Appgate (APGT) 10-Q/A 28 Dec 22 2022 Q2 Quarterly report (amended) Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 09, 2022
Cover [Abstract]
Document Type	10-Q/A
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	000-52776
Entity Registrant Name	Appgate, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-3547231
Entity Address, Address Line One	2 Alhambra Plaza
Entity Address, Address Line Two	Suite PH-1-B
Entity Address, City or Town	Coral Gables
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33134
City Area Code	866
Local Phone Number	524-4782
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		131,793,660
Entity Central Index Key	0001353538
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	true
Current Fiscal Year End Date	--12-31
Amendment Description	EXPLANATORY NOTEAppgate, Inc., a Delaware corporation (“we”, “us”, “our”, the “Company” or “Appgate”), is filing this Amendment No. 1 on Form 10-Q/A (this “Amendment”) to amend and restate certain items in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 originally filed with the Securities and Exchange Commission (the “SEC”) on August 11, 2022 (the “Original 10-Q”, and, as amended by this Amendment, the “Quarterly Report”) to reflect the restatement of the Company’s financial statements as of and for the quarter ended June 30, 2022 contained in the Original 10-Q (the “Restatement”). Background of RestatementAs previously reported on November 8, 2022, the Company determined that certain of the Company’s previously filed interim unaudited and annual audited financial statements should no longer be relied upon and that the Company needed to restate these previously issued financial statements. The Company concluded that the restatement was necessary to correct (i) its accounting for revenue recognition, specifically the allocation of standalone selling price on sales of software through term-based license agreements, (ii) the amortization pattern in accounting for incremental costs to obtain a contract with a customer, (iii) its disclosures of diluted earnings (loss) per share, and (iv) its equity-based compensation expense. For a more detailed description of the financial impact of the Restatement, see Note 1 – Restatement of Previously Issued Financial Statements, to the unaudited condensed consolidated financial statements contained in this Amendment and “Restatement of Previously Issued Financial Statements” under Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contained in this Amendment. Internal Control ConsiderationsIn connection with the Company’s review of its financial statements leading to the Restatement, the Company’s management identified material weaknesses in its internal control over financial reporting, which were previously identified in connection with, and disclosed in, the Company’s Amendment No. 1 to its Annual Report on Form 10-K/A for the year ended December 31, 2021 filed with the SEC on December 28, 2022 (the “Amended 10-K”) and the Company’s Amendment No. 1 to its Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2022 filed with the SEC on December 28, 2022 (the “Amended Q1 10-Q”). A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented or detected and corrected on a timely basis. Therefore, the Company’s management concluded that material weaknesses remain in the Company’s internal control over financial reporting and that the Company’s disclosure controls and procedures were not effective as of June 30, 2022. For further information regarding the effectiveness of the Company’s disclosure controls and procedures, see Part I, Item 4, “Controls and Procedures”, included in this Amendment.Items AmendedThe following items are amended and restated in their entireties in this Amendment: (i) Part I, Item 1, “Financial Statements”; Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”; and Item 4, “Controls and Procedures”; and (ii) Part II, Item 1A, “Risk Factors” and Item 6, “Exhibits”.Pursuant to Rule 12b-15 promulgated under the Securities Act of 1934, as amended (the “Exchange Act”), this Amendment also contains new certifications by our principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002.Except as described above, this Amendment does not amend, update or change any other disclosures in the Original 10-Q. In addition, other than the amendment and restatement of Note 19 - Subsequent Events in Part I, Item 1, “Financial Statements,” the information contained in this Amendment does not reflect events occurring after the filing of the Original 10-Q and does not modify or update the disclosures therein. Among other things, forward-looking statements made in the Original 10-Q have not been revised to reflect events, results or developments that occurred or facts that became known to us after the date of the Original 10-Q, other than with respect to the Restatement, and such forward-looking statements should be read in conjunction with our filings with the SEC, including those subsequent to the filing of the Original 10-Q. Unless otherwise stated or unless the context otherwise requires, defined terms used throughout this Amendment have the meanings ascribed to them in the Original 10-Q. Substantially concurrently with the filing of this Amendment, the Company is filing the Amended 10-K and an amendment to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 9,100	$ 25,990
Restricted cash	1,473	1,473
Accounts receivable, net of allowance of $211 and $163, respectively	6,712	6,848
Contract assets	1,431	1,458
Deferred contract acquisition costs, current	1,413	1,319
Prepaid and other current assets	3,583	6,196
Total current assets	23,712	43,284
Property and equipment, net	2,113	2,115
Operating lease right-of-use assets	2,106	2,497
Contract assets, noncurrent	9,107	8,630
Deferred contract acquisition costs, noncurrent	3,197	2,986
Goodwill	71,604	71,604
Intangible assets, net	30,605	36,459
Deferred income taxes	507	863
Other assets	447	147
Total assets	143,398	168,585
Current liabilities:
Accounts payable	3,840	4,483
Accrued expenses	11,813	12,193
Operating lease liabilities, current	714	798
Deferred revenue, current	6,234	5,274
Revolving credit facility	21,000	0
Total current liabilities	43,601	22,748
Deferred revenue, noncurrent	908	717
Operating lease liabilities, noncurrent	1,619	1,891
Convertible senior notes, net	73,360	72,968
Derivative liability	32,620	78,497
Total liabilities	152,108	176,821
Commitments and contingencies (Note 12)
Stockholders’ deficit:
Preferred stock, $0.001 par value per share; 1,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value per share; 270,000,000 shares authorized; 131,793,660 shares issued and outstanding at June 30, 2022 and December 31, 2021	132	132
Additional paid-in capital	516,974	509,586
Accumulated other comprehensive loss	(2,146)	(1,985)
Accumulated deficit	(523,670)	(515,969)
Total stockholders’ deficit	(8,710)	(8,236)
Total liabilities and stockholders’ deficit	$ 143,398	$ 168,585

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 211	$ 163
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	270,000,000	270,000,000
Common stock, shares, issued (in shares)	131,793,660	131,793,660
Common stock, shares, outstanding (in shares)	131,793,660	131,793,660

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenue	$ 11,129		$ 9,397		$ 22,207	$ 19,434
Cost of revenue, exclusive of amortization shown below	5,294		4,169		9,792	7,747
Amortization expense	954		1,131		1,908	2,262
Total cost of revenue	6,248		5,300		11,700	10,009
Gross profit	4,881		4,097		10,507	9,425
Operating expenses:
Sales and marketing	15,905		9,814		28,141	17,351
Research and development	4,100		2,723		7,434	4,920
General and administrative	9,595		4,624		18,057	7,974
Transaction costs	2,059		43		2,059	373
Depreciation and amortization	1,377		1,352		2,746	2,693
Loss on abandonment of assets	0		0		1,658	0
Total operating expenses	33,036		18,556		60,095	33,311
Loss from continuing operations	(28,155)		(14,459)		(49,588)	(23,886)
Change in fair value of embedded derivative liability	92,020		0		45,877	0
Interest expense, net	(1,343)		(643)		(2,474)	(1,476)
Other expenses, net	(276)		(93)		(380)	(219)
Income (loss) from continuing operations before income taxes	62,246		(15,195)		(6,565)	(25,581)
Income tax expense of continuing operations	(845)		(592)		(1,136)	(1,004)
Net income (loss) from continuing operations	61,401		(15,787)		(7,701)	(26,585)
Net income from discontinued operations, net of tax	0		0		0	65,689
Net income (loss)	$ 61,401	$ (69,102)	$ (15,787)	$ 54,891	$ (7,701)	$ 39,104
Income (loss) per share:
Net income (loss) from continuing operations per share of common stock - basic (in dollars per share)	$ 0.47		$ (1.08)		$ (0.06)	$ (1.87)
Net loss from continuing operations per share of common stock - diluted (in dollars per share)	(0.21)		(1.08)		(0.38)	(1.87)
Net income from discontinued operations per share of common stock - basic (in dollars per share)	0		0		0	4.62
Net income from discontinued operations per share of common stock - diluted (in dollars per share)	$ 0		$ 0		$ 0	$ 4.62
Weighted-average shares used in computation - basic (in shares)	131,793,660		14,643,740		131,793,660	14,207,989
Weighted-average shares used in computation - diluted (in shares)	142,776,465		14,643,740		142,776,465	14,207,989

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 61,401	$ (15,787)	$ (7,701)	$ 39,104
Other comprehensive loss:
Change in foreign currency translation	(379)	(1,079)	(218)	(244)
Other comprehensive loss	(379)	(1,079)	(218)	(244)
Comprehensive income (loss)	$ 61,022	$ (16,866)	$ (7,919)	$ 38,860

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Total	Preferred stock	Common stock	Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2020		0	13,757,550
Beginning balance at Dec. 31, 2020	$ 28,192	$ 0	$ 14	$ 471,687	$ (668)	$ (442,841)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	950			950
Stock issued by Newtown for the exercise of stock options (in shares)			886,190
Stock issued by Newtown for the exercise of stock options	0		$ 1	(1)
Transactions with former Parent	36,241			36,241
Net income (loss)	54,891					54,891
Other comprehensive income	782				782
Ending balance (in shares) at Mar. 31, 2021		0	14,643,740
Ending balance at Mar. 31, 2021	121,056	$ 0	$ 15	508,877	114	(387,950)
Beginning balance (in shares) at Dec. 31, 2020		0	13,757,550
Beginning balance at Dec. 31, 2020	28,192	$ 0	$ 14	471,687	(668)	(442,841)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	39,104
Other comprehensive income	(244)
Ending balance (in shares) at Jun. 30, 2021		0	14,643,740
Ending balance at Jun. 30, 2021	105,147	$ 0	$ 15	509,834	(965)	(403,737)
Beginning balance (in shares) at Mar. 31, 2021		0	14,643,740
Beginning balance at Mar. 31, 2021	121,056	$ 0	$ 15	508,877	114	(387,950)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	957			957
Net income (loss)	(15,787)					(15,787)
Other comprehensive income	(1,079)				(1,079)
Ending balance (in shares) at Jun. 30, 2021		0	14,643,740
Ending balance at Jun. 30, 2021	105,147	$ 0	$ 15	509,834	(965)	(403,737)
Beginning balance (in shares) at Dec. 31, 2021		0	131,793,660
Beginning balance at Dec. 31, 2021	(8,236)	$ 0	$ 132	509,586	(1,985)	(515,969)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	3,725			3,725
Net income (loss)	(69,102)					(69,102)
Other comprehensive income	218				218
Ending balance (in shares) at Mar. 31, 2022		0	131,793,660
Ending balance at Mar. 31, 2022	(73,395)	$ 0	$ 132	513,311	(1,767)	(585,071)
Beginning balance (in shares) at Dec. 31, 2021		0	131,793,660
Beginning balance at Dec. 31, 2021	(8,236)	$ 0	$ 132	509,586	(1,985)	(515,969)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(7,701)
Other comprehensive income	(218)
Ending balance (in shares) at Jun. 30, 2022		0	131,793,660
Ending balance at Jun. 30, 2022	(8,710)	$ 0	$ 132	516,974	(2,146)	(523,670)
Beginning balance (in shares) at Mar. 31, 2022		0	131,793,660
Beginning balance at Mar. 31, 2022	(73,395)	$ 0	$ 132	513,311	(1,767)	(585,071)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	3,663			3,663
Net income (loss)	61,401					61,401
Other comprehensive income	(379)				(379)
Ending balance (in shares) at Jun. 30, 2022		0	131,793,660
Ending balance at Jun. 30, 2022	$ (8,710)	$ 0	$ 132	$ 516,974	$ (2,146)	$ (523,670)

Unaudited Condensed Consolida_6

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 61,401	$ (69,102)	$ (15,787)	$ 54,891	$ (7,701)	$ 39,104
Net income from discontinued operations, including gain on sale of $64.6 million, net of tax in 2021					0	(65,689)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization					4,654	4,955
Loss on abandonment of assets	0		0		1,658	0
Equity-based compensation					7,388	1,967
Amortization of deferred contract acquisition costs					3,462	2,510	$ 5,333
Change in fair value of embedded derivative liability	(92,020)		0		(45,877)	0
Amortization of debt issuance costs	198		16		393	25
Operating lease amortization					151	134
Provision for (Reversal of) allowance for doubtful accounts					368	(52)	(95)
Deferred income taxes					346	(553)
Changes in assets and liabilities:
Accounts receivable					(297)	(3,388)
Contract assets					(450)	(3,695)
Prepaid and other current assets					2,537	(2,590)
Due from affiliates, net					0	3,252
Deferred contract acquisition costs					(3,302)	(768)
Other assets					0	5
Accounts payable					(655)	(3,785)
Accrued expenses					(428)	(3,640)
Deferred revenue					1,229	1,167
Other current liabilities					0	(11)
Net cash, cash equivalents and restricted cash used in operating activities of continuing operations					(36,524)	(31,052)
Net cash, cash equivalents and restricted cash provided by operating activities of discontinued operations					0	1,166
Net cash, cash equivalents and restricted cash used in operating activities					(36,524)	(29,886)
Cash flows from investing activities:
Purchases of property and equipment					(504)	(467)
Net cash, cash equivalents and restricted cash used in investing activities of continuing operations					(504)	(467)
Net cash, cash equivalents and restricted cash provided by investing activities of discontinued operations					0	125,022
Net cash, cash equivalents and restricted cash (used in) provided by investing activities					(504)	124,555
Cash flows from financing activities:
Proceeds from revolving credit facility					21,000	0
Proceeds from convertible senior notes					0	50,000
Payment of debt issuance costs					0	(180)
Repayment of Promissory Notes					0	(119,640)
Repayment of finance leases					0	(12)
Net cash, cash equivalents and restricted cash provided by (used in) financing activities of continuing operations					21,000	(69,832)
Effect of foreign currency exchange rates on cash					(862)	4,088
Net (decrease) increase in cash, cash equivalents and restricted cash					(16,890)	28,925
Cash, cash equivalents and restricted cash at beginning of period		$ 27,463		$ 5,621	27,463	5,621	5,621
Cash, cash equivalents and restricted cash at end of period	10,573		34,546		10,573	34,546	27,463
Cash and cash equivalents	9,100		33,109		9,100	33,109	25,990
Restricted cash	1,473		1,437		1,473	1,437	$ 1,473
Cash, cash equivalents and restricted cash of continuing operations at end of period	$ 10,573		$ 34,546		10,573	34,546
Supplemental cash flow information:
Cash paid for interest					1,628	1,092
Cash paid for income taxes, net of refunds					1,064	914
Non-cash increase to paid-in capital as a result of settlement of transactions with former Parent					$ 0	$ 36,241

Unaudited Condensed Consolida_7

Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Statement of Cash Flows [Abstract]
Gain on the disposal of the discontinued operation	$ 64.6

