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Note 4 - Fair Value Measurements
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

4.

 Fair value measurements

 

Recurring Basis

 

A summary of financial assets and liabilities that are measured at fair value on a recurring basis, as of March 31, 2024 and December 31, 2023, were as follows (in thousands):

 

   

March 31, 2024

  
   

Level 1

    

Level 2

    

Level 3

    

Total

  

Assets:

                                

Non-current accounts receivable, net

   $ -     $ 9,179     $ -     $ 9,179  

Liabilities:

                                

Contingent consideration liabilities

     -       -       25,103       25,103  

Borrowings

     -       41,874       -       41,874  

Finance lease liabilities

     -       17,836       -       17,836  

 

   

December 31, 2023

  
   

Level 1

    

Level 2

    

Level 3

    

Total

  

Assets:

                                

Non-current accounts receivable, net

   $ -     $ 9,768     $ -     $ 9,768  

Liabilities:

                                

Contingent consideration liabilities

     -       -       24,705       24,705  

Borrowings

     -       20,701       -       20,701  

Finance lease liabilities

     -       18,377       -       18,377  

 

We have certain contingent consideration liabilities related to acquisitions which are measured at fair value using Level 3 inputs. The amount of contingent consideration due to the sellers is based on the achievement of agreed-upon financial performance metrics by the acquired company, as determined by the terms of the contingent consideration agreements with the sellers of each acquired company. We record a liability at the time of the acquisition based on the present value of management’s best estimates of the future results of the acquired companies compared to the agreed-upon metrics. After the date of acquisition, we update the original valuation to reflect the passage of time and current projections of future results of the acquired companies. Accretion of, and changes in the valuations of, contingent consideration are reported on the condensed consolidated statement of operations within “Severance and other expense.”