Company: FLYW
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027078
Chunk: 392

Company: Flywire Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 5
Chunk 392
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 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

        $
        1,332

       * For the years ended December 31, 2024 and 2023, contingent consideration paid has been bifurcated between the financing and operating sections