XML 41 R10.htm IDEA: XBRL DOCUMENT
v3.23.1

Fair Value Measurement | 12 Months Ended
--- | ---
Dec. 31, 2022
Fair Value Disclosures [Abstract] |
Fair Value Measurement | Note 4. Fair Value Measurement The Company records its financial assets and liabilities at fair value. The carrying amount of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, restricted cash, accounts payable, and accrued and other liabilities, approximate their fair value due to their short-term maturities. The accounting guidance for fair value establishes a framework for measuring fair value and a fair value hierarchy that prioritizes the inputs used in valuation techniques. The fair value hierarchy is based on three levels of inputs that may be used to measure fair value as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):
|  | As of December 31, 2022 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds (1) |  | $ | 9,194 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,194 |
Commercial paper |  |  | — |  |  |  | 22,549 |  |  |  | — |  |  |  | 22,549 |
Corporate bonds |  |  | — |  |  |  | 10,797 |  |  |  | — |  |  |  | 10,797 |
Government bonds |  |  | — |  |  |  | 17,802 |  |  |  | — |  |  |  | 17,802 |
Government agency debt securities (1) |  |  | — |  |  |  | 3,982 |  |  |  | — |  |  |  | 3,982 |
Total financial assets measured at fair value |  | $ | 9,194 |  |  | $ | 55,130 |  |  | $ | — |  |  | $ | 64,324 |
Liabilities (2) : |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Public Warrants |  | $ | 151 |  |  | $ | — |  |  | $ | — |  |  | $ | 151 |
PIPE Warrants |  |  | — |  |  |  | 175 |  |  |  | — |  |  |  | 175 |
Total financial liabilities measured at fair value |  | $ | 151 |  |  | $ | 175 |  |  | $ | — |  |  | $ | 326 |
|  | As of December 31, 2021 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds (1) |  | $ | 32,310 |  |  | $ | — |  |  | $ | — |  |  | $ | 32,310 |
Commercial paper |  |  | — |  |  |  | 49,136 |  |  |  | — |  |  |  | 49,136 |
Corporate bonds |  |  | — |  |  |  | 19,480 |  |  |  | — |  |  |  | 19,480 |
Government bonds |  |  | — |  |  |  | 18,082 |  |  |  | — |  |  |  | 18,082 |
Foreign bonds |  |  | — |  |  |  | 3,717 |  |  |  | — |  |  |  | 3,717 |
Total financial assets measured at fair value |  | $ | 32,310 |  |  | $ | 90,415 |  |  | $ | — |  |  | $ | 122,725 |
Liabilities (2) : |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Public Warrants |  | $ | 3,527 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,527 |
Private Placement Warrants |  |  | — |  |  |  | 166 |  |  |  | — |  |  |  | 166 |
PIPE Warrants |  |  | — |  |  |  | 4,608 |  |  |  | — |  |  |  | 4,608 |
Total financial liabilities measured at fair value |  | $ | 3,527 |  |  | $ | 4,774 |  |  | $ | — |  |  | $ | 8,301 |
(1) | They are included in cash and cash equivalents on the consolidated balance sheets as of December 31, 2022 and 2021.
(2) | See the definition and discussion of Public Warrants, Private Placement Warrants and PIPE Warrants in Note 11.
Corporate bonds, commercial paper, foreign bonds, government bonds and government agency debt securities are classified as Level 2 as they were valued based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. The Public Warrants are classified as Level 1 due to the use of an observable market quote in an active market. The Private Placement Warrants are classified as Level 2 due to the use of observable market data for identical or similar liabilities. The fair value of each Private Placement Warrant was determined to be consistent with that of a Public Warrant because the Private Warrants are also subject to the make-whole redemption feature, which allows the Company to redeem both types of warrants on similar terms when the stock price is in the range of $10 to $18 per share. The PIPE Warrants were initially recorded in 2021 at fair value using a binomial lattice model. The PIPE Warrants were classified as Level 3 at issuance because the fair value was measured based on significant inputs that are unobservable in the market. The significant unobservable input used in the fair value measurement of the PIPE Warrants is the expected volatility. The expected volatility was implied from the market price of the Company’s Public Warrants. The expected term was based on the remaining contractual term of the PIPE Warrants, and the risk-free interest rate was based on the implied yield available on U.S. Treasury Securities with a maturity equivalent to the expected term. The dividend rate is based on the historical rate, which the Company anticipated remaining at zero. The key inputs into the binomial lattice model for the PIPE Warrants at the initial measurement were as follows:
|  | August 11, 2021 |
Expected term (in years) |  |  | 5.01 |
Expected volatility |  |  | 18.90 | %
Risk-free interest rate |  |  | 0.81 | %
Dividend yield |  |  | — |
