Pfsweb (PFSW) 10-Q 7 Feb 22 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Feb. 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	000-28275
Entity Registrant Name	PFSweb, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-2837058
Entity Address, Address Line One	505 Millennium Drive,
Entity Address, City or Town	Allen
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75013
City Area Code	972
Local Phone Number	881-2900
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	PFSW
Security Exchange Name	NASDAQ
Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Shell Company	false
Entity Common Stock, Shares Outstanding		22,132,876
Amendment Flag	false
Document Fiscal Year Focus	2021
Entity Central Index Key	0001095315
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 12,486	$ 10,359
Restricted cash	214	214
Accounts receivable, net of allowance for doubtful accounts of $548 and $611 at June 30, 2021 and December 31, 2020, respectively	49,117	69,594
Inventories, net of reserves of $107 and $96 at June 30, 2021 and December 31, 2020, respectively	4,036	3,644
Other receivables	2,530	3,314
Prepaid expenses and other current assets	6,020	7,524
Current assets of discontinued operations	54,465	13,920
Total current assets	128,868	108,569
Property and equipment:
Cost	95,588	97,343
Less: accumulated depreciation	(78,415)	(79,826)
Property and equipment	17,173	17,517
Operating lease right-of-use assets, net	33,945	34,350
Goodwill	22,358	22,358
Other assets	1,557	385
Long-term assets of discontinued operations	0	31,717
Total assets	203,901	214,896
Current liabilities:
Trade accounts payable	26,982	34,613
Accrued expenses	20,008	26,242
Current portion of operating lease liabilities	9,391	9,399
Current portion of long-term debt and finance lease obligations	49,732	3,411
Deferred revenues	3,216	4,595
Current liabilities of discontinued operations	11,049	6,285
Total current liabilities	120,378	84,545
Long-term debt and capital lease obligations, less current portion	151	39,069
Deferred revenue, less current portion	1,374	1,341
Operating lease liabilities, less current portion	29,279	30,012
Other liabilities	6,529	5,286
Long-term liabilities of discontinued operations	0	545
Total liabilities	157,711	160,798
COMMITMENTS AND CONTINGENCIES
Shareholders' equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized; none issued or outstanding	0	0
Common stock, $0.001 par value; 35,000,000 shares authorized; 21,209,300 and 20,408,558 issued at June 30, 2021 and December 31, 2020, respectively; and 21,175,833 and 20,375,091 outstanding at June 30, 2021 and December 31, 2020, respectively	21	20
Additional paid-in capital	170,486	168,244
Accumulated deficit	(123,554)	(113,712)
Accumulated other comprehensive loss	(638)	(329)
Treasury stock at cost, 33,467 shares	(125)	(125)
Total shareholders’ equity	46,190	54,098
Total liabilities and shareholders’ equity	$ 203,901	$ 214,896

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 548	$ 611
Inventory reserves	$ 107	$ 96
Preferred stock, par value (in USD per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	35,000,000	35,000,000
Common stock, shares issued (in shares)	21,209,300	20,408,558
Common stock, shares outstanding (in shares)	21,175,833	20,375,091
Treasury stock, shares (in shares)	33,467	33,467

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues:
Total revenues	$ 61,099	$ 65,291	$ 121,803	$ 124,417
Cost of service fee revenue
Total costs of revenues	49,745	51,675	98,237	98,939
Gross profit	11,354	13,616	23,566	25,478
Selling, general and administrative expenses	15,678	12,514	28,609	25,075
Income (loss) from operations	(4,324)	1,102	(5,043)	403
Interest expense, net	333	374	708	788
Income (loss) before income taxes	(4,657)	728	(5,751)	(385)
Income tax expense (benefit), net	(155)	332	124	613
Net income (loss) from continuing operations	(4,502)	396	(5,875)	(998)
Income (loss) from discontinued operations before income taxes	(590)	(1,088)	(1,410)	233
Income tax expense, net	2,528	161	2,557	186
Net income (loss) from discontinued operations	(3,118)	(1,249)	(3,967)	47
Net loss	$ (7,620)	$ (853)	$ (9,842)	$ (951)
Basic earnings (loss) per share:
Net income (loss) from continuing operations per share (in USD per share)	$ (0.21)	$ 0.02	$ (0.28)	$ (0.05)
Net loss from discontinued operations per share (in USD per share)	(0.15)	(0.06)	(0.19)	0
Basic loss per share (in USD per share)	(0.36)	(0.04)	(0.47)	(0.05)
Diluted earnings (loss) per share:
Net income (loss) from continuing operations per share (in USD per share)	(0.21)	0.02	(0.28)	(0.05)
Net loss from discontinued operations per share (in USD per share)	(0.15)	(0.06)	(0.19)	0
Diluted loss per share (in USD per share)	$ (0.36)	$ (0.04)	$ (0.47)	$ (0.05)
Weighted average number of shares outstanding:
Basic (in shares)	21,166	19,800	21,221	19,739
Diluted (in shares)	21,166	20,527	21,221	19,739
Comprehensive loss:
Net loss	$ (7,620)	$ (853)	$ (9,842)	$ (951)
Foreign currency translation adjustment	46	(77)	(309)	(1,021)
Total comprehensive loss	(7,574)	(930)	(10,151)	(1,972)
Service fee revenue
Revenues:
Revenues	43,009	44,852	88,529	81,577
Cost of service fee revenue
Total costs of revenues	31,863	31,561	65,393	56,833
Product revenue, net
Revenues:
Revenues	4,492	5,915	8,800	13,447
Cost of service fee revenue
Total costs of revenues	4,284	5,590	8,370	12,713
Pass-through revenue
Revenues:
Revenues	13,598	14,524	24,474	29,393
Cost of service fee revenue
Total costs of revenues	$ 13,598	$ 14,524	$ 24,474	$ 29,393

