Cash equivalents are classified as level 1 assets, as they have readily available market prices in an active market. Cash equivalents include short-term investment funds which consisted of short-term money market instruments that were valued based on quoted prices in active markets. The Company's cash and cash equivalents totaled $283.9 million and $208.5 million as of December 31, 2022 and 2021, respectively.

During the three months ended September 30, 2021, the Company obtained corporate securities, which are classified as Level 2 assets. The fair value of these securities, included in Long-term notes receivables and other non-current assets, net, was $1.7 million and $2.4 million as of December 31, 2022 and 2021, respectively. The fair value of the Company’s Level 2 corporate securities are based on observable prices that are based on inputs not quoted in active markets, but corroborated by market data.


Issuance	December 31, 2022				December 31, 2021				Stated Interest Rate
	Face Value		Estimated Fair Value		Face Value		Estimated Fair Value






2027 Notes	$	600,000	$	576,960	$	600,000	$	633,660	6.750	%
2029 Notes	800,000		659,680		800,000		795,680		5.750	%
Term Loan	1,333,125		1,333,125		1,346,625		1,346,625		N/A
Total	$	2,733,125	$	2,569,765	$	2,746,625	$	2,775,965

The Notes are fixed-rate debt considered Level 2 fair value measurements as the values were determined using observable market inputs, such as current interest rates, prices observable from less active markets, as well as prices observable from comparable securities. The Term Loan is floating-rate debt and approximates the carrying value as interest accrues at floating rates based on market rates.

Under the Consumer Financing Program, the Company pays a monthly fee to Financing Providers based on either the average daily outstanding balance of the Loans or the number of outstanding Loans. For certain Loans, the Company incurs fees at the time of the loan origination and receives proceeds that are net of these fees. The Company also shares the liability for credit losses, depending on the credit quality of the customer. Because of the nature of certain provisions under the Consumer Financing Program, the Company records a derivative liability that is not designated as a hedging instrument and is adjusted to fair value, measured using the present value of the estimated future payments. Changes to the fair value are recorded through other income, net in the Consolidated Statement of Operations. The following represent the contractual future payment obligations with the Financing Providers under the Consumer Financing Program that are components of the derivative:

The derivative is classified as a Level 3 instrument. The derivative positions are valued using a discounted cash flow model, with inputs consisting of available market data, such as market yield discount rates, as well as unobservable internally derived assumptions, such as collateral prepayment rates, collateral default rates and loss severity rates. These derivatives are priced quarterly using a credit valuation adjustment methodology. In summary, the fair value represents an estimate of the present value of the cash flows the Company will be obligated to pay to the Financing Provider for each component of the derivative.

The following table summarizes the fair value and the notional amount of the Company’s outstanding consumer financing program derivative instrument as of December 31, 2022 and 2021 (in thousands):



	December 31,
	2022		2021
Consumer Financing Program Contractual Obligations:
Fair value	$	125,798	$	216,795
Notional amount	859,743		1,160,278
Classified on the consolidated balance sheets as:
Accrued expenses and other current liabilities	90,008		140,394
Other long-term obligations	35,790		76,401
Total Consumer Financing Program Contractual Obligation	$	125,798	$	216,795


	December 31,
	2022		2021
Balance, beginning of period	$	216,795	$	227,896
Additions	13,019		94,995
Settlements	(106,193)		(91,826)
Losses (Gains) included in earnings	2,177		(14,270)
Balance, end of period	$	125,798	$	216,795

As a result of the Business Combination, the Company assumed a derivative warrant liability related to previously issued private placement warrants and public warrants in connection with Mosaic’s initial public offering. The fair value of the Company’s public warrants were measured based on the market price of such warrants and are considered a Level 1 fair value measurement. As of December 31, 2022 and 2021, there were no outstanding public warrants. The private placement warrants are measured at each reporting period, with changes in fair value recognized in the statement of operations.


	Public Warrants		Private Placement Warrants		Total Derivative Warrant liability



Balance, December 31, 2020	$	8,063	$	75,531	$	83,594
Change in fair value of warrant liability	1,350		(50,967)		(49,617)
Write-off fair value of unexercised expired warrants	(490)		—		(490)
Reclassification of derivative liabilities for exercised warrants	(8,923)		—		(8,923)
Balance, December 31, 2021	—		24,564		24,564
Change in fair value of warrant liability	—		(21,332)		(21,332)
Balance, December 31, 2022	$	—	$	3,232	$	3,232

The estimated fair value of the private placement warrant derivative liabilities is determined using Level 3 inputs. Generally, the Company utilizes a Black-Scholes valuation model to estimate the fair value of the warrants. Inherent in a Black-Scholes valuation model are assumptions related to expected stock-price volatility, expiration, risk-free interest rate and dividend yield. The Company estimates the volatility of its common stock based on historical volatility of select peer companies that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon

The following table provides quantitative information regarding Level 3 fair value measurements inputs as their measurement dates:


	As of December 31, 2022		As of December 31, 2021
Number of private placement warrants	5,933,334		5,933,334
Exercise price	$	11.50	$	11.50
Stock price	$	11.90	$	9.78
Expiration term (in years)	N/A(1)		3.05
Volatility	N/A(1)		70		%
Risk-free Rate	N/A(1)		0.98		%
Dividend yield	N/A(1)		—		%