Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-31932 | |
Entity Registrant Name | CATASYS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 88-0464853 | |
Entity Address, Address Line One | 2120 Colorado Ave. | |
Entity Address, Address Line Two | Suite 230 | |
Entity Address, City or Town | Santa Monica | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90404 | |
City Area Code | 310 | |
Local Phone Number | 444-4300 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | CATS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,985,292 | |
Entity Central Index Key | 0001136174 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and restricted cash | $ 12,001 | $ 13,610 |
Receivables, net | 2,982 | 3,615 |
Unbilled receivables | 2,719 | 2,093 |
Deferred costs | 847 | 341 |
Prepaid expenses and other current assets | 986 | 733 |
Total current assets | 19,535 | 20,392 |
Long-term assets: | ||
Property and equipment, net | 142 | 150 |
Restricted cash, long-term | 408 | 408 |
Deferred costs, long-term | 156 | 112 |
Right-of-use assets | 2,646 | 2,793 |
Total assets | 22,887 | 23,855 |
Current liabilities: | ||
Accounts payable | 1,734 | 1,385 |
Accrued compensation and benefits | 2,816 | 3,640 |
Deferred revenue | 6,710 | 5,803 |
Current portion of lease liabilities | 533 | 519 |
Other accrued liabilities | 2,739 | 2,060 |
Warrant liabilities | 627 | 691 |
Total current liabilities | 15,159 | 14,098 |
Long-term liabilities: | ||
Long-term debt, net | 33,250 | 31,597 |
Long-term lease liabilities | 1,931 | 2,069 |
Total liabilities | 50,340 | 47,764 |
Stockholders' deficit: | ||
Preferred stock, $0.0001 par value; 50,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value; 500,000,000 shares authorized; 16,876,581 and 16,616,165 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 2 | 2 |
Additional paid-in capital | 311,454 | 307,403 |
Accumulated deficit | (338,909) | (331,314) |
Total stockholders' deficit | (27,453) | (23,909) |
Total liabilities and stockholders' deficit | $ 22,887 | $ 23,855 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 16,876,581 | 16,616,165 |
Common stock, shares outstanding (in shares) | 16,876,581 | 16,616,165 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 12,338 | $ 6,811 |
Cost of revenue | 7,233 | 3,027 |
Gross profit | 5,105 | 3,784 |
Operating expenses | 11,109 | 6,299 |
Operating loss | (6,004) | (2,515) |
Other income / (expense) | 62 | (85) |
Interest expense | (1,653) | (321) |
Net loss | $ (7,595) | $ (2,921) |
Net loss per share, basic and diluted from operations (in dollars per share) | $ (0.45) | $ (0.18) |
Weighted-average shares used to compute basic and diluted net loss per share (in shares) | 16,693 | 16,198 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 16,185,146 | |||
Beginning balance at Dec. 31, 2018 | $ (8,965) | $ 2 | $ 296,688 | $ (305,655) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Reclassification of warrant liability to equity upon adoption of ASU 2017-11 | 86 | 86 | ||
Warrant exercised (in shares) | 20,000 | |||
Warrant exercised | 100 | 100 | ||
Stock compensation expense | 1,024 | 1,024 | ||
Net loss | (2,921) | (2,921) | ||
Ending balance (in shares) at Mar. 31, 2019 | 16,205,146 | |||
Ending balance at Mar. 31, 2019 | $ (10,676) | $ 2 | 297,898 | (308,576) |
Beginning balance (in shares) at Dec. 31, 2019 | 16,616,165 | 16,616,165 | ||
Beginning balance at Dec. 31, 2019 | $ (23,909) | $ 2 | 307,403 | (331,314) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Reclassification of warrant liability to equity upon adoption of ASU 2017-11 | 0 | |||
Warrant exercised (in shares) | 11,049 | |||
Warrant exercised | 20 | 20 | ||
Stock option exercised (in shares) | 223,643 | |||
Stock option exercised | 1,759 | 1,759 | ||
Stock compensation expense (in shares) | 25,724 | |||
Stock compensation expense | 2,272 | 2,272 | ||
Net loss | $ (7,595) | (7,595) | ||
Ending balance (in shares) at Mar. 31, 2020 | 16,876,581 | 16,876,581 | ||
Ending balance at Mar. 31, 2020 | $ (27,453) | $ 2 | $ 311,454 | $ (338,909) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows used in operating activities | ||
Net loss | $ (7,595) | $ (2,921) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 2,272 | 1,024 |
Depreciation | 23 | 38 |
Amortization | 347 | 100 |
Change in fair value of warrant liability | (64) | 91 |
Deferred rent | 0 | (26) |
Changes in operating assets and liabilities: | ||
Accounts payable | 349 | 322 |
Leases liabilities | (88) | 0 |
Other accrued liabilities | (145) | (261) |
Prepaid and other current assets | (612) | (6) |
Deferred revenue | 907 | (501) |
Receivables | 633 | (2,219) |
Unbilled receivables | (626) | 0 |
Net cash used in operating activities | (4,599) | (4,359) |
Cash flows used in investing activities | ||
Purchase of property and equipment | (14) | 0 |
Net cash used in investing activities | (14) | 0 |
Cash flows provided by financing activities | ||
Debt issuance costs | 0 | (105) |
Proceeds from warrant exercise | 20 | 100 |
Proceeds from options exercise | 1,567 | 0 |
Capital lease obligations | (36) | (2) |
Net cash provided by financing activities | 3,004 | 2,493 |
Net increase in cash and restricted cash | (1,609) | (1,866) |
Cash and restricted cash at beginning of period | 14,018 | 3,570 |
Cash and restricted cash at end of period | 12,409 | 1,704 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 0 | 192 |
Non cash financing and investing activities: | ||
Reclassification of warrant liability to equity upon adoption of ASU 2017-11 | 0 | 86 |
Warrants issued in connection with revolving loan | 0 | 461 |
Stock options exercise in transit | 192 | |
Revolving Loan | ||
Cash flows provided by financing activities | ||
Proceeds from debt | 0 | 2,500 |
2024 Notes | ||
Cash flows provided by financing activities | ||
Proceeds from debt | $ 1,453 | $ 0 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Company Overview Catasys, Inc. (“Catasys” or the “Company”) is AI-powered and telehealth-enabled, virtualized outpatient healthcare treatment company whose mission is to help improve the health and save the lives of as many people as possible. The Company’s platform, Catasys PRETM (Predict-Recommend-Engage), organizes and automates healthcare data integration and analytics through the application of machine intelligence to deliver analytic insights. The PRE platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages people who are not receiving the care they need. By combining predictive analytics with human engagement, the Company delivers improved member health and validated outcomes and savings to healthcare payers. The Company’s integrated, technology-enabled OnTrak solution, a critical component of the Catasys PRE platform, is designed to identify and treat members with behavioral conditions that cause or exacerbate chronic medical conditions such as diabetes, hypertension, coronary artery disease, chronic obstructive pulmonary disease, and congestive heart failure, which result in high medical costs. The Company has the ability to engage these members, who do not otherwise seek behavioral healthcare, leveraging proprietary enrollment capabilities built on deep insights into the drivers of care avoidance. OnTrak integrates evidence-based psychosocial and medical interventions delivered either in-person or via telehealth, along with care coaching and inmarket Community Care Coordinators who address the social and environmental determinants of health, including loneliness. Basis of Presentation The accompanying condensed consolidated financial statements include Catasys, Inc. and its wholly-owned subsidiaries and variable interest entities (VIE's). The accompanying condensed consolidated financial statements for Catasys, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and instructions to Form 10-Q and Article 10 of Regulation S-X. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed financial statements included all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for the entire fiscal year. The accompanying financial information should be read in conjunction with the financial statements and the notes thereto included in the most recent Annual Report on Form 10-K for the year-ended December 31, 2019, from which the balance sheet, as of December 31, 2019, has been derived. The Company operates as one segment. Certain prior period amounts reported in condensed consolidated financial statements and notes have been reclassified to conform to current period presentation. As of March 31, 2020, cash and restricted cash was $12.4 million and working capital was approximately $4.4 million. The Company could continue to incur negative cash flows and operating losses for the next twelve months, with an average monthly cash burn rate is approximately $1.5 million for the three months ended March 31, 2020. The Company expects the current cash resources to cover expenses through at least the next twelve months, however, delays in cash collections, revenue, or unforeseen expenditures could impact this estimate. The Company’s ability to fund ongoing operations is dependent on several factors. The Company aims to increase the number of members that are eligible for its solutions by signing new contracts and identifying more eligible members in existing contracts. Additionally, the Company’s funding is dependent upon the success of management’s plan to increase revenue and control expenses. The Company currently operates its OnTrak solutions i n thirty states, as well as the nation's capital. The Company provide services to commercial (employer funded), managed Medicare Advantage, and managed Medicaid and dual eligible (Medicare and Medicaid) populations. The Company generates fees from its launched programs and expects to increase enrollment and fees in the near future. Management’s Plans Historically, we have seen and continue to see net losses, net loss from operations, negative cash flow from operating activities, and historical working capital deficits as we continue through a period of rapid growth. The accompanying financial statements do not reflect any adjustments that might result if we were unable to continue as a going concern. We have alleviated substantial doubt by both entering into contracts for additional revenue-generating health plan customers and expanding our OnTrak program within existing health plan customers. To support this increased demand for services, we invested and will continue to invest in additional headcount needed to support the anticipated growth. Additional management plans include increasing the outreach pool as well as improving our current enrollment rate. We will continue to explore ways to increase operational efficiencies resulting in increase in margins on both existing and new members. We have a growing customer base and believe we are able to fully scale our operations to service the contracts and future enrollment providing leverage in these investments that will generate positive cash flow in the near future. We believe we will have enough capital to cover expenses through the foreseeable future and we will continue to monitor liquidity. If we add more health plans than budgeted, increase the size of the outreach pool by more than we anticipate, decide to invest in new products or seek out additional growth opportunities, we would consider financing these options with either a debt or equity financing. Recently Adopted Accounting Standards In August 2018, the FASB issued Accounting Standard Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820), which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including, among other changes, the consideration of costs and benefits when evaluating disclosure requirements. For public companies, the amendments are effective for annual reporting periods beginning after December 15, 2019, including interim periods within those annual periods. The adoption of of this ASU 2018-13 on January 1, 2020 did not have an impact on its financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, "Simplifying the Accounting for Income Taxes" which enhances and simplifies various aspects of income tax accounting guidance. The guidance is effective for the Company in the first quarter of 2021, although early adoption is permitted. The Company is currently evaluating the impact of adoption of ASU 2019-12 on its consolidated financial statements and related footnote disclosures. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments,” (“ASU 2016-13”). The ASU requires recognition of an estimate of lifetime expected credit losses as an allowance. For small reporting public companies, the amendments are effective for annual reporting periods beginning after December 15, 2022, including interim periods within those annual periods. The Company is currently evaluating the impact of adoption of ASU 2016-13 on its consolidated financial statements and related footnote disclosures. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The following table is a summary of concentration of credit risk by customer revenues and accounts receivables: Three Months Ended Percentage of Revenue 2020 2019 Largest customer 48.2 % 26.5 % 2nd largest customer 18.2 % 25.8 % 3rd largest customer 14.7 % 16.2 % 4th largest customer 10.0 % 11.5 % Remaining customers 8.9 % 20.0 % 100.0 % 100.0 % Percentage of Accounts Receivable March 31, 2020 December 31, 2019 Largest customer 37.6 % 54.3 % 2nd largest customer 31.9 % 15.7 % 3rd largest customer 22.4 % 15.2 % 4th largest customer 4.7 % 3.6 % Remaining customers 3.4 % 11.2 % 100.0 % 100.0 % |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Common Stock | Common Stock Net loss per share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, preferred stock and outstanding stock options and warrants, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. Basic and diluted net loss per share (in thousands, except per share amounts) are as follows: Three months ended March 31, 2020 March 31, 2019 Net loss $ (7,595) $ (2,921) Weighted-average shares of common stock outstanding 16,693 16,198 Net loss per share - basic and diluted $ (0.45) $ (0.18) The following common equivalent shares as of March 31, 2020 and 2019, issuable upon exercise of stock options and warrants have been excluded from the diluted earnings per share calculation as their effect is anti-dilutive: March 31, 2020 March 31, 2019 Warrants to purchase common stock 1,539,926 1,625,108 Options to purchase common stock 3,961,490 4,341,116 Total 5,501,416 5,966,224 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation three Share-based compensation expense was approximately $2.3 million and $1.0 million for the quarters ended March 31, 2020 and 2019, respectively. The company issued $0.4 million of common stock to one of the Company's executives during the quarter ended March 31, 2020. The assumptions used in the Black-Scholes option-pricing model are determined as follows: March 31, 2020 Volatility 78.00 % Risk-free interest rate 1.42%-1.55% Expected life (in years) 2.75-6.08 Dividend yield 0 % The expected volatility assumptions have been based on the historical and expected volatility of our stock and comparable companies, measured over a period generally commensurate with the expected term or acceptable period to determine reasonable volatility. The weighted average expected option term for the quarter ended March 31, 2020, reflects the application of the simplified method prescribed in Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin (“SAB”) No. 107 (as amended by SAB 110), which defines the life as the average of the contractual term of the options and the weighted average vesting period for all option tranches. Stock Options A summary of stock option activity for employees, directors and consultants is as follows: Number of Shares Weighted Average Exercise Price Outstanding as of December 31, 2019 4,006,351 $ 10.92 Granted 638,563 14.95 Exercised (223,643) 7.87 Forfeited (459,781) 12.22 Outstanding as of March 31, 2020 3,961,490 $ 11.59 Options vested and exercisable as of March 31, 2020 1,022,419 $ 11.72 As of March 31, 2020, there was $19.1 million of total unrecognized compensation cost related to non-vested stock compensation arrangements granted to employees, directors and consultants under the 2017 Amended Plan, which is expected to be recognized over a weighted-average