Restatement of Previously Issue

Restatement of Previously Issued Financial Statements	6 Months Ended
	Jun. 30, 2022
Accounting Changes and Error Corrections [Abstract]
Restatement of Previously Issued Financial Statements	Restatement of Previously Issued Financial Statements Background to Restatement The accompanying unaudited condensed consolidated financial statements have been restated as a result of the following accounting errors, all of which are further described below: (i) accounting for revenue recognition, specifically the allocation of standalone selling price on sales of software through term-based license agreements; (ii) the amortization pattern in accounting for incremental costs to obtain a contract with a customer; and (iii) equity-based compensation expense. Appgate, Inc. (“Appgate”, the “Company”, “we”, “us”, or “our”) announced its decision to restate these financial statements on November 8, 2022. • Revenue Recognition – Allocation of Standalone Selling Price – We recognize revenue under the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 606, Accounting from Contracts with Customers (“ASC 606”) . Under ASC 606, we recognize revenue when our customers obtain control of goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. We primarily sell our software through on-premise term-based license agreements, perpetual license agreements and software as a service (“SaaS”) subscriptions, which allow our customers to use our SaaS services without taking possession of the software. Our agreements with customers for software licenses may include maintenance contracts and may also include professional services contracts. We have determined that our sales contracts for term-based license agreements contain multiple distinct performance obligations (i.e., obligation to deliver the software license and the obligation to provide support and maintenance over the term of the agreement). In accounting for those arrangements, we allocate the transaction price to each performance obligation based on a relative standalone selling price (“SSP”). We determine the transaction price with reference to the SSP of the various performance obligations inherent within a contract. We corrected our accounting estimate for SSP as it relates to term-based license arrangements, specifically the estimate used to allocate the transaction price between the license and the support and maintenance obligations in term-based license agreements (the “Revenue Recognition Error”). The change in the allocation estimate results in more transaction price being allocated to the support and maintenance portion of multi-year term-based license agreements, which changes our periodic recognition of revenue under these agreements. The effect of the Revenue Recognition Error was as follows: – overstatement of revenue of $0.4 million for the three months ended June 30, 2022; – overstatement of contract assets of $4.0 million as of June 30, 2022; – understatement of deferred revenue of $0.3 million as of June 30, 2022; and – understatement of accumulated deficit of $3.8 million as of June 30, 2022. • Incremental Costs to Obtain a Contract with a Customer – Amortization Pattern – We capitalize incremental costs associated with obtaining customer contracts, specifically certain commission payments, and incur commission expense on an ongoing basis. We corrected the pattern of amortization of these deferred costs to allocate the combined commission asset to the individual performance obligations and amortize each respective portion based on the pattern of performance for the underlying performance obligation (the “Amortization Error”). Prior to the change, commission expense was expensed ratably over five years. The change in the pattern of amortization of deferred contract acquisition costs accelerates the recognition of commission expense. The effect of the Amortization Error was as follows: – understatement of sales and marketing expenses of $0.8 million for the three months ended June 30, 2022; – overstatement of deferred contract acquisition costs of $9.3 million as of June 30, 2022; – understatement of accumulated deficit of $9.9 million as of June 30, 2022; and – understatement of accumulated other comprehensive loss of $30 thousand as of June 30, 2022. • Equity-based Compensation – In 2022, our Board of Directors (or a designee thereof) granted certain long-term incentive awards to executives, employees, officers and consultants of the Company (or a subsidiary thereof), which are subject to vesting criteria. Generally, we concluded that the awards were performance-based awards and that the vesting criteria was not probable and therefore, no expense had been incurred on these grants. However, the award to our Executive Chairman and Chairman of our Board (the “Chairman Award”) contained different vesting criteria, and upon further review, we concluded that the Chairman Award was a time-based award (rather than a performance-based award), for which we should have recognized compensation expense throughout 2022 (the “Equity Compensation Error”). The effect of the Equity Compensation Error was as follows: – understatement of general and administrative expenses by $3.6 million for the three-months ended June 30, 2022; – overstatement of additional paid-in capital by $7.2 million as of June 30, 2022; and – understatement of accumulated deficit of $7.2 million as of June 30, 2022. The errors did not have an impact on the Company’s net cash or liquidity. As a result of the corrections reflected in the restatement, our income tax expense for the three months ended June 30, 2022 was increased by approximately $0.1 million, primarily from changes in deferred taxes. See Note 16, Income Taxes, for additional details regarding income taxes. Following are the reconciliations of previously reported to restated figures (in thousands, except share and per share information): (As Reported) (As Restated) June 30, 2022 Adjustments June 30, 2022 ASSETS Current assets: Cash and cash equivalents $ 9,100 $ — $ 9,100 Restricted cash 1,473 — 1,473 Accounts receivable, net of allowance 6,712 — 6,712 Contract assets 1,561 (130) (a) 1,431 Deferred contract acquisition costs, current 3,914 (2,501) (b) 1,413 Prepaid and other current assets 3,583 — 3,583 Total current assets 26,343 (2,631) 23,712 Property and equipment, net 2,113 — 2,113 Operating lease right-of-use assets 2,106 — 2,106 Contract assets, noncurrent 12,972 (3,865) (a) 9,107 Deferred contract acquisition costs, noncurrent 9,965 (6,768) (b) 3,197 Goodwill 71,604 — 71,604 Intangible assets, net 30,605 — 30,605 Deferred income taxes 603 (96) (d) 507 Other assets 447 — 447 Total assets $ 156,758 $ (13,360) $ 143,398 LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT) Current liabilities: Accounts payable $ 3,840 $ — $ 3,840 Accrued expenses 11,852 (39) (d) 11,813 Operating lease liabilities, current 714 — 714 Deferred revenue, current 6,264 (30) (a) 6,234 Revolving credit facility 21,000 — 21,000 Total current liabilities 43,670 (69) 43,601 Deferred revenue, noncurrent 623 285 (a) 908 Operating lease liabilities, noncurrent 1,619 — 1,619 Convertible senior notes, net 73,360 — 73,360 Embedded derivative liability 32,620 — 32,620 Total liabilities 151,892 216 152,108 Stockholders' equity (deficit): Preferred stock — — — Common stock 132 — 132 Additional paid-in capital 509,810 7,164 (c) 516,974 Accumulated other comprehensive loss (2,116) (30) (a) (2,146) Accumulated deficit (502,960) (20,710) (a), (b), (c), (d) (523,670) Total stockholders' equity (deficit) 4,866 (13,576) (8,710) Total liabilities and stockholders' equity (deficit) $ 156,758 $ (13,360) $ 143,398 (As Reported) (As Restated) Three Months Ended Adjustments Three Months Ended Revenue $ 11,512 $ (383) (a) $ 11,129 Cost of revenue, exclusive of amortization shown below 5,294 — 5,294 Amortization expense 954 — 954 Total cost of revenue 6,248 — 6,248 Gross profit 5,264 (383) 4,881 Operating expenses: Sales and marketing 15,143 762 (b) 15,905 Research and development 4,100 — 4,100 General and administrative 5,976 3,619 (c) 9,595 Transaction costs 2,059 — 2,059 Depreciation and amortization 1,377 — 1,377 Loss on abandonment of assets — — — Total operating expenses 28,655 4,381 33,036 Loss from continuing operations (23,391) (4,764) (28,155) Change in fair value of embedded derivative liability 92,020 — 92,020 Interest expense, net (1,343) — (1,343) Other expenses, net (276) — (276) Income (loss) from continuing operations before income taxes 67,010 (4,764) 62,246 Income tax expense of continuing operations (744) (101) (d) (845) Net income (loss) from continuing operations 66,266 (4,865) 61,401 Net income from discontinued operations, net of tax — — — Net income (loss) $ 66,266 $ (4,865) $ 61,401 Income (loss) per share: Net income (loss) from continuing operations per share of common stock - basic $ 0.50 $ (0.03) $ 0.47 Net loss from continuing operations per share of common stock - diluted $ (0.18) $ (0.03) $ (0.21) Weighted-average shares used in computation: Basic 131,793,660 — 131,793,660 Diluted 142,776,465 — 142,776,465 (As Reported) (As Restated) Six Months Ended Adjustments Six Months Ended Cash flows from operating activities: Net income $ 1,672 $ (9,373) $ (7,701) Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 4,654 — 4,654 Loss on abandonment of assets 1,658 — 1,658 Equity-based compensation 224 7,164 (c) 7,388 Amortization of deferred contract acquisition costs 2,101 1,361 (b) 3,462 Change in fair value of embedded derivative liability (45,877) — (45,877) Amortization of debt issuance costs 393 — 393 Operating leases, net 151 — 151 (Reversal of) Provision for allowance for doubtful accounts 368 — 368 Deferred income taxes 180 166 (d) 346 Changes in assets and liabilities: — Accounts receivable (297) — (297) Contract assets (1,094) 644 (a) (450) Prepaid and other current assets 2,537 — 2,537 Due from affiliates, net — — — Deferred contract acquisition costs (3,302) — (3,302) Other assets — — — Accounts payable (655) — (655) Accrued expenses (428) — (428) Deferred revenue 1,191 38 (a) 1,229 Other current liabilities — — — Other liabilities — — — Net cash, cash equivalents and restricted cash used in operating activities (36,524) — (36,524) Cash flows from investing activities: Purchases of property and equipment (504) — (504) Net cash, cash equivalents and restricted cash used in investing activities (504) — (504) Cash flows from financing activities: Proceeds from revolving credit facility 21,000 — 21,000 Net cash, cash equivalents and restricted cash provided by financing activities 21,000 — 21,000 Effect of foreign currency exchange rates on cash (862) — (862) Net decrease in cash, cash equivalents and restricted cash (16,890) — (16,890) Cash, cash equivalents and restricted cash at beginning of period 27,463 — 27,463 Cash, cash equivalents and restricted cash at end of period $ 10,573 $ — $ 10,573 Cash and cash equivalents $ 9,100 — $ 9,100 Restricted cash 1,473 — 1,473 Total cash, cash equivalents and restricted cash at end of period $ 10,573 $ — $ 10,573 Footnotes to tables: (a) Accounting adjustment related to the Revenue Recognition Error. (b) Accounting adjustment related to the Amortization Error. (c) Accounting adjustment related to the Equity Compensation Error. (d) Accounting adjustment resulting from the impact of the corrections of (a), (b) and (c) on our income tax expense.

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Summary of Significant Accounting Policies	Business and Summary of Significant Accounting Policies Description of the Business Appgate is a cybersecurity company that protects against breaches and fraud through innovative, identity-centric, Zero Trust solutions. Appgate exists to provide modern enterprises with a solution to increasingly common cyber-attacks, against which traditional cybersecurity tools are proving ineffective. We sell and deliver our solutions using a combination of term-based license subscriptions, perpetual licenses and software-as-a-service (“SaaS”), together with related support services. We conduct business worldwide. Our headquarters is in Coral Gables, Florida. Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial statements have been prepared by our management and reflect all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to fairly state the financial position and the results of operations for the interim periods presented. The condensed consolidated balance sheet data as of December 31, 2021 and other financial data for the prior period(s) have been derived from our audited consolidated financial statements as of their respective date(s). The condensed consolidated financial statements have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”) but omit certain information and footnote disclosure necessary to present the statements in accordance with generally accepted accounting principles in the United States of America (“GAAP”). For further information, refer to our audited consolidated financial statements as of and for the year ended December 31, 2021 included in our Amendment No. 1 to our Annual Report on Form 10-K/A for the year ended December 31, 2021 filed with the SEC on December 28, 2022 (the “Amended 10-K”). Results for the interim periods are not necessarily indicative of results to be expected for the entirety of 2022. All references to “$” or “dollars” are to the currency of the United States (“U.S.”) unless otherwise indicated. We operate on a calendar year basis. References to 2021, for example, refer to our year ended December 31, 2021. Risks and Uncertainties due to COVID-19 Pandemic The COVID-19 pandemic continues to evolve and disrupt normal activities in many segments of the U.S. and global economies even as COVID-19 vaccines have been and continue to be administered in 2022. Much uncertainty still surrounds the pandemic, including new variants of COVID-19, its duration and ultimate overall impact on our operations. Management continues to carefully evaluate potential outcomes and has plans to mitigate related risks. While the COVID-19 pandemic did not have a material impact on our business, financial condition or results of operations for 2021 or the six months ended June 30, 2022, management took measures during such periods to minimize the risks from the pandemic. Those measures were aimed at safeguarding the Company, and the health, safety and well-being of our employees and customers. Liquidity and Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The going concern basis of presentation assumes that the Company will continue in operation one year after the date these financial statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. Pursuant to the requirements of the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year from the date these financial statements are issued. This evaluation does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented or are not within control of the Company as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company had cash and cash equivalents and borrowing capacity under the Revolving Credit Facility (as defined in Note 11) of $9.1 million and of $29.0 million, respectively, at June 30, 2022, a loss from continuing operations of $49.6 million for the six months ended June 30, 2022, and an accumulated deficit of $523.7 million at June 30, 2022. Current economic and market conditions have put pressure on our growth plans. The Company’s ability to continue as a going concern is dependent on its ability to obtain additional capital. The Company believes that its current level of cash and cash equivalents and borrowing capacity under the Revolving Credit Facility are not sufficient to continue investing in growth, while at the same time meeting its obligations as they become due. These conditions raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year from the date of issuance of these unaudited condensed consolidated financial statements. In an effort to alleviate these conditions, management is currently evaluating various cost reduction and other alternatives and may seek to raise additional funds (in excess of the funds available to the Company under the Revolving Credit Facility) through the issuance of equity, mezzanine or debt securities, through arrangements with strategic partners, through obtaining credit from financial institutions or otherwise. The Company implemented a reduction in force (the “Reduction”) in July 2022 - see Note 19 - as well as several other cost reduction initiatives, but, as of the date of issuance of these unaudited condensed consolidated financial statements, does not have any additional funding commitment in place. The actual amount that we may be able to raise under these alternatives will depend on market conditions and other factors, as well as limitations under our Note Issuance Agreement and the Revolving Credit Agreement (as defined in Note 11). As we seek additional sources of financing, there can be no assurance that such financing would be available to us on favorable terms or at all. Our ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, our performance and investor sentiment with respect to us and our industry. As a result of these uncertainties, and notwithstanding management’s plans and efforts to date, there is substantial doubt about our ability to continue as a going concern. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

(Loss) Income per Common Share

(Loss) Income per Common Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
(Loss) Income per Common Share	(Loss) Income per Common ShareBasic (loss) income per common share is computed by dividing net (loss) income (the numerator) by the weighted-average number of shares of common stock outstanding (the denominator) for the period. Diluted (loss) income per common share assumes that any dilutive equity instruments were exercised with outstanding common stock adjusted accordingly when the conversion of such instruments would be dilutive. The Company's potential dilutive shares consist of 10,982,805 shares of Appgate’s common stock underlying the Convertible Senior Notes that are convertible at any time at the option of the holders of the Convertible Senior Notes prior to their maturity - see Note 11. These potentially dilutive shares have been excluded from diluted (loss) income per share for the 2021 periods as the effect would be to reduce the net loss per share and have an anti-dilutive effect. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same in the 2021 periods. Weighted average shares of common stock outstanding has been retroactively restated for the equivalent number of shares received by the accounting acquirer as a result of the merger (the “Merger”) of Appgate Cybersecurity, Inc. f/k/a Cyxtera Cybersecurity, Inc. d/b/a AppGate (“Legacy Appgate”) with a direct, wholly owned subsidiary (“Merger Sub”) of Newtown Lane Marketing, Incorporated, a public company incorporated in Delaware (“Newtown” or “Newtown Lane”), which was completed on October 12, 2021, as if these shares had been outstanding as of the beginning of the earliest period presented. The following table summarizes the basic and diluted earnings per share calculations (in thousands, except share and per share amounts). Discontinued operations calculation for the three months ended June 30, 2022 and 2021 have been omitted as we did not have net income from discontinued operations during those periods. Three Months Ended Six Months Ended Six Months Ended 2022 2021 2022 2021 2022 2021 (As Restated) (As Restated) (As Restated) Continuing operations Continuing operations Discontinued operations Numerator: Net income (loss) attributable to common stockholders - basic $ 61,401 $ (15,787) $ (7,701) $ (26,585) $ — $ 65,689 Add: Effect of mark-to-market adjustment recognized during the period (92,020) — (45,877) — — — Net (loss) income attributable to common stockholders - diluted $ (30,619) $ (15,787) $ (53,578) $ (26,585) $ — $ 65,689 Denominator: Weighted-average shares of common stock - basic 131,793,660 14,643,740 131,793,660 14,207,989 131,793,660 14,207,989 Effect from conversion of shares of common stock under the Convertible Senior Notes (Note 11) 10,982,805 10,982,805 10,982,805 10,982,805 10,982,805 10,982,805 Weighted-average shares of common stock - diluted 142,776,465 25,626,545 142,776,465 25,190,794 142,776,465 25,190,794 Basic income (loss) per share $ 0.47 $ (1.08) $ (0.06) $ (1.87) $ — $ 4.62 Diluted (loss) income per share $ (0.21) $ (1.08) $ (0.38) $ (1.87) $ — $ 4.62

