FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2023

The following tables present assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2023 and 2022 (in thousands):


	As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets at fair value
Commodity	$	—	$	11	$	—	$	11
Total assets at fair value	—		11		—		11
Liabilities at fair value
RINS and environmental credits	—		(46,684)		—		(46,684)
Derivative warrants	—		—		(9,907)		(9,907)
Total liabilities at fair value.	—		(46,684)		(9,907)		(56,591)
Total	$	—	$	(46,673)	$	(9,907)	$	(56,580)

	As of December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets at fair value
Commodity	$	—	$	—	$	—	$	—
Total assets at fair value	—		—		—		—
Liabilities at fair value
Commodity	—		(242)		—		(242)
RINS and environmental credits	—		(51,355)		—		(51,355)
Derivative warrants	—		—		(14,270)		(14,270)
Total liabilities at fair value.	—		(51,597)		(14,270)		(65,867)
Total	$	—	$	(51,597)	$	(14,270)	$	(65,867)

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The Dynamic Black-Scholes Merton unobservable inputs used were as follows:


Dynamic Black-Scholes Merton Unobservable Inputs
	Initial Warrants	Additional Warrants	New Warrants
Expected dividend rate	—%	—%	—%
Expected volatility	115%	113%	113%
Risk free interest rate	4.01%	3.93%	3.84%
Expected term	3.3	4.0	5.0

The following is an analysis of changes in the derivative liability classified as level 3 in the fair value hierarchy for the years ended December 31, 2023 and 2022 (in thousands):


Level Three Roll-Forward
	2023		2022
Balance at beginning of period	$	14,270	$	75,211
New warrants granted	2,905		25,669
Repricing warrants granted	724		—
Equity component of the convertible senior note	—		(78,789)
Change in valuation of warrants included in net income	(7,992)		(7,821)
Balance at end of period	$	9,907	$	14,270