period of approximately 2.7 years. Warrants The Company did not issue any stock options to consultants during the three month ended March 31, 2020 compared to 50,000 stock options at a weighted average exercise price of $9.93 for the three month ended March 31, 2019. Stock option expense related to consultants was $0.03 million and $0.01 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was $0.2 million of total unrecognized compensation cost related to non-vested stock compensation arrangements granted to non-employees under the 2017 Amended Plan, which is expected to be recognized over a weighted-average period of approximately 1.9 years. A summary of warrants activity for non-employees is as follows: Number of Warrants Weighted Average Outstanding as of December 31, 2019 1,550,975 $ 6.08 Issued — — Expired — — Exercised (11,049) $ 1.80 Outstanding as of March 31, 2020 1,539,926 $ 6.12 Warrants exercisable as of March 31, 2020 1,539,926 $ 6.12 There were no warrants issued in the three months ended March 31, 2020, compared with 40,279 in the three months ended March 31, 2019. Of the total outstanding warrants as of March 31, 2020, 1,249,189 are held by Acuitas Group Holdings LLC, whose sole managing member is the Company's chairman and chief executive officer. Performance-Based and Market-Based Awards The Company’s Compensation Committee designed a compensation structure to align the compensation levels of certain executives to the performance of the Company through the issuance of performance-based and market-based stock options. The performance-based options vest upon the Company meeting certain revenue targets and the total amount of compensation expense recognized is based on the number of shares that the Company determines are probable of vesting. The market-based options vest upon the Company’s stock price reaching a certain price at a specific performance period and the total amount of compensation expense recognized is based on a monte carlo simulation that factors in the probability of the award vesting. The following table summarizes the Company’s outstanding awards under this structure: Grant Date Performance Measures Vesting Term Performance Period # of Shares Exercise Price December 2017 Weighted Average Price of our common stock is $15.00 for at least twenty trading days within a period of thirty consecutive trading days ending on the trading day prior to January 1, 2023. Fully vest on January 1, 2023 January 1, 2023 642,307 $ 7.50 August 2018 Weighted Average Price of our common stock is $15.00 for at least twenty trading days within a period of thirty consecutive trading days ending on the trading day prior to January 1, 2023. Fully vest on January 1, 2023 January 1, 2023 397,693 $ 7.50 April 2018 The Options will be divided into five equal tranches and Performance Targets to be established by Board of Directors for each tranche at the beginning of the fiscal year Amended and vested 115,950 options based on severance agreement Amended and vested 115,950 options based on severance agreement 115,950 $ 7.50 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LeasesOperating leases In September 2018, the Company signed an operating lease for the new corporate headquarters in Santa Monica, CA (“Santa Monica Headquarters”). The lease agreement includes 7,869 square feet for 60 months commencing in July 2019, which is 30 days following the date the premises were ready for occupancy. The base annual rent is approximately $0.6 million subject to annual adjustments. The Company’s lease liability resulted from the lease of the Santa Monica Headquarters which expires in 2024. This lease does not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The lease includes renewal options and escalation clauses; renewal options have not been included in the calculation of the lease liability and right-of-use asset as the Company is not reasonably certain to exercise the options. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. The Company does not act as a lessor or have any leases classified as financing leases. As of March 31, 2020, the Company has an operating lease liability of approximately $2.1 million and right-of-use asset of approximately $2.3 million, which are included in the condensed consolidated balance sheets. Quantitative information for the operating lease is as follows: Condensed Consolidated Statement of Operations (In thousands) For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Operating lease expense $ 166 $ 74 Short-term lease rent expense 27 3 Total rent expense $ 193 $ 77 Condensed Consolidated Statements of Cash Flows (In thousands) For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Cash paid for Operating Lease Liabilities $ 143 $ 99 Other Information March 31, 2020 March 31, 2019 Weighted-average remaining lease term – operating leases (years) 4.3 0.0 Weighted-average discount rate – operating leases 10.15 % 9.25 % Maturities of the operating lease liabilities are as follows: (In thousands) Amount Remaining in 2020 $ 438 2021 603 2022 623 2023 644 2024 328 Total lease payments 2,636 Less: imputed interest (513) Present value of lease liabilities 2,123 Less: current portion (389) Lease liabilities, non-current $ 1,734 The Company incurred rent expense of approximately $0.2 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively. Capital leases The Company engaged in agreements to lease computer equipment during the quarter ended March 31, 2020. The computer equipment under capital leases is included in right of use asset within the condensed consolidated balance sheets and was $0.3 million as of March 31, 2020. Lease amortization at March 31, 2020 was approximately $0.04 million. As of March 31, 2020, the future minimum lease payments under capital leases are as follows (in thousands): For the Three Months Ended March 31, 2020 Total lease payments $ 367 Less: interest (26) Present value of lease liabilities 341 Less: current portion (144) Lease liabilities, non-current $ 197 |
Leases | LeasesOperating leases In September 2018, the Company signed an operating lease for the new corporate headquarters in Santa Monica, CA (“Santa Monica Headquarters”). The lease agreement includes 7,869 square feet for 60 months commencing in July 2019, which is 30 days following the date the premises were ready for occupancy. The base annual rent is approximately $0.6 million subject to annual adjustments. The Company’s lease liability resulted from the lease of the Santa Monica Headquarters which expires in 2024. This lease does not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The lease includes renewal options and escalation clauses; renewal options have not been included in the calculation of the lease liability and right-of-use asset as the Company is not reasonably certain to exercise the options. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. The Company does not act as a lessor or have any leases classified as financing leases. As of March 31, 2020, the Company has an operating lease liability of approximately $2.1 million and right-of-use asset of approximately $2.3 million, which are included in the condensed consolidated balance sheets. Quantitative information for the operating lease is as follows: Condensed Consolidated Statement of Operations (In thousands) For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Operating lease expense $ 166 $ 74 Short-term lease rent expense 27 3 Total rent expense $ 193 $ 77 Condensed Consolidated Statements of Cash Flows (In thousands) For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Cash paid for Operating Lease Liabilities $ 143 $ 99 Other Information March 31, 2020 March 31, 2019 Weighted-average remaining lease term – operating leases (years) 4.3 0.0 Weighted-average discount rate – operating leases 10.15 % 9.25 % Maturities of the operating lease liabilities are as follows: (In thousands) Amount Remaining in 2020 $ 438 2021 603 2022 623 2023 644 2024 328 Total lease payments 2,636 Less: imputed interest (513) Present value of lease liabilities 2,123 Less: current portion (389) Lease liabilities, non-current $ 1,734 The Company incurred rent expense of approximately $0.2 