Transactions With Former Parent

Transactions With Former Parent - Cyxtera	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
Transactions With Former Parent - Cyxtera	Transactions with Former Parent – CyxteraOn December 31, 2019, Cyxtera Technologies, Inc. (“Cyxtera” or “former Parent”) consummated several transactions (the “Cyxtera Spin-Off”), following which Legacy Appgate became a stand-alone entity. The transactions separated Cyxtera’s data center business from Legacy Appgate’s cybersecurity business. Over time, Legacy Appgate has entered into several agreements and transactions with Cyxtera (and/or one or more of its subsidiaries), SIS Holdings LP (“SIS Holdings”) and certain equity owners of SIS Holdings. These agreements, relationships and transactions are described below. Service Provider Fee In connection with the formation of Cyxtera in 2017, certain equity owners of SIS Holdings and/or affiliates thereof (collectively, the “Service Providers”) entered into a Services Agreement (the “Services Agreement”) with Cyxtera and all of Cyxtera’s subsidiaries and controlled affiliates as of such date, including Legacy Appgate (collectively, the “Company Group”). Under the Services Agreement, the Service Providers agreed to provide members of the Company Group with certain executive and management, financial, consulting, human resources and advisory services as requested by members of the Company Group from time to time. Pursuant to the Services Agreement, the Company Group also agreed to pay the Service Providers an annual service fee in the aggregate amount of $1.0 million in equal quarterly installments. The Service Providers waived all fees under the Services Agreement for 2021. The Services Agreement was terminated on July 29, 2021. Cyxtera Management Inc. Intercompany Master Services Agreement Fee Also in connection with the formation of Cyxtera in 2017, the Company Group entered into an Intercompany Master Services Agreement (the “Intercompany Master Services Agreement”). Under the Intercompany Master Services Agreement, Cyxtera Management, Inc., a wholly owned subsidiary of Cyxtera (the “Management Company”), agreed to provide certain services to other members of the Company Group from time to time, including financial, accounting, administrative, facilities and other services. No amounts were allocated to Legacy Appgate under the Intercompany Master Services Agreement for 2021. The Intercompany Master Services Agreement was terminated on July 29, 2021. Cyxtera Management Inc. Transition Services Agreement Upon consummation of the Cyxtera Spin-Off, Legacy Appgate and the Management Company entered into a transition services agreement (the “Transition Services Agreement”), pursuant to which the Management Company provided certain transition services to us, and we provided certain transition services to the Management Company. The term under the Transition Services Agreement commenced on January 1, 2020 and ended on June 30, 2021. Substantially all of the obligations under the Transition Services Agreement ceased on December 31, 2020. During each of the three and six months ended June 30, 2021, the Management Company charged Legacy Appgate $0.1 million of fees for services provided to Legacy Appgate by the Management Company under the Transition Services Agreement. Costs incurred under the Transition Services Agreement are included in general and administrative expenses in the condensed consolidated statement of operations. During the three and six months ended June 30, 2021, Legacy Appgate charged the Management Company $48 thousand and $0.1 million, respectively, of fees for services provided to the Management Company and its affiliates by Legacy Appgate under the Transition Services Agreement. Income for these services is included in other expenses, net in the condensed consolidated statement of operations. On February 8, 2021, we made a payment of $1.0 million to Cyxtera (and/or its subsidiaries) as settlement in full of trade balances with Cyxtera and its subsidiaries and other amounts due to / from under the Intercompany Master Services Agreement and the Transition Services Agreement, which trade balances and other amounts totaled $2.6 million. Because the Management Company was an affiliate under common control with us at the time of repayment, the settlement of these amounts was recognized as a capital contribution of $1.6 million. Promissory Notes On March 31, 2019, Legacy Appgate issued promissory notes to each of Cyxtera and the Management Company (together, the “Promissory Notes”) evidencing funds borrowed at such time by Legacy Appgate from each of Cyxtera and the Management Company, as well as potential future borrowings. The Promissory Notes had a combined initial aggregate principal amount of $95.2 million and provided for additional borrowings during the term of the Promissory Notes for additional amounts not to exceed approximately $52.5 million in the aggregate (approximately $147.7 million including the initial aggregate principal amount). Interest accrued on the unpaid principal balance of the Promissory Notes at a rate per annum equal to 3%; provided, that with respect to any day during the period from the date of the Promissory Notes through December 31, 2019, interest was calculated assuming that the unpaid principal balance of the Promissory Notes on such day was the unpaid principal amount of the notes on the last calendar day of the quarter in which such day occurs. Interest was payable upon the maturity date of the Promissory Notes. Each of the Promissory Notes had an initial maturity date of March 30, 2020 and was extended through March 30, 2021 by amendments entered into effective as of March 30, 2020. During the six months ended June 30, 2021, we recognized $0.5 million of interest expense on the Promissory Notes. On February 8, 2021, Legacy Appgate repaid Cyxtera $20.6 million, representing the entirety of the then outstanding principal and interest under the Promissory Note held by Cyxtera, and Legacy Appgate made a partial repayment of $99.0 million to the Management Company on the then outstanding principal and interest of $133.6 million under the Promissory Note held by the Management Company. On that same date, the Management Company issued Legacy Appgate a payoff letter, extinguishing the balance remaining unpaid following such repayment. Because Cyxtera was Legacy Appgate’s direct parent at the time of issuance of the Promissory Notes and an affiliate under common control with Legacy Appgate at the time of repayment, we recognized the note extinguishment of $34.6 million as a capital contribution in the six months ended June 30, 2021.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations On January 20, 2021, Legacy Appgate completed the sale of 100% of the outstanding equity interests of its formerly wholly owned subsidiary, Brainspace Corporation (“Brainspace”), for $125.0 million. We recorded a gain on the sale of Brainspace of $64.6 million. We have classified the results of Brainspace as discontinued operations in our condensed consolidated statements of operations for all periods presented. The major items constituting net income attributable to discontinued operations for the six months ended June 30, 2021 are presented below (in thousands): Revenue $ 2,111 Cost of revenue 142 Gross profit 1,969 Operating expenses: Sales and marketing 265 Research and development 290 Total operating expenses 555 Income from operations 1,414 Gain on the disposal of the discontinued operation 64,621 Income from discontinued operations 66,035 Income tax expense of discontinued operations (346) Net income from discontinued operations, net of tax $ 65,689

Revenue

Revenue	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregation of Revenue The following table summarizes our revenue by category (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 (As Restated) (As Restated) Subscription revenue: Multi-year subscription term-based licenses $ 4,179 $ 2,875 $ 7,010 $ 4,665 1-year subscription term-based licenses 2,013 1,788 4,816 3,549 Total subscription term-based licenses 6,192 4,663 11,826 8,214 Subscription SaaS 2,142 2,398 4,438 4,726 Support and maintenance 965 1,021 1,898 2,010 Total subscription revenue 9,299 8,082 18,162 14,950 Perpetual licenses 351 58 507 1,371 Services and other 1,479 1,257 3,538 3,113 Total $ 11,129 $ 9,397 $ 22,207 $ 19,434 The following table summarizes revenue (in thousands) by country and main geography in which we operate based on the billing address of customers (including, for the avoidance of doubt, resellers and managed service providers) who have contracted with us: Three Months Ended Six Months Ended 2022 2021 2022 2021 (As Restated) (As Restated) Revenues by country (a): United States $ 5,709 $ 4,603 $ 11,561 $ 8,460 Colombia 1,282 1,329 2,909 2,681 Other 4,138 3,465 7,737 8,293 Total $ 11,129 $ 9,397 $ 22,207 $ 19,434 Revenues by main geography: US&C $ 6,280 $ 5,197 $ 12,987 $ 10,087 LATAM 3,371 3,031 6,540 7,307 EMEA 853 728 1,525 1,242 APAC 625 441 1,155 798 Total $ 11,129 $ 9,397 $ 22,207 $ 19,434 (a) Only the United States and Colombia represented 10% or more of our total revenue in the periods presented. Significant Customers No single customer (including, for the avoidance of doubt, resellers and managed service providers) accounted for 10% or more of the total revenue in the periods presented. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record an unbilled receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized after invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record a receivable related to revenue recognized for multi-year on-premises licenses as we generally have an unconditional right to invoice and receive payment in the future related to those licenses. Contract liabilities consist of deferred revenue and include payments received in advance of performance under a customer contract. Such amounts are recognized as revenue over the remaining contractual period. During each of the three months ended June 30, 2022 and 2021, we recognized revenue of $2.6 million that was included in the corresponding contract liability balance at the beginning of the related period. During the six months ended June 30, 2022 and 2021, we recognized revenue of $4.4 million and $4.9 million, respectively, that was included in the corresponding contract liability balance at the beginning of the related period. We receive payments from customers based upon contractual billing schedules and accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days to 45 days. Contract assets include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. Unbilled receivables were $10.5 million and $10.1 million as of June 30, 2022 and December 31, 2021, respectively. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to provide customers with financing. Examples include invoicing at the beginning of a subscription term for SaaS services that do not contain variable consideration with revenue recognized ratably over the contract period, and multi-year on-premises licenses that do not contain variable consideration that are invoiced annually with license revenue recognized upfront and support and maintenance recognized ratably over the contract period. Remaining Performance Obligations The typical contractual term for term-based licenses and support and maintenance is one Costs to Obtain and Fulfill a Contract The following table summarizes the activity of the deferred contract acquisition costs (in thousands): (As Restated) Six Months Ended Year Ended June 30, December 31, 2022 2021 Beginning balance $ 4,305 $ 3,061 Capitalization of contract acquisition costs 3,743 6,193 Amortization of deferred contract acquisition costs (3,462) (5,333) Impacts of foreign currency translation 24 384 Ending balance $ 4,610 $ 4,305 Deferred contract acquisition costs, current $ 1,413 $ 1,319 Deferred contract acquisition costs, noncurrent $ 3,197 $ 2,986 We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. We did not recognize any impairment losses of deferred contract acquisition costs during the six months ended June 30, 2022 and 2021. Sales commissions accrued but not paid as of June 30, 2022 and December 31, 2021 totaled $1.2 million and $1.4 million, respectively, and are included within accrued expenses in the condensed consolidated balance sheets. Our fulfillment costs are generally not significant.

Financial Instruments and Fair

Financial Instruments and Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value Measurements	Financial Instruments and Fair Value Measurements Our financial instruments consist of cash equivalents, accounts receivable, accounts payable, accrued expenses, deferred revenue, our debt and an embedded derivative liability. The fair value of cash equivalents, accounts receivable, accounts payable, accrued expenses, deferred revenue, and our Revolving Credit Facility approximate their carrying value because of the short-term nature of these instruments. The carrying value of our Convertible Senior Notes, net of issuance costs, was $73.4 million and $73.0 million as of June 30, 2022 and December 31, 2021, respectively. The fair value of the Convertible Senior Notes was estimated as $62.3 million and $69.5 million as of June 30, 2022 and December 31, 2021, respectively. The fair value was estimated using a discounted cash flow analysis with a yield based on our credit rating. Recurring Fair Value Measurements The fair value of the embedded derivative liability was estimated using a “with and without” approach as of June 30, 2022 and December 31, 2021: • “With” scenario : the fair value of the Convertible Senior Notes as of the valuation date is estimated based on a Two-Factor binomial lattice model. • “Without” scenario : the fair value of the Convertible Senior Notes “without” the embedded features was estimated using a DCF model whereby the contractual cash flows absent the embedded derivative (i.e., the coupon and principal payments) are discounted at a risk-adjusted rate. The following table summarizes fair value measurements by level at June 30, 2022 and December 31, 2021 for instruments measured at fair value on a recurring basis (in thousands): Level 1 Level 2 Level 3 Total June 30, 2022 Financial liability: Embedded derivative liability $ — $ — $ 32,620 $ 32,620 December 31, 2021 Financial liability: Embedded derivative liability $ — $ — $ 78,497 $ 78,497 The following table presents the changes in Level 3 liabilities measured at fair value on a recurring basis during the three and six months ended June 30, 2022 (in thousands): Embedded derivative liability Total liabilities Balance at January 1, 2022 $ 78,497 $ 78,497 Loss included in earnings 46,143 46,143 Balance as of March 31, 2022 124,640 124,640 Gain included in earnings (92,020) (92,020) Balance as of June 30, 2022 $ 32,620 $ 32,620 The loss/gain included in the previous table is reported in our condensed consolidated statement of operations within change in fair value of embedded derivative liability. There were no transfers between fair value measurement levels during the three and six months ended June 30, 2022 and 2021 and there were no Level 3 liabilities outstanding during the three and six months ended June 30, 2021.

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Accounts Receivable and Allowance for Doubtful Accounts Our accounts receivable represent amounts invoiced and due from our customers (including, for the avoidance of doubt, resellers and managed service providers) under our revenue contracts. The activity in the allowance for doubtful accounts was as follows (in thousands): Six Months Ended Year Ended June 30, December 31, 2022 2021 Beginning balance $ 163 $ 437 Provision for (Reversal of) allowance for doubtful accounts 368 (95) Write offs (319) (218) Impacts of foreign currency translation (1) 39 Ending balance $ 211 $ 163 Prepaid and Other Current Assets Our prepaid and other current assets consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Prepaid expenses $ 3,281 $ 4,247 Withholding taxes 302 394 Deferred costs — 1,555 Total 3,583 6,196 Property and Equipment, Net Our property and equipment, net consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Leasehold improvements $ 4,024 $ 4,225 Equipment and fixtures 4,350 4,233 8,374 8,458 Less: accumulated depreciation and amortization (6,261) (6,343) Property and equipment, net $ 2,113 $ 2,115 During the three and six months ended June 30, 2022, we recognized depreciation and amortization expense on property and equipment of $0.2 million and $0.5 million, respectively. During the three and six months ended June 30, 2021, we recognized depreciation and amortization expense on property and equipment of $0.2 million and $0.4 million, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The carrying amount of goodwill was $71.6 million as of June 30, 2022 and December 31, 2021. Intangible Assets, Net Our acquired intangible assets subject to amortization consist of customer relationships, trademarks and tradenames, and developed technology and were originally acquired by Cyxtera when it acquired the entities that formed Legacy Appgate. The useful lives of the assets were as follows: (i) customer relationships – 7.5 to 17.5 years, (ii) trademarks and tradenames – 8.5 to 14.5 years, and (iii) developed technology – 2.5 to 7.5 years. Acquired intangibles subject to amortization consist of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Weighted Gross Accumulated Net Gross Accumulated Net Customer relationships $ 30,157 $ (17,328) $ 12,829 $ 30,157 $ (15,706) $ 14,451 4.1 Trademarks and tradenames 17,932 (8,161) 9,771 18,732 (8,051) 10,681 8.5 Developed technology 34,276 (26,271) 8,005 38,881 (27,554) 11,327 2.3 Total $ 82,365 $ (51,760) $ 30,605 $ 87,770 $ (51,311) $ 36,459 We stopped offering our Compliance Sheriff product. As a result, during the six months ended June 30, 2022 we recorded a loss on abandonment of the related intangible assets (namely, trademarks and tradenames and developed technology) of $1.7 million (all of which was recorded during the first quarter of 2022). Other than the loss on abandonment, the main changes in the carrying amount of each major class of intangible assets during the three and six months ended June 30, 2022 and 2021 was amortization, and to a lesser extent, foreign currency translation. During the three and six months ended June 30, 2022, we recorded amortization expense on intangible assets of $2.1 million and $4.2 million, respectively. During the three and six months ended June 30, 2021, we recorded amortization expense on intangible assets of $2.3 million and $4.6 million, respectively. Amortization expense for all intangible assets, except our developed technology, was recorded within depreciation and amortization expense in the condensed consolidated statements of operations. Amortization expense for our developed technology was recorded within cost of revenue in the condensed consolidated statements of operations. Future amortization expense of intangible assets is as follows (in thousands): For the years ending: Remaining 2022 $ 4,175 2023 7,941 2024 7,377 2025 4,224 2026 2,304 Thereafter 4,584 Total $ 30,605 Impairment Tests We perform annual impairment tests of goodwill on October 1st of each year or whenever an indicator of impairment exists. No impairment was recorded during the six months ended June 30, 2022 and 2021.

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Leases	Leases We lease office space and certain colocation space under non-cancelable operating lease agreements. We are also party to agreements that have been determined to be short-term leases. We also leased certain equipment under finance lease arrangements that expired in November 2021. Operating Leases The following is a summary of our operating lease costs for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease cost $ 218 $ 237 $ 492 $ 481 Short-term lease cost 94 12 123 25 Variable lease cost 19 16 23 39 Total operating lease costs $ 331 $ 265 $ 638 $ 545 The following table presents information about leases on our condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Operating lease right-of-use assets $ 2,106 $ 2,497 Operating lease liabilities, current $ 714 $ 798 Operating lease liabilities, noncurrent $ 1,619 $ 1,891 At June 30, 2022, the weighted-average remaining lease term and weighted-average discount rate for operating leases were 3.8 years and 6.45%, respectively. At December 31, 2021, the weighted-average remaining lease term and weighted-average discount rate for operating leases were 4.0 years and 6.39%, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $0.5 million for each of the six months ended June 30, 2022 and 2021. There were no right-of-use assets obtained in exchange for lease obligations during the six months ended June 30, 2022 and 2021. Maturities of operating lease liabilities consisted of the following as of June 30, 2022 (in thousands): For the years ending: Remaining 2022 $ 399 2023 629 2024 560 2025 533 2026 357 Thereafter 27 Total future minimum lease payments 2,505 Less: Imputed interest (172) Total $ 2,333

