Spok (SPOK) 10-Q 30 Apr 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 24, 2020
Document Document And Entity Information [Abstract]
Entity Registrant Name	Spok Holdings, Inc
Entity Central Index Key	0001289945
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding (shares)		19,005,209
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Shell Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 42,284,000	$ 47,361,000
Short-term investments	29,906,000	29,899,000
Accounts receivable, net	27,216,000	30,174,000
Prepaid expenses	8,411,000	7,517,000
Other current assets	2,433,000	2,714,000
Total current assets	110,250,000	117,665,000
Non-current assets:
Property and equipment, net	7,655,000	8,000,000
Operating lease right-of-use assets	15,591,000	16,317,000
Capitalized software development	1,705,000	0
Goodwill	124,182,000	124,182,000
Intangible assets, net	2,292,000	2,917,000
Deferred income tax assets	47,486,000	48,983,000
Other non-current assets	1,641,000	1,808,000
Total non-current assets	200,552,000	202,207,000
Total assets	310,802,000	319,872,000
Current liabilities:
Accounts payable	4,003,000	3,615,000
Accrued compensation and benefits	10,403,000	11,680,000
Accrued taxes	1,419,000	1,529,000
Deferred revenue	25,265,000	25,944,000
Operating lease liabilities	5,236,000	5,437,000
Other current liabilities	3,629,000	2,978,000
Total current liabilities	49,955,000	51,183,000
Non-current liabilities:
Asset retirement obligations	6,109,000	6,061,000
Operating lease liabilities	10,972,000	11,575,000
Other non-current liabilities	986,000	959,000
Total non-current liabilities	18,067,000	18,595,000
Total liabilities	68,022,000	69,778,000
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock	0	0
Common stock	2,000	2,000
Additional paid-in capital	87,153,000	86,874,000
Accumulated other comprehensive loss	(1,821,000)	(1,601,000)
Retained earnings	157,446,000	164,819,000
Total stockholders’ equity	242,780,000	250,094,000
Total liabilities and stockholders' equity	$ 310,802,000	$ 319,872,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Total revenue	$ 37,267	$ 41,764
Operating expenses:
Cost of revenue	8,264	7,592
Research and development	5,449	6,167
Technology operations	7,904	7,674
Selling and marketing	6,361	6,110
General and administrative	11,251	10,747
Depreciation, amortization and accretion	2,146	2,359
Total operating expenses	41,375	40,649
Operating (loss) income	(4,108)	1,115
Interest income	363	449
Other expense	(137)	(236)
(Loss) income before income taxes	(3,882)	1,328
Provision for income taxes	(657)	(586)
Net (loss) income	$ (4,539)	$ 742
Basic and diluted net loss per common share (usd per share)	$ (0.24)	$ 0.04
Basic weighted average common shares outstanding (in shares)	18,958,716	19,196,970
Diluted weighted average common shares outstanding (in shares)	18,958,716	19,356,712
Cash dividends declared per common share (usd per share)	$ 0.125	$ 0.125
Wireless
Revenue:
Total revenue	$ 21,386	$ 22,610
Software
Revenue:
Total revenue	$ 15,881	$ 19,154

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (4,539)	$ 742
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(220)	(60)
Other comprehensive loss	(220)	(60)
Comprehensive (loss) income	$ (4,759)	$ 682

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital & Accumulated Other Comprehensive Loss	Retained Earnings
Beginning balance (shares) at Dec. 31, 2018		19,389,066
Beginning balance at Dec. 31, 2018	$ 274,554	$ 2	$ 89,258	$ 185,294
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	742			742
Purchase of common stock for tax withholding (shares)		(67,648)
Purchase of common stock for tax withholding	(1,011)		(1,011)
Amortization of stock-based compensation	528		528
Cash dividends declared	(2,479)			(2,479)
Common stock repurchase program including commissions (shares)		(131,012)
Common stock repurchase program including commissions	(1,810)		(1,810)
Issuance of restricted stock under the Equity Plan and other (shares)		13,650
Issuance of restricted stock under the Equity Plan and other	70			70
Cumulative translation adjustment	(60)		(60)
Ending balance (shares) at Mar. 31, 2019		19,204,056
Ending balance at Mar. 31, 2019	270,534	$ 2	86,905	183,627
Beginning balance (shares) at Dec. 31, 2019		19,071,614
Beginning balance at Dec. 31, 2019	250,094	$ 2	85,273	164,819
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(4,539)			(4,539)
Purchase of common stock for tax withholding (shares)		(79,981)
Purchase of common stock for tax withholding	(903)		(903)
Amortization of stock-based compensation	1,182		1,182
Cash dividends declared	(2,488)			(2,488)
Issuance of restricted stock under the Equity Plan and other (shares)		1,918
Issuance of restricted stock under the Equity Plan and other	19			19
Cumulative translation adjustment	(220)		(220)
Ending balance (shares) at Mar. 31, 2020		18,993,551
Ending balance at Mar. 31, 2020	$ 242,780	$ 2	$ 85,332	$ 157,446

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities:
Net (loss) income	$ (4,539)	$ 742
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization and accretion	2,146	2,359
Deferred income tax expense	790	517
Stock-based compensation	1,182	528
Provision for doubtful accounts, service credits and other	18	374
Changes in assets and liabilities:
Accounts receivable	2,441	(4,791)
Prepaid expenses, inventory, and other assets	964	2,216
Accounts payable, accrued liabilities and other	(1,143)	(2,525)
Deferred revenue	(542)	1,803
Net cash provided by operating activities	1,317	1,223
Investing activities:
Purchase of property and equipment	(1,049)	(1,287)
Capitalized software development	(1,705)	0
Purchase of short-term investments	(14,888)	(14,824)
Maturity of short-term investments	15,000	0
Net cash used in investing activities	(2,642)	(16,111)
Financing activities:
Cash distributions to stockholders	(2,629)	(2,647)
Purchase of common stock (including commissions)	0	(1,810)
Purchase of common stock for tax withholding on vested equity awards	(903)	(1,011)
Net cash used in financing activities	(3,532)	(5,468)
Effect of exchange rate on cash	(220)	(60)
Net decrease in cash and cash equivalents	(5,077)	(20,416)
Cash and cash equivalents, beginning of period	47,361	83,343
Cash and cash equivalents, end of period	42,284	62,927
Supplemental disclosure:
Income taxes paid	$ 0	$ 80

