Company: NCNO
Filing Date: 2025-08-26
Form Type: 10-Q
Source: 0001902733-25-000106
Chunk: 57

Company: nCino, Inc.
Filing Date: 2025-08-26
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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ent consideration (included in accrued expenses and other current liabilities)$— $— $8,400 Total liabilities$— $— $8,400 All of the Company’s money market accounts are classified within Level 1 because the Company’s money market accounts are valued using quoted market prices in active exchange markets including identical assets.The following table summarizes the change in fair value of the contingent consideration with significant unobservable inputs:Balance, January 31, 2025$— Contingent consideration in connection with business acquisition8,100 Changes in fair value 300 Balance, July 31, 2025$8,400 The contingent consideration consists of the potential earn-out payment related to the Company's acquisition of Alphapack, Co. dba Sandbox Banking ("Sandbox Banking") on February 7, 2025 and has a maximum potential payment of up to $10.0 million. The fair value of the contingent consideration was determined using a probability weighted discounted cash flow model. Changes in the fair value of the contingent consideration can result from changes in assumed discount periods and rates, and from changes pertaining to the estimated or actual achievement of the defined milestones. This contingent liability was classified as Level 3 within the fair value hierarchy. Changes in fair values of contingent consideration are recognized in general and administrative expenses on the Company's unaudited condensed consolidated statement of operations. The unobservable inputs used in the valuation as of July 31, 2025 included expected payment in fiscal 2026, a weighted average expected achievement percentage of 86.7%, and a discount rate of 6.7%.There were no transfers between levels of the fair value hierarchy during the three and six months ended July 31, 2024 and 2025.Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring BasisThe Company's assets measured at fair value on a non-recurring basis include the investments accounted for under the measurement alternative. Unrealized gains as a result of an observable price change were $0.0 million and $0.5 million for the six months ended July 31, 2024 and 2025, respectively. Cumulative unrealized gains were $0.7 million for investments accounted for under the measurement alternative as of July 31, 2025. There was no impairment recognized for the three and six months ended July 31, 2024 and 2025. Realized gains from the sale of an investment reflects the difference between