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Fair Value Measurements
 12 Months Ended
Apr. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements

(14) Fair Value Measurements

 

ASC Topic 820,”Fair Value Measurements” states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities that are measured at fair value are reported using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable input and minimizes the use of unobservable inputs. The following is a description of the three hierarchy levels.

 

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
   
Level 2 Inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly.
   
Level 3 Inputs that are unobservable for the asset or liability.

 

Disclosure of Fair Values

 

The Company’s financial instruments that are not re-measured at fair value include cash, cash equivalents, restricted cash, accounts receivable, contract assets and liabilities, deposits, accounts payable, and accrued expenses. The carrying value is equal to their fair value due to the short term nature of these accounts. The Company’s contingent consideration liability represents the only asset or liability classified financial instrument that is measured at fair value on a recurring basis.

 

 

Additionally, there is a Level 3 contingent liability related to earnouts as part of the MAR acquisition in the amount of $1.2 million as of April 30, 2023. As of April 30, 2023, the fair value of this contingent liability from the time that MAR was acquired has increased by approximately $1.1 million from $1.6 million as of April 30, 2022. Subsequent to year end in June 2023, the Company paid out $500,000 in cash and issued 1,923,077 in shares to satisfy the achievement of the earnout based on new customer bookings of $1.5 million.

 

Transfers into or out of any hierarchy level are recognized at the end of the reporting period in which the transfers occurred. There was one transfers between any hierarchy levels during each of the fiscal year ended April 30, 2023 related to the current portion of the MAR earnout being known and payable as of year-end in the amount of $1.5 million. There was a $60,000 adjustment for 3Dent as of the year end April 30, 2022.