Company: MMI
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050707
Chunk: 107

Company: Marcus & Millichap, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 (Weighted Average)(1)Contingent consideration$1,148 Discounted cash flowExpected life of cash flows0-2.1 (0.8 years)Discount rate4.0%-5.4%(4.8%)Probability of achievement0.0%-100.0%(99.9%)Fair Value atDecember 31, 2024Valuation TechniqueUnobservable inputsRange (Weighted Average)(1)Contingent consideration$4,731 Discounted cash flowExpected life of cash flows0.3-2.8 years (0.4 years)Discount rate4.8%-6.1%(5.9%)Probability of achievement0.0%-100.0%(98.2%)(1)Unobservable inputs were weighted by the relative fair value of the instruments.The fair value of the convertible notes considered (i) accrued interest rates between 6% and 10%, (ii) a net weighted average maturity of 0.59 years which may be extended at the option of the holders, (iii) the expected likelihood of occurrence of various scenarios including financing, equity financing, change in control, or liquidation, (iv) a net weighted average settlement of 103% considering premiums from potential conversion into equity and losses from potential liquidation, and (v) discounted cash flow at a weighted average discount rate of 14.0%. During the nine months ended September 30, 2025, the fair value of the convertible notes decreased by approximately $403,000, primarily due to a change in likelihood of occurrence of the various scenarios and a decrease in the net weighted average settlement rate. The estimated time to settlement changed from a weighted average of 0.77 years as of December 31, 2024 to 0.43 years as of September 30, 2025.Nonrecurring Fair Value Measurements In accordance with U.S. GAAP, from time to time, the Company measures certain assets at fair value on a nonrecurring basis. The Company reviews the carrying value of intangibles, goodwill and other assets for indications of impairment at least annually. When indications of potential impairment are identified, the Company may be required to 

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Table of ContentsMARCUS & MILLICHAP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) 

determine the fair value of those assets and record an adjustment for the carrying amount in excess of the fair value determined. Any fair value determination