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Fair Value Considerations (Tables)
3 Months Ended
Sep. 30, 2021
Fair Value Considerations  
Schedule of fair value on a recurring basis

    

Fair Value Measurements at September 30, 2021

Quoted

Priced in

Active

Markets

Significant

for

Other

Significant

Identical

Observable

Unobservable

    

Fair Value at September 30, 

    

Assets

    

Inputs

    

Inputs

2021

 

(Level 1)

 

(Level 2)

 

(Level 3)

(In thousands)

Recurring:

 

 

Contingent consideration

 

$

12,307

 

$

 

$

 

$

12,307

CVR liability

 

1,348

 

 

 

1,348

Total

$

13,655

 

$

 

$

$

13,655

    

Fair Value Measurements at June 30, 2021

Quoted

Priced in

Active

Markets

Significant

for

Other

Significant

Identical

Observable

Unobservable

    

Fair Value at June 30, 

    

Assets

    

Inputs

    

Inputs

2021

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

(In thousands)

Recurring:

Contingent consideration

$

12,057

 

$

 

$

 

$

12,057

CVR liability

1,395

 

 

 

1,395

Total

$

13,452

 

$

 

$

$

13,452

Schedule of changes in Level 3 inputs

    

CVR

    

Contingent

Liability

Consideration

(In thousands)

Balance as of June 30, 2021

 

$

1,395

$

12,057

Included in earnings

 

(47)

300

Purchases, issues, sales and settlements:

 

 

Settlements

 

 

 

(50)

Balance as of September 30, 2021

 

$

1,348

$

12,307

Schedule of significant assumptions used in valuation

Significant assumptions used in valuing the contingent consideration were as follows:

    

September 30, 

2021

Tuzistra

 

  

 

Valuation model

Scenario-Based

Leveraged Beta

 

0.68

 

Market risk premium

 

6.00

%  

Risk-free interest rate

 

1.90

%  

Discount

 

15.00

%  

Company specific discount

 

15.00

%  

    

September 30, 

2021

ZolpiMist

 

  

 

Valuation method

Monte Carlo

Leveraged Beta

 

1.12

 

Market risk premium

 

6.00

%  

Risk-free interest rate

 

2.00

%  

Discount

 

11.80

%  

Company specific discount

 

15.00

%  

Significant assumptions used in valuing the CVRs were as follows:

September 30, 

    

2021

Contingent Value Rights

 

  

Valuation method

Monte Carlo

Leveraged Beta

 

0.91

Market risk premium

6.00

%

Risk-free interest rate

0.41

%

Discount

18.00

%

Company specific discount

 

10.00

%