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2019		19,465,877				33,467
Beginning balance at Dec. 31, 2019	$ 48,042	$ 19	$ 158,192	$ (108,743)	$ (1,301)	$ (125)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(951)			(951)
Stock-based compensation	5,698		5,698
Exercise of stock options (in shares)		34,500
Exercise of stock options	127		127
Issuance of shares under stock-based compensation awards (in shares)		476,354
Tax withholding on shares under stock-based compensation awards	(878)		(878)
Foreign currency translation	(1,021)				(1,021)
Ending balance (in shares) at Jun. 30, 2020		19,976,731				33,467
Ending balance at Jun. 30, 2020	51,017	$ 19	163,139	(109,694)	(2,322)	$ (125)
Beginning balance (in shares) at Mar. 31, 2020		19,499,220				33,467
Beginning balance at Mar. 31, 2020	47,472	$ 19	158,664	(108,841)	(2,245)	$ (125)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(853)			(853)
Stock-based compensation	5,153		5,153
Exercise of stock options (in shares)		34,500
Exercise of stock options	127		127
Issuance of shares under stock-based compensation awards (in shares)		443,011
Tax withholding on shares under stock-based compensation awards	(805)		(805)
Foreign currency translation	(77)				(77)
Ending balance (in shares) at Jun. 30, 2020		19,976,731				33,467
Ending balance at Jun. 30, 2020	51,017	$ 19	163,139	(109,694)	(2,322)	$ (125)
Beginning balance (in shares) at Dec. 31, 2020		20,408,558				33,467
Beginning balance at Dec. 31, 2020	54,098	$ 20	168,244	(113,712)	(329)	$ (125)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(9,842)			(9,842)
Stock-based compensation	3,454		3,454
Exercise of stock options (in shares)		143,083
Exercise of stock options	697		697
Issuance of shares under stock-based compensation awards (in shares)		657,659
Issuance of shares under stock-based compensation awards	0	$ 1	(1)
Tax withholding on shares under stock-based compensation awards	(1,908)		(1,908)
Foreign currency translation	(309)				(309)
Ending balance (in shares) at Jun. 30, 2021		21,209,300				33,467
Ending balance at Jun. 30, 2021	46,190	$ 21	170,486	(123,554)	(638)	$ (125)
Beginning balance (in shares) at Mar. 31, 2021		20,482,974				33,467
Beginning balance at Mar. 31, 2021	52,751	$ 20	169,474	(115,934)	(684)	$ (125)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(7,620)			(7,620)
Stock-based compensation	2,601		2,601
Exercise of stock options (in shares)		68,667
Exercise of stock options	320		320
Issuance of shares under stock-based compensation awards (in shares)		657,659
Issuance of shares under stock-based compensation awards	0	$ 1	(1)
Tax withholding on shares under stock-based compensation awards	(1,908)		(1,908)
Foreign currency translation	46				46
Ending balance (in shares) at Jun. 30, 2021		21,209,300				33,467
Ending balance at Jun. 30, 2021	$ 46,190	$ 21	$ 170,486	$ (123,554)	$ (638)	$ (125)

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (9,842)	$ (951)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	4,262	4,249
Deferred income taxes	(77)	102
Stock-based compensation expense	3,454	5,698
Other	62	471
Changes in operating assets and liabilities:
Accounts receivable	14,504	6,666
Inventories	(412)	(1,096)
Prepaid expenses, other receivables and other assets	1,714	(2,194)
Operating leases	(301)	(693)
Trade accounts payable, deferred revenues, accrued expenses and other liabilities	(13,688)	(15,056)
Net cash used in operating activities	(324)	(2,804)
Cash flows from investing activities:
Purchases of property and equipment	(1,985)	(1,722)
Proceeds from sale of property and equipment	6	142
Net cash used in investing activities	(1,979)	(1,580)
Cash flows from financing activities:
Net proceeds from issuance of common stock	697	127
Taxes paid on behalf of employees for withheld shares	(1,908)	(878)
Payments on finance lease obligations	(511)	(653)
Payments on revolving loan	(84,830)	(71,707)
Borrowings on revolving loan	92,630	74,707
Payments on other debt	(1,330)	(946)
Borrowings on other debt	49	1,193
Net cash provided by financing activities	4,797	1,843
Effect of exchange rates on cash, cash equivalents and restricted cash	(389)	(213)
Net increase (decrease) in cash and cash equivalents	2,105	(2,754)
Cash and cash equivalents, beginning of period	10,359	11,354
Restricted cash, beginning of period	214	214
Cash and cash equivalents discontinued operations, beginning of period	392	1,080
Cash, cash equivalents and restricted cash, beginning of period	10,965	12,648
Cash and cash equivalents, end of period	12,486	8,964
Restricted cash, end of period	214	214
Cash and cash equivalents discontinued operations, end of period	370	716
Cash, cash equivalents and restricted cash, end of period	13,070	9,894
Supplemental cash flow information:
Cash paid for income taxes	2,466	466
Cash paid for interest	619	742
Non-cash investing and financing activities:
Property and equipment acquired under long-term debt and finance leases	$ 1,818	$ 1,489

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of PFSweb, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include all normal and recurring adjustments necessary to present fairly the unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss, statements of shareholders' equity, and statements of cash flows for the periods indicated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020. We refer to PFSweb, Inc. and its subsidiaries collectively as “PFSweb,” the “Company,” “us,” “we” and “our” in these unaudited condensed consolidated financial statements. In July 2021, we announced an agreement to sell our LiveArea Professional Services business unit ("LiveArea") and the divestiture was completed on August 25, 2021 ("the LiveArea Transaction"). As of June 30, 2021, the criteria for reporting LiveArea as a discontinued operation were met and as such, all periods presented in the Company's Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021 (this "Form 10-Q") have been recast to present LiveArea as a discontinued operation. Results of our operations for interim periods may not be indicative of results for the full fiscal year. See Note 3. Discontinued Operations and Note 9. Subsequent Events for additional information on our sale of LiveArea. Revision of previously issued consolidated financial statements In connection with the preparation of its financial statements for the quarter ended June 30, 2021, the Company identified an immaterial error related to deferred income taxes that were incorrectly recorded in prior periods. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality and SAB No. 108, Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the materiality of this error both quantitatively and qualitatively and determined that it was not material to any previously issued interim or annual consolidated financial statements. However, adjusting for the cumulative effect of this error in the consolidated statement of operations for the three months ended June 30, 2021 would be material to the Company’s results for this period as the cumulative amount of the error increased over time. As such, the Company has revised its prev iously issued consolidated balance sheet as of December 31, 2020 and its unaudited condensed consolidated financial statements for the three and six months ended June 30, 2020 to correct the error. The accompanying financial statements and relevant footnotes to the condensed consolidated financial statements in this Form 10-Q have been revised to correct for the immaterial error discussed above. The tables below provide reconciliations of our previously reported amounts to our revised amounts to correct for the immaterial error and to recast certain amounts in order to present LiveArea as a discontinued operation in the Company's consolidated balance sheet as of December 31, 2020 and its unaudited condensed consolidated financial statements for the three and six months ended June 30, 2020. See Note 3. Discontinued Operations and Note 9. Subsequent Events for additional information on our sale of LiveArea. The effect of the above adjustments on the consolidated balance sheet at December 31, 2020 is as follows (in thousands): December 31, 2020 Adjustments As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Long-term assets of discontinued operations $ — $ 29,982 $ 1,735 $ 31,717 Total assets $ 213,161 $ — $ 1,735 $ 214,896 Accumulated deficit $ (115,447) $ — $ 1,735 $ (113,712) Total shareholders’ equity $ 52,363 $ — $ 1,735 $ 54,098 Total liabilities and shareholders’ equity $ 213,161 $ — $ 1,735 $ 214,896 The effect of the above adjustments on the consolidated statement of operations and comprehensive income (loss) for the three months ended June 30, 2020 is as follows (in thousands, except per share data): Three Months Ended June 30, 2020 Adjustments As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Income (loss) from discontinued operations before income taxes $ — $ (1,088) $ — $ (1,088) Income tax expense (benefit), net — 295 (134) 161 Net income (loss) from discontinued operations — (1,383) 134 (1,249) Net income (loss) $ (987) $ — $ 134 $ (853) Basic earnings (loss) per share: Net income (loss) from discontinued operations per share $ — $ (0.07) $ 0.01 $ (0.06) Basic income (loss) per share $ (0.05) $ — $ 0.01 $ (0.04) Diluted earnings (loss) per share: Net income (loss) from discontinued operations per share $ — $ (0.07) $ 0.01 $ (0.06) Diluted income (loss) per share $ (0.05) $ — $ 0.01 $ (0.04) Comprehensive income (loss): Net income (loss) $ (987) $ — $ 134 $ (853) Total comprehensive income (loss) $ (1,064) $ — $ 134 $ (930) The effect of the above adjustments on the consolidated statement of operations and comprehensive income (loss) for the six months ended June 30, 2020 is as follows (in thousands, except per share data): Six Months Ended June 30, 2020 Adjustments As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Income (loss) from discontinued operations before income taxes $ — $ 233 $ — $ 233 Income tax expense (benefit), net — 453 (267) 186 Net income (loss) from discontinued operations — (220) 267 47 Net income (loss) $ (1,218) $ — $ 267 $ (951) Basic earnings (loss) per share: Net income (loss) from discontinued operations per share $ — $ (0.01) $ 0.01 $ — Basic income (loss) per share $ (0.06) $ — $ 0.01 $ (0.05) Diluted earnings (loss) per share: Net income (loss) from discontinued operations per share $ — $ (0.01) $ 0.01 $ — Diluted income (loss) per share $ (0.06) $ — $ 0.01 $ (0.05) Comprehensive income (loss): Net income (loss) $ (1,218) $ — $ 267 $ (951) Total comprehensive income (loss) $ (2,239) $ — $ 267 $ (1,972) The effect of the above adjustments on the consolidated statement of shareholders’ equity for the three months ended June 30, 2020 is as follows (in thousands): Three Months Ended June 30, 2020 Adjustments Accumulated deficit As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Balance, March 31, 2020 $ (110,174) $ — $ 1,333 $ (108,841) Net loss (987) — 134 (853) Balance, June 30, 2020 $ (111,161) $ — $ 1,467 $ (109,694) The effect of the above adjustments on the consolidated statement of shareholders’ equity for the six months ended June 30, 2020 is as follows (in thousands): Six Months Ended June 30, 2020 Adjustments Accumulated deficit As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Balance, December 31, 2019 $ (109,943) $ — $ 1,200 $ (108,743) Net loss (1,218) — 267 (951) Balance, June 30, 2020 $ (111,161) $ — $ 1,467 $ (109,694) The effect of the above adjustments on the consolidated statement of cash flows for the six months ended June 30, 2020 is as follows (in thousands): Six Months Ended June 30, 2020 Adjustments As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Cash flows from operating activities: Net loss $ (1,218) $ — $ 267 $ (951) Deferred income taxes $ 369 $ — $ (267) $ 102 Net cash used in operating activities $ (2,804) $ — $ — $ (2,804)

