Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Amber Road, Inc. | ||
Entity Central Index Key | 1,314,223 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 27,320,956 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 148,552,071 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 9,360,601 | $ 15,408,133 |
Accounts receivable, net | 16,957,044 | 19,661,156 |
Unbilled receivables | 884,104 | 314,328 |
Deferred commissions | 4,400,015 | 4,420,632 |
Prepaid expenses and other current assets | 1,715,534 | 1,719,612 |
Total current assets | 33,317,298 | 41,523,861 |
Property and equipment, net | 9,370,104 | 9,978,255 |
Goodwill | 43,768,269 | 43,907,017 |
Other intangibles, net | 4,999,885 | 6,148,820 |
Deferred commissions | 6,734,326 | 8,046,664 |
Deposits and other assets | 1,180,163 | 884,471 |
Total assets | 99,370,045 | 110,489,088 |
Current liabilities: | ||
Accounts payable | 2,650,582 | 2,724,591 |
Accrued expenses | 7,589,482 | 14,127,304 |
Current portion of capital lease obligations | 1,352,456 | 1,155,964 |
Deferred revenue | 37,812,239 | 34,464,264 |
Current portion of term loan, net of discount | 714,391 | 593,336 |
Total current liabilities | 50,119,150 | 53,065,459 |
Capital lease obligations, less current portion | 1,461,101 | 1,276,700 |
Deferred revenue, less current portion | 1,830,706 | 2,135,620 |
Term loan, net of discount, less current portion | 12,839,392 | 13,614,514 |
Revolving credit facility | 6,000,000 | 6,000,000 |
Other noncurrent liabilities | 1,619,744 | 1,825,317 |
Total liabilities | 73,870,093 | 77,917,610 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; issued and outstanding 27,288,985 and 26,926,268 shares at December 31, 2017 and 2016, respectively | 27,289 | 26,926 |
Additional paid-in capital | 195,203,097 | 188,811,896 |
Accumulated other comprehensive loss | (1,822,396) | (1,336,792) |
Accumulated deficit | (167,908,038) | (154,930,552) |
Total stockholders’ equity | 25,499,952 | 32,571,478 |
Total liabilities and stockholders’ equity | $ 99,370,045 | $ 110,489,088 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 27,288,985 | 26,926,268 |
Common stock, shares outstanding (in shares) | 27,288,985 | 26,926,268 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenue: | ||||
Subscription | $ 58,479,139 | $ 53,310,533 | $ 47,067,117 | |
Professional services | 20,596,971 | 19,850,657 | 20,042,803 | |
Total revenue | 79,076,110 | 73,161,190 | 67,109,920 | |
Cost of revenue | ||||
Cost of subscription revenue | [1] | 21,151,419 | 19,922,839 | 20,041,196 |
Cost of professional services revenue | [1] | 16,590,148 | 15,813,562 | 16,852,844 |
Total cost of revenue | 37,741,567 | 35,736,401 | 36,894,040 | |
Gross profit | 41,334,543 | 37,424,789 | 30,215,880 | |
Operating expenses | ||||
Sales and marketing | [1] | 22,526,535 | 22,637,984 | 24,200,504 |
Research and development | [1] | 14,941,394 | 16,794,516 | 16,448,625 |
General and administrative | [1] | 15,263,297 | 15,318,098 | 16,528,568 |
Total operating expenses | 52,731,226 | 54,750,598 | 57,177,697 | |
Loss from operations | (11,396,683) | (17,325,809) | (26,961,817) | |
Interest income | 4,806 | 57,126 | 61,414 | |
Interest expense | (976,834) | (862,321) | (910,046) | |
Loss before income taxes | (12,368,711) | (18,131,004) | (27,810,449) | |
Income tax expense | 608,775 | 595,722 | 268,225 | |
Net loss | $ (12,977,486) | $ (18,726,726) | $ (28,078,674) | |
Net loss per share (Note 11): | ||||
Basic and diluted (in dollars per share) | $ (0.47) | $ (0.70) | $ (1.07) | |
Weighted-average shares outstanding (Note 11): | ||||
Basic and diluted (in shares) | 27,415,953 | 26,718,882 | 26,152,301 | |
[1] | (1) Includes stock-based compensation as follows: Year Ended December 31, 2017 2016 2015 Cost of subscription revenue $ 767,877 $ 810,455 $ 766,498 Cost of professional services revenue 549,378 480,160 515,354 Sales and marketing 1,015,307 872,899 821,177 Research and development 1,404,771 1,161,422 1,077,638 General and administrative 2,340,536 2,142,954 3,279,635 $ 6,077,869 $ 5,467,890 $ 6,460,302 |
Consolidated Statements of Ope5
Consolidated Statements of Operations Stock Compensation Allocation - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 6,077,869 | $ 5,467,890 | $ 6,460,302 |
Cost of Subscription Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 767,877 | 810,455 | 766,498 |
Cost of Professional Services [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 549,378 | 480,160 | 515,354 |
Selling and Marketing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 1,015,307 | 872,899 | 821,177 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 1,404,771 | 1,161,422 | 1,077,638 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 2,340,536 | $ 2,142,954 | $ 3,279,635 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss Statement - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (12,977,486) | $ (18,726,726) | $ (28,078,674) |
Other comprehensive loss: | |||
Foreign currency translation | (485,604) | (553,583) | (175,717) |
Total other comprehensive loss | (485,604) | (553,583) | (175,717) |
Comprehensive loss | $ (13,463,090) | $ (19,280,309) | $ (28,254,391) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity Statement - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Common StockCommon Stock | Restricted Stock Units (RSUs) [Member]Common Stock |
Shares, beginning balance at Dec. 31, 2014 | 25,765,792 | ||||||
Stockholders' Equity, beginning balance at Dec. 31, 2014 | $ 64,958,707 | $ 25,766 | $ 173,665,585 | $ (607,492) | $ (108,125,152) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (28,078,674) | (28,078,674) | |||||
Other comprehensive loss | $ (175,717) | (175,717) | |||||
Exercise of common stock options (in shares) | 462,703 | 462,703 | |||||
Exercise of common stock options | $ 1,299,427 | $ 463 | 1,298,964 | ||||
Stock-based compensation expense | 6,460,302 | 6,460,302 | |||||
Issuance of common stock for vested restricted stock units (in shares) | 24,452 | ||||||
Issuance of common stock for vested restricted stock units | 0 | (24) | $ 24 | ||||
Shares related to net share settlement of equity awards (in shares) | (5,500) | ||||||
Shares related to net share settlement of equity awards | (22,494) | $ (5) | (22,489) | ||||
Stocked issued during period (in shares) | 13,012 | ||||||
Stock issued during period | 0 | (13) | $ 13 | ||||
Stock compensation for contingent consideration | 54,764 | 54,764 | |||||
Shares, ending balance at Dec. 31, 2015 | 26,260,459 | ||||||
Stockholders' Equity, ending balance at Dec. 31, 2015 | 44,496,315 | $ 26,261 | 181,457,089 | (783,209) | (136,203,826) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (18,726,726) | (18,726,726) | |||||
Other comprehensive loss | $ (553,583) | (553,583) | |||||
Exercise of common stock options (in shares) | 646,639 | 646,639 | |||||
Exercise of common stock options | $ 1,887,582 | $ 647 | 1,886,935 | ||||
Stock-based compensation expense | 5,467,890 | 5,467,890 | |||||
Issuance of common stock for vested restricted stock units (in shares) | 12,664 | ||||||
Issuance of common stock for vested restricted stock units | 0 | (12) | $ 12 | ||||
Stocked issued during period (in shares) | 6,506 | ||||||
Stock issued during period | 0 | (6) | $ 6 | ||||
Shares, ending balance at Dec. 31, 2016 | 26,926,268 | ||||||
Stockholders' Equity, ending balance at Dec. 31, 2016 | 32,571,478 | $ 26,926 | 188,811,896 | (1,336,792) | (154,930,552) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (12,977,486) | (12,977,486) | |||||
Other comprehensive loss | $ (485,604) | (485,604) | |||||
Exercise of common stock options (in shares) | 107,526 | 107,526 | |||||
Exercise of common stock options | $ 313,695 | $ 108 | 313,587 | ||||
Stock-based compensation expense | 6,077,869 | 6,077,869 | |||||
Issuance of common stock for vested restricted stock units (in shares) | 237,916 | ||||||
Issuance of common stock for vested restricted stock units | 0 | (238) | $ 238 | ||||
Stocked issued during period (in shares) | 17,275 | ||||||
Stock issued during period | 0 | (17) | $ 17 | ||||
Shares, ending balance at Dec. 31, 2017 | 27,288,985 | ||||||
Stockholders' Equity, ending balance at Dec. 31, 2017 | $ 25,499,952 | $ 27,289 | $ 195,203,097 | $ (1,822,396) | $ (167,908,038) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (12,977,486) | $ (18,726,726) | $ (28,078,674) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 5,386,789 | 6,590,343 | 7,575,783 |
Bad debt expense | 568,193 | 509,454 | 80,571 |
Stock-based compensation | 6,077,869 | 5,467,890 | 6,460,302 |
Compensation related to puttable common stock | 0 | 0 | 54,764 |
Acquisition related deferred compensation | 0 | 1,419,885 | 946,590 |
Changes in fair value of contingent consideration liability | 18,525 | 30,469 | (1,350,441) |
Amortization of Debt Discount (Premium) | 37,884 | 62,914 | 56,382 |
Changes in operating assets and liabilities: | |||
Accounts receivable and unbilled receivables | 1,615,836 | (1,213,717) | (1,658,964) |
Prepaid expenses and other assets | 1,313,029 | (1,437,777) | (863,713) |
Accounts payable | (166,898) | 1,284,742 | (316,655) |
Accrued expenses | (2,988,525) | 4,228,119 | (304,962) |
Payment for Contingent Consideration Liability, Operating Activities | (2,366,469) | 0 | 0 |
Other liabilities | (209,859) | (2,084,343) | (281,876) |
Deferred revenue | 3,021,248 | 3,702,924 | 4,451,731 |
Net cash used in operating activities | (669,864) | (165,823) | (13,229,162) |
Cash flows from investing activities: | |||
Capital expenditures | (257,893) | (231,979) | (1,385,082) |
Addition of capitalized software development costs | (1,458,495) | (2,286,778) | (1,926,302) |
Addition of intangible assets | 0 | (275,000) | (275,000) |
Acquisition, net of cash acquired | 0 | 0 | (25,717,078) |
Cash paid for deposits | (190,752) | (118,993) | (21,989) |
Increase (Decrease) in Restricted Cash | 259 | (113,094) | |
Decrease (increase) in restricted cash | 112,815 | ||
Net cash used in investing activities | (1,907,399) | (2,799,656) | (29,212,636) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit | 24,350,000 | 20,250,000 | 5,000,000 |
Payments on revolving line of credit | (24,350,000) | (19,250,000) | 0 |
Proceeds from term loan | 0 | 0 | 20,000,000 |
Payments on term loan | (656,250) | (375,000) | (5,343,750) |
Debt financing costs | (35,701) | 0 | (188,743) |
Repayments on capital lease obligations | (1,556,097) | (1,425,882) | (1,493,664) |
Proceeds from the exercise of stock options | 313,695 | 1,887,582 | 1,299,427 |
Taxes paid related to net share settlement | 0 | 0 | (22,494) |
Payment for Contingent Consideration Liability, Financing Activities | (1,308,525) | 0 | 0 |
Net cash provided by (used in) financing activities | (3,242,878) | 1,086,700 | 19,250,776 |
Effect of exchange rate on cash and cash equivalents | (227,391) | (567,611) | (196,655) |
Net decrease in cash and cash equivalents | (6,047,532) | (2,446,390) | (23,387,677) |
Cash and cash equivalents at beginning of period | 15,408,133 | 17,854,523 | 41,242,200 |
Cash and cash equivalents at end of period | 9,360,601 | 15,408,133 | 17,854,523 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 938,949 | 790,338 | 858,007 |
Non-cash property and equipment acquired under capital lease | 1,936,990 | 834,432 | 1,545,864 |
Non-cash property and equipment purchases in accounts payable | 0 | $ 22,454 | 368,614 |
Non-cash acquisition contingent consideration | $ 0 | $ 2,322,531 |
Background
Background | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Liquidity | Background |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies and Practices | Summary of Significant Accounting Policies and Practices (a) Basis of Presentation and Principles of Consolidation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include our accounts and those of our wholly owned subsidiaries primarily located in India, China and Europe. All significant intercompany balances and transactions have been eliminated in consolidation. (b) Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the carrying amount of intangibles and goodwill; valuation allowance for receivables and deferred income taxes; revenue; capitalization of software costs; and valuation of share-based payments. Actual results could differ from those estimates. (c) Foreign Currency The assets and liabilities of our foreign operations are translated into U.S. dollars at current exchange rates as of the balance sheet date, and revenues and expenses are translated at average exchange rates for the period. Resulting translation adjustments are reflected in accumulated other comprehensive loss, which is a separate component of stockholders’ equity. (d) Cash and Cash Equivalents We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents at December 31, 2017 and 2016 consist of the following: December 31, 2017 2016 Cash $ 9,318,074 $ 15,382,773 Money market accounts 42,527 25,360 $ 9,360,601 $ 15,408,133 (e) Fair Value of Financial Instruments and Fair Value Measurements Our financial instruments consist of cash equivalents, accounts receivable, accounts payable, and accrued expenses. Management believes that the carrying values of these instruments are representative of their fair value due to the relatively short-term nature of those instruments. We follow Financial Accounting Standards Board (FASB) accounting guidance on fair value measurements for financial assets and liabilities measured on a recurring basis. ASC 820, Fair Value Measurements, among other things, defines fair value, establishes a framework for measuring fair value, and requires disclosure about such fair value measurements. Assets and liabilities measured at fair value are based on one or more of three valuation techniques provided for in the standards. The three value techniques are as follows: Market Approach — Prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities; Income Approach — Techniques to convert future amounts to a single present amount based on market expectations (including present value techniques and option pricing models); and Cost Approach — Amount that currently would be required to replace the service capacity of an asset (often referred to as replacement cost). The standards clarify that fair