Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value, Warrants Measured on Recurring Basis

The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended
	March 31,
	2024		2023
Fair value of warrants at beginning of period	$	77	$	138
Unrealized loss on fair value adjustment for warrants		-		(2)
Fair value of warrants at end of period	$	77	$	136

Summary of Valuation Techniques and Significant Unobservable Inputs Used

The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at March 31, 2024 and December 31, 2023:


March 31, 2024
	Valuation	Valuation	Unobservable	Range of Input Values
Name	Frequency	Technique	Inputs	(Weighted Average)
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.01 - $9.34 ($0.06)
			Exercise price	$0.02 - $9.00 ($0.07)
			Time to maturity (in years)	3.66 - 7.69 (3.80)
			Annualized volatility	33.09% - 83.00% (42.38%)


December 31, 2023
	Valuation	Valuation	Unobservable	Range of Input Values
Name	Frequency	Technique	Inputs	(Weighted Average)
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.01 - $9.34 ($0.06)
			Exercise price	$0.02 - $9.00 ($0.07)
			Time to maturity (in years)	3.91 - 7.94 (4.08)
			Annualized volatility	31.90% - 83.00% (43.07%)

Estimated Fair Values of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at March 31, 2024 and December 31, 2023 (in thousands):


	Fair Value Measurements at March 31, 2024
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	633	$	633	$	-	$	-	$	633
Warrants, fair value		77		-		-		77		77
Financial liabilities:
Non-recourse debt		499		-		-		484		484


	Fair Value Measurements at December 31, 2023
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,000	$	1,000	$	-	$	-	$	1,000
Warrants, fair value		77		-		-		77		77
Financial liabilities:
Non-recourse debt		593		-		-		579		579

ATEL 17, LLC 10-Q