Organization and Significant Ac

Organization and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Organization and Significant Accounting Policies	ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Spok Holdings, Inc. (NASDAQ: SPOK) ("Spok," "we," "our" or the "Company") through its wholly owned subsidiary Spok, Inc., is the global leader in healthcare communications. We deliver clinical information to care teams when and where it matters most to improve patient outcomes. Top hospitals rely on the Spok Care Connect platform to enhance workflows for clinicians, support administrative compliance, and provide a better experience for patients. Our customers send over 100 million messages each month through their Spok solutions. We offer a focused suite of unified clinical communication and collaboration solutions that include call center operations, clinical alerting and notifications, one-way and advanced two-way wireless messaging services, mobile communications and public safety solutions. We provide one-way and advanced two-way wireless messaging services including information services throughout the United States. These services are offered on a local, regional and nationwide basis employing digital networks. One-way messaging consists of numeric and alphanumeric messaging services. Numeric messaging services enable subscribers to receive messages that are composed entirely of numbers, such as a phone number, while alphanumeric messages may include numbers and letters, which enable subscribers to receive text messages. Two-way messaging services enable subscribers to send and receive messages to and from other wireless messaging devices, including pagers, mobile devices and personal computers. We also offer voice mail, personalized greetings, message storage and retrieval, and equipment loss and/or maintenance protection to both one-way and two-way messaging subscribers. These services are commonly referred to as wireless messaging and information services. We also develop, sell and support enterprise-wide systems for hospitals and other organizations needing to automate, centralize and standardize clinical communications and collaboration. These solutions are used for contact centers, clinical alerting and notification, mobile communications and messaging and for public safety notifications. We offer a variety of solutions in both on-premise and Software as a Service ("SaaS") delivery models. The Spok Go platform was made commercially available in early 2020. Spok Go features an integrated cloud-native platform that is built on a foundation of a single, best-in-class architecture with hosting and security handled through our partnership with AMazon Web Services®. These areas of market focus complement the market focus of our wireless services outlined above. These products and services are commonly referred to as software solutions and services. Basis of Presentation The accompanying Condensed Consolidated Financial Statements include our accounts and the accounts of our wholly owned direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Our Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). In management's opinion, the unaudited Condensed Consolidated Financial Statements include all adjustments and accruals that are necessary for the presentation of the results of all interim periods reported herein and all such adjustments are of a normal, recurring nature with the exception of our adoption of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , often referred to as Current Expected Credit Losses ("CECL"). For additional details refer to Note 3, "Significant Accounting Policies Update". Amounts shown on the Condensed Consolidated Statements of Operations within the operating expense categories of Cost of revenue; Research and development; Technology operations; Selling and marketing; and General and administrative are recorded exclusive of depreciation, amortization and accretion. The financial information included herein, other than the Condensed Consolidated Balance Sheet as of December 31, 2019 , is unaudited. The Condensed Consolidated Balance Sheet at December 31, 2019 has been derived from, but does not include all, the disclosures contained in the audited Consolidated Financial Statements as of and for the year ended December 31, 2019 . These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 (the “ 2019 Annual Report”). The Condensed Consolidated Statement of Operations for the interim periods presented are not necessarily indicative of the results that may be expected for a full year. Use of Estimates The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an on-going basis, we evaluate estimates and assumptions, including, but not limited to, those related to the impairment of long-lived assets; intangible assets subject to amortization and goodwill; accounts receivable allowances; revenue recognition; determining standalone selling price ("SSP") of performance obligations; variable consideration; depreciation expense; asset retirement obligations; income taxes; and capitalization of software costs. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Risks and Other Important Facto

Risks and Other Important Factors	3 Months Ended
	Mar. 31, 2020
Risks and Uncertainties [Abstract]
Risks and Other Important Factors	RISKS AND OTHER IMPORTANT FACTORS See “Item 1A. Risk Factors” of Part II of this Quarterly Report on Form 10-Q (“Quarterly Report”) and "Item 1A. Risk Factors" of Part I of the 2019 Annual Report, which describe key risks associated with our operations and industry.

Recent Accounting Standards

Recent Accounting Standards	3 Months Ended
	Mar. 31, 2020
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Standards	RECENT ACCOUNTING STANDARDS Recently Adopted Credit Losses - In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, or CECL. CECL requires early recognition of credit losses on financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This guidance is effective for fiscal years beginning after December 15, 2019. On January 1, 2020 we adopted ASU No. 2016-13 which resulted in an immaterial adjustment to the beginning balance of retained earnings and an increase to allowance for doubtful accounts.

Significant Accounting Policies

Significant Accounting Policies Update	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Significant Accounting Policies Update	SIGNIFICANT ACCOUNTING POLICIES UPDATE Our significant accounting policies are detailed in Note 1, “Organization and Significant Accounting Policies” of the 2019 Annual Report. Significant changes to our accounting policies that occurred during the three months ended March 31, 2020 are discussed below: Research and Development Certain costs related to the development of Spok Go qualified for capitalization beginning in the first quarter of 2020. In accordance with ASC 985-20, Software to be Sold, Leased, or Marketed , certain software development costs are charged to operations and expensed as incurred until technological feasibility has been established. Material costs incurred after technological feasibility is established and before the product is ready for general release are capitalized and amortized on a straight-line basis over the estimated remaining economic life of the product or the ratio of current revenues to total projected product revenues, whichever is greater. To date, the time between technological feasibility and general release to the public has been extremely short and consequently expenses available for capitalization have been immaterial. Accordingly, all research and developments costs incurred to date, accounted for in accordance with ASC 985-20, have been expensed as incurred. In accordance with ASC 350-40, Internal-use Software , certain software development costs are capitalized while in the application development stage related to software developed for internal use or software sold in a SaaS arrangement. This includes certain development costs for Spok Go. All other costs incurred during the preliminary project stage or the post implementation stage, are expensed as incurred. Capitalized software development is amortized on a straight-line basis over the estimated useful life of the asset, typically three years , beginning when those development efforts have been placed into service (e.g. generally once made commercially available). Determining the estimated useful life requires significant judgment as we consider factors such as the rapid and continuous developments in software technology, obsolescence and anticipated life of the service offering before enhancements are necessary. In a SaaS environment, customer needs are rapidly evolving and a shorter useful life is generally expected.