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The recognition and allocation of certain revenues, costs of revenues and selling, general and administrative expenses in these unaudited condensed consolidated financial statements also require management estimates and assumptions. Estimates and assumptions about future events and their effects cannot be determined with certainty. The Company bases its estimates on historical experience and various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as the operating environment changes. These changes have been included in the unaudited condensed consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. Based on a critical assessment of accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes the Company’s unaudited condensed consolidated financial statements are fairly stated in accordance with U.S. GAAP and provide a fair presentation of the Company’s financial position and results of operations. Furthermore, we considered the impact of the COVID-19 pandemic on the use of estimates and assumptions used for financial reporting and determined that there was no adverse material impact to our results of operations for the three and six months ended June 30, 2021; however, the extent and duration of future impacts of the COVID-19 pandemic and any resulting economic impact are largely unknown and difficult to predict due to these unknown factors which may have a material impact on our financial position and results of operations in the future. For a complete set of our significant accounting policies, refer to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. Other than the presentation of LiveArea as a discontinued operation, there were no changes to our significant accounting policies during the three and six-month periods ended June 30, 2021. Income Taxes For the three and six months ended June 30, 2021 and 2020, we have utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes—Interim Reporting,” to calculate the interim income tax provision. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year to date period as if it was the annual period and determines the income tax expense or benefit on that basis. We believe that, at this time, the use of this discrete method is more appropriate than the annual effective tax rate method as (i) the estimated annual effective tax rate method is not reliable due to the high degree of uncertainty in estimating annual pretax earnings by certain jurisdiction and (ii) our ongoing assessment that the recoverability of our deferred tax assets is not likely in certain jurisdictions. Impact of Recently Issued Accounting Standards Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as improve consistency of application by clarifying and amending existing guidance. The Company adopted ASU No. 2019-12 on January 1, 2021, the effect of which was not material on its financial position, results of operations, and cash flows. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ," ("ASU 2016-13") which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019 for all public entities, excluding smaller reporting companies, and after December 15, 2022 for smaller reporting companies. It requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. We will adopt ASU 2016-13 on January 1, 2023. We are currently in the early phase of evaluating the impact of the adoption of ASU 2016-13 on our condensed consolidated financial statements.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations On July 2, 2021, the Company entered into a definitive agreement to sell LiveArea for $250.0 million in cash, subject to certain adjustments and customary closing conditions including receipt of regulatory approvals. The LiveArea Transaction closed on August 25, 2021. As of June 30, 2021, we met the criteria set forth in ASC 205-20, "Presentation of Financial Statements - Discontinued Operations"; therefore, the LiveArea segment has been presented as a discontinued operation for all periods presented in this Form 10-Q. As a result of the LiveArea Transaction, we now only operate in one business segment, PFS Operations, and therefore will no longer present segment data. See Note 9. Subsequent Events for additional information on our LiveArea Transaction. The following table presents the carrying amount of major classes of assets and liabilities of LiveArea and a reconciliation to the amounts reported in the condensed consolidated balance sheets (in thousands): (Unaudited) June 30, December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 370 $ 392 Accounts receivable, net of allowance for doubtful accounts of $884 and $854 at June 30, 2021 and December 31, 2020, respectively 17,222 11,184 Related party receivable 525 730 Other receivables 559 444 Prepaid expenses and other current assets 1,505 1,170 Current assets of discontinued operations 13,920 Property and equipment, net 1,578 1,661 Operating lease right-of use assets 3,133 632 Identifiable intangibles, net 524 665 Goodwill 23,339 23,257 Other assets 5,710 5,502 Long-term assets of discontinued operations 31,717 Total assets of discontinued operations $ 54,465 $ 45,637 LIABILITIES Current liabilities: Trade accounts payable $ 1,120 $ 1,035 Accrued expenses 6,655 4,639 Current portion of operating lease liabilities 557 88 Current portion of long-term debt and finance lease obligations 2 3 Deferred revenues 130 520 Current liabilities of discontinued operations 6,285 Long-term debt and capital lease obligations, less current portion 4 4 Operating lease liabilities 2,581 541 Long-term liabilities of discontinued operations 545 Total liabilities of discontinued operations $ 11,049 $ 6,830 The following table presents the major components of net income (loss) of LiveArea and a reconciliation to the amounts reported in the unaudited condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenues: Service fee revenue $ 19,783 $ 17,120 $ 36,581 $ 34,693 Related party revenue 106 24 574 24 Total revenues 19,889 17,144 37,155 34,717 Costs of revenues: Cost of service fee revenue 10,325 9,204 20,039 18,648 Gross profit 9,564 7,940 17,116 16,069 Selling, general and administrative expenses 10,154 9,027 18,526 15,836 Interest expense, net — 1 — — Income (loss) from discontinued operations before income taxes (590) (1,088) (1,410) 233 Income tax expense 2,528 161 2,557 186 Net income (loss) from discontinued operations $ (3,118) $ (1,249) $ (3,967) $ 47 The following table presents the depreciation and amortization, capital expenditures and significant noncash operating items of LiveArea (in thousands): Six Months Ended June 30, 2021 2020 Cash flows from operating activities discontinued operations: Depreciation and amortization $ 405 $ 537 Stock-based compensation expense $ 1,056 $ 2,400 Cash flows from investing activities discontinued operations: Capital expenditures $ 102 $ 12

