Redwire Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Fair Value of Financial Instruments (Tables)

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

These two types of inputs have created the following fair-value hierarchy:


Level 1:			Quoted prices for identical instruments in active markets;
Level 2:			Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
Level 3:			Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

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


	December 31, 2024			December 31, 2023
Fair value per share	$	7.15		$	0.43
Warrants outstanding	7,732,168			7,732,168
Exercise price	$	11.50		$	11.50
Common stock price	$	16.46		$	2.85
Expected option term	1.67 years			2.67 years
Expected volatility	52.70		%	74.20		%
Risk-free rate of return	4.18		%	4.00		%
Expected annual dividend yield	—		%	—		%

Schedule of Liabilities Measured at Fair Value

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



		December 31, 2024
	Balance Sheet Location	Level 1		Level 2		Level 3		Total





Liabilities:
Private warrants	Warrant liabilities	$	—	$	—	$	55,285	$	55,285

Total liabilities		$	—	$	—	$	55,285	$	55,285


		December 31, 2023
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Committed equity facility	Prepaid expenses and other current assets	$	—	$	—	$	—	$	—

Total assets		$	—	$	—	$	—	$	—

Liabilities:
Private warrants	Warrant liabilities	$	—	$	—	$	3,325	$	3,325

Total liabilities		$	—	$	—	$	3,325	$	3,325

Schedule of Changes in the Fair Value of Level 3 Financial Liabilities

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


Assets:	Committed Equity Facility		Total Level 3
December 31, 2022	$	216	$	216
Additions	—		—
Changes in fair value	(216)		(216)
Settlements	—		—
December 31, 2023	$	—	$	—


Liabilities:	Contingent Consideration		Private Warrants		Total Level 3





















December 31, 2022	$	1,000	$	1,314	$	2,314
Additions	—		—		—
Changes in fair value	—		2,011		2,011
Settlements	(1,000)		—		(1,000)
December 31, 2023	$	—	$	3,325	$	3,325
Additions	—		—		—
Changes in fair value	—		51,960		51,960
Settlements	—		—		—
December 31, 2024	$	—	$	55,285	$	55,285

Changes in the Fair Value of Level 3 Financial Assets

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


Assets:	Committed Equity Facility		Total Level 3
December 31, 2022	$	216	$	216
Additions	—		—
Changes in fair value	(216)		(216)
Settlements	—		—
December 31, 2023	$	—	$	—


Liabilities:	Contingent Consideration		Private Warrants		Total Level 3





















December 31, 2022	$	1,000	$	1,314	$	2,314
Additions	—		—		—
Changes in fair value	—		2,011		2,011
Settlements	(1,000)		—		(1,000)
December 31, 2023	$	—	$	3,325	$	3,325
Additions	—		—		—
Changes in fair value	—		51,960		51,960
Settlements	—		—		—
December 31, 2024	$	—	$	55,285	$	55,285

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details