Revenue, Deferred Revenue And P

Revenue, Deferred Revenue And Prepaid Commissions	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue, Deferred Revenue and Prepaid Commissions	REVENUE, DEFERRED REVENUE AND PREPAID COMMISSIONS Wireless Revenue Wireless revenue consists of two primary components: Paging revenue and product and other revenue. Paging revenue consists primarily of recurring fees associated with the provision of messaging services and fees for paging devices and is net of a provision for service credits. Product and other revenue reflects system sales, the sale of devices and charges for paging devices that are not returned and are net of anticipated credits. Our core offering includes subscriptions to one-way or two-way messaging services for a periodic (monthly, quarterly, semiannual, or annual) service fee. This is generally based upon the type of service provided, the geographic area covered, the number of devices provided to the customer and the period of commitment. A subscriber to one-way messaging services may select coverage on a local, regional or nationwide basis to best meet their messaging needs. Two-way messaging is generally offered on a nationwide basis. In addition, subscribers either contract for a messaging device from us for an additional fixed monthly fee or they own a device, having purchased it either from us or from another vendor. We also sell devices to resellers who lease or resell devices to their subscribers and then sell messaging services utilizing our networks. We offer ancillary services, such as voicemail and equipment loss or maintenance protection, which increase the monthly recurring revenue we receive along with these traditional messaging services. We offer exclusive one-way (T5) and two-way (T52) alphanumeric pagers, which are configurable to support un-encrypted or encrypted operation. When configured for encryption, they utilize AES-128 bit encryption, screen locking and remote wipe capabilities. With encryption enabled these secure paging devices enhance our service offerings to the healthcare community by adding Health Insurance Portability and Accountability Act ("HIPAA") security capabilities to the low cost, highly reliable and availability benefits of paging. (See Item 1. “Business,” in the 2019 Annual Report for more details.) Software Revenue Software revenue consists of two primary components: operations revenue and maintenance revenue. Operations revenue consists primarily of license revenues for our healthcare communications solutions, equipment revenues that facilitate the use of our software solutions, and professional services revenue related to the implementation of our solutions. Maintenance revenue is for ongoing support of our software solutions or related equipment and access to when-and-if available software updates. Maintenance is generally purchased and renewed on an annual basis. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Our software licenses and hardware are generally recognized at a point in time when we have transferred control to the customer. For software licenses, revenue is not recognized until the related license(s) has been made available to the customer and the customer can begin to benefit from its right to use the license(s). Our software licenses represent a right to use Spok’s Intellectual Property ("IP") as it exists at a point in time at which the license is granted. Many of our software licenses have significant standalone functionality due to their ability to process a transaction or perform a function or task, and we do not need to maintain those products, once provided to the customer, for value to exist. While the functionality of the IP that we license may substantively change during the license period, customers are not contractually or practically required to update their license as a result of those changes. Our wireless, professional and maintenance services are generally recognized over time due to a customer's simultaneous receipt and consumption of the benefit as we perform the work. As we transfer control over time, we recognize revenue based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires significant judgment and is based on the nature of the products or services to be provided. Generally, we use the time-elapsed measure of progress for performance obligations which include wireless or maintenance services. We believe this method best depicts the simultaneous transfer and consumption of the benefit based on our performance as these services are generally considered standby services. For professional services, we leverage an input methodology based on the number of hours worked on a project versus the total expected hours necessary to complete the project. Revenues are recognized proportionally as hours are incurred. The following table presents our revenues disaggregated by revenue type: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Wireless products and services $ 21,386 $ 22,610 License 955 2,840 Services 4,549 5,206 Hardware 725 963 Maintenance 9,652 10,145 Total revenue $ 37,267 $ 41,764 The U.S. was the only country that accounted for more than 10% of the Company’s total revenue for the three months ended March 31, 2020 and 2019 . Revenue generated in the U.S. and internationally consisted of the following for the periods stated: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Revenue United States $ 36,503 $ 39,766 International 764 1,998 Total revenue $ 37,267 $ 41,764 Deferred Revenues Our deferred revenues represent payments made or due from, customers in advance of our performance. Changes in the balance of total deferred revenue during the three months ended March 31, 2020 are as follows: (Dollars in thousands) December 31, 2019 Additions Revenue Recognized March 31, 2020 Deferred Revenue $ 26,621 $ 15,100 $ (15,642 ) $ 26,079 During the three months ended March 31, 2020 , the Company recognized $11.8 million related to amounts deferred as of December 31, 2019 . Prepaid Commissions Our prepaid commissions represent payments made to employees in advance of our performance on the related underlying contracts. These costs have been incurred directly in relation to obtaining a contract. As such, these costs are amortized over the estimated period of benefit. Changes in the balance of total prepaid commissions during the three months ended March 31, 2020 are as follows: (Dollars in thousands) December 31, 2019 Additions Commissions Recognized March 31, 2020 Prepaid Commissions $ 2,431 $ 1,110 $ (1,212 ) $ 2,329 Prepaid commissions are included within prepaid expenses and other on the Condensed Consolidated Balance Sheets and commissions expense is included within Selling and marketing on the Condensed Consolidated Statements of Operations. Remaining Performance Obligations The balance of remaining performance obligations at March 31, 2020 was $49.0 million . We expect to recognize approximately $37.7 million of our remaining performance obligations over the next 12 months , with the remaining balance recognized thereafter.

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Leases We have operating lease arrangements for corporate offices, cellular towers, storage units and small building space. The building space is used to house infrastructure, such as transmitters, antennae and other various equipment for the Company’s wireless paging services. For leases with a term of 12 months or less, renewal terms are generally of an evergreen nature (either month-to-month or year-to-year). For leases with a term greater than 12 months, renewal terms are generally explicit and provide for one to five optional renewals consistent with the initial term. Many of our leases, with the exception of those for our corporate offices, include options to terminate the lease within one year . Variable lease payments, residual value guarantees or purchase options are not generally present in these leases. Lease costs are included in technology operations and general and administrative expenses on the Condensed Consolidated Statements of Operations. The following table presents lease costs disaggregated by type: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Operating lease cost $ 1,382 $ 1,381 Short-term lease cost 1,977 1,935 Short-term lease cost - related party (1) 890 902 Total lease cost $ 4,249 $ 4,218 Supplemental Disclosure: Cash paid for amounts included in the measurement of lease liabilities - operating leases $ 1,349 Weighted-average remaining lease term - operating leases 5.55 years Weighted-average discount rate - operating leases 5.39 % (1) A member of our Board of Directors also serves as a director for an entity that leases transmission tower sites to the Company. Refer to Note 13 , "Related Parties" for additional details. Maturities of lease liabilities as of March 31, 2020 were as follows: For the Year Ended December 31, (Dollars in thousands) For the remaining nine months ending December 31, 2020 $ 4,425 2021 4,404 2022 2,829 2023 1,883 2024 1,416 Thereafter 3,763 Total future lease payments 18,720 Imputed interest (2,512 ) Total $ 16,208

Consolidated Financial Statemen

Consolidated Financial Statement Components	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidated Financial Statement Components	CONSOLIDATED FINANCIAL STATEMENT COMPONENTS Depreciation, Amortization and Accretion Depreciation, amortization and accretion expenses consisted of the following for the periods stated: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Depreciation Leasehold improvements $ 16 $ 24 Asset retirement costs (161 ) (192 ) Paging and computer equipment 1,478 1,666 Furniture, fixtures and vehicles 70 98 Total depreciation 1,403 1,596 Amortization 625 625 Accretion 118 138 Total depreciation, amortization and accretion expense $ 2,146 $ 2,359 Accounts Receivable, Net Accounts receivable was recorded net of an allowance of $ 1.6 million and $1.3 million at March 31, 2020 and December 31, 2019 , respectively. Accounts receivable, net includes $6.5 million and $6.4 million of unbilled receivables at March 31, 2020 and December 31, 2019 , respectively. Unbilled receivables are defined as the Company's right to consideration in exchange for goods or services that we have transferred to the customer but have not yet billed for, generally as a result of contractual billing terms. Property and Equipment, Net Property and equipment, net consisted of the following as of the dates stated: (Dollars in thousands) Useful Life March 31, 2020 December 31, 2019 Leasehold improvements shorter of useful life or lease term $ 3,620 $ 3,620 Asset retirement costs 1-5 1,922 1,922 Paging and computer equipment 1-5 95,542 96,562 Furniture, fixtures and vehicles 3-5 3,585 3,716 Total property and equipment 104,669 105,820 Accumulated depreciation (97,014 ) (97,820 ) Total property and equipment, net $ 7,655 $ 8,000 Capitalized Software Development Capitalized software development is amortized on a straight-line basis over the estimated useful life of the asset, typically three years . Capitalized software development costs were $1.7 million for the three months ended March 31, 2020 and no capitalized costs were recorded for the three months ended March 31, 2019. There was no amortization expense with respect to software development costs for the three months ended March 31, 2020 and 2019.

