Quarterly report pursuant to Section 13 or 15(d)

FINANCIAL INSTRUMENTS

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FINANCIAL INSTRUMENTS
 3 Months Ended
Mar. 31, 2023
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, 2023 (unaudited) December 31, 2022
Financial assets: (1)
Equity investment $ 977  $ 977 
Total financial assets $ 977  $ 977 
Financial liabilities: (1)
Derivative liabilities (2)
$ 6,104  $ 14,134 
Contingent consideration liabilities (3)
3,109  4,793 
Total financial liabilities $ 9,213  $ 18,927 
(1)The Company has no financial assets or liabilities in Level 1 or 2 within the fair value hierarchy as of March 31, 2023 and December 31, 2022, and there were no transfers between hierarchy levels during the three months ended March 31, 2023 or year ended December 31, 2022.
(2)Refer to Note 9 - Derivative Liabilities.
(3)Refer to Note 5 - Acquisitions.
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 equity investment approximates its fair value at March 31, 2023 and December 31, 2022. The fair value of the Company’s debt approximates their fair values as of March 31, 2023 and December 31, 2022 as the effective interest rates are consistent with market rates.