Quarterly report [Sections 13 or 15(d)]

Note 6 - Fair Value Measurement

v3.26.3
Note 6 - Fair Value Measurement
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

6. FAIR VALUE MEASUREMENT

 

Assets and liabilities measured at fair value on a recurring basis are as follows:

 

 

 

September 30, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Money market funds

 

 $

26,551

 

 

 $

-

 

 

 $

-

 

 

 $

26,551

 

Total assets

 

 $

26,551

 

 

 $

-

 

 

 $

-

 

 

 $

26,551

 

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Liabilities:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Warrant liability

 

 $

-

 

 

 $

-

 

 

 $

30

 

 

 $

30

 

Earn-out liabilities

 

 

-

 

 

 

-

 

 

 

301

 

 

 

301

 

Total liabilities

 

 $

-

 

 

 $

-

 

 

 $

331

 

 

 $

331

 

 

 

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also measures certain assets and liabilities at fair value on a nonrecurring basis. Non-financial assets, including goodwill, intangible assets, operating lease right of use assets, and property, plant and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset’s projected undiscounted cash flows. These assets are recorded at fair value only when an impairment charge is recognized.

 

The Company’s earn-out liabilities represent contingent consideration recognized in connection with the Company’s business acquisitions and are classified within Level 3 of the fair value hierarchy. The Company remeasures these liabilities at fair value on a recurring basis at each reporting date using a probability-based approach that reflects management’s estimate of the likelihood that the performance thresholds underlying the arrangements will be achieved. During the three and nine months ended September 30, 2026, changes in these estimates were recognized in the condensed consolidated statements of operations.

 

The following table sets forth a summary of the changes in the fair value of Level 3 liabilities that are measured at fair value on a recurring basis during the nine months ended September 30, 2026:

 

 

 

2026

 

Earn-Out Liabilities

 

 

 

​

Beginning balance as of January 1,

 

 $

1,986

 

Change in fair value of earn-out liabilities

 

 

(1,273

)

Common stock issued in settlement of earn-out liabilities

 

 

(412

)

Ending balance as of September 30,

 

 $

301