Appgate (APGT) 10-Q 12 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 09, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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	2023
Document Fiscal Period Focus	Q1
Amendment flag	false
Current Fiscal Year End Date	--12-31

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 7,780	$ 11,531
Restricted cash	1,474	1,473
Accounts receivable, net of allowance of $70 and $52, respectively	6,072	4,231
Contract assets	1,402	1,462
Deferred contract acquisition costs, current	1,520	1,508
Prepaid and other current assets	2,876	3,517
Total current assets	21,124	23,722
Property and equipment, net	1,439	1,617
Operating lease right-of-use assets	1,528	1,679
Contract assets, noncurrent	6,633	9,134
Deferred contract acquisition costs, noncurrent	3,016	3,103
Goodwill	71,604	71,604
Intangible assets, net	24,464	26,449
Deferred income taxes	1,133	1,334
Other assets	167	182
Total assets	131,108	138,824
Current liabilities:
Accounts payable	3,584	4,334
Accrued expenses	10,882	10,240
Operating lease liabilities, current	581	619
Deferred revenue, current	5,465	5,578
Revolving credit facility	48,500	46,500
Convertible senior notes, net	76,043	0
Derivative liability	66	0
Total current liabilities	145,121	67,271
Deferred revenue, noncurrent	1,280	909
Operating lease liabilities, noncurrent	1,138	1,261
Convertible senior notes, net	0	73,769
Derivative liability	0	19,700
Total liabilities	147,539	162,910
Commitments and contingencies (Note 9)
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	132	132
Additional paid-in capital	524,281	524,239
Accumulated other comprehensive loss	(2,485)	(2,403)
Accumulated deficit	(538,359)	(546,054)
Total stockholders’ deficit	(16,431)	(24,086)
Total liabilities and stockholders’ deficit	$ 131,108	$ 138,824

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 70	$ 52
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
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue	$ 11,273	$ 11,078
Cost of revenue, exclusive of amortization shown below	3,873	4,498
Amortization expense	843	954
Total cost of revenue	4,716	5,452
Gross profit	6,557	5,626
Operating expenses:
Sales and marketing	6,063	12,236
Research and development	2,773	3,334
General and administrative	4,900	8,462
Depreciation and amortization	1,355	1,369
Loss on abandonment of assets	0	1,658
Total operating expenses	15,091	27,059
Loss from operations	(8,534)	(21,433)
Change in fair value of embedded derivative liability	19,634	(46,143)
Interest expense, net	(2,590)	(1,131)
Other expenses, net	(66)	(104)
Income (loss) from operations before income taxes	8,444	(68,811)
Income tax expense	(749)	(291)
Net income (loss)	$ 7,695	$ (69,102)
Income (loss) per share:
Net income (loss) per share of common stock - basic (in dollars per share)	$ 0.06	$ (0.52)
Net loss per share of common stock - diluted (in dollars per share)	$ (0.08)	$ (0.52)
Weighted-average shares used in computation - basic (in shares)	131,793,660	131,793,660
Weighted-average shares of common stock - diluted (in shares)	143,078,493	131,793,660

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 7,695	$ (69,102)
Other comprehensive (loss) income:
Change in foreign currency translation	(82)	218
Other comprehensive (loss) income	(82)	218
Comprehensive income (loss)	$ 7,613	$ (68,884)

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ 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, 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) Attributable to Parent	(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, 2022		0	131,793,660
Beginning balance at Dec. 31, 2022	(24,086)	$ 0	$ 132	524,239	(2,403)	(546,054)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	42			42
Net Income (Loss) Attributable to Parent	7,695					7,695
Other comprehensive income	(82)				(82)
Ending balance (in shares) at Mar. 31, 2023		0	131,793,660
Ending balance at Mar. 31, 2023	$ (16,431)	$ 0	$ 132	$ 524,281	$ (2,485)	$ (538,359)

Unaudited Condensed Consolida_6

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Cash flows from operating activities:
Net income (loss)	$ 7,695	$ (69,102)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	2,198	2,323
Loss on abandonment of assets	0	1,658
Equity-based compensation	42	3,725
Amortization of deferred contract acquisition costs	953	1,566	$ 5,951
Change in fair value of embedded derivative liability	(19,634)	46,143
Non-cash interest expense	1,010	0
Amortization of debt issuance costs	211	194
Operating lease amortization	(16)	44
Provision for allowance for current expected credit losses	16	72	857
Deferred income taxes	201	65
Changes in assets and liabilities:
Accounts receivable	(2,277)	(1,731)
Contract assets	2,576	938
Prepaid and other current assets	672	(450)
Deferred contract acquisition costs	(914)	(1,756)
Accounts payable	(766)	760
Accrued expenses	1,730	1,107
Deferred revenue	255	143
Net cash, cash equivalents and restricted cash used in operating activities	(6,048)	(14,301)
Cash flows from investing activities:
Purchases of property and equipment	(38)	(417)
Net cash, cash equivalents and restricted cash used in investing activities	(38)	(417)
Cash flows from financing activities:
Proceeds from Revolving Credit Facility (Note 8)	2,000	0
Net cash, cash equivalents and restricted cash provided by financing activities	2,000	0
Effect of foreign currency exchange rates on cash	336	(21)
Net decrease in cash, cash equivalents and restricted cash	(3,750)	(14,739)
Cash, cash equivalents and restricted cash at beginning of period	13,004	27,463	27,463
Cash, cash equivalents and restricted cash at end of period	9,254	12,724	13,004
Cash and cash equivalents	7,780	11,251	11,531
Restricted cash	1,474	1,473	$ 1,473
Cash, cash equivalents and restricted cash at end of period	9,254	12,724
Supplemental cash flow information:
Cash paid for interest	0	1,628
Interest exchanged for PIK Note (Note 8)	2,063	0
Cash paid for income taxes, net of refunds	$ 402	$ 179

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
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, Inc., a Delaware corporation (“Appgate”, the “Company”, “we”, “us”, or “our”), 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, 2022 has been derived from our audited consolidated financial statements as of that date. 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, 2022 included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 31, 2023 (the “2022 Annual Report”). Results for the interim periods are not necessarily indicative of results to be expected for the entirety of 2023. 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 2022, for example, refer to our year ended December 31, 2022. 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 remaining borrowing capacity under the Revolving Credit Facility (as defined in Note 8) of $7.8 million and $1.5 million, respectively, at March 31, 2023, a loss from operations of $8.5 million for the three months ended March 31, 2023, and an accumulated deficit of $538.4 million at March 31, 2023. 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 remaining 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 two reductions in force in July 2022 and February 2023 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 8). 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 Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Income (Loss) per Common Share

