Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

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):


							September 30,								December 31,
	Level 1		Level 2		Level 3		2023		Level 1		Level 2		Level 3		2022
Contingent earnout consideration	$	—	$	—	$	199	$	199	$	—	$	—	$	583	$	583
Initial ProFrac Agreement Contract Consideration Convertible Notes	—		—		—		—		—		—		14,220		14,220
Amended ProFrac Agreement Contract Consideration Convertible Notes	—		—		—		—		—		—		69,350		69,350
Total	$	—	$	—	$	199	$	199	$	—	$	—	$	84,153	$	84,153

Schedule of valuation techniques


	September 30, 2023			December 31, 2022
Risk-free interest rate	5.19		%	4.34		%
Expected volatility	90.0		%	100.0		%
Term until liquidation (years)	1.63			2.38
Stock price (pre-Reverse Stock Split basis)	$	4.43		$	1.12
Discount rate	13.31		%	9.95		%

The key inputs into the Monte Carlo simulation used to estimate the fair value of the Initial ProFrac Agreement Contract Consideration Convertible Notes Payable maturing February 2, 2023, as of December 31, 2022 were as follows:


						December 31, 2022
Risk-free interest rate						4.12%
Expected volatility						100.0%
Term until liquidation (years)						0.09
Stock price (pre-Reverse Stock Split basis)						$1.12
Discount rate						4.12%

The key inputs into the Monte Carlo simulation used to estimate the fair value of the Amended ProFrac Agreement Contract Consideration Convertible Notes Payable maturing May 17, 2023, as of December 31, 2022 were as follows:


			December 31, 2022
Risk-free interest rate			4.59%
Expected volatility			100.0%
Term until liquidation (years)			0.38
Stock price (pre-Reverse Stock Split basis)			$1.12
Discount rate			4.59%

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

The following table presents the changes in balances of liabilities for the three and nine months ended September 30, 2023 and 2022 classified as Level 3 (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Balance - beginning of period	$	260	$	67,694	$	84,153	$	608
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
Increase in principal of Initial ProFrac Agreement Contract Consideration Convertible Notes Payable for paid-in-kind interest	—		266		85		681
Increase in principal of Amended ProFrac Agreement Contract Consideration Convertible Notes Payable for paid-in-kind interest			1,293		2,043		1,905
Change in fair value of contingent earnout consideration	(61)		28		(384)		(106)
Change in fair value of Initial ProFrac Agreement Contract Consideration Convertible Notes Payable	—		634		786		1,889
Change in fair value of Amended ProFrac Agreement Contract Consideration Convertible Notes Payable	—		3,617		(30,754)		(10,905)
Conversion of Initial ProFrac Agreement Contract Consideration Convertible Notes Payable on maturity	—		—		(15,092)		—
Conversion of Amended ProFrac Agreement Contract Consideration Convertible Notes Payable on maturity			—		(40,638)		—
Balance - end of period	$	199	$	73,532	$	199	$	73,532