Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments

v3.22.2.2
Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

Recurring Fair Value Measurements

The following table summarizes information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values:

 

 

 

September 30, 2022

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds in Cash and Cash Equivalents

 

$

63,693

 

 

$

—

 

 

$

—

 

 

$

63,693

 

Total Assets

 

$

63,693

 

 

$

—

 

 

$

—

 

 

$

63,693

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Public Warrants

 

$

1,709

 

 

$

—

 

 

$

—

 

 

$

1,709

 

Private Placement Warrants

 

$

—

 

 

$

922

 

 

$

—

 

 

$

922

 

Total Liabilities

 

$

1,709

 

 

$

922

 

 

$

—

 

 

$

2,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds in Cash and Cash Equivalents

 

$

162,164

 

 

$

—

 

 

$

—

 

 

$

162,164

 

Total Assets

 

$

162,164

 

 

$

—

 

 

$

—

 

 

$

162,164

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Public Warrants

 

$

8,625

 

 

$

—

 

 

$

—

 

 

$

8,625

 

Private Placement Warrants

 

$

—

 

 

$

4,651

 

 

$

—

 

 

$

4,651

 

Total Liabilities

 

$

8,625

 

 

$

4,651

 

 

$

—

 

 

$

13,276

 

 

Money market funds were valued by the Company using quoted prices in active markets for similar securities, which represent a Level 1 measurement within the fair value hierarchy.

As of September 30, 2022, the Company has Private Placement Warrants and Public Warrants ("Warrants") defined and discussed in Note 16, "Common Stock and Warrants". The Warrants are measured at fair value on a recurring basis. The Company performs routine procedures such as comparing prices obtained from independent sources to ensure that appropriate fair values are recorded. Because the transfer of Private Placement Warrants to anyone outside of the initial purchasers would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company determined that the fair value of each Private Placement Warrant is consistent with that of a Public Warrant, with an insignificant adjustment for short-term marketability restrictions. Accordingly, the Private Placement Warrants are classified as Level 2 financial instruments. The Public and Private Warrants were valued as of September 30, 2022 using the listed trading price of $0.18 per Public Warrant.

During the nine months ended September 30, 2022, there were no transfers between Level 1, Level 2, and Level 3.

 

11. FAIR VALUE OF FINANCIAL INSTRUMENTS (cont.)

The change in fair value of warrant liabilities is as follows:

 

 

 

Warrant Liabilities

 

 

 

(in thousands)

 

Balance at December 31, 2021

 

$

13,277

 

Exercised warrants

 

 

—

 

Change in fair value

 

$

(10,646

)

Balance at September 30, 2022

 

 

2,631