22. Fair Value of Financial Instruments
The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis as of December 31, 2025 and 2024 and indicate the fair value hierarchy level of the valuation techniques and inputs that the Company utilized to determine such fair value:
December 31, 2025
Quoted Prices in Active Markets
Significant Other Observable Input
Significant Other Unobservable Inputs
(Level 1)
(Level 2)
(Level 3)
(in thousands)
Liabilities
Public Warrants
$
810 
$
— 
$
— 
Private Placement Warrants - Issued October 2019
— 
— 
245 
Private Placement Warrants - Issued March 2023
— 
— 
16,843 
Sponsor Shares
— 
— 
2,750 
$
810 
$
— 
$
19,838 
December 31, 2024
Quoted Prices in Active Markets
Significant Other Observable Input
Significant Other Unobservable Inputs
(Level 1)
(Level 2)
(Level 3)
(in thousands)
Liabilities
Public Warrants
$
1,728 
$
— 
$
— 
Private Placement Warrants - Issued October 2019
— 
— 
713 
Private Placement Warrants - Issued March 2023
— 
— 
13,820 
Sponsor Shares
— 
— 
1,703 
$
1,728 
$
— 
$
16,236 
The carrying values of the following financial instruments approximated their fair values as of December 31, 2025 and 2024 based on their short-term maturities: cash and cash equivalents, restricted cash, short-term investments, accounts receivable, prepaid expenses, other current assets, accounts payable, accrued liabilities, and other current liabilities. See Note 7—“Business Acquisition” for additional information on the fair value of assets acquired via business acquisition.
There were no transfers into or out of any of the levels of the fair value hierarchy during the years ended December 31, 2025 or 2024.
The following is a summary of changes in the fair value of the Level 3 liabilities during the year ended December 31, 2025 and 2024:
Sponsor Shares
Private Placement Warrants - Issued October 2019
Private Placement Warrants - Issued March 2023
(in thousands)
Balance as of January 1, 2025
$
1,703 
$
713 
$
13,820 
Warrant exercises
— 
— 
(10,961)
Loss (gain) from changes in fair value
1,047 
(468)
13,984 
Balance as of December 31, 2025
$
2,750 
$
245 
$
16,843 
Sponsor Shares
Private Placement Warrants - Issued October 2019
Private Placement Warrants - Issued March 2023
(in thousands)
Balance as of January 1, 2024
$
1,304 
$
583 
$
12,467 
Loss from changes in fair value
399 
130 
1,353 
Balance as of December 31, 2024
$
1,703 
$
713 
$
13,820 

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2024Mar 20, 2025
2023Mar 20, 2024
2022Mar 23, 2023
2021Mar 31, 2022
2020Mar 31, 2021
2019Mar 6, 2020

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.