Income (Loss) per Common Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Income (Loss) per Common Share	Income (Loss) per Common Share Basic income (loss) per common share is computed by dividing net income (loss) (the numerator) by the weighted-average number of shares of common stock outstanding (the denominator) for the period. Diluted income (loss) 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. For the three months ended March 31, 2023 and 2022, the Company's potential dilutive shares consist of 11,284,833 and 10,982,805, respectively, 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 8. These potentially dilutive shares have been excluded from diluted loss per share for the three months ended March 31, 2022 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 for the three months ended March 31, 2022. The following table summarizes the basic and diluted earnings per share calculations (in thousands, except share and per share amounts). Three Months Ended March 31, 2023 2022 Numerator: Net income (loss) attributable to common stockholders - basic $ 7,695 $ (69,102) Add: Effect of mark-to-market adjustment recognized during the period (19,634) 46,143 Net loss attributable to common stockholders - diluted $ (11,939) $ (22,959) Denominator: Weighted-average shares of common stock - basic 131,793,660 131,793,660 Effect from conversion of shares of common stock under the Convertible Senior Notes (Note 8) 11,284,833 — Weighted-average shares of common stock - diluted 143,078,493 131,793,660 Basic income (loss) per share $ 0.06 $ (0.52) Diluted (loss) income per share $ (0.08) $ (0.52)

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregation of Revenue The following table summarizes our revenue by category (in thousands): Three Months Ended March 31, 2023 2022 Subscription revenue: Multi-year subscription term-based licenses $ 3,221 $ 2,831 1-year subscription term-based licenses 3,244 2,804 Total subscription term-based licenses 6,465 5,635 Subscription SaaS 2,062 2,296 Support and maintenance 920 933 Total subscription revenue 9,447 8,864 Perpetual licenses 317 156 Services and other 1,509 2,058 Total $ 11,273 $ 11,078 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 March 31, 2023 2022 Revenues by country (a): United States $ 5,948 $ 5,857 Colombia 950 1,627 Other 4,375 3,594 Total $ 11,273 $ 11,078 Revenues by main geography: US&C $ 6,798 $ 6,707 LATAM 3,120 3,169 EMEA 969 671 APAC 386 531 Total $ 11,273 $ 11,078 (a) Only the United States and Colombia represented 10% or more of our total revenue in either period 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 either period 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 the three months ended March 31, 2023 and 2022, we recognized revenue of $2.8 million and $2.7 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 $8.0 million and $10.6 million as of March 31, 2023 and December 31, 2022, 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): Three Months Ended Year Ended March 31, 2023 December 31, 2022 Beginning balance $ 4,611 $ 4,305 Capitalization of contract acquisition costs 771 6,146 Amortization of deferred contract acquisition costs (953) (5,951) Impacts of foreign currency translation 107 111 Ending balance $ 4,536 $ 4,611 Deferred contract acquisition costs, current $ 1,520 $ 1,508 Deferred contract acquisition costs, noncurrent $ 3,016 $ 3,103 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 three months ended March 31, 2023 or 2022. Sales commissions accrued but not paid as of March 31, 2023 and December 31, 2022 totaled $0.6 million and $0.9 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	3 Months Ended
	Mar. 31, 2023
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 $76.0 million and $73.8 million as of March 31, 2023 and December 31, 2022, respectively. The fair value of the Convertible Senior Notes was estimated as $68.2 million and $64.6 million as of March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022: • “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 March 31, 2023 and December 31, 2022 for instruments measured at fair value on a recurring basis (in thousands): Level 1 Level 2 Level 3 Total March 31, 2023 Financial liability: Embedded derivative liability $ — $ — $ 66 $ 66 December 31, 2022 Financial liability: Embedded derivative liability $ — $ — $ 19,700 $ 19,700 The following table presents the changes in Level 3 liabilities measured at fair value on a recurring basis during the three months ended March 31, 2023 and 2022 (in thousands): Embedded derivative liability Total liabilities Balance at January 1, 2023 $ 19,700 $ 19,700 Gain included in earnings (19,634) (19,634) Balance as of March 31, 2023 $ 66 $ 66 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 The (gain)/loss included in the previous table is reported in our condensed consolidated statements of operations within change in fair value of embedded derivative liability. There were no transfers between fair value measurement levels during the three months ended March 31, 2023 or 2022.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Accounts Receivable and Allowance for Current Expected Credit Losses 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 and are financial assets analyzed by the Company under the expected credit loss model. To measure expected credit losses, accounts receivables are grouped based on days past due (i.e., delinquency status), while considering that the expected credit loss rate is likely to increase as receivables move to older aging buckets. The Company uses the following aging categories to estimate the risk of delinquency status: (i) 0 days past due; (ii) 1-30 days past due; (iii) 31-60 days past due; (iv) 61-90 days past due; (v) 91-180 days past due; (vi) 181-360 days past due; and (vii) over 360 days past due. The credit losses of the Company’s accounts receivable have been low historically and most balances are collected within one year. Therefore, the Company determined that the expected loss rates should be calculated using the historical loss rates adjusted by macroeconomic factors. The historical rates are calculated for each of the aging categories used for pooling trade receivables. To determine the collected portion of each bucket, the collection time of each trade receivable is identified, to estimate the proportion of outstanding balances per aging bucket that ultimately will not be collected. This is used to determine the expectation of losses based on the history of uncollected trade receivables once the specific past due period is surpassed. The historical rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of customers to settle the receivables by applying a forward-looking macroeconomic factor. Specific reserves are established for certain customers for which collection is doubtful. The activity in the allowance for current expected credit losses was as follows (in thousands): Three Months Ended Year Ended March 31, 2023 December 31, 2022 Beginning balance $ 52 $ 163 Provision for allowance for current expected credit losses 16 857 Write offs — (952) Impacts of foreign currency translation 2 (16) Ending balance $ 70 $ 52 The Company does not have a delinquency threshold for writing-off accounts receivable. The Company has a formal process for the review and approval of write offs. Impairment losses on trade receivables, if any, would be presented as net impairment losses within cost of revenue, exclusive of amortization in the unaudited condensed consolidated statements of operations. Subsequent recoveries of amounts previously written off, when applicable, are credited against the allowance for expected current credit losses within accounts receivable, net on the unaudited condensed consolidated balance sheets. Prepaid and Other Current Assets Our prepaid and other current assets consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Prepaid expenses $ 2,392 $ 2,879 Withholding taxes 484 638 Total 2,876 3,517 Property and Equipment, Net Our property and equipment, net consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Leasehold improvements $ 3,901 $ 3,912 Equipment and fixtures 4,102 4,078 8,003 7,990 Less: accumulated depreciation and amortization (6,564) (6,373) Property and equipment, net $ 1,439 $ 1,617 During each of the three months ended March 31, 2023 and 2022, we recognized depreciation and amortization expense on property and equipment of $0.2 million. Accrued Expenses Our accrued expenses consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Accrued compensation and benefits $ 5,335 $ 4,483 Accrued interest 3,845 3,506 Accrued services 763 1,092 Accrued income taxes 99 350 Accrued other taxes 787 767 Other 53 42 Total $ 10,882 $ 10,240