value is an exit price, representing the amount that would be received to sell an asset, based on the highest and best use of the asset, or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for evaluating such assumptions, the standards establish a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities; Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; or Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions about what market participants would use in pricing the asset or liability. The following tables provide the financial assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2017 and 2016 : Fair Value Measurements at Reporting Date Using December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash equivalents - money market accounts $ 42,527 $ 42,527 $ — $ — Restricted cash - money market accounts 56,400 56,400 — — Total assets measured at fair value on a recurring basis $ 98,927 $ 98,927 $ — $ — December 31, 2016 Assets: Cash equivalents - money market accounts $ 25,360 $ 25,360 $ — $ — Restricted cash - money market accounts 56,141 56,141 — — Total assets measured at fair value on a recurring basis $ 81,501 $ 81,501 $ — $ — Liabilities: Acquisition contingent consideration liability $ 1,290,000 $ — $ — $ 1,290,000 Total liabilities measured at fair value on a recurring basis $ 1,290,000 $ — $ — $ 1,290,000 Acquisition contingent consideration liability is measured at fair value and is based on significant inputs not observable in the market, which represents a Level 3 measurement. The valuation of contingent consideration uses assumptions we believe would be made by a market participant. In June 2017, as required by the ecVision (International) Inc. (ecVision) acquisition agreement (see Note 3), the acquisition contingent consideration liability was paid in full. The reconciliation of the acquisition contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows: Balance at December 31, 2015 $ 1,259,531 Mark to estimated fair value recorded as general and administrative expense 30,469 Balance at December 31, 2016 1,290,000 Mark to estimated fair value recorded as general and administrative expense 18,525 Acquisition contingent consideration liability paid (1,308,525 ) Balance at December 31, 2017 $ — (f) Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical write-off experience, the industry, and the economy. We review our allowance for doubtful accounts monthly. Past-due balances over 90 days and over a specified amount are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance-sheet credit exposure related to our customers. Typically, we record unbilled receivables for contracts on which revenue has been recognized, but for which the customer has not yet been billed. The table below presents the changes in the allowance for doubtful accounts: Year Ended December 31, 2017 2016 2015 Beginning balance $ 410,560 $ 153,543 $ 138,715 Provision for doubtful accounts 568,193 509,454 80,571 Acquisition — — 3,047 Write-offs, net of recoveries (447,858 ) (252,437 ) (68,790 ) Ending balance $ 530,895 $ 410,560 $ 153,543 (g) Major Customers and Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Our customer base is principally comprised of enterprise and mid-market companies within industries including Chemical/Pharmaceutical, High Technology/Electronics, Industrial/Manufacturing, Logistics, Oil & Gas, and Retail/Apparel. We do not require collateral from our customers. As of December 31, 2017 , and 2016 , no single customer accounted for more than 10% of our accounts receivable. For the year ended December 31, 2017 , one customer accounted for 11% of our total revenue. For the years ended December 31, 2016 and 2015, no single customer accounted for more than 10% of our total revenue. (h) Prepaid Expense and Other Current Assets Prepaid expenses and other current assets as of December 31, 2017 and 2016 primarily consist of annual prepaid license and maintenance fees related to our internal software licenses, and prepaid marketing fees. (i) Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Equipment acquired under capital leases is recorded at the present value of the minimum lease payments and subsequently depreciated based on its classification below. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Estimated Useful Life Computers and equipment 3 – 5 years Software 3 – 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of the estimated useful life or the remaining lease term (j) Goodwill Goodwill represents the excess of costs over the fair value of the assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the provisions of ASC 350, Intangibles — Goodwill and Other (ASC 350). To accomplish this, we are required to identify our reporting units and determine the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units as of the annual impairment testing date. Management has determined that we operate in one reporting unit. Management is required to determine the fair value of our reporting unit and compare it to the carrying amount of the reporting unit on the annual impairment testing date. To the extent the carrying amount of the reporting unit exceeds the fair value of the reporting unit, we would be required to perform the second step of the annual impairment test, as this is an indication that the reporting unit goodwill may be impaired. We performed our annual impairment test as of December 31, 2017 , and the second step was not required as the fair value exceeded the carrying value. Accordingly, our reporting unit was not at risk of failing step one of the goodwill impairment testing process. (k) Other Intangibles Other intangibles, net of accumulated amortization, are primarily the result of the allocation of the purchase price related to businesses acquired. Each intangible asset acquired is being amortized on a basis consistent with the utilization of the assets over their estimated useful lives and is reviewed for impairment in accordance with ASC 350. (l) Deposits and Other Assets Deposits and other assets mainly consist of rental security deposits. (m) Impairment of Long-Lived Assets In accordance with ASC 350, Long-Lived Assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, then an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the years ended December 31, 2017, 2016, and 2015 , management believes that no revision of the remaining useful lives or write-down of long-lived assets is required. (n) Income Taxes Income taxes are accounted for under the provisions of ASC Topic 740, Income Taxes (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. (o) Revenue We primarily generate revenue from the sale of subscriptions and subscription-related professional services. In instances involving subscriptions, revenue is generated under customer contracts with multiple elements, which are comprised of (1) subscription fees that provide the customers with access to our on-demand application and content, unspecified solution and content upgrades, and customer support, (2) professional services associated with consulting services (primarily implementation services), and (3) transaction-related fees (including publishing services). Our initial customer contracts have contract terms from, typically, 3 years to 5 years in length. Typically, the customer does not take possession of the software nor does the customer have the right to take possession of the software supporting the on-demand application service. However, in certain instances, we have customers that take possession of the software whereby the application is installed on the customer’s premises. Our subscription service arrangements typically may only be terminated for cause and do not contain refund provisions. We provide our software as a service and follow the provisions of ASC Topic 605, Revenue Recognition (ASC 605) and ASC Topic 985, Software (ASC 985). We commence revenue recognition when all of the following conditions are met: • There is persuasive evidence of an arrangement; • The service has been or is being provided to the customer; • The collection of the fees is probable; and • The amount of fees to be paid by the customer is fixed or determinable. The subscription fees typically begin the first month following contract execution, whether or not we have completed the solution’s implementation. In addition, typically, any services performed by us for our customers are not essential to the functionality of our products. Subscription Revenue Subscription revenue is recognized ratably over contract terms beginning on the commencement date of each contract, which is the date our service is made available to customers. Typically, amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Transaction-related revenue is recognized as the transactions occur. Professional Services Revenue The majority of professional services contracts are on a time and material basis. When these services are not combined with subscription revenue as a single unit of accounting, as discussed below, this revenue is recognized as the services are rendered for time and material contracts, and when the milestones are achieved and accepted by the customer for fixed price contracts. Multiple-Deliverable Arrangements We enter into arrangements with multiple deliverables that generally include subscription, professional services (primarily implementation) as well as transaction-related fees. We allocate revenue to each element in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (VSOE), if available, third party evidence (TPE), if VSOE is not available, or estimated selling prices (ESP), if neither VSOE nor TPE is available. As we have been unable to establish VSOE or TPE for the elements of our arrangements, we establish the ESP for each element primarily by considering the weighted average of actual sales prices of professional services sold on a standalone basis and subscription including various add-on modules if and when sold together without professional services, and other factors such as gross margin objectives, pricing practice and growth strategy. We have established processes to determine ESP and allocate revenue in multiple-deliverable arrangements using ESP. For those contracts in which the customer accesses our software via an on-demand application, we account for these contracts in accordance with ASC 605-25, Revenue Recognition—Multiple-Element Arrangements. The majority of these agreements represent multiple-element arrangements, and we evaluate each element to determine whether it represents a separate unit of accounting. The consideration allocated to subscription is recognized as revenue ratably over the contract period. The consideration allocated to professional services is recognized as the services are performed, which is typically over the first 3 months to 6 months of an arrangement. For those contracts in which the customer takes possession of the software, we account for such transactions in accordance with ASC 985, Software. We account for these contracts as subscriptions and recognize the entire arrangement fee (subscription and services) ratably over the term of the agreement. In addition, as we do not have VSOE for services, any add-on services entered into during the term of the subscription are recognized over the remaining term of the agreement. Other Revenue Items Sales tax collected from customers and remitted to governmental authorities is accounted for on a net basis and, therefore, is not included in revenue and cost of revenue in the condensed consolidated statements of operations. We classify customer reimbursements received for direct costs paid to third parties and related expenses as revenue, in accordance with ASC 605. The amounts of such customer reimbursements included in professional services revenue and cost of professional services revenue is as follows: Year Ended December 31, 2017 2016 2015 Customer reimbursements $ 521,875 $ 585,174 $ 499,553 Deferred Revenue Deferred revenue represents amounts collected from (or invoiced to) customers in advance of revenue earned. Deferred revenue to be recognized in the succeeding 12 month period is included in current deferred revenue with the remaining amounts included in noncurrent deferred revenue. (p) Cost of Revenue Cost of subscription revenue . Cost of subscription revenue consists primarily of personnel and related costs of our hosting, support, and content teams, including salaries, benefits, bonuses, payroll taxes, stock-based compensation and allocated overhead, as well as software license fees, hosting costs, Internet connectivity, and depreciation expenses directly related to delivering solutions, as well as amortization of capitalized software development costs. As we add data center capacity and personnel in advance of anticipated growth, our cost of subscription revenue may increase. Our cost of subscription revenue is generally expensed as the costs are incurred. Cost of professional services revenue . Cost of professional services revenue consists primarily of personnel and related costs, including salaries, benefits, bonuses, payroll taxes, stock-based compensation, the costs of contracted third-party vendors, reimbursable expenses and allocated overhead. As our personnel are employed on a full-time basis, our cost of professional services is largely fixed in the short term, while our professional services revenue may fluctuate, leading to fluctuations in professional services gross profit. Cost of professional services revenue is generally expensed as costs are incurred. (q) Deferred Commissions We defer commission costs that are incremental and directly related to the acquisition of customer contracts. Commission costs are accrued and deferred upon execution of the sales contract by the customer. Payments to sales personnel are made shortly after the receipt of the related customer payment. Deferred commissions are amortized over the term of the related noncancelable customer contract and are recoverable through the related future revenue streams. Our commission costs deferred and amortized in the period are as follows: Year Ended December 31, 2017 2016 2015 Commission costs deferred $ 3,855,517 $ 6,436,699 $ 4,102,533 Commission costs amortized 5,188,472 4,744,353 3,556,301 (r) Stock-Based Compensation We recognize stock-based compensation as an expense in the consolidated financial statements and measure that cost based on the estimated grant-date fair value using the Black-Scholes option pricing model. (s) Segments We have one operating segment. Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis. (t) Geographic Information Revenue by geographic location based on billing address of our customers is as follows: Year Ended December 31, Country 2017 2016 2015 United States $ 59,905,306 $ 57,586,112 $ 55,372,259 International 19,170,804 15,575,078 11,737,661 Total revenue $ 79,076,110 $ 73,161,190 $ 67,109,920 No single country other than the United States had revenue greater than 10% of total revenue for the years ended December 31, 2017, 2016, and 2015 . Long-lived assets by geographic area is as follows: December 31, Country 2017 2016 United States $ 8,535,281 $ 8,881,844 International 834,823 1,096,411 Total long-lived assets $ 9,370,104 $ 9,978,255 (u) Recent Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The adoption of this standard is not expected to have a material effect on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Restricted Cash", which amends ASC 230, Statement of Cash Flows. This ASU requires that a statement of cash flows explain the change during the reporting period in the total of cash, cash equivalents, and restricted cash or restricted cash equivalents. The effective date will be the first quarter of 2018, with early adoption permitted, and will be adopted using a retrospective transition approach. The adoption of this standard is not expected to have a material effect on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments", which amends ASC 230, Statement of Cash Flows. This ASU provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. The effective date will be the first quarter of 2018, with early adoption permitted. The adoption of this standard is not expected to have a material effect on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements but believe the most significant changes will be related to the recognition of new right-of-use assets and lease liabilities on our balance sheet for real estate operating leases. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, a new accounting standard that requires recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The FASB has also issued several updates to ASU 2014-09. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the present standards. It also requires additional disclosures regarding the nature, amount, timing and uncertainty of cash flows arising from contracts with customers. In the fourth quarter of 2017, we finalized our assessment of the new standard, including completing our contract reviews and our evaluation of the incremental costs of obtaining a contract. Based on our assessment, we will adopt the new revenue guidance effective January 1, 2018, by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. The adoption of the new standard will reduce revenue due to the loss of services revenue from professional services billings delivered as of December 31, 2017 for on-premise installations of our software. Under the previous standard, revenue from these billings were deferred and amortized ratably over the subscription term of the related contract. Under the new standard, billings for professional services related to on-premise software installations will be recognized as revenue as services are performed. As the professional services were delivered previous to December 31, 2017, the amount included in deferred revenue as of that date will not be recognized in 2018 and beyond. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition In March 2015, we acquired ecVision, a cloud-based provider of global sourcing and collaborative supply chain solutions for brand-focused companies. ecVision offers a cloud-based supply chain collaboration platform that optimizes product lifecycle and supply chain processes and their products help customers effectively manage their relationships with product suppliers, raw material vendors, product testing and social compliance audit firms, and global logistics companies. The acquisition of ecVision expands our suite of global supply chain capabilities, allowing us to offer more services at the starting point of the global supply chain and providing greater market differentiation. The acquisition of ecVision was accounted for under the purchase method of accounting and its operating results are included in the accompanying consolidated financial statements from the date of acquisition. As required per the acquisition agreement, we paid contingent consideration of $3,675,000 to ecVision’s former equityholders in June 2017. The revenue and net loss of the combined entity as if the acquisition date had been January 1, 2015 are as follows: Supplemental pro forma information (unaudited): Year Ended December 31, 2015 Revenue $ 69,060,082 Net loss (29,514,360 ) |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated Balance Sheet Components [Abstract] | |
Consolidated Balance Sheet Components | Consolidated Balance Sheet Components Components of property and equipment, accrued expenses, deferred revenue and other noncurrent liabilities is as follows: (a) Property and Equipment December 31, 2017 2016 Computer software and equipment $ 14,296,247 $ 15,053,746 Software development costs 13,980,872 14,938,090 Furniture and fixtures 1,741,918 1,959,854 Leasehold improvements 2,546,686 2,930,390 Total property and equipment 32,565,723 34,882,080 Less: accumulated depreciation and amortization (23,195,619 ) (24,903,825 ) Total property and equipment, net $ 9,370,104 $ 9,978,255 Depreciation and amortization expense for the years ended December 31, 2017, 2016, and 2015 were $4,271,381 , $5,068,786 , and $6,268,537 , respectively. Certain development costs of our software solution are capitalized in accordance with ASC Topic 350-40, Internal Use Software, which outlines the stages of computer software development and specifies when capitalization of costs is required. Projects that are determined to be in the development stage are capitalized and amortized over their useful lives of five years . Projects that are determined to be within the preliminary stage are expensed as incurred. Information related to capitalized software costs is as follows: Year Ended December 31, 2017 2016 2015 Software costs capitalized $ 1,458,495 $ 2,286,778 $ 1,926,302 Software costs amortized (1) 2,143,039 1,970,150 2,789,481 (1) Included in cost of subscription revenue on the accompanying consolidated statements of operations. December 31, 2017 2016 Capitalized software costs not yet subject to amortization $ 824,738 $ 984,568 (b) Accrued Expenses December 31, 2017 2016 Accrued bonus $ 1,980,218 $ 2,717,625 Accrued commission 1,901,132 4,188,006 Deferred rent 380,077 263,404 Accrued professional fees 712,345 917,144 Accrued taxes 805,555 549,740 Accrued contingent consideration and acquisition compensation — 3,647,475 Other accrued expenses 1,810,155 1,843,910 Total $ 7,589,482 $ 14,127,304 (c) Deferred revenue December 31, 2017 2016 Current: Subscription revenue $ 35,247,750 $ 32,833,795 Professional services revenue 2,564,489 1,630,469 Total current 37,812,239 34,464,264 Noncurrent: Subscription revenue 412,608 386,206 Professional services revenue 1,418,098 1,749,414 Total noncurrent 1,830,706 2,135,620 Total deferred revenue $ 39,642,945 $ 36,599,884 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Other intangibles are comprised of the following: Amortization December 31, 2017 2016 Acquired technology 3 - 8 years $ 6,317,600 $ 6,317,600 Customer related intangibles 10 - 15 years 3,960,200 3,960,200 Contract backlog 2 years 940,400 940,400 Trademarks and licenses 5 - 7 years 1,193,700 1,193,700 Patents and other 2.3 years 41,741 93,719 12,453,641 12,505,619 Less: accumulated amortization (7,453,756 ) (6,356,799 ) $ 4,999,885 $ 6,148,820 Amortization expense was $1,115,408 , $1,521,557 , and $1,307,246 for the years ended December 31, 2017, 2016, and 2015 , respectively. The estimated future amortization expense of other intangibles as of December 31, 2017 is as follows: 2018 $ 1,037,972 2019 1,031,203 2020 929,606 2021 879,600 2022 809,719 2023 and thereafter 271,785 $ 4,959,885 The rollforward of goodwill is as follows: Balance at December 31, 2015 $ 43,913,185 2016 activity (6,168 ) Balance at December 31, 2016 43,907,017 2017 activity (138,748 ) Balance at December 31, 2017 $ 43,768,269 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income taxes and income tax expense is comprised of the following: Year Ended December 31, 2017 2016 2015 Loss before income taxes: Domestic $ (10,156,858 ) $ (14,562,851 ) $ (21,560,050 ) Foreign (2,211,853 ) (3,568,153 ) (6,250,399 ) $ (12,368,711 ) $ (18,131,004 ) $ (27,810,449 ) Current provision: Federal $ — $ — $ 60,773 State 39,396 735 27,438 Foreign 569,379 594,987 372,394 $ 608,775 $ 595,722 $ 460,605 Deferred provision: Federal $ — $ — $ — State — — — Foreign — — (192,380 ) $ — $ — $ (192,380 ) A reconciliation of the statutory U.S. federal tax rate to our effective rate is as follows: Year Ended December 31, 2017 2016 2015 Statutory U.S. federal tax rate (benefit) (35.0 )% (35.0 )% (35.0 )% State income taxes, net of federal benefit 0.1 0.1 0.1 Foreign taxes 6.5 4.3 5.6 Stock-based compensation (1.6 ) (3.3 ) 0.1 Acquisition related expenses — — 1.6 Effect of tax reform 108.7 — — Change in valuation allowance (77.0 ) 37.5 22.9 Non-deductible expenses and other 3.2 (0.3 ) 5.7 Effective tax rate 4.9 % 3.3 % 1.0 % Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. We recorded a valuation allowance in the amount of $25,347,108 and $34,212,128 as of December 31, 2017 and 2016 , respectively, as management believes it is more likely than not that we will not realize our net deferred tax assets. The net change in the valuation allowance during the years ended December 31, 2017 and 2016 was $(8,865,020) , and $7,101,581 , respectively. We have subsidiaries in India, the United Kingdom, Hong Kong and China. The India entity is treated as a branch for U.S. tax purposes. As such, all income attributable to the Indian branch is currently recognized in the U.S. The India entity also pays taxes locally in India. The foreign current taxes consist of taxes paid locally in the United Kingdom and India. The state current taxes consist of taxes paid for statutory minimum taxes as well as state taxes for a subsidiary. Deferred tax assets and liabilities are comprised of the following: December 31, 2017 2016 Current deferred tax asset: Accrued bonuses $ 393,274 $ 888,022 Accounts receivable reserve 72,147 154,230 Other 145,826 350,887 Non-Current deferred tax asset: Deferred revenue 1,048,179 1,410,565 NOLs 24,720,025 33,611,543 Other 3,411,274 4,238,400 Deferred tax assets $ 29,790,725 $ 40,653,647 Current deferred tax liability: Deferred commissions $ (2,171,927 ) $ (3,119,841 ) Non-current deferred tax liability: Intangibles (635,723 ) (814,819 ) Fixed assets (1,619,083 ) (2,481,104 ) Other $ (16,884 ) $ (25,755 ) Deferred tax liabilities $ (4,443,617 ) $ (6,441,519 ) Less: valuation allowance $ (25,347,108 ) $ (34,212,128 ) Total $ — $ — We have a federal net operating loss (NOL) carryforward of $90,901,000 and $82,141,000 as of December 31, 2017 and 2016 , respectively. The federal NOL carryforward will begin to expire in 2019. These NOLs may be subject to limitation under Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under the regulations. Under IRC section 382 of the Internal Revenue Code substantial changes in ownership may limit the amount of net operating loss carryforwards that may be utilized annually in the future to offset taxable income. We have completed an Internal Revenue Code section 382 study through June 30, 3016, which concluded that we have experienced several ownership changes, causing limitations on the annual use of the net operating loss carryforwards. Provided there is sufficient taxable income, $2,131,290 of the net operating loss carry forwards are expected to expire without utilization. Additionally, our ability to use our net operating loss carryforwards to reduce future taxable income may be further limited as a result of any future equity transactions, including, but not limited to, an issuance of shares of stock or sales of common stock by our existing stockholders. For state income tax purposes, we have net operating loss carryforwards in a number of jurisdictions in varying amounts and with varying expiration dates from 2017 through 2037. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that we will be able to sustain a position taken on an income tax return. We have no liability for uncertain positions. Interest and penalties, if any, related to unrecognized tax benefits, would be recognized as income tax expense. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Tax years 2013 and forward remain open for examination for federal tax purposes and tax years 2012 and forward remain open for examination for our more significant state tax jurisdictions. To the extent utilized in future years’ tax returns, net operating loss carryforwards at December 31, 2017 will remain subject to examination until the respective tax year is closed. In July 2014, we were notified by the Internal Revenue Service that we had been selected at random for a compliance research examination related to the year ended December 31, 2012. In May 2016, they concluded their examination and the result of such examination was the adjustment of federal net operating loss carryforwards aggregating approximately $1,200,000 . On December 22, 2017, H.R. 1 (also, known as the Tax Cuts and Jobs Act (the “Act”)) was signed into law. Among its numerous changes to the Internal Revenue Code, the Act reduces U.S. federal corporate tax rate from 35% to 21% . As a result, we believe that the most significant impact on our consolidated financial statements will be reduction of approximately $13,400,000 for the deferred tax assets related to net operating losses and other deferred tax assets. Such reduction was offset by an equal reduction to our valuation allowance. Additionally, we have investments in various foreign subsidiaries. At December 31, 2017 and November 2, 2017, the cumulative earnings and profits of these entities combined were negative. Accordingly, we are not liable for the transition tax enacted under the Act. We have completed the accounting for the tax impact of the Act as of December 31, 2017 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases We have several noncancelable operating leases that expire through 2024. These leases generally contain renewal options for periods ranging from three to five years and require us to pay all executory costs such as maintenance and insurance. Rental expense for operating leases for the years ended December 31, 2017, 2016, and 2015 was approximately $3,687,000 , $3,697,000 , and $3,564,000 respectively, and is allocated to various line items in the consolidated statements of operations. The carrying value of assets recorded under capital leases was $2,691,383 and $2,159,850 as of December 31, 2017 and 2016 , respectively, which includes accumulated amortization of $6,864,443 and $5,524,216 , respectively. Amortization of assets held under capital leases is allocated to various line items in the consolidated statements of operations. