Fair Value Measurements |
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| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||
| Fair Value Measurements |
4. Fair Value Measurements
Series B Preferred Stock Warrant Liability
The Company’s Series B preferred stock warrants were classified as liabilities, recorded at fair value and subject to remeasurement at each balance sheet date until they were converted into common stock warrants in connection with the completion of the Merger. The common stock warrants are equity classified as of the Merger date and are no longer subject to remeasurement. The Series B preferred stock warrant liability was estimated using an option pricing model. The significant weighted-average assumptions used in valuing the warrants as of October 5, 2020 were as follows: risk-free interest rate of 0.7%, remaining contractual life of 8.9 years, expected volatility of 57.8%, annual dividend yield of 0.0%, and fair value of Series B convertible preferred stock of $1.26 per share.
The reconciliation of the Series B preferred stock warrant liability measured at fair value, until the reclassification into equity at the time of the Merger, on a recurring basis using significant unobservable inputs (Level 3) was as follows (in thousands):
Fair Value of Financial Instruments
The carrying amounts of cash, restricted cash, accounts receivable, prepaid expenses, accounts payable, and customer deposits approximate fair value due to their short-term nature. As of December 31, 2021, the fair value of the Company’s loan payable was $16.1 million. As of December 31, 2021, the carrying value of the Company’s loan payable was $14.8 million. The estimated fair value for the Company’s loan payable was based on discounted expected future cash flows using prevailing interest rates which are Level 3 inputs under the fair value hierarchy. |