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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2024
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 10. Fair Value Measurements Financial Instruments not recognized at Fair Value The Company measures certain liabilities at fair value on a recurring basis, which are discussed below. Our financial instruments not recognized at fair value were as follows:
|  | As of June 30, |  |  | As of December 31, 2023 |  |  |  |  |
|  | Carrying Value |  |  | Fair Value |  |  | Carrying Value |  |  | Fair Value |  | Fair Value Level |  |  | Reference
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due from related party - Advisory Agreements |  | $ | 58,486 |  |  | $ | 34,949 |  |  | $ | 49,877 |  |  | $ | 49,877 |  |  | 3 |  |  | Note 12
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt Obligations |  | $ | 300,631 |  |  | $ | 300,631 |  |  | $ | 289,844 |  |  | $ | 289,844 |  |  | 2 |  |  | Note 11
As of June 30, 2024 and December 31, 2023, debt obligations' carrying value approximates fair value. Earnouts associated with the acquisitions of Bonaccord and Hark Included in total consideration of the acquisition of Bonaccord is an earnout payment not to exceed $20 million. The amount ultimately owed to the sellers is based on achieving specific fundraising targets and any amounts paid to the sellers will be paid by October 2027, at which point the earnout expires. Payments are made after each close. As of June 30, 2024, $14.4 million has been paid in total contingent consideration associated with the earnout, of which $1.2 million was paid in the six months ended June 30, 2024. Total remeasurement expense recognized for the three and six months ended June 30, 2024 wa s $0.1 million an d $0.1 million, respectively. Total remeasurement expense recognized for the three and six months ended June 30, 2023 was $0.1 million and $0.5 million, respectively. This is included in contingent consideration expense on the Consolidated Statements of Operations. The Company's contingent consideration is considered to be a Level 3 fair value measurement as the significant inputs are unobservable and require signific ant judgment or estimation. The remainder of the earnout is highly probable to be achieved given the fundraising amount to date and projected fundraising should satisfy the targets. As of June 30, 2024, the estimated fair value of the remaining contingent consideration totaled $5.6 million. Following June 30, 2024, the Company has paid $1.3 million towards the remaining contingent consideration. Included in the total consideration of the acquisition of Hark is an earnout not to exceed $5.4 million. Total remeasurement expense recognized for the three and six months ended June 30, 2024 totaled $0 and $0, respectively. Total remeasurement expense recognized for the three and six months ended June 30, 2023, respectively, totaled $0 and $0.1 million, which was included in contingent consideration expense on the Consolidated Statements of Operations. The entirety of the Hark contingent consideration of $5.4 million was paid during the year ended December 31, 2023. The following tables provide details regarding the classification of these liabilities within the fair value hierarchy as of the dates presented:
|  | As of June 30, |
|  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration obligation |  | $ | - |  |  | $ | - |  |  | $ | 5,570 |  |  | $ | 5,570 |
Total liabilities |  | $ | - |  |  | $ | - |  |  | $ | 5,570 |  |  | $ | 5,570 |
|  | As of December 31, 2023 |
|  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration obligation |  | $ | - |  |  | $ | - |  |  | $ | 6,693 |  |  | $ | 6,693 |
Total liabilities |  | $ | - |  |  | $ | - |  |  | $ | 6,693 |  |  | $ | 6,693 |
For the liabilities presented in the tables above, there were no changes in fair value hierarchy levels during the six months ended June 30, 2024 and December 31, 2023. The changes in the fair value of Level III financial instruments are set forth below:
Contingent Consideration Liability |  |  |  |  |  | For the Six Months Ended June 30, |
|  |  |  |  |  | 2024 |  |  | 2023 |
Balance, beginning of year: |  |  |  |  |  | $ | 6,693 |  |  | $ | 17,337 |
Change in fair value |  |  |  |  |  |  | 121 |  |  |  | 470 |
Settlements |  |  |  |  |  |  | (1,244 | ) |  |  | (1,588 | )
Balance, end of period: |  |  |  |  |  | $ | 5,570 |  |  | $ | 16,219 |
The fair value of the contingent consideration liability represents the fair value of future payments upon satisfaction of performance targets. The assumptions used in the analysis are inherently subjective; therefore, the ultimate amount of the contingent consideration liability primarily relate to the expected future payments of obligations with a discount rate applied. The contingent consideration liability is included in contingent consideration on the Consolidated Balance Sheets. Changes in the fair value of the liability are included in contingent consideration expense on the Consolidated Statements of Operations.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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