Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.20.2
Fair Value Measurements
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 4. Fair Value Measurements

In October 2018, upon the acquisition of certain technology, referred to as HunchLab, from Azavea, Inc., the Company recognized a contingent consideration liability classified within Level III of the fair value hierarchy because some of the inputs used in its measurement were neither directly nor indirectly observable. The Company estimates the fair value of the contingent consideration at the end of each reporting period based on management’s estimates of (i) the probability of achieving the relevant revenue targets and (ii) the timing of achieving such targets. In January 2020, based on the relevant revenues earned during the first year of the three-year contingent consideration period, the Company paid $0.3 million to Azavea, Inc., resulting in a reduction of the contingent consideration liability.

The changes in the fair value of contingent consideration liability for 2020 and 2019 are as follows (in thousands):

 

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

Balance, beginning of period

 

$

750

 

 

$

750

 

Payment of contingent consideration liability

 

 

(347

)

 

 

 

Balance, end of period

 

$

403

 

 

$

750