XML 22 R11.htm IDEA: XBRL DOCUMENT v3.24.3
Note 4 - Fair Value Measurements
 9 Months Ended
Sep. 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 September 30, 2024 and December 31, 2023, were as follows (in thousands):

 

  

September 30, 2024

 
  

Level 1

  

Level 2

  

Level 3

  

Total

 

Assets:

                

Non-current accounts receivable, net

 $-  $8,008  $-  $8,008 

Liabilities:

                

Contingent consideration

     -   29,694   29,694 

Borrowings

  -   121,775   -   121,775 

Finance lease liabilities

  -   17,322   -   17,322 

 

  

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 expense.”