Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements

v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS
B. FAIR VALUE MEASUREMENTS:

 

Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2025 and December 31, 2024. The carrying amount of accounts payable approximated fair value as they are short term in nature. The fair value of stock options are estimated based on the Black-Scholes model during the three months ended March 31, 2025 and the year ended December 31, 2024.

 

Fair Value on a Recurring Basis

 

The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period. The estimated fair value of the Company’s investments and money market accounts represent Level 1 measurements. The estimated fair value of the earn-out liabilities represent Level 3 measurements. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

 

Description   Level   March 31,
2025		     December 31,
2024		  
Assets:                
Investments   1   $ 7,939     $ 8,856  
                     
Liabilities:                    
Earn-out liabilities   3   $ 711     $ 711  

 

Investments

 

The Company’s investments consisted of the following as of March 31, 2025:

 

    Cost     Unrealized
Gain (Loss)		     Fair Value  
Money market fund   $ 4,105     $
  —
     $ 4,105  
Corporate bonds     2,763       7       2,770  
Mutual funds     267      
—
       267  
US Treasury bills     799       (2 )     797  
    $ 7,934     $ 5     $ 7,939  

 

The Company’s investments consisted of the following as of December 31, 2024:

 

    Cost     Unrealized
Gain (Loss)		     Fair Value  
Money market fund   $ 4,843     $
     —
     $ 4,843  
Corporate bonds     2,958       (6 )     2,952  
Mutual funds     267      
—
       267  
US Treasury bills     798       (4 )     794  
    $ 8,866     $ (10 )   $ 8,856  

Earn-Out Liabilities

 

A reconciliation of the earn-out liability is included below:

 

Balance as of December 31, 2024   $ 711  
Payments earned and paid    
—
  
Loss upon re-measurement    
—
  
Balance as of March 31, 2025   $ 711  
         
Current portion of contingent earn-out liabilities   $ 256  
Long-term contingent earn-out liabilities   $ 455  

 

Fair Value on a Non-Recurring Basis

 

Installment Payment Liabilities

 

The estimated fair value of the installment payment liabilities represent a Level 2 measurement. The Company measures the initial installment payment liabilities at fair value by discounting the contractually agreed upon payments by Bloomberg’s B+ corporate yield curve as of the valuation date, using rates commensurate with the term to payment. The credit rating was determined utilizing Bloomberg’s default risk function for the Company as of the valuation date. The installment payments and payment date (term) are based on the purchase agreements and the discount rate represents a quoted market price classified within Level 2 of the fair value hierarchy. All assumptions utilized in the determination of the fair values of assets and liabilities acquired in the Company’s business combinations were determined to be Level 3 in the fair value hierarchy, see Note F. “Acquisitions” for the valuation assumptions used.