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	GOODWILL AND INTANGIBLE ASSETS, NET Goodwill During the quarter ended March 31, 2020, we determined, based on qualitative assessment, that the Coronavirus Disease 2019 ("COVID-19") pandemic created a triggering event that required further assessment. As such, we performed a quantitative assessment, using data as of March 31, 2020. Based on this assessment, the estimated fair value of the reporting unit exceeded the carrying value of the Company, which indicated an impairment did not exist as of the interim balance sheet date. For purposes of the goodwill impairment assessment, the Company as a whole is considered to be the reporting unit. The fair value of the reporting unit is estimated under a market based approach using the fair value of the Company's common stock. The estimated fair value requires significant judgments, including timing and appropriateness of the price of common stock used (e.g., point-in-time application, simple moving average, exponential moving average, etc.), as well as application of an estimated control premium. The estimated control premium is based on a number of factors including current and past market information published by third-party resources and detailed analysis that considers appropriate industry, market and other pertinent factors. While a formal impairment assessment is performed annually, the Company monitors its business environment for potential triggering events on a quarterly basis. There is potential for further impairment charges being recognized in future periods based on these ongoing assessments. Intangible Assets Amortizable intangible assets at March 31, 2020 related primarily to customer relationships that resulted from our acquisition of Amcom Software, Inc. in 2011. Such intangibles are being amortized over a period of ten years . For the years ending December 31, 2020 and 2021 there is an estimated remaining amortization of $1.9 million and $0.4 million , respectively. The net consolidated balance of intangible assets consisted of the following at March 31, 2020 : (Dollars in thousands) Useful Life Gross Carrying Accumulated Net Balance Customer relationships 10 $ 25,002 $ (22,710 ) $ 2,292

Asset Retirement Obligations

Asset Retirement Obligations	3 Months Ended
	Mar. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	ASSET RETIREMENT OBLIGATIONS The components of the changes in the asset retirement obligation liabilities were: (Dollars in thousands) Short-Term Long-Term Total Balance at January 1, 2020 $ 90 $ 6,061 $ 6,151 Accretion (9 ) 127 118 Amounts paid (27 ) — (27 ) Increases — — — Reclassifications 79 (79 ) — Balance at March 31, 2020 $ 133 $ 6,109 $ 6,242 The short-term portion balance above is included within other current liabilities on the Condensed Consolidated Balance Sheet at March 31, 2020 and December 31, 2019. Increases other than accretion, reclassification and amounts paid primarily relate to changes in estimate of the underlying liability, specifically as it relates to updates in estimated costs to remove a transmitter and the estimated timing of removal. The cost associated with the estimated removal costs and timing refinements due to ongoing network rationalization activities is expected to accrete to a total liability of $7.6 million . The total estimated liability is based on the transmitter locations remaining after we have consolidated the number of networks we operate and assume the underlying leases continue to be renewed to that future date. Accretion expense was $0.1 million for the three months ended March 31, 2020 and 2019 . Accretion expense related solely to asset retirement obligations and was recorded based on the interest method.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Stockholders' Equity	STOCKHOLDERS' EQUITY General Our authorized capital stock consists of 75 million shares of common stock, par value $0.0001 per share, and 25 million shares of preferred stock, par value $0.0001 per share. At March 31, 2020 and December 31, 2019 , we had no stock options outstanding. At March 31, 2020 and December 31, 2019 , there were 18,993,551 and 19,071,614 shares of common stock outstanding, respectively, and no shares of preferred stock outstanding. Dividends The following table details our cash dividends declared in 2020 . Cash dividends paid as disclosed in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 include previously declared cash dividends on shares of vested restricted common stock ("restricted stock") issued to our non-executive directors and dividends related to vested restricted stock units ("RSUs") issued to eligible employees. Cash dividends on RSUs and restricted stock have been accrued and are paid when the applicable vesting conditions are met. Accrued cash dividends on forfeited restricted stock and RSUs are also forfeited. Declaration Date Record Date Payment Date Per Share Amount Total Declared (1) (Dollars in thousands) February 26, 2020 March 16, 2020 March 30, 2020 $ 0.125 $ 2,488 Total $ 0.125 $ 2,488 (1) The total declared reflects the cash dividends declared in relation to common stock and unvested RSUs. On April 29, 2020, our Board of Directors declared a regular quarterly cash dividend of $0.125 per share of common stock with a record date of May 25, 2020, and a payment date of June 24, 2020. This cash dividend of approximately $2.4 million will be paid from available cash on hand. Net (Loss) Income per Common Share Basic net (loss) income per common share is computed on the basis of the weighted average common shares outstanding. Diluted net loss per common share is computed on the basis of the weighted average common shares outstanding plus the effect of all potentially dilutive common shares including outstanding restricted stock and RSUs, which are treated as contingently issuable shares, using the “treasury stock” method. The components of basic and diluted net loss per common share were as follows for the periods stated: For the Three Months Ended March 31, (in thousands, except for share and per share amounts) 2020 2019 Numerator: Net (loss) income $ (4,539 ) $ 742 Denominator: Basic and diluted weighted average outstanding shares of common stock 18,958,716 19,196,970 Diluted weighted average outstanding shares of common stock 18,958,716 19,356,712 Basic and diluted net (loss) income per common share $ (0.24 ) $ 0.04 For the three months ended March 31, 2020 and 2019 the following securities were excluded from the calculation of diluted shares outstanding as the effect would have been anti-dilutive: For the Three Months Ended March 31, 2020 2019 Restricted stock units 203,188 $ — Share-Based Compensation Plans On March 23, 2012, our Board of Directors adopted the Spok Holdings, Inc. 2012 Equity Incentive Award Plan (the “Equity Plan”) that was subsequently approved by our stockholders on May 16, 2012. A total of 2,194,986 shares of common stock have been reserved for issuance under this plan. Awards under the Equity Plan may be in the form of stock options, common stock, restricted stock, RSUs, performance awards, dividend equivalents, deferred stock, deferred stock units, or stock appreciation rights. Restricted stock awards generally vest one year from the date of grant. Related dividends accumulate during the vesting period and are paid at the time of vesting. Contingent RSUs generally vest over a three -year performance period upon successful completion of the performance objectives. Non-contingent RSUs generally vest in thirds, annually, over a three -year period. Dividend equivalents rights generally accompany each RSU award and those rights accumulate and vest along with the underlying RSU. The following table summarizes the activities under the Equity Plan from January 1, 2020 through March 31, 2020 : Activity Total equity securities available at January 1, 2020 646,480 RSU and restricted stock awarded to eligible employees, net of forfeitures (497,082 ) Total equity securities available at March 31, 2020 149,398 The following table details activities with respect to outstanding RSUs and restricted stock for the three months ended March 31, 2020 : Shares Weighted- Unvested at January 1, 2020 419,426 $ 14.00 Granted 531,170 12.20 Vested (8,106 ) 13.26 Forfeited (34,088 ) 11.97 Unvested at March 31, 2020 908,402 $ 13.03 Of the 908,402 unvested RSUs and restricted stock outstanding at March 31, 2020 , 471,002 RSUs include contingent performance requirements for vesting purposes. At March 31, 2020 , there was $7.9 million of unrecognized net compensation cost related to RSUs and restricted stock, which is expected to be recognized over a weighted average period of 2.1 years. Employee Stock Purchase Plan. In 2016, our Board of Directors adopted the Spok Holdings, Inc. Employee Stock Purchase Plan ("ESPP") that was subsequently approved by our stockholders on July 25, 2016. A total of 250,000 shares of common stock have been reserved for issuance under this plan. The Company's ESPP allows employees to purchase shares of common stock at a discounted rate, subject to plan limitations. Under the ESPP, eligible participants can voluntarily elect to have contributions withheld from their pay for the duration of an offering period, subject to the ESPP limits. At the end of an offering period, contributions will be used to purchase the Company's common stock at a discount to the market price based on the first or last day of the offering period, whichever is lower. Participants are required to hold common stock for a minimum period of two years from the grant date. Participants will begin earning dividends on shares after the purchase date. Each offering period will generally last for no longer than six months. Once an offering period begins, participants cannot adjust their withholding amount. If a participant chooses to withdraw, any previously withheld funds will be returned to the participant, with no stock purchased, and that participant will be eligible to participate in the ESPP at the next offering period. If the participant terminates employment with the Company during the offering period, all contributions will be returned to the employee and no stock will be purchased at a discounted rate. The Company uses the Black-Scholes model to calculate the fair value of the common stock to be purchased each offering period on their offer date. The Black-Scholes model requires the use of estimates for the expected term, the expected volatility of the underlying common stock over the expected term, the risk-free interest rate and the expected dividend payment. For the three months ended March 31, 2020 and 2019 , no shares of the Company's common stock were purchased. The following table summarizes the activities under the ESPP from January 1, 2020 through March 31, 2020 : Activity Total ESPP equity securities available at January 1, 2020 184,860 ESPP common stock purchased by eligible employees — Total ESPP securities available at March 31, 2020 184,860 Amounts withheld from participants will be classified an accrued compensation and benefit on the Condensed Consolidated Balance Sheets until funds are used to purchase shares. This liability amount is immaterial to the Condensed Consolidated Financial Statements. Stock-Based Compensation Expense We record all stock-based awards, which consist of RSUs, restricted stock and the option to purchase common stock under the ESPP, at fair value as of the grant date. Stock-based compensation expense is recognized based on a straight-line amortization basis over the respective service period. Forfeitures and withdrawals are accounted for as incurred. The following table reflects the items for stock-based compensation expense on the Condensed Consolidated Statements of Operations for the periods stated: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Performance-based RSUs $ 346 $ 107 Time-based RSUs and restricted stock 812 404 ESPP 24 17 Total stock-based compensation $ 1,182 $ 528