Debt

Debt	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt	Debt Our debt consists of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Revolving Credit Facility $ 21,000 $ — Principal amount of Convertible Senior Notes 75,000 75,000 Unamortized debt issuance costs (1,640) (2,032) Net carrying amount 73,360 72,968 Total debt $ 94,360 $ 72,968 Interest expense, net was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest expense on Revolving Credit Facility $ 209 $ — $ 209 $ — Interest expense on Convertible Senior Notes 938 625 1,875 972 Interest expense on Promissory Notes (Note 4) — — — 472 Amortization of debt issuance costs 198 16 393 25 Other, net (2) 2 (3) 7 Total interest expense, net $ 1,343 $ 643 $ 2,474 $ 1,476 Revolving Credit Facility On April 26, 2022, Legacy Appgate, Appgate, the other guarantors party thereto and SIS Holdings entered into a revolving credit agreement (the “Revolving Credit Agreement”) which provides for a $50.0 million unsecured, revolving credit facility (the “Revolving Credit Facility”). This indebtedness is contractually subordinated to the Convertible Senior Notes and matures on the earlier to occur of (a) June 30, 2023, (b) the closing of a registered offering of Capital Stock (as defined in the Revolving Credit Agreement) of the Company in an aggregate amount equal to $50.0 million or more and (c) the date of which the Loans (as defined in the Revolving Credit Agreement) are accelerated upon an Event of Default (as defined in the Revolving Credit Agreement). Interest accrues on amounts drawn under the Revolving Credit Facility at a rate of 10.0% per annum, payable in cash on the Final Maturity Date (as defined in the Revolving Credit Agreement). The Revolving Credit Agreement is subject to customary terms, covenants and conditions. All obligations under the Revolving Credit Agreement are guaranteed by Appgate and Legacy Appgate’s domestic subsidiaries. During the three months ended June 30, 2022, we borrowed $21.0 million under the Revolving Credit Facility, all of which remained outstanding as of June 30, 2022. Convertible Senior Notes On February 9, 2021, Legacy Appgate issued $50.0 million in aggregate principal amount of convertible senior notes due 2024 (the “First Tranche”) to various funds managed by Magnetar Financial LLC (“Magnetar”). In connection with the closing of the Merger, Legacy Appgate issued an additional $25.0 million in aggregate principal balance in convertible notes to various funds managed by Magnetar (together with the First Tranche, the “Convertible Senior Notes”). The Convertible Senior Notes are subject to the terms and conditions of the note issuance agreement (the “Note Issuance Agreement”) among Legacy Appgate, Legacy Appgate’s wholly owned domestic subsidiaries, the holders of the Convertible Senior Notes (the “Noteholders”) and Magnetar, the representative of the Noteholders (in such capacity, the “Representative”), and the note purchase agreement among Legacy Appgate and the Noteholders (the “Note Purchase Agreement”). Capitalized terms not otherwise defined in this Note 11 have the meanings ascribed to them in the Note Issuance Agreement. During 2021, we received net proceeds of $72.8 million from the issuance of the Convertible Senior Notes, after deducting fees and expenses of $2.2 million. We recorded these fees and expenses as debt issuance costs that will be amortized over the term of the Convertible Senior Notes. The Convertible Senior Notes are senior, unsecured obligations of Legacy Appgate, and the payment of the principal and interest is unconditionally guaranteed, jointly and severally by Legacy Appgate’s U.S. subsidiaries and, as of the closing of the Merger, also by Appgate. The Convertible Senior Notes will mature on February 9, 2024, unless earlier converted, redeemed, or repurchased. The Note Issuance Agreement was amended, effective as of February 9, 2022, to, among other things, provide that Magnetar may elect, with our consent, to invest up to an additional $25.0 million in aggregate principal amount of Convertible Senior Notes, in one or more closings, on or prior to the earlier of (i) seventy-five (75) days after the Company closes a registered offering of equity securities in an aggregate amount of no less than $40.0 million and (ii) October 31, 2022. Interest on the Convertible Senior Notes is payable either entirely in cash or entirely in kind (“PIK Interest”), or a combination of cash and PIK Interest at our discretion. The Convertible Senior Notes bear interest at the annual rate of 5% with respect to interest payments made in cash and 5.50% with respect to PIK Interest, with interest payable semi-annually on February 1 and August 1 of each year, commencing on August 1, 2021. Additional notes (“PIK Notes”) to be issued for PIK Interest will have the same terms and conditions as the Convertible Senior Notes. The Note Issuance Agreement includes certain affirmative and financial covenants we are required to satisfy (as further described below). Supplemental Agreement On October 12, 2021, in connection with the closing of the Merger, Newtown entered into a supplemental agreement (the “Supplemental Agreement”) with Legacy Appgate and Magnetar, as representative of the holders of the Convertible Senior Notes, pursuant to which Newtown, among other things, unconditionally guaranteed all of Legacy Appgate’s Obligations under the Note Issuance Agreement, including the Convertible Senior Notes, and assumed all of Legacy Appgate’s Conversion Obligations and Change of Control Conversion Obligations under the Note Issuance Agreement. Amendment to Note Purchase Agreement and Note Issuance Agreement and Waiver to Note Purchase Agreement and Registration Rights Agreement As of February 9, 2022, the Company, Legacy Appgate, the Noteholders and the Representative entered into an Amendment to Note Purchase Agreement and Note Issuance Agreement and Waiver to Note Purchase Agreement and Registration Rights Agreement (the “Amendment and Waiver”). The Amendment and Waiver modifies: (i) the Note Purchase Agreement by (a) (1) extending the date by which the Representative or its affiliates may elect to consummate an Optional Closing (as defined in the Note Purchase Agreement) until the earlier of (x) 75 days after the Company closes a registered offering of equity securities in an aggregate amount of no less than $40.0 million and (y) October 31, 2022 and (2) requiring the Company’s consent to effect any Optional Closing, and (b) waiving, for the period of time set forth in the Amendment and Waiver, certain registration rights of the Noteholders; (ii) the Note Issuance Agreement to provide for the incurrence of certain subordinated indebtedness; and (iii) that certain Registration Rights Agreement, dated as of February 8, 2021 entered into by and among Legacy Appgate and the Noteholders, by waiving, for the period of time set forth in the Amendment and Waiver, certain registration rights of the Noteholders. Other key terms of the Convertible Senior Notes, as of June 30, 2022, follow: Conversion. Other than upon a Change of Control, prior to maturity, each holder of the Convertible Senior Notes shall have the option to convert all or any portion of such Convertible Senior Notes into Legacy Appgate common stock or, following entry into the Supplemental Agreement, our common stock, subject to and in accordance with the terms of the Note Issuance Agreement, including the applicable conversion rate thereunder. Conversion upon Change of Control. If Legacy Appgate undergoes a Change of Control other than the Merger prior to maturity, each holder of Convertible Senior Notes shall have the option to convert all or any portion of such Convertible Senior Notes into Legacy Appgate common stock or, following entry into the Supplemental Agreement (as defined above), our common stock, subject to and in accordance with the terms of the Note Issuance Agreement, including the applicable conversion rate thereunder. Guarantees; Conversion Obligations. The Convertible Senior Notes are guaranteed by each of Legacy Appgate’s wholly owned domestic subsidiaries and, as of the closing of the Merger, also by Appgate. Upon the consummation of certain events resulting in Legacy Appgate becoming a direct or indirect subsidiary of any person (including the Merger), such acquiring person, any direct or indirect parent company thereof and each subsidiary thereof (immediately prior to such event) shall unconditionally guarantee Legacy Appgate’s Obligations and assume all of Legacy Appgate’s Conversion Obligations and Change of Control Conversion Obligations and, upon such assumption, Legacy Appgate shall be released from its Conversion Obligations and Change of Control Conversion Obligations. Repurchase Upon a Fundamental Change. Upon the occurrence of a Fundamental Change at any time after a Public Company Event, each holder of Convertible Senior Notes shall have the option to require Legacy Appgate to repurchase for cash all or any portion of such Convertible Senior Notes, at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest thereon, subject to and in accordance with the terms of the Note Issuance Agreement. Covenants. The Note Issuance Agreement contains restrictive covenants that, among other things, generally limit the ability of our and certain of our subsidiaries (subject to certain exceptions) to: (i) incur additional debt and issue Disqualified Stock; (ii) create liens; (iii) pay dividends, acquire shares of capital stock, or make investments; (iv) issue guarantees; (v) sell assets and (vi) enter into transactions with affiliates. The Note Issuance Agreement also contains a financial covenant that requires that we maintain liquidity of not less than $10.0 million as of the last day of any calendar month. The foregoing restrictive covenants are subject to a number of important exceptions and qualifications, as set forth in the Note Issuance Agreement. Events of Default. The Note Issuance Agreement provides for customary events of default which include (subject in certain cases to customary grace and cure periods), among others: (i) nonpayment of principal or interest; (ii) breach of covenants or other agreements in the Note Issuance Agreement; (iii) defaults in failure to pay certain other indebtedness; and (iv) certain events of bankruptcy or insolvency. Generally, if an event of default occurs and is continuing under the Note Issuance Agreement, Magnetar or the holders of at least 25% in aggregate principal amount of the Convertible Senior Notes then outstanding may declare the principal of, premium, if any, and accrued interest on all the Convertible Senior Notes immediately due and payable. No Registration. The Convertible Senior Notes and any Appgate common stock to be issued upon conversion of the Convertible Senior Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from registration requirements. This description of the Note Issuance Agreement and the Convertible Senior Notes does not constitute an offer to sell, or the solicitation of an offer to buy, any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. If the holders have not converted the Convertible Senior Notes and the Convertible Senior Notes have not been redeemed by the maturity date, Legacy Appgate must repay the outstanding principal amount and accrued interest. Embedded Derivative Liability The Convertible Senior Notes contain (i) call options to be settled in cash upon the occurrence of a Change of Control (other than the Merger), (ii) put options to be settled in cash contingent upon the occurrence of a Fundamental Change after a Public Company Event or a Change of Control (other than the Merger) and (iii) a default interest rate increase of 3% applicable upon the occurrence of an event of default. Appgate evaluated these embedded redemption features under the guidance of ASC 815 and determined that a redemption feature contained a substantial premium requiring bifurcation at fair value. However, management determined the probability of a Change of Control to be remote and as such the fair value of the embedded redemption feature has been estimated to be zero. Management also evaluated the contingent interest feature and determined the likelihood of payment to be remote. Accordingly, the fair value of the contingent interest feature was also estimated to be zero. Lastly, management evaluated the embedded conversion feature, and determined that following the closing of the Merger, this embedded feature meets the net settlement criterion under ASC 815-15-25. Consequently, the automatic conversion meets the criteria under ASC 815-15-25-1(c). For an embedded feature to be bifurcated, it must meet all three criteria in ASC 815-15-25-1. Therefore, this embedded feature requires bifurcation. Accordingly, we have recorded an embedded derivative liability representing the combined fair value of the right of the Noteholders to receive 10,982,805 shares of our common stock upon conversion of the Convertible Senior Notes at any time (the “conversion feature”). The embedded derivative liability is presented as a non-current liability in our consolidated balance sheet and is adjusted to reflect fair value at each period end with changes in fair value recorded in the “Change in fair value of embedded derivative liability” financial statement line item of our consolidated statements of operations. We will continue to adjust the embedded derivative liability for changes in fair value until the underlying conversion feature is exercised, redeemed, cancelled or expires. As of June 30, 2022 and December 31, 2021, the carrying amount of this embedded derivative included in our condensed consolidated balance sheets was $32.6 million and $78.5 million, respectively. The fair value of this derivative is estimated using Level 3 inputs in the fair value hierarchy on a recurring basis. Refer to Note 7 – Financial Instruments and Fair Value Measurements . Based on the estimated value of the derivative at June 30, 2022, if the Noteholders were to exercise the conversion feature, they would not receive any excess over the aggregate principal amount on the Convertible Senior Notes.

Commitment and Contingencies

Commitment and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Letters of Credit As of June 30, 2022 and December 31, 2021, we had $1.5 million in irrevocable stand-by letters of credit outstanding, which were issued primarily to guarantee a subsidiary’s performance under contracts with customers and as a guarantee under the Company’s corporate credit card line. As of June 30, 2022, no amounts had been drawn on any of these irrevocable stand-by letters of credit. Non-cancelable Purchase Obligations In the normal course of business, we enter into non-cancelable purchase commitments with various parties to purchase products and services, such as technology equipment, subscription-based cloud service arrangements, corporate events and consulting services. As of June 30, 2022 and December 31, 2021, we had outstanding non-cancelable purchase obligations with terms of 12 months or longer aggregating $1.0 million and $2.7 million, respectively. Legal Contingencies We may be subject to legal proceedings and litigation arising from time to time. We record a liability when we believe that it is both probable that a loss has been incurred and the amount can be reasonably estimated. We periodically evaluate developments in our legal matters that could affect the amount of liability that we accrue, if any, and adjust, as

Profit Interest Units of SIS Ho

Profit Interest Units of SIS Holdings LP	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Profit Interest Units of SIS Holdings LP	Profit Interest Units of SIS Holdings LP SIS Holdings adopted the SIS Holdings LP Class B Unit Plan (the “SIS Holdings Plan”) in May 2017. All outstanding awards, including, but not limited to, awards to employees of Appgate (or a subsidiary thereof), under the SIS Holdings Plan were issued in 2017, 2018 and 2019. Equity-based compensation costs were as follows for the three and six months ended June 30, 2022 and 2021 and are included in the following captions in our condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue $ — $ 131 $ 62 $ 262 Sales and marketing 81 537 162 1,104 Research and development — 100 — 211 General and administrative — 189 — 390 Total $ 81 $ 957 $ 224 $ 1,967 No related income tax benefit was recognized as of June 30, 2022 or December 31, 2021. As of June 30, 2022, total equity-based compensation costs related to 389 unvested Class B units not yet recognized totaled $0.2 million, which is expected to be recognized over a weighted-average period of 0.70 years. Effective July 29, 2021, the SIS Holdings Plan was amended to the extent required such that any distribution by SIS Holdings to its equity holders that is attributable to amounts received by SIS Holdings in respect of its equity interests in Cyxtera or Legacy Appgate, in each case upon the consummation of the transactions contemplated by Cyxtera’s merger with Starboard Value Acquisition Corp. in July 2021 (the “Cyxtera Transaction” and, together with the Merger, the “Transactions”) or the agreement and plan of reorganization, dated February 8, 2021 entered into by and among Newtown Lane, Merger Sub and Legacy Appgate, respectively, shall be deemed to have been made at an amount equal to the value of the Cyxtera common stock or Legacy Appgate common stock, as applicable, in each such Transaction. On October 12, 2021, our Board of Directors adopted the Appgate, Inc. 2021 Incentive Compensation Plan (the “2021 Plan”). The purpose of the 2021 Plan is to assist Appgate and its related entities in attracting, motivating, retaining and rewarding high-quality executives and other employees, officers, directors, consultants and other persons who provide services to Appgate or its related entities by enabling such persons to acquire or increase a proprietary interest in the Company in order to strengthen the mutuality of interests between such persons and the Company’s shareholders, and providing such persons with performance incentives to expend their maximum efforts in the creation of shareholder value. During 2021, no grants or awards were made under the 2021 Plan. During the three and six months ended June 30, 2022, our Board of Directors (or a designee thereof) approved certain grants of long-term incentive awards to executives, employees, officers and consultants of the Company (or a subsidiary thereof). Such grants were given as restricted stock units (“RSUs”) and phantom stock units (“PSUs”). Awards of RSUs were given as time-based awards and/or performance-based awards under the 2021 Plan. All PSUs were given as performance-based awards. The vesting of the performance-based awards is dependent upon certain conditions, including service and/or performance conditions as defined in the grants. Our Executive Chairman and Chairman of our Board of Directors received a time-based award, the Chairman Award, which entitled him to receive a specific number of shares of the Company’s common stock on the vesting date. Such Chairman Award originally vested no later than December 31, 2022, but was cancelled on December 23, 2022. The following table summarizes nonvested RSUs and PSUs activity for the three and six months ended June 30, 2022: RSUs PSUs Time-based Performance-based Performance-based Shares Weighted-average grant date fair value Shares Weighted-average grant date fair value Shares Weighted-average grant date fair value Nonvested at December 31, 2021 — $ — — $ — — $ — Granted 1,102,217 13.00 4,436,129 13.14 58,519 13.17 Vested — 0.00 — 0.00 — 0.00 Forfeited — 0.00 (107,748) 13.00 (1,433) 13.00 Nonvested at March 31, 2022 1,102,217 13.00 4,328,381 13.14 57,086 13.17 Granted — 0.00 192,869 12.81 5,145 11.14 Vested — 0.00 — 0.00 — 0.00 Forfeited — 0.00 (97,974) 13.15 (4,661) 12.86 Nonvested at June 30, 2022 1,102,217 $ 13.00 4,423,276 $ 13.13 57,570 $ 13.02 For the three and six months ended June 30, 2022, we recognized $3.6 million and $7.2 million, respectively, of equity-based compensation expense related to the 2021 Plan. This amount is included in general and administrative expenses in the unaudited condensed consolidated statements of operations.

