Rush Street Interactive, Inc. Fair Value Disclosure
Fair Value Measured as of December 31, 2020 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Public warrants | $ | 88,079 | $ | — | $ | — | $ | 88,079 | |||||||||||||||
| Private warrants | — | — | 82,030 | 82,030 | |||||||||||||||||||
| Earnout interests liability | — | — | 351,048 | 351,048 | |||||||||||||||||||
| Total fair value | $ | 88,079 | $ | — | $ | 433,078 | $ | 521,157 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Mar 7, 2022 | Showing above |
| 2020 | Mar 25, 2021 | |
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.