Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.21.2
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Summary of Allowance For Doubtful Accounts

The following presents the changes in the balance of the Company’s allowance for doubtful accounts:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Balance at beginning of period

 

$

1,165

 

 

$

1,104

 

 

$

1,070

 

 

$

1,038

 

Additions

 

 

226

 

 

 

101

 

 

 

604

 

 

 

498

 

Write – offs

 

 

(248

)

 

 

(223

)

 

 

(312

)

 

 

(237

)

Recoveries

 

 

(180

)

 

 

(70

)

 

 

(399

)

 

 

(387

)

Balance at end of period

 

$

963

 

 

$

912

 

 

$

963

 

 

$

912

 

 

Fair Value of Financial Instruments
Summary of Fair Value Hierarchy of The Valuation

The following table presents information about the Company’s assets and liabilities that are measured at fair value as of September 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation:

 

 

 

Fair Value Measurements

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds included in cash and cash equivalents

 

$

297,080

 

 

$

—

 

 

$

—

 

 

$

297,080

 

Contingent earnout liability

 

 

—

 

 

 

—

 

 

 

80,419

 

 

 

80,419

 

Private placement warrant liability

 

 

—

 

 

 

—

 

 

 

4,284

 

 

 

4,284

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds included in cash and cash equivalents

 

$

56,907

 

 

$

—

 

 

$

—

 

 

$

56,907

 

SVB warrant liability

 

 

—

 

 

 

—

 

 

 

545

 

 

 

545

 
Summary of Changes in Fair Value of the Derivative Warrant Liabilities

The Company remeasures its Common Stock Warrants (as defined below) and Private Placement Warrants (as defined below) at fair value at each reporting period using Level 3 inputs via the Black-Scholes option-pricing model and Binomial Lattice Model, respectively. The valuation of the earnout shares is based on a Monte Carlo simulation. The significant assumptions used in preparing the above models are disclosed in Note 12 Stock Warrants and Note 11 Earnout. All Silicon Valley Bank ("SVB") warrants were exercised in June 2021. There were no transfers between levels during the periods presented.

 

(in thousands)

 

Contingent Earnout Liability

 

 

Private Placement Warrant Liability

 

 

SVB Warrant Liability

 

Fair Value as of January 1, 2020

 

$

—

 

 

$

—

 

 

$

370

 

Change in fair value

 

 

—

 

 

 

—

 

 

 

79

 

Fair Value as of September 30, 2020

 

$

—

 

 

$

—

 

 

$

449

 

 

 

 

 

 

 

 

 

 

 

Fair Value as of January 1, 2021

 

$

—

 

 

$

—

 

 

$

545

 

Recognition of liability acquired as part of the Merger

 

 

123,129

 

 

 

5,702

 

 

 

—

 

Change in fair value

 

 

(42,710

)

 

 

(1,418

)

 

 

1,248

 

Exercise of common stock warrants

 

 

—

 

 

 

—

 

 

 

(1,793

)

Fair Value as of September 30, 2021

 

$

80,419

 

 

$

4,284

 

 

$

—

 
Summary of Balance of The Company's Warranty Reserve

Warranty reserves are included within accrued expenses on the condensed consolidated balance sheets. The following table presents changes in the balance of the Company’s warranty reserve:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Balance at beginning of period

 

$

568

 

 

$

1,367

 

 

$

564

 

 

$

1,260

 

Additions to warranty reserve

 

 

155

 

 

 

338

 

 

 

395

 

 

 

820

 

Claims fulfilled

 

 

(130

)

 

 

(315

)

 

 

(366

)

 

 

(690

)

Balance at end of period

 

$

593

 

 

$

1,390

 

 

$

593

 

 

$

1,390