Appgate, Inc. 2021 Incentive Co

Appgate, Inc. 2021 Incentive Compensation Plan	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Appgate, Inc. 2021 Incentive Compensation Plan	Profit Interest Units of SIS Holdings LP SIS Holdings adopted the SIS Holdings LP Class B Unit Plan (the “SIS Holdings Plan”) in May 2017. All outstanding awards, including, but not limited to, awards to employees of Appgate (or a subsidiary thereof), under the SIS Holdings Plan were issued in 2017, 2018 and 2019. Equity-based compensation costs were as follows for the three and six months ended June 30, 2022 and 2021 and are included in the following captions in our condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue $ — $ 131 $ 62 $ 262 Sales and marketing 81 537 162 1,104 Research and development — 100 — 211 General and administrative — 189 — 390 Total $ 81 $ 957 $ 224 $ 1,967 No related income tax benefit was recognized as of June 30, 2022 or December 31, 2021. As of June 30, 2022, total equity-based compensation costs related to 389 unvested Class B units not yet recognized totaled $0.2 million, which is expected to be recognized over a weighted-average period of 0.70 years. Effective July 29, 2021, the SIS Holdings Plan was amended to the extent required such that any distribution by SIS Holdings to its equity holders that is attributable to amounts received by SIS Holdings in respect of its equity interests in Cyxtera or Legacy Appgate, in each case upon the consummation of the transactions contemplated by Cyxtera’s merger with Starboard Value Acquisition Corp. in July 2021 (the “Cyxtera Transaction” and, together with the Merger, the “Transactions”) or the agreement and plan of reorganization, dated February 8, 2021 entered into by and among Newtown Lane, Merger Sub and Legacy Appgate, respectively, shall be deemed to have been made at an amount equal to the value of the Cyxtera common stock or Legacy Appgate common stock, as applicable, in each such Transaction. On October 12, 2021, our Board of Directors adopted the Appgate, Inc. 2021 Incentive Compensation Plan (the “2021 Plan”). The purpose of the 2021 Plan is to assist Appgate and its related entities in attracting, motivating, retaining and rewarding high-quality executives and other employees, officers, directors, consultants and other persons who provide services to Appgate or its related entities by enabling such persons to acquire or increase a proprietary interest in the Company in order to strengthen the mutuality of interests between such persons and the Company’s shareholders, and providing such persons with performance incentives to expend their maximum efforts in the creation of shareholder value. During 2021, no grants or awards were made under the 2021 Plan. During the three and six months ended June 30, 2022, our Board of Directors (or a designee thereof) approved certain grants of long-term incentive awards to executives, employees, officers and consultants of the Company (or a subsidiary thereof). Such grants were given as restricted stock units (“RSUs”) and phantom stock units (“PSUs”). Awards of RSUs were given as time-based awards and/or performance-based awards under the 2021 Plan. All PSUs were given as performance-based awards. The vesting of the performance-based awards is dependent upon certain conditions, including service and/or performance conditions as defined in the grants. Our Executive Chairman and Chairman of our Board of Directors received a time-based award, the Chairman Award, which entitled him to receive a specific number of shares of the Company’s common stock on the vesting date. Such Chairman Award originally vested no later than December 31, 2022, but was cancelled on December 23, 2022. The following table summarizes nonvested RSUs and PSUs activity for the three and six months ended June 30, 2022: RSUs PSUs Time-based Performance-based Performance-based Shares Weighted-average grant date fair value Shares Weighted-average grant date fair value Shares Weighted-average grant date fair value Nonvested at December 31, 2021 — $ — — $ — — $ — Granted 1,102,217 13.00 4,436,129 13.14 58,519 13.17 Vested — 0.00 — 0.00 — 0.00 Forfeited — 0.00 (107,748) 13.00 (1,433) 13.00 Nonvested at March 31, 2022 1,102,217 13.00 4,328,381 13.14 57,086 13.17 Granted — 0.00 192,869 12.81 5,145 11.14 Vested — 0.00 — 0.00 — 0.00 Forfeited — 0.00 (97,974) 13.15 (4,661) 12.86 Nonvested at June 30, 2022 1,102,217 $ 13.00 4,423,276 $ 13.13 57,570 $ 13.02 For the three and six months ended June 30, 2022, we recognized $3.6 million and $7.2 million, respectively, of equity-based compensation expense related to the 2021 Plan. This amount is included in general and administrative expenses in the unaudited condensed consolidated statements of operations.

401(k) Savings Plan

401(k) Savings Plan	6 Months Ended
	Jun. 30, 2022
Retirement Benefits [Abstract]
401(k) Savings Plan	401(k) Savings Plan Effective January 1, 2021, Legacy Appgate’s employees became eligible to participate in the Appgate Cybersecurity, Inc. 401(k) Savings Plan (the “401(k) Plan”), a defined contribution benefit plan sponsored by Legacy Appgate. Under the 401(k) Plan, the Company (or a subsidiary thereof) makes matching contributions equal to 100% of an employee’s salary deferral that does not exceed 1% of the employee’s compensation plus 50% of the salary deferral between 1% and 6% of the employee’s compensation. Matching contributions to the 401(k) Plan were as follows for the three and six months ended June 30, 2022 and 2021 and are included in the following captions in the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue $ 133 $ 100 $ 219 $ 176 Sales and marketing 313 170 538 300 Research and development 227 135 382 238 General and administrative 112 55 171 99 Total $ 785 $ 460 $ 1,310 $ 813

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesEffective tax rates for interim periods are based upon the Company’s estimate of the annual effective tax rate. Effective tax rates vary based upon an estimate of taxable earnings and on the mix of taxable earnings in the various states and countries in which we operate. Changes in the annual allocation and apportionment of the Company’s activity amongst these jurisdictions result in changes to the effective rate. The income tax expense of continuing operations for the three and six months ended June 30, 2022 was $0.8 million and $1.1 million, respectively. The income tax expense on the pre-tax loss for the three and six months ended June 30, 2022 was different than the amount expected at the statutory federal income tax rate primarily due to foreign withholding taxes, changes in the valuation allowance, the change in the fair value of our embedded derivative liability that is not tax deductible, and state taxes. The Company has determined that the tax effects of the change in the fair value of its embedded derivative liability cannot reliably be estimated. Accordingly, the discrete-period computation method has been used and the annual effective tax rate may change significantly once included. The income tax expense of continuing operations for the three and six months ended June 30, 2021 was $0.6 million and $1.0 million, respectively. The income tax expense on the pre-tax loss for the three and six months ended June 30, 2021 was different than the amount expected at the statutory federal income tax rate primarily due to foreign withholding taxes.

Segment and Geographic Informat

Segment and Geographic Information	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Segment and Geographic Information	Segment and Geographic Information Our chief operating decision maker is our chief executive officer, who reviews financial information presented on a consolidated basis for the purposes of allocating resources and evaluating financial performance. Accordingly, management has determined that we operate as one operating and reportable segment. Refer to Note 6 – Revenue , for information on revenue by geography.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Revolving Credit Facility with SIS Holdings On April 26, 2022, Legacy Appgate, Appgate, the other guarantors party thereto and SIS Holdings, our controlling stockholder owning approximately 89% of our issued and outstanding common stock, entered into the Revolving Credit Agreement. Refer to Note 11 for additional details regarding the Revolving Credit Agreement and Revolving Credit Facility. Commercial Related Person Transactions with Cyxtera As of and during the three and six months ended June 30, 2022, two current members of our Board of Directors and one former member of our Board of Directors (who served on our Board of Directors for the entire first quarter of 2022 and part of the second quarter of 2022) also served on the board of directors of Cyxtera and, as of April 11, 2022, SIS Holdings owned approximately 61.5% of Cyxtera’s outstanding common stock. Our most significant related party relationships and transactions are with Cyxtera, the Management Company, SIS Holdings and certain of the equity owners of SIS Holdings. Those relationships and transactions are described in Note 4. In addition, Legacy Appgate maintains a number of ordinary course commercial relationships, both as a customer and service provider, with Cyxtera. For instance, Cyxtera (and/or its subsidiaries) purchases certain cybersecurity products and services from Legacy Appgate, including licenses for Legacy Appgate cybersecurity software and training. For the three and six months ended June 30, 2022 and 2021, the revenue recognized by Legacy Appgate from these licenses was insignificant. As of June 30, 2022, we had a receivable from Cyxtera (and/or its subsidiaries) of $0.1 million under these agreements (no open receivables as of December 31, 2021.) During the three and six months ended June 30, 2022 and 2021, Cyxtera (and/or its subsidiaries) provided Legacy Appgate certain data center co-location and CXD services. During the three and six months ended June 30, 2022, Cyxtera (and/or its subsidiaries) charged Legacy Appgate $0.1 million and $0.2 million, respectively, for those services (same amounts for the comparative periods of 2021). As of June 30, 2022 and December 31, 2021, Legacy Appgate had payables to Cyxtera (and/or its subsidiaries) for $0.1 million and $0.2 million, respectively, under these agreements. Transactions with Director Affiliated Companies As of and during the six months ended June 30, 2022, two current members of our Board of Directors and one former member of our Board of Directors (who served on our Board of Directors for the entire first quarter of 2022 and part of the second quarter of 2022) were also members of the board of directors of Chewy, Inc. (“Chewy”), an American online retailer of pet food and other pet-related products. During the three and six months ended June 30, 2022, Legacy Appgate recognized $0.2 million and $0.3 million, respectively, as revenue from its contracts with Chewy (or the channel partner reselling certain cybersecurity products provided to Chewy) (amounts for the comparative periods of 2021 were $0.3 million and $0.4 million, respectively). There were no open receivables from Chewy (or the channel partner reselling certain cybersecurity products provided to Chewy) as of June 30, 2022 and December 31, 2021. As of and during the six months ended June 30, 2022, one current member of our Board of Directors and one former member of our Board of Directors (who served on our Board of Directors for the entire first quarter of 2022 and part of the second quarter of 2022) were also members of the board of directors of PetSmart, Inc. (“PetSmart”). During the six months ended June 30, 2022, Legacy Appgate charged PetSmart $0.1 million and recognized revenue in the same amount from its contract with PetSmart (all during the first quarter of 2022). There were no open receivables from PetSmart as of June 30, 2022. The agreement with PetSmart was executed in 2022, and as such, no charges or revenue were recognized under such agreement in prior periods. Other Related Party Transactions

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Appgate, Inc. 2021 Incentive Compensation Plan On December 23, 2022, the Company and our Executive Chairman and Chairman of our Board agreed to cancel the Chairman Award. As of December 27, 2022, there were no time-based RSUs, 9,282,292 performance-based RSUs, and 52,678 performance-based PSUs issued and outstanding to participants under the 2021 Plan, which performance-based RSUs and performance-based PSUs were subject to certain vesting criteria. As of December 27, 2022, none of the awards had vested. Reduction in Force On July 25, 2022, we substantially completed the Reduction of approximately 22% of our workforce. In connection with the Reduction, we incurred approximately $1.8 million of costs and expenses, primarily comprising severance and termination-related costs, which we recognized in the third quarter of 2022. Revolving Credit Agreement As of December 28, 2022, we had an aggregate of $43.0 million in borrowings outstanding under the Revolving Credit Facility and were in non-compliance with one of the debt covenants under the Revolving Credit Facility due to our failure to deliver our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 to SIS Holdings within 15 days after the date such Form 10-Q was required to be filed with the SEC.

Business and Summary of Signi_2

Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation and Use of Estimates
Use of Estimates	All references to “$” or “dollars” are to the currency of the United States (“U.S.”) unless otherwise indicated. We operate on a calendar year basis. References to 2021, for example, refer to our year ended December 31, 2021.
Liquidity and Going Concern	Liquidity and Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The going concern basis of presentation assumes that the Company will continue in operation one year after the date these financial statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. Pursuant to the requirements of the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year from the date these financial statements are issued. This evaluation does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented or are not within control of the Company as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company had cash and cash equivalents and borrowing capacity under the Revolving Credit Facility (as defined in Note 11) of $9.1 million and of $29.0 million, respectively, at June 30, 2022, a loss from continuing operations of $49.6 million for the six months ended June 30, 2022, and an accumulated deficit of $523.7 million at June 30, 2022. Current economic and market conditions have put pressure on our growth plans. The Company’s ability to continue as a going concern is dependent on its ability to obtain additional capital. The Company believes that its current level of cash and cash equivalents and borrowing capacity under the Revolving Credit Facility are not sufficient to continue investing in growth, while at the same time meeting its obligations as they become due. These conditions raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year from the date of issuance of these unaudited condensed consolidated financial statements. In an effort to alleviate these conditions, management is currently evaluating various cost reduction and other alternatives and may seek to raise additional funds (in excess of the funds available to the Company under the Revolving Credit Facility) through the issuance of equity, mezzanine or debt securities, through arrangements with strategic partners, through obtaining credit from financial institutions or otherwise. The Company implemented a reduction in force (the “Reduction”) in July 2022 - see Note 19 - as well as several other cost reduction initiatives, but, as of the date of issuance of these unaudited condensed consolidated financial statements, does not have any additional funding commitment in place. The actual amount that we may be able to raise under these alternatives will depend on market conditions and other factors, as well as limitations under our Note Issuance Agreement and the Revolving Credit Agreement (as defined in Note 11). As we seek additional sources of financing, there can be no assurance that such financing would be available to us on favorable terms or at all. Our ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, our performance and investor sentiment with respect to us and our industry. As a result of these uncertainties, and notwithstanding management’s plans and efforts to date, there is substantial doubt about our ability to continue as a going concern.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Restatement of Previously Iss_2

Restatement of Previously Issued Financial Statements (Tables)	6 Months Ended
	Jun. 30, 2022
Accounting Changes and Error Corrections [Abstract]
Reconciliation of Previously Reported to Restated Figures	Following are the reconciliations of previously reported to restated figures (in thousands, except share and per share information): (As Reported) (As Restated) June 30, 2022 Adjustments June 30, 2022 ASSETS Current assets: Cash and cash equivalents $ 9,100 $ — $ 9,100 Restricted cash 1,473 — 1,473 Accounts receivable, net of allowance 6,712 — 6,712 Contract assets 1,561 (130) (a) 1,431 Deferred contract acquisition costs, current 3,914 (2,501) (b) 1,413 Prepaid and other current assets 3,583 — 3,583 Total current assets 26,343 (2,631) 23,712 Property and equipment, net 2,113 — 2,113 Operating lease right-of-use assets 2,106 — 2,106 Contract assets, noncurrent 12,972 (3,865) (a) 9,107 Deferred contract acquisition costs, noncurrent 9,965 (6,768) (b) 3,197 Goodwill 71,604 — 71,604 Intangible assets, net 30,605 — 30,605 Deferred income taxes 603 (96) (d) 507 Other assets 447 — 447 Total assets $ 156,758 $ (13,360) $ 143,398 LIABILITIES AND STOCKHOLDER’S EQUITY (DEFICIT) Current liabilities: Accounts payable $ 3,840 $ — $ 3,840 Accrued expenses 11,852 (39) (d) 11,813 Operating lease liabilities, current 714 — 714 Deferred revenue, current 6,264 (30) (a) 6,234 Revolving credit facility 21,000 — 21,000 Total current liabilities 43,670 (69) 43,601 Deferred revenue, noncurrent 623 285 (a) 908 Operating lease liabilities, noncurrent 1,619 — 1,619 Convertible senior notes, net 73,360 — 73,360 Embedded derivative liability 32,620 — 32,620 Total liabilities 151,892 216 152,108 Stockholders' equity (deficit): Preferred stock — — — Common stock 132 — 132 Additional paid-in capital 509,810 7,164 (c) 516,974 Accumulated other comprehensive loss (2,116) (30) (a) (2,146) Accumulated deficit (502,960) (20,710) (a), (b), (c), (d) (523,670) Total stockholders' equity (deficit) 4,866 (13,576) (8,710) Total liabilities and stockholders' equity (deficit) $ 156,758 $ (13,360) $ 143,398 (As Reported) (As Restated) Three Months Ended Adjustments Three Months Ended Revenue $ 11,512 $ (383) (a) $ 11,129 Cost of revenue, exclusive of amortization shown below 5,294 — 5,294 Amortization expense 954 — 954 Total cost of revenue 6,248 — 6,248 Gross profit 5,264 (383) 4,881 Operating expenses: Sales and marketing 15,143 762 (b) 15,905 Research and development 4,100 — 4,100 General and administrative 5,976 3,619 (c) 9,595 Transaction costs 2,059 — 2,059 Depreciation and amortization 1,377 — 1,377 Loss on abandonment of assets — — — Total operating expenses 28,655 4,381 33,036 Loss from continuing operations (23,391) (4,764) (28,155) Change in fair value of embedded derivative liability 92,020 — 92,020 Interest expense, net (1,343) — (1,343) Other expenses, net (276) — (276) Income (loss) from continuing operations before income taxes 67,010 (4,764) 62,246 Income tax expense of continuing operations (744) (101) (d) (845) Net income (loss) from continuing operations 66,266 (4,865) 61,401 Net income from discontinued operations, net of tax — — — Net income (loss) $ 66,266 $ (4,865) $ 61,401 Income (loss) per share: Net income (loss) from continuing operations per share of common stock - basic $ 0.50 $ (0.03) $ 0.47 Net loss from continuing operations per share of common stock - diluted $ (0.18) $ (0.03) $ (0.21) Weighted-average shares used in computation: Basic 131,793,660 — 131,793,660 Diluted 142,776,465 — 142,776,465 (As Reported) (As Restated) Six Months Ended Adjustments Six Months Ended Cash flows from operating activities: Net income $ 1,672 $ (9,373) $ (7,701) Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 4,654 — 4,654 Loss on abandonment of assets 1,658 — 1,658 Equity-based compensation 224 7,164 (c) 7,388 Amortization of deferred contract acquisition costs 2,101 1,361 (b) 3,462 Change in fair value of embedded derivative liability (45,877) — (45,877) Amortization of debt issuance costs 393 — 393 Operating leases, net 151 — 151 (Reversal of) Provision for allowance for doubtful accounts 368 — 368 Deferred income taxes 180 166 (d) 346 Changes in assets and liabilities: — Accounts receivable (297) — (297) Contract assets (1,094) 644 (a) (450) Prepaid and other current assets 2,537 — 2,537 Due from affiliates, net — — — Deferred contract acquisition costs (3,302) — (3,302) Other assets — — — Accounts payable (655) — (655) Accrued expenses (428) — (428) Deferred revenue 1,191 38 (a) 1,229 Other current liabilities — — — Other liabilities — — — Net cash, cash equivalents and restricted cash used in operating activities (36,524) — (36,524) Cash flows from investing activities: Purchases of property and equipment (504) — (504) Net cash, cash equivalents and restricted cash used in investing activities (504) — (504) Cash flows from financing activities: Proceeds from revolving credit facility 21,000 — 21,000 Net cash, cash equivalents and restricted cash provided by financing activities 21,000 — 21,000 Effect of foreign currency exchange rates on cash (862) — (862) Net decrease in cash, cash equivalents and restricted cash (16,890) — (16,890) Cash, cash equivalents and restricted cash at beginning of period 27,463 — 27,463 Cash, cash equivalents and restricted cash at end of period $ 10,573 $ — $ 10,573 Cash and cash equivalents $ 9,100 — $ 9,100 Restricted cash 1,473 — 1,473 Total cash, cash equivalents and restricted cash at end of period $ 10,573 $ — $ 10,573 Footnotes to tables: (a) Accounting adjustment related to the Revenue Recognition Error. (b) Accounting adjustment related to the Amortization Error. (c) Accounting adjustment related to the Equity Compensation Error. (d) Accounting adjustment resulting from the impact of the corrections of (a), (b) and (c) on our income tax expense.

