Company: LPSN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001102993-25-000187
Chunk: 141

Company: LIVEPERSON INC
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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ization periods, their carrying values are reduced to estimated fair value. Estimated fair values are Level 3 measures in the fair value hierarchy. The estimated fair value of outstanding balances of the Notes as of the dates presented are as follows:Level of HierarchyFair ValuePrincipal BalanceUnamortized Debt DiscountUnamortized Debt Issuance CostsNet Carrying Value(In thousands)September 30, 20252026 Notes2$8,553 $20,125 $— $(94)$20,031 2029 Notes3$197,913 $214,374 $(27,451)$(6,495)$180,428 Second Lien Notes3$68,122 $181,952 $— $— $181,952 December 31, 20242026 Notes2$164,348 $361,204 $— $(2,757)$358,447 2029 Notes3$180,360 $207,125 $(31,137)$(7,365)$168,623 Management determined the fair value of 2026 Notes by using Level 2 inputs based on observable market prices for the instrument and similar instruments. Management determined the fair value of the 2029 Notes as of September 30, 2025 by using Level 3 inputs, including volatility of 15.00%,  yield of 16.00%, risk-free rate of 3.66%, and credit spread of 12.03%. Management determined the fair value of the Second Lien Notes as of September 30, 2025 by using Level 3 inputs, including the volatility of 15.00%, yield of 25.00%, and risk-free rate of 3.69% and credit spread of 23.10%. A change in those inputs to a different amount might result in a significantly higher or lower fair value measurement.WarrantsThe Company recorded the fair value of the Warrants upon issuance using the Black-Scholes valuation model and is required to revalue these Warrants at each reporting date with any changes in fair value recorded on the Company’s condensed consolidated statements of operations. The valuation of the Warrants was classified as Level 3 within the fair value hierarchy 

30

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

and is influenced by the fair value of the underlying, or notional amount of, common stock of the Company. A summary of the Black