Given the adequate history of the market data of the Public Warrants as of December 31, 2022 and 2021, the PIPE Warrants were remeasured at December 31, 2022 and 2021 based on the observable market quote of the Public Warrants and are classified as Level 2. The valuation technique was changed since the fair value of the Public Warrant is equally or more representative of the fair value of the PIPE Warrants. The fair value of each PIPE Warrant was determined to be consistent with that of a Public Warrant because the PIPE Warrants are also subject to the make-whole redemption feature, which allows the Company to redeem both types of warrants on similar terms. There were no changes to the valuation methods utilized, and there were no transfers of financial instruments for the year ended December 31, 2022. The following table sets forth a summary of the changes in the fair value of the Company’s warrant liabilities for the years ended December 31, 2022 and 2021 (in thousands):
|  | Public Warrants |  |  | Private Placement Warrants |  |  | PIPE Warrants |  |  | Total Warrant Liabilities |
Balance, December 31, 2020 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Assumption in Business Combination |  |  | 3,557 |  |  |  | 168 |  |  |  | 4,647 |  |  |  | 8,372 |
Change in fair value upon remeasurement (1) |  |  | (30 | ) |  |  | (2 | ) |  |  | (39 | ) |  |  | (71 | )
Balance, December 31, 2021 |  |  | 3,527 |  |  |  | 166 |  |  |  | 4,608 |  |  |  | 8,301 |
Change in fair value upon remeasurement (1) |  |  | (3,354 | ) |  |  | (157 | ) |  |  | (4,379 | ) |  |  | (7,890 | )
Repurchase (Note 9) |  |  | (22 | ) |  |  | (9 | ) |  |  | (54 | ) |  |  | (85 | )
Balance, December 31, 2022 |  | $ | 151 |  |  | $ | — |  |  | $ | 175 |  |  | $ | 326 |
(1) | The change in fair value of the warrant liabilities was recognized in other income (expense), net within the consolidated statements of operations and comprehensive loss.
The following tables provide the Company’s marketable securities by security type (in thousands):
|  | As of December 31, 2022 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Commercial paper |  | $ | 22,549 |  |  | $ | — |  |  | $ | — |  |  | $ | 22,549 |
Corporate bonds |  |  | 10,817 |  |  |  | 1 |  |  |  | (21 | ) |  |  | 10,797 |
Government bonds |  |  | 18,023 |  |  |  | — |  |  |  | (221 | ) |  |  | 17,802 |
Total short-term marketable securities |  | $ | 51,389 |  |  | $ | 1 |  |  | $ | (242 | ) |  | $ | 51,148 |
|  | As of December 31, 2021 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Commercial paper |  | $ | 49,136 |  |  | $ | — |  |  | $ | — |  |  | $ | 49,136 |
Corporate bonds |  |  | 15,920 |  |  |  | 4 |  |  |  | (17 | ) |  |  | 15,907 |
Foreign bonds |  |  | 3,725 |  |  |  | — |  |  |  | (8 | ) |  |  | 3,717 |
Total short-term marketable securities |  | $ | 68,781 |  |  | $ | 4 |  |  | $ | (25 | ) |  | $ | 68,760 |
Government bonds |  | $ | 18,165 |  |  | $ | — |  |  | $ | (83 | ) |  | $ | 18,082 |
Corporate bonds |  |  | 3,588 |  |  |  | — |  |  |  | (15 | ) |  |  | 3,573 |
Total long-term marketable securities |  | $ | 21,753 |  |  | $ | — |  |  | $ | (98 | ) |  | $ | 21,655 |
The following table indicates the length of the time that individual securities have been in a continuous unrealized loss position (dollars in thousands):
|  | As of December 31, 2022 |  |  | As of December 31, 2021 |
|  |  |  |  | Less Than 12 Months |  |  |  |  |  | Less Than 12 Months |
|  | Number of Investments |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Investments |  |  | Fair Value |  |  | Unrealized Losses |
Corporate bonds |  |  | 4 |  |  | $ | 9,719 |  |  | $ | 21 |  |  |  | 5 |  |  | $ | 12,572 |  |  | $ | 32 |
Government bonds |  |  | 3 |  |  |  | 17,801 |  |  |  | 221 |  |  |  | 3 |  |  |  | 18,082 |  |  |  | 83 |
Foreign bonds |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 3,717 |  |  |  | 8 |
Total |  |  | 7 |  |  | $ | 27,520 |  |  | $ | 242 |  |  |  | 10 |  |  | $ | 34,371 |  |  | $ | 123 |
As of December 31, 2022 and 2021, all short-term marketable securities had maturities of one year or less. All long-term marketable securities as of December 31, 2021 had maturities of greater than one year but less than two years. There have been no significant realized gains or losses on the marketable securities during the years ended December 31, 2022 and 2021. The Company periodically reviews the available-for-sale investments for credit losses. All investments with unrealized losses have been in a loss position for less than 12 months. The Company determined that the unrealized loss was primarily attributed to changes in current market interest rates and not to credit quality. The Company does not intend to sell the marketable securities that are in an unrealized loss position, nor is it more likely than not that the Company will be required to sell the marketable securities before the recovery of the amortized cost basis, which may be at maturity. As a result, the Company did not recognize any allowance for credit losses as of December 31, 2022.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration