Member] | Warrants [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Quantitative Information Regarding Fair Value Measurements Inputs

A summary of the weighted average significant unobservable inputs (Level 3 inputs) used in measuring the Company’s warrant liability for preferred share warrants is categorized within Level 3 of the fair value hierarchy as of February 4, 2022 (the conversion date) and December 31, 2021 is as follows:

 

 

February 4, 2022

 

 

December 31, 2021

 

Legacy Fast Radius stock price

15.69

 

 

$

30.19

 

Term (Years)

N/A

 

 

 

11.26

 

Volatility

N/A

 

 

 

83.10

%

Risk-free rate of return

N/A

 

 

 

1.54

%

Dividend yield

 

0.00

%

 

 

0.00

%

Related Party Convertible Notes [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Changes in Fair value of Related Party Derivative Liabilities Related to Convertible Notes

The following table includes a summary of changes in fair value of the Company’s Related party derivative liabilities related to the convertible notes measured at fair value using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2022 and 2021:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

2022

 

 

2021

 

 

2022

 

 

2021

 

Beginning balance

$

-

 

 

$

-

 

 

$

4,395

 

 

$

-

 

Additions

 

 

 

 

2,415

 

 

 

 

 

 

2,415

 

Change in fair value

 

 

 

 

(6

)

 

 

(30

)

 

 

(6

)

Converted to common stock

 

 

 

 

 

 

 

(4,365

)

 

 

 

Ending balance

$

-

 

 

$

2,409

 

 

$

-

 

 

$

2,409