(Loss) Income per Common Share

(Loss) Income per Common Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table summarizes the basic and diluted earnings per share calculations (in thousands, except share and per share amounts). Discontinued operations calculation for the three months ended June 30, 2022 and 2021 have been omitted as we did not have net income from discontinued operations during those periods. Three Months Ended Six Months Ended Six Months Ended 2022 2021 2022 2021 2022 2021 (As Restated) (As Restated) (As Restated) Continuing operations Continuing operations Discontinued operations Numerator: Net income (loss) attributable to common stockholders - basic $ 61,401 $ (15,787) $ (7,701) $ (26,585) $ — $ 65,689 Add: Effect of mark-to-market adjustment recognized during the period (92,020) — (45,877) — — — Net (loss) income attributable to common stockholders - diluted $ (30,619) $ (15,787) $ (53,578) $ (26,585) $ — $ 65,689 Denominator: Weighted-average shares of common stock - basic 131,793,660 14,643,740 131,793,660 14,207,989 131,793,660 14,207,989 Effect from conversion of shares of common stock under the Convertible Senior Notes (Note 11) 10,982,805 10,982,805 10,982,805 10,982,805 10,982,805 10,982,805 Weighted-average shares of common stock - diluted 142,776,465 25,626,545 142,776,465 25,190,794 142,776,465 25,190,794 Basic income (loss) per share $ 0.47 $ (1.08) $ (0.06) $ (1.87) $ — $ 4.62 Diluted (loss) income per share $ (0.21) $ (1.08) $ (0.38) $ (1.87) $ — $ 4.62

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Income Attributable to Discontinued Operations	The major items constituting net income attributable to discontinued operations for the six months ended June 30, 2021 are presented below (in thousands): Revenue $ 2,111 Cost of revenue 142 Gross profit 1,969 Operating expenses: Sales and marketing 265 Research and development 290 Total operating expenses 555 Income from operations 1,414 Gain on the disposal of the discontinued operation 64,621 Income from discontinued operations 66,035 Income tax expense of discontinued operations (346) Net income from discontinued operations, net of tax $ 65,689

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	Disaggregation of Revenue The following table summarizes our revenue by category (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 (As Restated) (As Restated) Subscription revenue: Multi-year subscription term-based licenses $ 4,179 $ 2,875 $ 7,010 $ 4,665 1-year subscription term-based licenses 2,013 1,788 4,816 3,549 Total subscription term-based licenses 6,192 4,663 11,826 8,214 Subscription SaaS 2,142 2,398 4,438 4,726 Support and maintenance 965 1,021 1,898 2,010 Total subscription revenue 9,299 8,082 18,162 14,950 Perpetual licenses 351 58 507 1,371 Services and other 1,479 1,257 3,538 3,113 Total $ 11,129 $ 9,397 $ 22,207 $ 19,434
Schedule of Revenue by Geographic Areas	The following table summarizes revenue (in thousands) by country and main geography in which we operate based on the billing address of customers (including, for the avoidance of doubt, resellers and managed service providers) who have contracted with us: Three Months Ended Six Months Ended 2022 2021 2022 2021 (As Restated) (As Restated) Revenues by country (a): United States $ 5,709 $ 4,603 $ 11,561 $ 8,460 Colombia 1,282 1,329 2,909 2,681 Other 4,138 3,465 7,737 8,293 Total $ 11,129 $ 9,397 $ 22,207 $ 19,434 Revenues by main geography: US&C $ 6,280 $ 5,197 $ 12,987 $ 10,087 LATAM 3,371 3,031 6,540 7,307 EMEA 853 728 1,525 1,242 APAC 625 441 1,155 798 Total $ 11,129 $ 9,397 $ 22,207 $ 19,434 (a) Only the United States and Colombia represented 10% or more of our total revenue in the periods presented.
Schedule of Deferred Contract Acquisition Costs	The following table summarizes the activity of the deferred contract acquisition costs (in thousands): (As Restated) Six Months Ended Year Ended June 30, December 31, 2022 2021 Beginning balance $ 4,305 $ 3,061 Capitalization of contract acquisition costs 3,743 6,193 Amortization of deferred contract acquisition costs (3,462) (5,333) Impacts of foreign currency translation 24 384 Ending balance $ 4,610 $ 4,305 Deferred contract acquisition costs, current $ 1,413 $ 1,319 Deferred contract acquisition costs, noncurrent $ 3,197 $ 2,986

Financial Instruments and Fai_2

Financial Instruments and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Liabilities Measured on Recurring Basis	The following table summarizes fair value measurements by level at June 30, 2022 and December 31, 2021 for instruments measured at fair value on a recurring basis (in thousands): Level 1 Level 2 Level 3 Total June 30, 2022 Financial liability: Embedded derivative liability $ — $ — $ 32,620 $ 32,620 December 31, 2021 Financial liability: Embedded derivative liability $ — $ — $ 78,497 $ 78,497
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table presents the changes in Level 3 liabilities measured at fair value on a recurring basis during the three and six months ended June 30, 2022 (in thousands): Embedded derivative liability Total liabilities Balance at January 1, 2022 $ 78,497 $ 78,497 Loss included in earnings 46,143 46,143 Balance as of March 31, 2022 124,640 124,640 Gain included in earnings (92,020) (92,020) Balance as of June 30, 2022 $ 32,620 $ 32,620

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable, Allowance for Doubtful Accounts	The activity in the allowance for doubtful accounts was as follows (in thousands): Six Months Ended Year Ended June 30, December 31, 2022 2021 Beginning balance $ 163 $ 437 Provision for (Reversal of) allowance for doubtful accounts 368 (95) Write offs (319) (218) Impacts of foreign currency translation (1) 39 Ending balance $ 211 $ 163
Schedule of Prepaid and Other Current Assets	Our prepaid and other current assets consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Prepaid expenses $ 3,281 $ 4,247 Withholding taxes 302 394 Deferred costs — 1,555 Total 3,583 6,196
Schedule of Property and Equipment, Net	Our property and equipment, net consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Leasehold improvements $ 4,024 $ 4,225 Equipment and fixtures 4,350 4,233 8,374 8,458 Less: accumulated depreciation and amortization (6,261) (6,343) Property and equipment, net $ 2,113 $ 2,115

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Acquired Finite-Lived Intangible Assets	Acquired intangibles subject to amortization consist of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Weighted Gross Accumulated Net Gross Accumulated Net Customer relationships $ 30,157 $ (17,328) $ 12,829 $ 30,157 $ (15,706) $ 14,451 4.1 Trademarks and tradenames 17,932 (8,161) 9,771 18,732 (8,051) 10,681 8.5 Developed technology 34,276 (26,271) 8,005 38,881 (27,554) 11,327 2.3 Total $ 82,365 $ (51,760) $ 30,605 $ 87,770 $ (51,311) $ 36,459
Schedule of Future Amortization Expense	Future amortization expense of intangible assets is as follows (in thousands): For the years ending: Remaining 2022 $ 4,175 2023 7,941 2024 7,377 2025 4,224 2026 2,304 Thereafter 4,584 Total $ 30,605

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Schedule of Lease, Cost	The following is a summary of our operating lease costs for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease cost $ 218 $ 237 $ 492 $ 481 Short-term lease cost 94 12 123 25 Variable lease cost 19 16 23 39 Total operating lease costs $ 331 $ 265 $ 638 $ 545
Schedule of Assets And Liabilities, Lessee	The following table presents information about leases on our condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Operating lease right-of-use assets $ 2,106 $ 2,497 Operating lease liabilities, current $ 714 $ 798 Operating lease liabilities, noncurrent $ 1,619 $ 1,891
Schedule of Lessee, Operating Lease, Liability, Maturity	Maturities of operating lease liabilities consisted of the following as of June 30, 2022 (in thousands): For the years ending: Remaining 2022 $ 399 2023 629 2024 560 2025 533 2026 357 Thereafter 27 Total future minimum lease payments 2,505 Less: Imputed interest (172) Total $ 2,333

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Schedule of Debt	Our debt consists of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Revolving Credit Facility $ 21,000 $ — Principal amount of Convertible Senior Notes 75,000 75,000 Unamortized debt issuance costs (1,640) (2,032) Net carrying amount 73,360 72,968 Total debt $ 94,360 $ 72,968
Schedule of Interest Income and Interest Expense Disclosure	Interest expense, net was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest expense on Revolving Credit Facility $ 209 $ — $ 209 $ — Interest expense on Convertible Senior Notes 938 625 1,875 972 Interest expense on Promissory Notes (Note 4) — — — 472 Amortization of debt issuance costs 198 16 393 25 Other, net (2) 2 (3) 7 Total interest expense, net $ 1,343 $ 643 $ 2,474 $ 1,476

Profit Interest Units of SIS _2

Profit Interest Units of SIS Holdings LP (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Equity-Based Compensation Expense	Equity-based compensation costs were as follows for the three and six months ended June 30, 2022 and 2021 and are included in the following captions in our condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue $ — $ 131 $ 62 $ 262 Sales and marketing 81 537 162 1,104 Research and development — 100 — 211 General and administrative — 189 — 390 Total $ 81 $ 957 $ 224 $ 1,967

Appgate, Inc. 2021 Incentive _2

Appgate, Inc. 2021 Incentive Compensation Plan (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Nonvested Share Activity	The following table summarizes nonvested RSUs and PSUs activity for the three and six months ended June 30, 2022: RSUs PSUs Time-based Performance-based Performance-based Shares Weighted-average grant date fair value Shares Weighted-average grant date fair value Shares Weighted-average grant date fair value Nonvested at December 31, 2021 — $ — — $ — — $ — Granted 1,102,217 13.00 4,436,129 13.14 58,519 13.17 Vested — 0.00 — 0.00 — 0.00 Forfeited — 0.00 (107,748) 13.00 (1,433) 13.00 Nonvested at March 31, 2022 1,102,217 13.00 4,328,381 13.14 57,086 13.17 Granted — 0.00 192,869 12.81 5,145 11.14 Vested — 0.00 — 0.00 — 0.00 Forfeited — 0.00 (97,974) 13.15 (4,661) 12.86 Nonvested at June 30, 2022 1,102,217 $ 13.00 4,423,276 $ 13.13 57,570 $ 13.02

401(k) Savings Plan (Tables)

401(k) Savings Plan (Tables)	6 Months Ended
	Jun. 30, 2022
Retirement Benefits [Abstract]
Schedule of 401(k) Savings Plan	are included in the following captions in the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue $ 133 $ 100 $ 219 $ 176 Sales and marketing 313 170 538 300 Research and development 227 135 382 238 General and administrative 112 55 171 99 Total $ 785 $ 460 $ 1,310 $ 813

Restatement of Previously Iss_3

Restatement of Previously Issued Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 11,129	$ 9,397	$ 22,207	$ 19,434
Total restatement impact to accumulated deficit	(523,670)		(523,670)		$ (515,969)
Sales and marketing	15,905	9,814	28,141	17,351
Operating expenses	33,036	18,556	60,095	33,311
Deferred contract acquisition costs	4,610		4,610		4,305	$ 3,061
Total pre-tax restatement adjustments to continuing operations	62,246	(15,195)	(6,565)	(25,581)
Accumulated other comprehensive loss	(2,146)		(2,146)		(1,985)
General and administrative	9,595	4,624	18,057	7,974
Additional paid-in capital	516,974		516,974		$ 509,586
Income tax expense of continuing operations	845	$ 592	1,136	$ 1,004
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	(383)
Total restatement impact to accumulated deficit	(20,710)		(20,710)
Sales and marketing	762
Operating expenses	4,381
Total pre-tax restatement adjustments to continuing operations	(4,764)
Accumulated other comprehensive loss	(30)		(30)
General and administrative	3,619
Additional paid-in capital	7,164		7,164
Income tax expense of continuing operations	101		100
Accounting for revenue recognition | Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	(400)
Contract assets	(4,000)		(4,000)
Deferred revenue	300		300
Total restatement impact to accumulated deficit	3,800		3,800
Accounting for incremental costs to obtain a contract with a customer | Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total restatement impact to accumulated deficit	9,900		9,900
Sales and marketing			800
Deferred contract acquisition costs	(9,300)		(9,300)
Accumulated other comprehensive loss	(30)		(30)
Equity Based Compensation Error | Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total restatement impact to accumulated deficit	7,200		7,200
General and administrative			3,600
Additional paid-in capital	$ 7,200		$ 7,200

Restatement of Previously Iss_4

Restatement of Previously Issued Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and cash equivalents	$ 9,100		$ 25,990	$ 33,109
Restricted cash	1,473		1,473	1,437
Accounts receivable, net of allowance of $211 and $163, respectively	6,712		6,848
Contract assets	1,431		1,458
Deferred contract acquisition costs, current	1,413		1,319
Prepaid and other current assets	3,583		6,196
Total current assets	23,712		43,284
Property and equipment, net	2,113		2,115
Operating lease right-of-use assets	2,106		2,497
Contract assets, noncurrent	9,107		8,630
Deferred contract acquisition costs, noncurrent	3,197		2,986
Goodwill	71,604		71,604
Intangible assets, net	30,605		36,459
Deferred income taxes	507		863
Other assets	447		147
Total assets	143,398		168,585
Accounts payable	3,840		4,483
Accrued expenses	11,813		12,193
Operating lease liabilities, current	714		798
Deferred revenue, current	6,234		5,274
Revolving credit facility	21,000		0
Total current liabilities	43,601		22,748
Deferred revenue, noncurrent	908		717
Operating lease liabilities, noncurrent	1,619		1,891
Convertible senior notes, net	73,360		72,968
Fair value of embedded derivative liability	32,620		78,497
Total liabilities	152,108		176,821
Preferred stock	0		0
Common stock	132		132
Additional paid-in capital	516,974		509,586
Accumulated other comprehensive loss	(2,146)		(1,985)
Accumulated deficit	(523,670)		(515,969)
Stockholders' Equity Attributable to Parent	(8,710)	$ (73,395)	(8,236)	$ 105,147	$ 121,056	$ 28,192
Total liabilities and stockholders’ deficit	143,398		$ 168,585
(As Reported)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and cash equivalents	9,100
Restricted cash	1,473
Accounts receivable, net of allowance of $211 and $163, respectively	6,712
Contract assets	1,561
Deferred contract acquisition costs, current	3,914
Prepaid and other current assets	3,583
Total current assets	26,343
Property and equipment, net	2,113
Operating lease right-of-use assets	2,106
Contract assets, noncurrent	12,972
Deferred contract acquisition costs, noncurrent	9,965
Goodwill	71,604
Intangible assets, net	30,605
Deferred income taxes	603
Other assets	447
Total assets	156,758
Accounts payable	3,840
Accrued expenses	11,852
Operating lease liabilities, current	714
Deferred revenue, current	6,264
Revolving credit facility	21,000
Total current liabilities	43,670
Deferred revenue, noncurrent	623
Operating lease liabilities, noncurrent	1,619
Convertible senior notes, net	73,360
Fair value of embedded derivative liability	32,620
Total liabilities	151,892
Preferred stock	0
Common stock	132
Additional paid-in capital	509,810
Accumulated other comprehensive loss	(2,116)
Accumulated deficit	(502,960)
Stockholders' Equity Attributable to Parent	4,866
Total liabilities and stockholders’ deficit	156,758
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and cash equivalents	0
Restricted cash	0
Accounts receivable, net of allowance of $211 and $163, respectively	0
Contract assets	(130)
Deferred contract acquisition costs, current	(2,501)
Prepaid and other current assets	0
Total current assets	(2,631)
Property and equipment, net	0
Operating lease right-of-use assets	0
Contract assets, noncurrent	(3,865)
Deferred contract acquisition costs, noncurrent	(6,768)
Goodwill	0
Intangible assets, net	0
Deferred income taxes	(96)
Other assets	0
Total assets	(13,360)
Accounts payable	0
Accrued expenses	(39)
Operating lease liabilities, current	0
Deferred revenue, current	(30)
Revolving credit facility	0
Total current liabilities	(69)
Deferred revenue, noncurrent	285
Operating lease liabilities, noncurrent	0
Convertible senior notes, net	0
Fair value of embedded derivative liability	0
Total liabilities	216
Preferred stock	0
Common stock	0
Additional paid-in capital	7,164
Accumulated other comprehensive loss	(30)
Accumulated deficit	(20,710)
Stockholders' Equity Attributable to Parent	(13,576)
Total liabilities and stockholders’ deficit	$ (13,360)