Revenue from Contracts with Cli

Revenue from Contracts with Clients and Customers	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Clients and Customers	Revenue from Contracts with Clients and Customers Contract Assets and Contract Liabilities Changes in costs to fulfill contract assets decreased $1.9 million from December 31, 2020 to June 30, 2021, due to a decrease of approximately $2.1 million for amortization and recognition of costs, offset by an increase of approximately $0.2 million from new projects in the six months ended June 30, 2021. Costs to fulfill contract assets relate to deferred costs, which are included within other current assets and/or other assets, and software development costs, which are included within property and equipment, in our condensed consolidated balance sheets. Changes in contract liabilities decreased $0.3 million from December 31, 2020 to June 30, 2021, due to a decrease of approximately $8.2 million for amortization and recognition of revenue, offset by an increase of approximately $7.9 million from new projects in the six months ended June 30, 2021. Contract losses recognized for the six months ended June 30, 2021 were not material. Accrued contract liabilities are included within accrued expenses in our condensed consolidated balance sheets. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, and customer advances and deposits (contract liabilities) on the condensed consolidated balance sheets. Changes in the contract asset and liability balances during the six months ended June 30, 2021 were not materially impacted by any other factors. Contract balances consist of the following (in thousands): June 30, 2021 December 31, 2020 Contract Assets Costs to fulfill $ 3,651 $ 5,575 Total contract assets $ 3,651 $ 5,575 Contract Liabilities Accrued contract liabilities $ 2,271 $ 1,214 Deferred revenue 4,590 5,936 Total contract liabilities $ 6,861 $ 7,150 Remaining performance obligations represent the transaction price of firm orders for which work has not yet been performed. The amount reported for remaining performance obligations does not include 1) contracts that are less than one year in duration, 2) contracts for which we recognize revenue based on the right to invoice for services performed, or 3) variable consideration allocated entirely to a wholly unsatisfied performance obligation. Much of our revenue qualifies for one of these exemptions. As of June 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or more was $3.6 million. We expect to recognize revenue on approximately 51% of the remaining performance obligations in 2021, 37% in 2022, and the remaining recognized thereafter. Disaggregation of Revenues The following table presents our revenues, excluding sales and usage-based taxes, disaggregated by timing of revenue recognition (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenues: Over time $ 56,607 $ 59,376 $ 113,003 $ 110,970 Point-in-time 4,492 5,915 8,800 13,447 Total revenues $ 61,099 $ 65,291 $ 121,803 $ 124,417 The following table presents our revenues, excluding sales and usage-based taxes, disaggregated by region (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenues by region: North America $ 50,743 $ 50,770 $ 99,287 $ 99,994 Europe 10,356 14,521 22,516 24,423 India — — — — Total revenues $ 61,099 $ 65,291 $ 121,803 $ 124,417

Inventory Financing

Inventory Financing	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Inventory Financing	Inventory FinancingSupplies Distributors, an indirect wholly-owned subsidiary of the Company, has a short-term credit facility with IBM Credit LLC and its assignees (“IBM Credit Facility”) to finance its purchase and distribution of Ricoh products in the United States, providing financing for eligible Ricoh inventory and certain receivables up to $7.5 million, as per an amended agreement. The agreement has no stated maturity date and provides either party the ability to exit the facility following a 90-day notice. Given the structure of this facility and as outstanding balances, which represent inventory purchases, are repaid within twelve months, we have classified the outstanding amounts under this facility, which were $3.7 million and $3.6 million as of June 30, 2021 and December 31, 2020, respectively, as trade accounts payable in the condensed consolidated balance sheets. As of June 30, 2021, Supplies Distributors had $0.3 million of available credit under this facility. The IBM Credit Facility contains cross default provisions, various restrictions upon the ability of Supplies Distributors to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), provide guarantees, make investments and loans, pledge assets, make changes to capital stock ownership structure and pay dividends. The IBM Credit Facility also contains financial covenants, such as annualized revenue to working capital, net profit after tax to revenue, and total liabilities to tangible net worth, as defined, and is secured by certain of the assets of Supplies Distributors, as well as a collateralized guaranty of PFSweb. Additionally, PFSweb is required to maintain a minimum Subordinated Note receivable balance from Supplies Distributors of $1.0 million, as per an amended agreement. Borrowings under the IBM Credit Facility accrue interest, after a defined free financing period, at prime rate plus 0.5%, which resulted in a weighted average interest rate of 3.75% and 3.75% as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, the Company was in compliance with all financial covenants under the IBM Credit Facility, however, due to the late filing of this Form 10-Q, the Company became in violation of certain of its covenants under the IBM Credit Facility. On December 14, 2021, the Company received a consent from the lender thereunder, which waived the event of default caused by the late filing for an indefinite period of time.