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2017 are as follows: Capital Leases Operating Leases 2018 $ 1,565,706 $ 4,557,966 2019 1,079,503 4,138,827 2020 367,274 2,796,258 2021 101,559 1,801,713 2022 55,132 1,188,188 2023 and thereafter — 618,474 Total minimum lease payments 3,169,174 $ 15,101,426 Less amount representing interest (355,617 ) Present value of net minimum capital lease payments 2,813,557 Less current installments of obligations under capital leases (1,352,456 ) Obligations under capital leases excluding current installments $ 1,461,101 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt In connection with the ecVision acquisition (Note 3), in March 2015 we entered into a credit agreement providing for financing comprised of (i) a senior secured term loan facility (the Term Loan) of $20,000,000 , and (ii) a senior secured revolving credit facility (the Revolver), that was amended in November 2015 to allow for a borrowing limit of $10,000,000 , and includes a $2,000,000 sublimit for the issuance of letters of credit. The maturity date of the credit agreement was March 4, 2018. The credit agreement contains customary affirmative and negative covenants for financings of its type that are subject to customary exceptions. As of December 31, 2017 , we were in compliance with all the reporting and financial covenants. On February 15, 2017, we entered into Amendment No. 2 (the Amendment) to the Credit Agreement. The Amendment revised language in the Credit Agreement to include changes to the applicable margins with respect to Eurodollar and Base Rate loans, increased the available borrowing under the Revolver from $10,000,000 to $15,000,000 , and extended the maturity date for both the Term Loan and the Revolver to December 31, 2019. On March 6, 2018, we entered into Amendment No. 3 (Third Amendment) to the March 4, 2015 Credit Agreement. The Third Amendment amends the definition of “Quick Liabilities” for purposes of calculating performance against the Credit Agreement covenant provisions. The outstanding balance for the Term Loan as of December 31, 2017 was $13,553,783 , net of unaccreted discount and deferred financing costs of $71,217 and the outstanding balance under the Revolver was $6,000,000 . For the period ended December 31, 2017 , the weighted average interest rate used was 4.48% for the Term Loan and 5.52% for the Revolver. The following table reflects the schedule of principal payments for the Term Loan as of December 31, 2017 : Principal 2018 $ 750,000 2019 12,875,000 $ 13,625,000 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock In accordance with our Certificate of Incorporation, as amended and restated, we are authorized to issue 100,000,000 shares of $0.001 par value common stock. Each outstanding share of common stock entitles the holder to one vote. The holders of common stock are entitled to receive dividends, subject to preferential rights by holders of our preferred stock and if declared by our board of directors. As of December 31, 2017 , no dividends have been declared. Preferred Stock In accordance with our Certificate of Incorporation, as amended and restated, we are authorized to issue 10,000,000 shares of $0.001 par value preferred stock, which may be issued in one or more series. At December 31, 2017 , there are no |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-Based Compensation We grant stock-based incentive awards to attract, motivate and retain qualified employees (including officers), non-employee directors and consultants, and those of our affiliates. Awards granted under our 2012 Omnibus Incentive Compensation Plan (the 2012 Plan) include common stock options, restricted stock units (RSUs), performance-based restricted stock units (PSUs), and restricted stock awards. The 2002 Stock Option Plan (the 2002 Plan) expired in 2012 and we are no longer making grants under it. Information related to the 2012 Plan and the 2002 Plan as of December 31, 2017 is as follows: 2012 Plan 2002 Plan Shares of common stock authorized for issuance 9,646,696 4,939,270 Stock options outstanding 4,344,019 288,635 RSUs outstanding 812,262 — PSUs outstanding 466,499 — Shares available for future grant 3,141,931 — Inclusive in the above "shares of common stock authorized for issuance" are the additional 4,500,000 shares approved by our stockholders in May 2017. Stock Options The fair value of option grants is estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Year Ended December 31, 2017 2016 2015 Risk-free interest rate 1.92% 1.29% 1.71% Expected volatility 32.66% 33.62% 38.90% Expected dividend yield — — — Expected life in years 6.25 6.25 6.25 Weighted average fair value of options granted $2.82 $1.32 $3.28 The computation of expected volatility for each period is based on historical volatility of comparable public companies. The volatility percentage represents the mean volatility of these companies. The computation of expected life for each period was determined based on the simplified method. The risk-free interest rate is based on U.S. Treasury yields for zero-coupon bonds with a term consistent with the expected life of the options. Information relative to the 2002 Plan and the 2012 Plan is as follows: Options Outstanding Weighted Average Exercise Price Balance at December 31, 2014 4,449,973 $9.00 Granted 1,028,850 8.05 Exercised (462,703 ) 2.81 Canceled (490,113 ) 9.84 Expired (123,064 ) 7.56 Balance at December 31, 2015 4,402,943 9.38 Granted 248,728 3.74 Exercised (646,639 ) 2.92 Canceled (85,287 ) 9.04 Expired (62,914 ) 5.77 Balance at December 31, 2016 3,856,831 9.99 Granted 1,050,654 7.86 Exercised (107,526 ) 2.92 Canceled (59,341 ) 9.94 Expired (107,964 ) 11.11 Balance at December 31, 2017 4,632,654 9.79 December 31, 2017 2016 Total intrinsic value of options exercised $ 415,374 $ 3,933,518 Weighted average exercise price of fully vested options $ 10.43 $ 9.99 Weighted average remaining term of fully vested options 6.4 years 7.4 years Total unrecognized compensation cost related to non-vested stock options $ 5,116,640 $ 6,868,787 Weighted average period to recognize compensation cost related to non-vested stock options 2.1 years 1.7 years Information with respect to the options outstanding and exercisable under the 2002 Plan and the 2012 Plan at December 31, 2017 is as follows: Options Outstanding Options Exercisable Exercise Price Options Weighted Intrinsic Options Weighted Intrinsic $ 2.31 - $ 3.74 . 503,708 5.6 years $ 2,226,096 374,730 4.8 years $ 1,761,776 4.13 - 7.20 . 773,039 8.3 years 467,901 214,808 5.7 years 331,418 8.07 - 12.62 . 1,321,149 8.0 years — 583,356 7.0 years — 13.00 - 15.90 . 2,034,758 6.6 years — 1,653,222 6.6 years — 4,632,654 $ 2,693,997 2,826,116 $ 2,093,194 Restricted Stock and Performance Stock Units The following table is a summary of our RSU and PSU activity for the years ended December 31, 2017 : Number Number Total Weighted Balance at December 31, 2014 109,309 — 109,309 $15.27 Granted 113,306 350,546 463,852 8.13 Vested (140,638 ) — (140,638 ) 13.89 Canceled — (40,001 ) (40,001 ) 8.08 Balance at December 31, 2015 81,977 310,545 392,522 8.07 Granted 666,018 — 666,018 3.91 Vested (83,377 ) — (83,377 ) 8.11 Canceled (64,652 ) (30,298 ) (94,950 ) 5.44 Balance at December 31, 2016 599,966 280,247 880,213 5.20 Granted 593,580 198,440 792,020 8.29 Vested (343,146 ) — (343,146 ) 3.84 Canceled (38,138 ) (12,188 ) (50,326 ) 6.87 Balance at December 31, 2017 812,262 466,499 1,278,761 7.41 December 31, Weighted-average grant date fair value of unvested combined RSU/PSU $7.41 Total unrecognized compensation cost related to non-vested combined RSU/PSU $6,168,325 Weighted average period to recognize compensation cost related to non-vested combined RSU/PSU 2.8 years During the year ended December 31, 2017 , we awarded 198,440 PSUs that entitle recipients to shares of our common stock if certain multi-year financial metrics are met for the fiscal year ending December 31, 2018. The PSUs entitle the recipients to an amount of shares of common stock that could range from 0% up to 500% |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share: Year Ended December 31, 2017 2016 2015 Basic and diluted net loss per share: Numerator: Net loss $ (12,977,486 ) $ (18,726,726 ) $ (28,078,674 ) Denominator: Weighted average shares used in computing net loss 27,415,953 26,718,882 26,152,301 Basic and diluted net loss per share $ (0.47 ) $ (0.70 ) $ (1.07 ) Diluted net loss per share does not include the effect of the following antidilutive common equivalent shares: Year Ended December 31, 2017 2016 2015 Stock options outstanding 4,632,654 3,856,831 4,402,943 Restricted stock and performance stock units 1,278,761 880,213 392,522 5,911,415 4,737,044 4,795,465 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Employment Agreements On May 5, 2016, we entered into an employment agreement with our Chief Executive Officer and President, James W. Preuninger, which is identical to his previous employment agreement in all respects, with the following exceptions, (i) a term of employment through December 31, 2018 with successive two -year extensions unless either party provides written notice of non-renewal at least six months before the end of the then-current term of employment, (ii) a base salary adjustment to reflect a prior 2015 increase, (iii) inclusion of non-renewal by us as an event upon which specified compensation (including certain equity vesting) would be owed to Mr. Preuninger, similar to termination by us without cause or termination by Mr. Preuninger with good reason, (iv) new provisions addressing recoupment and claw-back, and (v) modification to the Confidential Information, Assignment of Rights, Non-Solicitation and Non-Competition Agreement between us and Mr. Preuninger (Exhibit B to the employment agreement) to increase the timeframe for non-solicitation and non-competition, upon expiration or termination, from twelve months to twenty-four months. (b) Legal Proceedings We are involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our financial position, results of operations, or liquidity. (c) Other |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plan | Benefit Plan We have a retirement savings plan under Section 401(k) of the Internal Revenue Code (the 401(k) Plan). We did not make any matching contributions to the 401(k) Plan during the years ended December 31, 2017, 2016, and 2015 |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) The following is a summary of our quarterly results of operations for the years ended December 31, 2017 and 2016 : March 31, June 30, September 30, December 31, Revenues $ 18,554,556 $ 19,675,285 $ 20,213,250 $ 20,633,019 Gross profit 9,152,782 9,765,196 11,062,248 11,354,317 Net loss (4,413,196 ) (4,517,471 ) (2,237,703 ) (1,809,116 ) Net loss per share—basic and diluted $ (0.16 ) $ (0.16 ) $ (0.08 ) $ (0.07 ) March 31, June 30, September 30, December 31, Revenues $ 16,964,672 $ 18,138,940 $ 18,850,801 $ 19,206,777 Gross profit 7,947,096 9,106,224 10,040,282 10,331,187 Net loss (5,686,183 ) (4,740,385 ) (3,791,250 ) (4,508,908 ) Net loss per share—basic and diluted $ (0.22 ) $ (0.18 ) $ (0.14 ) $ (0.17 ) |
Summary of Significant Accoun23
Summary of Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include our accounts and those of our wholly owned subsidiaries primarily located in India, China and Europe. All significant intercompany balances and transactions have been eliminated in consolidation. |
Principles of Consolidation | Basis of Presentation and Principles of Consolidation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include our accounts and those of our wholly owned subsidiaries primarily located in India, China and Europe. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of EstimatesThe preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the carrying amount of intangibles and goodwill; valuation allowance for receivables and deferred income taxes; revenue; capitalization of software costs; and valuation of share-based payments. Actual results could differ from those estimates. |
Foreign Currency | Foreign Currency |
Cash and Cash Equivalents | Cash and Cash EquivalentsWe consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. |