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was signed into law on March 27, 2020. The CARES Act was initiated to provide stimulus and relief in response to the COVID-19 pandemic and resulting economic collapse. While the CARES Act provides a number of potential benefits to companies, we believe the following items may provide certain relief for our Company: • Payroll Tax Deferral - Allows for the deferral of payment on the Company's share of the 6.2% Social Security tax on wages paid beginning on March 27, 2020 and ending on December 31, 2020. Deferred amounts are payable in two installments, with 50% of such taxes being due on December 31, 2021, and the remainder due on December 31, 2022. While we continue to assess the impact of the CARES Act, we believe this is likely to result in a deferral of between $1.5 million and $3.0 million in payroll taxes. • Employee Retention Credits - Allows for a refundable tax credit for the Company's share of the 6.2% Social Security tax on wages. This tax credit is for the first $10,000 in qualified wages paid to each employee commencing on March 13, 2020. To be eligible, our Company must (i) have had operations fully or partially suspended because of a shut-down order from a governmental authority related to COVID-19, or (ii) have had gross receipts decline by more than 50% in a calendar quarter when compared to the same quarter in 2019. Qualified wages are limited to wages paid to employees who were not providing services due to the COVID-19 crisis. While we continue to assess the impact of the CARES Act, we believe this is likely to result in a tax credit of between $0.5 million and $1.5 million . • Alternative Minimum Tax ("AMT") Credit - Allows for an immediate refund of all refundable AMT credits resulting from passage of the Tax Cuts and Jobs Act of 2017. This will result in accelerated collection of approximately $1.3 million of other current assets. Spok files a consolidated U.S. Federal income tax return and income tax returns in various state, local and foreign jurisdictions as required. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, changes in how we do business, changes in our stock price, foreign currency gains (losses), tax law developments (including changes in statutes, regulations, case law, and administrative practices), and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. For 2020, the anticipated effective income tax rate is expected to continue to differ from the Federal statutory rate of 21% primarily due to the effect of state income taxes, research and development credits, permanent differences between book and taxable income and certain discrete items. At March 31, 2020 , we had total deferred income tax assets ("DTAs") of $47.5 million and no valuation allowance. This reflects a decrease of $1.5 million from the December 31, 2019 DTAs of $49.0 million and no valuation allowance. We consider both positive and negative evidence when evaluating the recoverability of our DTAs. The assessment is required to determine whether, based on all available evidence, it is more likely than not (i.e., greater than a 50% probability) that all or some portion of the DTAs will be realized in the future. During the fourth quarter of each year, we update our multi-year forecast of taxable income for our operations, which assists in analyzing the recoverability of our DTAs.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES There have been no material changes during the three months ended March 31, 2020 to the commitments and contingencies previously reported in the 2019 Annual Report.

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Parties	RELATED PARTIES A member of our Board of Directors also serves as a director for an entity that leases transmission tower sites to the Company. For both the three months ended March 31, 2020 and 2019 , we incurred site rent expenses of $0.9 million from the entity on which the individual serves as a director. Site rent expenses are included in Technology operations expenses on the Condensed Consolidated Statements of Operations. A member of our Board of Directors, who was appointed at the beginning 2020, also serves as Chief Information Officer for an entity that is also a customer of the Company. For both the three months ended March 31, 2020 and 2019, we recognized revenues of $0.2 million related to contracts from the entity at which the individual is employed.

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying Condensed Consolidated Financial Statements include our accounts and the accounts of our wholly owned direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Our Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). In management's opinion, the unaudited Condensed Consolidated Financial Statements include all adjustments and accruals that are necessary for the presentation of the results of all interim periods reported herein and all such adjustments are of a normal, recurring nature with the exception of our adoption of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , often referred to as Current Expected Credit Losses ("CECL"). For additional details refer to Note 3, "Significant Accounting Policies Update". Amounts shown on the Condensed Consolidated Statements of Operations within the operating expense categories of Cost of revenue; Research and development; Technology operations; Selling and marketing; and General and administrative are recorded exclusive of depreciation, amortization and accretion. The financial information included herein, other than the Condensed Consolidated Balance Sheet as of December 31, 2019 , is unaudited. The Condensed Consolidated Balance Sheet at December 31, 2019 has been derived from, but does not include all, the disclosures contained in the audited Consolidated Financial Statements as of and for the year ended December 31, 2019 . These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 (the “ 2019 Annual Report”). The Condensed Consolidated Statement of Operations for the interim periods presented are not necessarily indicative of the results that may be expected for a full year.
Use of Estimates	Use of Estimates The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. On an on-going basis, we evaluate estimates and assumptions, including, but not limited to, those related to the impairment of long-lived assets; intangible assets subject to amortization and goodwill; accounts receivable allowances; revenue recognition; determining standalone selling price ("SSP") of performance obligations; variable consideration; depreciation expense; asset retirement obligations; income taxes; and capitalization of software costs. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Recent Accounting Standards	RECENT ACCOUNTING STANDARDS Recently Adopted Credit Losses - In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, or CECL. CECL requires early recognition of credit losses on financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This guidance is effective for fiscal years beginning after December 15, 2019. On January 1, 2020 we adopted ASU No. 2016-13 which resulted in an immaterial adjustment to the beginning balance of retained earnings and an increase to allowance for doubtful accounts.
Research and Development	Research and Development Certain costs related to the development of Spok Go qualified for capitalization beginning in the first quarter of 2020. In accordance with ASC 985-20, Software to be Sold, Leased, or Marketed , certain software development costs are charged to operations and expensed as incurred until technological feasibility has been established. Material costs incurred after technological feasibility is established and before the product is ready for general release are capitalized and amortized on a straight-line basis over the estimated remaining economic life of the product or the ratio of current revenues to total projected product revenues, whichever is greater. To date, the time between technological feasibility and general release to the public has been extremely short and consequently expenses available for capitalization have been immaterial. Accordingly, all research and developments costs incurred to date, accounted for in accordance with ASC 985-20, have been expensed as incurred. In accordance with ASC 350-40, Internal-use Software , certain software development costs are capitalized while in the application development stage related to software developed for internal use or software sold in a SaaS arrangement. This includes certain development costs for Spok Go. All other costs incurred during the preliminary project stage or the post implementation stage, are expensed as incurred. Capitalized software development is amortized on a straight-line basis over the estimated useful life of the asset, typically three years , beginning when those development efforts have been placed into service (e.g. generally once made commercially available). Determining the estimated useful life requires significant judgment as we consider factors such as the rapid and continuous developments in software technology, obsolescence and anticipated life of the service offering before enhancements are necessary. In a SaaS environment, customer needs are rapidly evolving and a shorter useful life is generally expected.

Revenue, Deferred Revenue And_2

Revenue, Deferred Revenue And Prepaid Commissions (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Schedule of Revenue	Revenue generated in the U.S. and internationally consisted of the following for the periods stated: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Revenue United States $ 36,503 $ 39,766 International 764 1,998 Total revenue $ 37,267 $ 41,764 The following table presents our revenues disaggregated by revenue type: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Wireless products and services $ 21,386 $ 22,610 License 955 2,840 Services 4,549 5,206 Hardware 725 963 Maintenance 9,652 10,145 Total revenue $ 37,267 $ 41,764
Schedule of Deferred Revenue	Changes in the balance of total deferred revenue during the three months ended March 31, 2020 are as follows: (Dollars in thousands) December 31, 2019 Additions Revenue Recognized March 31, 2020 Deferred Revenue $ 26,621 $ 15,100 $ (15,642 ) $ 26,079
Schedule of Deferred Commissions	Changes in the balance of total prepaid commissions during the three months ended March 31, 2020 are as follows: (Dollars in thousands) December 31, 2019 Additions Commissions Recognized March 31, 2020 Prepaid Commissions $ 2,431 $ 1,110 $ (1,212 ) $ 2,329

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of Lease Costs	The following table presents lease costs disaggregated by type: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Operating lease cost $ 1,382 $ 1,381 Short-term lease cost 1,977 1,935 Short-term lease cost - related party (1) 890 902 Total lease cost $ 4,249 $ 4,218 Supplemental Disclosure: Cash paid for amounts included in the measurement of lease liabilities - operating leases $ 1,349 Weighted-average remaining lease term - operating leases 5.55 years Weighted-average discount rate - operating leases 5.39 % (1) A member of our Board of Directors also serves as a director for an entity that leases transmission tower sites to the Company. Refer to Note 13 , "Related Parties" for additional details.
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities as of March 31, 2020 were as follows: For the Year Ended December 31, (Dollars in thousands) For the remaining nine months ending December 31, 2020 $ 4,425 2021 4,404 2022 2,829 2023 1,883 2024 1,416 Thereafter 3,763 Total future lease payments 18,720 Imputed interest (2,512 ) Total $ 16,208

Consolidated Financial Statem_2

Consolidated Financial Statement Components (Tables)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Depreciation, Amortization and Accretion	Depreciation, amortization and accretion expenses consisted of the following for the periods stated: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Depreciation Leasehold improvements $ 16 $ 24 Asset retirement costs (161 ) (192 ) Paging and computer equipment 1,478 1,666 Furniture, fixtures and vehicles 70 98 Total depreciation 1,403 1,596 Amortization 625 625 Accretion 118 138 Total depreciation, amortization and accretion expense $ 2,146 $ 2,359
Property, Plant and Equipment	Property and equipment, net consisted of the following as of the dates stated: (Dollars in thousands) Useful Life March 31, 2020 December 31, 2019 Leasehold improvements shorter of useful life or lease term $ 3,620 $ 3,620 Asset retirement costs 1-5 1,922 1,922 Paging and computer equipment 1-5 95,542 96,562 Furniture, fixtures and vehicles 3-5 3,585 3,716 Total property and equipment 104,669 105,820 Accumulated depreciation (97,014 ) (97,820 ) Total property and equipment, net $ 7,655 $ 8,000

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Net Consolidated Balance of Amortizable Intangible Assets	The net consolidated balance of intangible assets consisted of the following at March 31, 2020 : (Dollars in thousands) Useful Life Gross Carrying Accumulated Net Balance Customer relationships 10 $ 25,002 $ (22,710 ) $ 2,292

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	3 Months Ended
	Mar. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]
Changes in Asset Retirement Obligation Liabilities	The components of the changes in the asset retirement obligation liabilities were: (Dollars in thousands) Short-Term Long-Term Total Balance at January 1, 2020 $ 90 $ 6,061 $ 6,151 Accretion (9 ) 127 118 Amounts paid (27 ) — (27 ) Increases — — — Reclassifications 79 (79 ) — Balance at March 31, 2020 $ 133 $ 6,109 $ 6,242