Restatement of Previously Iss_5

Restatement of Previously Issued Financial Statements - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 11,129		$ 9,397		$ 22,207	$ 19,434
Cost of revenue, exclusive of amortization shown below	5,294		4,169		9,792	7,747
Amortization expense	954		1,131		1,908	2,262
Total cost of revenue	6,248		5,300		11,700	10,009
Gross profit	4,881		4,097		10,507	9,425
Sales and marketing	15,905		9,814		28,141	17,351
Research and development	4,100		2,723		7,434	4,920
General and administrative	9,595		4,624		18,057	7,974
Transaction costs	2,059		43		2,059	373
Depreciation and amortization	1,377		1,352		2,746	2,693
Loss on abandonment of assets	0		0		1,658	0
Total operating expenses	33,036		18,556		60,095	33,311
Loss from continuing operations	(28,155)		(14,459)		(49,588)	(23,886)
Change in fair value of embedded derivative liability	92,020		0		45,877	0
Interest expense, net	(1,343)		(643)		(2,474)	(1,476)
Other expenses, net	(276)		(93)		(380)	(219)
Income (loss) from continuing operations before income taxes	62,246		(15,195)		(6,565)	(25,581)
Income tax expense of continuing operations	(845)		(592)		(1,136)	(1,004)
Net income (loss) from continuing operations	61,401		(15,787)		(7,701)	(26,585)
Net income from discontinued operations, net of tax	0		0		0	65,689
Net income (loss)	$ 61,401	$ (69,102)	$ (15,787)	$ 54,891	$ (7,701)	$ 39,104
Net income (loss) from continuing operations per share of common stock - basic (in dollars per share)	$ 0.47		$ (1.08)		$ (0.06)	$ (1.87)
Net loss from continuing operations per share of common stock - diluted (in dollars per share)	(0.21)		(1.08)		(0.38)	(1.87)
Net income from discontinued operations per share of common stock - basic (in dollars per share)	0		0		0	4.62
Net income from discontinued operations per share of common stock - diluted (in dollars per share)	$ 0		$ 0		$ 0	$ 4.62
Weighted-average shares used in computation - basic (in shares)	131,793,660		14,643,740		131,793,660	14,207,989
Weighted-average shares used in computation - diluted (in shares)	142,776,465		14,643,740		142,776,465	14,207,989
(As Reported)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 11,512
Cost of revenue, exclusive of amortization shown below	5,294
Amortization expense	954
Total cost of revenue	6,248
Gross profit	5,264
Sales and marketing	15,143
Research and development	4,100
General and administrative	5,976
Transaction costs	2,059
Depreciation and amortization	1,377
Loss on abandonment of assets	0				$ 1,658
Total operating expenses	28,655
Loss from continuing operations	(23,391)
Change in fair value of embedded derivative liability	92,020				45,877
Interest expense, net	(1,343)
Other expenses, net	(276)
Income (loss) from continuing operations before income taxes	67,010
Income tax expense of continuing operations	(744)
Net income (loss) from continuing operations	66,266
Net income from discontinued operations, net of tax	0
Net income (loss)	$ 66,266				1,672
Net income (loss) from continuing operations per share of common stock - basic (in dollars per share)	$ 0.50
Net loss from continuing operations per share of common stock - diluted (in dollars per share)	$ (0.18)
Weighted-average shares used in computation - basic (in shares)	131,793,660
Weighted-average shares used in computation - diluted (in shares)	142,776,465
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ (383)
Cost of revenue, exclusive of amortization shown below	0
Amortization expense	0
Total cost of revenue	0
Gross profit	(383)
Sales and marketing	762
Research and development	0
General and administrative	3,619
Transaction costs	0
Depreciation and amortization	0
Loss on abandonment of assets	0				0
Total operating expenses	4,381
Loss from continuing operations	(4,764)
Change in fair value of embedded derivative liability	0				0
Interest expense, net	0
Other expenses, net	0
Income (loss) from continuing operations before income taxes	(4,764)
Income tax expense of continuing operations	(101)				(100)
Net income (loss) from continuing operations	(4,865)
Net income from discontinued operations, net of tax	0
Net income (loss)	$ (4,865)				$ (9,373)
Net income (loss) from continuing operations per share of common stock - basic (in dollars per share)	$ (0.03)
Net loss from continuing operations per share of common stock - diluted (in dollars per share)	$ (0.03)
Weighted-average shares used in computation - basic (in shares)	0
Weighted-average shares used in computation - diluted (in shares)	0

Restatement of Previously Iss_6

Restatement of Previously Issued Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)	$ 61,401	$ (69,102)	$ (15,787)	$ 54,891	$ (7,701)	$ 39,104
Net income from discontinued operations, including gain on sale of $64.6 million, net of tax in 2021					0	(65,689)
Depreciation and amortization					4,654	4,955
Equity-based compensation					7,388	1,967
Amortization of deferred contract acquisition costs					3,462	2,510	$ 5,333
Loss on abandonment of assets	0		0		1,658	0
Change in fair value of embedded derivative liability	(92,020)		0		(45,877)	0
Amortization of debt issuance costs	198		16		393	25
Operating lease amortization					151	134
Provision for (Reversal of) allowance for doubtful accounts					368	(52)	(95)
Deferred income taxes					346	(553)
Accounts receivable					(297)	(3,388)
Contract assets					(450)	(3,695)
Prepaid and other current assets					2,537	(2,590)
Due from affiliates, net					0	3,252
Deferred contract acquisition costs					(3,302)	(768)
Other assets					0	5
Accounts payable					(655)	(3,785)
Accrued expenses					(428)	(3,640)
Deferred revenue					1,229	1,167
Other current liabilities					0	(11)
Other liabilities					0
Net cash, cash equivalents and restricted cash used in operating activities of continuing operations					(36,524)	(31,052)
Net cash, cash equivalents and restricted cash provided by operating activities of discontinued operations					0	1,166
Net cash, cash equivalents and restricted cash used in operating activities					(36,524)	(29,886)
Purchases of property and equipment					(504)	(467)
Net cash, cash equivalents and restricted cash used in investing activities of continuing operations					(504)	(467)
Net cash, cash equivalents and restricted cash provided by investing activities of discontinued operations					0	125,022
Net cash, cash equivalents and restricted cash provided by (used in) investing activities					(504)	124,555
Proceeds from convertible senior notes					0	50,000
Payment of debt issuance costs					0	(180)
Repayment of Promissory Notes					0	(119,640)
Repayment of finance leases					0	(12)
Net cash, cash equivalents and restricted cash provided by (used in) financing activities of continuing operations					21,000	(69,832)
Effect of foreign currency exchange rates on cash					(862)	4,088
Net (decrease) increase in cash, cash equivalents and restricted cash					(16,890)	28,925
Cash, cash equivalents and restricted cash at beginning of period		27,463		$ 5,621	27,463	5,621	5,621
Cash, cash equivalents and restricted cash at end of period	10,573		34,546		10,573	34,546	27,463
Cash, cash equivalents and restricted cash of continuing operations at end of period	10,573		34,546		10,573	34,546
Cash, cash equivalents and restricted cash of continuing operations at end of period	10,573		34,546		10,573	34,546
Cash and cash equivalents	9,100		33,109		9,100	33,109	25,990
Restricted cash	1,473		$ 1,437		1,473	1,437	1,473
Proceeds from revolving credit facility					21,000	$ 0
(As Reported)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)	66,266				1,672
Depreciation and amortization					4,654
Equity-based compensation					224
Amortization of deferred contract acquisition costs					2,101
Loss on abandonment of assets	0				1,658
Change in fair value of embedded derivative liability	(92,020)				(45,877)
Amortization of debt issuance costs					393
Operating lease amortization					151
Provision for (Reversal of) allowance for doubtful accounts					368
Deferred income taxes					180
Accounts receivable					(297)
Contract assets					(1,094)
Prepaid and other current assets					2,537
Due from affiliates, net					0
Deferred contract acquisition costs					(3,302)
Other assets					0
Accounts payable					(655)
Accrued expenses					(428)
Deferred revenue					1,191
Other current liabilities					0
Other liabilities					0
Net cash, cash equivalents and restricted cash used in operating activities of continuing operations					(36,524)
Purchases of property and equipment					(504)
Net cash, cash equivalents and restricted cash used in investing activities of continuing operations					(504)
Net cash, cash equivalents and restricted cash provided by (used in) financing activities of continuing operations					21,000
Effect of foreign currency exchange rates on cash					(862)
Net (decrease) increase in cash, cash equivalents and restricted cash					(16,890)
Cash, cash equivalents and restricted cash at beginning of period		27,463			27,463
Cash, cash equivalents and restricted cash at end of period	10,573				10,573		27,463
Cash, cash equivalents and restricted cash of continuing operations at end of period	10,573				10,573
Cash, cash equivalents and restricted cash of continuing operations at end of period	10,573				10,573
Cash and cash equivalents	9,100				9,100
Restricted cash	1,473				1,473
Proceeds from revolving credit facility					21,000
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)	(4,865)				(9,373)
Depreciation and amortization					0
Equity-based compensation					7,164
Amortization of deferred contract acquisition costs					1,361
Loss on abandonment of assets	0				0
Change in fair value of embedded derivative liability	0				0
Amortization of debt issuance costs					0
Operating lease amortization					0
Provision for (Reversal of) allowance for doubtful accounts					0
Deferred income taxes					166
Accounts receivable					0
Contract assets					644
Prepaid and other current assets					0
Due from affiliates, net					0
Deferred contract acquisition costs					0
Other assets					0
Accounts payable					0
Accrued expenses					0
Deferred revenue					38
Other current liabilities					0
Other liabilities					0
Net cash, cash equivalents and restricted cash used in operating activities of continuing operations					0
Purchases of property and equipment					0
Net cash, cash equivalents and restricted cash used in investing activities of continuing operations					0
Net cash, cash equivalents and restricted cash provided by (used in) financing activities of continuing operations					0
Effect of foreign currency exchange rates on cash					0
Net (decrease) increase in cash, cash equivalents and restricted cash					0
Cash, cash equivalents and restricted cash at beginning of period		$ 0			0
Cash, cash equivalents and restricted cash at end of period	0				0		$ 0
Cash, cash equivalents and restricted cash of continuing operations at end of period	0				0
Cash, cash equivalents and restricted cash of continuing operations at end of period	0				0
Cash and cash equivalents	0				0
Restricted cash	$ 0				0
Proceeds from revolving credit facility					$ 0

Business and Summary of Signi_3

Business and Summary of Significant Accounting Policies - Narratives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Line of Credit Facility [Line Items]
Operating Income (Loss)	$ (28,155)	$ (14,459)	$ (49,588)	$ (23,886)
Cash and cash equivalents	9,100	$ 33,109	9,100	$ 33,109	$ 25,990
Accumulated deficit	(523,670)		(523,670)		$ (515,969)
Interest expense on Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Borrowing capacity under the Revolving Credit Facility	$ 29,000		$ 29,000

(Loss) Income per Common Shar_2

(Loss) Income per Common Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Continuing operations
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Effect from conversion of shares of common stock under our convertible senior notes (in shares)	10,982,805	10,982,805	10,982,805	10,982,805

(Loss) Income per Common Shar_3

(Loss) Income per Common Share - Summarizes the Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Denominator:
Weighted-average shares of common stock - basic (in shares)	131,793,660	14,643,740	131,793,660	14,207,989
Weighted-average shares of common stock - diluted (in shares)	142,776,465	14,643,740	142,776,465	14,207,989
Basic income (loss) per share, continuing operations (in dollars per share)	$ 0.47	$ (1.08)	$ (0.06)	$ (1.87)
Diluted (loss) income per share, continuing operations (in dollars per share)	(0.21)	(1.08)	(0.38)	(1.87)
Basic income (loss) per share, discontinued operations (in dollars per share)	0	0	0	4.62
Diluted (loss) income per share, discontinued operations (in dollars per share)	$ 0	$ 0	$ 0	$ 4.62
Continuing operations
Continuing operations
Net income (loss) attributable to common stockholders - basic	$ 61,401	$ (15,787)	$ (7,701)	$ (26,585)
Add: Effect of mark-to-market adjustment recognized during the period	(92,020)	0	(45,877)	0
Net (loss) income attributable to common stockholders - diluted	$ (30,619)	$ (15,787)	$ (53,578)	$ (26,585)
Denominator:
Weighted-average shares of common stock - basic (in shares)	131,793,660	14,643,740	131,793,660	14,207,989
Effect from conversion of shares of common stock under the Convertible Senior Notes (in shares)	10,982,805	10,982,805	10,982,805	10,982,805
Weighted-average shares of common stock - diluted (in shares)	142,776,465	25,626,545	142,776,465	25,190,794
Basic income (loss) per share, continuing operations (in dollars per share)	$ 0.47	$ (1.08)	$ (0.06)	$ (1.87)
Diluted (loss) income per share, continuing operations (in dollars per share)	$ (0.21)	$ (1.08)	$ (0.38)	$ (1.87)
Discontinued operations
Discontinued operations
Net income (loss) attributable to common stockholders - basic			$ 0	$ 65,689
Add: Effect of mark-to-market adjustment recognized during the period			0	0
Net (loss) income attributable to common stockholders - diluted			$ 0	$ 65,689
Denominator:
Weighted-average shares of common stock - basic (in shares)			131,793,660	14,207,989
Effect from conversion of shares of common stock under the Convertible Senior Notes (in shares)			10,982,805	10,982,805
Weighted-average shares of common stock - diluted (in shares)			142,776,465	25,190,794
Basic income (loss) per share, discontinued operations (in dollars per share)			$ 0	$ 4.62
Diluted (loss) income per share, discontinued operations (in dollars per share)			$ 0	$ 4.62

Transactions With Former Pare_2

Transactions With Former Parent - Cyxtera (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Feb. 08, 2021	Jun. 30, 2021	Jun. 30, 2021	Mar. 31, 2019	Dec. 31, 2017
Related Party Promissory Notes
Related Party Transaction [Line Items]
Interest expense			$ 500
Cyxtera
Related Party Transaction [Line Items]
Service provider fees, related party, annual amount					$ 1,000
Payment to related party	$ 1,000
Due to related party	2,600
Capital contribution	1,600
Cyxtera | Related Party Promissory Notes
Related Party Transaction [Line Items]
Repayments of promissory notes	20,600
Management Company
Related Party Transaction [Line Items]
Management fee expense		$ 100	100
Service fee income		$ 48	100
Promissory notes, principal and interest outstanding	133,600
Deemed contribution, related party debt extinguishment			$ 34,600
Management Company | Related Party Promissory Notes
Related Party Transaction [Line Items]
Repayments of promissory notes	$ 99,000
Cyxtera and Management Company | Related Party Promissory Notes
Related Party Transaction [Line Items]
Promissory notes, outstanding amount				$ 95,200
Promissory notes, additional amount borrowable				52,500
Promissory notes, aggregate amount borrowable				$ 147,700
Interest rate				3%

Discontinued Operations - Narra

Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands		6 Months Ended
	Jan. 20, 2021	Jun. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on the disposal of the discontinued operation		$ 64,600
Brainspace
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership interest sold	100%
Consideration for sale of discontinued operation	$ 125,000
Gain on the disposal of the discontinued operation	$ 64,600	$ 64,621

Discontinued Operations - Major

Discontinued Operations - Major Components of Net Income (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jan. 20, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating expenses:
Gain on the disposal of the discontinued operation					$ 64,600
Net income from discontinued operations, net of tax		$ 0	$ 0	$ 0	65,689
Brainspace
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue					2,111
Cost of revenue					142
Gross profit					1,969
Operating expenses:
Sales and marketing					265
Research and development					290
Total operating expenses					555
Income from operations					1,414
Gain on the disposal of the discontinued operation	$ 64,600				64,621
Income from discontinued operations					66,035
Income tax expense of discontinued operations					(346)
Net income from discontinued operations, net of tax					$ 65,689

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 11,129	$ 9,397	$ 22,207	$ 19,434
Total subscription revenue
Disaggregation of Revenue [Line Items]
Revenue	9,299	8,082	18,162	14,950
Total subscription term-based licenses
Disaggregation of Revenue [Line Items]
Revenue	6,192	4,663	11,826	8,214
Multi-year subscription term-based licenses
Disaggregation of Revenue [Line Items]
Revenue	4,179	2,875	7,010	4,665
1-year subscription term-based licenses
Disaggregation of Revenue [Line Items]
Revenue	2,013	1,788	4,816	3,549
Subscription SaaS
Disaggregation of Revenue [Line Items]
Revenue	2,142	2,398	4,438	4,726
Support and maintenance
Disaggregation of Revenue [Line Items]
Revenue	965	1,021	1,898	2,010
Perpetual licenses
Disaggregation of Revenue [Line Items]
Revenue	351	58	507	1,371
Services and other
Disaggregation of Revenue [Line Items]
Revenue	$ 1,479	$ 1,257	$ 3,538	$ 3,113

