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Fair Value Considerations (Tables)
6 Months Ended
Dec. 31, 2021
Fair Value Considerations  
Schedule of fair value on a recurring basis

    

Fair Value Measurements at December 31, 2021

Quoted

Priced in

Active

Markets

Significant

for

Other

Significant

Identical

Observable

Unobservable

    

Fair Value at December 31, 

    

Assets

    

Inputs

    

Inputs

2021

 

(Level 1)

 

(Level 2)

 

(Level 3)

(In thousands)

Assets:

 

 

Cash and cash equivalents

$

35,277

$

35,277

$

$

Total

$

35,277

 

$

35,277

 

$

$

Liabilities:

Contingent consideration

 

$

9,503

 

$

 

$

 

$

9,503

CVR liability

 

1,392

 

 

 

1,392

Total

$

10,895

 

$

 

$

$

10,895

    

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)

Assets:

Cash and cash equivalents

$

49,649

$

49,649

$

$

Total

$

49,649

 

$

49,649

 

$

$

Liabilities:

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

 

(3)

555

Purchases, issues, sales and settlements:

 

 

Settlements

 

 

 

(3,109)

Balance as of December 31, 2021

 

$

1,392

$

9,503

Schedule of significant assumptions used in valuation

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

    

December 31, 

2021

Tuzistra

 

  

 

Valuation model

Scenario-Based

Leveraged Beta

 

0.66

 

Market risk premium

 

6.00

%  

Risk-free interest rate

 

1.80

%  

Discount

 

14.30

%  

Company specific discount

 

15.00

%  

    

December 31, 

2021

ZolpiMist

 

  

 

Valuation method

Monte Carlo

Leveraged Beta

 

1.08

 

Market risk premium

 

6.00

%  

Risk-free interest rate

 

1.90

%  

Discount

 

11.50

%  

Company specific discount

 

15.00

%  

Significant assumptions used in valuing the CVRs were as follows:

December 31, 

    

2021

Contingent Value Rights

 

  

Valuation method

Monte Carlo

Leveraged Beta

 

0.85

Market risk premium

6.00

%

Risk-free interest rate

0.73

%

Discount

18.00

%

Company specific discount

 

10.00

%