Company: FLYW
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027078
Chunk: 275

Company: Flywire Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1B
Chunk 275
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, respectively.StudyLinkThe fair value of the contingent consideration related to the revenue milestone from the Company’s acquisition of StudyLink was determined using an option pricing model and the fair value of the contingent consideration related to the volume of money movement, the cross-selling and engineering implementation milestones was determined using a scenario-based method. Refer to Note 9 - Business Combinations for additional details on the StudyLink acquisition. The following table presents the unobservable inputs incorporated into the valuation of contingent consideration as of December 31, 2024 and 2023. 

        Year Ended December 31,

        2024
         
        2023

        Discount rate
         
        6.3% - 8.2%
         
        7.4% - 7.5%

        Probability of successful achievement*
         
        0% - 100%
         
        29% - 95%
       
      _____________________________* Probability of successful achievement was set at different targets based on the Company’s estimates on achieving them. The weighted average probability of successful achievement as of December 31, 2024 was 42.3%.Increases or decreases in the discount rate would result in a lower or higher fair value measurement, respectively. Increases or decreases in any of the probabilities of success in which the revenue, volume, cross-selling and the engineering implementation milestones are expected to be achieved would result in higher or lower fair value measurement, respectively.The following table summarizes the changes in the carrying value of the contingent consideration for the years ended December 31, 2024, 2023 and 2022 (in thousands): 

        Year Ended December 31,

        2024

        2023

        2022

        Beginning balance
         
        $
        2,882

        $
        1,332

        $
        11,309

        Additions

        4,508

        2,703

        1,695

        Change in fair value

        (978
        )

        380

        (2,805
        )

        Contingent consideration paid*

        (1,125
        )

        (1,674
        )

        (8,664
        )

        Foreign currency translation adjustment

        (193
        )

        141

        (203
        )

        Ending balance
         
        $
        5,094

        $
        2,882

        $
        1,