Company: LPSN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001102993-25-000053
Chunk: 101

Company: LIVEPERSON INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 asset impairment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. Estimated fair values are Level 3 measures in the fair value hierarchy. 

24

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

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)March 31, 20252026 Notes2$141,050 $361,204 $— $(2,398)$358,806 2029 Notes3$181,060 $207,125 $(29,981)$(7,092)$170,052 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 similar instruments. Management determined the fair value of the 2029 Notes and Delayed Draw Notes as of March 31, 2025 by using Level 3 inputs, including the yield of 17.00%, risk-free rate of 3.93%, and credit spread of 13.24%. 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 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 March 31, 2025 is