FAIR VALUE
ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and expands financial statement disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (that is an exit price), regardless of whether that price is directly observable or estimated using another valuation technique. The Codification does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. The Codification requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
The Company believes that the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and current portion of long-term debt approximate their fair value due to their short-term nature.
As of December 31, 2025, we estimated the fair value of contingent consideration that represents a potential earnout payment to Viewgol’s former equity holders based on information available to management as of the reporting date. Refer to Note 16 of the consolidated financial statements included herein for additional detail regarding contingent consideration. We did not have any other instruments that required fair value measurement as of December 31, 2025.
The following table summarizes the carrying amount and fair value of the contingent consideration at December 31, 2025:
Fair Value at December 31, 2025 Using
(In thousands)Carrying Amount at 12/31/25Quoted Price in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Description
Contingent consideration
$5,000 $— $— $5,000 
Total$5,000 $— $— $5,000 
The following table summarizes the carrying amount and fair value of the contingent consideration at December 31, 2024:
Fair Value at December 31, 2024 Using
(In thousands)Carrying Amount at 12/31/24Quoted Price in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Description
Contingent consideration
$— $— $— $— 
Total$— $— $— $— 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 17, 2025
2023Mar 15, 2024
2022Mar 16, 2023
2021Mar 15, 2022
2020Mar 12, 2021
2019Mar 11, 2020
2018Mar 18, 2019
2017Mar 14, 2018
2016Mar 15, 2017
2015Mar 14, 2016

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.