Fair Value of Financial Instruments and Fair Value Measurements | Fair Value of Financial Instruments and Fair Value Measurements Our financial instruments consist of cash equivalents, accounts receivable, accounts payable, and accrued expenses. Management believes that the carrying values of these instruments are representative of their fair value due to the relatively short-term nature of those instruments. We follow Financial Accounting Standards Board (FASB) accounting guidance on fair value measurements for financial assets and liabilities measured on a recurring basis. ASC 820, Fair Value Measurements, among other things, defines fair value, establishes a framework for measuring fair value, and requires disclosure about such fair value measurements. Assets and liabilities measured at fair value are based on one or more of three valuation techniques provided for in the standards. The three value techniques are as follows: Market Approach — Prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities; Income Approach — Techniques to convert future amounts to a single present amount based on market expectations (including present value techniques and option pricing models); and Cost Approach — Amount that currently would be required to replace the service capacity of an asset (often referred to as replacement cost). The standards clarify that fair value is an exit price, representing the amount that would be received to sell an asset, based on the highest and best use of the asset, or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for evaluating such assumptions, the standards establish a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities; Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; or Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions about what market participants would use in pricing the asset or liability. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical write-off experience, the industry, and the economy. We review our allowance for doubtful accounts monthly. Past-due balances over 90 |
Major Customer and Concentrations of Credit Risk | Major Customers and Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Our customer base is principally comprised of enterprise and mid-market companies within industries including Chemical/Pharmaceutical, High Technology/Electronics, Industrial/Manufacturing, Logistics, Oil & Gas, and Retail/Apparel. We do not require collateral from our customers. As of December 31, 2017 , and 2016 , no single customer accounted for more than 10% of our accounts receivable. For the year ended December 31, 2017 , one customer accounted for 11% of our total revenue. For the years ended December 31, 2016 and 2015, no single customer accounted for more than 10% |
Prepaid Expense and Other Current Assets | Prepaid Expense and Other Current Assets Prepaid expenses and other current assets as of December 31, 2017 and 2016 |
Property and Equipment | Property and EquipmentProperty and equipment are stated at cost less accumulated depreciation and amortization. Equipment acquired under capital leases is recorded at the present value of the minimum lease payments and subsequently depreciated based on its classification below. |
Goodwill | Goodwill Goodwill represents the excess of costs over the fair value of the assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the provisions of ASC 350, Intangibles — Goodwill and Other (ASC 350). To accomplish this, we are required to identify our reporting units and determine the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units as of the annual impairment testing date. Management has determined that we operate in one reporting unit. Management is required to determine the fair value of our reporting unit and compare it to the carrying amount of the reporting unit on the annual impairment testing date. To the extent the carrying amount of the reporting unit exceeds the fair value of the reporting unit, we would be required to perform the second step of the annual impairment test, as this is an indication that the reporting unit goodwill may be impaired. We performed our annual impairment test as of December 31, 2017 |
Other Intangibles | Other IntangiblesOther intangibles, net of accumulated amortization, are primarily the result of the allocation of the purchase price related to businesses acquired. Each intangible asset acquired is being amortized on a basis consistent with the utilization of the assets over their estimated useful lives and is reviewed for impairment in accordance with ASC 350. |
Deposits and Other Assets | Deposits and Other AssetsDeposits and other assets mainly consist of rental security deposits. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with ASC 350, Long-Lived Assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, then an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the years ended December 31, 2017, 2016, and 2015 |
Income Taxes | Income Taxes Income taxes are accounted for under the provisions of ASC Topic 740, Income Taxes (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Revenue | Revenue We primarily generate revenue from the sale of subscriptions and subscription-related professional services. In instances involving subscriptions, revenue is generated under customer contracts with multiple elements, which are comprised of (1) subscription fees that provide the customers with access to our on-demand application and content, unspecified solution and content upgrades, and customer support, (2) professional services associated with consulting services (primarily implementation services), and (3) transaction-related fees (including publishing services). Our initial customer contracts have contract terms from, typically, 3 years to 5 years in length. Typically, the customer does not take possession of the software nor does the customer have the right to take possession of the software supporting the on-demand application service. However, in certain instances, we have customers that take possession of the software whereby the application is installed on the customer’s premises. Our subscription service arrangements typically may only be terminated for cause and do not contain refund provisions. We provide our software as a service and follow the provisions of ASC Topic 605, Revenue Recognition (ASC 605) and ASC Topic 985, Software (ASC 985). We commence revenue recognition when all of the following conditions are met: • There is persuasive evidence of an arrangement; • The service has been or is being provided to the customer; • The collection of the fees is probable; and • The amount of fees to be paid by the customer is fixed or determinable. The subscription fees typically begin the first month following contract execution, whether or not we have completed the solution’s implementation. In addition, typically, any services performed by us for our customers are not essential to the functionality of our products. Subscription Revenue Subscription revenue is recognized ratably over contract terms beginning on the commencement date of each contract, which is the date our service is made available to customers. Typically, amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Transaction-related revenue is recognized as the transactions occur. Professional Services Revenue The majority of professional services contracts are on a time and material basis. When these services are not combined with subscription revenue as a single unit of accounting, as discussed below, this revenue is recognized as the services are rendered for time and material contracts, and when the milestones are achieved and accepted by the customer for fixed price contracts. Multiple-Deliverable Arrangements We enter into arrangements with multiple deliverables that generally include subscription, professional services (primarily implementation) as well as transaction-related fees. We allocate revenue to each element in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (VSOE), if available, third party evidence (TPE), if VSOE is not available, or estimated selling prices (ESP), if neither VSOE nor TPE is available. As we have been unable to establish VSOE or TPE for the elements of our arrangements, we establish the ESP for each element primarily by considering the weighted average of actual sales prices of professional services sold on a standalone basis and subscription including various add-on modules if and when sold together without professional services, and other factors such as gross margin objectives, pricing practice and growth strategy. We have established processes to determine ESP and allocate revenue in multiple-deliverable arrangements using ESP. For those contracts in which the customer accesses our software via an on-demand application, we account for these contracts in accordance with ASC 605-25, Revenue Recognition—Multiple-Element Arrangements. The majority of these agreements represent multiple-element arrangements, and we evaluate each element to determine whether it represents a separate unit of accounting. The consideration allocated to subscription is recognized as revenue ratably over the contract period. The consideration allocated to professional services is recognized as the services are performed, which is typically over the first 3 months to 6 months of an arrangement. For those contracts in which the customer takes possession of the software, we account for such transactions in accordance with ASC 985, Software. We account for these contracts as subscriptions and recognize the entire arrangement fee (subscription and services) ratably over the term of the agreement. In addition, as we do not have VSOE for services, any add-on services entered into during the term of the subscription are recognized over the remaining term of the agreement. Other Revenue Items |
Cost of Revenue | Cost of Revenue Cost of subscription revenue . Cost of subscription revenue consists primarily of personnel and related costs of our hosting, support, and content teams, including salaries, benefits, bonuses, payroll taxes, stock-based compensation and allocated overhead, as well as software license fees, hosting costs, Internet connectivity, and depreciation expenses directly related to delivering solutions, as well as amortization of capitalized software development costs. As we add data center capacity and personnel in advance of anticipated growth, our cost of subscription revenue may increase. Our cost of subscription revenue is generally expensed as the costs are incurred. Cost of professional services revenue |
Deferred Commissions | Deferred CommissionsWe defer commission costs that are incremental and directly related to the acquisition of customer contracts. Commission costs are accrued and deferred upon execution of the sales contract by the customer. Payments to sales personnel are made shortly after the receipt of the related customer payment. Deferred commissions are amortized over the term of the related noncancelable customer contract and are recoverable through the related future revenue streams. |
Stock-Based Compensation | Stock-Based CompensationWe recognize stock-based compensation as an expense in the consolidated financial statements and measure that cost based on the estimated grant-date fair value using the Black-Scholes option pricing model. |
Segments | Segments We have one |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The adoption of this standard is not expected to have a material effect on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Restricted Cash", which amends ASC 230, Statement of Cash Flows. This ASU requires that a statement of cash flows explain the change during the reporting period in the total of cash, cash equivalents, and restricted cash or restricted cash equivalents. The effective date will be the first quarter of 2018, with early adoption permitted, and will be adopted using a retrospective transition approach. The adoption of this standard is not expected to have a material effect on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments", which amends ASC 230, Statement of Cash Flows. This ASU provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. The effective date will be the first quarter of 2018, with early adoption permitted. The adoption of this standard is not expected to have a material effect on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements but believe the most significant changes will be related to the recognition of new right-of-use assets and lease liabilities on our balance sheet for real estate operating leases. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, a new accounting standard that requires recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The FASB has also issued several updates to ASU 2014-09. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the present standards. It also requires additional disclosures regarding the nature, amount, timing and uncertainty of cash flows arising from contracts with customers. In the fourth quarter of 2017, we finalized our assessment of the new standard, including completing our contract reviews and our evaluation of the incremental costs of obtaining a contract. Based on our assessment, we will adopt the new revenue guidance effective January 1, 2018, by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. The adoption of the new standard will reduce revenue due to the loss of services revenue from professional services billings delivered as of December 31, 2017 for on-premise installations of our software. Under the previous standard, revenue from these billings were deferred and amortized ratably over the subscription term of the related contract. Under the new standard, billings for professional services related to on-premise software installations will be recognized as revenue as services are performed. As the professional services were delivered previous to December 31, 2017, the amount included in deferred revenue as of that date will not be recognized in 2018 and beyond. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies and Practices (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Recovery of Direct Costs [Table Text Block] | The amounts of such customer reimbursements included in professional services revenue and cost of professional services revenue is as follows: Year Ended December 31, 2017 2016 2015 Customer reimbursements $ 521,875 $ 585,174 $ 499,553 |
Summary of Cash and Cash Equivalents | Cash and cash equivalents at December 31, 2017 and 2016 consist of the following: December 31, 2017 2016 Cash $ 9,318,074 $ 15,382,773 Money market accounts 42,527 25,360 $ 9,360,601 $ 15,408,133 |
