XML 21 R11.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
FAIR VALUE OF FINANCIAL INSTRUMENTS
3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS
NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS

Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis

The following tables and discussion below represent the financial instruments measured at fair value on a recurring basis in the condensed consolidated financial statements of the Company and the valuation approach applied to each class of financial instruments at March 31, 2024 and December 31, 2023:

March 31, 2024
(in thousands)
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Assets:
Cash and cash equivalents:
Money market funds$9,561 $— $— $9,561 
Total cash and cash equivalents9,561 — — 9,561 
Equity investments:
Mutual funds1,145 — — 1,145 
Total equity investments1,145 — — 1,145 
Total assets measured at fair value$10,706 $— $— $10,706 

December 31, 2023
(in thousands)
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Assets:
Cash and cash equivalents:
Money market funds$7,406 $— $— $7,406 
Total cash and cash equivalents7,406 — — 7,406 
Equity investments:
Mutual funds1,081 — — 1,081 
Total equity investments1,081 — — 1,081 
Total assets measured at fair value$8,487 $— $— $8,487 

Level 1 assets are priced using quoted prices in active markets for identical assets which include money market funds, U.S. Treasury securities and mutual funds as these specific assets are liquid.

The purchase agreement with the Schuler Trust (“Schuler Purchase Obligation”), which is classified as a financial instrument asset and included in purchase obligation put option asset on the condensed consolidated balance sheets, had a fair value using Level 3 measurement assumptions of $3.4 million as of December 31, 2023 and $0 as of March 31, 2024, as the Schuler Purchase Obligation was fulfilled during the period. See Note 10, Related-Party Transactions for further detail on the Schuler Purchase Obligation.

As of March 31, 2024, outstanding warrants which are classified as a common warrant liability on the condensed consolidated balance sheets have a fair value of $3.0 million, using Level 3 measurement assumptions. See Note 17, Stockholders' Deficit for further detail on warrants.

As of March 31, 2024, the Forward Contract, which is classified within other current assets on the
condensed consolidated balance sheets, has a fair value of $0.6 million, using Level 3 measurement assumptions. See Note 17, Stockholders' Deficit for further detail.

For certain other financial assets and liabilities, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances.

Liabilities for Which Fair Value Is Only Disclosed

As of March 31, 2024 and December 31, 2023, the 5.00% Notes had an outstanding principal amount of $67.6 million, and a fair value of $42.6 million and $50.8 million, respectively, using Level 3 measurement assumptions. See Note 9, Convertible Notes for further detail on the 5.00% Notes.

The 2.50% Notes matured on March 15, 2023 and became due and payable on such date. The amortized carrying amount of the 2.50% Notes is $0.7 million as of March 31, 2024 and December 31, 2023, approximates the related fair value due to the instrument being fully matured and payable. See Note 9, Convertible Notes for further detail on the 2.50% Notes.