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022. 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 Technologies, Inc. (“Cyxtera”) when it acquired the entities that formed our wholly-owned subsidiary, Appgate Cybersecurity, Inc. (f/k/a Cyxtera Cybersecurity, Inc. d/b/a AppGate, “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 March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Weighted Gross Accumulated Net Gross Accumulated Net Customer relationships $ 30,157 $ (19,904) $ 10,253 $ 30,157 $ (19,064) $ 11,093 3.4 Trademarks and tradenames 17,932 (9,128) 8,804 17,932 (8,826) 9,106 7.8 Developed technology 34,278 (28,871) 5,407 34,279 (28,029) 6,250 1.6 Total $ 82,367 $ (57,903) $ 24,464 $ 82,368 $ (55,919) $ 26,449 We stopped offering our Compliance Sheriff product. As a result, during the three months ended March 31, 2022 we recorded a loss on abandonment of the related intangible assets (namely, trademarks and tradenames and developed technology) of $1.7 million. Other than the loss on abandonment, the main change in the carrying amount of each major class of intangible assets during each of the three months ended March 31, 2023 and 2022 was amortization, and to a lesser extent, foreign currency translation. We recorded amortization expense on intangible assets of $2.0 million and $2.1 million during the three months ended March 31, 2023 and 2022, 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 2023 $ 5,956 2024 7,377 2025 4,224 2026 2,297 2027 1,140 Thereafter 3,470 Total $ 24,464 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 three months ended March 31, 2023 or 2022.

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	LeasesWe 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. Operating Leases The following is a summary of our operating lease costs for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 2022 Operating lease cost $ 185 $ 274 Short-term lease cost 60 29 Variable lease cost 16 4 Total operating lease costs $ 261 $ 307 The following table presents information about leases on our condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Operating lease right-of-use assets $ 1,528 $ 1,679 Operating lease liabilities, current $ 581 $ 619 Operating lease liabilities, noncurrent $ 1,138 $ 1,261 At March 31, 2023, the weighted-average remaining lease term and weighted-average discount rate for operating leases were 3.4 years and 6.55%, respectively. At December 31, 2022, the weighted-average remaining lease term and weighted-average discount rate for operating leases were 3.5 years and 6.52%, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $0.2 million for each of the three months ended March 31, 2023 and 2022. There were no right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2023 or 2022. Maturities of operating lease liabilities consisted of the following as of March 31, 2023 (in thousands): For the years ending: Remaining 2023 $ 435 2024 556 2025 529 2026 356 2027 27 Thereafter — Total future minimum lease payments 1,903 Less: Imputed interest (184) Total $ 1,719

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Convertible Senior Notes	Debt Our debt consists of the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Revolving Credit Facility $ 48,500 $ 46,500 Principal amount of Convertible Senior Notes 77,063 75,000 Unamortized debt issuance costs (1,020) (1,231) Net carrying amount 76,043 73,769 Total debt $ 124,543 $ 120,269 Interest expense, net for the three months ended March 31, 2023 and 2022 was as follows (in thousands): Three Months Ended March 31, 2023 2022 Interest expense on Revolving Credit Facility $ 1,196 $ — Interest expense on Convertible Senior Notes 1,206 938 Amortization of debt issuance costs 211 194 Other, net (23) (1) Total interest expense, net $ 2,590 $ 1,131 Interest accrued but not paid as of March 31, 2023 and December 31, 2022 totaled $3.8 million and $3.5 million, respectively, and is included within accrued expenses in the condensed consolidated balance sheets. 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). All obligations under the Revolving Credit Agreement are guaranteed by Appgate and Legacy Appgate’s domestic subsidiaries. The Revolving Credit Agreement is subject to customary terms, covenants and conditions. Those covenants include restrictions on our ability to, among other things, incur additional debt and issue disqualified stock; create liens; pay dividends, acquire shares of capital stock, or make certain investments; issue guarantees; sell certain assets and enter into transactions with affiliates. The Revolving Credit 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 each calendar month. As of March 31, 2023, the Company had $7.8 million in cash and cash equivalents, and on March 31, 2023, SIS Holdings waived the Company’s noncompliance with the above-mentioned liquidity financial covenant with respect to the last day of March 2023. During the three months ended March 31, 2023, we borrowed $2.0 million under the Revolving Credit Facility, all of which remained outstanding as of March 31, 2023, and, when aggregated with the $46.5 million previously borrowed in 2022, resulted in a total of $48.5 million outstanding as of March 31, 2023. Convertible Senior Notes On February 9, 2021, Legacy Appgate issued $50.0 million in aggregate principal amount of convertible senior notes due 2024 (the “Initial Convertible Senior Notes”) to various funds managed by Magnetar Financial LLC (“Magnetar”). In connection with the closing of the merger of Newtown Merger Sub. Corp. (“Merger Sub”) with and into Legacy Appgate, with Legacy Appgate surviving and becoming a wholly owned subsidiary of Appgate (the “Merger”), Legacy Appgate issued an additional $25.0 million in aggregate principal balance in convertible notes to various funds managed by Magnetar (the “Additional Convertible Senior Notes” and together with the Initial Convertible Senior Notes and any PIK Notes (as defined below), 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 and Magnetar, in its capacity as the representative (the “Representative”) of the holders of the Convertible Senior Notes (the “Noteholders”), and the note purchase agreement among Legacy Appgate and the Noteholders (the “Note Purchase Agreement”). Capitalized terms not otherwise defined in this Note 8 have the meanings ascribed to them in the Note Issuance Agreement. We received net proceeds of $72.8 million from the issuance of the Initial Convertible Senior Notes and Additional 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. 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. On February 1, 2023, Legacy Appgate issued approximately $2.1 million in PIK Notes with respect to a single interest payment date. 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, Appgate (which at the time was Newtown Lane Marketing, Incorporated (“Newtown Lane”)) entered into a supplemental agreement (the “Supplemental Agreement”) with Legacy Appgate and Magnetar, as Representative of the Noteholders, pursuant to which Appgate, 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 modified: (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 (the “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. The period in which the Representative could have elected to consummate an Optional Closing has since expired and no additional Convertible Senior Notes were issued in an Optional Closing. As of October 14, 2022, the Company, Legacy Appgate, the Noteholders and the Representative entered into an additional Waiver to Note Purchase Agreement and Registration Rights Agreement (the “Second Waiver”) to extend the waiver by the Noteholders of certain registration rights pursuant to the Amendment and Waiver for the additional period set forth in the Second Waiver. As of January 24, 2023, the Company, Legacy Appgate, the Noteholders and the Representative entered into an additional Waiver to Note Purchase Agreement and Registration Rights Agreement (the “Third Waiver”) to extend the waiver by the Noteholders of certain registration rights pursuant to the Amendment and Waiver for the additional period set forth in the Third Waiver. Other key terms of the Convertible Senior Notes, as of March 31, 2023, were as follows: 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. 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. 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. Repurchase Upon a Change of Control. Upon the occurrence of a Change of Control, 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 102% 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 each calendar month. As of March 31, 2023, the Company had $7.8 million in cash and cash equivalents, and on March 31, 2023, the Representative and the Noteholders waived the Company’s noncompliance with the above-mentioned liquidity financial covenant with respect to the last day of March 2023. 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 1.5% applicable upon the occurrence of an event of default. Appgate evaluated these embedded redemption features under the guidance of ASC 815, Derivatives and Hedging , 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 11,284,833 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 liability in our condensed 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 condensed 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 March 31, 2023 and December 31, 2022, the carrying amount of this embedded derivative included in our condensed consolidated balance sheets was $0.1 million and $19.7 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 4 – Financial Instruments and Fair Value Measurements . Based on the estimated value of the derivative at March 31, 2023, 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	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Letters of Credit As of March 31, 2023 and December 31, 2022, 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 March 31, 2023, 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 March 31, 2023, we had outstanding non-cancelable purchase obligations with terms of 12 months or longer aggregating $3.6 million. 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 appropriate. Until the final resolution of any such matter for which we may be required to record a liability, there may be a loss exposure in excess of the liability recorded and such amount could be significant. We expense legal fees as incurred. As of March 31, 2023 and December 31, 2022, the Company was not a party to, and the Company is not currently party to, any litigation that would have a material adverse effect on the Company’s condensed consolidated financial statements.