Summary of Financial Assets and Liabilities Carried at Fair Value, Measured on a Recurring Basis | The following tables provide the financial assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2017 and 2016 : Fair Value Measurements at Reporting Date Using December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash equivalents - money market accounts $ 42,527 $ 42,527 $ — $ — Restricted cash - money market accounts 56,400 56,400 — — Total assets measured at fair value on a recurring basis $ 98,927 $ 98,927 $ — $ — December 31, 2016 Assets: Cash equivalents - money market accounts $ 25,360 $ 25,360 $ — $ — Restricted cash - money market accounts 56,141 56,141 — — Total assets measured at fair value on a recurring basis $ 81,501 $ 81,501 $ — $ — Liabilities: Acquisition contingent consideration liability $ 1,290,000 $ — $ — $ 1,290,000 Total liabilities measured at fair value on a recurring basis $ 1,290,000 $ — $ — $ 1,290,000 |
Reconciliation of the Level 3, Warrant Liability, Measured at Fair Value on a Recurring Basis | The reconciliation of the acquisition contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows: Balance at December 31, 2015 $ 1,259,531 Mark to estimated fair value recorded as general and administrative expense 30,469 Balance at December 31, 2016 1,290,000 Mark to estimated fair value recorded as general and administrative expense 18,525 Acquisition contingent consideration liability paid (1,308,525 ) Balance at December 31, 2017 $ — |
Schedule of Changes in Allowance for Doubtful Accounts | The table below presents the changes in the allowance for doubtful accounts: Year Ended December 31, 2017 2016 2015 Beginning balance $ 410,560 $ 153,543 $ 138,715 Provision for doubtful accounts 568,193 509,454 80,571 Acquisition — — 3,047 Write-offs, net of recoveries (447,858 ) (252,437 ) (68,790 ) Ending balance $ 530,895 $ 410,560 $ 153,543 |
Schedule of Property and Equipment Depreciable Useful Lives | Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Estimated Useful Life Computers and equipment 3 – 5 years Software 3 – 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of the estimated useful life or the remaining lease term December 31, 2017 2016 Computer software and equipment $ 14,296,247 $ 15,053,746 Software development costs 13,980,872 14,938,090 Furniture and fixtures 1,741,918 1,959,854 Leasehold improvements 2,546,686 2,930,390 Total property and equipment 32,565,723 34,882,080 Less: accumulated depreciation and amortization (23,195,619 ) (24,903,825 ) Total property and equipment, net $ 9,370,104 $ 9,978,255 |
Schedule of Commissions Costs Deferred and Amortized in the Period | Our commission costs deferred and amortized in the period are as follows: Year Ended December 31, 2017 2016 2015 Commission costs deferred $ 3,855,517 $ 6,436,699 $ 4,102,533 Commission costs amortized 5,188,472 4,744,353 3,556,301 |
Schedule of Revenue and Long-Lived Assets, by Geographical Area | Revenue by geographic location based on billing address of our customers is as follows: Year Ended December 31, Country 2017 2016 2015 United States $ 59,905,306 $ 57,586,112 $ 55,372,259 International 19,170,804 15,575,078 11,737,661 Total revenue $ 79,076,110 $ 73,161,190 $ 67,109,920 No single country other than the United States had revenue greater than 10% of total revenue for the years ended December 31, 2017, 2016, and 2015 . Long-lived assets by geographic area is as follows: December 31, Country 2017 2016 United States $ 8,535,281 $ 8,881,844 International 834,823 1,096,411 Total long-lived assets $ 9,370,104 $ 9,978,255 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Revenue and Net Loss of the Combined Entity | The revenue and net loss of the combined entity as if the acquisition date had been January 1, 2015 are as follows: Supplemental pro forma information (unaudited): Year Ended December 31, 2015 Revenue $ 69,060,082 Net loss (29,514,360 ) |
Consolidated Balance Sheet Co26
Consolidated Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated Balance Sheet Components [Abstract] | |
Schedule of Property and Equipment | Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Estimated Useful Life Computers and equipment 3 – 5 years Software 3 – 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of the estimated useful life or the remaining lease term December 31, 2017 2016 Computer software and equipment $ 14,296,247 $ 15,053,746 Software development costs 13,980,872 14,938,090 Furniture and fixtures 1,741,918 1,959,854 Leasehold improvements 2,546,686 2,930,390 Total property and equipment 32,565,723 34,882,080 Less: accumulated depreciation and amortization (23,195,619 ) (24,903,825 ) Total property and equipment, net $ 9,370,104 $ 9,978,255 |
Information Related to Capitalized Software Costs | Information related to capitalized software costs is as follows: Year Ended December 31, 2017 2016 2015 Software costs capitalized $ 1,458,495 $ 2,286,778 $ 1,926,302 Software costs amortized (1) 2,143,039 1,970,150 2,789,481 (1) Included in cost of subscription revenue on the accompanying consolidated statements of operations. December 31, 2017 2016 Capitalized software costs not yet subject to amortization $ 824,738 $ 984,568 |
Schedule of Accrued Expenses | Accrued Expenses December 31, 2017 2016 Accrued bonus $ 1,980,218 $ 2,717,625 Accrued commission 1,901,132 4,188,006 Deferred rent 380,077 263,404 Accrued professional fees 712,345 917,144 Accrued taxes 805,555 549,740 Accrued contingent consideration and acquisition compensation — 3,647,475 Other accrued expenses 1,810,155 1,843,910 Total $ 7,589,482 $ 14,127,304 |
Deferred Revenue | Deferred revenue December 31, 2017 2016 Current: Subscription revenue $ 35,247,750 $ 32,833,795 Professional services revenue 2,564,489 1,630,469 Total current 37,812,239 34,464,264 Noncurrent: Subscription revenue 412,608 386,206 Professional services revenue 1,418,098 1,749,414 Total noncurrent 1,830,706 2,135,620 Total deferred revenue $ 39,642,945 $ 36,599,884 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | Other intangibles are comprised of the following: Amortization December 31, 2017 2016 Acquired technology 3 - 8 years $ 6,317,600 $ 6,317,600 Customer related intangibles 10 - 15 years 3,960,200 3,960,200 Contract backlog 2 years 940,400 940,400 Trademarks and licenses 5 - 7 years 1,193,700 1,193,700 Patents and other 2.3 years 41,741 93,719 12,453,641 12,505,619 Less: accumulated amortization (7,453,756 ) (6,356,799 ) $ 4,999,885 $ 6,148,820 |
Summary of Future Amortization Expense of Other Intangible Assets | The estimated future amortization expense of other intangibles as of December 31, 2017 is as follows: 2018 $ 1,037,972 2019 1,031,203 2020 929,606 2021 879,600 2022 809,719 2023 and thereafter 271,785 $ 4,959,885 |
Goodwill Rollforward | The rollforward of goodwill is as follows: Balance at December 31, 2015 $ 43,913,185 2016 activity (6,168 ) Balance at December 31, 2016 43,907,017 2017 activity (138,748 ) Balance at December 31, 2017 $ 43,768,269 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Loss before income taxes and income tax expense is comprised of the following: Year Ended December 31, 2017 2016 2015 Loss before income taxes: Domestic $ (10,156,858 ) $ (14,562,851 ) $ (21,560,050 ) Foreign (2,211,853 ) (3,568,153 ) (6,250,399 ) $ (12,368,711 ) $ (18,131,004 ) $ (27,810,449 ) Current provision: Federal $ — $ — $ 60,773 State 39,396 735 27,438 Foreign 569,379 594,987 372,394 $ 608,775 $ 595,722 $ 460,605 Deferred provision: Federal $ — $ — $ — State — — — Foreign — — (192,380 ) $ — $ — $ (192,380 ) |
Reconciliation of Statutory U.S. Federal Tax Rate to Effective Rate | A reconciliation of the statutory U.S. federal tax rate to our effective rate is as follows: Year Ended December 31, 2017 2016 2015 Statutory U.S. federal tax rate (benefit) (35.0 )% (35.0 )% (35.0 )% State income taxes, net of federal benefit 0.1 0.1 0.1 Foreign taxes 6.5 4.3 5.6 Stock-based compensation (1.6 ) (3.3 ) 0.1 Acquisition related expenses — — 1.6 Effect of tax reform 108.7 — — Change in valuation allowance (77.0 ) 37.5 22.9 Non-deductible expenses and other 3.2 (0.3 ) 5.7 Effective tax rate 4.9 % 3.3 % 1.0 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are comprised of the following: December 31, 2017 2016 Current deferred tax asset: Accrued bonuses $ 393,274 $ 888,022 Accounts receivable reserve 72,147 154,230 Other 145,826 350,887 Non-Current deferred tax asset: Deferred revenue 1,048,179 1,410,565 NOLs 24,720,025 33,611,543 Other 3,411,274 4,238,400 Deferred tax assets $ 29,790,725 $ 40,653,647 Current deferred tax liability: Deferred commissions $ (2,171,927 ) $ (3,119,841 ) Non-current deferred tax liability: Intangibles (635,723 ) (814,819 ) Fixed assets (1,619,083 ) (2,481,104 ) Other $ (16,884 ) $ (25,755 ) Deferred tax liabilities $ (4,443,617 ) $ (6,441,519 ) Less: valuation allowance $ (25,347,108 ) $ (34,212,128 ) Total $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2017 are as follows: Capital Leases Operating Leases 2018 $ 1,565,706 $ 4,557,966 2019 1,079,503 4,138,827 2020 367,274 2,796,258 2021 101,559 1,801,713 2022 55,132 1,188,188 2023 and thereafter — 618,474 Total minimum lease payments 3,169,174 $ 15,101,426 Less amount representing interest (355,617 ) Present value of net minimum capital lease payments 2,813,557 Less current installments of obligations under capital leases (1,352,456 ) Obligations under capital leases excluding current installments $ 1,461,101 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2017 are as follows: Capital Leases Operating Leases 2018 $ 1,565,706 $ 4,557,966 2019 1,079,503 4,138,827 2020 367,274 2,796,258 2021 101,559 1,801,713 2022 55,132 1,188,188 2023 and thereafter — 618,474 Total minimum lease payments 3,169,174 $ 15,101,426 Less amount representing interest (355,617 ) Present value of net minimum capital lease payments 2,813,557 Less current installments of obligations under capital leases (1,352,456 ) Obligations under capital leases excluding current installments $ 1,461,101 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The following table reflects the schedule of principal payments for the Term Loan as of December 31, 2017 : Principal 2018 $ 750,000 2019 12,875,000 $ 13,625,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Information related to the 2012 Plan and the 2002 Plan as of December 31, 2017 is as follows: 2012 Plan 2002 Plan Shares of common stock authorized for issuance 9,646,696 4,939,270 Stock options outstanding 4,344,019 288,635 RSUs outstanding 812,262 — PSUs outstanding 466,499 — Shares available for future grant 3,141,931 — |
Summary of Fair Value Weighted Average Assumption | The fair value of option grants is estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Year Ended December 31, 2017 2016 2015 Risk-free interest rate 1.92% 1.29% 1.71% Expected volatility 32.66% 33.62% 38.90% Expected dividend yield — — — Expected life in years 6.25 6.25 6.25 Weighted average fair value of options granted $2.82 $1.32 $3.28 |
Schedule of Share-based Compensation Activity | Information relative to the 2002 Plan and the 2012 Plan is as follows: Options Outstanding Weighted Average Exercise Price Balance at December 31, 2014 4,449,973 $9.00 Granted 1,028,850 8.05 Exercised (462,703 ) 2.81 Canceled (490,113 ) 9.84 Expired (123,064 ) 7.56 Balance at December 31, 2015 4,402,943 9.38 Granted 248,728 3.74 Exercised (646,639 ) 2.92 Canceled (85,287 ) 9.04 Expired (62,914 ) 5.77 Balance at December 31, 2016 3,856,831 9.99 Granted 1,050,654 7.86 Exercised (107,526 ) 2.92 Canceled (59,341 ) 9.94 Expired (107,964 ) 11.11 Balance at December 31, 2017 4,632,654 9.79 December 31, 2017 2016 Total intrinsic value of options exercised $ 415,374 $ 3,933,518 Weighted average exercise price of fully vested options $ 10.43 $ 9.99 Weighted average remaining term of fully vested options 6.4 years 7.4 years Total unrecognized compensation cost related to non-vested stock options $ 5,116,640 $ 6,868,787 Weighted average period to recognize compensation cost related to non-vested stock options 2.1 years 1.7 years |
Schedule of Share-based Compensation by Exercise Price Range | Information with respect to the options outstanding and exercisable under the 2002 Plan and the 2012 Plan at December 31, 2017 is as follows: Options Outstanding Options Exercisable Exercise Price Options Weighted Intrinsic Options Weighted Intrinsic $ 2.31 - $ 3.74 . 503,708 5.6 years $ 2,226,096 374,730 4.8 years $ 1,761,776 4.13 - 7.20 . 773,039 8.3 years 467,901 214,808 5.7 years 331,418 8.07 - 12.62 . 1,321,149 8.0 years — 583,356 7.0 years — 13.00 - 15.90 . 2,034,758 6.6 years — 1,653,222 6.6 years — 4,632,654 $ 2,693,997 2,826,116 $ 2,093,194 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table is a summary of our RSU and PSU activity for the years ended December 31, 2017 : Number Number Total Weighted Balance at December 31, 2014 109,309 — 109,309 $15.27 Granted 113,306 350,546 463,852 8.13 Vested (140,638 ) — (140,638 ) 13.89 Canceled — (40,001 ) (40,001 ) 8.08 Balance at December 31, 2015 81,977 310,545 392,522 8.07 Granted 666,018 — 666,018 3.91 Vested (83,377 ) — (83,377 ) 8.11 Canceled (64,652 ) (30,298 ) (94,950 ) 5.44 Balance at December 31, 2016 599,966 280,247 880,213 5.20 Granted 593,580 198,440 792,020 8.29 Vested (343,146 ) — (343,146 ) 3.84 Canceled (38,138 ) (12,188 ) (50,326 ) 6.87 Balance at December 31, 2017 812,262 466,499 1,278,761 7.41 December 31, Weighted-average grant date fair value of unvested combined RSU/PSU $7.41 Total unrecognized compensation cost related to non-vested combined RSU/PSU $6,168,325 Weighted average period to recognize compensation cost related to non-vested combined RSU/PSU 2.8 years |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share: Year Ended December 31, 2017 2016 2015 Basic and diluted net loss per share: Numerator: Net loss $ (12,977,486 ) $ (18,726,726 ) $ (28,078,674 ) Denominator: Weighted average shares used in computing net loss 27,415,953 26,718,882 26,152,301 Basic and diluted net loss per share $ (0.47 ) $ (0.70 ) $ (1.07 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Diluted net loss per share does not include the effect of the following antidilutive common equivalent shares: Year Ended December 31, 2017 2016 2015 Stock options outstanding 4,632,654 3,856,831 4,402,943 Restricted stock and performance stock units 1,278,761 880,213 392,522 5,911,415 4,737,044 4,795,465 |
Quarterly Results of Operatio33
