Company: LPSN
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001102993-25-000108
Chunk: 114

Company: LIVEPERSON INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 114
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 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 and is influenced by the fair value of the underlying, or notional amount of, common stock of the Company. A summary of the Black-Scholes pricing model assumptions used to record the fair value of the Warrants as of June 30, 2025 is as follows:

25

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Stock price$1.01Risk free rate4.15%Expected life (in years)8.93Expected volatility79.00%Any significant changes in the inputs may result in significantly higher or lower fair value measurements. Refer to Note 8 – Convertible Senior Notes, Capped Call Transactions and Warrants for additional information.The changes in fair value of the Level 3 Warrants of the dates presented are as follows:June 30,2025December 31,2024(In thousands)Balance, beginning of year$17,498 $— Issuance of Warrants— 5,266 Change in the fair value of Warrants(5,825)12,232 Balance, end of period$11,673 $17,498 

Note 10. Commitments and Contingencies

Employee Benefit PlansThe Company has a 401(k) defined contribution plan covering all eligible employees. The Company’s 401(k) policy is a Safe Harbor Plan, whereby the Company matches 100% of the first 3% of eligible compensation and 50% of the next 2% of eligible compensation. The match is immediately vested. Salaries and related expenses include $0.5 million and $1.2 million of employer matching contributions for the three and six months ended June 30, 2025, respectively and $0.7 million and $1.8 million of employer matching contributions for the three and six months ended June 30, 2024, respectively.Letters of CreditAs of June 30, 2025, the Company had letters of credit totaling $0.5 million outstanding as a security deposit for the due performance by the Company of the terms and conditions of a supply contract.Contractual obligationsThe Company’s purchase obligations consist of agreements to purchase goods and services entered into in the ordinary course of business. The Company has purchase obligation agreements primarily relating to contracts with vendors in connection with Information Technology (“