Debt and Finance Lease Obligati

Debt and Finance Lease Obligations	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Debt and Finance Lease Obligations	Debt and Finance Lease Obligations Outstanding debt and finance lease obligations consist of the following (in thousands): June 30, 2021 December 31, 2020 U.S. Credit Agreement Revolver $ 41,300 $ 33,500 Equipment loan 8,114 8,035 Debt issuance costs (184) (224) Finance Leases 567 1,049 Other 86 120 Total 49,883 42,480 Less current portion of long-term debt 49,732 3,411 Long-term debt, less current portion $ 151 $ 39,069 U.S. Credit Agreement On November 1, 2018, we entered into Amendment No. 1 to our Credit Agreement with Regions Bank and certain other banking parties (the “Amended Facility”). The Amended Facility provided for an increase in availability of our revolving loans to $60.0 million, with the ability for a further increase of $20.0 million to a total of $80.0 million, and the elimination of the term loan. Amounts outstanding under the term loan were reconstituted as revolving loans. The Amended Facility also extended the maturity date to November 1, 2023 and provided for, subject to approval, up to an additional $10.0 million in equipment financing. As of June 30, 2021, we had no available credit under the Amended Facility. As of June 30, 2021 and December 31, 2020, the weighted average interest rate on the Amended Facility was 2.77% and 2.52%, respectively. As of June 30, 2021, we had approval for $1.6 million of available credit in equipment financing. Due to the late filing of this Form 10-Q, the Company was in violation of certain of its covenants under the Amended Facility. On August 11, 2021, the Company received a consent from the lenders thereunder, which waived the event of default caused by the late filing, and extended the delivery date of this Form 10-Q until August 31, 2021. While this waiver was not extended beyond this date, in connection with the LiveArea Transaction, all amounts outstanding under the Amended Facility were paid in full on August 25, 2021 and this Amended Facility was terminated. All amounts outstanding under the Amended Facility at June 30, 2021 have been included in current portion of long-term debt and finance lease obligations on the June 30, 2021 condensed consolidated balance sheet. See Note 9. Subsequent Events for additional information on the LiveArea Transaction.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per ShareBasic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the reporting period. Diluted earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common stock and common stock equivalents outstanding for the reporting period. In periods when we recognize a net loss from continuing operations, we exclude the impact of outstanding common stock equivalents from the diluted loss per share calculation as their inclusion would have an antidilutive effect. For the three and six month periods ended June 30, 2021 we had outstanding common stock equivalents of approximately 3.2 million for each period that have been excluded from the calculations of diluted earnings per share attributable to common stockholders because their effect would have been antidilutive. For the six months ended June 30, 2020 we had outstanding common stock equivalents of approximately 3.1 million that have been excluded from the calculations of diluted earnings per share attributable to common stockholders because their effect would have been antidilutive.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is subject to claims in the ordinary course of business, including claims of alleged infringement by the Company or its subsidiaries of the patents, trademarks and other intellectual property rights of third parties. The Company is generally required to indemnify its service fee clients against any third party claims asserted against such clients alleging infringement by the Company of the patents, trademarks and other intellectual property rights of third parties. While we are unable to determine the ultimate outcome of any liabilities resulting from these claims, we do not believe the resolution of any particular matter will have a material adverse effect on the Company’s financial position or results of operations.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Event On July 2, 2021, the Company entered into a definitive agreement to sell LiveArea for $250.0 million in cash, subject to certain adjustments and customary closing conditions including receipt of regulatory approvals. The LiveArea Transaction closed on August 25, 2021 for initial gross proceeds of approximately $250.0 million. As a result of the LiveArea Transaction, the Company expects to release a majority of its deferred tax valuation allowance applicable to its federal net operating loss carryforwards during the three months ended September 30, 2021. In connection with the LiveArea Transaction, the Company entered into a transaction services agreement with the purchaser to provide certain accounting and administrative services for a period of up to twelve months. Income generated from transaction services provided to the purchaser will be reflected in selling, general and administrative expenses from continuing operations in the condensed consolidated statement of operations for the three months ended September 30, 2021. On August 25, 2021, the Company used $62.7 million of the LiveArea Transaction proceeds to fully repay and extinguish its Amended Facility. As a result of the full repayment of our Amended Facility with Regions Bank, we recognized a $0.4 million loss on extinguishment of debt in the third quarter of 2021 which will be reflected in our results of continuing operations for the three months ended September 30, 2021. Additionally, in connection with the LiveArea Transaction, in July 2021 the Company's Board of Directors approved a modification to the Company's existing stock-based compensation plans to provide for accelerated vesting of certain restricted stock awards and stock options for LiveArea personnel. As a result of the LiveArea Transaction, approximately 635,000 shares of restricted stock and approximately 160,000 stock options previously awarded to certain executives and employees were accelerated and fully vested on August 25, 2021. Also as a result of the LiveArea Transaction, the Company's Board of Directors approved the full payout of the 2021 cash compensation plan to certain LiveArea executives and employees. We recorded incremental compensation expense of $3.3 million and $0.3 million rela ted to the stock-based compensation modification and full targeted payout of the 2021 cash compensation plan, respectively, which will be reflected in the results of discontinued operations for the three months ended September 30, 2021 and an additional total of $0.7 million will be reflected in the results of continuing operations during the period from October 1, 2021 through March 31, 2022. Furthermore, certain executives and employees of PFSweb, Inc., including the LiveArea business segment, received cash transaction bonuses as a result of the successful completion of the LiveArea Transaction. Compensation expense of $1.0 million and $3.5 million will be reflected in the results of continuing operations and discontinued operations, respectively, for the three months ended September 30, 2021. See Note 3. Discontinued Operations for additional information on the LiveArea Transaction.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements of PFSweb, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include all normal and recurring adjustments necessary to present fairly the unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss, statements of shareholders' equity, and statements of cash flows for the periods indicated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020. We refer to PFSweb, Inc. and its subsidiaries collectively as “PFSweb,” the “Company,” “us,” “we” and “our” in these unaudited condensed consolidated financial statements. In July 2021, we announced an agreement to sell our LiveArea Professional Services business unit ("LiveArea") and the divestiture was completed on August 25, 2021 ("the LiveArea Transaction"). As of June 30, 2021, the criteria for reporting LiveArea as a discontinued operation were met and as such, all periods presented in the Company's Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021 (this "Form 10-Q") have been recast to present LiveArea as a discontinued operation. Results of our operations for interim periods may not be indicative of results for the full fiscal year. See Note 3. Discontinued Operations and Note 9. Subsequent Events for additional information on our sale of LiveArea.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The recognition and allocation of certain revenues, costs of revenues and selling, general and administrative expenses in these unaudited condensed consolidated financial statements also require management estimates and assumptions. Estimates and assumptions about future events and their effects cannot be determined with certainty. The Company bases its estimates on historical experience and various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as the operating environment changes. These changes have been included in the unaudited condensed consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. Based on a critical assessment of accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes the Company’s unaudited condensed consolidated financial statements are fairly stated in accordance with U.S. GAAP and provide a fair presentation of the Company’s financial position and results of operations. Furthermore, we considered the impact of the COVID-19 pandemic on the use of estimates and assumptions used for financial reporting and determined that there was no adverse material impact to our results of operations for the three and six months ended June 30, 2021; however, the extent and duration of future impacts of the COVID-19 pandemic and any resulting
Income Taxes	Income Taxes For the three and six months ended June 30, 2021 and 2020, we have utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes—Interim Reporting,” to calculate the interim income tax provision. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year to date period as if it was the annual period and determines the income tax expense or benefit on that basis. We believe that, at this time, the use of this discrete method is more appropriate than the annual effective tax rate method as (i) the estimated annual effective tax rate method is not reliable due to the high degree of uncertainty in estimating annual pretax earnings by certain jurisdiction and (ii) our ongoing assessment that the recoverability of our deferred tax assets is not likely in certain jurisdictions.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as improve consistency of application by clarifying and amending existing guidance. The Company adopted ASU No. 2019-12 on January 1, 2021, the effect of which was not material on its financial position, results of operations, and cash flows. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ," ("ASU 2016-13") which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019 for all public entities, excluding smaller reporting companies, and after December 15, 2022 for smaller reporting companies. It requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. We will adopt ASU 2016-13 on January 1, 2023. We are currently in the early phase of evaluating the impact of the adoption of ASU 2016-13 on our condensed consolidated financial statements.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Error Corrections and Prior Period Adjustments	The effect of the above adjustments on the consolidated balance sheet at December 31, 2020 is as follows (in thousands): December 31, 2020 Adjustments As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Long-term assets of discontinued operations $ — $ 29,982 $ 1,735 $ 31,717 Total assets $ 213,161 $ — $ 1,735 $ 214,896 Accumulated deficit $ (115,447) $ — $ 1,735 $ (113,712) Total shareholders’ equity $ 52,363 $ — $ 1,735 $ 54,098 Total liabilities and shareholders’ equity $ 213,161 $ — $ 1,735 $ 214,896 The effect of the above adjustments on the consolidated statement of operations and comprehensive income (loss) for the three months ended June 30, 2020 is as follows (in thousands, except per share data): Three Months Ended June 30, 2020 Adjustments As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Income (loss) from discontinued operations before income taxes $ — $ (1,088) $ — $ (1,088) Income tax expense (benefit), net — 295 (134) 161 Net income (loss) from discontinued operations — (1,383) 134 (1,249) Net income (loss) $ (987) $ — $ 134 $ (853) Basic earnings (loss) per share: Net income (loss) from discontinued operations per share $ — $ (0.07) $ 0.01 $ (0.06) Basic income (loss) per share $ (0.05) $ — $ 0.01 $ (0.04) Diluted earnings (loss) per share: Net income (loss) from discontinued operations per share $ — $ (0.07) $ 0.01 $ (0.06) Diluted income (loss) per share $ (0.05) $ — $ 0.01 $ (0.04) Comprehensive income (loss): Net income (loss) $ (987) $ — $ 134 $ (853) Total comprehensive income (loss) $ (1,064) $ — $ 134 $ (930) The effect of the above adjustments on the consolidated statement of operations and comprehensive income (loss) for the six months ended June 30, 2020 is as follows (in thousands, except per share data): Six Months Ended June 30, 2020 Adjustments As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Income (loss) from discontinued operations before income taxes $ — $ 233 $ — $ 233 Income tax expense (benefit), net — 453 (267) 186 Net income (loss) from discontinued operations — (220) 267 47 Net income (loss) $ (1,218) $ — $ 267 $ (951) Basic earnings (loss) per share: Net income (loss) from discontinued operations per share $ — $ (0.01) $ 0.01 $ — Basic income (loss) per share $ (0.06) $ — $ 0.01 $ (0.05) Diluted earnings (loss) per share: Net income (loss) from discontinued operations per share $ — $ (0.01) $ 0.01 $ — Diluted income (loss) per share $ (0.06) $ — $ 0.01 $ (0.05) Comprehensive income (loss): Net income (loss) $ (1,218) $ — $ 267 $ (951) Total comprehensive income (loss) $ (2,239) $ — $ 267 $ (1,972) The effect of the above adjustments on the consolidated statement of shareholders’ equity for the three months ended June 30, 2020 is as follows (in thousands): Three Months Ended June 30, 2020 Adjustments Accumulated deficit As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Balance, March 31, 2020 $ (110,174) $ — $ 1,333 $ (108,841) Net loss (987) — 134 (853) Balance, June 30, 2020 $ (111,161) $ — $ 1,467 $ (109,694) The effect of the above adjustments on the consolidated statement of shareholders’ equity for the six months ended June 30, 2020 is as follows (in thousands): Six Months Ended June 30, 2020 Adjustments Accumulated deficit As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Balance, December 31, 2019 $ (109,943) $ — $ 1,200 $ (108,743) Net loss (1,218) — 267 (951) Balance, June 30, 2020 $ (111,161) $ — $ 1,467 $ (109,694) The effect of the above adjustments on the consolidated statement of cash flows for the six months ended June 30, 2020 is as follows (in thousands): Six Months Ended June 30, 2020 Adjustments As Previously Reported Discontinued Operations Deferred Tax Asset As Revised Cash flows from operating activities: Net loss $ (1,218) $ — $ 267 $ (951) Deferred income taxes $ 369 $ — $ (267) $ 102 Net cash used in operating activities $ (2,804) $ — $ — $ (2,804)