Profit Interest Units of SIS Ho

Profit Interest Units of SIS Holdings LP	3 Months Ended
	Mar. 31, 2023
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 totaled $42 thousand and $0.1 million for the three months ended March 31, 2023 and 2022, respectively. These amounts are included in the following captions in the condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ — $ 62 Sales and marketing 42 81 Total $ 42 $ 143 No related income tax benefit was recognized as of March 31, 2023 or December 31, 2022. As of March 31, 2023, all Class B units had vested under the SIS Holdings Plan. 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 the three months ended March 31, 2023, 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). To date, grants under the 2021 Plan have been given as restricted stock units (“RSUs”) and phantom stock units (“PSUs”). Awards of RSUs have been given as time-based awards and/or performance-based awards under the 2021 Plan. All PSUs have been 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 months ended March 31, 2023 and 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, 2022 — $ — 9,210,180 $ 13.29 49,878 $ 13.07 Granted — 0.00 1,000,000 1.85 — 0.00 Vested — 0.00 — 0.00 — 0.00 Forfeited — 0.00 (1,733,377) 10.02 (2,293) 14.39 Nonvested at March 31, 2023 — $ — 8,476,803 $ 11.12 47,585 $ 13.25 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 For the three months ended March 31, 2022, we recognized $3.6 million of equity-based compensation expense related to the 2021 Plan (compared to nil for the three months ended March 31, 2023). This amount is included in general and administrative expenses in the unaudited condensed consolidated statement of operations.

Appgate, Inc. 2021 Incentive Co

Appgate, Inc. 2021 Incentive Compensation Plan	3 Months Ended
	Mar. 31, 2023
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 totaled $42 thousand and $0.1 million for the three months ended March 31, 2023 and 2022, respectively. These amounts are included in the following captions in the condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ — $ 62 Sales and marketing 42 81 Total $ 42 $ 143 No related income tax benefit was recognized as of March 31, 2023 or December 31, 2022. As of March 31, 2023, all Class B units had vested under the SIS Holdings Plan. 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 the three months ended March 31, 2023, 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). To date, grants under the 2021 Plan have been given as restricted stock units (“RSUs”) and phantom stock units (“PSUs”). Awards of RSUs have been given as time-based awards and/or performance-based awards under the 2021 Plan. All PSUs have been 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 months ended March 31, 2023 and 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, 2022 — $ — 9,210,180 $ 13.29 49,878 $ 13.07 Granted — 0.00 1,000,000 1.85 — 0.00 Vested — 0.00 — 0.00 — 0.00 Forfeited — 0.00 (1,733,377) 10.02 (2,293) 14.39 Nonvested at March 31, 2023 — $ — 8,476,803 $ 11.12 47,585 $ 13.25 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 For the three months ended March 31, 2022, we recognized $3.6 million of equity-based compensation expense related to the 2021 Plan (compared to nil for the three months ended March 31, 2023). This amount is included in general and administrative expenses in the unaudited condensed consolidated statement of operations.

401(k) Savings Plan

401(k) Savings Plan	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
401(k) Savings Plan	401(k) Savings Plan Effective January 1, 2021, Legacy Appgate’s U.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. During the three months ended March 31, 2023 and 2022, we made matching contributions to the 401(k) Plan of $0.1 million and $0.3 million, respectively. These amounts are included in the following captions in the condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ 32 $ 33 Sales and marketing 76 176 Research and development 13 24 General and administrative 23 39 Total $ 144 $ 272

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
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. Income tax expense for the three months ended March 31, 2023 and 2022 was $0.7 million and $0.3 million, respectively. The income tax expense on the pre-tax loss for the three months ended March 31, 2023 and 2022 was different than the amount expected at the statutory federal income tax rate primarily due to changes in the valuation allowance, the change in the fair value of our embedded derivative liability that is not tax deductible, state taxes, and foreign withholding 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.

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Mar. 31, 2023
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 3 – Revenue , for information on revenue by geography.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2023
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 - see Note 8. Commercial Related Party Transactions with Cyxtera Three current members of our Board of Directors also serve on the board of directors of Cyxtera. Legacy Appgate maintains a number of ordinary course commercial relationships, both as a customer and service provider, with Cyxtera. For instance, for each of the three months ended March 31, 2023 and 2022, Cyxtera purchased certain cybersecurity products and services from Legacy Appgate, including licenses for Legacy Appgate cybersecurity software and training. During each of the three months ended March 31, 2023 and 2022, the revenue recognized by Legacy Appgate from these licenses was insignificant. There were no open receivables from Cyxtera (and/or its subsidiaries) as of March 31, 2023. As of December 31, 2022, Legacy Appgate had receivables from Cyxtera (and/or its subsidiaries) for $4 thousand under these agreements. During each of the three months ended March 31, 2023 and 2022, Cyxtera provided Legacy Appgate certain data center co-location and CXD services. During each of the three months ended March 31, 2023 and 2022, Cyxtera charged Legacy Appgate $0.1 million for those services. As of March 31, 2023 and December 31, 2022, Legacy Appgate had payables to Cyxtera (and/or its subsidiaries) for $27 thousand and $0.1 million, respectively, under these agreements. Transactions with Director Affiliated Companies Two current members of our Board of Directors currently serve on the board of directors of Chewy, Inc. (“Chewy”), an American online retailer of pet food and other pet-related products. During each of the three months ended March 31, 2023 and 2022, Legacy Appgate charged Chewy (or the channel partner reselling certain cybersecurity products provided to Chewy) $0.1 million and recognized revenue in the same amounts, under contracts with Chewy (or the channel partner reselling certain cybersecurity products provided to Chewy). As of March 31, 2023, Legacy Appgate had receivables from Chewy (or the channel partner reselling certain cybersecurity products provided to Chewy) for $0.1 million under these agreements. There were no open receivables from Chewy (or the channel partner reselling certain cybersecurity products provided to Chewy) as of December 31, 2022. One current member of our Board of Directors currently serves on the board of directors of PetSmart, Inc. (“PetSmart”). During the three months ended March 31, 2022, Legacy Appgate charged PetSmart $0.1 million and recognized revenue in the same amount from its contract with PetSmart (nothing for the three months ended March 31, 2023). There were no open receivables from PetSmart as of March 31, 2023 or December 31, 2022. Other Related Party Transactions