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively. Capital leases The Company engaged in agreements to lease computer equipment during the quarter ended March 31, 2020. The computer equipment under capital leases is included in right of use asset within the condensed consolidated balance sheets and was $0.3 million as of March 31, 2020. Lease amortization at March 31, 2020 was approximately $0.04 million. As of March 31, 2020, the future minimum lease payments under capital leases are as follows (in thousands): For the Three Months Ended March 31, 2020 Total lease payments $ 367 Less: interest (26) Present value of lease liabilities 341 Less: current portion (144) Lease liabilities, non-current $ 197 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt 2024 Notes In September 2019, the Company entered into a Note Agreement dated September 24, 2019 (the “Note Agreement”) with certain subsidiaries of the Company party thereto as guarantors, Goldman Sachs Specialty Lending Holdings, Inc. and any other purchasers party thereto from time to time (collectively, the “Holders”). Under the Note Agreement, the Company initially issued $35.0 million aggregate principal amount of senior secured notes (the "2024 Notes"), which bear interest at either a floating rate plus an applicable margin in the case of 2024 Notes subject to cash interest payments or a floating rate plus a slightly higher applicable margin in the case of 2024 Notes with interest rate of 15.75% for the three months ended March 31, 2020. The applicable margins are subject to stepdowns, in each case, following the achievement of certain financial ratios. The Company has elected for the $35 million in aggregate principal amount o f 2024 Notes issued on the date of the Note Agreement that such interest shall be payable in cash. The Holder is obligated to purchase up to an additional $10.0 million in principal amount of 2024 Notes during the period from the date of the Note Agreement until the second anniversary thereof. The entire principal amount of the 2024 Notes is due and payable on the fifth anniversary of the Note Agreement unless earlier redeemed upon the occurrence of certain mandatory prepayment events, including with the proceeds of equity or debt issuances, 50% of excess cash flow, asset sales and the amount by which total debt exceeds an applicable leverage multiple. The principal amount of the 2024 Notes increased by $1.5 million in the form of payment in kind of the interest component during the three months ended March 31, 2020. The Note Agreement contains customary covenants, including, among others, covenants that restrict the Company’s ability to incur debt, grant liens, make certain investments and acquisitions, pay dividends, repurchase equity interests, repay certain debt, amend certain contracts, enter into affiliate transactions and asset sales or make certain equity issuances, and covenants that require the Company to, among other things, provide annual, quarterly and monthly financial statements, together with related compliance certificates, maintain its property in good repair, maintain insurance and comply with applicable laws. The Note Agreement also includes covenants with respect to the Company’s maintenance of certain financial ratios, including a fixed charge coverage ratio, leverage ratio and consolidated liquidity as well as minimum levels of consolidated adjusted EBITDA and revenue. The Note Agreement also contains customary events of default, including, among others, payment default, bankruptcy events, cross-default, breaches of covenants and representations and warranties, change of control, judgment defaults and an ownership change within the meaning of Section 382 of the Internal Revenue Code. In the case of an event of default, the Holder may, among other remedies, accelerate the payment of all obligations under the 2024 Notes and all assets of the Company serves as collateral. Any prepayment of the 2024 Notes or reduction of the purchase commitments made on or prior to the second anniversary of the Closing Date must be accompanied by a yield maintenance premium and on or prior to the third anniversary of the Closing Date must be accompanied by a prepayment premium. In accounting for the issuance of the 2024 Notes, the Company separated the 2024 Notes into liability and equity components. The fair value of the liability component was estimated using an interest rate for debt with terms similar to the 2024 Notes. The carrying amount of the equity component was calculated by measuring the fair value based on the Black-Scholes model. The gross proceeds from the transaction was allocated between liability and equity based on the proportionate value. The debt discount is accreted to interest expense over the term of the 2024 Notes using the interest method. The equity component is not re-measured as long as it continues to meet the conditions for equity classification. The assumptions used in the Black-Scholes option-pricing model remain unchanged and are determined as follows: March 31, 2020 Volatility 98.01 % Risk-free interest rate 1.58 % Expected life (in years) 7 Dividend yield 0 % The Company is in compliance with all debt covenants as of March 31, 2020. The net carrying amounts of the liability components consists of the following (in thousands): March 31, 2020 December 31, 2019 Principal $ 37,955 $ 36,502 Less: debt discount (4,705) (4,905) Net carrying amount $ 33,250 $ 31,597 2022 Loan In June 2018, the Company entered into a venture loan and security agreement (the “2022 Loan”) with Horizon Technology Finance Corporation (“Horizon”), which provides for up to $7.5 million in loans to the Company. In addition, in June 2018, the Company entered into a loan and security agreement (the “A/R Facility”) in connection with a $2.5 million receivables financing facility with Corporate Finance, a division of Heritage Bank of Commerce (“Heritage”). The Company borrowed and subsequently repaid $1.9 million on the A/R Facility during the six months ended June 30, 2019. In March 2019, the Company entered into an amended and restated 2022 Loan with Horizon, which provides for up to $15.0 million in loans to the Company, including initial term loans in the amount of $7.5 million previously funded under the original agreement and an additional up to $7.5 million loan in three revolving tranches of $2.5 million in availability, subject to the Company's achievement of trailing three month billings exceeding $5.0 million, $7.0 million and $8.0 million, respectively (collectively, the “Billing Requirements”). An initial advance of $2.5 million was funded upon the execution and delivery of the Amended Loan Agreement, subject to repayment if the foregoing $5.0 million threshold is not reached by July 1, 2019. The Company concurrently entered into an amendment to the previously disclosed $2.5 million A/R Facility with Heritage intended primarily to reflect the amendment and restatement of the Amended Loan Agreement. The Company met all three of the Billing Requirements and as a result have incurred the full $7.5 million under the Amended Loan Agreement. In connection with the Company's entry into the Amended Loan Agreement, the Company issued Horizon 40,279 seven The 2022 Loan bore interest at a floating coupon rate of the amount by which one-month LIBOR exceeds 2.00% plus 9.75%. After September 30, 2020, upon the earlier of (i) payment in full of the principal balance of the 2022 Loan, (ii) an event of default and demand by Lender of payment in full or (iii) on the Loan Maturity Date (September 30, 2022), as applicable, the Company was obligated pay to Lender a payment equal to the greater of $150,000 or 6% of the outstanding principal balance on August 31, 2020. Upon the issuance of the 2024 Notes, the balance of the 2022 Loan was repaid and terminated. As part of the termination, the Company incurred $1.1 million of early termination costs and wrote off deferred debt issuance costs of $1.5 million, which has been recorded in other income/(expense) in the consolidated statement of operations during the year ending December 31, 2019. The following table presents the interest expense recognized related to the 2024 Notes and 2022 Loan (in thousands): Three months ended March 31, 2020 2019 Contractual interest expense $ 1,453 $ 221 Accretion of debt discount 200 100 Total $ 1,653 $ 321 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure fair value. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I) and the lowest priority to unobservable inputs (Level III). The three levels of the fair value hierarchy are described below: Level Input: Input Definition: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The following tables summarize fair value measurements by level as of March 31, 2020 and December 31, 2019, respectively, for assets and liabilities measured at fair value on a recurring basis: Balance as of March 31, 2020 (in thousands) Level I Level II Level III Total Letter of credit (1) $ 408 $ — $ — $ 408 Total assets $ 408 $ — $ — $ 408 Warrant liabilities $ — $ — $ 627 $ 627 Total liabilities $ — $ — $ 627 $ 627 (1) $408,000 is included in restricted cash, long-term on the condensed consolidated balance sheet as of March 31, 2020. Balance as of December 31, 2019 (in thousands) Level I Level II Level III Total Letter of credit (2) $ 408 $ — $ — $ 408 Total assets $ 408 $ — $ — $ 408 Warrant liabilities $ — $ — $ 691 $ 691 Total liabilities $ — $ — $ 691 $ 691 (2) $408,000 is included in restricted cash, long term on the condensed consolidated balance sheet as of December 31st, 2019. Financial instruments classified as Level III in the fair value hierarchy as of March 31, 2020 represent liabilities measured at market value on a recurring basis which include warrant liabilities. In accordance with current accounting rules, the warrant liabilities are being marked-to-market each quarter-end until they are completely settled or expire. The warrants are valued using the Black-Scholes option-pricing model, using both observable and unobservable inputs and assumptions consistent with those used in the estimate of fair value of employee stock options. See Warrant Liabilities below. The carrying value of the 2024 Notes is estimated to approximate their fair value as the variable interest rate of the Senior Secured Notes approximates the market rate for debt with similar terms and risk characteristics. The fair value measurements using significant Level III inputs, and changes therein, for the quarter ended March 31, 2020 are as follows: (in thousands) Level III Balance as of December 31, 2019 $ 691 Issuance of new warrant liability — Change in fair value of warrant liability (64) Balance as of March 31, 2020 $ 627 Warrant Liabilities The assumptions used in the Black-Scholes option-pricing model are determined as follows: March 31, 2020 December 31, 2019 Volatility 98.04 % 98.04 % Risk-free interest rate 0.55 % 1.81 % Weighted average expected life (in years) 6.1 6.25 Dividend yield — % — % |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities As discussed under the heading Management Services Agreement (“MSA”) below, the Company has an MSA with a Texas nonprofit health organization (“TIH”) and a California Professional Corporation (“CIH”). Under the MSA’s, the equity owners of TIH and CIH have only a nominal equity investment at risk, and the Company absorbs or receives a majority of the entity’s expected losses or benefits. The Company participates significantly in the design of these MSA’s. The Company also agrees to provide working capital loans to allow for TIH and CIH to fund their day to day obligations. Substantially all of the activities of TIH and CIH include its decision making, approval or are conducted for its benefit, as evidenced by the facts that (i) the operations of TIH and CIH are conducted primarily using the Company's licensed network of providers and (ii) under the MSA, the Company agrees to provide and perform all non-medical management and administrative services for the entities. Payment of the Company's management fee is subordinate to payments of the obligations of TIH and CIH, and repayment of the working capital loans is not guaranteed by the equity owner of the affiliated medical group or other third party. Creditors of TIH and CIH do not have recourse to the Company's general credit. Based on the design of the entity and the lack of sufficient equity to finance its activities without additional working capital loans, the Company has determined that TIH and CIH are VIEs. The Company is the primary beneficiary required to consolidate the entities as it has power and potentially significant interests in the entities. Accordingly, the Company is required to consolidate the assets, liabilities, revenues and expenses of the managed treatment centers. Management Services Agreement In April 2018, the Company executed an MSA with TIH and in July 2018, the Company executed an MSA with CIH. Under the MSA’s, the Company licenses to TIH and CIH the right to use its proprietary treatment programs and related trademarks and provide all required day-to-day business management services, including, but not limited to: • general administrative support services; • information systems; • recordkeeping; • billing and collection; • obtaining and maintaining all federal, state and local licenses, certifications and regulatory permits. All clinical matters relating to the operation of TIH and CIH and the performance of clinical services through the network of providers shall be the sole and exclusive responsibility of the TIH and CIH Board free of any control or direction from the Company. TIH pays the Company a monthly fee equal to the aggregate amount of (a) its costs of providing management services (including reasonable overhead allocated to the delivery of its services and including salaries, rent, equipment, and tenant improvements incurred for the benefit of the medical group, provided that any capitalized costs will be amortized over a five CIH pays the Company a monthly fee equal to the aggregate amount of (a) its costs of providing management services (including reasonable overhead allocated to the delivery of its services and including salaries, rent, equipment, and tenant improvements incurred for the benefit of the entity, provided that any capitalized costs will be amortized over a five The Company's condensed consolidated balance sheets include the following assets and liabilities from its VIE's (in thousands): (in thousands) March 31, December 31, Cash and cash equivalents $ 634 $ 379 Accounts receivable 694 564 Unbilled receivables 26 — Prepaid and other current assets 17 26 Total assets $ 1,371 $ 969 Accounts payable $ 21 $ 9 Accrued liabilities 168 100 Deferred revenue 65 73 Intercompany payable 938 685 Total liabilities $ 1,192 $ 867 |
Organization (Policies)
Organization (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include Catasys, Inc. and its wholly-owned subsidiaries and variable interest entities (VIE's). The accompanying condensed consolidated financial statements for Catasys, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and instructions to Form 10-Q and Article 10 of Regulation S-X. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed financial statements included all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for the entire fiscal year. The accompanying financial information should be read in conjunction with the financial statements and the notes thereto included in the most recent Annual Report on Form 10-K for the year-ended December 31, 2019, from which the balance sheet, as of December 31, 2019, has been derived. The Company operates as one segment. Certain prior period amounts reported in condensed consolidated financial statements and notes have been reclassified to conform to current period presentation. |