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]
Summary of Disposal Groups Including Discontinued Operations	The following table presents the carrying amount of major classes of assets and liabilities of LiveArea and a reconciliation to the amounts reported in the condensed consolidated balance sheets (in thousands): (Unaudited) June 30, December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 370 $ 392 Accounts receivable, net of allowance for doubtful accounts of $884 and $854 at June 30, 2021 and December 31, 2020, respectively 17,222 11,184 Related party receivable 525 730 Other receivables 559 444 Prepaid expenses and other current assets 1,505 1,170 Current assets of discontinued operations 13,920 Property and equipment, net 1,578 1,661 Operating lease right-of use assets 3,133 632 Identifiable intangibles, net 524 665 Goodwill 23,339 23,257 Other assets 5,710 5,502 Long-term assets of discontinued operations 31,717 Total assets of discontinued operations $ 54,465 $ 45,637 LIABILITIES Current liabilities: Trade accounts payable $ 1,120 $ 1,035 Accrued expenses 6,655 4,639 Current portion of operating lease liabilities 557 88 Current portion of long-term debt and finance lease obligations 2 3 Deferred revenues 130 520 Current liabilities of discontinued operations 6,285 Long-term debt and capital lease obligations, less current portion 4 4 Operating lease liabilities 2,581 541 Long-term liabilities of discontinued operations 545 Total liabilities of discontinued operations $ 11,049 $ 6,830 The following table presents the major components of net income (loss) of LiveArea and a reconciliation to the amounts reported in the unaudited condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenues: Service fee revenue $ 19,783 $ 17,120 $ 36,581 $ 34,693 Related party revenue 106 24 574 24 Total revenues 19,889 17,144 37,155 34,717 Costs of revenues: Cost of service fee revenue 10,325 9,204 20,039 18,648 Gross profit 9,564 7,940 17,116 16,069 Selling, general and administrative expenses 10,154 9,027 18,526 15,836 Interest expense, net — 1 — — Income (loss) from discontinued operations before income taxes (590) (1,088) (1,410) 233 Income tax expense 2,528 161 2,557 186 Net income (loss) from discontinued operations $ (3,118) $ (1,249) $ (3,967) $ 47 The following table presents the depreciation and amortization, capital expenditures and significant noncash operating items of LiveArea (in thousands): Six Months Ended June 30, 2021 2020 Cash flows from operating activities discontinued operations: Depreciation and amortization $ 405 $ 537 Stock-based compensation expense $ 1,056 $ 2,400 Cash flows from investing activities discontinued operations: Capital expenditures $ 102 $ 12

Revenue from Contracts with C_2

Revenue from Contracts with Clients and Customers (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Summary of Contract Balances	Contract balances consist of the following (in thousands): June 30, 2021 December 31, 2020 Contract Assets Costs to fulfill $ 3,651 $ 5,575 Total contract assets $ 3,651 $ 5,575 Contract Liabilities Accrued contract liabilities $ 2,271 $ 1,214 Deferred revenue 4,590 5,936 Total contract liabilities $ 6,861 $ 7,150
Summary of Revenues Disaggregated by Revenue Source and Region	The following table presents our revenues, excluding sales and usage-based taxes, disaggregated by timing of revenue recognition (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenues: Over time $ 56,607 $ 59,376 $ 113,003 $ 110,970 Point-in-time 4,492 5,915 8,800 13,447 Total revenues $ 61,099 $ 65,291 $ 121,803 $ 124,417 The following table presents our revenues, excluding sales and usage-based taxes, disaggregated by region (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenues by region: North America $ 50,743 $ 50,770 $ 99,287 $ 99,994 Europe 10,356 14,521 22,516 24,423 India — — — — Total revenues $ 61,099 $ 65,291 $ 121,803 $ 124,417

