The carrying amounts of the Company's cash and cash equivalents, accounts receivable, accounts payable and current accrued liabilities approximate their fair value as recorded due to the short-term maturity of these instruments, which approximates fair value. The Company’s outstanding obligations on its ABL credit facility are deemed to be at fair value as the interest rates on these debt obligations are variable and consistent with prevailing rates. The Company believes the carrying value of its capital lease obligations represents fair value

 

The Company's long-term debt instruments are recorded at their carrying values in the consolidated balance sheets, which differ from their respective fair values. The fair values of the long-term debt instruments are derived from Level inputs.  The fair value amount of the Long-term debt instruments at for the Successor and at for the Predecessor is presented in the table below based on the prevailing interest rates and trading activity of the Notes.

 

		Successor								Predecessor
		January 31,								October 31,
		2019								2018
(in thousands)		Carrying Value				Fair Value				Carrying Value				Fair Value
Senior secured notes		$	-			$	-			$	167,553			$	178,025
Seller notes			-				-				8,292				8,292
Term loans			357,000				346,959				-				-
Capital lease obligations			632				632				653				653

 

In connection with the acquisition of Camfaud in former Camfaud shareholders were eligible to receive earnout payments (“deferred consideration”) of up to million if certain Earnings before interest, taxes, depreciation, and amortization (EBITDA) targets were met.

 

In accordance with ASC the Company reviewed the deferred consideration on a quarterly basis in order to determine its fair value. Changes in the fair value of the liability are recorded within general and administrative expenses in the consolidated statements of income in the period in which the change was made. The Company estimated the fair value of the deferred consideration based on its probability assessment of Camfaud’s EBITDA achievements during the year earnout period. In developing these estimates, the Company considered its revenue and EBITDA projections, its historical results, and general macro-economic environment and industry trends. This fair value measurement was based on significant revenue and EBITDA inputs observed in the market, which represents a Level measurement.

 

The fair value of the deferred consideration as of for the Successor and at for the Predecessor was million and million, respectively. The change in the fair value measurement of the deferred consideration was significant to either the Predecessor or Successor periods.

 

The Company's non-financial assets, which primarily consist of property and equipment, goodwill and other intangible assets, are required to be carried at fair value on a recurring basis and are reported at carrying value. However, on a periodic basis or whenever events or changes in circumstances indicate that their carrying value be fully recoverable (and at least annually for goodwill, non-financial instruments are assessed for impairment and, if applicable, written down to and recorded at fair value. 

 

The following table presents information about Industrea’s assets that are measured on a recurring basis as of and and indicates the fair value hierarchy of the valuation techniques that Industrea utilized to determine such fair value.

Quoted Prices

Significant Other

Significant Other

in Active Markets

Observable Inputs

Unobservable Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Cash

$

238,473,957

Quoted Prices

Significant Other

Significant Other

in Active Markets

Observable Inputs

Unobservable Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Cash and marketable securities held in Trust Account

$

235,195,034

 

All of the balance in the Trust Account as of was held in cash and approximately of the balance in the Trust Account as of was held in cash.

The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, accounts payable and current accrued liabilities approximate their fair value as recorded due to the short-term maturity of these instruments, which approximates fair value. The Company’s outstanding obligations on its revolving line of credit and UK revolver are deemed to be at fair value as the interest rates on these debt obligations are variable and consistent with prevailing rates. The Company believes the carrying value of our capital lease obligations represents fair value.

 

The Company’s long-term debt instruments are recorded at their carrying values in the consolidated balance sheets, which differ from their respective fair values. The fair value amount of the long-term debt instruments are derived from observable Level inputs. The fair value amount of the long-term debt instruments at and is presented in the table below based on the prevailing interest rates and trading activity of the notes.

 

		2018								2017
		Carrying Value				Fair Value				Carrying Value				Fair Value
Senior secured notes		$	167,553,000			$	178,025,063			$	152,553,000			$	156,366,825
Seller notes			8,292,050				8,292,050				8,626,150				8,626,150
Capital lease obligations			652,752				652,752				845,791				845,791

 

In connection with the acquisition of Camfaud, shareholders were eligible to receive earn-out payments of up to if certain EBITDA targets were met (see Note ).

 

As a result, the Company estimated the fair value of the contingent earn-out liability based on its probability assessment of Camfaud EBITDA achievements during the -year earn-out period. In developing these estimates, the Company considered its revenue and EBITDA projections, its historical results, and general macro-economic environment and industry trends. This fair value measurement was based on significant revenue and EBITDA inputs observed in the market, which represents a Level measurement. Level instruments are valued based on unobservable inputs that are supported by little or market activity and reflect the Company’s own assumptions in measuring fair value.

 

In accordance with the FASB’s standard on business combinations, the Company reviewed the contingent earn-out liability on a quarterly basis in order to determine its fair value. Changes in the fair value of the liability are recorded within operating expenses in the period in which the change was made. The change in the fair value of the contingent earn-out was material from the date of acquisition to the year ending

 

The following table represents a reconciliation of the change in the fair value measurement of the contingent earn-out liability for the years ended and respectively the change in fair values for the periods presented are material:

 

		2018				2017
Beginning balance		$	968,783			$	-
Fair value of contingent earnout liability initially recorded in connection with Camfaud acquisition			-				908,266
Change in fair value of contingent earnout liability included in operating expenses			526,817				-
Change fair value due to foreign currency			(37,523	)			60,517
Ending balance		$	1,458,077			$	968,783

 

The Company’s non-financial assets, which primarily consist of property and equipment, goodwill and other intangible assets, are required to be carried at fair value on a recurring basis and are reported at carrying value. However, on a periodic basis or whenever events or changes in circumstances indicate that their carrying value be fully recoverable (and at least annually for goodwill), non-financial instruments are assessed for impairment and, if applicable, written down to and recorded at fair value. adjustments were made to the carrying value of any such assets due to lack of recoverability or impairment for the fiscal years ended or