Annual report pursuant to Section 13 and 15(d)

Fair Value

v3.23.1
Fair Value
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
There were no assets measured at fair value on a recurring basis and there were no liabilities valued at fair value using Level 1 or 2 inputs. The following table provides information for liabilities measured at fair value on a recurring basis using Level 3 inputs:
December 31, 2022 December 31, 2021
Contingent Consideration:
Current 322,385  — 
Noncurrent 3,309,175  3,048,955 
Total Contingent Consideration $ 3,631,560  $ 3,048,955 
The Company initially values contingent consideration related to business combinations using a probability-weighted calculation of potential payment scenarios discounted at rates reflective of the risks associated with the expected future cash flows for certain milestones. Key assumptions used to estimate the fair value of contingent consideration include projected financial information, market data and the probability and timing of achieving the specific targets as discussed in Note 14. Acquisitions. After the initial valuation, the Company generally uses its best estimate to measure contingent consideration at each subsequent reporting period using the following unobservable Level 3 inputs:
Valuation Technique Unobservable Inputs December 31, 2022 December 31, 2021
Discounted cash flow Payment discount rate 14.7% 13.1%
Bayon Payment period
2023 - 2028
2023 - 2028
Panoptes Payment period
2024 - 2028
2024 - 2028
Jade Payment period 2026 2026
Bayon Probability of Success for payment
17% - 67%
12% - 72%
Panoptes Probability of Success for payment
17% - 36%
17% - 36%
Jade Probability of Success for payment 56% 47%
Significant changes in these assumptions could result in a significantly higher or lower fair value. The contingent consideration reported in the above table resulted is adjusted quarterly based upon the passage of time or the anticipated success or failure of achieving certain milestones. The changes in contingent consideration of $0.6 million as of December 31, 2022, was primarily driven by higher estimated probabilities of success and an increased discount factor and was recorded as a change in fair value of contingent consideration within the Consolidated Statements of Operations and Comprehensive Loss.