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Fair Value Measurement | 9 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Fair Value Measurement | Fair Value Measurement The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis as of September 30, 2023 (Successor) and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine each asset's and each liability's fair value:
Assets |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Short-term Investments |  | $ | — |  |  | $ | 100,000 |  |  | $ | — |  |  | $ | 100,000 |
Total |  | $ | — |  |  | $ | 100,000 |  |  | $ | — |  |  | $ | 100,000 |
Liabilities |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Public Warrants |  | $ | 37,420 |  |  | $ | — |  |  | $ | — |  |  | $ | 37,420 |
Private Placement Warrants |  | — |  |  | — |  |  | 103,114 |  |  | 103,114 |
Earnout Shares |  | — |  |  | — |  |  | 4,546 |  |  | 4,546 |
Total |  | $ | 37,420 |  |  | $ | — |  |  | $ | 107,660 |  |  | $ | 145,080 |
The following table presents information about the Company’s liabilities that were measured at fair value on a recurring basis as of December 31, 2022 (Predecessor) and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine each liability's fair value:
Liabilities |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Option Liability |  | $ | — |  |  | $ | — |  |  | $ | 5,174 |  |  | $ | 5,174 |
Total |  | $ | — |  |  | $ | — |  |  | $ | 5,174 |  |  | $ | 5,174 |
The following table presents a reconciliation of the beginning and ending balances of recurring level 3 fair value measurements:
|  | July 1 – September 30, 2023 (Successor) | July 1 – September 30, 2022 (Predecessor) |  | June 8 – September 30, 2023 (Successor) | January 1 – June 7, 2023 (Predecessor) | January 1 - September 30, 2022 (Predecessor)
Balance of recurring level 3 liabilities at beginning of period |  | $ | 63,187 |  | $ | 1,854 |  |  | $ | 63,851 |  | $ | 5,174 |  | $ | 1,459 |
Total gains and losses during the period included in Other Income (Expense) |  | 52,352 |  | — |  |  | 51,688 |  | — |  | 395 |
Issuances |  | (7,879) |  | — |  |  | (7,879) |  | — |  | — |
Payments |  | — |  | — |  |  | — |  | (5,174) |  | — |
Transfers into level 3 |  | — |  | — |  |  | — |  | — |  | — |
Transfers out of level 3 |  | — |  | — |  |  | — |  | — |  | — |
Balance of recurring level 3 liabilities at end of period |  | $ | 107,660 |  | $ | 1,854 |  |  | $ | 107,660 |  | $ | — |  | $ | 1,854 |
Earnout Shares - The fair values for the Earnout Shares are estimated using a Monte Carlo simulation. The Monte Carlo simulation considers daily simulated stock prices as a proxy for the Company's daily volume-weighted average share price. The key inputs into the valuation of the Earnout Shares are an expected term of 3 years, a risk-free rate of 4.8% and estimated equity volatility of 62.5%. The estimated equity volatility assumption is based on a blended average of asset and equity volatility measurements of publicly traded companies within the Company's peer group. Warrants - The Public Warrants are valued using their quoted and publicly available market prices. Since their fair value is predicated on quoted prices in an active market for identical instruments, the Public Warrants are considered to be Level 1 fair value instruments because their price is observable. The Company uses a Black-Scholes Merton Model to value the Private Placement Warrants. Key inputs into the Black-Scholes Merton Model include the Class A Common Stock closing price of $15.10 as of September 30, 2023 (Successor), the risk free rate of 4.5%, volatility of 64.0%, a term of 5 years and a strike price of $11.50 per share. The volatility assumption is based on a blended average of operating and equity volatility of publicly traded companies within the Company's peer group.The Private Placement Warrants are considered to be Level 3 fair value instruments because they are not traded on public markets; therefore, their price is not observable. Short-term Investments - Short-term investments are valued at cost, which approximates fair value. Short-term investments are considered Level 2 fair value instruments because cost basis is not observable in a public market. Option Liability - The Company’s option liability was issued in conjunction with member loans authorized on October 15, 2021. The loans were fully repaid on February 3, 2022. The interest expense related to these loans equaled $30 and $0 during the period from January 1, 2023 through June 7, 2023 (Predecessor) and the period from June 8, 2023 through September 30, 2023 (Successor), respectively. These measurements were reported in Interest income (expense) on the Consolidated Statements of Operations and Comprehensive Loss. On January 11, 2023, an option holder exercised its option to purchase membership interests associated with the member loan agreement. On February 3, 2023, another option holder also exercised its option to purchase membership interests associated with the member loan agreement. The Company issued 5,824 and 28,764 membership interests to the two option holders, respectively, and received an aggregate of $5,836 from the exercise of the options. No loan options are currently outstanding.

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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/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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