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Appgate, Inc. 2021 Incentive Compensation Plan As of May 9, 2023, there were no time-based RSUs, 7,649,772 performance-based RSUs, and 47,453 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 May 9, 2023, none of the awards had vested. Waiver to Note Purchase Agreement and Registration Rights Agreement As of April 30, 2023, the Company, Legacy Appgate, the Noteholders and the Representative entered into a Waiver to Note Purchase Agreement and Registration Rights Agreement (the “Fourth Waiver”). The Fourth Waiver waived (a) certain registration rights of the Noteholders under the Registration Rights Agreement and (b) certain rights of the Noteholders under the Note Purchase Agreement, in each case, until May 31, 2023. Waiver of Liquidity Covenant under the Note Issuance Agreement and Revolving Credit Agreement The Note Issuance Agreement and the Revolving Credit Agreement each contain a financial covenant that requires that we maintain liquidity of not less than $10.0 million as of the last day of each calendar month. As of April 30, 2023, the Company had less than $10.0 million in cash and cash equivalents, and on April 30, 2023, the Noteholders and the Representative, with respect to the Note Issuance Agreement, and SIS Holdings, with respect to the Revolving Credit Agreement, each waived the Company’s noncompliance with the above-mentioned liquidity financial covenant with respect to the last day of April 2023.

Business and Summary of Signi_2

Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Use of Estimates	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, 2022 has been derived from our audited consolidated financial statements as of that date. 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, 2022 included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 31, 2023 (the “2022 Annual Report”). Results for the interim periods are not necessarily indicative of results to be expected for the entirety of 2023.
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 remaining borrowing capacity under the Revolving Credit Facility (as defined in Note 8) of $7.8 million and $1.5 million, respectively, at March 31, 2023, a loss from operations of $8.5 million for the three months ended March 31, 2023, and an accumulated deficit of $538.4 million at March 31, 2023. 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 remaining borrowing capacity under the Revolving Credit Facility are not sufficient to continue
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Income (Loss) per Common Share

Income (Loss) per Common Share (Tables)	3 Months Ended
	Mar. 31, 2023
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). Three Months Ended March 31, 2023 2022 Numerator: Net income (loss) attributable to common stockholders - basic $ 7,695 $ (69,102) Add: Effect of mark-to-market adjustment recognized during the period (19,634) 46,143 Net loss attributable to common stockholders - diluted $ (11,939) $ (22,959) Denominator: Weighted-average shares of common stock - basic 131,793,660 131,793,660 Effect from conversion of shares of common stock under the Convertible Senior Notes (Note 8) 11,284,833 — Weighted-average shares of common stock - diluted 143,078,493 131,793,660 Basic income (loss) per share $ 0.06 $ (0.52) Diluted (loss) income per share $ (0.08) $ (0.52)

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Disaggregation of Revenue The following table summarizes our revenue by category (in thousands): Three Months Ended March 31, 2023 2022 Subscription revenue: Multi-year subscription term-based licenses $ 3,221 $ 2,831 1-year subscription term-based licenses 3,244 2,804 Total subscription term-based licenses 6,465 5,635 Subscription SaaS 2,062 2,296 Support and maintenance 920 933 Total subscription revenue 9,447 8,864 Perpetual licenses 317 156 Services and other 1,509 2,058 Total $ 11,273 $ 11,078
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 March 31, 2023 2022 Revenues by country (a): United States $ 5,948 $ 5,857 Colombia 950 1,627 Other 4,375 3,594 Total $ 11,273 $ 11,078 Revenues by main geography: US&C $ 6,798 $ 6,707 LATAM 3,120 3,169 EMEA 969 671 APAC 386 531 Total $ 11,273 $ 11,078 (a) Only the United States and Colombia represented 10% or more of our total revenue in either period presented.
Deferred Contract Acquisition Costs	The following table summarizes the activity of the deferred contract acquisition costs (in thousands): Three Months Ended Year Ended March 31, 2023 December 31, 2022 Beginning balance $ 4,611 $ 4,305 Capitalization of contract acquisition costs 771 6,146 Amortization of deferred contract acquisition costs (953) (5,951) Impacts of foreign currency translation 107 111 Ending balance $ 4,536 $ 4,611 Deferred contract acquisition costs, current $ 1,520 $ 1,508 Deferred contract acquisition costs, noncurrent $ 3,016 $ 3,103

Financial Instruments and Fai_2

Financial Instruments and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Liabilities Measured on Recurring Basis	The following table summarizes fair value measurements by level at March 31, 2023 and December 31, 2022 for instruments measured at fair value on a recurring basis (in thousands): Level 1 Level 2 Level 3 Total March 31, 2023 Financial liability: Embedded derivative liability $ — $ — $ 66 $ 66 December 31, 2022 Financial liability: Embedded derivative liability $ — $ — $ 19,700 $ 19,700
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 months ended March 31, 2023 and 2022 (in thousands): Embedded derivative liability Total liabilities Balance at January 1, 2023 $ 19,700 $ 19,700 Gain included in earnings (19,634) (19,634) Balance as of March 31, 2023 $ 66 $ 66 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

