Registration of securities issued in business combination transactions

Fair value of financial instruments (Tables)

v3.22.2.2
Fair value of financial instruments (Tables)
6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments within Level 3 of Fair Value Hierarchy
The following table sets forth the fair value of the Company’s financial instruments within Level 3 of the fair value hierarchy.
 
(In thousands)
  
June 30,

2022
 
    
Level 3
 
BPC Investment
     49,752  
    
 
 
 
Total
   $ 49,752  
    
 
 
 
Fair Value Measurement Key Inputs
The key inputs into the Monte Carlo simulation used to estimate the fair value the Convertible Notes were as follows:
 
    
May 17,

2022
   
March 31,

2022
 
Risk-free interest rate
     1.82 %      1.63 % 
Expected volatility
     90.0 %      90.0 % 
Term until liquidation (years)
     0.72       0.84  
Stock price
   $ 1.29     $ 1.26  
Reconciliation of Beginning and Ending Balances for assets Measures at Fair Value on a Recurring Basis
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) from inception to June 30, 2022:
 
(In thousands)
      
    
Level 3
 
Fair value as of January 1, 2022
   $ —    
Acquisition of Flotek Convertible Notes
     20,000  
Acquisition of investment in BPC
     47,202  
Transfer of cost method investment to Level 3 fair value measurement
     4,244  
Change in fair value of Level 3 fair value measurements
     8,100  
    
 
 
 
Fair value as of March 31, 2022
   $ 79,546  
    
 
 
 
Change in Flotek fair value up to acquisition date
     2,120  
Elimination of Flotek convertible notes at acquisition date
     (30,220 ) 
Change in BPC fair value
     (1,694 ) 
    
 
 
 
Fair value as of June 30, 2022
   $ 49,752