Recently Adopted/Issued Accounting Standards and Pronouncements | Recently Adopted Accounting Standards In August 2018, the FASB issued Accounting Standard Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820), which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including, among other changes, the consideration of costs and benefits when evaluating disclosure requirements. For public companies, the amendments are effective for annual reporting periods beginning after December 15, 2019, including interim periods within those annual periods. The adoption of of this ASU 2018-13 on January 1, 2020 did not have an impact on its financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, "Simplifying the Accounting for Income Taxes" which enhances and simplifies various aspects of income tax accounting guidance. The guidance is effective for the Company in the first quarter of 2021, although early adoption is permitted. The Company is currently evaluating the impact of adoption of ASU 2019-12 on its consolidated financial statements and related footnote disclosures. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments,” (“ASU 2016-13”). The ASU requires recognition of an estimate of lifetime expected credit losses as an allowance. For small reporting public companies, the amendments are effective for annual reporting periods beginning after December 15, 2022, including interim periods within those annual periods. The Company is currently evaluating the impact of adoption of ASU 2016-13 on its consolidated financial statements and related footnote disclosures. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of concentration of risk | The following table is a summary of concentration of credit risk by customer revenues and accounts receivables: Three Months Ended Percentage of Revenue 2020 2019 Largest customer 48.2 % 26.5 % 2nd largest customer 18.2 % 25.8 % 3rd largest customer 14.7 % 16.2 % 4th largest customer 10.0 % 11.5 % Remaining customers 8.9 % 20.0 % 100.0 % 100.0 % Percentage of Accounts Receivable March 31, 2020 December 31, 2019 Largest customer 37.6 % 54.3 % 2nd largest customer 31.9 % 15.7 % 3rd largest customer 22.4 % 15.2 % 4th largest customer 4.7 % 3.6 % Remaining customers 3.4 % 11.2 % 100.0 % 100.0 % |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per share | Basic and diluted net loss per share (in thousands, except per share amounts) are as follows: Three months ended March 31, 2020 March 31, 2019 Net loss $ (7,595) $ (2,921) Weighted-average shares of common stock outstanding 16,693 16,198 Net loss per share - basic and diluted $ (0.45) $ (0.18) |
Schedule of shares excluded from net loss per share | The following common equivalent shares as of March 31, 2020 and 2019, issuable upon exercise of stock options and warrants have been excluded from the diluted earnings per share calculation as their effect is anti-dilutive: March 31, 2020 March 31, 2019 Warrants to purchase common stock 1,539,926 1,625,108 Options to purchase common stock 3,961,490 4,341,116 Total 5,501,416 5,966,224 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of assumptions used in the Black-Scholes option-pricing model | The assumptions used in the Black-Scholes option-pricing model are determined as follows: March 31, 2020 Volatility 78.00 % Risk-free interest rate 1.42%-1.55% Expected life (in years) 2.75-6.08 Dividend yield 0 % |
Summary of stock option activity for employees and directors | A summary of stock option activity for employees, directors and consultants is as follows: Number of Shares Weighted Average Exercise Price Outstanding as of December 31, 2019 4,006,351 $ 10.92 Granted 638,563 14.95 Exercised (223,643) 7.87 Forfeited (459,781) 12.22 Outstanding as of March 31, 2020 3,961,490 $ 11.59 Options vested and exercisable as of March 31, 2020 1,022,419 $ 11.72 |
Summary of warrants activity for non-employees | A summary of warrants activity for non-employees is as follows: Number of Warrants Weighted Average Outstanding as of December 31, 2019 1,550,975 $ 6.08 Issued — — Expired — — Exercised (11,049) $ 1.80 Outstanding as of March 31, 2020 1,539,926 $ 6.12 Warrants exercisable as of March 31, 2020 1,539,926 $ 6.12 |
Schedule of performance based and market based issuances | The following table summarizes the Company’s outstanding awards under this structure: Grant Date Performance Measures Vesting Term Performance Period # of Shares Exercise Price December 2017 Weighted Average Price of our common stock is $15.00 for at least twenty trading days within a period of thirty consecutive trading days ending on the trading day prior to January 1, 2023. Fully vest on January 1, 2023 January 1, 2023 642,307 $ 7.50 August 2018 Weighted Average Price of our common stock is $15.00 for at least twenty trading days within a period of thirty consecutive trading days ending on the trading day prior to January 1, 2023. Fully vest on January 1, 2023 January 1, 2023 397,693 $ 7.50 April 2018 The Options will be divided into five equal tranches and Performance Targets to be established by Board of Directors for each tranche at the beginning of the fiscal year Amended and vested 115,950 options based on severance agreement Amended and vested 115,950 options based on severance agreement 115,950 $ 7.50 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of quantitative information for operating leases | Quantitative information for the operating lease is as follows: Condensed Consolidated Statement of Operations (In thousands) For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Operating lease expense $ 166 $ 74 Short-term lease rent expense 27 3 Total rent expense $ 193 $ 77 Condensed Consolidated Statements of Cash Flows (In thousands) For the Three Months Ended March 31, 2020 For the Three Months Ended March 31, 2019 Cash paid for Operating Lease Liabilities $ 143 $ 99 Other Information March 31, 2020 March 31, 2019 Weighted-average remaining lease term – operating leases (years) 4.3 0.0 Weighted-average discount rate – operating leases 10.15 % 9.25 % |
Schedule of maturities of the operating lease liabilities | Maturities of the operating lease liabilities are as follows: (In thousands) Amount Remaining in 2020 $ 438 2021 603 2022 623 2023 644 2024 328 Total lease payments 2,636 Less: imputed interest (513) Present value of lease liabilities 2,123 Less: current portion (389) Lease liabilities, non-current $ 1,734 |
Schedule of future minimum lease payments under capital leases | As of March 31, 2020, the future minimum lease payments under capital leases are as follows (in thousands): For the Three Months Ended March 31, 2020 Total lease payments $ 367 Less: interest (26) Present value of lease liabilities 341 Less: current portion (144) Lease liabilities, non-current $ 197 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt valuation assumptions | The assumptions used in the Black-Scholes option-pricing model remain unchanged and are determined as follows: March 31, 2020 Volatility 98.01 % Risk-free interest rate 1.58 % Expected life (in years) 7 Dividend yield 0 % The assumptions used in the Black-Scholes option-pricing model are determined as follows: March 31, 2020 December 31, 2019 Volatility 98.04 % 98.04 % Risk-free interest rate 0.55 % 1.81 % Weighted average expected life (in years) 6.1 6.25 Dividend yield — % — % |
Schedule of carrying amounts of debt | The net carrying amounts of the liability components consists of the following (in thousands): March 31, 2020 December 31, 2019 Principal $ 37,955 $ 36,502 Less: debt discount (4,705) (4,905) Net carrying amount $ 33,250 $ 31,597 |
Schedule of interest expense recognized | The following table presents the interest expense recognized related to the 2024 Notes and 2022 Loan (in thousands): Three months ended March 31, 2020 2019 Contractual interest expense $ 1,453 $ 221 Accretion of debt discount 200 100 Total $ 1,653 $ 321 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements by level | The following tables summarize fair value measurements by level as of March 31, 2020 and December 31, 2019, respectively, for assets and liabilities measured at fair value on a recurring basis: Balance as of March 31, 2020 (in thousands) Level I Level II Level III Total Letter of credit (1) $ 408 $ — $ — $ 408 Total assets $ 408 $ — $ — $ 408 Warrant liabilities $ — $ — $ 627 $ 627 Total liabilities $ — $ — $ 627 $ 627 (1) $408,000 is included in restricted cash, long-term on the condensed consolidated balance sheet as of March 31, 2020. Balance as of December 31, 2019 (in thousands) Level I Level II Level III Total Letter of credit (2) $ 408 $ — $ — $ 408 Total assets $ 408 $ — $ — $ 408 Warrant liabilities $ — $ — $ 691 $ 691 Total liabilities $ — $ — $ 691 $ 691 |
