Redwire Corporation Annual report pursuant to Section 13 and 15(d)

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023			December 31, 2022
Fair value per share	$	0.43		$	0.17
Warrants outstanding	7,732,168			7,732,168
Exercise price	$	11.50		$	11.50
Common stock price	$	2.85		$	1.98
Expected option term	2.67 years			3.67 years
Expected volatility	74.20		%	60.70		%
Risk-free rate of return	4.00		%	4.10		%
Expected annual dividend yield	—		%	—		%

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



		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
Contingent consideration	Notes payable to sellers	—		—		—		—
Total liabilities		$	—	$	—	$	3,325	$	3,325


		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: