Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 17, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-37745 | ||
Entity Registrant Name | RealNetworks, Inc. | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 91-1628146 | ||
Entity Address, Address Line One | 1501 First Avenue South, Suite 600 | ||
Entity Address, City or Town | Seattle | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98134 | ||
City Area Code | 206 | ||
Local Phone Number | 674-2700 | ||
Trading Symbol | RNWK | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0001046327 | ||
Amendment Flag | false | ||
Document Transition Report | false | ||
Title of 12(g) Security | None | ||
Entity Common Stock, Shares Outstanding | 47,256,668 | ||
Entity Public Float | $ 73,000,000 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock | ||
Convertible Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Share Purchase Rights |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Name | BDO USA, LLP |
Auditor Location | Spokane, Washington |
Auditor Firm ID | 243 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 27,109,000 | $ 23,940,000 |
Trade accounts receivable, net of allowances | 9,556,000 | 10,229,000 |
Deferred costs, current portion | 49,000 | 196,000 |
Investments | 1,755,000 | 9,965,000 |
Prepaid expenses and other current assets | 3,166,000 | 3,480,000 |
Total current assets | 41,635,000 | 47,810,000 |
Equipment, software, and leasehold improvements, at cost: | ||
Equipment and software | 29,464,000 | 30,726,000 |
Leasehold improvements | 2,750,000 | 2,776,000 |
Total equipment, software, and leasehold improvements | 32,214,000 | 33,502,000 |
Less accumulated depreciation and amortization | 30,744,000 | 31,631,000 |
Net equipment, software, and leasehold improvements | 1,470,000 | 1,871,000 |
Operating lease assets | 3,992,000 | 7,937,000 |
Restricted cash equivalents | 1,630,000 | 1,630,000 |
Other assets | 2,878,000 | 4,150,000 |
Deferred costs, non-current portion | 0 | 74,000 |
Deferred tax assets, net | 727,000 | 909,000 |
Goodwill | 16,976,000 | 17,375,000 |
Total assets | 69,308,000 | 81,756,000 |
Current liabilities: | ||
Accounts payable | 2,578,000 | 2,750,000 |
Accrued and other current liabilities | 13,286,000 | 17,850,000 |
Deferred revenue, current portion | 2,614,000 | 2,122,000 |
Total current liabilities | 18,478,000 | 22,722,000 |
Deferred revenue, non-current portion | 183,000 | 45,000 |
Deferred tax liabilities, net | 1,132,000 | 1,129,000 |
Operating Lease, Liability, Noncurrent | 2,300,000 | 6,837,000 |
Long-term Debt | 0 | 2,895,000 |
Other long-term liabilities | 1,142,000 | 2,241,000 |
Total liabilities | 23,235,000 | 35,869,000 |
Commitments and contingencies (Note 16.) | ||
Shareholders’ equity: | ||
Common Stock, Value, Issued | 47,000 | 38,000 |
Additional paid-in capital | 678,381,000 | 655,606,000 |
Accumulated other comprehensive loss | (61,520,000) | (60,641,000) |
Accumulated deficit | (570,843,000) | (548,862,000) |
Total shareholders’ equity | 46,073,000 | 46,149,000 |
Noncontrolling interests | 0 | (262,000) |
Total equity | 46,073,000 | 45,887,000 |
Total liabilities and equity | 69,308,000 | 81,756,000 |
Preferred stock, Undesignated series | ||
Shareholders’ equity: | ||
Preferred stock | 0 | 0 |
Preferred stock, Series A | ||
Shareholders’ equity: | ||
Preferred stock | 0 | 0 |
Series B Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock | $ 8,000 | $ 8,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 250,000,000 | 250,000,000 |
Common stock, issued | 47,257,000 | 38,424,000 |
Common stock, outstanding | 47,257,000 | 38,424,000 |
Preferred stock, Series A | ||
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, authorized | 200,000 | 200,000 |
Preferred stock, Undesignated series | ||
Preferred stock, authorized | 51,700,000 | 51,700,000 |
Series B Preferred Stock | ||
Preferred stock, shares issued | 8,065,000 | 8,065,000 |
Preferred stock, shares outstanding | 8,065,000 | 8,065,000 |
Preferred stock, authorized | 8,100,000 | 8,100,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Net revenue | $ 58,183 | $ 68,062 |
Cost of revenue | 13,756 | 16,465 |
Gross profit | 44,427 | 51,597 |
Operating expenses: | ||
Research and development | 23,132 | 24,319 |
Sales and marketing | 22,520 | 21,042 |
General and administrative | 17,559 | 17,331 |
Restructuring and other charges | 3,129 | 2,529 |
Operating Expenses, Total | 65,300 | 56,621 |
Operating Income (Loss), Total | (20,873) | (5,024) |
Other income (expenses): | ||
Interest expense | (168) | (20) |
Interest income | 34 | 38 |
(Loss) gain on equity and other investments, net | (4,927) | 111 |
Other income (expense), net | 2,024 | (164) |
Total other expenses, net | (140) | (35) |
Loss from continuing operations before income taxes | (21,013) | (5,059) |
Income tax expense | 479 | 55 |
Net loss from continuing operations | (21,492) | (5,114) |
Net loss from discontinued operations, net of tax | (733) | (206) |
Net loss | (22,225) | (5,320) |
Net Income (Loss) Attributable to Noncontrolling Interest | (244) | (284) |
Net loss attributable to noncontrolling interest of discontinued operations | 0 | (184) |
Net loss attributable to RealNetworks | (21,981) | (4,852) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (21,248) | (4,830) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (733) | $ (22) |
Income (Loss) from Continuing Operations, Per Basic Share | $ (0.48) | $ (0.13) |
Discontinued operations | (0.02) | 0 |
Total net loss per share - Basic | (0.50) | (0.13) |
Continuing operations | (0.48) | (0.13) |
Discontinued operations | (0.02) | 0 |
Total net loss per share - Diluted | $ (0.50) | $ (0.13) |
Shares used to compute basic net loss per share | 44,277 | 38,272 |
Shares used to compute diluted net loss per share | 44,277 | 38,272 |
Fair value adjustments to contingent consideration liability | $ (1,040) | $ (8,600) |
Statement of Comprehensive Inco
Statement of Comprehensive Income (Statement) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (22,225) | $ (5,320) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Net of Tax | (879) | 909 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (23,104) | (4,411) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (244) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (468) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (22,860) | (3,943) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (879) | 909 |
Other Comprehensive Income (Loss), Net of Tax | $ (879) | $ 682 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net loss from continuing operations | $ (21,492,000) | $ (5,114,000) |
Adjustment to reconcile net loss from continuing operations to net cash used in operating activities: | ||
Depreciation and amortization | 749,000 | 944,000 |
Stock-based compensation | 4,224,000 | 1,420,000 |
Loss (gain) on equity and other investments, net | 4,927,000 | (111,000) |
Operating Lease, Impairment Loss | 2,461,000 | 1,055,000 |
Foreign currency (gain) loss | 23,000 | (330,000) |
Fair value adjustments to contingent consideration liability | (1,040,000) | (8,600,000) |
Net change in certain operating assets and liabilities: | ||
Trade accounts receivable | 523,000 | 2,587,000 |
Prepaid expenses, operating lease and other assets | 2,332,000 | 3,716,000 |
Accounts payable | (83,000) | (1,342,000) |
Accrued, lease and other liabilities | 634,000 | (2,777,000) |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (15,041,000) | (8,083,000) |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 0 | (2,555,000) |
Net Cash Provided by (Used in) Operating Activities | (15,041,000) | (10,638,000) |
Cash flows from investing activities: | ||
Purchases of equipment, software, and leasehold improvements | (466,000) | (408,000) |
Deconsolidation of subsidiary | 0 | |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (1,302,000) | (408,000) |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 2,048,000 | (2,160,000) |
Net Cash Provided by (Used in) Investing Activities | 746,000 | (2,568,000) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 534,000 | 0 |
Proceeds from Issuance of Preferred Stock and Preference Stock | 0 | 10,000,000 |
Tax payments from shares withheld upon vesting of restricted stock | (186,000) | (26,000) |
Proceeds from notes payable and long-term debt | 0 | 2,876,000 |
Repayments of notes payable and long-term debt | 0 | (3,922,000) |
Other financing activities | 0 | 2,106,000 |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 17,962,000 | 11,034,000 |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | 0 | 4,945,000 |
Net Cash Provided by (Used in) Financing Activities | 17,962,000 | 15,979,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (498,000) | 618,000 |
Net increase in cash, cash equivalents and restricted cash | 3,169,000 | 3,391,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | 28,739,000 | 25,570,000 |
Supplemental disclosure of cash flow information: | ||
us-gaap_DeferredIncomeTaxExpenseBenefitcontinuing operations | 201,000 | (191,000) |
Increase (Decrease) in Operating Lease Liability | (3,596,000) | 0 |
Deconsolidation, Gain (Loss), Amount | (1,961,000) | 0 |
Gain (Loss) on Extinguishment of Debt | (2,897,000) | 0 |
Fair value adjustments to contingent consideration liability | (1,040,000) | (8,600,000) |
Payment for Contingent Consideration Liability, Financing Activities | (2,500,000) | 0 |
Cash Divested from Deconsolidation | (836,000) | |
Common Stock | ||
Supplemental disclosure of cash flow information: | ||
Proceeds from Issuance or Sale of Equity | 20,114,000 | 0 |
Continuing Operations | ||
Supplemental disclosure of cash flow information: | ||
Cash received from income tax refunds | 45,000 | 2,169,000 |
Cash paid for income taxes | 540,000 | 1,063,000 |
Decrease in accrued purchases of equipment, software, and leasehold improvements | (48,000) | (44,000) |
Noncash or Part Noncash Acquisition, Investments Acquired | 0 | 9,268,000 |
Discontinued Operations | ||
Supplemental disclosure of cash flow information: | ||
Cash received from income tax refunds | 0 | 33,000 |
Cash paid for income taxes | 0 | 331,000 |
Cash paid for interest expense | $ 0 | $ 317,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST - USD ($) | Total | Preferred Class B | Preferred Stock | Preferred StockPreferred Class B | Common Stock | Common StockCommon Stock | Additional Paid-In Capital | Additional Paid-In CapitalPreferred Class B | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Parent [Member] | Parent [Member]Preferred Class B | Noncontrolling Interest |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 38,273,000 | $ 0 | $ 38,000 | $ 644,070,000 | $ (61,323,000) | $ (544,010,000) | $ 38,775,000 | $ (502,000) | |||||
Additional funding in exchange for Preferred Stock | 800,000 | ||||||||||||
Balances (shares) at Dec. 31, 2019 | 0 | 38,227,000 | |||||||||||
Common stock issued for exercise of stock options, employee stock purchase plan, and vesting of restricted shares, net of tax payments from shares withheld upon vesting of restricted stock (shares) | 197,000 | ||||||||||||
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | $ 0 | ||||||||||||
Stock Issued During Period, Shares, New Issues | 8,065,000 | ||||||||||||
Stock Issued During Period, Value, New Issues | $ 8,000 | $ 9,992,000 | |||||||||||
Stock Issued During Period, Value, Stock Options Exercised | (26,000) | $ (1,000) | (26,000) | (26,000) | |||||||||
Napster acquisition | 10,000,000 | 10,000,000 | |||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 1,420,000 | 1,420,000 | 1,420,000 | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | 909,000 | 909,000 | 909,000 | ||||||||||
Net Income (Loss) Attributable to Parent | (4,852,000) | (4,852,000) | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | (284,000) | (468,000) | |||||||||||
Net loss | (5,320,000) | $ (5,320,000) | |||||||||||
Stockholders' Equity, Other | 631,000 | 150,000 | (227,000) | (77,000) | 708,000 | ||||||||
Balances (shares) at Dec. 31, 2020 | 8,065,000 | 38,424,000 | |||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 45,887,000 | $ 8,000 | $ 38,000 | 655,606,000 | (60,641,000) | (548,862,000) | 46,149,000 | (262,000) | |||||
Common stock issued for exercise of stock options, employee stock purchase plan, and vesting of restricted shares, net of tax payments from shares withheld upon vesting of restricted stock (shares) | 583,000 | ||||||||||||
Stock Issued During Period, Shares, New Issues | 0 | 8,250,000 | |||||||||||
Stock Issued During Period, Value, New Issues | $ 20,114,000 | $ 0 | $ 8,000 | $ 20,106,000 | $ 20,114,000 | ||||||||
Stock Issued During Period, Value, Stock Options Exercised | (349,000) | (348,000) | (349,000) | ||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,222,000 | 2,222,000 | 2,222,000 | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | (879,000) | (879,000) | (879,000) | ||||||||||
Net Income (Loss) Attributable to Parent | (21,981,000) | (21,981,000) | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | (244,000) | (244,000) | |||||||||||
Net loss | (22,225,000) | ||||||||||||
Noncontrolling Interest, Decrease from Deconsolidation | 506,000 | 99,000 | |||||||||||
Stockholders' Equity, Other | 605,000 | 99,000 | |||||||||||
Balances (shares) at Dec. 31, 2021 | 8,065,000 | 47,257,000 | |||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 46,073,000 | $ 8,000 | $ 47,000 | $ 678,381,000 | $ (61,520,000) | $ (570,843,000) | $ 46,073,000 | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1. Description of Business and Summary of Significant Accounting Policies Description of Business. RealNetworks provides digital media software and services to consumers, mobile carriers, device manufacturers, system integrators, and other businesses. Consumers use our digital media products and services to store, organize, play, manage and enjoy their digital media content, either directly from us or through our distribution partners. We have recently developed a new generation of artificial intelligence (AI)-based products and solutions. The main two products and key investment initiatives in our AI portfolio are SAFR, our AI-based computer vision platform, and KONTXT, our natural language processing-based message classification and analysis platform. Rhapsody International, Inc. (doing business as Napster) offers a comprehensive set of digital music products and services designed to provide consumers with broad access to digital music. Napster was held-for-sale and treated as discontinued operations for accounting and disclosure purposes as of the third quarter of 2020. The sale of Napster was completed during the fourth quarter of 2020. The results of operations and cash flows for these discontinued operations were segregated from the results of continuing operations and segment results, and Napster’s operating results and financial condition were recast to conform to this presentation. The notes to the consolidated financial statements, unless otherwise indicated, are on a continuing operations basis. See Note 4. Dispositions for additional details regarding the sale of Napster. Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue and cash flow. In this Annual Report on Form 10-K for the year ended December 31, 2021 (10-K), RealNetworks, Inc. and subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”. Basis of Presentation. The consolidated financial statements include the accounts of the Company and its subsidiaries in which it has a more than 50% voting interest. Noncontrolling interests primarily represent third-party ownership in the equity of Scener Inc. ("Scener"), which was deconsolidated on June 30, 2021, and are reflected separately in the Company's financial statements. See Note 19. Related Party Transactions for additional details. Intercompany balances and transactions have been eliminated in consolidation. Liquidity and Capital Resources. The Company continues to incur operating losses from continuing operations, including net operating losses of $20.9 million, and $5.0 million for the years ended December 31, 2021 and 2020, respectively. The Company had an accumulated deficit of $570.8 million and $548.9 million as of December 31, 2021 and 2020, respectively. The Company believes that its cash and cash equivalents of $27.1 million as of December 31, 2021 is adequate to fund the Company's operations for at least one year from the date these financial statements were issued. Risks and Uncertainties. In March 2020, the World Health Organization declared the outbreak of the coronavirus that causes COVID-19 to be a global pandemic. As the virus spread throughout the U.S. and the world, authorities implemented numerous measures to contain the virus, including travel bans and restrictions, quarantines, shelter-in-place orders, business limitations, and shutdowns. In addition to the pandemic's widespread impact on public health and global society, reactions to the pandemic as well as measures taken to contain the virus have caused significant turmoil to the global economy and financial markets. Moreover, similar to other companies, we have taken steps to support the health and well-being of our employees, customers, partners and communities, which include working remotely and learning to operate our businesses in a fundamentally different way. The COVID-19 pandemic, including the emergence of variants such as the delta and omicron variants, and the resultant economic instability and financial market turmoil has added complexity, uncertainty and risk to nearly all aspects of our business. It is difficult to predict the near-term and long-term impacts that the pandemic will have on our results from operations, financial condition, liquidity and cash flows. In the preparation of our financial statements, certain estimates and assumptions regarding these impacts have been made, which could change in future periods and which could differ from actual outcomes. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents. Cash and cash equivalents include cash on hand and highly-liquid investments with original maturities of three months or less. Trade Accounts Receivable. Trade accounts receivable consist of amounts due from customers and do not bear interest. The allowance for doubtful accounts and sales returns is our estimate of the amount of probable credit losses and returns in our existing accounts receivable. We determine the allowances based on analysis of historical bad debts, customer concentrations, changes in customer credit-worthiness, return history and current economic trends. We review the allowances for doubtful accounts and sales returns quarterly. Past due balances over 90 days and specified other balances are reviewed individually for collectability. All other balances are reviewed on an aggregate basis. Account balances are written off against the allowance after all reasonable means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance sheet credit exposure related to our customers. Investments. Investments are equity securities for which there is a determinable fair market value. See Note 5. Fair Value Measurements for additional information. Unrealized gains and losses from the change in fair market value, as well as realized gains and losses from sales, are recorded to Gain on equity and other investments, net on the consolidated statements of operations. Realized and unrealized gains and losses on investments are determined using the specific identification method. Concentration of Credit Risk. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain cash and cash equivalents that may exceed the insured limits by the Federal Deposit Insurance Corporation. However, we reduce this credit risk by placing cash and cash equivalents with major financial institutions that the Company assesses to be of high-credit quality. We derive a portion of our revenue from a large number of individual consumers spread globally. We also derive revenue from several large customers. If the financial condition or results of operations of any one of the large customers deteriorates substantially, our operating results could be adversely affected. To reduce credit risk, management performs ongoing credit evaluations of the financial condition of significant customers. We do not generally require collateral and we maintain an allowance for estimated credit losses on customer accounts when considered necessary. Depreciation and Amortization. Depreciation of equipment and software, as well as amortization of leasehold improvements is computed using the straight-line method over the lesser of the estimated useful lives of the assets or the related lease term. The useful life of equipment and software is generally three five Depreciation and amortization expense of these assets during the years ended December 31, 2021 and 2020 was $0.7 million and $0.9 million, respectively. Equity Method Investment. We use the equity method in circumstances where we have the ability to exert significant influence, but not control, over an investee or joint venture. We initially record our investment based on a fair value analysis of the investment. We record our percentage interest in the investee's recorded income or loss and changes in the investee's capital under this method, which will increase or decrease the reported value of our investment. We evaluate impairment of an investment accounted for under the equity method if events and circumstances warrant. An impairment charge would be recorded if a decline in the fair value of an equity investment below its carrying amount were determined to be other than temporary. In determining if a decline is other than temporary, we consider factors such as the length of time and extent to which the fair value of the investment has been less than the carrying amount of the investee or joint venture, the near-term and longer-term operating and financial prospects of the investee or joint venture and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery. Deferred Costs. Included in deferred costs are financing fees associated with our revolving line of credit. These fees are amortized over the term of the credit agreement. Amortization of the financing fees are recorded in interest expense, within other income (expenses). We also defer certain costs on projects for service revenues and system sales. Deferred costs consist primarily of direct and incremental costs to customize and install systems, as defined in individual customer contracts, including costs to acquire hardware and software from third parties and payroll and related costs for employees and other third parties. Deferred costs are capitalized during the implementation period. We recognize such costs as a component of cost of revenue, the timing of which is dependent upon the revenue recognition policy by contract. At each balance sheet date, we review deferred costs to ensure they are ultimately recoverable. Definite-Lived Tangible and Right-of-Use Operating Lease Assets. Definite-lived tangible assets include equipment, software, leasehold improvements. Definite-lived assets are amortized on a straight line basis over their estimated useful lives. Operating leases are included in Operating lease assets, Other current liabilities, and Long-term lease liabilities on our consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We review these assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. If the carrying amount of an asset group is not recoverable, an impairment loss is recognized if the carrying amount of the asset group exceeds its estimated fair value, which is generally determined as the present value of estimated future cash flows to a market participant. Our impairment analysis is based on significant assumptions of future results, including operating and cash flow projections. Significant or sustained declines in future revenue or cash flows, or adverse changes in our business climate, among other factors, could result in the need to record an impairment charge in future periods. Goodwill. Assets acquired and liabilities assumed in a business acquisition are measured at fair value under the purchase accounting method and any goodwill is recognized as the excess of the total purchase price over the fair value of assets acquired and liabilities assumed. We test goodwill for impairment on an annual basis, in our fourth quarter, or more frequently if circumstances indicate reporting unit carrying values may exceed their fair values. Circumstances that may indicate a reporting unit's carrying value exceeds its fair value include, but are not limited to: poor economic performance relative to historical or projected future operating results; significant negative industry, economic or company specific trends; changes in the manner of our use of the assets or the plans for our business; and loss of key personnel. When evaluating goodwill for impairment, based upon our annual test or due to changes in circumstances described above, we first perform a qualitative assessment to determine if the fair value of a reporting unit is more likely than not less than the reporting unit's carrying amount including goodwill. If this assessment indicates impairment is more likely than not, we then compare the carrying value of the reporting unit to the estimated fair value of the reporting unit. If the carrying value of the reporting unit exceeds the estimated fair value, we then calculate the implied estimated fair value of goodwill for the reporting unit and compare it to the carrying amount of goodwill for the reporting unit. If the carrying amount of goodwill exceeds the implied estimated fair value, an impairment charge to current operations is recorded to reduce the carrying value to implied estimated value. Significant judgment is required in determining the reporting units and assessing fair value of the reporting units. Fair Value. Fair value is the price that would be received from selling an asset or paid in transferring a liability in an orderly transaction between market participants at the measurement date. Our fair value measurements consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. Fair values are determined based on three levels of inputs: • Level 1: Quoted prices in active markets for identical assets or liabilities • Level 2: Directly or indirectly observed inputs for the asset or liability, including quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active • Level 3: Significant unobservable inputs that reflect our own estimates of assumptions that market participants would use Research and Development. Costs incurred in research and development are expensed as incurred. Software development costs are capitalized when a product’s technological feasibility has been established through the date the product is available for general release to customers. Other than internal use software, we have not capitalized any software development costs, as technological feasibility is generally not established until a working model is completed, at which time substantially all development is complete. Revenue Recognition. We recognize revenue from contracts with customers as control of the promised good or service is transferred. Please refer to Note 3. Revenue Recognition for further details regarding our recognition policies. Advertising Expenses. We expense the cost of advertising and promoting our products as incurred. These costs are included in sales and marketing expense and totaled $5.2 million in 2021 and $5.9 million in 2020. Foreign Currency. The functional currency of the Company’s foreign subsidiaries is generally the currency of the country in which the subsidiary operates. Assets and liabilities of foreign operations are translated into U.S. dollars using rates of exchange in effect at the end of the reporting period. The net gain or loss resulting from translation is shown as translation adjustment and included in Accumulated Other Comprehensive Income (AOCI) in shareholders’ equity. Income and expense accounts are translated into U.S. dollars using average rates of exchange. Gains and losses from foreign currency transactions are included in other income (expense), net on the consolidated statements of operations. Accounting for Taxes Collected from Customers. Our revenues are reported net of sales and other transaction taxes that are collected from customers and remitted to taxing authorities. Income Taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for temporary differences between financial reporting basis and tax basis of our assets and liabilities and operating loss and tax credit carryforwards. We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the appropriate taxing jurisdictions. Adjustments to the valuation allowance could be required in the future if we estimate that the amount of deferred tax assets to be realized is more or less than the net amount we have recorded. Any increase or decrease in the valuation allowance could have the effect of increasing or decreasing the income tax provision in the statement of operations. Deferred tax assets and liabilities and operating loss and tax credit carryforwards are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carryforwards are expected to be recovered or settled. We file numerous consolidated and separate income tax returns in the U.S. including federal, state and local, as well as foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal income tax examinations for tax years before 2013 or state, local, or foreign income tax examinations for years before 1993. We are currently under audit by various states and foreign jurisdictions for certain tax years subsequent to 1993. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. We recognize accrued interest and penalties related to uncertain tax positions as a component of income tax expense. Stock-Based Compensation. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. We use the Black-Scholes option-pricing model or other appropriate valuation models such as Monte Carlo simulation to determine the fair value of stock-based option awards. The fair value of restricted stock awards is based on the closing market price of our common stock on the grant date of the award. Generally, we recognize the compensation cost for awards on a straight-line basis for the entire award, over the applicable vesting period. For performance-based awards, expense is recognized when it is probable the performance goal will be achieved, however if the likelihood becomes improbable, that expense is reversed. The valuation models for stock-based option awards require various judgmental assumptions including volatility in our common stock price and expected option life. If any of the assumptions used in the valuation models change significantly, stock-based compensation expense for new awards may differ materially in the future from the amounts recorded in the consolidated statements of operations. For all awards, we also estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In August 2020, the Financial Accounting Standards Board ("FASB") issued new guidance that simplifies the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and the number of embedded conversion features that could be recognized separately from the primary contract. The guidance enhances transparency and improves disclosures for convertible instruments and earnings per share guidance. It is effective for annual reporting periods beginning after December 15, 2023, with early adoption permitted. This update permits the use of either the modified retrospective or fully retrospective method of transition. We are in the process of evaluating the effect that this new guidance will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued new guidance simplifying the test for goodwill impairment. The new guidance eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the reporting unit's carrying amount exceeds the reporting unit's fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2022, with early adoption permitted. We do not currently expect the adoption to have a material impact on our consolidated financial statements and related disclosures. In June 2016, the FASB issued new guidance amending existing guidance for the accounting of credit losses on financial instruments. Under the new guidance, the valuation allowance for credit losses is expected to be incurred over the financial asset’s contractual term. We reviewed the new credit loss standard and determined that it applies to our accounts receivable, which are typically of short duration and for which we have not historically experienced significant credit losses. This guidance is effective for us in fiscal years beginning after December 15, 2022 with any cumulative effect of adoption recorded as an adjustment to retained earnings. We are in the process of evaluating the effect that this new guidance will have on our consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 3. Revenue Recognition Performance Obligations We generate all of our revenue through contracts with customers. Revenue is either recognized over time as the service is provided, or at a point in time when the product is transferred to the customer, depending on the contract type. Our performance obligations typically have an original duration of one year or less. Our software licensing revenue stream generates revenue through the on-premises licensing of our codec technologies and integrated RealTimes platform. We recognize revenue upfront at the point in time when the software is made available to the customer. In cases where a sale or usage-based royalty is promised in exchange for a license of our codec technologies, revenue is recognized as the subsequent usage occurs for the contractual amount owed by the customer for that usage, as is allowed under the licensing of intellectual property section of Topic 606. Software licensing in our Mobile Services segment is invoiced on a monthly basis either based on usage of the respective product, or on a fixed fee basis. Our Consumer Media licensing is invoiced either quarterly or annually based on the usage of the respective product, or on a fixed fee basis. For each of these, the timing of payment generally does not vary significantly from the timing of invoice, however, certain of our long-term Consumer Media licensing contracts have extended payment schedules which may exceed one year. Our subscription services revenue stream allows customers to use hosted software over the respective contract period without taking possession of the technology. The stream is primarily comprised of our intercarrier messaging service, ringback tones, PC-based and mobile games subscriptions, and our RealPlayer and SuperPass services. Revenues related to subscription service products are recognized ratably over the contract period, or as we have the right to invoice as a practical expedient when that amount corresponds directly with the value to the customer of our performance completed to date. Consumer subscription products are paid in advance, typically on a monthly or quarterly basis. Subscription services offered to businesses are invoiced on a monthly basis, generally based upon the amount of usage for the previous month, and the timing of payment generally does not vary significantly from the timing of invoice. Our product sales revenue stream includes purchases of in-game virtual goods, mobile and wholesale games, as well as our RealPlayer product. Proceeds from sales of in-game virtual goods are initially recorded in deferred revenue and are recognized as revenues over 30 days, our estimate of the time period that end users benefit from these purchases and our related performance obligation is satisfied. Retail purchases are recognized and paid for at the point in time the product is made available to the end user. For games which are sold through third-party application storefronts, we evaluate the transaction for gross or net revenue recognition. As we typically are the primary obligor in our third-party transactions, we recognize revenues gross of any app store fees. We then receive monthly payments from the respective app store for all purchases within the respective month. Other revenues consist primarily of advertising and the distribution of third-party products, which are recognized and paid on a cost per impression or cost per download basis. Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Year ended December 31, 2021 Consumer Media Mobile Services Games Business Line Software License $ 5,076 $ 6,397 $ — Subscription Services 3,158 17,391 9,606 Product Sales 1,306 — 11,058 Advertising and Other 761 — 3,430 Total $ 10,301 $ 23,788 $ 24,094 Year ended December 31, 2020 Consumer Media Mobile Services Games Business Line Software License $ 5,957 $ 5,110 $ — Subscription Services 3,586 21,779 10,794 Product Sales 1,301 — 13,879 Advertising and Other 1,737 — 3,919 Total $ 12,581 $ 26,889 $ 28,592 The following table presents our disaggregated revenue by sales channel (in thousands): Year ended December 31, 2021 Consumer Media Mobile Services Games Sales Channel Business to Business $ 5,838 $ 23,450 $ 3,928 Direct to Consumer 4,463 338 20,166 Total $ 10,301 $ 23,788 $ 24,094 Year ended December 31, 2020 Consumer Media Mobile Services Games Sales Channel Business to Business $ 7,693 $ 26,495 $ 4,664 Direct to Consumer 4,888 394 23,928 Total $ 12,581 $ 26,889 $ 28,592 Contract Balances The timing of revenue recognition may differ from the timing of invoicing to our customers. We record accounts receivable when the right to consideration becomes unconditional, except for the passage of time. For certain contracts, payment schedules may exceed one year; for those contracts we recognize a long-term receivable. As of December 31, 2021 and 2020 our balance of long-term accounts receivable was $0.2 million and $0.6 million, respectively, and is included in other long-term assets on our consolidated balance sheets. The decrease in this balance from December 31, 2020 to December 31, 2021 is primarily due to the timing of expected cash receipts. During the year ended December 31, 2021, we recorded no impairments to our contract assets. We record deferred revenue when cash payments are received in advance of our completion of the underlying performance obligation. As of December 31, 2021 and 2020, we had deferred revenue balances of $2.8 million and $2.2 million, respectively, primarily due to deferred revenue associated with monthly subscriptions. Judgments and Estimates Our contracts with customers can include obligations to provide multiple services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together can require significant judgment. For example, certain contracts include the sale of software licenses or subscriptions as well as services to be delivered over time. Judgment is also required to determine the standalone selling price ("SSP") for each distinct performance obligation in these arrangements. We allocate revenue to each performance obligation based on the relative SSP. We determine SSP for performance obligations based on overall pricing objectives, which take into consideration observable prices and market conditions. For certain of our contracts, we recognize revenues using the sales- and usage-based exception as defined in the licensing guidance of Topic 606. For these contracts, we typically receive reporting of actual usage a quarter in arrears, and as such, we are required to estimate the current quarter's usage. To make these estimates, we utilize historical reporting information, as well as industry trends and interim reporting to quantify total quarterly usage. As actual usage information is received, we record a true-up in the following quarter to reflect any variance from our estimate. In the years ended December 31, 2021 and 2020, we did not record any material true-ups to our consolidated financial statements. Practical Expedients |
Acquisitions and Disposals
Acquisitions and Disposals | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Disposals | The following table summarizes the net loss from discontinued operations for the year ended December 31, 2020: 2020 Revenue $ 96,185 Cost of revenue 73,318 Gross profit 22,867 Operating expenses 24,734 Operating loss (1,867) Other income (expenses) 2,175 Income (loss) from discontinued operations before income taxes 308 Income tax expense 514 Net loss from discontinued operations (206) Noncontrolling interests in net income (loss) from discontinued operations (184) Net loss from discontinued operations attributable to RealNetworks $ (22) We recorded a gain on the sale of Napster in the amount of $1.9 million in 2020, which was recorded to Net loss from discontinued operations on the Consolidated Statements of Operations and included in Other income (expense) in the above table. The following table summarizes the gain recognized for the year ended December 31, 2020 from the sale of Napster: Net proceeds received (1) $ 22,849 Net assets disposed (20,935) Gain on sale of Napster 1,914 (1) Proceeds received were net of transaction costs, funds to minority shareholders and fair value adjustments to MelodyVR stock. The final gain on the sale of Napster was reduced primarily by claims against the $3.0 million indemnity escrow. Of this escrow amount, $2.0 million of cash was received by RealNetworks in the fourth quarter of 2021, $0.2 million in claims against the escrow were recognized in the first quarter of 2021, and the remaining $0.7 million was written off in the fourth quarter of |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5. Fair Value Measurements Items Measured at Fair Value on a Recurring Basis The following tables present information about our financial assets that have been measured at fair value on a recurring basis as of December 31, 2021 and 2020, and indicates the fair value hierarchy of the valuation inputs utilized to determine fair value (in thousands). Fair Value Measurements as of Amortized Cost as of December 31, 2021 December 31, 2021 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 27,109 $ — $ — $ 27,109 $ 27,109 Investments — — 1,755 1,755 N/A Restricted cash equivalents 1,630 — — 1,630 1,630 Total assets $ 28,739 $ — $ 1,755 $ 30,494 N/A Fair Value Measurements as of Amortized Cost as of December 31, 2020 December 31, 2020 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 23,940 $ — $ — $ 23,940 $ 23,940 Investments — — 9,965 9,965 N/A Restricted cash equivalents 1,630 — — 1,630 1,630 Total assets $ 25,570 $ — $ 9,965 $ 35,535 N/A Accrued and other current liabilities: Napster acquisition contingent consideration $ — $ — $ 4,800 $ 4,800 N/A Other long-term liabilities Simple Agreements for Future Equity — — 2,106 2,106 N/A Total liabilities $ — $ — $ 6,906 $ 6,906 N/A Restricted cash equivalents as of December 31, 2021 and 2020 primarily relate to maintaining a minimum balance of unrestricted cash at the bank in connection with our Loan Agreement. See Note 9. Debt for additional details. Investments as of December 31, 2021 and December 31, 2020 are comprised of Napster Group ordinary shares received as a portion of the consideration from our December 30, 2020 Napster disposition, as described in Note 4. Dispositions. The fair value of these equity securities was calculated using the closing price of the shares as of December 31, 2021. For reporting periods prior to December 31, 2021, the shares were discounted for a lack of liquidity due to the 12-month contractual restriction on selling or transferring the shares and were therefore considered to be within Level 3 of the fair value hierarchy. During the fourth quarter of 2021, Napster Group announced its intent to dispose of Rhapsody to a private company which was completed in late January 2022. We have concluded that it is appropriate to continue to consider the fair value determination of the shares as of December 31, 2021 as Level 3 because of the pending go-private transaction as of December 31, 2021, our holding a large amount of Napster Group shares, and the thinly traded nature of the shares. For the year ended December 31, 2021 for these shares, we recognized an unrealized loss of $7.0 million in Loss on equity and other investments, net on the consolidated statement of operations. For the year ended December 31, 2020 we recognized an unrealized gain of $0.7 million. During the second quarter of 2021, the Company settled the Napster contingent consideration liability. Accrued and other current liabilities as of December 31, 2020 included the estimated fair value of the contingent consideration for the Napster acquisition, which was determined using a fair value measurement categorized within Level 3 of the fair value hierarchy. The valuation methodology of the contingent consideration at December 31, 2020 was based on RealNetworks' contractual obligation to pay the seller of the Napster interests acquired by RealNetworks in January 2019. In the third quarter of 2020, Scener, received $2.1 million in cash in exchange for the issuance of convertible securities, each a Simple Agreement for Future Equity. The conversion of these securities, or SAFE Notes, was contingent upon the occurrence of specific future capital-raising events by Scener. The future contingent events also contemplated the possibility of Scener having to pay back the original cash investment to each investor. The SAFE Notes were recorded at fair value and within Other long-term liabilities on our consolidated balance sheets until June 30, 2021, the date of Scener's deconsolidation from RealNetworks, as further discussed in Note 19. Related Party Transactions. The valuation analysis model for the fair value of the SAFE Notes as of December 31, 2020 used significant unobservable inputs that reflected our own estimates of assumptions that market participants would use. Significant unobservable inputs to the valuation analysis model included the underlying conversion date for the SAFE Notes, Scener's capitalization prior to conversion of the SAFE Notes, an 80% discount rate as defined in the SAFE Note agreements, conversion price, conversion shares and an annual present value rate. All of the inputs were subject to significant judgment. Items Measured at Fair Value on a Non-recurring Basis Certain of our assets and liabilities are measured at estimated fair value on a non-recurring basis, using Level 3 inputs. These instruments are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). Other than as discussed in Note 15. Leases, we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis in 2021 or 2020. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts Receivable and Sales Returns | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts Receivable and Sales Returns | Note 6. Allowance for Doubtful Accounts Receivable and Sales Returns Activity in the allowance for doubtful accounts receivable (in thousands): Years ended December 31, 2021 2020 Balance, beginning of year $ 598 $ 484 Addition (reduction) to allowance (319) 117 Amounts written off — (30) Effects of foreign currency translation (13) 27 Balance, end of year $ 266 $ 598 Activity in the allowance for sales returns (in thousands): Years ended December 31, 2021 2020 Balance, beginning of year $ 31 $ 32 Reduction to allowance — (1) Balance, end of year $ 31 $ 31 Total, Allowance for Doubtful Accounts Receivable and Sales Returns $ 297 $ 629 One customer individually comprised more than 10% of trade accounts receivable at December 31, 2021, with the customer accounting for 23% of trade accounts receivable. Two customers individually comprised more than 10% of trade accounts receivable at December 31, 2020, with the customers accounting for 19% and 10% each. Two customers accounted for 30%, or $17.6 million, of consolidated revenue during the year ended December 31, 2021, in the Mobile Services segment. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Changes in goodwill (in thousands): December 31, 2021 2020 Balance, beginning of year Goodwill $ 328,028 $ 327,561 Accumulated impairment losses (310,653) (310,653) 17,375 16,908 Effects of foreign currency translation (399) 467 (399) 467 Balance, end of year Goodwill 327,629 328,028 Accumulated impairment losses (310,653) (310,653) $ 16,976 $ 17,375 Goodwill by segment (in thousands): December 31, 2021 2020 Consumer Media $ 580 $ 580 Mobile Services 2,111 2,188 Games 14,285 14,607 Total goodwill $ 16,976 $ 17,375 |
Notes Payable and Long-term Deb
Notes Payable and Long-term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | Note 9. Debt The Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law in March 2020, established the Paycheck Protection Program (PPP) to provide a direct incentive for small businesses to keep workers on their payroll. Through the PPP, participating banks write loans to eligible businesses and loan amounts are forgiven to the extent that employee retention criteria are met and proceeds are used to cover eligible costs over a 24-week measurement period following loan funding. In April 2020, following an assessment of eligibility and approval of its Board of Directors, RealNetworks issued a promissory note to a participating bank in the principal amount of $2.9 million pursuant to the PPP. The note had a maturity of 2 years, an interest rate of 1.0%, no pre-payment penalty, a ten-month deferment period starting after the 24-week measurement period, and was eligible for forgiveness pursuant to PPP guidelines. In April 2020, the Secretary of the Treasury and Small Business Administration (SBA) announced that the government will review all PPP loans of more than $2.0 million before there is forgiveness. We applied for forgiveness in January 2021. On June 19, 2021, the Company received notice from our participating bank that our request for forgiveness was approved and our PPP loan principal and interest were deemed paid in full. Upon the forgiveness of our obligations of the PPP promissory note, we recognized a gain of $2.9 million in Other income (expense), net on the condensed consolidated statement of operations in the second quarter of 2021. In August 2019, RealNetworks and Napster entered into a Loan and Security Agreement (Loan Agreement) with a third-party financial institution. Under the terms of the Loan Agreement, the bank extended a revolving line of credit (Revolver) not to exceed $10.0 million in the aggregate. In December 2020, at the time of closing the sale of Napster, as further described in Note 4. Dispositions, certain terms of the Loan Agreement were amended, including the removal of Napster as a party to the lending agreement. In February 2021, we entered into an amendment with the bank on our Revolver, whereby the borrowing base for the Revolver is comprised of eligible accounts receivable and direct to consumer deposits. Borrowings may not exceed $6.5 million and are reduced by a $1.0 million standby letter of credit entered into with the bank in connection with certain lease agreements. Advances bear interest at a rate equal to one-half of one percentage point (0.5%) above the greater of the prime rate or 3.25%. The Revolver matures August 1, 2022. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Note 10. Restructuring and Other Charges Restructuring and other charges in 2021 and 2020 consist of costs associated with the ongoing reorganization of our business operations and expense re-alignment efforts, which primarily relate to lease impairment and severance costs due to workforce reductions. Also included in Restructuring and other charges in 2021 was a non-cash gain on release of operating lease liabilities. This release of liabilities related to the 2021 termination of a portion of our lease at our corporate headquarters for which the related operating lease asset was previously impaired. Restructuring charges are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Costs incurred and charged to expense for the year ended December 31, 2021 $ 2,151 $ 978 $ 3,129 Costs incurred and charged to expense for the year ended December 31, 2020 $ 1,288 $ 1,241 $ 2,529 Changes to the accrued restructuring liability for 2021 and 2020 (in thousands): Employee Separation Costs Asset Related and Other Costs Total Accrued liability as of December 31, 2019 $ 110 $ 174 $ 284 Costs incurred and charged to expense for the year ended December 31, 2020, excluding noncash charges 1,288 — 1,288 Cash payments (1,052) (174) (1,226) Accrued liability as of December 31, 2020 346 — 346 Costs incurred and charged to expense for the year ended December 31, 2021, excluding noncash charges 1,932 1,475 3,407 Cash payments (1,962) — (1,962) Accrued liability as of December 31, 2021 $ 316 $ 1,475 $ 1,791 |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders’ Equity | Note 11. Shareholders’ Equity Accumulated Other Comprehensive Loss Changes in components of accumulated other comprehensive loss (in thousands): Years Ended December 31, 2021 2020 Foreign currency translation Accumulated other comprehensive loss, beginning of period $ (60,641) $ (61,323) Translation adjustments (879) 909 Napster disposition — (227) Net current period other comprehensive income (loss) (879) 682 Accumulated other comprehensive loss balance, end of period $ (61,520) $ (60,641) Preferred Stock. Each share of Series A preferred stock entitles the holder to one thousand votes and dividends equal to one thousand times the aggregate per share amount of dividends declared on the common stock. There are no shares of Series A preferred stock outstanding. In February 2020, Mr. Glaser, Chairman of the Board and Chief Executive Officer of RealNetworks, invested approximately $10.0 million in RealNetworks in exchange for the issuance to him of 8,064,516 shares of Series B preferred stock. The Series B preferred stock is non-voting and is convertible into common stock on a one-to-one basis subject to the limitation described in Note 19. Related Party Transactions. The Series B preferred stock has no liquidation preference and no preferred dividends. Undesignated preferred stock will have rights and preferences that are determinable by the Board of Directors if and when determination of a new series of preferred stock has been established. Common Stock. In April 2021, we completed an underwritten public offering of 8,250,000 shares of common stock at a price to the public of $2.70 per share. The aggregate gross proceeds from the offering were $22.3 million. Of these proceeds, we received approximately $20.1 million, after deducting underwriting discounts, commissions, and legal and other fees. The proceeds are expected to be used for general corporate purposes and working capital. |
Employee Stock and Benefit Plan
Employee Stock and Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock and Benefit Plans | Note 12. Employee Stock and Benefit Plans Equity Compensation Plans. Under our equity incentive plans, we may grant various types of equity awards to employees and Directors. We have granted time-vest and performance-vest stock options and time-vest and performance-vest restricted stock. Generally, options vest based on continuous employment, over a four seven two four We issue new shares of common stock upon exercise of stock options and the vesting of restricted stock. As of December 31, 2021, there were 2.3 million shares of common stock authorized for future equity awards. Each restricted stock unit granted reduces, and each restricted stock unit forfeited or canceled increases, the shares available for future grant by a factor of 1.6 shares. Each stock option granted reduces, and each stock option forfeited or canceled increases, the shares available for future grant by a factor of one share. Stock-based compensation expense recognized in our consolidated statements of operations includes amounts related to stock options and restricted stock, and was as follows (in thousands): Years Ended December 31, 2021 2020 Total stock-based compensation expense $ 4,224 $ 1,420 The total stock-based compensation amounts disclosed above are recorded in the respective line items within operating expenses in the consolidated statements of operations. Included in the expense for 2021 was $2.0 million of stock-based compensation, resulting from certain equity award modifications that will be cash settled. At December 31, 2021, $1.3 million of this liability was recorded in Accrued and other current liabilities and $0.7 million was recorded in Other long-term liabilities within our consolidated balance sheets. Also included in the expense for 2021 was stock-based compensation recorded for 2020 incentive bonuses paid in fully vested restricted stock units, which were authorized and granted in the first quarter of 2021. No stock-based compensation was capitalized as part of the cost of an asset as of December 31, 2021 or 2020. As of December 31, 2021, we had $2.2 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock awards. The unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately three As discussed in Note 1. Description of Business and Summary of Significant Accounting Policies, the valuation models for stock option awards require various highly judgmental assumptions. The assumption for the expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards, including the contractual terms, vesting schedules, and expectations of future employee behavior. Expected stock price volatility is based on historical volatility of our common stock for the related expected term. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with a term equivalent to the expected term of the stock options. The dividend yield is estimated at zero because we do not currently anticipate paying dividends in the foreseeable future. The fair value of options granted used the following weighted average assumptions: Years ended December 31, 2021 2020 Expected dividend yield — % — % Risk-free interest rate 0.59 % 0.37 % Expected term (years) 3.9 4.8 Volatility 71 % 45 % Restricted stock unit and award activity was as follows (shares are in thousands): Number of Shares Weighted Average Grant Date Fair Value Per Share Total Grant Date Fair Value of Vested Awards (000's) Nonvested shares, December 31, 2019 845 $ 2.24 Granted 1,446 1.49 Vested (218) 1.89 $ 412 Forfeited/Canceled (270) 2.38 Nonvested shares, December 31, 2020 1,803 $ 1.65 Granted 886 2.26 Vested (392) 2.38 $ 933 Forfeited/Canceled (211) 2.00 Nonvested shares, December 31, 2021 2,086 $ 1.74 At December 31, 2021, the aggregate intrinsic value of restricted stock awards was $2.0 million and the weighted average remaining contractual term was approximately two years. Stock option activity (shares are in thousands): Options Outstanding Weighted Average Grant Date Fair Value Number of Shares Weighted Average Exercise Price Outstanding, December 31, 2019 7,471 $ 4.25 Options granted at common stock price 2,382 1.26 $ 0.47 Options exercised — — Options canceled (3,354) 4.59 Outstanding, December 31, 2020 6,499 $ 2.97 Options granted at common stock price 1,737 2.13 $ 1.12 Options exercised (258) 2.07 Options canceled (1,499) 3.77 Outstanding, December 31, 2021 6,479 $ 2.60 Exercisable, December 31, 2021 3,276 $ 3.33 Vested and expected to vest, December 31, 2021 5,149 $ 2.80 As of December 31, 2021, the weighted average remaining contractual life of the options was as follows: outstanding options 4.7 years; exercisable options 3.3 years; and vested and expected to vest options 4.3 years. As of December 31, 2021, there was no aggregate intrinsic value for our outstanding, exercisable, and vested and expected to vest options, respectively. The aggregate intrinsic value of stock options exercised in 2021 was $0.4 million, and for 2020 was zero. Retirement Savings Plan. We have a salary deferral plan (401(k) Plan) that covers substantially all employees. Eligible employees may contribute a portion of their eligible compensation to the plan up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. We match a percentage of employee contributions up to certain limits. During the years ended December 31, 2021 and 2020, we contributed $0.2 million and $0.3 million, respectively, in matching contributions. We can terminate the matching contributions at our discretion. We have no other post-employment or post-retirement benefit plans. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes Components of income (loss) from continuing operations before income taxes (in thousands): Years ended December 31, 2021 2020 United States operations $ (17,998) $ (8,241) Foreign operations (3,015) 3,182 Loss before income taxes $ (21,013) $ (5,059) Components of income tax expense (benefit) (in thousands): Years ended December 31, 2021 2020 Current: United States federal $ 117 $ 202 State and local 54 20 Foreign 125 530 Total current 296 752 Deferred: United States federal 9 (495) Foreign 174 (202) Total deferred 183 (697) Total income tax expense $ 479 $ 55 Income tax expense differs from “expected” income tax expense (computed by applying the U.S. federal income tax rate of 21% in 2021 and 2020) from continuing operations before income taxes due to the following (in thousands): Years ended December 31, 2021 2020 United States federal tax benefit at statutory rate $ (4,413) $ (1,062) State taxes, net of United States federal tax expense (benefit) 599 (807) Change in valuation allowance 5,383 2,545 Non-deductible stock compensation 585 1,406 Impact of non-U.S. jurisdictional tax rate difference (188) (169) Research and development tax credit (156) (183) Non-U.S. withholding tax 93 229 Change in indefinite reinvestment assertion 76 (8) Contingent consideration (218) (1,806) PPP Loan Forgiveness (608) — Other (674) (90) Total income tax expense $ 479 $ 55 Net deferred tax assets, which are recorded at December 31, 2021 and December 31, 2020 using a 21% tax rate, are comprised of the following (in thousands): December 31, 2021 2020 Deferred tax assets: United States federal net operating loss carryforwards $ 70,564 $ 67,451 Deferred expenses 297 314 Research and development tax credit carryforwards 13,025 13,350 Right of use asset 771 2,103 Stock-based compensation 1,547 1,498 State net operating loss carryforwards 9,611 8,516 Foreign net operating loss carryforwards 27,433 27,589 Deferred revenue 36 27 Equipment, software, and leasehold improvements 1,402 1,841 Intangibles 6,066 7,392 Other 2,770 1,370 Gross deferred tax assets 133,522 131,451 Less valuation allowance (131,522) (128,314) Gross deferred tax assets, net of valuation allowance $ 2,000 $ 3,137 Deferred tax liabilities: Other intangible assets $ (146) $ (158) Lease liability (668) (1,579) Undistributed foreign earnings (954) (937) Other (637) (683) Gross deferred tax liabilities (2,405) (3,357) Net deferred tax liabilities $ (405) $ (220) As of December 31, 2021, we maintained a valuation allowance of $131.5 million for our deferred tax assets that we believe are not more likely than not to be realized. The net change in valuation allowance was a $3.2 million increase and a $32.5 million decrease during the years ended December 31, 2021 and 2020, respectively. The net increase in the valuation allowance since December 31, 2020 of $3.2 million was primarily the result of an increase in current year deferred tax assets for which the Company maintains a valuation allowance. RealNetworks' U.S. federal net operating loss carryforwards totaled $336.0 million and $321.2 million at December 31, 2021 and 2020, respectively. The increase is mainly due to net operating loss carryforwards from the current year U.S. taxable loss. The remaining net operating loss carryforwards as of December 31, 2021 are from prior U.S. taxable losses and from acquired subsidiaries. These net operating loss carryforwards expire between 2024 and 2037. Income tax receivables were $0.0 million and $0.1 million at December 31, 2021 and 2020. RealNetworks' U.S. federal research and development tax credit carryforward totaled $13.0 million and $13.4 million at December 31, 2021 and 2020. The research and development credit carryforwards expire between 2022 and 2041. As of December 31, 2018, the Company no longer intends to indefinitely reinvest substantially all of the Company's foreign earnings outside of the U.S. We have a recorded deferred tax liability of $1.0 million and $0.9 million as of December 31, 2021 and 2020, respectively, for local country and foreign withholding taxes associated with the repatriation of such foreign earnings. In both of the years ended December 31, 2021 and 2020, RealNetworks had $0.7 million in uncertain tax positions. The unrecognized tax benefits are due to federal research and development tax credit carryforward risks. We do not anticipate that the total amount of unrecognized tax benefits will significantly change within the next twelve months. We recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes. As of December 31, 2021, we have no accrued interest or penalties related to uncertain tax positions. Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits (in thousands): Years ended December 31, 2021 2020 Balance, beginning of year $ 655 $ 5,020 Increases related to prior year tax positions — 77 Decreases related to prior year tax positions (18) (4,564) Increases related to current year tax positions 104 122 Balance, end of year $ 741 $ 655 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 14. Loss Per Share Basic net loss per share (EPS) is computed by dividing net loss attributable to RealNetworks by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net loss attributable to RealNetworks by the weighted average number of common and dilutive potential common shares outstanding during the period. Basic and diluted EPS (in thousands, except per share amounts): Years ended December 31, 2021 2020 Net loss from continuing operations attributable to RealNetworks $ (21,248) $ (4,830) Net loss from discontinued operations attributable to RealNetworks (733) (22) Net loss attributable to RealNetworks $ (21,981) $ (4,852) Weighted average common shares outstanding used to compute basic EPS 44,277 38,272 Dilutive effect of stock based awards and Series B Preferred Stock — — Weighted average common shares outstanding used to compute diluted EPS 44,277 38,272 Net loss per share attributable to RealNetworks - Basic: Continuing operations $ (0.48) $ (0.13) Discontinued operations (0.02) — Total net loss per share - Basic $ (0.50) $ (0.13) Net loss per share attributable to RealNetworks - Diluted: Continuing operations $ (0.48) $ (0.13) Discontinued operations (0.02) — Total net loss per share - Diluted $ (0.50) $ (0.13) Approximately 4.4 million and 6.8 million shares of potentially issuable shares from stock awards were excluded from the calculation of diluted EPS for the years ended December 31, 2021 and 2020, respectively, because of their antidilutive effect. During 2020, 8.1 million shares of Series B preferred stock were issued. The Series B Preferred Stock is convertible into common stock on a one-to-one basis subject to the limitation described in Note 19. Related Party Transactions. During the years ended December 31, 2021 and December 31, 2020, these shares were also excluded from the calculation of diluted EPS because of their antidilutive effect. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 15. Leases We have commitments for future payments related to office facilities leases. We determine if an arrangement is a lease at inception. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available in determining the present value of future payments. Operating lease assets also exclude lease incentives and initial direct costs incurred. Some of our leases include options to extend or terminate the lease. Our leases generally include one or more options to renew; however, the exercise of lease renewal options is at our sole discretion. For nearly all of our operating leases, upon adoption of the new guidance, we have not assumed any options to extend will be exercised as part of our calculation of the lease liability. We have operating leases for office space and data centers with remaining lease terms of 1 year to 4 years. We recorded $2.5 million, and $1.1 million of lease asset impairment charges in 2021 and 2020, respectively, for office space previously vacated. In 2021 we also recorded a non-cash gain of $3.6 million on release of operating lease liabilities, related to the 2021 termination of a portion of our lease at our corporate headquarters for which the related operating lease asset was previously impaired. These amounts were recognized in restructuring and other charges on the consolidated statements of operations. In 2021 and 2020, we entered into amendments that extended certain office leases, resulting in right-of-use assets obtained in exchange for lease obligations of $1.1 million and $0.9 million, respectively. Details related to lease expense and supplemental cash flow were as follows (in thousands): Years Ended December 31, 2021 2020 Operating lease expense $ 3,058 $ 4,118 Variable lease expense 646 711 Sublease income (548) (1,330) Net lease expense $ 3,156 $ 3,499 Operating cash outflows for lease liabilities $ 4,109 $ 4,356 Details related to lease term and discount rate were as follows: December 31, December 31, Weighted-average remaining lease term (in years) 2 years 3 years Weighted-average discount rate 4.73 % 4.95 % Future minimum lease payments as of December 31, 2021 are as follows (in thousands): Office Leases 2022 $ 2,310 2023 1,390 2024 967 2025 195 2026 — Total minimum payments (a) 4,862 Less: Imputed interest 449 Present value of total minimum payments (b) $ 4,413 (a) Total minimum payments exclude executory costs, inclusive of insurance, maintenance, and taxes, of $1.8 million; minimum payments also have not been reduced by sublease rentals of $0.1 million due in the future under subleases. (b) $2.3 million is included in Long-term lease liabilities and $2.1 million is included in Accrued and other current liabilities on the consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies We have been in the past and could become in the future subject to legal proceedings, governmental investigations, and claims in the ordinary course of business, including employment claims, contract-related claims, and claims of alleged infringement of third-party patents, trademarks, and other intellectual property rights. Such claims, even if not meritorious, could force us to expend significant financial and managerial resources. In addition, given the broad distribution of some of our consumer products, any individual claim related to those products could give rise to liabilities that may be material to us. In the event of a determination adverse to us, we may incur substantial monetary liability, and/or be required to change our business practices. Either of these could have a material adverse effect on our consolidated financial statements. On April 6, 2020, RealNetworks Asia Pacific Co., Ltd. received notice of a civil lawsuit filed by Korean Music Copyright Association (KOMCA) in Seoul Central District Court seeking damages of $2.6 million. Also named as a defendant in the lawsuit is Kakao M Corp (formerly known as LOEN Entertainment Corp.), one of the largest media publishing companies in Korea, which operates the Melon music platform. The claim is for a late payment penalty under a music licensing contract, pursuant to which, from 2004 to 2017, RealNetworks licensed music for its services to LOEN for its Melon platform. The current lawsuit relates solely to the late payment of music licensing fees under the contract; the underlying music licensing fees were paid by Kakao M to KOMCA in a separate settlement prior to KOMCA’s filing of this lawsuit. While we believe we have meritorious defenses to this lawsuit and are vigorously defending against it, litigation is inherently uncertain and we cannot currently predict the ultimate outcome of this matter. We have recorded a liability related to this matter as of December 31, 2021, at the low end of the range of outcomes, for an immaterial amount. Because of the uncertainty of this matter, it is reasonably possible that the estimated amount of the liability recorded will change in the near term. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Guarantees [Abstract] | |
Guarantees | Note 17. Guarantees In the ordinary course of business, RealNetworks is subject to potential obligations for standard warranty and indemnification provisions that are contained within many of our customer license and service agreements. Our warranty provisions are consistent with those prevalent in our industry, and we do not have a history of incurring losses on warranties; therefore, we do not maintain accruals for warranty-related obligations. With regard to indemnification provisions, nearly all of our carrier contracts obligate us to indemnify our carrier customers for certain liabilities that may be incurred by them. We have received in the past, and may receive in the future, claims for indemnification from some of our carrier customers. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 18. Segment Information We manage our business and report revenue and operating income (loss) in three segments: (1) Consumer Media, which includes licensing of our codec technology and our RealPlayer products, including RealPlayer Plus and related products; (2) Mobile Services, which includes our SaaS services, our integrated RealTimes ® platform which is sold to mobile carriers and our computer vision platform, SAFR (Secure Accurate Facial Recognition); and (3) Games, which includes all our games-related businesses, including sales of in-game virtual goods, mobile games and games licenses, games subscription services, and in-game advertising and advertising on games sites. RealNetworks allocates to its Consumer Media, Mobile Services and Games reportable segments certain corporate expenses which are directly attributable to supporting these businesses, including but not limited to a portion of finance, legal, human resources and headquarters facilities. Remaining expenses, which are not directly attributable to supporting these businesses, are reported as corporate items. These corporate items include restructuring charges and stock compensation charges. RealNetworks reports the three reportable segments based on factors such as how we manage our operations and how our Chief Operating Decision Maker (CODM) reviews results. The CODM reviews financial information presented on both a consolidated basis and on a business segment basis. The accounting policies used to derive segment results are the same as those described in Note 1. Description of Business and Summary of Significant Accounting Policies. Segment results for the years ended December 31, 2021 and 2020 were as follows (in thousands): Consumer Media 2021 2020 Revenue $ 10,301 $ 12,581 Cost of revenue 1,816 2,273 Gross profit 8,485 10,308 Operating expenses 7,427 8,889 Operating income (loss) $ 1,058 $ 1,419 Mobile Services 2021 2020 Revenue $ 23,788 $ 26,889 Cost of revenue 5,720 6,725 Gross profit 18,068 20,164 Operating expenses 24,299 24,787 Operating income (loss) $ (6,231) $ (4,623) Games 2021 2020 Revenue $ 24,094 $ 28,592 Cost of revenue 6,192 7,451 Gross profit 17,902 21,141 Operating expenses 19,463 19,936 Operating income (loss) $ (1,561) $ 1,205 Corporate 2021 2020 Cost of revenue $ 28 $ 16 Operating expenses 14,111 3,009 Operating income (loss) $ (14,139) $ (3,025) Our customers consist primarily of consumers and corporations located in the U.S., Europe and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Years ended December 31, 2021 2020 United States $ 36,494 $ 43,704 Europe 9,133 9,375 Rest of the World 12,556 14,983 Total $ 58,183 $ 68,062 Long-lived assets (consists of equipment, software, leasehold improvements, operating lease assets, and goodwill) by geographic region (in thousands): December 31, 2021 2020 United States $ 14,402 $ 18,318 Europe 6,682 7,638 Rest of the World 1,354 1,227 Total long-lived assets $ 22,438 $ 27,183 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 19. Related Party Transactions The sale of Napster closed on December 30, 2020. For additional details, see Note 4. Dispositions. In February 2020, we entered into a Series B Preferred Stock Purchase Agreement with Mr. Glaser, Chairman of the Board and Chief Executive Officer of RealNetworks, pursuant to which Mr. Glaser invested approximately $10.0 million in RealNetworks in exchange for the issuance to him of 8,064,516 shares of Series B Preferred Stock. The Series B Preferred Stock is non-voting and is convertible into common stock on a one-to-one basis, provided, however, that no conversion is permitted in the event that such conversion would cause Mr. Glaser’s beneficial ownership of our common stock to exceed the 38.5% threshold set forth in our Second Amended and Restated Shareholder Rights Plan dated November 30, 2018. The Series B Preferred Stock has no liquidation preference and no preferred dividends. In July 2020, Mr. Glaser invested $0.7 million into a former RealNetworks subsidiary, Scener. Scener is developing a platform that transforms the experience of viewing video entertainment into a social, connected playground. The July 2020 funding was in addition to $0.8 million that Mr. Glaser had previously directly invested in 2019. In August 2020, this same subsidiary entered into agreements and received $1.4 million in cash from outside investors. The 2020 investments were in the form of SAFEs, as described in Note 5. Fair Value Measurements. Effective June 30, 2021, RealNetworks no longer had a controlling interest in Scener and deconsolidated Scener Inc. We now account for our remaining interest in Scener using the equity method of accounting. As a result of the deconsolidation of Scener, we recognized a gain of $2.0 million in Other income (expense), net on the condensed consolidated statement of operations. In December 2021, Scener had a qualifying equity financing which also triggered the conversion of the SAFE notes to equity. As a result, RealNetworks' ownership in Scener's outstanding equity decreased to approximately 46% and we recognized a dilution gain of $6.0 million. Additionally, we recorded our share of losses in Scener of $3.8 million for the year ended December 31, 2021. These amounts are recorded in (Loss) gain on equity and other investments, net, on the consolidated statement of operations. At December 31, 2021 the carrying value of our investment in Scener was $2.2 million and is included in Other assets on the consolidated balance sheets. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business. RealNetworks provides digital media software and services to consumers, mobile carriers, device manufacturers, system integrators, and other businesses. Consumers use our digital media products and services to store, organize, play, manage and enjoy their digital media content, either directly from us or through our distribution partners. We have recently developed a new generation of artificial intelligence (AI)-based products and solutions. The main two products and key investment initiatives in our AI portfolio are SAFR, our AI-based computer vision platform, and KONTXT, our natural language processing-based message classification and analysis platform. Rhapsody International, Inc. (doing business as Napster) offers a comprehensive set of digital music products and services designed to provide consumers with broad access to digital music. Napster was held-for-sale and treated as discontinued operations for accounting and disclosure purposes as of the third quarter of 2020. The sale of Napster was completed during the fourth quarter of 2020. The results of operations and cash flows for these discontinued operations were segregated from the results of continuing operations and segment results, and Napster’s operating results and financial condition were recast to conform to this presentation. The notes to the consolidated financial statements, unless otherwise indicated, are on a continuing operations basis. See Note 4. Dispositions for additional details regarding the sale of Napster. Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue and cash flow. In this Annual Report on Form 10-K for the year ended December 31, 2021 (10-K), RealNetworks, Inc. and subsidiaries is referred to as “RealNetworks”, the “Company”, “we”, “us”, or “our”. |
Basis of Presentation | Basis of Presentation. The consolidated financial statements include the accounts of the Company and its subsidiaries in which it has a more than 50% voting interest. Noncontrolling interests primarily represent third-party ownership in the equity of Scener Inc. ("Scener"), which was deconsolidated on June 30, 2021, and are reflected separately in the Company's financial statements. See Note 19. Related Party Transactions for additional details. Intercompany balances and transactions have been eliminated in consolidation. |
Liquidity and Capital Resournces | Liquidity and Capital Resources. The Company continues to incur operating losses from continuing operations, including net operating losses of $20.9 million, and $5.0 million for the years ended December 31, 2021 and 2020, respectively. The Company had an accumulated deficit of $570.8 million and $548.9 million as of December 31, 2021 and 2020, respectively. The Company believes that its cash and cash equivalents of $27.1 million as of December 31, 2021 is adequate to fund the Company's operations for at least one year from the date these financial statements were issued. |
Risk and Uncetainties | Risks and Uncertainties. In March 2020, the World Health Organization declared the outbreak of the coronavirus that causes COVID-19 to be a global pandemic. As the virus spread throughout the U.S. and the world, authorities implemented numerous measures to contain the virus, including travel bans and restrictions, quarantines, shelter-in-place orders, business limitations, and shutdowns. In addition to the pandemic's widespread impact on public health and global society, reactions to the pandemic as well as measures taken to contain the virus have caused significant turmoil to the global economy and financial markets. Moreover, similar to other companies, we have taken steps to support the health and well-being of our employees, customers, partners and communities, which include working remotely and learning to operate our businesses in a fundamentally different way. The COVID-19 pandemic, including the emergence of variants such as the delta and omicron variants, and the resultant economic instability and financial market turmoil has added complexity, uncertainty and risk to nearly all aspects of our business. It is difficult to predict the near-term and long-term impacts that the pandemic will have on our results from operations, financial condition, liquidity and cash flows. In the preparation of our financial statements, certain estimates and assumptions regarding these impacts have been made, which could change in future periods and which could differ from actual outcomes. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents Disclosure | Cash and Cash Equivalents. Cash and cash equivalents include cash on hand and highly-liquid investments with original maturities of three months or less. |
Trade Accounts Receivable | Trade Accounts Receivable. Trade accounts receivable consist of amounts due from customers and do not bear interest. The allowance for doubtful accounts and sales returns is our estimate of the amount of probable credit losses and returns in our existing accounts receivable. We determine the allowances based on analysis of historical bad debts, customer concentrations, changes in customer credit-worthiness, return history and current economic trends. We review the allowances for doubtful accounts and sales returns quarterly. Past due balances over 90 days and specified other balances are reviewed individually for |
Investment, Policy | Investments. Investments are equity securities for which there is a determinable fair market value. See Note 5. Fair Value Measurements for additional information. Unrealized gains and losses from the change in fair market value, as well as realized gains and losses from sales, are recorded to Gain on equity and other investments, net on the consolidated statements of operations. Realized and unrealized gains and losses on investments are determined using the specific identification method. |
Concentration of Credit Risk | Concentration of Credit Risk. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain cash and cash equivalents that may exceed the insured limits by the Federal Deposit Insurance Corporation. However, we reduce this credit risk by placing cash and cash equivalents with major financial institutions that the Company assesses to be of high-credit quality. We derive a portion of our revenue from a large number of individual consumers spread globally. We also derive revenue from several large customers. If the financial condition or results of operations of any one of the large customers deteriorates substantially, our operating results could be adversely affected. To reduce credit risk, management performs ongoing credit evaluations of the financial condition of significant customers. We do not generally require collateral and we maintain an allowance for estimated credit losses on customer accounts when considered necessary. |
Depreciation and Amortization | Depreciation and Amortization. Depreciation of equipment and software, as well as amortization of leasehold improvements is computed using the straight-line method over the lesser of the estimated useful lives of the assets or the related lease term. The useful life of equipment and software is generally three five |
Equity Method Investments | Equity Method Investment. We use the equity method in circumstances where we have the ability to exert significant influence, but not control, over an investee or joint venture. We initially record our investment based on a fair value analysis of the investment. We record our percentage interest in the investee's recorded income or loss and changes in the investee's capital under this method, which will increase or decrease the reported value of our investment. We evaluate impairment of an investment accounted for under the equity method if events and circumstances warrant. An impairment charge would be recorded if a decline in the fair value of an equity investment below its carrying amount were determined to be other than temporary. In determining if a decline is other than temporary, we consider factors such as the length of time and extent to which the fair value of the investment has been less than the carrying amount of the investee or joint venture, the near-term and longer-term operating and financial prospects of the investee or joint venture and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery. |
Deferred Costs | Deferred Costs. Included in deferred costs are financing fees associated with our revolving line of credit. These fees are amortized over the term of the credit agreement. Amortization of the financing fees are recorded in interest expense, within other income (expenses). |
Other Definite-Lived Intangible Assets | Definite-Lived Tangible and Right-of-Use Operating Lease Assets. Definite-lived tangible assets include equipment, software, leasehold improvements. Definite-lived assets are amortized on a straight line basis over their estimated useful lives. Operating leases are included in Operating lease assets, Other current liabilities, and Long-term lease liabilities on our consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. |
Goodwill | Goodwill. Assets acquired and liabilities assumed in a business acquisition are measured at fair value under the purchase accounting method and any goodwill is recognized as the excess of the total purchase price over the fair value of assets acquired and liabilities assumed. We test goodwill for impairment on an annual basis, in our fourth quarter, or more frequently if circumstances indicate reporting unit carrying values may exceed their fair values. Circumstances that may indicate a reporting unit's carrying value exceeds its fair value include, but are not limited to: poor economic performance relative to historical or projected future operating results; significant negative industry, economic or company specific trends; changes in the manner of our use of the assets or the plans for our business; and loss of key personnel. |
Fair Value | Fair Value. Fair value is the price that would be received from selling an asset or paid in transferring a liability in an orderly transaction between market participants at the measurement date. Our fair value measurements consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. Fair values are determined based on three levels of inputs: • Level 1: Quoted prices in active markets for identical assets or liabilities • Level 2: Directly or indirectly observed inputs for the asset or liability, including quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active • Level 3: Significant unobservable inputs that reflect our own estimates of assumptions that market participants would use |
Research and Development | Research and Development. Costs incurred in research and development are expensed as incurred. Software development costs are capitalized when a product’s technological feasibility has been established through the date the product is available for general release to customers. Other than internal use software, we have not capitalized any software development costs, as technological feasibility is generally not established until a working model is completed, at which time substantially all development is complete. |
Revenue Recognition | Revenue Recognition. We recognize revenue from contracts with customers as control of the promised good or service is transferred. Please refer to Note 3. Revenue Recognition for further details regarding our recognition policies. |
Advertising Expenses | Advertising Expenses. We expense the cost of advertising and promoting our products as incurred. |
Foreign Currency | Foreign Currency. The functional currency of the Company’s foreign subsidiaries is generally the currency of the country in which the subsidiary operates. Assets and liabilities of foreign operations are translated into U.S. dollars using rates of exchange in effect at the end of the reporting period. The net gain or loss resulting from translation is shown as translation adjustment and included in Accumulated Other Comprehensive Income (AOCI) in shareholders’ equity. Income and expense accounts are translated into U.S. dollars using average rates of exchange. Gains and losses from foreign currency transactions are included in other income (expense), net on the consolidated statements of operations. |
Accounting for Taxes Collected from Customers | Accounting for Taxes Collected from Customers. Our revenues are reported net of sales and other transaction taxes that are collected from customers and remitted to taxing authorities. |
Income Taxes | Income Taxes. We compute income taxes using the asset and liability method, under which deferred income taxes are provided for temporary differences between financial reporting basis and tax basis of our assets and liabilities and operating loss and tax credit carryforwards. We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the appropriate taxing jurisdictions. Adjustments to the valuation allowance could be required in the future if we estimate that the amount of deferred tax assets to be realized is more or less than the net amount we have recorded. Any increase or decrease in the valuation allowance could have the effect of increasing or decreasing the income tax provision in the statement of operations. Deferred tax assets and liabilities and operating loss and tax credit carryforwards are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carryforwards are expected to be recovered or settled. |
Stock-Based Compensation | Stock-Based Compensation. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. We use the Black-Scholes option-pricing model or other appropriate valuation models such as Monte Carlo simulation to determine the fair value of stock-based option awards. The fair value of restricted stock awards is based on the closing market price of our common stock on the grant date of the award. Generally, we recognize the compensation cost for awards on a straight-line basis for the entire award, over the applicable vesting period. For performance-based awards, expense is recognized when it is probable the performance goal will be achieved, however if the likelihood becomes improbable, that expense is reversed. |
Net Income Per Share | Net Loss Per Share. Basic net loss per share (EPS) is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net loss by the weighted average number of common and dilutive potential common shares outstanding during the period. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our disaggregated revenue by source and segment (in thousands): Year ended December 31, 2021 Consumer Media Mobile Services Games Business Line Software License $ 5,076 $ 6,397 $ — Subscription Services 3,158 17,391 9,606 Product Sales 1,306 — 11,058 Advertising and Other 761 — 3,430 Total $ 10,301 $ 23,788 $ 24,094 Year ended December 31, 2020 Consumer Media Mobile Services Games Business Line Software License $ 5,957 $ 5,110 $ — Subscription Services 3,586 21,779 10,794 Product Sales 1,301 — 13,879 Advertising and Other 1,737 — 3,919 Total $ 12,581 $ 26,889 $ 28,592 The following table presents our disaggregated revenue by sales channel (in thousands): Year ended December 31, 2021 Consumer Media Mobile Services Games Sales Channel Business to Business $ 5,838 $ 23,450 $ 3,928 Direct to Consumer 4,463 338 20,166 Total $ 10,301 $ 23,788 $ 24,094 Year ended December 31, 2020 Consumer Media Mobile Services Games Sales Channel Business to Business $ 7,693 $ 26,495 $ 4,664 Direct to Consumer 4,888 394 23,928 Total $ 12,581 $ 26,889 $ 28,592 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Results of Operations and Carrying Amounts of Assets and Liabilities | The following table summarizes the net loss from discontinued operations for the year ended December 31, 2020: 2020 Revenue $ 96,185 Cost of revenue 73,318 Gross profit 22,867 Operating expenses 24,734 Operating loss (1,867) Other income (expenses) 2,175 Income (loss) from discontinued operations before income taxes 308 Income tax expense 514 Net loss from discontinued operations (206) Noncontrolling interests in net income (loss) from discontinued operations (184) Net loss from discontinued operations attributable to RealNetworks $ (22) The following table summarizes the gain recognized for the year ended December 31, 2020 from the sale of Napster: Net proceeds received (1) $ 22,849 Net assets disposed (20,935) Gain on sale of Napster 1,914 (1) Proceeds received were net of transaction costs, funds to minority shareholders and fair value adjustments to MelodyVR stock. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured at Fair Value on a Recurring Basis | The following tables present information about our financial assets that have been measured at fair value on a recurring basis as of December 31, 2021 and 2020, and indicates the fair value hierarchy of the valuation inputs utilized to determine fair value (in thousands). Fair Value Measurements as of Amortized Cost as of December 31, 2021 December 31, 2021 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 27,109 $ — $ — $ 27,109 $ 27,109 Investments — — 1,755 1,755 N/A Restricted cash equivalents 1,630 — — 1,630 1,630 Total assets $ 28,739 $ — $ 1,755 $ 30,494 N/A Fair Value Measurements as of Amortized Cost as of December 31, 2020 December 31, 2020 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 23,940 $ — $ — $ 23,940 $ 23,940 Investments — — 9,965 9,965 N/A Restricted cash equivalents 1,630 — — 1,630 1,630 Total assets $ 25,570 $ — $ 9,965 $ 35,535 N/A Accrued and other current liabilities: Napster acquisition contingent consideration $ — $ — $ 4,800 $ 4,800 N/A Other long-term liabilities Simple Agreements for Future Equity — — 2,106 2,106 N/A Total liabilities $ — $ — $ 6,906 $ 6,906 N/A |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts Receivable and Sales Returns (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Activity in Allowance for Doubtful Accounts Receivable and Sales Returns | Activity in the allowance for doubtful accounts receivable (in thousands): Years ended December 31, 2021 2020 Balance, beginning of year $ 598 $ 484 Addition (reduction) to allowance (319) 117 Amounts written off — (30) Effects of foreign currency translation (13) 27 Balance, end of year $ 266 $ 598 Activity in the allowance for sales returns (in thousands): Years ended December 31, 2021 2020 Balance, beginning of year $ 31 $ 32 Reduction to allowance — (1) Balance, end of year $ 31 $ 31 Total, Allowance for Doubtful Accounts Receivable and Sales Returns $ 297 $ 629 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in goodwill (in thousands): December 31, 2021 2020 Balance, beginning of year Goodwill $ 328,028 $ 327,561 Accumulated impairment losses (310,653) (310,653) 17,375 16,908 Effects of foreign currency translation (399) 467 (399) 467 Balance, end of year Goodwill 327,629 328,028 Accumulated impairment losses (310,653) (310,653) $ 16,976 $ 17,375 Goodwill by segment (in thousands): December 31, 2021 2020 Consumer Media $ 580 $ 580 Mobile Services 2,111 2,188 Games 14,285 14,607 Total goodwill $ 16,976 $ 17,375 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued and other current liabilities (in thousands): December 31, 2021 December 31, 2020 Royalties and other fulfillment costs $ 1,189 $ 1,149 Employee compensation, commissions and benefits 5,761 4,512 Sales, VAT and other taxes payable 1,056 1,231 Operating lease liabilities - current 2,113 3,373 Napster acquisition contingent consideration — 4,800 Other 3,167 2,785 Total accrued and other current liabilities $ 13,286 $ 17,850 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges by Type of Cost | Restructuring charges are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Costs incurred and charged to expense for the year ended December 31, 2021 $ 2,151 $ 978 $ 3,129 Costs incurred and charged to expense for the year ended December 31, 2020 $ 1,288 $ 1,241 $ 2,529 |
Schedule of Restructuring Reserve by Type of Cost | Changes to the accrued restructuring liability for 2021 and 2020 (in thousands): Employee Separation Costs Asset Related and Other Costs Total Accrued liability as of December 31, 2019 $ 110 $ 174 $ 284 Costs incurred and charged to expense for the year ended December 31, 2020, excluding noncash charges 1,288 — 1,288 Cash payments (1,052) (174) (1,226) Accrued liability as of December 31, 2020 346 — 346 Costs incurred and charged to expense for the year ended December 31, 2021, excluding noncash charges 1,932 1,475 3,407 Cash payments (1,962) — (1,962) Accrued liability as of December 31, 2021 $ 316 $ 1,475 $ 1,791 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in components of accumulated other comprehensive loss (in thousands): Years Ended December 31, 2021 2020 Foreign currency translation Accumulated other comprehensive loss, beginning of period $ (60,641) $ (61,323) Translation adjustments (879) 909 Napster disposition — (227) Net current period other comprehensive income (loss) (879) 682 Accumulated other comprehensive loss balance, end of period $ (61,520) $ (60,641) |
Employee Stock and Benefit Pl_2
Employee Stock and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Total Stock-based Compensation Expense | Stock-based compensation expense recognized in our consolidated statements of operations includes amounts related to stock options and restricted stock, and was as follows (in thousands): Years Ended December 31, 2021 2020 Total stock-based compensation expense $ 4,224 $ 1,420 |
Weighted-Average Assumptions Used to Determine Fair Value of Options Granted | The fair value of options granted used the following weighted average assumptions: Years ended December 31, 2021 2020 Expected dividend yield — % — % Risk-free interest rate 0.59 % 0.37 % Expected term (years) 3.9 4.8 Volatility 71 % 45 % |
Schedule of Nonvested Restricted Stock Units Activity | Restricted stock unit and award activity was as follows (shares are in thousands): Number of Shares Weighted Average Grant Date Fair Value Per Share Total Grant Date Fair Value of Vested Awards (000's) Nonvested shares, December 31, 2019 845 $ 2.24 Granted 1,446 1.49 Vested (218) 1.89 $ 412 Forfeited/Canceled (270) 2.38 Nonvested shares, December 31, 2020 1,803 $ 1.65 Granted 886 2.26 Vested (392) 2.38 $ 933 Forfeited/Canceled (211) 2.00 Nonvested shares, December 31, 2021 2,086 $ 1.74 |
Schedule of Stock Options and Restricted Stock Units Activity | Stock option activity (shares are in thousands): Options Outstanding Weighted Average Grant Date Fair Value Number of Shares Weighted Average Exercise Price Outstanding, December 31, 2019 7,471 $ 4.25 Options granted at common stock price 2,382 1.26 $ 0.47 Options exercised — — Options canceled (3,354) 4.59 Outstanding, December 31, 2020 6,499 $ 2.97 Options granted at common stock price 1,737 2.13 $ 1.12 Options exercised (258) 2.07 Options canceled (1,499) 3.77 Outstanding, December 31, 2021 6,479 $ 2.60 Exercisable, December 31, 2021 3,276 $ 3.33 Vested and expected to vest, December 31, 2021 5,149 $ 2.80 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) Before Income Taxes | Components of income (loss) from continuing operations before income taxes (in thousands): Years ended December 31, 2021 2020 United States operations $ (17,998) $ (8,241) Foreign operations (3,015) 3,182 Loss before income taxes $ (21,013) $ (5,059) |
Schedule of Components of Income Tax Expense (Benefit) | Components of income tax expense (benefit) (in thousands): Years ended December 31, 2021 2020 Current: United States federal $ 117 $ 202 State and local 54 20 Foreign 125 530 Total current 296 752 Deferred: United States federal 9 (495) Foreign 174 (202) Total deferred 183 (697) Total income tax expense $ 479 $ 55 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense differs from “expected” income tax expense (computed by applying the U.S. federal income tax rate of 21% in 2021 and 2020) from continuing operations before income taxes due to the following (in thousands): Years ended December 31, 2021 2020 United States federal tax benefit at statutory rate $ (4,413) $ (1,062) State taxes, net of United States federal tax expense (benefit) 599 (807) Change in valuation allowance 5,383 2,545 Non-deductible stock compensation 585 1,406 Impact of non-U.S. jurisdictional tax rate difference (188) (169) Research and development tax credit (156) (183) Non-U.S. withholding tax 93 229 Change in indefinite reinvestment assertion 76 (8) Contingent consideration (218) (1,806) PPP Loan Forgiveness (608) — Other (674) (90) Total income tax expense $ 479 $ 55 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax assets, which are recorded at December 31, 2021 and December 31, 2020 using a 21% tax rate, are comprised of the following (in thousands): December 31, 2021 2020 Deferred tax assets: United States federal net operating loss carryforwards $ 70,564 $ 67,451 Deferred expenses 297 314 Research and development tax credit carryforwards 13,025 13,350 Right of use asset 771 2,103 Stock-based compensation 1,547 1,498 State net operating loss carryforwards 9,611 8,516 Foreign net operating loss carryforwards 27,433 27,589 Deferred revenue 36 27 Equipment, software, and leasehold improvements 1,402 1,841 Intangibles 6,066 7,392 Other 2,770 1,370 Gross deferred tax assets 133,522 131,451 Less valuation allowance (131,522) (128,314) Gross deferred tax assets, net of valuation allowance $ 2,000 $ 3,137 Deferred tax liabilities: Other intangible assets $ (146) $ (158) Lease liability (668) (1,579) Undistributed foreign earnings (954) (937) Other (637) (683) Gross deferred tax liabilities (2,405) (3,357) Net deferred tax liabilities $ (405) $ (220) |
Schedule of Unrecognized Tax Benefits | Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits (in thousands): Years ended December 31, 2021 2020 Balance, beginning of year $ 655 $ 5,020 Increases related to prior year tax positions — 77 Decreases related to prior year tax positions (18) (4,564) Increases related to current year tax positions 104 122 Balance, end of year $ 741 $ 655 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | Years ended December 31, 2021 2020 Net loss from continuing operations attributable to RealNetworks $ (21,248) $ (4,830) Net loss from discontinued operations attributable to RealNetworks (733) (22) Net loss attributable to RealNetworks $ (21,981) $ (4,852) Weighted average common shares outstanding used to compute basic EPS 44,277 38,272 Dilutive effect of stock based awards and Series B Preferred Stock — — Weighted average common shares outstanding used to compute diluted EPS 44,277 38,272 Net loss per share attributable to RealNetworks - Basic: Continuing operations $ (0.48) $ (0.13) Discontinued operations (0.02) — Total net loss per share - Basic $ (0.50) $ (0.13) Net loss per share attributable to RealNetworks - Diluted: Continuing operations $ (0.48) $ (0.13) Discontinued operations (0.02) — Total net loss per share - Diluted $ (0.50) $ (0.13) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | Details related to lease expense and supplemental cash flow were as follows (in thousands): Years Ended December 31, 2021 2020 Operating lease expense $ 3,058 $ 4,118 Variable lease expense 646 711 Sublease income (548) (1,330) Net lease expense $ 3,156 $ 3,499 Operating cash outflows for lease liabilities $ 4,109 $ 4,356 |
Lessee, Operating Lease, Disclosure | Details related to lease term and discount rate were as follows: December 31, December 31, Weighted-average remaining lease term (in years) 2 years 3 years Weighted-average discount rate 4.73 % 4.95 % |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments as of December 31, 2021 are as follows (in thousands): Office Leases 2022 $ 2,310 2023 1,390 2024 967 2025 195 2026 — Total minimum payments (a) 4,862 Less: Imputed interest 449 Present value of total minimum payments (b) $ 4,413 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Results | Segment results for the years ended December 31, 2021 and 2020 were as follows (in thousands): Consumer Media 2021 2020 Revenue $ 10,301 $ 12,581 Cost of revenue 1,816 2,273 Gross profit 8,485 10,308 Operating expenses 7,427 8,889 Operating income (loss) $ 1,058 $ 1,419 Mobile Services 2021 2020 Revenue $ 23,788 $ 26,889 Cost of revenue 5,720 6,725 Gross profit 18,068 20,164 Operating expenses 24,299 24,787 Operating income (loss) $ (6,231) $ (4,623) Games 2021 2020 Revenue $ 24,094 $ 28,592 Cost of revenue 6,192 7,451 Gross profit 17,902 21,141 Operating expenses 19,463 19,936 Operating income (loss) $ (1,561) $ 1,205 Corporate 2021 2020 Cost of revenue $ 28 $ 16 Operating expenses 14,111 3,009 Operating income (loss) $ (14,139) $ (3,025) |
Revenue by Geographic Region | Our customers consist primarily of consumers and corporations located in the U.S., Europe and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Years ended December 31, 2021 2020 United States $ 36,494 $ 43,704 Europe 9,133 9,375 Rest of the World 12,556 14,983 Total $ 58,183 $ 68,062 |
Long-Lived Assets by Geographic Region | Long-lived assets (consists of equipment, software, leasehold improvements, operating lease assets, and goodwill) by geographic region (in thousands): December 31, 2021 2020 United States $ 14,402 $ 18,318 Europe 6,682 7,638 Rest of the World 1,354 1,227 Total long-lived assets $ 22,438 $ 27,183 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation and Amortization | ||
Depreciation expense | $ 0.7 | $ 0.9 |
Advertising Expense | ||
Advertising expense | $ 5.2 | $ 5.9 |
Equipment and Software | Minimum | ||
Depreciation and Amortization | ||
Useful life | 3 years | |
Equipment and Software | Maximum | ||
Depreciation and Amortization | ||
Useful life | 5 years |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 58,183,000 | $ 68,062,000 |
Accounts receivable | 200,000 | 600,000 |
Contract with customer, liability | 2,800,000 | 2,200,000 |
Consumer Media | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 10,301,000 | 12,581,000 |
Consumer Media | Business To Business | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 5,838,000 | 7,693,000 |
Consumer Media | Sales Channel, Directly to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 4,463,000 | 4,888,000 |
Consumer Media | Software License | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 5,076,000 | 5,957,000 |
Consumer Media | Subscription Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 3,158,000 | 3,586,000 |
Consumer Media | Product Sales | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 1,306,000 | 1,301,000 |
Consumer Media | Advertising And Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 761,000 | 1,737,000 |
Mobile Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 23,788,000 | 26,889,000 |
Mobile Services | Business To Business | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 23,450,000 | 26,495,000 |
Mobile Services | Sales Channel, Directly to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 338,000 | 394,000 |
Mobile Services | Software License | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 6,397,000 | 5,110,000 |
Mobile Services | Subscription Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 17,391,000 | 21,779,000 |
Mobile Services | Product Sales | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | 0 |
Mobile Services | Advertising And Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | 0 |
Games | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 24,094,000 | 28,592,000 |
Games | Business To Business | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 3,928,000 | 4,664,000 |
Games | Sales Channel, Directly to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 20,166,000 | 23,928,000 |
Games | Software License | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 0 | 0 |
Games | Subscription Services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 9,606,000 | 10,794,000 |
Games | Product Sales | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 11,058,000 | 13,879,000 |
Games | Advertising And Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 3,430,000 | $ 3,919,000 |
Acquisitions and Disposals (Det
Acquisitions and Disposals (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 18, 2019 | Dec. 01, 2016 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 16,976 | $ 17,375 | $ 16,908 | ||
(Loss) gain on equity and other investments, net | (4,927) | 111 | |||
Disposal Group, Including Discontinued Operation, Indemnity Escrow | 2,000 | ||||
Percentage of shares acquired | 42.00% | ||||
Loan commitment to Rhapsody | $ 5,000 | ||||
Disposal Group, Including Discontinued Operation, Other Income | 2,175 | ||||
Net loss from discontinued operations, net of tax | (733) | (206) | |||
Net loss attributable to noncontrolling interest of discontinued operations | 0 | (184) | |||
Net loss from discontinued operations attributable to RealNetworks | $ (733) | (22) | |||
Cash received | 22,849 | ||||
Disposal Group, Net Assets Disposed | (20,935) | ||||
Gain on sale of business | 1,900 | ||||
Existing equity interest | 84.00% | ||||
Portion of Proceeds from Asset Sale Used to Pay Third Parties | 5,300 | ||||
Contingent Consideration Settlement, Cash | 2,500 | ||||
Contingent Consideration Settlement, Shares | 47.8 | ||||
Portion of Proceeds from Asset Sale Retained, Net | 4,200 | ||||
Proceeds Retained from Sale of Subsidiary, Shares | 173.3 | ||||
Claims Against Indemnity Escrow | $ 200 | ||||
Indemnity Escrow, Written Off | 700 | ||||
Napster Disposal | |||||
Business Acquisition [Line Items] | |||||
Sale price | 26,000 | ||||
Disposal Group, Including Discontinued Operation, Consideration, Cash | 12,000 | ||||
Disposal Group, Including Discontinued Operation, Indemnity Escrow | 3,000 | ||||
Disposal Group, Including Discontinued Operation, Revenue | 96,185 | ||||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 73,318 | ||||
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 22,867 | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 24,734 | ||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | (1,867) | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 308 | ||||
Discontinued Operation, Tax Effect of Discontinued Operation | 514 | ||||
Net loss from discontinued operations, net of tax | (206) | ||||
Net loss attributable to noncontrolling interest of discontinued operations | (184) | ||||
Net loss from discontinued operations attributable to RealNetworks | $ (22) | ||||
Napster Dispostion | |||||
Business Acquisition [Line Items] | |||||
Gain on sale of business | $ 1,914 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | $ 30,494,000 | $ 35,535,000 |
Business Combination, Contingent Consideration, Liability, Current | 0 | 4,800,000 |
Business Combination, Contingent Consideration, Liability, Noncurrent | 2,106,000 | |
Financial Liabilities Fair Value Disclosure | 6,906,000 | |
Cash and cash equivalents | 27,109,000 | 23,940,000 |
Cash and Cash Equivalents | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 27,109,000 | 23,940,000 |
Amortized Cost | 23,940,000 | |
Cash and Cash Equivalents | Cash and Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 27,109,000 | |
Investment [Domain] | Equity Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 1,755,000 | 9,965,000 |
Restricted cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 1,630,000 | 1,630,000 |
Amortized Cost | 1,630,000 | 1,630,000 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 28,739,000 | 25,570,000 |
Business Combination, Contingent Consideration, Liability, Current | 0 | |
Business Combination, Contingent Consideration, Liability, Noncurrent | 0 | |
Financial Liabilities Fair Value Disclosure | 0 | |
Level 1 | Cash and Cash Equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 27,109,000 | |
Level 1 | Cash and Cash Equivalents | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 23,940,000 | |
Level 1 | Investment [Domain] | Equity Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 0 | |
Level 1 | Restricted cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 1,630,000 | 1,630,000 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 0 | 0 |
Business Combination, Contingent Consideration, Liability, Current | 0 | |
Business Combination, Contingent Consideration, Liability, Noncurrent | 0 | |
Financial Liabilities Fair Value Disclosure | 0 | |
Level 2 | Cash and Cash Equivalents | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 0 | 0 |
Level 2 | Investment [Domain] | Equity Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 0 | |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 1,755,000 | 9,965,000 |
Business Combination, Contingent Consideration, Liability, Current | 4,800,000 | |
Simple Agreements for Future Equity | 2,106,000 | |
Financial Liabilities Fair Value Disclosure | 6,906,000 | |
Level 3 | Cash and Cash Equivalents | Cash and cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | 0 | 0 |
Level 3 | Restricted cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets fair value | $ 0 | $ 0 |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Information) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Fair value adjustments to contingent consideration liability | $ (1,040) | $ (8,600) |
Business Combination, Contingent Consideration, Liability, Current | $ 0 | 4,800 |
Equity Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Measurement Input, Uncertainty, Description | Investments as of December 31, 2021 and December 31, 2020 are comprised of Napster Group ordinary shares received as a portion of the consideration from our December 30, 2020 Napster disposition, as described in Note 4. Dispositions. The fair value of these equity securities was calculated using the closing price of the shares as of December 31, 2021. For reporting periods prior to December 31, 2021, the shares were discounted for a lack of liquidity due to the 12-month contractual restriction on selling or transferring the shares and were therefore considered to be within Level 3 of the fair value hierarchy. During the fourth quarter of 2021, Napster Group announced its intent to dispose of Rhapsody to a private company which was completed in late January 2022. We have concluded that it is appropriate to continue to consider the fair value determination of the shares as of December 31, 2021 as Level 3 because of the pending go-private transaction as of December 31, 2021, our holding a large amount of Napster Group shares, and the thinly traded nature of the shares. For the year ended December 31, 2021 for these shares, we recognized an unrealized loss of $7.0 million in Loss on equity and other investments, net on the consolidated statement of operations. For the year ended December 31, 2020 we recognized an unrealized gain of $0.7 million. | |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ (7,000) | $ 700 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Cash Received For Future Issuance of Equity | $ 2,100 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts Receivable and Sales Returns (Activity in Allowance for Doubtful Accounts Receivable and Sales Returns) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning Balance | $ 629 | |
Ending Balance | 297 | $ 629 |
Allowance for Doubtful Accounts Receivable | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning Balance | 598 | 484 |
Addition (reduction) to allowance | (319) | 117 |
Amounts written off | 0 | (30) |
Effects of foreign currency translation | (13) | 27 |
Ending Balance | 266 | 598 |
Allowance for Sales Returns | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning Balance | 31 | 32 |
Addition (reduction) to allowance | 0 | (1) |
Ending Balance | $ 31 | $ 31 |
Allowance for Doubtful Accoun_4
Allowance for Doubtful Accounts Receivable and Sales Returns (Additional Information) (Detail) | 12 Months Ended | |
Dec. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($)Customer | |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Number of major customers | 1 | 2 |
Percentage by major customer | 10.00% | 1000.00% |
Accounts Receivable | Company A | ||
Concentration Risk [Line Items] | ||
Percentage by major customer | 23.00% | 19.00% |
Accounts Receivable | Company B | ||
Concentration Risk [Line Items] | ||
Percentage by major customer | 10.00% | |
Revenue by Segment | ||
Concentration Risk [Line Items] | ||
Percentage by major customer | 30.00% | 25.00% |
Revenues | $ | $ 17,600,000 | $ 17,300,000 |
Mobile Services | Revenue by Segment | ||
Concentration Risk [Line Items] | ||
Number of major customers | 2 | 2 |
Goodwill (Changes in Goodwill)
Goodwill (Changes in Goodwill) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Goodwill | $ 16,976 | $ 17,375 | $ 16,908 |
Goodwill [Roll Forward] | |||
Balance, beginning of year, Goodwill, gross | 328,028 | 327,561 | |
Balance, beginning of year, Accumulated impairment lossses | (310,653) | (310,653) | |
Effects of foreign currency translation | (399) | 467 | |
Total goodwill increase (decrease) | (399) | 467 | |
Balance, end of year, Goodwill, Net | 16,976 | 17,375 | |
Consumer Media | |||
Goodwill [Line Items] | |||
Goodwill | 580 | 580 | |
Goodwill [Roll Forward] | |||
Balance, end of year, Goodwill, Net | 580 | 580 | |
Mobile Services | |||
Goodwill [Line Items] | |||
Goodwill | 2,111 | 2,188 | |
Goodwill [Roll Forward] | |||
Balance, end of year, Goodwill, Net | 2,111 | 2,188 | |
Games | |||
Goodwill [Line Items] | |||
Goodwill | 14,285 | 14,607 | |
Goodwill [Roll Forward] | |||
Balance, end of year, Goodwill, Net | $ 14,285 | $ 14,607 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued Royalties, Current | $ 1,189 | $ 1,149 |
Employee-related Liabilities, Current | 5,761 | 4,512 |
Sales Value Added Taxes And Other Taxes Payable Current | 1,056 | 1,231 |
Operating Lease, Liability, Current | 2,113 | 3,373 |
Business Combination, Contingent Consideration, Liability, Current | 0 | 4,800 |
Other Liabilities, Current | 3,167 | 2,785 |
Accrued Expenses And Other Current Liabilities | $ 13,286 | $ 17,850 |
Notes Payable and Long-term D_2
Notes Payable and Long-term Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2020 | Dec. 31, 2021 | Aug. 31, 2019 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 2 years | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | ||
Letters of Credit Outstanding, Amount | $ 1,000,000 | ||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 600,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,500,000 | ||
Revolving Credit Facility [Member] | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 3.25 | ||
Revolving Credit Facility [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Debt | $ 2,900,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred and charged to expense | $ 3,129,000 | $ 2,529,000 |
Restructuring Reserve [Roll Forward] | ||
Accrued liability beginning balance | 346,000 | 284,000 |
Costs incurred and charged to expense | 3,407,000 | 1,288,000 |
Cash payments | (1,962,000) | (1,226,000) |
Accrued liability ending balance | 1,791,000 | 346,000 |
Accrued and other current liabilities | 13,286,000 | 17,850,000 |
Restructuring Costs Included in Accrued and Other Liabilities, Current | 1,400,000 | |