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations (unaudited) | The following is a summary of our quarterly results of operations for the years ended December 31, 2017 and 2016 : March 31, June 30, September 30, December 31, Revenues $ 18,554,556 $ 19,675,285 $ 20,213,250 $ 20,633,019 Gross profit 9,152,782 9,765,196 11,062,248 11,354,317 Net loss (4,413,196 ) (4,517,471 ) (2,237,703 ) (1,809,116 ) Net loss per share—basic and diluted $ (0.16 ) $ (0.16 ) $ (0.08 ) $ (0.07 ) March 31, June 30, September 30, December 31, Revenues $ 16,964,672 $ 18,138,940 $ 18,850,801 $ 19,206,777 Gross profit 7,947,096 9,106,224 10,040,282 10,331,187 Net loss (5,686,183 ) (4,740,385 ) (3,791,250 ) (4,508,908 ) Net loss per share—basic and diluted $ (0.22 ) $ (0.18 ) $ (0.14 ) $ (0.17 ) |
Summary of Significant Accoun34
Summary of Significant Accounting Policies and Practices - Cash and Cash Equivalents (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash | $ 9,318,074 | $ 15,382,773 | ||
Money market accounts | 42,527 | 25,360 | ||
Total cash and cash equivalents | $ 9,360,601 | $ 15,408,133 | $ 17,854,523 | $ 41,242,200 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies and Practices - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Total assets measured at fair value on a recurring basis | $ 98,927 | $ 81,501 |
Liabilities: | ||
Acquisition contingent consideration liability | 0 | 1,290,000 |
Total liabilities measured at fair value on a recurring basis | 1,290,000 | |
Cash Equivalents | ||
Assets: | ||
Money market accounts | 42,527 | 25,360 |
Restricted Cash | ||
Assets: | ||
Money market accounts | 56,400 | 56,141 |
Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Total assets measured at fair value on a recurring basis | 98,927 | 81,501 |
Liabilities: | ||
Acquisition contingent consideration liability | 0 | |
Total liabilities measured at fair value on a recurring basis | 0 | |
Quoted Prices in Active Markets (Level 1) | Cash Equivalents | ||
Assets: | ||
Money market accounts | 42,527 | 25,360 |
Quoted Prices in Active Markets (Level 1) | Restricted Cash | ||
Assets: | ||
Money market accounts | 56,400 | 56,141 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total assets measured at fair value on a recurring basis | 0 | 0 |
Liabilities: | ||
Acquisition contingent consideration liability | 0 | |
Total liabilities measured at fair value on a recurring basis | 0 | |
Significant Other Observable Inputs (Level 2) | Cash Equivalents | ||
Assets: | ||
Money market accounts | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Restricted Cash | ||
Assets: | ||
Money market accounts | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total assets measured at fair value on a recurring basis | 0 | 0 |
Liabilities: | ||
Acquisition contingent consideration liability | 1,290,000 | |
Total liabilities measured at fair value on a recurring basis | 1,290,000 | |
Significant Unobservable Inputs (Level 3) | Cash Equivalents | ||
Assets: | ||
Money market accounts | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Restricted Cash | ||
Assets: | ||
Money market accounts | $ 0 | $ 0 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies and Practices - Reconciliation of the Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Mark to estimated fair value recorded as general and administrative expense | $ 18,525 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $ 1,308,525 | |
Acquisition Contingent Consideration Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 1,259,531 | |
Mark to estimated fair value recorded as general and administrative expense | $ 30,469 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies and Practices - Allowance for Doubtful Accounts Roll Forward (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 410,560 | $ 153,543 | $ 138,715 |
Provision for doubtful accounts | 568,193 | 509,454 | 80,571 |
Acquisition | 0 | 0 | 3,047 |
Write-offs, net of recoveries | (447,858) | (252,437) | (68,790) |
Ending balance | $ 530,895 | $ 410,560 | $ 153,543 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies and Practices - Major Customers and Concentration of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Sales Revenue, Net | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 10.00% |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
Summary of Significant Accoun39
Summary of Significant Accounting Policies and Practices - Property and Equipment Depreciable Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Computer and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Computer and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Summary of Significant Accoun40
Summary of Significant Accounting Policies and Practices - Goodwill (Details) | 12 Months Ended |
Dec. 31, 2017reporting_unit | |
Accounting Policies [Abstract] | |
Number of reporting units (reporting units) | 1 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies and Practices - Revenue (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Initial customer contracts, minimum term | 3 years | ||
Initial customer contracts, maximum term | 5 years | ||
Recovery of direct costs recorded in professional services revenue and cost of professional services revenue | $ 521,875 | $ 585,174 | $ 499,553 |
Maximum [Member] | Software Service, Support and Maintenance Arrangement [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months | ||
Minimum | Software Service, Support and Maintenance Arrangement [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Summary of Significant Accoun42
Summary of Significant Accounting Policies and Practices - Deferred Commissions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Deferred commission costs | $ 3,855,517 | $ 6,436,699 | $ 4,102,533 |
Amortization of deferred sales commissions | $ 5,188,472 | $ 4,744,353 | $ 3,556,301 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies and Practices - Segments (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Accounting Policies [Abstract] | |
Number of Reportable Segments | 1 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies and Practices - Sales and Long Lived-Assets by Geographic Location (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 20,633,019 | $ 20,213,250 | $ 19,675,285 | $ 18,554,556 | $ 19,206,777 | $ 18,850,801 | $ 18,138,940 | $ 16,964,672 | $ 79,076,110 | $ 73,161,190 | $ 67,109,920 |
Total long-lived assets | 9,370,104 | 9,978,255 | 9,370,104 | 9,978,255 | |||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 59,905,306 | 57,586,112 | 55,372,259 | ||||||||
Total long-lived assets | 8,535,281 | 8,881,844 | 8,535,281 | 8,881,844 | |||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 19,170,804 | 15,575,078 | $ 11,737,661 | ||||||||
Total long-lived assets | $ 834,823 | $ 1,096,411 | $ 834,823 | $ 1,096,411 | |||||||
Sales Revenue, Net [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration Risk, Percentage | 11.00% | 10.00% | |||||||||
Sales Revenue, Net [Member] | Non-US [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration Risk, Percentage | 10.00% |
Acquisition - (Details)
Acquisition - (Details) - USD ($) | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Acquisition contingent consideration liability | $ 0 | $ 1,290,000 | |
Significant Unobservable Inputs (Level 3) | |||
Business Acquisition [Line Items] | |||
Acquisition contingent consideration liability | $ 1,290,000 | ||
ecVision, Inc. | Continued Employment | |||
Business Acquisition [Line Items] | |||
Maximum earnout payment | $ 3,675,000 |
Acquisition Pro Forma Informati
Acquisition Pro Forma Information (Details) - ecVision, Inc. | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Pro Forma Revenue (unaudited) | $ 69,060,082 |
Proforma Net Loss (unaudited) | $ (29,514,360) |
Consolidated Balance Sheet Co47
Consolidated Balance Sheet Components - Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 32,565,723 | $ 34,882,080 | |
Less: accumulated depreciation and amortization | (23,195,619) | (24,903,825) | |
Total property and equipment, net | 9,370,104 | 9,978,255 | |
Depreciation and amortization | 4,271,381 | 5,068,786 | $ 6,268,537 |
Computer software and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 14,296,247 | 15,053,746 | |
Software development costs | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 13,980,872 | 14,938,090 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 1,741,918 | 1,959,854 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 2,546,686 | $ 2,930,390 |
Consolidated Balance Sheet Co48
Consolidated Balance Sheet Components - Capitalized Software (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized software costs during the period | $ 1,458,495 | $ 2,286,778 | $ 1,926,302 |
Amortization of capitalized software | 2,143,039 | 1,970,150 | $ 2,789,481 |
Capitalized software, net | $ 824,738 | $ 984,568 | |
Software Development | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years |
Consolidated Balance Sheet Co49
Consolidated Balance Sheet Components - Accrued Expenses (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheet Components [Abstract] | ||
Accrued bonus | $ 1,980,218 | $ 2,717,625 |
Accrued commission | 1,901,132 | 4,188,006 |
Deferred rent | 380,077 | 263,404 |
Accrued professional fees | 712,345 | 917,144 |
Accrued taxes | 805,555 | 549,740 |
Accrued contingent consideration and acquisition compensation | 0 | 3,647,475 |
Other accrued expenses | 1,810,155 | 1,843,910 |
Total | $ 7,589,482 | $ 14,127,304 |
Consolidated Balance Sheet Co50
Consolidated Balance Sheet Components - Deferred Revenue (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current: | ||
Deferred revenue current | $ 37,812,239 | $ 34,464,264 |
Noncurrent: | ||
Deferred revenue, noncurrent | 1,830,706 | 2,135,620 |
Deferred revenue, total | 39,642,945 | 36,599,884 |
Subscription revenue | ||
Current: | ||
Deferred revenue current | 35,247,750 | 32,833,795 |
Noncurrent: | ||
Deferred revenue, noncurrent | 412,608 | 386,206 |
Professional services revenue | ||
Current: | ||
Deferred revenue current | 2,564,489 | 1,630,469 |
Noncurrent: | ||
Deferred revenue, noncurrent | $ 1,418,098 | $ 1,749,414 |
Goodwill and Other Intangible51
Goodwill and Other Intangibles - (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 12,453,641 | $ 12,505,619 |
Less: accumulated amortization | (7,453,756) | (6,356,799) |
Other intangibles, net | 4,999,885 | 6,148,820 |
Acquired technology | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 6,317,600 | 6,317,600 |
Customer related intangibles | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 3,960,200 | 3,960,200 |
Contract backlog | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 940,400 | 940,400 |
Trademarks and licenses | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 1,193,700 | 1,193,700 |
Patents and other | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 41,741 | $ 93,719 |
Minimum | Acquired technology | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Minimum | Customer related intangibles | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Minimum | Trademarks and licenses | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum | Acquired technology | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 8 years | |
Maximum | Customer related intangibles | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Maximum | Contract backlog | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Maximum | Trademarks and licenses | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | |
Maximum | Patents and other | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years 3 months 18 days |
Goodwill and Other Intangible52
Goodwill and Other Intangibles - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1,115,408 | $ 1,521,557 | $ 1,307,246 |
Goodwill and Other Intangible53
Goodwill and Other Intangibles - Future Amortization Expense (Details) | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 1,037,972 |
2,018 | 1,031,203 |
2,019 | 929,606 |
2,020 | 879,600 |
2,021 | 809,719 |
2023 and thereafter | 271,785 |
Finite-lived intangible assets, net | $ 4,959,885 |
Goodwill and Other Intangible54
Goodwill and Other Intangibles - Goodwill Rollforward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, beginning balance | $ 43,907,017 | $ 43,913,185 |
2017 activity | (138,748) | (6,168) |
Goodwill, ending balance | $ 43,768,269 | $ 43,907,017 |
Income Taxes Components of Curr
Income Taxes Components of Current Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss before income taxes: | |||
Loss before income taxes, domestic | $ (10,156,858) | $ (14,562,851) | $ (21,560,050) |
Loss before income taxes, foreign | (2,211,853) | (3,568,153) | (6,250,399) |
Loss before income taxes | (12,368,711) | (18,131,004) | (27,810,449) |
Current provision: | |||
Current provision, federal | 0 | 0 | 60,773 |
Current provision, state | 39,396 | 735 | 27,438 |
Current provision, foreign | 569,379 | 594,987 | 372,394 |
Current provision | 608,775 | 595,722 | 460,605 |
Deferred provision: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | 0 | 0 | (192,380) |
Deferred Provision | $ 0 | $ 0 | $ (192,380) |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal tax rate (benefit) | (35.00%) | (35.00%) | (35.00%) |
State income taxes, net of federal benefit | 0.10% | 0.10% | 0.10% |
Foreign taxes | 6.50% | 4.30% | 5.60% |
Stock-based compensation | (1.60%) | (3.30%) | 0.10% |
Acquisition related expenses | 0.00% | 0.00% | 1.60% |
Effect of tax reform | 108.70% | 0.00% | 0.00% |
Change in valuation allowance | (77.00%) | 37.50% | 22.90% |
Non-deductible expenses and other | 3.20% | (0.30%) | 5.70% |
Effective tax rate | 4.90% | 3.30% | 1.00% |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current deferred tax asset: | ||
Accrued bonuses | $ 393,274 | $ 888,022 |
Accounts receivable reserve | 72,147 | 154,230 |
Other | 145,826 | 350,887 |
Non-Current deferred tax asset: | ||
Deferred revenue | 1,048,179 | 1,410,565 |
NOLs | 24,720,025 | 33,611,543 |
Other | 3,411,274 | 4,238,400 |
Deferred tax assets | 29,790,725 | 40,653,647 |
Current deferred tax liability: | ||
Deferred commissions | (2,171,927) | (3,119,841) |
Deferred Tax Liabilities, Gross, Non-Current [Abstract] | ||
Intangibles | (635,723) | (814,819) |
Fixed assets | (1,619,083) | (2,481,104) |
Deferred Tax Liabilities, Other | (16,884) | (25,755) |
Deferred tax liabilities | (4,443,617) | (6,441,519) |
