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Note 4 - Fair Value Measurements
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023, were as follows (in thousands):

 

   

June 30, 2024

  
   

Level 1

    

Level 2

    

Level 3

    

Total

  

Assets:

                                

Non-current accounts receivable, net

   $ -     $ 8,590     $ -     $ 8,590  

Contingent consideration

     -       -       3,307       3,307  

Liabilities:

                                

Contingent consideration

           -       25,103       25,103  

Borrowings

     -       121,775       -       121,775  

Finance lease liabilities

     -       17,335       -       17,335  

 

   

December 31, 2023

  
   

Level 1

    

Level 2

    

Level 3

    

Total

  

Assets:

                                

Non-current accounts receivable, net

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

Liabilities:

                                

Contingent consideration

     -       -       24,705       24,705  

Borrowings

     -       20,701       -       20,701  

Finance lease liabilities

     -       18,377       -       18,377  

 

We have certain contingent consideration assets and liabilities related to acquisitions which are measured at fair value using Level 3 inputs. The amount of contingent consideration due from or 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 income (expense).”