Restructuring Costs Included in Accrued and Other Liabilities, Noncurrent | 400,000 | |
Employee Separation Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred and charged to expense | 2,151,000 | 1,288,000 |
Restructuring Reserve [Roll Forward] | ||
Accrued liability beginning balance | 346,000 | 110,000 |
Costs incurred and charged to expense | 1,932,000 | 1,288,000 |
Cash payments | (1,962,000) | (1,052,000) |
Accrued liability ending balance | 316,000 | 346,000 |
Contract Termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred and charged to expense | 978,000 | 1,241,000 |
Restructuring Reserve [Roll Forward] | ||
Accrued liability beginning balance | 0 | 174,000 |
Costs incurred and charged to expense | 1,475,000 | 0 |
Cash payments | 0 | (174,000) |
Accrued liability ending balance | $ 1,475,000 | $ 0 |
Shareholders_ Equity (Accumulat
Shareholders’ Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Stockholders' Equity Attributable to Parent, Beginning Balance | $ 46,149,000 | |
Net current period other comprehensive income (loss) | (879,000) | $ 909,000 |
Accumulated other comprehensive loss balance, end of period | 46,073,000 | 46,149,000 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Stockholders' Equity Attributable to Parent, Beginning Balance | (60,641,000) | (61,323,000) |
Translation adjustments | (879,000) | 909,000 |
Translation Adjustment, Foreign Currency, Deconsolidation of Subsidiary Sold | 0 | (227,000) |
Net current period other comprehensive income (loss) | (879,000) | 682,000 |
Accumulated other comprehensive loss balance, end of period | $ (61,520,000) | $ (60,641,000) |
Shareholders_ Equity (Narrative
Shareholders’ Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($)voteshares | Dec. 31, 2020USD ($)shares | Apr. 27, 2021$ / sharesshares | Feb. 29, 2020USD ($)shares | Dec. 31, 2019USD ($) | |
Class of Stock [Line Items] | |||||
Additional funding in exchange for Preferred Stock | $ | $ 800 | ||||
Preferred stock, shares issued | shares | 8,100,000 | ||||
Common stock, issued | shares | 47,257,000 | 38,424,000 | |||
Total stock-based compensation expense | $ | $ 4,224 | $ 1,420 | |||
Preferred stock, Series A | |||||
Class of Stock [Line Items] | |||||
Number of votes available | vote | 1,000 | ||||
Multiple of common stock dividends awarded | 1,000 | ||||
Preferred stock, shares issued | shares | 0 | 0 | |||
Series B Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Additional funding in exchange for Preferred Stock | $ | $ 10,000 | ||||
Preferred stock, shares issued | shares | 8,065,000 | 8,065,000 | 8,064,516 | ||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, issued | shares | 8,250,000 | ||||
Shares Issued, Price Per Share | $ / shares | $ 2.70 | ||||
Proceeds from Issuance of Common Stock | $ | $ 22,300 | ||||
Proceeds from Issuance of Common Stock, Net of Issuance Costs | $ | $ 20,100 |
Employee Stock and Benefit Pl_3
Employee Stock and Benefit Plans (Equity Compensation Plans Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 4,224,000 | $ 1,420,000 |
Total unrecognized compensation cost | $ 2,200,000 | |
Total unrecognized compensation cost, expected recognition period | 3 years | |
Other Long Term Liabilities | $ 700,000 | |
Accrued and other current liabilities | 13,286,000 | 17,850,000 |
Equity Award Modification Included in Accrued Expenses and Other Current Liabilities | 1,300,000 | |
Share-based Payment Arrangement, Cash Used to Settle Award | $ 2,000,000 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Intrinsic value, options exercised | $ 400,000 | $ 0 |
Stock Options | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 7 years | |
Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Restricted Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock reserved for future issuance | shares | 2,300,000 | |
2005 Plan | Restricted Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Factor for increase | 1.6 |
Employee Stock and Benefit Pl_4
Employee Stock and Benefit Plans (Weighted-Average Assumptions Used to Determine Fair Value of Options Granted) (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 0.59% | 0.37% |
Expected term | 3 years 10 months 24 days | 4 years 9 months 18 days |
Volatility | 71.00% | 45.00% |
Employee Stock and Benefit Pl_5
Employee Stock and Benefit Plans (Restricted Stock Unit and Award Activity) (Details) - Restricted Stock Unit - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares [Roll Forward] | ||
Nonvested shares, beginning of year (in shares) | 1,803 | 845 |
Granted (in shares) | 886 | 1,446 |
Vested (in shares) | (392) | (218) |
Forfeited/Canceled (in shares) | (211) | (270) |
Nonvested shares, end of year (in shares) | 2,086 | 1,803 |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Nonvested shares, beginning of year (in dollars per share) | $ 1.65 | $ 2.24 |
Granted (in dollars per share) | 2.26 | 1.49 |
Vested (in dollars per share) | 2.38 | 1.89 |
Forfeited/Canceled (in dollars per share) | 2 | 2.38 |
Nonvested shares, beginning of year (in dollars per share) | $ 1.74 | $ 1.65 |
Total Fair Value of Vested Awards | ||
Total fair value of vested awards | $ 933,000 | $ 412,000 |
Additional Information | ||
Aggregate intrinsic value, outstanding | $ 2,000,000 | |
Weighted average remaining contractual term | 2 years |
Employee Stock and Benefit Pl_6
Employee Stock and Benefit Plans (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Options Outstanding, Number of Shares [Roll Forward] | ||
Number of shares, beginning balance | 6,499 | 7,471 |
Number of shares, Options granted at common stock price | 1,737 | 2,382 |
Number of shares, Options exercised | (258) | 0 |
Number of shares, Options cancelled | (1,499) | (3,354) |
Number of shares, ending balance | 6,479 | 6,499 |
Number of shares, Exercisable | 3,276 | |
Number of shares, Vested and expected to vest | 5,149 | |
Options Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, beginning balance (in dollars per share) | $ 2.97 | $ 4.25 |
Weighted average exercise price, Options granted at common stock price (in dollars per share) | 2.13 | 1.26 |
Weighted average exercise price, Options exercised (in dollars per share) | 2.07 | 0 |
Weighted average exercise price, Options canceled (in dollars per share) | 3.77 | 4.59 |
Weighted average exercise price, ending balance (in dollars per share) | 2.60 | 2.97 |
Weighted average exercise price, exercisable (in dollars per share) | 3.33 | |
Weighted average exercise price, vested and expected to vest (in dollars per share) | 2.80 | |
Weighted Average Fair Value Grant | ||
Weighted average fair value grant, Options granted at common stock prrice (in dollars per share) | $ 1.12 | $ 0.47 |
Options, Additional Information | ||
Weighted average remaining contractual life, outstanding | 4 years 8 months 12 days | |
Weighted average remaining contractual life, exercisable | 3 years 3 months 18 days | |
Weighted average remaining contractual life, vested and expected to vest | 4 years 3 months 18 days | |
Intrinsic value, options exercised | $ 400 | $ 0 |
Employee Stock and Benefit Pl_7
Employee Stock and Benefit Plans (Retirement Savings Plan Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Contribution amount | $ 0.2 | $ 0.3 |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income (Loss) from Continuing Operations [Abstract] | ||
United States operations | $ (17,998) | $ (8,241) |
Foreign operations | (3,015) | 3,182 |
Loss from continuing operations before income taxes | $ (21,013) | $ (5,059) |
Income Taxes (Components of I_2
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
United States federal | $ 117 | $ 202 |
State and local | 54 | 20 |
Foreign | 125 | 530 |
Total current | 296 | 752 |
Deferred: | ||
United States federal | 9 | (495) |
Foreign | 174 | (202) |
Total deferred | 183 | (697) |
Total income tax expense | $ 479 | $ 55 |
Income Taxes (Income Tax Rate R
Income Taxes (Income Tax Rate Reconciliation) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal income tax rate | 21.00% | 21.00% |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||
United States federal tax benefit at statutory rate | $ (4,413,000) | $ (1,062,000) |
State taxes, net of United States federal tax expense (benefit) | 599,000 | (807,000) |
Change in valuation allowance | 5,383,000 | 2,545,000 |
Non-deductible stock compensation | 585,000 | 1,406,000 |
Impact of non-U.S. jurisdictional tax rate difference | (188,000) | (169,000) |
Research and development tax credit | (156,000) | (183,000) |
Non-U.S. withholding tax | 93,000 | 229,000 |
Change in indefinite reinvestment assertion | 76,000 | (8,000) |
Effective Income Tax Rate Reconciliation, Change in Contingent Consideration Liability Fair Value From Acquisition | (218,000) | (1,806,000) |
Other | (674,000) | (90,000) |
Total income tax expense | 479,000 | 55,000 |
Gain (Loss) on Extinguishment of Debt | (2,897,000) | $ 0 |
Extinguishment of Debt, Gain (Loss), Income Tax | $ (608,000) |
Income Taxes (Net Deferred Tax
Income Taxes (Net Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets [Abstract] | ||
United States federal net operating loss carryforwards | $ 70,564 | $ 67,451 |
Deferred expenses | 297 | 314 |
Research and development tax credit carryforwards | 13,025 | 13,350 |
Right of use tax assets | 771 | 2,103 |
Stock-based compensation | 1,547 | 1,498 |
State net operating loss carryforwards | 9,611 | 8,516 |
Foreign net operating loss carryforwards | 27,433 | 27,589 |
Deferred revenue | 36 | 27 |
Equipment, software, and leasehold improvements | 1,402 | 1,841 |
Intangibles | 6,066 | 7,392 |
Other | 2,770 | 1,370 |
Gross deferred tax assets | 133,522 | 131,451 |
Less valuation allowance | (131,522) | (128,314) |
Gross deferred tax assets, net of valuation allowance | 2,000 | 3,137 |
Deferred tax liabilities: | ||
Other intangible assets | (146) | (158) |
Right of use tax liability | 668 | (1,579) |
Undistributed foreign earnings | 954 | 937 |
Other | (637) | (683) |
Gross deferred tax liabilities | (2,405) | (3,357) |
Net deferred tax liabilities | $ (405) | $ (220) |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 655 | $ 5,020 |
Increases related to prior year tax positions | 0 | 77 |
Decreases related to prior year tax positions | (18) | (4,564) |
Increases related to current year tax positions | 104 | 122 |
Balance, end of year | $ 741 | $ 655 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance [Abstract] | |||
Valuation allowance | $ 131,522,000 | $ 128,314,000 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 3,200,000 | 32.5 | |
Income Tax Uncertainties [Abstract] | |||
Unrecognized tax benefits | 741,000 | 655,000 | $ 5,020,000 |
Income Tax Disclosure [Line Items] | |||
Income tax receivables | 0 | 100,000 | |
Research and development tax credit carryforwards | 13,025,000 | 13,350,000 | |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 1,000,000 | 900,000 | |
Internal Revenue Service (IRS) | |||
Income Tax Disclosure [Line Items] | |||
Operating loss carryforwards | $ 336,000,000 | $ 321,200,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Feb. 29, 2020 | |
Earnings Per Share [Abstract] | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ (21,248) | $ (4,830) | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (733) | (22) | |
Net Income (Loss) Attributable to Parent | $ (21,981) | $ (4,852) | |
Weighted average common shares outstanding used to compute basic EPS | 44,277,000 | 38,272,000 | |
Dilutive effect of stock based awards and Series B Preferred Stock | 0 | 0 | |
Weighted average common shares outstanding used to compute diluted EPS | 44,277,000 | 38,272,000 | |
Income (Loss) from Continuing Operations, Per Basic Share | $ (0.48) | $ (0.13) | |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | (0.02) | 0 | |
Total net loss per share - Basic | (0.50) | (0.13) | |
Continuing operations | (0.48) | (0.13) | |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | (0.02) | 0 | |
Total net loss per share - Diluted | $ (0.50) | $ (0.13) | |
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect | 4,400,000 | 6,800,000 | |
Preferred stock, shares issued | 8,100,000 |
Leases Overview (Detail)
Leases Overview (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Impairment Loss | $ 2,461,000 | $ 1,055,000 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 1,100,000 | $ 900,000 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 4 years |
Details of Lease Assets and Lia
Details of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating Lease, Expense, Including Sublease Income | $ 3,058 | $ 4,118 |
Operating Lease, Variable Rent Expense | 646 | 711 |
Operating Leases, Rent Expense, Sublease Rentals | 548 | 1,330 |
Operating Lease, Expense | 3,156 | 3,499 |
Operating Lease, Payments | $ 4,109 | $ 4,356 |
Operating Lease, Weighted Average Remaining Lease Term | 2 years | 3 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.73% | 4.95% |
Gain (Loss) on Termination of Lease | $ 3,600 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 2,310,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 1,390,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 967,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 195,000 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 0 | |
Lessee, Operating Lease, Liability, Payments, Due | 4,862,000 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 449,000 | |
Operating Lease, Liability | 4,413,000 | |
Executory costs excluded | 1,800,000 | |
Sublease income receivable in future | 100,000 | |
Operating Lease, Liability, Noncurrent | 2,300,000 | $ 6,837,000 |
Operating Lease, Liability, Current | $ 2,113,000 | $ 3,373,000 |
Commitments and Contingencies (
Commitments and Contingencies (Commitments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency, Damages Sought, Value | $ 2.6 |
Segment Information (Narrative)
Segment Information (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Segment Information (Segment Re
Segment Information (Segment Results) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 58,183 | $ 68,062 |
Cost of revenue | 13,756 | 16,465 |
Gross Profit | 44,427 | 51,597 |
Operating expenses | 65,300 | 56,621 |
Operating Income (Loss), Total | (20,873) | (5,024) |
Consumer Media | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 10,301 | 12,581 |
Mobile Services | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 23,788 | 26,889 |
Games | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 24,094 | 28,592 |
Operating Segments | Consumer Media | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 10,301 | 12,581 |
Cost of revenue | 1,816 | 2,273 |
Gross Profit | 8,485 | 10,308 |
Operating expenses | 7,427 | 8,889 |
Operating Income (Loss), Total | 1,058 | 1,419 |
Operating Segments | Mobile Services | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 23,788 | 26,889 |
Cost of revenue | 5,720 | 6,725 |
Gross Profit | 18,068 | 20,164 |
Operating expenses | 24,299 | 24,787 |
Operating Income (Loss), Total | (6,231) | (4,623) |
Operating Segments | Games | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 24,094 | 28,592 |
Cost of revenue | 6,192 | 7,451 |
Gross Profit | 17,902 | 21,141 |
Operating expenses | 19,463 | 19,936 |
Operating Income (Loss), Total | (1,561) | 1,205 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Cost of revenue | 28 | 16 |
Operating expenses | 14,111 | 3,009 |
Operating Income (Loss), Total | $ (14,139) | $ (3,025) |
Segment Information (Revenue by
Segment Information (Revenue by Geographic Region) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | $ 58,183 | $ 68,062 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | 36,494 | 43,704 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | 9,133 | 9,375 |
Rest of the World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | $ 12,556 | $ 14,983 |
Segment Information (Long-Lived
Segment Information (Long-Lived Assets by Geographic Region) (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 22,438 | $ 27,183 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 14,402 | 18,318 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 6,682 | 7,638 |
Rest of the World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,354 | $ 1,227 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 03, 2020 | Jul. 17, 2020 | Feb. 29, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||||
Additional funding in exchange for Preferred Stock | $ 800 | ||||||
Maximum ownership Mr.Glaser can have | 3850.00% | ||||||
Convertible Notes Payable | $ 1,400 | $ 700 | |||||
Equity Method Investment, Ownership Percentage | 4600.00% | ||||||
Preferred stock, shares issued | 8,100,000 | ||||||
Deconsolidation, Gain (Loss), Amount | $ 2,000 | $ (1,961) | $ 0 | ||||
Carrying value of Rhapsody investment | 2,200 | ||||||
Gain on Dilution of Ownership in Subsidiary | 6,000 | ||||||
Income (Loss) from Equity Method Investments | $ 3,800 | ||||||
Series B Preferred Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Additional funding in exchange for Preferred Stock | $ 10,000 | ||||||
Preferred stock, shares issued | 8,065,000 | 8,065,000 | 8,064,516 |
Uncategorized Items - rnwk-2021
Label | Element | Value |
Goodwill, Gross | us-gaap_GoodwillGross | $ 327,629,000 |
Goodwill, Impaired, Accumulated Impairment Loss | us-gaap_GoodwillImpairedAccumulatedImpairmentLoss | 310,653,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations | $ 22,179,000 |