Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.23.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements 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 and the warrants liabilities (measured at fair value on a recurring basis) are based on a risk-neutral Monte Carlo simulation approach. 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:
June 30, 2023 December 31, 2022
Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value
Term loan Level 3 (2) $ 2,550  $ 2,550  $ —  $ — 
Line of credit Level 2 (1) $ 2,260  $ 2,260  $ 11,444  $ 11,444 
Warrants liabilities Level 3 (2) $ 2,208  $ 2,208  $ —  $ — 
(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