Quarterly report [Sections 13 or 15(d)]

FINANCIAL INSTRUMENTS

v3.25.1
FINANCIAL INSTRUMENTS
3 Months Ended
Mar. 31, 2025
Investments, All Other Investments [Abstract]  
FINANCIAL INSTRUMENTS
 17. FINANCIAL INSTRUMENTS
The following table sets forth the Company’s financial assets and liabilities, subject to fair value measurements on a recurring basis, by level within the fair value hierarchy:
March 31, 2025 (unaudited) December 31, 2024
Financial liabilities: (1)
Derivative liabilities (2)
$ 2,883  $ 3,128 
Contingent consideration liabilities (3)
—  5,912 
Total financial liabilities $ 2,883  $ 9,040 
(1)The Company has no financial assets or liabilities in Level 1 or 2 within the fair value hierarchy as of March 31, 2025 and December 31, 2024, and there were no transfers between hierarchy levels during the three months ended March 31, 2025 or year ended December 31, 2024.
(2)Refer to Note 9 - Derivative Liabilities.
(3)This was related to the acquisitions of Statewide and RJK. During the three months ended March 31, 2025, the balance was reclassified as debt upon the completion of both acquisitions. Refer to Note 8 - Debt for more information.
The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and certain accrued expenses, and certain other assets and liabilities held at amortized cost, approximate their fair values due to the short-term nature of these instruments. The carrying amounts of the promissory notes approximate their fair values as the effective interest rates are consistent with market rates. The carrying amount of the Second Lien Notes approximates their fair values as of March 31, 2025 and December 31, 2024, respectively.