Debt and Finance Lease Obliga_2

Debt and Finance Lease Obligations (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Summary of Debt and Finance Lease Obligations	Outstanding debt and finance lease obligations consist of the following (in thousands): June 30, 2021 December 31, 2020 U.S. Credit Agreement Revolver $ 41,300 $ 33,500 Equipment loan 8,114 8,035 Debt issuance costs (184) (224) Finance Leases 567 1,049 Other 86 120 Total 49,883 42,480 Less current portion of long-term debt 49,732 3,411 Long-term debt, less current portion $ 151 $ 39,069

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Financial Position [Abstract]
Net income (loss) from discontinued operations	$ (3,118)	$ (1,249)	$ (3,967)	$ 47
Income tax expense, net	$ 2,528	$ 161	$ 2,557	$ 186

Basis of Presentation - Balance

Basis of Presentation - Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Long-term assets of discontinued operations	$ 0		$ 31,717
Total assets	203,901		214,896
Accumulated deficit	(123,554)		(113,712)
Total shareholders’ equity	46,190	$ 52,751	54,098	$ 51,017	$ 47,472	$ 48,042
Total liabilities and shareholders’ equity	$ 203,901		214,896
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Long-term assets of discontinued operations			0
Total assets			213,161
Accumulated deficit			(115,447)
Total shareholders’ equity			52,363
Total liabilities and shareholders’ equity			213,161
Adjustments | Discontinued Operations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Long-term assets of discontinued operations			29,982
Adjustments | Deferred Tax Asset
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Long-term assets of discontinued operations			1,735
Total assets			1,735
Accumulated deficit			1,735
Total shareholders’ equity			1,735
Total liabilities and shareholders’ equity			$ 1,735

Basis of Presentation - Operati

Basis of Presentation - Operation and Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income (loss) from discontinued operations before income taxes	$ (590)	$ (1,088)	$ (1,410)	$ 233
Income tax expense, net	2,528	161	2,557	186
Net income (loss) from discontinued operations	(3,118)	(1,249)	(3,967)	47
Net loss	$ (7,620)	$ (853)	$ (9,842)	$ (951)
Basic earnings (loss) per share:
Net loss from discontinued operations per share (in USD per share)	$ (0.15)	$ (0.06)	$ (0.19)	$ 0
Basic (in USD per share)	(0.36)	(0.04)	(0.47)	(0.05)
Diluted earnings (loss) per share:
Net loss from discontinued operations per share (in USD per share)	(0.15)	(0.06)	(0.19)	0
Diluted (in USD per share)	$ (0.36)	$ (0.04)	$ (0.47)	$ (0.05)
Comprehensive loss:
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (7,574)	$ (930)	$ (10,151)	$ (1,972)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income (loss) from discontinued operations before income taxes		0		0
Income tax expense, net		0		0
Net income (loss) from discontinued operations		0		0
Net loss		$ (987)		$ (1,218)
Basic earnings (loss) per share:
Net loss from discontinued operations per share (in USD per share)		$ 0		$ 0
Basic (in USD per share)		(0.05)		(0.06)
Diluted earnings (loss) per share:
Net loss from discontinued operations per share (in USD per share)		0		0
Diluted (in USD per share)		$ (0.05)		$ (0.06)
Comprehensive loss:
Comprehensive Income (Loss), Net of Tax, Attributable to Parent		$ (1,064)		$ (2,239)
Adjustments | Discontinued Operations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income (loss) from discontinued operations before income taxes		(1,088)		233
Income tax expense, net		295		453
Net income (loss) from discontinued operations		$ (1,383)		$ (220)
Basic earnings (loss) per share:
Net loss from discontinued operations per share (in USD per share)		$ (0.07)		$ (0.01)
Diluted earnings (loss) per share:
Net loss from discontinued operations per share (in USD per share)		$ (0.07)		$ (0.01)
Adjustments | Deferred Tax Asset
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income tax expense, net		$ (134)		$ (267)
Net income (loss) from discontinued operations		134		267
Net loss		$ 134		$ 267
Basic earnings (loss) per share:
Net loss from discontinued operations per share (in USD per share)		$ 0.01		$ 0.01
Basic (in USD per share)		0.01		0.01
Diluted earnings (loss) per share:
Net loss from discontinued operations per share (in USD per share)		0.01		0.01
Diluted (in USD per share)		$ 0.01		$ 0.01
Comprehensive loss:
Comprehensive Income (Loss), Net of Tax, Attributable to Parent		$ 134		$ 267

Basis of Presentation - Stockho

Basis of Presentation - Stockholder Equity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 52,751	$ 47,472	$ 54,098	$ 48,042
Net loss	(7,620)	(853)	(9,842)	(951)
Ending balance	46,190	51,017	46,190	51,017
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(115,934)	(108,841)	(113,712)	(108,743)
Net loss	(7,620)	(853)	(9,842)	(951)
Ending balance	$ (123,554)	(109,694)	(123,554)	(109,694)
As Previously Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			52,363
Net loss		(987)		(1,218)
As Previously Reported | Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		(110,174)		(109,943)
Net loss		(987)		(1,218)
Ending balance		(111,161)		(111,161)
Adjustments | Deferred Tax Asset
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 1,735
Net loss		134		267
Adjustments | Deferred Tax Asset | Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		1,333		1,200
Net loss		134		267
Ending balance		$ 1,467		$ 1,467

Basis of Presentation - Cash Fl

Basis of Presentation - Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	$ (7,620)	$ (853)	$ (9,842)	$ (951)
Deferred income taxes			(77)	102
Net cash used in operating activities			$ (324)	(2,804)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss		(987)		(1,218)
Deferred income taxes				369
Net cash used in operating activities				(2,804)
Adjustments | Deferred Tax Asset
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss		$ 134		267
Deferred income taxes				$ (267)

Discontinued Operations - Asset

Discontinued Operations - Assets and Liabilities (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Allowance for doubtful accounts		$ 548	$ 611
Current assets of discontinued operations		54,465	13,920
Long-term assets of discontinued operations		0	31,717
Current liabilities:
Trade accounts payable		26,982	34,613
Current liabilities of discontinued operations		11,049	6,285
Long-term liabilities of discontinued operations		0	545
Live Area
Current assets:
Cash and cash equivalents		370	392
Allowance for doubtful accounts		884	854
Accounts receivable, net of allowance for doubtful accounts of $884 and $854 at June 30, 2021 and December 31, 2020, respectively		17,222	11,184
Related party receivable		525	730
Other receivables		559	444
Prepaid expenses and other current assets		1,505	1,170
Current assets of discontinued operations			13,920
Property and equipment, net		1,578	1,661
Operating lease right-of use assets		3,133	632
Identifiable intangibles, net		524	665
Goodwill		23,339	23,257
Other assets		5,710	5,502
Long-term assets of discontinued operations			31,717
Total assets of discontinued operations		54,465	45,637
Current liabilities:
Trade accounts payable		1,120	1,035
Accrued expenses		6,655	4,639
Current portion of operating lease liabilities		557	88
Current portion of long-term debt and finance lease obligations		2	3
Deferred revenues		130	520
Current liabilities of discontinued operations			6,285
Long-term debt and capital lease obligations, less current portion		4	4
Operating lease liabilities		2,581	541
Long-term liabilities of discontinued operations			545
Long-term liabilities of discontinued operations		$ 11,049	$ 6,830
Subsequent Event | Live Area
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal consideration	$ 250,000

