Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 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):


							December 31,								December 31,
	Level 1		Level 2		Level 3		2023		Level 1		Level 2		Level 3		2022
Contingent earnout consideration	$	—	$	—	$	56	$	56	$	—	$	—	$	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	$	—	$	—	$	56	$	56	$	—	$	—	$	84,153	$	84,153

Schedule of valuation techniques


	December 31,
	2023	2022
Risk-free interest rate	4.58%	4.34%
Expected volatility	70.0%	100.0%
Term until liquidation (years)	1.38	2.38
Stock price (pre-Reverse Stock Split basis for 2022)	$3.92	$1.12
Discount rate	11.86%	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 that matured on 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, that matured on 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 years ended December 31, 2023 and 2022 classified as Level 3 balances (in thousands):


	Years ended December 31,
		2023		2022
Balance - beginning of period		$	84,153	$	608
Transfer of Initial 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 principle of Initial ProFrac Agreement contract consideration convertible notes payable for paid-in-kind interest		85		954
Increase in principle of Amended ProFrac Agreement contract consideration convertible notes payable for paid-in-kind interest		2,044		3,231
Change in fair value of contingent earnout consideration		(527)		(25)
Change in fair value of Initial ProFrac Agreement contract consideration convertible notes payable		786		3,266
Change in fair value of Amended ProFrac Agreement contract consideration convertible notes payable		(30,755)		(3,341)
Conversion of Initial ProFrac Agreement contract consideration convertible notes on maturity		(15,092)		—
Conversion of Amended ProFrac Agreement contract consideration convertible notes on maturity		(40,638)		—
Balance - end of period		$	56	$	84,153