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable, Allowance for Doubtful Accounts	The activity in the allowance for current expected credit losses was as follows (in thousands): Three Months Ended Year Ended March 31, 2023 December 31, 2022 Beginning balance $ 52 $ 163 Provision for allowance for current expected credit losses 16 857 Write offs — (952) Impacts of foreign currency translation 2 (16) Ending balance $ 70 $ 52 The Company does not have a delinquency threshold for writing-off accounts receivable. The Company has a formal process for the review and approval of write offs. Impairment losses on trade receivables, if any, would be presented as net impairment losses within cost of revenue, exclusive of amortization in the unaudited condensed consolidated statements of operations. Subsequent recoveries of amounts previously written off, when applicable, are credited against the allowance for expected current credit losses within accounts receivable, net on the unaudited condensed consolidated balance sheets.
Schedule of Prepaid and Other Current Assets	Our prepaid and other current assets consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Prepaid expenses $ 2,392 $ 2,879 Withholding taxes 484 638 Total 2,876 3,517
Schedule of Property and Equipment, Net	Our property and equipment, net consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Leasehold improvements $ 3,901 $ 3,912 Equipment and fixtures 4,102 4,078 8,003 7,990 Less: accumulated depreciation and amortization (6,564) (6,373) Property and equipment, net $ 1,439 $ 1,617
Schedule of Accrued Expenses	Our accrued expenses consisted of the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Accrued compensation and benefits $ 5,335 $ 4,483 Accrued interest 3,845 3,506 Accrued services 763 1,092 Accrued income taxes 99 350 Accrued other taxes 787 767 Other 53 42 Total $ 10,882 $ 10,240

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Acquired Finite-Lived Intangible Assets	Acquired intangibles subject to amortization consist of the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Weighted Gross Accumulated Net Gross Accumulated Net Customer relationships $ 30,157 $ (19,904) $ 10,253 $ 30,157 $ (19,064) $ 11,093 3.4 Trademarks and tradenames 17,932 (9,128) 8,804 17,932 (8,826) 9,106 7.8 Developed technology 34,278 (28,871) 5,407 34,279 (28,029) 6,250 1.6 Total $ 82,367 $ (57,903) $ 24,464 $ 82,368 $ (55,919) $ 26,449
Schedule of Future Amortization Expense	Future amortization expense of intangible assets is as follows (in thousands): For the years ending: Remaining 2023 $ 5,956 2024 7,377 2025 4,224 2026 2,297 2027 1,140 Thereafter 3,470 Total $ 24,464

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Schedule of Lease, Cost	The following is a summary of our operating lease costs for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 2022 Operating lease cost $ 185 $ 274 Short-term lease cost 60 29 Variable lease cost 16 4 Total operating lease costs $ 261 $ 307
Schedule of Assets and Liabilities, Lessee	The following table presents information about leases on our condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Operating lease right-of-use assets $ 1,528 $ 1,679 Operating lease liabilities, current $ 581 $ 619 Operating lease liabilities, noncurrent $ 1,138 $ 1,261
Schedule of Lessee, Operating Lease, Liability, Maturity	Maturities of operating lease liabilities consisted of the following as of March 31, 2023 (in thousands): For the years ending: Remaining 2023 $ 435 2024 556 2025 529 2026 356 2027 27 Thereafter — Total future minimum lease payments 1,903 Less: Imputed interest (184) Total $ 1,719

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Debt	Our debt consists of the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 December 31, 2022 Revolving Credit Facility $ 48,500 $ 46,500 Principal amount of Convertible Senior Notes 77,063 75,000 Unamortized debt issuance costs (1,020) (1,231) Net carrying amount 76,043 73,769 Total debt $ 124,543 $ 120,269
Schedule of Interest Income and Interest Expense Disclosure	Interest expense, net for the three months ended March 31, 2023 and 2022 was as follows (in thousands): Three Months Ended March 31, 2023 2022 Interest expense on Revolving Credit Facility $ 1,196 $ — Interest expense on Convertible Senior Notes 1,206 938 Amortization of debt issuance costs 211 194 Other, net (23) (1) Total interest expense, net $ 2,590 $ 1,131

Profit Interest Units of SIS _2

Profit Interest Units of SIS Holdings LP (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Equity-Based Compensation Expense	These amounts are included in the following captions in the condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ — $ 62 Sales and marketing 42 81 Total $ 42 $ 143

Appgate, Inc. 2021 Incentive _2

Appgate, Inc. 2021 Incentive Compensation Plan (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Nonvested Share Activity	The following table summarizes nonvested RSUs and PSUs activity for the three months ended March 31, 2023 and 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, 2022 — $ — 9,210,180 $ 13.29 49,878 $ 13.07 Granted — 0.00 1,000,000 1.85 — 0.00 Vested — 0.00 — 0.00 — 0.00 Forfeited — 0.00 (1,733,377) 10.02 (2,293) 14.39 Nonvested at March 31, 2023 — $ — 8,476,803 $ 11.12 47,585 $ 13.25 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

401(k) Savings Plan (Tables)

401(k) Savings Plan (Tables)	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Schedule of 401(k) Savings Plan	These amounts are included in the following captions in the condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenue $ 32 $ 33 Sales and marketing 76 176 Research and development 13 24 General and administrative 23 39 Total $ 144 $ 272

Business and Summary of Signi_3

Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cash and cash equivalents	$ 7,780	$ 11,251	$ 11,531
Loss from continuing operations	(8,534)	$ (21,433)
Accumulated deficit	538,359		$ 546,054
Revolving Credit Facility | Line of Credit
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Line of credit facility, remaining borrowing capacity	$ 1,500

Income (Loss) per Common Shar_2

Income (Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Antidilutive shares excluded from computation of earnings per share (shares)	11,284,833	10,982,805
Numerator:
Net income (loss) attributable to common stockholders - basic	$ 7,695	$ (69,102)
Add: Effect of mark-to-market adjustment recognized during the period	(19,634)	46,143
Net loss attributable to common stockholders - diluted	$ (11,939)	$ (22,959)
Denominator:
Weighted-average shares of common stock - basic (in shares)	131,793,660	131,793,660
Effect from conversion of shares of common stock under the Convertible Senior Notes (in shares)	11,284,833	0
Weighted-average shares of common stock - diluted (in shares)	143,078,493	131,793,660
Basic income (loss) per share (in dollars per share)	$ 0.06	$ (0.52)
Diluted (loss) income per share (in dollars per share)	$ (0.08)	$ (0.52)

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 11,273	$ 11,078
Total subscription revenue
Disaggregation of Revenue [Line Items]
Revenue	9,447	8,864
Total subscription term-based licenses
Disaggregation of Revenue [Line Items]
Revenue	6,465	5,635
Multi-year subscription term-based licenses
Disaggregation of Revenue [Line Items]
Revenue	3,221	2,831
1-year subscription term-based licenses
Disaggregation of Revenue [Line Items]
Revenue	3,244	2,804
Subscription SaaS
Disaggregation of Revenue [Line Items]
Revenue	2,062	2,296
Support and maintenance
Disaggregation of Revenue [Line Items]
Revenue	920	933
Perpetual licenses
Disaggregation of Revenue [Line Items]
Revenue	317	156
Services and other
Disaggregation of Revenue [Line Items]
Revenue	$ 1,509	$ 2,058

