Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v3.24.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS
C. FAIR VALUE MEASUREMENTS:

 

Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of and during the years ended December 31, 2023 and 2022. The carrying amount of accounts payable approximated fair value as they are short term in nature. The fair value of stock options and warrants are estimated based on the Black-Scholes model during the years ended December 31, 2023 and 2022.

 

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, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. 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 at periods ended December 31, 2023 and 2022, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

 

Description   Level   December 31,
2023		     December 31,
2022		  
        (Restated)     (Restated)  
Assets:                
Investments   1   $         10,393     $ 9,779  
                     
Liabilities:                    
Earn-out liabilities   3   $ 987     $ 1,226  

 

Investments

 

The Company’s investments consisted of the following as of December 31, 2023:

 

    Cost     Unrealized
Gain		     Fair
Value		  
    (Restated)     (Restated)     (Restated)  
Money market fund   $ 947     $
              —
     $ 947  
Corporate bonds     3,869       38       3,907  
Mutual funds     490       10       500  
US Treasury bills     4,920       119       5,039  
    $ 10,226     $ 167     $ 10,393  

 

The Company’s investments consisted of the following as of December 31, 2022:

 

    Cost     Unrealized
Loss		     Fair
Value		  
Money market fund   $ 487     $
             —
     $ 487  
Corporate bonds     4,540       (136 )     4,404  
US Treasury bills     4,931       (43 )     4,888  
    $ 9,958     $ (179 )   $ 9,779  

 

Earn-Out Liabilities

 

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

 

    (Restated)  
Balance as of December 31, 2021   $        1,523  
Additions pursuant to acquisitions     552  
Gain upon re-measurement     (180 )
Payments earned and paid     (669 )
Balance as of December 31, 2022   $ 1,226  
Additions pursuant to acquisitions     467  
Gain upon re-measurement     (65 )
Payments earned and paid     (641 )
Balance as of December 31, 2023   $ 987  
         
Current portion of contingent earn-out liabilities   $ 224  
Long-term contingent earn-out liabilities   $ 763  

 

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.