Redwire Corporation Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

The table below presents the fair value per warrant and the valuation assumptions under the Black-Scholes OPM:


	September 30, 2023			December 31, 2022
Fair value per share	$	0.49		$	0.17
Warrants outstanding	7,732,168			7,732,168
Exercise price	$	11.50		$	11.50
Common stock price	$	2.89		$	1.98
Expected option term	2.92 years			3.67 years
Expected volatility	72.60		%	60.70		%
Risk-free rate of return	4.80		%	4.10		%
Expected annual dividend yield	—		%	—		%

The table below presents the Company’s financial instruments measured at fair value on a recurring basis:



		September 30, 2023
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Committed equity facility	Prepaid expenses and other current assets	$	—	$	—	$	40	$	40

Total assets		$	—	$	—	$	40	$	40

Liabilities:
Private warrants	Warrant liabilities	$	—	$	—	$	3,789	$	3,789
Contingent consideration	Notes payable to sellers	—		—		—		—
Total liabilities		$	—	$	—	$	3,789	$	3,789


		December 31, 2022
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Committed equity facility	Other non-current assets	$	—	$	—	$	216	$	216

Total assets		$	—	$	—	$	216	$	216

Liabilities:
Private warrants	Warrant liabilities	$	—	$	—	$	1,314	$	1,314
Contingent consideration	Notes payable to sellers	—		—		1,000		1,000
Total liabilities		$	—	$	—	$	2,314	$	2,314

Changes in the fair value of Level 3 financial assets and liabilities were as follows:

Changes in the fair value of Level 3 financial assets and liabilities were as follows: