Company: IBTA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-025593
Chunk: 131

Company: Ibotta, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 131
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 Condensed Financial Statements(unaudited)

6. Fair Value Measurements 

The following tables present information about financial instruments measured at fair value on a recurring basis (in thousands): March 31, 2025TotalLevel 1Level 2Level 3Assets:Cash equivalents$294,779 $294,779 $— $— Total $294,779 $294,779 $— $— December 31, 2024TotalLevel 1Level 2Level 3Assets:Cash equivalents$346,070 $346,070 $— $— Total $346,070 $346,070 $— $— The Company’s cash equivalents are held in money market funds, which are measured using quoted prices for identical assets in active markets and are therefore classified as Level 1 in the fair value hierarchy.Convertible Notes Derivative LiabilityAs discussed in Note 5 – Long-Term Debt, the convertible notes held prior to the IPO contained certain embedded features that were required to be bifurcated and recorded separately from the debt host as a derivative liability at fair value. The following table summarizes the activity related to the fair value of the convertible notes derivative liability (in thousands):Three months ended March 31,2024Fair value at beginning of period$25,400 Change in fair value1,700 Fair value at end of period$27,100 Equity InvestmentOn July 2, 2019, the Company acquired 628,930 shares of the Series A Preferred Stock of a privately held software company in exchange for cash consideration of $0.8 million. The investment represents a minority interest, and the Company has determined that it does not have significant influence over the company. The preferred shares comprising the investment are illiquid, and the fair value is not readily determinable. The Company has elected the measurement alternative to measure this investment at cost, less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. 

During the three months ended March 31, 2025 and 2024, the Company recorded no adjustments to the equity investment. Since inception, the Company has recorded positive cumulative adjustments in the equity investment of $8.3 million and negative cumulative adjustments of $4.5 million. 

7. Operating Leases

The Company’s leases primarily include office space for its corporate headquarters. Our current headquarters lease expires in October 2025,