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Cash Dividends Declared	The following table details our cash dividends declared in 2020 . Cash dividends paid as disclosed in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 include previously declared cash dividends on shares of vested restricted common stock ("restricted stock") issued to our non-executive directors and dividends related to vested restricted stock units ("RSUs") issued to eligible employees. Cash dividends on RSUs and restricted stock have been accrued and are paid when the applicable vesting conditions are met. Accrued cash dividends on forfeited restricted stock and RSUs are also forfeited. Declaration Date Record Date Payment Date Per Share Amount Total Declared (1) (Dollars in thousands) February 26, 2020 March 16, 2020 March 30, 2020 $ 0.125 $ 2,488 Total $ 0.125 $ 2,488 (1) The total declared reflects the cash dividends declared in relation to common stock and unvested RSUs.
Basic and Diluted Net (Loss) Income Per Common Shares	The components of basic and diluted net loss per common share were as follows for the periods stated: For the Three Months Ended March 31, (in thousands, except for share and per share amounts) 2020 2019 Numerator: Net (loss) income $ (4,539 ) $ 742 Denominator: Basic and diluted weighted average outstanding shares of common stock 18,958,716 19,196,970 Diluted weighted average outstanding shares of common stock 18,958,716 19,356,712 Basic and diluted net (loss) income per common share $ (0.24 ) $ 0.04
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	For the three months ended March 31, 2020 and 2019 the following securities were excluded from the calculation of diluted shares outstanding as the effect would have been anti-dilutive: For the Three Months Ended March 31, 2020 2019 Restricted stock units 203,188 $ —
Activities Under Equity Plan	The following table summarizes the activities under the Equity Plan from January 1, 2020 through March 31, 2020 : Activity Total equity securities available at January 1, 2020 646,480 RSU and restricted stock awarded to eligible employees, net of forfeitures (497,082 ) Total equity securities available at March 31, 2020 149,398 The following table summarizes the activities under the ESPP from January 1, 2020 through March 31, 2020 : Activity Total ESPP equity securities available at January 1, 2020 184,860 ESPP common stock purchased by eligible employees — Total ESPP securities available at March 31, 2020 184,860
Summary of Outstanding RSUs	The following table details activities with respect to outstanding RSUs and restricted stock for the three months ended March 31, 2020 : Shares Weighted- Unvested at January 1, 2020 419,426 $ 14.00 Granted 531,170 12.20 Vested (8,106 ) 13.26 Forfeited (34,088 ) 11.97 Unvested at March 31, 2020 908,402 $ 13.03
Stock Based Compensation Expense	The following table reflects the items for stock-based compensation expense on the Condensed Consolidated Statements of Operations for the periods stated: For the Three Months Ended March 31, (Dollars in thousands) 2020 2019 Performance-based RSUs $ 346 $ 107 Time-based RSUs and restricted stock 812 404 ESPP 24 17 Total stock-based compensation $ 1,182 $ 528

Organization and Significant _3

Organization and Significant Accounting Policies (Details) message in Millions	3 Months Ended
	Mar. 31, 2020message
Accounting Policies [Abstract]
Monthly messages sent through company solutions (more than)	100

Significant Accounting Polici_2

Significant Accounting Policies Update (Details)	3 Months Ended
	Mar. 31, 2020
Capitalized software
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life	3 years

Revenue, Deferred Revenue And_3

Revenue, Deferred Revenue And Prepaid Commissions - Additional Information and Disaggregation of Revenue (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)revenue_component	Mar. 31, 2019USD ($)
Revenues from External Customers and Long-Lived Assets
Total revenue	$ 37,267	$ 41,764
Deferred revenue recognized from previous period	11,800
Remaining performance obligation	49,000
United States
Revenues from External Customers and Long-Lived Assets
Total revenue	36,503	39,766
International
Revenues from External Customers and Long-Lived Assets
Total revenue	764	1,998
Wireless products and services
Revenues from External Customers and Long-Lived Assets
Total revenue	21,386	22,610
License
Revenues from External Customers and Long-Lived Assets
Total revenue	955	2,840
Services
Revenues from External Customers and Long-Lived Assets
Total revenue	4,549	5,206
Hardware
Revenues from External Customers and Long-Lived Assets
Total revenue	$ 725	963
Maintenance
Revenues from External Customers and Long-Lived Assets
Typical duration of revenue recognition	Maintenance revenue is for ongoing support of our software solutions or related equipment and access to when-and-if available software updates.
Total revenue	$ 9,652	$ 10,145
Wireless
Revenues from External Customers and Long-Lived Assets
Revenue primary component | revenue_component	2
Software
Revenues from External Customers and Long-Lived Assets
Revenue primary component | revenue_component	2

Revenue, Deferred Revenue And_4

Revenue, Deferred Revenue And Prepaid Commissions - Deferred Revenues (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Contract With Customer, Asset And Liability [Roll Forward]
December 31, 2019	$ 26,621
Additions	15,100
Revenue Recognized	(15,642)
March 31, 2020	$ 26,079

Revenue, Deferred Revenue And_5

Revenue, Deferred Revenue And Prepaid Commissions - Prepaid Commissions (Details) - Prepaid Commissions $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Capitalized Contract Cost
December 31, 2019	$ 2,431
Additions	1,110
Commissions Recognized	(1,212)
March 31, 2020	$ 2,329

Revenue, Deferred Revenue And_6

Revenue, Deferred Revenue And Prepaid Commissions - Remaining Performance Obligations (Details) $ in Millions	Mar. 31, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 49
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 37.7
Remaining performance obligation, period	12 months

Leases - Additional Information

Leases - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020renewal
Lessee, Lease, Description [Line Items]
Termination term	1 year
Minimum
Lessee, Lease, Description [Line Items]
Number of renewal options	1
Maximum
Lessee, Lease, Description [Line Items]
Number of renewal options	5

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease cost	$ 1,382	$ 1,381
Short-term lease cost	1,977	1,935
Short-term lease cost - related party	890	902
Total lease cost	4,249	$ 4,218
Cash paid for amounts included in the measurement of lease liabilities - operating leases	$ 1,349
Weighted-average remaining lease term - operating leases	5 years 6 months 17 days
Weighted-average discount rate - operating leases	5.39%

Leases - Lease Maturities (Deta

Leases - Lease Maturities (Details) $ in Thousands	Mar. 31, 2020USD ($)
Leases [Abstract]
For the remaining nine months ending December 31, 2020	$ 4,425
2021	4,404
2022	2,829
2023	1,883
2024	1,416
Thereafter	3,763
Total future lease payments	18,720
Imputed interest	(2,512)
Total	$ 16,208

Consolidated Financial Statem_3

Consolidated Financial Statement Components - Depreciation, Amortization and Accretion (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Line Items]
Depreciation	$ 1,403	$ 1,596
Amortization	625	625
Accretion	118	138
Total depreciation, amortization and accretion expense	2,146	2,359
Leasehold improvements
Property, Plant and Equipment [Line Items]
Depreciation	16	24
Asset retirement costs
Property, Plant and Equipment [Line Items]
Depreciation	(161)	(192)
Paging and computer equipment
Property, Plant and Equipment [Line Items]
Depreciation	1,478	1,666
Furniture, fixtures and vehicles
Property, Plant and Equipment [Line Items]
Depreciation	$ 70	$ 98

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Useful Life (In Years)	10 years
For the remaining nine months ending December 31, 2020	$ 1.9
For the year ending December 31, 2021:	$ 0.4

Consolidated Financial Statem_4

Consolidated Financial Statement Components - Accounts Receivable, Net (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts receivable	$ 1.6	$ 1.3
Contract Asset
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts receivable	$ 6.5	$ 6.4

