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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

Note 15—Fair Value Measurements

 

In instances where the determination of the fair value measurement is based upon inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based upon the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

 

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 and 2023 (in thousands):

 

   Carrying
Amount as of
December 31,		   Fair Value Measurements
As of December 31, 2024		 
   2024   Level 1   Level 2   Level 3 
Money market funds  $39,907   $39,907   $—   $— 
Investments in employee deferred compensation trusts   1,686    1,686    —    — 

 

   Carrying
Amount as of
December 31,		   Fair Value Measurements
As of December 31, 2023		 
   2023   Level 1   Level 2   Level 3 
Money market funds  $45,130   $45,130   $—   $— 
Investments in employee deferred compensation trusts   41    41    —    — 
Preferred stock derivative liability   29,947    —    —    29,947 

 

Money market funds are included in cash and cash equivalents on the Consolidated Balance Sheets. Investments in employee deferred compensation trusts which are comprised of mutual funds are classified as trading securities are included in prepaid and other assets on the Consolidated Balance Sheets (refer to Note 18 – Employee Benefit Plans).

The following table provides a reconciliation of the beginning and ending balances of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

 

Preferred stock derivative liability            
   2024   2023   2022 
Balance at January 1,  $29,947   $21,918   $21,282 
Change in fair value   —    8,029    636 
Extinguishment through redemption of preferred stock   (29,947)   —    — 
Balance at December 31,  $—   $29,947   $21,918 

 

The Company’s Series A Preferred derivative liability was classified within Level 3 of the fair value hierarchy because unobservable inputs were used in estimating the fair value. The fair value of the redemption provision embedded in the Series A Preferred Stock was estimated based on a discounted cash flow model and probability assumptions based on management’s estimates of a change of control event occurring. The value of the redemption provision explicitly considered the present value of the potential premium that would be paid related to, and the probability of, an event that would trigger its payment. In subsequent periods, the derivative liability was accounted for at fair value, with changes in fair value recognized as other income (expense) on the Company’s consolidated statements of operations.

 

The following table provides quantitative information of liabilities measured at fair value and the significant unobservable inputs (Level 3), the range of the significant unobservable inputs, and the valuation techniques.

 

The preferred stock derivative liability was extinguished on March 11, 2024.

 

   Fair Value
As of
December 31,
2023		   Valuation
Technique		   Unobservable
Inputs		   Range
(Weighted Average)		 
    (In thousands)             
Preferred Stock Derivative Liability  $29,947   Discounted Cash Flow   Change-in-control probability assumptions   Range: 0% to 100% 
            Timing of change-in-control assumptions   Range: 1 to 10 years 
            Discount Rate   Range: 8% to 10% 
            Market yield*   6.3%* 

 

*Represents the hypothetical market yield

 

The Company’s cash and cash equivalents including restricted cash, accounts receivable, accounts payable, accrued expenses and short-term debt represent financial instruments. The carrying value of these financial instruments is a reasonable approximation of fair value due to the short-term nature of the instruments.