We follow authoritative guidance (GAAP) which requires that assets and liabilities carried at fair value be classified and disclosed in of the established categories. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The categories are defined as follows:

 

• Level Quoted prices in active markets for identical assets.

• Level Observable market-based inputs or unobservable inputs that are corroborated by market data.

• Level Significant inputs to the valuation model are unobservable inputs.

 

The following table presents items required to be measured at fair value on a recurring basis by the level in which they are classified within the valuation hierarchy as follows:

 

 

 

 

Under the Infitrak Agreement (See Note ), we were required to make annual payments to the former owners based on future growth in gross profit (as defined in the Infitrak Earn-Out Agreement). During the year ended we made both payments which totaled CDN (). The contingent consideration payable was a standalone liability that was measured at fair value on a recurring basis for which there is available quoted market price, principal market or market participants. As such, the inputs for this instrument were unobservable and therefore classified as Level inputs. This contingent consideration liability was valued using a discounted cash flow model based on internal forecasts and our current cost of borrowing. There were changes to the valuation methodology during the period.

 

The contingent consideration arising from this agreement was our only Level asset or liability. The following table presents a roll forward of the contingent consideration payable for the years ended and (in thousands):