Quarterly report pursuant to Section 13 or 15(d)

Balance Sheet Detail

v3.22.2.2
Balance Sheet Detail
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Detail Balance Sheet Detail
(a)Fair Value of Financial Instruments
The Company uses a three-level hierarchy, which prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information for fair value measurement based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. Fair value focuses on an exit price and is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with those financial instruments.
The three-level hierarchy for fair value measurements is defined as follows:
•Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;
•Level 2: Inputs to the valuation methodology included quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and
•Level 3: Inputs to the valuation methodology, which are significant to the fair value measurement, are unobservable.
An asset or liability’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The fair values for financial assets and liabilities measured on a recurring basis were as follows:
As of September 30, 2022
Level 1 Level 2 Level 3 Total
Cash equivalents:
Money market funds
 $ 356,550  $ —  $ —  $ 356,550 
U.S. Treasury securities —  129,429  —  129,429 
Total cash equivalents
 $ 356,550  $ 129,429  $ —  $ 485,979 
Short-term investments:
U.S. Treasury securities $ —  $ 750,697  $ —  $ 750,697 
Total short-term investments $ —  $ 750,697  $ —  $ 750,697 
Liabilities:
Public warrants $ 5,742  $ —  $ —  $ 5,742 
Private placement warrants —  4,183  —  4,183 
Earnout shares liability —  —  5,076  5,076 
Total liabilities $ 5,742  $ 4,183  $ 5,076  $ 15,001 
As of December 31, 2021
Level 1 Level 2 Level 3 Total
Cash equivalents:
Money market funds
 $ 1,609,919  $ —  $ —  $ 1,609,919 
Total cash equivalents
 $ 1,609,919  $ —  $ —  $ 1,609,919 
Liabilities:
Public warrants
 $ 37,999  $ —  $ —  $ 37,999 
Private placement warrants
 —  27,679  —  27,679 
Earnout shares liability —  —  52,380  52,380 
Total liabilities $ 37,999  $ 27,679  $ 52,380  $ 118,058 
Cash equivalents and short-term investments are measured at fair value on a recurring basis based on quoted market prices or other readily available market information. The amortized cost, unrealized gains and losses, and fair value of available-for-sale debt securities were as follows:
As of September 30, 2022
Amortized cost Unrealized losses Fair value
U.S. Treasury securities $ 883,473  $ (3,347) $ 880,126 
The public warrants and private placement warrants (see Note 7: Derivative Liabilities) are measured at fair value on a recurring basis. The public warrants are valued based on the closing price of the publicly traded instrument. The private placement warrants are valued using observable inputs for similar publicly traded instruments.
The earnout shares liability (see Note 7: Derivative Liabilities) is measured at fair value on a recurring basis. The fair value was determined using a Monte Carlo simulation with a risk free rate of 3.87% and 1.52% and volatility of 50.00% and 50.00% as of September 30, 2022 and December 31, 2021, respectively.
Earnout shares liability
Balance as of December 31, 2021
 $ 52,380 
Change in fair value
 (47,304)
Balance as of September 30, 2022
 $ 5,076 
(b)Property and Equipment, Net
The components of property and equipment, net were as follows:
As of
September 30,
2022		 December 31,
2021
Land
 $ 13,503  $ 13,503 
Furniture and fixtures
 11,005  10,893 
Test and lab equipment
 13,803  11,984 
Leasehold improvements
 64,734  61,173 
Computer and equipment
 9,263  7,839 
Computer software
 3,602  3,321 
Automobile
 7,238  3,444 
Buildings
 3,132  1,040 
126,280  113,197 
Less accumulated depreciation and amortization
 (33,373) (19,680)
Total property and equipment, net
 $ 92,907  $ 93,517 
(c)Goodwill
The changes in the carrying amount of goodwill were as follows:
As of As of
December 31,
2021		 Goodwill impairment September 30,
2022
Goodwill $ 1,113,766  $ —  $ 1,113,766 
Accumulated impairment loss —  (1,000,081) (1,000,081)
Carrying amount of goodwill $ 1,113,766  $ (1,000,081) $ 113,685 
During the second quarter of 2022, the market price of the Company’s Class A common stock and its market capitalization declined significantly. As a result, the Company determined that a triggering event had occurred and an interim goodwill impairment assessment was performed.
The Company utilized a market approach valuation method utilizing the observable market price of the Company’s Class A common stock as it represented the best evidence of the fair value of its reporting unit. Based on the results, the Company recognized a $1,000,081 goodwill impairment during the nine months ended September 30, 2022.
(d)Accrued Expenses and Other Current Liabilities
The components of accrued expenses and other current liabilities were as follows:
As of
September 30,
2022		 December 31,
2021
Accrued compensation
 $ 37,153  $ 51,401 
Other accrued expenses
 18,972  18,605 
Total accrued expenses and other current liabilities
 $ 56,125  $ 70,006