Revenue - Revenue by Geographic

Revenue - Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 11,273	$ 11,078
United States
Disaggregation of Revenue [Line Items]
Revenue	$ 5,948	$ 5,857
United States | Geographic Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk, percentage, at least	10%	10%
Colombia
Disaggregation of Revenue [Line Items]
Revenue	$ 950	$ 1,627
Colombia | Geographic Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk, percentage, at least	10%	10%
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 4,375	$ 3,594
US&C
Disaggregation of Revenue [Line Items]
Revenue	6,798	6,707
LATAM
Disaggregation of Revenue [Line Items]
Revenue	3,120	3,169
EMEA
Disaggregation of Revenue [Line Items]
Revenue	969	671
APAC
Disaggregation of Revenue [Line Items]
Revenue	$ 386	$ 531

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Capitalized Contract Cost [Line Items]
Contract liability, revenue recognized	$ 2,800,000	$ 2,700,000
Description of payment terms	Payment terms on invoiced amounts are typically 30 days to 45 days
Unbilled receivables	$ 8,000,000		$ 10,600,000
Capitalized contract cost, impairment loss	0	$ 0
Sales commissions accrued but not paid	$ 600,000		$ 900,000
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	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 35.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	47%
Remaining performance obligation, expected timing of satisfaction, period	12 months

Revenue - Capitalized Contract

Revenue - Capitalized Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Capitalized Contract Cost Activity [Roll Forward]
Beginning balance	$ 4,611	$ 4,305	$ 4,305
Capitalization of contract acquisition costs	771		6,146
Amortization of deferred contract acquisition costs	(953)	$ (1,566)	(5,951)
Impacts of foreign currency translation	107		111
Ending balance	4,536		4,611
Deferred contract acquisition costs, current	1,520		1,508
Deferred contract acquisition costs, noncurrent	$ 3,016		$ 3,103

Financial Instruments and Fai_3

Financial Instruments and Fair Value Measurements - Narrative (Details) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible notes, carrying value	$ 76	$ 73.8
Convertible notes, fair value	$ 68.2	$ 64.6
Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt instrument, remaining term	10 months 24 days	1 year 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	0.970	0.725
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	0.2146	0.2178

Financial Instruments and Fai_4

Financial Instruments and Fair Value Measurements - Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	$ 0	$ 19,700
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	66	19,700
Fair Value, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	0	0
Fair Value, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	0	0
Fair Value, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	$ 66	$ 19,700

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
	Mar. 31, 2023	Mar. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning	$ 19,700	$ 78,497
Gain (Loss) included in earnings	(19,634)	46,143
Balance at ending	66	124,640
Embedded derivative liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning	19,700	78,497
Gain (Loss) included in earnings	(19,634)	46,143
Balance at ending	$ 66	$ 124,640

Balance Sheet Components - Acco

Balance Sheet Components - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 52	$ 163	$ 163
Provision for allowance for current expected credit losses	16	$ 72	857
Write offs	0		(952)
Impacts of foreign currency translation	2		(16)
Ending balance	$ 70		$ 52

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 2,392	$ 2,879
Withholding taxes	484	638
Total	$ 2,876	$ 3,517

Balance Sheet Components - Prop

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8,003		$ 7,990
Less: accumulated depreciation and amortization	(6,564)		(6,373)
Property and equipment, net	1,439		1,617
Depreciation and amortization, property and equipment	200	$ 200
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,901		3,912
Equipment and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,102		$ 4,078

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued compensation and benefits	$ 5,335	$ 4,483
Accrued interest	3,845	3,506
Accrued services	763	1,092
Accrued income taxes	99	350
Accrued other taxes	787	767
Other	53	42
Total	$ 10,882	$ 10,240

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 71,604,000		$ 71,604,000
Loss on disposition of intangible assets	1,700,000
Amortization of intangible assets	2,000,000	$ 2,100,000
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	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross	$ 82,367	$ 82,368
Accumulated amortization	(57,903)	(55,919)
Total	24,464	26,449
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	30,157	30,157
Accumulated amortization	(19,904)	(19,064)
Total	$ 10,253	11,093
Weighted average remaining useful life (in years)	3 years 4 months 24 days
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Gross	$ 17,932	17,932
Accumulated amortization	(9,128)	(8,826)
Total	$ 8,804	9,106
Weighted average remaining useful life (in years)	7 years 9 months 18 days
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross	$ 34,278	34,279
Accumulated amortization	(28,871)	(28,029)
Total	$ 5,407	$ 6,250
Weighted average remaining useful life (in years)	1 year 7 months 6 days

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining 2023	$ 5,956
2024	7,377
2025	4,224
2026	2,297
2027	1,140
Thereafter	3,470
Total	$ 24,464	$ 26,449

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 185	$ 274
Short-term lease cost	60	29
Variable lease cost	16	4
Total operating lease costs	$ 261	$ 307

Leases - Balance Sheet Disclosu

Leases - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease right-of-use assets	$ 1,528	$ 1,679
Operating lease liabilities, current	581	619
Operating lease liabilities, noncurrent	$ 1,138	$ 1,261

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Leases [Abstract]
Weighted average remaining lease term	3 years 4 months 24 days		3 years 6 months
Operating lease, weighted average discount rate, percent	6.55%		6.52%
Cash paid for amounts included in the measurement of operating lease liabilities	$ 200,000	$ 200,000
Right-of-use asset obtained in exchange for operating lease liability	$ 0	$ 0

Leases - Lease Liability Maturi

Leases - Lease Liability Maturity (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Remaining 2023	$ 435
2024	556
2025	529
2026	356
2027	27
Thereafter	0
Total future minimum lease payments	1,903
Less: Imputed interest	(184)
Total	$ 1,719

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total debt	$ 124,543	$ 120,269
Convertible Debt | Notes
Debt Instrument [Line Items]
Principal amount of Convertible Senior Notes	77,063	75,000
Unamortized debt issuance costs	(1,020)	(1,231)
Total debt	76,043	73,769
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Revolving Credit Facility	$ 48,500	$ 46,500

Debt - Schedule of Interest Inc

Debt - Schedule of Interest Income and Interest Expense Disclosure (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 211	$ 194
Other, net	2,590	1,131
Notes
Debt Instrument [Line Items]
Amortization of debt issuance costs	211	194
Convertible Debt | Notes
Debt Instrument [Line Items]
Total interest expense, net	1,206	938
Notes | Related Party Promissory Notes
Debt Instrument [Line Items]
Total interest expense, net	(23)	(1)
Revolving Credit Facility
Debt Instrument [Line Items]
Total interest expense, net	$ 1,196	$ 0

