Kaleyra, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables provide the assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 (in thousands):

	Fair Value Hierarchy as of December 31, 2019						Aggregate
	Level 1		Level 2		Level 3		Fair Value
Marketable securities
Mutual funds (1)	$	5,124	$	—	$	—	$	5,124
Total Marketable Securities	$	5,124	$	—	$	—	$	5,124
Liabilities
Interest Rate Swap (2)	$	—	$	80	$	—	$	80
Preference shares (3)		—		—		2,530		2,530
Debt for forward share purchase agreements (4)		—		34,059		—		34,059
Total Liabilities	$	—	$	34,139	$	2,530	$	36,669

	Fair Value Hierarchy as of December 31, 2018							Aggregate
	Level 1		Level 2			Level 3		Fair Value
Marketable securities
Mutual funds (1)	$	3,151	$	—		$	—	$	3,151
Total Marketable Securities	$	3,151	$	—		$	—	$	3,151
Liabilities
Interest Rate Swap (2)	$	—	$	97		$	—	$	97
Foreign Exchange Forward (2)		—		(56	)		—		(56	)
Preference shares (3)		—		—			1,834		1,834
Contingent consideration for Solutions Infini acquisition (4)		—		—			482		482
Total Liabilities	$	—	$	41		$	2,316	$	2,357

Summary of Values of Marketable Securities

Values of marketable securities as of December 31, 2019 and 2018 were as follows (in thousands):

	As of December 31,
	2019									2018
	Cost		Unrealized gains		Unrealized losses			Fair value		Cost		Unrealized gains		Unrealized losses			Fair value
Mutual funds	$	5,129	$	1	$	(6	)	$	5,124	$	3,180	$	—	$	(29	)	$	3,151

Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis and Realized and Unrealized Gains (Losses)

The following tables present changes during the years ended December 31, 2019 and 2018 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the consolidated balance sheets at December 31, 2019 and 2018 (in thousands):

	Fair Value Beginning of Year		Net Realized and Unrealized Gains (Losses) Included in Income			Other Comprehensive Income (Loss)			Settlements, Net			Change in scope of consolidation		Gross Transfers Out			Fair Value End of Year
December 31, 2018
Liabilities:
Preference shares	$	—	$	639		$	(6	)	$	—		$	1,201	$	—		$	1,834
Contingent consideration for Solutions Infini acquisition		2,232		(71	)		(72	)		(1,137	)		—		(470	)		482
December 31, 2019
Liabilities:
Preference shares		1,834		753			(57	)		—			—		—			2,530
Contingent consideration for Solutions Infini acquisition		482		(15	)		23			(490	)		—		—			—

Summary of Net Realized and Unrealized Gains and Losses Included in Income Related to Level 3 Liabilities

Net realized and unrealized gains and losses included in income related to Level 3 liabilities shown above are reported in the consolidated statements of operations as follows (in thousands):

	Research and development			Sales and marketing			General and administrative			Financial expense, net			Foreign currency loss		Total
December 31, 2018
Liabilities:
Preference shares	$	(249	)	$	(99	)	$	(200	)	$	(91	)	$	—	$	(639	)
Contingent consideration for Solutions Infini acquisition		—			—			—			(22	)		93		71
December 31, 2019
Liabilities:
Preference shares		(225	)		(89	)		(180	)		(259	)		—		(753	)
Contingent consideration for Solutions Infini acquisition		—			—			—			(3	)		18		15