Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of fair value measurements, recurring

The following table presents the Company’s liabilities that are measured at fair value on a recurring basis and the level within the fair value hierarchy (in thousands):

							June 30,								December 31,
	Level 1		Level 2		Level 3		2022		Level 1		Level 2		Level 3		2021
Contingent earnout consideration	$	—	$	—	$	474	$	474	$	—	$	—	$	608	$	608
ProFrac Agreement contract consideration convertible notes	$	—	$	—	11,670		$	11,670	$	—	$	—	$	—	$	—
Amended ProFrac Agreement contract consideration convertible notes	$	—	$	—	55,550		$	55,550	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	67,694	$	67,694	$	—	$	—	$	608	$	608

Schedule of valuation techniques

The key inputs into the Monte Carlo simulation used to estimate the fair value the earn-out provision were as follows:

	June 30, 2022	December 31, 2021
Risk-free interest rate	2.99%	1.02%
Expected volatility	90.0%	90.0%
Term until liquidation (years)	2.88	3.38
Stock price	$0.99	$1.13
Discount rate	10.77%	6.71%

The key inputs into the Monte Carlo simulation used to estimate the fair value the ProFrac Agreement Contract Consideration Convertible Notes Payable maturing February 2, 2023, as of June 30, 2022 were as follows:

	June 30, 2022
Risk-free interest rate	2.51%
Expected volatility	90.0%
Term until liquidation (years)	0.60
Stock price	$0.99
Discount rate	10.92%

The key inputs into the Monte Carlo simulation used to estimate the fair value the Amended ProFrac Agreement Contract Consideration Convertible Notes Payable, on the issuance date of May 17, 2022, and as of as of June 30, 2022 were as follows:

	May 17, 2022	June 30, 2022
Risk-free interest rate	2.16%	2.80%
Expected volatility	90.0%	90.0%
Term until liquidation (years)	1.00	0.88
Stock price	$1.29	$0.99
Discount rate	8.40%	10.97%

Schedule of fair value, liabilities measured on recurring basis, unobservable input reconciliation

The following table presents the changes in the assets and liabilities measured at fair value on a recurring basis classified as Level 3 (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Balance - beginning of period	$	14,752	$	1,081	$	608	$	1,416
Transfer of ProFrac Agreement contract consideration convertible notes payable from Level 2	—		—		10,000		—
Issuance of Amended ProFrac Agreement contract consideration convertible notes payable	69,460		—		69,460		—
Increase in principle of ProFrac Agreement contract consideration convertible notes payable for paid-in-kind interest	257		—		415		—
Increase in principle of Amended ProFrac Agreement contract consideration convertible notes payable for paid-in-kind interest	611		—		611		—
Change in fair value of contingent earnout consideration	(228)		34		(134)		(301)
Change in fair value of ProFrac Agreement contract consideration convertible notes payable	(2,637)		—		1,255		—
Change in fair value of Amended ProFrac Agreement contract consideration convertible notes payable	(14,521)		—		(14,521)		—
Balance - end of period	$	67,694	$	1,115	$	67,694	$	1,115