Schedule of fair value measurements using significant Level III inputs | The fair value measurements using significant Level III inputs, and changes therein, for the quarter ended March 31, 2020 are as follows: (in thousands) Level III Balance as of December 31, 2019 $ 691 Issuance of new warrant liability — Change in fair value of warrant liability (64) Balance as of March 31, 2020 $ 627 |
Schedule of warranty liability assumptions | The assumptions used in the Black-Scholes option-pricing model remain unchanged and are determined as follows: March 31, 2020 Volatility 98.01 % Risk-free interest rate 1.58 % Expected life (in years) 7 Dividend yield 0 % The assumptions used in the Black-Scholes option-pricing model are determined as follows: March 31, 2020 December 31, 2019 Volatility 98.04 % 98.04 % Risk-free interest rate 0.55 % 1.81 % Weighted average expected life (in years) 6.1 6.25 Dividend yield — % — % |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The Company's condensed consolidated balance sheets include the following assets and liabilities from its VIE's (in thousands): (in thousands) March 31, December 31, Cash and cash equivalents $ 634 $ 379 Accounts receivable 694 564 Unbilled receivables 26 — Prepaid and other current assets 17 26 Total assets $ 1,371 $ 969 Accounts payable $ 21 $ 9 Accrued liabilities 168 100 Deferred revenue 65 73 Intercompany payable 938 685 Total liabilities $ 1,192 $ 867 |
Organization (Details)
Organization (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020USD ($)segmentstate | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of segments | segment | 1 | |||
Cash and restricted cash | $ 12,409 | $ 14,018 | $ 1,704 | $ 3,570 |
Working capital | 4,400 | |||
Monthly cash burn rate | $ 1,500 | |||
Number of states in which entity operates | state | 30 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Receivables [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Accounts Receivable - Concentra
Accounts Receivable - Concentration of Credit Risk (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk | 100.00% | 100.00% | |
Revenue from Contract with Customer Benchmark | Largest customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 48.20% | 26.50% | |
Revenue from Contract with Customer Benchmark | 2nd largest customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.20% | 25.80% | |
Revenue from Contract with Customer Benchmark | 3rd largest customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 14.70% | 16.20% | |
Revenue from Contract with Customer Benchmark | 4th largest customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 10.00% | 11.50% | |
Revenue from Contract with Customer Benchmark | Remaining customers | |||
Concentration Risk [Line Items] | |||
Concentration risk | 8.90% | 20.00% | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk | 100.00% | 100.00% | |
Accounts Receivable | Largest customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 37.60% | 54.30% | |
Accounts Receivable | 2nd largest customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 31.90% | 15.70% | |
Accounts Receivable | 3rd largest customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 22.40% | 15.20% | |
Accounts Receivable | 4th largest customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 4.70% | 3.60% | |
Accounts Receivable | Remaining customers | |||
Concentration Risk [Line Items] | |||
Concentration risk | 3.40% | 11.20% |
Common Stock - Earnings per sha
Common Stock - Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (7,595) | $ (2,921) |
Weighted-average shares of common stock outstanding (in shares) | 16,693 | 16,198 |
Net loss per share - basic and diluted (in dollars per share) | $ (0.45) | $ (0.18) |
Common Stock - Antidilutive sha
Common Stock - Antidilutive shares (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 5,501,416 | 5,966,224 |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,539,926 | 1,625,108 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 3,961,490 | 4,341,116 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 2,300 | $ 1,000 | |
Warrants issued (in shares) | 0 | 40,279 | |
Warrants outstanding (in shares) | 1,539,926 | 1,550,975 | |
Acuitas Group Holdings LLC | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Warrants outstanding (in shares) | 1,249,189 | ||
Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 600 | ||
Common stock issued | 400 | ||
Employees, Directors and Consultants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 19,100 | ||
Unrecognized compensation costs, recognition period | 2 years 8 months 12 days | ||
Stock options issued (in shares) | 638,563 | ||
Weighted average exercise price (in dollars per share) | $ 11.59 | $ 10.92 | |
Consultants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 200 | ||
Unrecognized compensation costs, recognition period | 1 year 10 months 24 days | ||
Consultants | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 30 | $ 10 | |
Stock options issued (in shares) | 50,000 | ||
Weighted average exercise price (in dollars per share) | $ 9.93 | ||
2017 and 2010 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 4,806,513 | ||
Expiration period | 10 years | ||
Vested and unvested stock options outstanding (in shares) | 3,961,490 | ||
Shares reserved for future award (in shares) | 397,098 | ||
2017 and 2010 Stock Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2017 and 2010 Stock Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years |
Stock Based Compensation - Assu
Stock Based Compensation - Assumptions used in the Black-Scholes option-pricing model (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 78.00% |
Risk-free interest rate, minimum | 1.42% |
Risk-free interest rate, maximum | 1.55% |
Dividend yield | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (in years) | 2 years 9 months |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (in years) | 6 years 29 days |
Stock Based Compensation - Empl
Stock Based Compensation - Employee and Director Stock Option Activity (Details) - Employees, Directors and Consultants | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 4,006,351 |
Granted (in shares) | shares | 638,563 |
Exercised (in shares) | shares | (223,643) |
Forfeited (in shares) | shares | (459,781) |
Ending balance (in shares) | shares | 3,961,490 |
Vested (in shares) | shares | 1,022,419 |
Exercisable (in shares) | shares | 1,022,419 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 10.92 |
Granted (in dollars per share) | $ / shares | 14.95 |
Exercised (in dollars per share) | $ / shares | 7.87 |
Forfeited (in dollars per share) | $ / shares | 12.22 |
Ending balance (in dollars per share) | $ / shares | 11.59 |
Vested (in dollars per share) | $ / shares | 11.72 |
Exercisable (in dollars per share) | $ / shares | $ 11.72 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Warrant Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Number of Warrants | ||
Beginning balance (in shares) | 1,550,975 | |
Issued (in shares) | 0 | 40,279 |
Expired (in shares) | 0 | |
Exercised (in shares) | (11,049) | |
Ending balance (in shares) | 1,539,926 | |
Exercisable (in shares) | 1,539,926 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 6.08 | |
Issued (in dollars per share) | 0 | |
Expired (in dollars per share) | 0 | |
Exercised (in dollars per share) | 1.80 | |
Ending balance (in dollars per share) | 6.12 | |
Exercisable (in dollars per share) | $ 6.12 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance-based and Market-based Awards (Details) | 1 Months Ended | ||
Aug. 31, 2018day$ / sharesshares | Apr. 30, 2018state$ / sharesshares | Dec. 31, 2017day$ / sharesshares | |
Market Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, share price (in dollars per share) | $ 15 | $ 15 | |
Threshold trading days | day | 20 | 20 | |
Threshold consecutive trading days | day | 30 | 30 | |
Fully Vest on January 1, 2023 | Market Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 397,693 | 642,307 | |
Stock options granted (in dollars per share) | $ 7.50 | $ 7.50 | |
Vest Annually On December 31 for One Fifth of Each Tranche | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 115,950 | ||
