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