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Net Consolidated Balance of Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Useful Life (In Years)	10 years
Total amortizable intangible assets	$ 2,292	$ 2,917
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful Life (In Years)	10 years
Gross Carrying Amount	$ 25,002
Accumulated Amortization	(22,710)
Total amortizable intangible assets	$ 2,292

Consolidated Financial Statem_5

Consolidated Financial Statement Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 104,669	$ 105,820
Accumulated depreciation	(97,014)	(97,820)
Total property and equipment, net	7,655	8,000
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	3,620	3,620
Asset retirement costs
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,922	1,922
Asset retirement costs | Minimum
Property, Plant and Equipment [Line Items]
Useful Life	1 year
Asset retirement costs | Maximum
Property, Plant and Equipment [Line Items]
Useful Life	5 years
Paging and computer equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 95,542	96,562
Paging and computer equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful Life	1 year
Paging and computer equipment | Maximum
Property, Plant and Equipment [Line Items]
Useful Life	5 years
Furniture, fixtures and vehicles
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 3,585	$ 3,716
Furniture, fixtures and vehicles | Minimum
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Furniture, fixtures and vehicles | Maximum
Property, Plant and Equipment [Line Items]
Useful Life	5 years

Consolidated Financial Statem_6

Consolidated Financial Statement Components - Capitalized Software Development (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Capitalized software development	$ 1,705,000	$ 0	$ 0
Amortization expense	$ 0	$ 0
Capitalized software
Property, Plant and Equipment [Line Items]
Useful life	3 years

Asset Retirement Obligations -

Asset Retirement Obligations - Changes in Asset Retirement Obligation Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Balance at January 1, 2020	$ 6,151
Accretion	118	$ 138
Amounts paid	(27)
Increases	0
Reclassifications	0
Balance at March 31, 2020	6,242
Short-Term Portion
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Balance at January 1, 2020	90
Accretion	(9)
Amounts paid	(27)
Increases	0
Reclassifications	79
Balance at March 31, 2020	133
Long-Term Portion
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Balance at January 1, 2020	6,061
Accretion	127
Amounts paid	0
Increases	0
Reclassifications	(79)
Balance at March 31, 2020	$ 6,109

Asset Retirement Obligations _2

Asset Retirement Obligations - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]
Estimated liability	$ 7,600
Accretion	$ 118	$ 138

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2020	Apr. 29, 2020	Dec. 31, 2019	May 16, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized (shares)	75,000,000
Common stock par value (usd per share)	$ 0.0001
Preferred stock authorized (shares)	25,000,000
Preferred stock par value (usd per share)	$ 0.0001
Options outstanding (shares)	0		0
Common stock outstanding (shares)	18,993,551		19,071,614
Preferred stock outstanding (shares)	0		0
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend rate (usd per share)		$ 0.125
Dividends declared		$ 2.4
2012 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (shares)				2,194,986
2012 Equity Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
2012 Equity Plan | Contingent RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
2012 Equity Plan | Non-contingent RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Performance-based RSUs | Restricted Stock and Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, nonvested (shares)	908,402		419,426
2011 Long Term Incentive Plan | Contingent RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, nonvested (shares)	471,002
2011 Long Term Incentive Plan | Restricted Stock and Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized, share-based awards other than options	$ 7.9
Weighted-average period over which cost is expected to be recognized	2 years 1 month
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (shares)	250,000
Award required holding period	2 years
Stock purchased during period (shares)	0
ESPP | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Offering period, maximum	6 months

Stockholders' Equity - Cash Div

Stockholders' Equity - Cash Dividends Declared to Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Per Share Amount (usd per share)	$ 0.125	$ 0.125
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Per Share Amount (usd per share)	$ 0.125
Total Declared	$ 2,488
Installment One | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Declaration Date	Feb. 26, 2020
Record Date	Mar. 16, 2020
Payment Date	Mar. 30, 2020
Per Share Amount (usd per share)	$ 0.125
Total Declared	$ 2,488

Stockholders' Equity - Basic an

Stockholders' Equity - Basic and Diluted Net (Loss) Income Per Common Shares (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net (loss) income	$ (4,539)	$ 742
Denominator:
Basic and diluted weighted average outstanding shares of common stock (in shares)	18,958,716	19,196,970
Diluted weighted average outstanding shares of common stock (in shares)	18,958,716	19,356,712
Basic and diluted net (loss) income per common share (usd per share)	$ (0.24)	$ 0.04

Stockholders' Equity - Antidilu

Stockholders' Equity - Antidilutive Securities Excluded from Computation of Net Income Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	$ 203,188	$ 0

Stockholders' Equity - Activiti

Stockholders' Equity - Activities Under Equity Plan (Details)	3 Months Ended
	Mar. 31, 2020shares
ESPP
Share-based Compensation Arrangement By Share-based Payment Award, Shares Authorized [Roll Forward]
Shares available for grant (shares)	184,860
ESPP common stock purchased by eligible employees (shares)	0
Shares available for grant (shares)	184,860
Restricted Stock and Restricted Stock Units (RSUs) | 2012 Equity Plan
Share-based Compensation Arrangement By Share-based Payment Award, Shares Authorized [Roll Forward]
Shares available for grant (shares)	646,480
Shares available for grant (shares)	149,398
Eligible Employees | Restricted Stock and Restricted Stock Units (RSUs) | 2012 Equity Plan
Share-based Compensation Arrangement By Share-based Payment Award, Shares Authorized [Roll Forward]
RSU and restricted stock awarded to eligible employees, net of forfeitures (shares)	(497,082)

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Outstanding RSUs (Details) - Restricted Stock and Restricted Stock Units (RSUs) - Performance-based RSUs	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Shares
Beginning Balance (shares) | shares	419,426
Granted (shares) | shares	531,170
Vested (shares) | shares	(8,106)
Forfeited (shares) | shares	(34,088)
Ending Balance (shares) | shares	908,402
Weighted- Average Grant Date Fair Value
Beginning Balance (usd per share) | $ / shares	$ 14
Granted (usd per share) | $ / shares	12.20
Vested (usd per share) | $ / shares	13.26
Forfeited (usd per share) | $ / shares	11.97
Ending Balance (usd per share) | $ / shares	$ 13.03

Stockholders' Equity - Stock-ba

Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 1,182	$ 528
Performance-based RSUs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	346	107
Time-based RSUs and restricted stock
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	812	404
ESPP
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 24	$ 17

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Income Tax Contingency [Line Items]
Accelerated collection of refundable alternative minimum tax credit	$ 1,300,000
Deferred income tax assets	47,486,000		$ 48,983,000
Valuation allowance	0		$ 0
Decrease in deferred tax assets	$ (1,500,000)
CARES Act | Minimum | Forecast
Income Tax Contingency [Line Items]
Deferred payroll taxes		$ 1,500,000
Tax credits		500,000
CARES Act | Maximum | Forecast
Income Tax Contingency [Line Items]
Deferred payroll taxes		3,000,000
Tax credits		$ 1,500,000

Related Parties (Details)

Related Parties (Details) - Director - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Related Party Transaction [Line Items]
Site rent expense	$ 0.9	$ 0.9
Revenue from related parties	$ 0.2	$ 0.2

Uncategorized Items - spok-2020

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (365,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (365,000)