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)		3 Months Ended	12 Months Ended
	Feb. 09, 2022	Mar. 31, 2023	Dec. 31, 2022	Feb. 01, 2023	Apr. 26, 2022	Mar. 31, 2022	Oct. 12, 2021	Feb. 09, 2021
Debt Instrument [Line Items]
Interest payable		$ 3,800,000	$ 3,500,000
Cash and cash equivalents		7,780,000	11,531,000			$ 11,251,000
Sale of stock, consideration received on transaction	$ 40,000,000
Derivative liability		$ 0	19,700,000
Notes
Debt Instrument [Line Items]
Convertible debt, shares issuable (in shares)		11,284,833
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, borrowing capacity					$ 50,000,000
Interest rate					10%
Amount borrowed on line of credit		$ 2,000,000
Revolving Credit Facility		48,500,000	46,500,000
Convertible Debt | Notes
Debt Instrument [Line Items]
Debt instrument, covenant, minimum liquidity requirement		$ 10,000,000
Debt instrument, face amount								$ 50,000,000
Debt instrument, additional amount issuable at option of the issuer							$ 25,000,000
Proceeds from debt, net of issuance costs			72,800,000
Debt issuance costs			2,200,000
Debt instrument, debt default, percentage of holders that can call debt, minimum		25%
Default interest rate		1.50%
Debt instrument, redemption feature, fair value		$ 0
Derivative liability		$ 100,000	$ 19,700,000
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%
Debt instrument, face amount				$ 2,100,000
Convertible Debt | Notes | Repurchase Upon a Fundamental Change
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage		100%
Convertible Debt | Notes | Repurchase Upon a Change of Control
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage		102%

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Letters of credit outstanding, amount	$ 0
Long-term purchase commitment, amount	3,600,000
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 ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Equity-based compensation costs	$ 42,000	$ 143,000
Equity-based compensation costs, tax benefit	$ 0		$ 0

Profit Interest Units of SIS _4

Profit Interest Units of SIS Holdings LP - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs	$ 42	$ 143
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs	0	62
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation costs	$ 42	$ 81

Appgate, Inc. 2021 Incentive _3

Appgate, Inc. 2021 Incentive Compensation Plan - Schedule of Nonvested RSUs and PSUs Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
RSUs | Time-based
Shares
Outstanding, beginning balance (in shares)	0	0
Granted (in shares)	0	1,102,217
Vested (in shares)	0	0
Forfeited (in shares)	0	0
Outstanding, ending balance (in shares)	0	1,102,217
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning balance (in dollars per share)	$ 0	$ 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 (in dollars per share)	$ 0	$ 13
RSUs | Performance-based
Shares
Outstanding, beginning balance (in shares)	9,210,180	0
Granted (in shares)	1,000,000	4,436,129
Vested (in shares)	0	0
Forfeited (in shares)	(1,733,377)	(107,748)
Outstanding, ending balance (in shares)	8,476,803	4,328,381
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning balance (in dollars per share)	$ 13.29	$ 0
Granted (in dollars per share)	1.85	13.14
Vested (in dollars per share)	0	0
Forfeited (in dollars per share)	10.02	13
Outstanding, ending balance (in dollars per share)	$ 11.12	$ 13.14
PSUs | Performance-based
Shares
Outstanding, beginning balance (in shares)	49,878	0
Granted (in shares)	0	58,519
Vested (in shares)	0	0
Forfeited (in shares)	(2,293)	(1,433)
Outstanding, ending balance (in shares)	47,585	57,086
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning balance (in dollars per share)	$ 13.07	$ 0
Granted (in dollars per share)	0	13.17
Vested (in dollars per share)	0	0
Forfeited (in dollars per share)	14.39	13
Outstanding, ending balance (in dollars per share)	$ 13.25	$ 13.17

Appgate, Inc. 2021 Incentive _4

Appgate, Inc. 2021 Incentive Compensation Plan - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Equity-based compensation costs	$ 42	$ 143
2021 Plan
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Equity-based compensation costs	$ 3,600

401(k) Savings Plan - Narrative

401(k) Savings Plan - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	$ 144	$ 272
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
	Mar. 31, 2023	Mar. 31, 2022
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	$ 144	$ 272
Cost of revenue
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	32	33
Sales and marketing
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	76	176
Research and development
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	13	24
General and administrative
Defined Contribution Plan Disclosure [Line Items]
Matching contributions	$ 23	$ 39

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense of continuing operations	$ 749	$ 291

Segment and Geographic Inform_2

Segment and Geographic Information (Details)	3 Months Ended
	Mar. 31, 2023 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
	Mar. 31, 2023 USD ($) boardMember	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Apr. 26, 2022
SIS Holdings | Legacy Appgate
Related Party Transaction [Line Items]
Ownership percentage				89%
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	3
Cyxtera Technologies, Inc. | Sale of Cybersecurity Products and Services
Related Party Transaction [Line Items]
Related party receivable	$ 0		$ 4,000
Cyxtera Technologies, Inc. | Purchase of Data Center Co-Location and CXD Services
Related Party Transaction [Line Items]
Expenses for related party transaction	100,000	$ 100,000
Related party payables	$ 27,000		100,000
Chewy, Inc.
Related Party Transaction [Line Items]
Number of board members | boardMember	2
Chewy, Inc. | Sale of Cybersecurity Products and Services
Related Party Transaction [Line Items]
Related party receivable	$ 0		0
Amount charged to related party	$ 100,000
PetSmart
Related Party Transaction [Line Items]
Number of board members | boardMember	1
Director | PetSmart
Related Party Transaction [Line Items]
Revenue from related party transaction	$ 100,000
CenturyLink Communications, LLC | Sale of Cybersecurity Products and Services
Related Party Transaction [Line Items]
Related party receivable	200,000		$ 100,000
Amount charged to related party	200,000	100,000
Revenue from related party transaction	$ 200,000	$ 200,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	May 09, 2023	Apr. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Cash and cash equivalents			$ 7,780,000	$ 11,531,000	$ 11,251,000
Notes | Convertible Debt
Subsequent Event [Line Items]
Debt instrument, covenant, minimum liquidity requirement			$ 10,000,000
RSUs | Time-based
Subsequent Event [Line Items]
Awards outstanding (in shares)			0	0	1,102,217	0
RSUs | Performance-based
Subsequent Event [Line Items]
Awards outstanding (in shares)			8,476,803	9,210,180	4,328,381	0
PSUs | Performance-based
Subsequent Event [Line Items]
Awards outstanding (in shares)			47,585	49,878	57,086	0
Subsequent Event
Subsequent Event [Line Items]
Cash and cash equivalents		$ 10,000,000
Subsequent Event | Notes | Convertible Debt
Subsequent Event [Line Items]
Debt instrument, covenant, minimum liquidity requirement		$ 10,000,000
Subsequent Event | RSUs | Time-based
Subsequent Event [Line Items]
Awards outstanding (in shares)	0
Subsequent Event | RSUs | Performance-based
Subsequent Event [Line Items]
Awards outstanding (in shares)	7,649,772
Subsequent Event | PSUs
Subsequent Event [Line Items]
Awards outstanding (in shares)	47,453