Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

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Fair Value Measurements
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 10 - Fair Value Measurements

 

The carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value because of the short-term nature of these financial instruments. The carrying amounts of borrowings under credit facilities approximates fair value as variable interest rates on these instruments approximates current market rates.

 

The Company estimates the fair value of the term loan based on a discounted cash flow method. The carrying value of the term loan was based on an accounting entry where proceeds from the loan were first allocated to the warrants liabilities. The following table presents the carrying amount and fair value of the Company’s term note, line of credit and warrants liabilities by hierarchy level:

 

          March 31, 2024     December 31, 2023  
    Fair Value Hierarchy     Carrying Amount     Fair Value     Carrying Amount     Fair Value  
Term loan   Level 3 (2)   $ 3,054     $ 3,565     $ 2,881     $ 3,314  
Line of credit   Level 2 (1)   $ 2,171     $ 2,171     $ 1,741     $ 1,741  

 

(1) the fair value estimates are based upon observable market data

 

(2) the fair value estimates are based on unobservable inputs reflecting management’s assumptions about inputs used in pricing the asset or liability