Revenue - Revenue by Geographic

Revenue - Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 11,129	$ 9,397	$ 22,207	$ 19,434
United States
Disaggregation of Revenue [Line Items]
Revenue	$ 5,709	$ 4,603	$ 11,561	$ 8,460
United States | Geographic Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk, percentage, at least	10%	10%	10%	10%
Colombia
Disaggregation of Revenue [Line Items]
Revenue	$ 1,282	$ 1,329	$ 2,909	$ 2,681
Colombia | Geographic Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk, percentage, at least	10%	10%	10%	10%
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 4,138	$ 3,465	$ 7,737	$ 8,293
US&C
Disaggregation of Revenue [Line Items]
Revenue	6,280	5,197	12,987	10,087
LATAM
Disaggregation of Revenue [Line Items]
Revenue	3,371	3,031	6,540	7,307
EMEA
Disaggregation of Revenue [Line Items]
Revenue	853	728	1,525	1,242
APAC
Disaggregation of Revenue [Line Items]
Revenue	$ 625	$ 441	$ 1,155	$ 798

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Capitalized Contract Cost [Line Items]
Contract liability, revenue recognized	$ 2,600,000	$ 4,400,000	$ 4,900,000
Description of payment terms		Payment terms on invoiced amounts are typically 30 days to 45 days
Unbilled receivables	10,500,000	$ 10,500,000		$ 10,100,000
Capitalized contract cost, impairment loss		0	$ 0
Sales commissions accrued but not paid	$ 1,200,000	$ 1,200,000		$ 1,400,000
Minimum
Capitalized Contract Cost [Line Items]
Contractual term for term-based licenses and support and maintenance		1 year
Maximum
Capitalized Contract Cost [Line Items]
Contractual term for term-based licenses and support and maintenance		3 years

Revenue - Remaining Performance

Revenue - Remaining Performance Obligation (Details) $ in Millions	Jun. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 34.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	48%
Remaining performance obligation, expected timing of satisfaction, period	12 months

Revenue - Capitalized Contract

Revenue - Capitalized Contract Costs (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Capitalized Contract Cost Activity [Roll Forward]
Beginning balance	$ 4,305	$ 3,061	$ 3,061
Capitalization of contract acquisition costs	3,743		6,193
Amortization of deferred contract acquisition costs	(3,462)	$ (2,510)	(5,333)
Impacts of foreign currency translation	24		384
Ending balance	4,610		4,305
Deferred contract acquisition costs, current	1,413		1,319
Deferred contract acquisition costs, noncurrent	$ 3,197		$ 2,986

Financial Instruments and Fai_3

Financial Instruments and Fair Value Measurements - Narrative (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible notes, carrying value	$ 73.4	$ 73
Convertible notes, fair value	$ 62.3	$ 69.5
Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, remaining term	1 year 7 months 6 days	2 years 1 month 6 days
Notes | Convertible Debt | Measurement Input, Price Volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, measurement input	0.691	0.640
Notes | Convertible Debt | Measurement Input, Risky Bond Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, measurement input	0.1733	0.0885

Financial Instruments and Fai_4

Financial Instruments and Fair Value Measurements - Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of embedded derivative liability	$ 32,620	$ 78,497
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of embedded derivative liability	32,620	78,497
Fair Value, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of embedded derivative liability	0	0
Fair Value, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of embedded derivative liability	0	0
Fair Value, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of embedded derivative liability	$ 32,620	$ 78,497

Financial Instruments and Fai_5

Financial Instruments and Fair Value Measurements - Changes in Fair Value of Level 3 Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at Beginning	$ 124,640	$ 78,497
Gain (Loss) included in earnings	(92,020)	46,143
Balance at Ending	32,620	124,640
Embedded derivative liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at Beginning	124,640	78,497
Gain (Loss) included in earnings	(92,020)	46,143
Balance at Ending	$ 32,620	$ 124,640

Balance Sheet Components - Acco

Balance Sheet Components - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 163	$ 437	$ 437
Provision for (Reversal of) allowance for doubtful accounts	368	$ (52)	(95)
Write offs	(319)		(218)
Impacts of foreign currency translation	(1)		39
Ending balance	$ 211		$ 163

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 3,281	$ 4,247
Withholding taxes	302	394
Deferred costs	0	1,555
Total	$ 3,583	$ 6,196

Balance Sheet Components - Prop

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8,374		$ 8,374		$ 8,458
Less: accumulated depreciation and amortization	(6,261)		(6,261)		(6,343)
Property and equipment, net	2,113		2,113		2,115
Depreciation and amortization, property and equipment	200	$ 200	500	$ 400
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,024		4,024		4,225
Equipment and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,350		$ 4,350		$ 4,233

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 71,604,000		$ 71,604,000		$ 71,604,000
Loss on abandonment of assets	0	$ 0	(1,658,000)	$ 0
Amortization of intangible assets	$ 2,100,000	$ 2,300,000	4,200,000	4,600,000
Goodwill, impairment loss			$ 0	$ 0
Minimum | Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life			7 years 6 months
Minimum | Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life			8 years 6 months
Minimum | Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life			2 years 6 months
Maximum | Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life			17 years 6 months
Maximum | Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life			14 years 6 months
Maximum | Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life			7 years 6 months

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Acquired Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross	$ 82,365	$ 87,770
Accumulated amortization	(51,760)	(51,311)
Net	30,605	36,459
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	30,157	30,157
Accumulated amortization	(17,328)	(15,706)
Net	$ 12,829	14,451
Weighted average remaining useful life (Years)	4 years 1 month 6 days
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Gross	$ 17,932	18,732
Accumulated amortization	(8,161)	(8,051)
Net	$ 9,771	10,681
Weighted average remaining useful life (Years)	8 years 6 months
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross	$ 34,276	38,881
Accumulated amortization	(26,271)	(27,554)
Net	$ 8,005	$ 11,327
Weighted average remaining useful life (Years)	2 years 3 months 18 days

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining 2022	$ 4,175
2023	7,941
2024	7,377
2025	4,224
2026	2,304
Thereafter	4,584
Net	$ 30,605	$ 36,459

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Operating lease cost	$ 218	$ 237	$ 492	$ 481
Short-term lease cost	94	12	123	25
Variable lease cost	19	16	23	39
Total operating lease costs	$ 331	$ 265	$ 638	$ 545

Leases - Balance Sheet Disclosu

Leases - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease right-of-use assets	$ 2,106	$ 2,497
Operating lease liabilities, current	714	798
Operating lease liabilities, noncurrent	$ 1,619	$ 1,891

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Leases [Abstract]
Weighted average remaining lease term	3 years 9 months 18 days		4 years
Operating lease, weighted average discount rate, percent	6.45%		6.39%
Cash paid for amounts included in the measurement of operating lease liabilities	$ 500,000	$ 500,000
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$ 0	$ 0

Leases - Lease Liability Maturi

Leases - Lease Liability Maturity (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Leases [Abstract]
Remaining 2022	$ 399
2023	629
2024	560
2025	533
2026	357
Thereafter	27
Total future minimum lease payments	2,505
Less: Imputed interest	(172)
Total	$ 2,333

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Revolving Credit Facility	$ 21,000	$ 0
Principal amount of Convertible Senior Notes	75,000	75,000
Unamortized debt issuance costs	(1,640)	(2,032)
Net carrying amount	73,360	72,968
Total debt	$ 94,360	$ 72,968

Debt - Interest Expense, Net (D

Debt - Interest Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 198	$ 16	$ 393	$ 25
Other, net	(2)	2	(3)	7
Total interest expense, net	1,343	643	2,474	1,476
Related Party Promissory Notes
Debt Instrument [Line Items]
Total interest expense, net	0	0	0	472
Interest expense on Convertible Senior Notes
Debt Instrument [Line Items]
Total interest expense, net	938	625	1,875	972
Interest expense on Revolving Credit Facility
Debt Instrument [Line Items]
Total interest expense, net	$ 209	$ 0	$ 209	$ 0

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)		6 Months Ended		12 Months Ended
	Feb. 09, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Apr. 26, 2022	Oct. 12, 2021	Feb. 09, 2021
Debt Instrument [Line Items]
Debt issuance costs		$ 0	$ 180,000
Fair value of embedded derivative liability		$ 32,620,000		$ 78,497,000
Notes
Debt Instrument [Line Items]
Convertible debt, shares issuable (in shares)		10,982,805
Convertible Debt | Notes
Debt Instrument [Line Items]
Debt instrument, face amount							$ 50,000,000
Debt instrument, additional amount issuable at option of the issuer	$ 25,000,000					$ 25,000,000
Proceeds from debt, net of issuance costs				72,800,000
Debt issuance costs				2,200,000
Debt instrument, additional amount issuable, offering period following equity issuance	75 days
Debt instrument, additional amount issuable, value of equity issuance to trigger offering, minimum	$ 40,000,000
Debt instrument, covenant, minimum liquidity requirement		$ 10,000,000
Debt instrument, debt default, percentage of holders that can call debt, minimum		25%
Default interest rate		3%
Debt instrument, redemption feature, fair value		$ 0
Fair value of embedded derivative liability		$ 32,600,000		$ 78,500,000
Convertible Debt | Notes | Repurchase Upon a Fundamental Change
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage		100%
Convertible Debt | Notes | Cash Interest
Debt Instrument [Line Items]
Interest rate		5%
Convertible Debt | Notes | PIK Interest
Debt Instrument [Line Items]
Interest rate		5.50%
Interest expense on Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Credit facility, borrowing capacity					$ 50,000,000
Credit facility, value of equity issuance that would trigger maturity					$ 50,000,000
Interest rate					10%

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Letters of credit outstanding, amount	$ 0
Long-term purchase commitment, amount	1,000,000	$ 2,700,000
Letter of Credit
Loss Contingencies [Line Items]
Credit facility, borrowing capacity	$ 1,500,000	$ 1,500,000

Profit Interest Units of SIS _3

Profit Interest Units of SIS Holdings LP - Narrative (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs, tax benefit	$ 0	$ 0
Class B Profit Interest Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs not yet recognized, number of shares (in shares)	389
Equity-based compensation costs not yet recognized	$ 200,000
Equity-based compensation costs not yet recognized, period for recognition	8 months 12 days

Profit Interest Units of SIS _4

Profit Interest Units of SIS Holdings LP - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs	$ 81	$ 957	$ 224	$ 1,967
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs	0	131	62	262
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs	81	537	162	1,104
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs	0	100	0	211
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs	$ 0	$ 189	$ 0	$ 390

Appgate, Inc. 2021 Incentive _3

Appgate, Inc. 2021 Incentive Compensation Plan - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Equity-based compensation costs	$ 81	$ 957	$ 224	$ 1,967
Restricted Stock Units (RSUs)
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Unrecognized cost	7,200		7,200
2021 Plan
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Granted (in shares)				0
Granted (shares)				0
Equity-based compensation costs	$ 3,600		$ 7,200

Appgate, Inc. 2021 Incentive _4

Appgate, Inc. 2021 Incentive Compensation Plan - Summarizes nonvested RSUs and PSUs activity (Details) - $ / shares	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022
Restricted Stock Units (RSUs) | Time-vested
Shares
Outstanding, beginning balance (in shares)	1,102,217	0
Granted (in shares)	0	1,102,217
Vested (in shares)	0	0
Forfeited (in shares)	0	0
Outstanding, ending balance (in shares)	1,102,217	1,102,217
Weighted-average grant date fair value
Beginning Balance, Nonvested (in dollars per share)	$ 13	$ 0
Granted (in dollars per share)	0	13
Vested (in dollars per share)	0	0
Forfeited (in dollars per share)	0	0
Outstanding, ending balance, weighted-average grant date fair value (in dollars per share)	$ 13	$ 13
Restricted Stock Units (RSUs) | Performance-vested
Shares
Outstanding, beginning balance (in shares)	4,328,381	0
Granted (in shares)	192,869	4,436,129
Vested (in shares)	0	0
Forfeited (in shares)	(97,974)	(107,748)
Outstanding, ending balance (in shares)	4,423,276	4,328,381
Weighted-average grant date fair value
Beginning Balance, Nonvested (in dollars per share)	$ 13.14	$ 0
Granted (in dollars per share)	12.81	13.14
Vested (in dollars per share)	0	0
Forfeited (in dollars per share)	13.15	13
Outstanding, ending balance, weighted-average grant date fair value (in dollars per share)	$ 13.13	$ 13.14
Phantom Stock Units (PSUs) | Performance-vested
Shares
Outstanding, beginning balance (in shares)	57,086	0
Granted (in shares)	5,145	58,519
Vested (in shares)	0	0
Forfeited (in shares)	(4,661)	(1,433)
Outstanding, ending balance (in shares)	57,570	57,086
Weighted-average grant date fair value
Beginning Balance, Nonvested (in dollars per share)	$ 13.17	$ 0
Granted (in dollars per share)	11.14	13.17
Vested (in dollars per share)	0	0
Forfeited (in dollars per share)	12.86	13
Outstanding, ending balance, weighted-average grant date fair value (in dollars per share)	$ 13.02	$ 13.17

401(k) Savings Plan - Narrative

401(k) Savings Plan - Narrative (Details)	6 Months Ended
	Jun. 30, 2022
Employer Match, Tranche One
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution, percent of match	100%
Employer matching contribution, percent of employees' gross pay	1%
Employer Match, Tranche Two
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution, percent of match	50%
Employer Match, Tranche Two | Minimum
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution, percent of employees' gross pay	1%
Employer Match, Tranche Two | Maximum
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution, percent of employees' gross pay	6%

401(k) Savings Plan - 401(k) Pl

401(k) Savings Plan - 401(k) Plan Costs Recognized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	$ 785	$ 460	$ 1,310	$ 813
Cost of revenue
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	133	100	219	176
Sales and marketing
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	313	170	538	300
Research and development
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	227	135	382	238
General and administrative
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	$ 112	$ 55	$ 171	$ 99

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax expense of continuing operations	$ 845	$ 592	$ 1,136	$ 1,004

Segment and Geographic Inform_2

Segment and Geographic Information (Details)	6 Months Ended
	Jun. 30, 2022 segment
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	1

Related Party Transactions (Det

Related Party Transactions (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022	Jun. 30, 2022 boardMember	Jun. 30, 2022 formerMember	Apr. 26, 2022	Mar. 23, 2022	Dec. 31, 2021 USD ($)
SIS Holdings | Legacy Appgate
Related Party Transaction [Line Items]
Ownership percentage								89%
SIS Holdings | Cyxtera Technologies, Inc.
Related Party Transaction [Line Items]
Ownership percentage									61.50%
CenturyLink Communications, LLC | SIS Holdings
Related Party Transaction [Line Items]
Ownership percentage					10.40%
Cyxtera Technologies, Inc.
Related Party Transaction [Line Items]
Number of board members | boardMember						2
Cyxtera Technologies, Inc. | Sale of Cybersecurity Products and Services
Related Party Transaction [Line Items]
Related party receivable	$ 100,000		$ 100,000							$ 0
Cyxtera Technologies, Inc. | Purchase of Data Center Co-Location and CXD Services
Related Party Transaction [Line Items]
Expenses for related party transaction	100,000		200,000
Related party payables	100,000		100,000							200,000
Chewy, Inc.
Related Party Transaction [Line Items]
Number of board members						2	1
Chewy, Inc. | Sale of Cybersecurity Products and Services
Related Party Transaction [Line Items]
Related party receivable	0	$ 0	0	$ 0						0
Revenue from related party transaction	200,000	300,000	300,000	400,000
PetSmart
Related Party Transaction [Line Items]
Number of board members						1	1
Related party receivable	0		0							0
Revenue from related party transaction			100,000
CenturyLink Communications, LLC | Sale of Cybersecurity Products and Services
Related Party Transaction [Line Items]
Related party receivable	100,000		100,000							$ 600,000
Revenue from related party transaction	200,000	200,000	500,000	300,000
Amount charged to related party	$ 400,000	$ 300,000	$ 600,000	$ 500,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 20, 2022	Jul. 25, 2022	Mar. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Proceeds from revolving credit facility		$ 21,000	$ 0
Borrowings outstanding		$ 21,000					$ 0
Line of Credit | Interest expense on Revolving Credit Facility | Subsequent Event
Subsequent Event [Line Items]
Borrowings outstanding				$ 43,000
Restricted Stock Units (RSUs) | Time-vested
Subsequent Event [Line Items]
Awards outstanding (in shares)		1,102,217				1,102,217	0
Restricted Stock Units (RSUs) | Performance-vested
Subsequent Event [Line Items]
Awards outstanding (in shares)		4,423,276				4,328,381	0
Phantom Stock Units (PSUs) | Performance-vested
Subsequent Event [Line Items]
Awards outstanding (in shares)		57,570				57,086	0
Reduction in Force | Subsequent Event
Subsequent Event [Line Items]
Reduction in force percentage					22%
Costs and expenses	$ 1,800