Less: valuation allowance | (25,347,108) | (34,212,128) |
Total | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 25,347,108 | $ 34,212,128 | |
Net change in the valuation allowance | (8,865,020) | 7,101,581 | |
Reduction of federal net operating loss carryforward | $ 1,200,000 | ||
Reduction in deferred tax assets related to net operating losses and other assets as a result of the Act | 13,400,000 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Federal net operating loss (NOL) carryforward | 90,901,000 | $ 82,141,000 | |
Net operating loss carryforwards expected to expire without utilization | $ 2,131,290 |
Leases - Operating Leases - (De
Leases - Operating Leases - (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 3,687,000 | $ 3,697,000 | $ 3,564,000 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating lease, renewal term | 3 years | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating lease, renewal term | 5 years |
Leases - Capital Leases - (Deta
Leases - Capital Leases - (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Leases [Abstract] | ||
Capital leased assets, carrying value | $ 2,691,383 | $ 2,159,850 |
Capital leases, accumulated depreciation | $ 6,864,443 | $ 5,524,216 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments - (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 1,565,706 | |
2,018 | 1,079,503 | |
2,019 | 367,274 | |
2,020 | 101,559 | |
2,021 | 55,132 | |
2023 and thereafter | 0 | |
Total minimum lease payments | 3,169,174 | |
Less amount representing interest | (355,617) | |
Present value of net minimum capital lease payments | 2,813,557 | |
Less current installments of obligations under capital leases | (1,352,456) | $ (1,155,964) |
Obligations under capital leases excluding current installments | 1,461,101 | $ 1,276,700 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,017 | 4,557,966 | |
2,018 | 4,138,827 | |
2,019 | 2,796,258 | |
2,020 | 1,801,713 | |
2,021 | 1,188,188 | |
2023 and thereafter | 618,474 | |
Total minimum lease payments | $ 15,101,426 |
Debt - Line of Credit - (Detail
Debt - Line of Credit - (Details) - USD ($) | Dec. 31, 2017 | Feb. 15, 2017 | Dec. 31, 2016 | Nov. 05, 2015 | Mar. 04, 2015 |
Line of Credit Facility [Line Items] | |||||
Outstanding balance | $ 13,625,000 | ||||
Revolving credit facility | 6,000,000 | $ 6,000,000 | |||
Line of Credit | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 15,000,000 | $ 10,000,000 | |||
Line of Credit | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 2,000,000 | ||||
Line of Credit | Secured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 20,000,000 | ||||
Outstanding balance | 13,553,783 | ||||
Unaccreted discount and deferred financing costs | $ 71,217 | ||||
London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Weighted average interest rate | 4.48% | ||||
Prime Rate | |||||
Line of Credit Facility [Line Items] | |||||
Weighted average interest rate | 5.52% |
Debt - Term Loan - (Details)
Debt - Term Loan - (Details) - USD ($) | Dec. 31, 2017 | Feb. 15, 2017 | Nov. 05, 2015 |
Debt Instrument [Line Items] | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | $ 750,000 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 12,875,000 | ||
Long-term Debt | $ 13,625,000 | ||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | $ 10,000,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) | 12 Months Ended | |
Dec. 31, 2017vote$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Common Stock | ||
Class of Stock [Line Items] | ||
Number of votes (vote) | vote | 1 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) | Dec. 31, 2017$ / sharesshares |
Equity [Abstract] | |
Preferred stock, shares authorized (in shares) | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - shares | 1 Months Ended | ||||
May 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 4,500,000 | ||||
Options outstanding (in shares) | 4,632,654 | 3,856,831 | 4,402,943 | 4,449,973 | |
2012 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options authorized (in shares) | 9,646,696 | ||||
Options outstanding (in shares) | 4,344,019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,141,931 | ||||
2002 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options authorized (in shares) | 4,939,270 | ||||
Options outstanding (in shares) | 288,635 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSU's outstanding (in shares) | 812,262 | 599,966 | 81,977 | 109,309 | |
Restricted Stock Units (RSUs) | 2012 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSU's outstanding (in shares) | 812,262 | ||||
Restricted Stock Units (RSUs) | 2002 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSU's outstanding (in shares) | 0 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSU's outstanding (in shares) | 466,499 | 280,247 | 310,545 | 0 | |
Performance Shares [Member] | 2012 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSU's outstanding (in shares) | 466,499 | ||||
Performance Shares [Member] | 2002 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSU's outstanding (in shares) | 0 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.92% | 1.29% | 1.71% |
Expected volatility | 32.66% | 33.62% | 38.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected life (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Weighted average fair value of options granted (USD per share) | $ 2.82 | $ 1.32 | $ 3.28 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-Based Compensation Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options Outstanding | |||
Balance at beginning of period (in shares) | 3,856,831 | 4,402,943 | 4,449,973 |
Options granted (in shares) | 1,050,654 | 248,728 | 1,028,850 |
Options exercised (in shares) | (107,526) | (646,639) | (462,703) |
Options canceled (in shares) | (59,341) | (85,287) | (490,113) |
Options expired (in shares) | (107,964) | (62,914) | (123,064) |
Balance at end of period (in shares) | 4,632,654 | 3,856,831 | 4,402,943 |
Weighted Average Exercise Price | |||
Balance at beginning of period, outstanding options, weighted average exercise price (in dollars per share) | $ 9.99 | $ 9.38 | $ 9 |
Options granted, weighted average exercise price (in dollars per share) | 7.86 | 3.74 | 8.05 |
Options exercised, weighted average exercise price (in dollars per share) | 2.92 | 2.92 | 2.81 |
Options canceled, weighted average exercise price (in dollars per share) | 9.94 | 9.04 | 9.84 |
Options expired, weighted average exercise price (in dollars per share) | 11.11 | 5.77 | 7.56 |
Balance at end of period, outstanding options, weighted average exercise price (in dollars per share) | $ 9.79 | $ 9.99 | $ 9.38 |
Stock-Based Compensation - Add
Stock-Based Compensation - Additional 2012 Plan Disclosures (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average exercise price of fully vested options (in dollars per share) | $ 10.43 | $ 9.99 |
Weighted average remaining term of fully vested options | 6 years 4 months 24 days | 7 years 4 months 24 days |
Total unrecognized compensation cost related to non-vested stock options | $ 5,116,640 | $ 6,868,787 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 415,374 | $ 3,933,518 |
Weighted average period to recognize compensation cost related to non-vested stock options | 2 years 1 month 6 days | 1 year 8 months 12 days |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards available for future grant under the 2012 Plan (in shares) | 3,141,931 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding and Exercisable by Exercise Price (Details) | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 4,632,654 |
Outstanding, aggregate intrinsic value | $ | $ 2,693,997 |
Number of exercisable options (in shares) | shares | 2,826,116 |
Exercisable options, aggregate intrinsic value | $ | $ 2,093,194 |
$2.31 - $3.74 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 503,708 |
Options outstanding average remaining contractual life | 5 years 7 months 6 days |
Outstanding, aggregate intrinsic value | $ | $ 2,226,096 |
Number of exercisable options (in shares) | shares | 374,730 |
Exercisable options, weighted average term remaining | 4 years 9 months 18 days |
Exercisable options, aggregate intrinsic value | $ | $ 1,761,776 |
$4.13 - $7.20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 773,039 |
Options outstanding average remaining contractual life | 8 years 3 months 18 days |
Outstanding, aggregate intrinsic value | $ | $ 467,901 |
Number of exercisable options (in shares) | shares | 214,808 |
Exercisable options, weighted average term remaining | 5 years 8 months 12 days |
Exercisable options, aggregate intrinsic value | $ | $ 331,418 |
$8.07 - $12.62 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 1,321,149 |
Options outstanding average remaining contractual life | 8 years |
Outstanding, aggregate intrinsic value | $ | $ 0 |
Number of exercisable options (in shares) | shares | 583,356 |
Exercisable options, weighted average term remaining | 7 years |
Exercisable options, aggregate intrinsic value | $ | $ 0 |
$13.00 - $15.90 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 2,034,758 |
Options outstanding average remaining contractual life | 6 years 7 months 6 days |
Outstanding, aggregate intrinsic value | $ | $ 0 |
Number of exercisable options (in shares) | shares | 1,653,222 |
Exercisable options, weighted average term remaining | 6 years 7 months 6 days |
Exercisable options, aggregate intrinsic value | $ | $ 0 |
Minimum | $2.31 - $3.74 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | $ 2.31 |
Minimum | $4.13 - $7.20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 4.13 |
Minimum | $8.07 - $12.62 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 8.07 |
Minimum | $13.00 - $15.90 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 13 |
Maximum | $2.31 - $3.74 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 3.74 |
Maximum | $4.13 - $7.20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 7.20 |
Maximum | $8.07 - $12.62 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 12.62 |
Maximum | $13.00 - $15.90 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | $ 15.90 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Performance Shares [Member] | |||
Number of RSU's Outstanding | |||
Balance at beginning of period (in shares) | 280,247 | 310,545 | 0 |
Granted (in shares) | 198,440 | 0 | 350,546 |
Vested (in shares) | 0 | 0 | 0 |
Canceled (in shares) | (12,188) | (30,298) | (40,001) |
Balance at end of period (in shares) | 466,499 | 280,247 | 310,545 |
Restricted Stock Units (RSUs) and Performance Shares [Member] | |||
Number of RSU's Outstanding | |||
Balance at beginning of period (in shares) | 880,213 | 392,522 | 109,309 |
Granted (in shares) | 792,020 | 666,018 | 463,852 |
Vested (in shares) | (343,146) | (83,377) | (140,638) |
Canceled (in shares) | (50,326) | (94,950) | (40,001) |
Balance at end of period (in shares) | 1,278,761 | 880,213 | 392,522 |
Weighted Average Grant Date Fair Value | |||
Balance at beginning of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 5.20 | $ 8.07 | $ 15.27 |
Weighted Average Grant Date Fair Value (in dollars per share) | 8.29 | 3.91 | 8.13 |
Vested in Period, Weighted Average Grant Date Fair Value (in dollars per share) | 3.84 | 8.11 | 13.89 |
Canceled (in dollars per share) | 6.87 | 5.44 | 8.08 |
Balance at end of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 7.41 | $ 5.20 | $ 8.07 |
Unrecognized stock-based compensation expense | $ 6,168,325 | ||
Weighted average period to recognize compensation cost related to non-vested stock options | 2 years 9 months 18 days | ||
Restricted Stock Units (RSUs) | |||
Number of RSU's Outstanding | |||
Balance at beginning of period (in shares) | 599,966 | 81,977 | 109,309 |
Granted (in shares) | 593,580 | 666,018 | 113,306 |
Vested (in shares) | (343,146) | (83,377) | (140,638) |
Canceled (in shares) | (38,138) | (64,652) | 0 |
Balance at end of period (in shares) | 812,262 | 599,966 | 81,977 |
Minimum | Performance Shares [Member] | |||
Weighted Average Grant Date Fair Value | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
Maximum [Member] | Performance Shares [Member] | |||
Weighted Average Grant Date Fair Value | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 500.00% |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic and diluted net loss per share: | |||||||||||
Net loss | $ (12,977,486) | $ (18,726,726) | $ (28,078,674) | ||||||||
Weighted average shares used in computing net loss (in shares) | 27,415,953 | 26,718,882 | 26,152,301 | ||||||||
Basic and diluted net loss per share (in dollars per share) | $ (0.07) | $ (0.08) | $ (0.16) | $ (0.16) | $ (0.17) | $ (0.14) | $ (0.18) | $ (0.22) | $ (0.47) | $ (0.70) | $ (1.07) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 5,911,415 | 4,737,044 | 4,795,465 |
Stock options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 4,632,654 | 3,856,831 | 4,402,943 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 1,278,761 | 880,213 | 392,522 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Chief Executive Officer | 12 Months Ended | 24 Months Ended |
Dec. 31, 2017 | Mar. 03, 2016 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Period of successive extensions | 2 years | |
Deferred Compensation Arrangement with Individual, Written Notice, Period Prior to End of Current Term | 6 months | |
Agreement covenant, noncompete agreement, period post employment | 24 months | 12 months |
Quarterly Results of Operatio75
Quarterly Results of Operations (unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 20,633,019 | $ 20,213,250 | $ 19,675,285 | $ 18,554,556 | $ 19,206,777 | $ 18,850,801 | $ 18,138,940 | $ 16,964,672 | $ 79,076,110 | $ 73,161,190 | $ 67,109,920 |
Gross profit | 11,354,317 | 11,062,248 | 9,765,196 | 9,152,782 | 10,331,187 | 10,040,282 | 9,106,224 | 7,947,096 | 41,334,543 | 37,424,789 | 30,215,880 |
Net loss | $ (1,809,116) | $ (2,237,703) | $ (4,517,471) | $ (4,413,196) | $ (4,508,908) | $ (3,791,250) | $ (4,740,385) | $ (5,686,183) | $ (12,977,486) | $ (18,726,726) | $ (28,078,674) |
Basic and diluted (in dollars per share) | $ (0.07) | $ (0.08) | $ (0.16) | $ (0.16) | $ (0.17) | $ (0.14) | $ (0.18) | $ (0.22) | $ (0.47) | $ (0.70) | $ (1.07) |