Quarterly report pursuant to Section 13 or 15(d)

Fair value of financial instruments (Tables)

v3.22.2.2
Fair value of financial instruments (Tables)
9 Months Ended
Sep. 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)

 

September 30,

2022

 

 

 

Level 3

 

BPC Investment

 

 

49,752

 

Total

 

$

49,752

 

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 September 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 September 30, 2022

 

$

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