Stock options granted (in dollars per share) | $ 7.50 | ||
Number of tranches | state | 5 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2019USD ($)ft² | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Area of real estate property (in sq. ft) | ft² | 7,869 | ||
Operating lease, term | 60 months | ||
Base annual rent | $ 600 | ||
Operating lease liability | $ 2,123 | ||
Operating lease, right of use asset | 2,300 | ||
Operating lease expense | 166 | $ 74 | |
Computer Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Capital lease, right of use asset | 300 | ||
Lease amortization | $ 40 |
Leases - Operating Lease Cost (
Leases - Operating Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 166 | $ 74 |
Short-term lease rent expense | 27 | 3 |
Total rent expense | $ 193 | $ 77 |
Leases - Operating Lease Inform
Leases - Operating Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for Operating Lease Liabilities | $ 143 | $ 99 |
Weighted-average remaining lease term – operating leases (years) | 4 years 3 months 18 days | 0 years |
Weighted-average discount rate – operating leases | 10.15% | 9.25% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Remaining in 2020 | $ 438 |
2021 | 603 |
2022 | 623 |
2023 | 644 |
2024 | 328 |
Total lease payments | 2,636 |
Less: imputed interest | (513) |
Present value of lease liabilities | 2,123 |
Less: current portion | (389) |
Lease liabilities, non-current | $ 1,734 |
Leases - Finance Lease Liabilit
Leases - Finance Lease Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Total lease payments | $ 367 |
Less: interest | (26) |
Present value of lease liabilities | 341 |
Less: current portion | (144) |
Lease liabilities, non-current | $ 197 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($)trancherequirement$ / sharesshares | Mar. 31, 2020USD ($)$ / shares | Mar. 31, 2019USD ($)trancherequirement$ / shares | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |||||||
Number of billing requirements | requirement | 3 | 3 | |||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 6.12 | $ 6.08 | |||||
2024 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from debt | $ 35,000,000 | $ 1,453,000 | $ 0 | ||||
Interest rate | 15.75% | ||||||
Purchase of additional debt | $ 10,000,000 | ||||||
2022 Loan | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 9.75% | 9.75% | |||||
Principal amount of notes | $ 15,000,000 | $ 15,000,000 | |||||
Receivables financing facility | 2,500,000 | 2,500,000 | $ 2,500,000 | ||||
A/R facility, amount borrowed | $ 1,900,000 | ||||||
A/R facility, amount repaid | $ 1,900,000 | ||||||
Additional loan amount | $ 7,500,000 | $ 7,500,000 | |||||
Number of revolving tranches | tranche | 3 | 3 | |||||
Additional loan, tranche one | $ 2,500,000 | $ 2,500,000 | |||||
Additional loan, tranche two | 2,500,000 | 2,500,000 | |||||
Additional loan, tranche three | 2,500,000 | $ 2,500,000 | |||||
First billings threshold for additional loan | 5,000,000 | ||||||
Second billings threshold for additional loan | 7,000,000 | ||||||
Third billings threshold for additional loan | $ 8,000,000 | ||||||
Warrants issued (in shares) | shares | 40,279 | ||||||
Term of warrants | 7 years | 7 years | |||||
Aggregate amount of debt purchased | $ 600,000 | ||||||
Duration of days preceding grant date | 5 days | ||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 9.93 | $ 9.93 | |||||
Equity financing securities issuance period following agreement date | 18 months | ||||||
Payment to lender | $ 150,000 | ||||||
Percentage of outstanding principal balance | 6.00% | 6.00% | |||||
Early termination costs | $ 1,100,000 | ||||||
2022 Loan | Other income/(expense) | |||||||
Debt Instrument [Line Items] | |||||||
Write off of debt issuance costs | $ 1,500,000 | ||||||
2022 Loan | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount of notes | $ 7,500,000 | $ 7,500,000 | $ 7,500,000 | ||||
2022 Loan | Minimum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% |
Debt - Valuation Assumptions (D
Debt - Valuation Assumptions (Details) | Mar. 31, 2020 |
Volatility | |
Debt Instrument [Line Items] | |
Equity component valuation input | 0.9801 |
Risk-free interest rate | |
Debt Instrument [Line Items] | |
Equity component valuation input | 0.0158 |
Expected life (in years) | |
Debt Instrument [Line Items] | |
Equity component valuation input | 7 |
Dividend yield | |
Debt Instrument [Line Items] | |
Equity component valuation input | 0 |
Debt - Net Carrying Amounts (De
Debt - Net Carrying Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Principal | $ 37,955 | $ 36,502 |
Less: debt discount | (4,705) | (4,905) |
Net carrying amount | $ 33,250 | $ 31,597 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Contractual interest expense | $ 1,453 | $ 221 |
Accretion of debt discount | 200 | 100 |
Total | $ 1,653 | $ 321 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value, Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant liabilities | $ 627 | $ 691 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 408 | 408 |
Warrant liabilities | 627 | 691 |
Total liabilities | 627 | 691 |
Fair Value, Recurring | Restricted cash, long term | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 408 | 408 |
Fair Value, Recurring | Letter of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 408 | 408 |
Level I | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 408 | 408 |
Warrant liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level I | Fair Value, Recurring | Letter of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 408 | 408 |
Level II | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Warrant liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level II | Fair Value, Recurring | Letter of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level III | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Warrant liabilities | 627 | 691 |
Total liabilities | 627 | 691 |
Level III | Fair Value, Recurring | Letter of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Measurements Using Significant Level III Inputs (Details) - Warrants - Level III $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 691 |
Issuance of new warrant liability | 0 |
Change in fair value of warrant liability | (64) |
Ending balance | $ 627 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Assumptions, Warrant Liabilities (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Change in fair value of warrant liability | $ (64) | $ 91 | |
Volatility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability assumptions | 0.9804 | 0.9804 | |
Risk-free interest rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability assumptions | 0.0055 | 0.0181 | |
Expected life (in years) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability assumptions | 6.1 | 6.25 | |
Dividend yield | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability assumptions | 0 | 0 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020 | |
TIH | |
Variable Interest Entity [Line Items] | |
Capitalized cost, amortization period | 5 years |
TIH | Minimum | |
Variable Interest Entity [Line Items] | |
Foregoing costs, percent | 10.00% |
TIH | Maximum | |
Variable Interest Entity [Line Items] | |
Foregoing costs, percent | 15.00% |
CIH | |
Variable Interest Entity [Line Items] | |
Capitalized cost, amortization period | 5 years |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Amounts and Classification of Assets and Liabilities of the VIE in Our Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Unbilled receivables | $ 2,719 | $ 2,093 |
Prepaid expenses and other current assets | 986 | 733 |
Total assets | 22,887 | 23,855 |
Accounts payable | 1,734 | 1,385 |
Deferred revenue | 6,710 | 5,803 |
Total liabilities | 50,340 | 47,764 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 634 | 379 |
Accounts receivable | 694 | 564 |
Unbilled receivables | 26 | 0 |
Prepaid expenses and other current assets | 17 | 26 |
Total assets | 1,371 | 969 |
Accounts payable | 21 | 9 |
Accrued liabilities | 168 | 100 |
Deferred revenue | 65 | 73 |
Intercompany payable | 938 | 685 |
Total liabilities | $ 1,192 | $ 867 |