Discontinued Operations - Recon

Discontinued Operations - Reconciliation Amount (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Costs of revenues:
Income (loss) from discontinued operations before income taxes	$ (590)	$ (1,088)	$ (1,410)	$ 233
Income tax expense	2,528	161	2,557	186
Net income (loss) from discontinued operations	(3,118)	(1,249)	(3,967)	47
Live Area
Revenues:
Revenue from disposal	19,889	17,144	37,155	34,717
Costs of revenues:
Gross profit	9,564	7,940	17,116	16,069
Selling, general and administrative expenses	10,154	9,027	18,526	15,836
Interest expense, net	0	1	0	0
Income (loss) from discontinued operations before income taxes	(590)	(1,088)	(1,410)	233
Income tax expense	2,528	161	2,557	186
Net income (loss) from discontinued operations	(3,118)	(1,249)	(3,967)	47
Service fee revenue | Live Area
Revenues:
Revenue from disposal	19,783	17,120	36,581	34,693
Costs of revenues:
Cost of service fee revenue	10,325	9,204	20,039	18,648
Pass-through revenue | Live Area
Revenues:
Revenue from disposal	$ 106	$ 24	$ 574	$ 24

Discontinued Operations - Signi

Discontinued Operations - Significant Noncash Operating (Details) - Live Area - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities discontinued operations:
Depreciation and amortization	$ 405	$ 537
Stock-based compensation expense	1,056	2,400
Cash flows from investing activities discontinued operations:
Capital expenditures	$ 102	$ 12

Revenue from Contracts with C_3

Revenue from Contracts with Clients and Customers - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021USD ($)
Revenue from Contract with Customer [Abstract]
Changes in costs to fulfill contract assets	$ 1.9
Amortization of costs to fulfill contract assets	2.1
Increase in costs to fulfill contracts with customers from new projects	0.2
Change in contract liabilities	(0.3)
Change in contract liabilities from amortization and recognition and recognition of revenue	8.2
Increase in contract liabilities for new projects	$ 7.9

Revenue from Contracts with C_4

Revenue from Contracts with Clients and Customers - Summary of Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Contract Assets
Costs to fulfill	$ 3,651	$ 5,575
Contract with Customer, Liability [Abstract]
Accrued contract liabilities	2,271	1,214
Deferred revenue	4,590	5,936
Total contract liabilities	$ 6,861	$ 7,150

Revenue from Contracts with C_5

Revenue from Contracts with Clients and Customers - Additional Information, Performance Obligation (Details) $ in Millions	Jun. 30, 2021USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligation, amount	$ 3.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue from Contract with Customer [Abstract]
Performance obligation, percentage	51.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected timing of satisfaction	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue from Contract with Customer [Abstract]
Performance obligation, percentage	37.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected timing of satisfaction	1 year

Revenue from Contracts with C_6

Revenue from Contracts with Clients and Customers - Summary of Revenues Disaggregated (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 61,099	$ 65,291	$ 121,803	$ 124,417
North America
Disaggregation of Revenue [Line Items]
Revenues	50,743	50,770	99,287	99,994
Europe
Disaggregation of Revenue [Line Items]
Revenues	10,356	14,521	22,516	24,423
India
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Over time
Disaggregation of Revenue [Line Items]
Revenues	56,607	59,376	113,003	110,970
Point-in-time
Disaggregation of Revenue [Line Items]
Revenues	$ 4,492	$ 5,915	$ 8,800	$ 13,447

Inventory Financing - Additiona

Inventory Financing - Additional Information (Details) - Line of Credit - Short Term Credit Facility - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Maximum credit under credit agreement	$ 7.5
Termination notice period	90 days
Outstanding borrowings	$ 3.7	$ 3.6
Available credit under credit agreement	0.3
Subordinated note outstanding, minimum limit	$ 1
Weighted average interest rate	3.75%	3.75%
Prime Rate
Line of Credit Facility [Line Items]
Variable rate basis	0.50%

Debt and Finance Lease Obliga_3

Debt and Finance Lease Obligations - Summary of Outstanding Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Finance Leases	$ 567	$ 1,049
Other	86	120
Total	49,883	42,480
Less current portion of long-term debt	49,732	3,411
Long-term debt, less current portion	151	39,069
U.S. Credit Agreement
Debt Instrument [Line Items]
Debt issuance costs	(184)	(224)
U.S. Credit Agreement | Revolver
Debt Instrument [Line Items]
U.S. Credit Agreement	41,300	33,500
U.S. Credit Agreement | Equipment loan
Debt Instrument [Line Items]
U.S. Credit Agreement	$ 8,114	$ 8,035

Debt and Finance Lease Obliga_4

Debt and Finance Lease Obligations - U.S. Credit Agreement - Additional Information (Details) - U.S. Credit Agreement - Revolving Loan Facility - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Nov. 01, 2018
Line of Credit Facility [Line Items]
Availability under credit agreement			$ 60,000,000
Available increase under credit agreement			20,000,000
Availability under credit agreement after available increase under credit agreement			80,000,000
Availability under credit agreement for equipment purchases			$ 10,000,000
Available credit under credit agreement	$ 0
Weighted average interest rate on outstanding borrowings	2.77%	2.52%
Available credit under credit agreement for equipment purchases	$ 1,600,000

Earnings (Loss) Per Share - Add

Earnings (Loss) Per Share - Additional Information (Details) - shares shares in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Outstanding common stock excluded from calculations of diluted earnings per share (in shares)	3.2	3.2	3.1

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) shares in Thousands, $ in Millions	Aug. 25, 2021	Sep. 30, 2021	Mar. 31, 2022	Sep. 30, 2021	Jul. 02, 2021
Share-based Payment Arrangement, Employee | Forecast
Subsequent Event [Line Items]
Share-based compensation expense			$ 0.7
Subsequent Event
Subsequent Event [Line Items]
Share-based compensation expense		$ 1		$ 3.5
Subsequent Event | Live Area
Subsequent Event [Line Items]
Disposal consideration					$ 250
Subsequent Event | Share-based Payment Arrangement, Employee
Subsequent Event [Line Items]
Share-based compensation expense		0.3		$ 3.3
Subsequent Event | Share-based Payment Arrangement, Employee | Restricted stock
Subsequent Event [Line Items]
Awards granted (in shares)	635
Subsequent Event | Share-based Payment Arrangement, Employee | Stock options
Subsequent Event [Line Items]
Awards granted (in shares)	160
Subsequent Event | Amended Credit Facility
Subsequent Event [Line Items]
Extinguishment of debt	$ 62.7
Loss on extinguishment of debt		$ 0.4