Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENT

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FAIR VALUE MEASUREMENT
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT

8. FAIR VALUE MEASUREMENT

 

Assumptions utilized in the valuation of Level 3 liabilities are described as follows:

 

    For the Three Months Ended     For the Nine Months Ended  
    September 30,     September 30,  
    2024     2023     2024     2023  
Risk-free interest rate     3.98 %     5.40 %     3.98%-5.09 %     4.64%-5.40 %
Contractual term (years)     1.00       1.00       1.00       1.00  
Expected volatility     92 %     71 %     88%-92 %     71%-77 %
Expected dividend yield     0.00 %     0.00 %     0.00 %     0.00 %

 

The following table sets forth a summary of the changes in the fair value of Level 3 warrant and consideration payable liabilities that are measured at fair value on a recurring basis:

 

    2024  
Consideration payable        
Beginning balance as of January 1,   $ 18,118  
Change in fair value of consideration payable     2,811  
Ending balance as of September 30,   $ 20,929  
         
Warrant Liability        
Beginning balance as of January 1   $ 32  
Change in fair value of warrant liability     (27 )
Ending balance as of September 30,   $ 5  

 

The common stock consideration payable is recorded at fair value of $20,929 and $18,118 as of September 30, 2024 and December 31, 2023, respectively, and is included within consideration payable on the condensed consolidated balance sheets. The Company uses a probability-weighted discounted cash flow approach as a valuation technique to determine the fair value of the common stock consideration payable on the acquisition date and at each reporting period. The significant unobservable inputs used in the fair value measurements are the probability outcome percentages that are assigned to each scenario. Significant increases or decreases to either of these inputs in isolation could result in a significantly higher or lower liability with a higher liability capped by the contractual maximum of the common stock consideration liability.

 

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

 

    September 30, 2024  
    Level 1     Level 2     Level 3     Total  
Assets:                        
Alternative fuel credits   $ -     $ 77     $ -     $ 77  
Total assets   $ -     $ 77     $ -     $ 77  
                                      
Liabilities:                                
Warrant liability   $ -     $ -     $ 5     $ 5  
Common stock consideration payable     -       -       20,929       20,929  
Total liabilities   $ -     $ -     $ 20,934     $ 20,934  

 

    December 31, 2023  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Alternative fuel credits   $ -     $ 32     $ -     $ 32  
Total assets   $ -     $ 32     $ -     $ 32  
                                 
Liabilities:                                
Option liability   $ 293     $ -     $ -     $ 293  
Warrant liability     -       -       32       32  
Common stock liability     743       -       -       743  
Common stock consideration payable     -       -       18,118       18,118  
Total liabilities   $ 1,036     $ -     $ 18,150     $ 19,186  

 

 

BLINK CHARGING CO.

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands except for share and per share amounts)