AudioEye (AEYE) 10-Q30 Apr 242024 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	Apr. 25, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38640
Entity Registrant Name	AUDIOEYE INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2939845
Entity Address, Postal Zip Code	85711
Entity Address, Address Line One	5210 East Williams Circle
Entity Address, Address Line Two	Suite 750
Entity Address, City or Town	Tucson
Entity Address, State or Province	AZ
City Area Code	866
Local Phone Number	331-5324
Title of 12(b) Security	Common Stock, par value $0.00001 per share
Trading Symbol	AEYE
Security Exchange Name	NASDAQ
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		11,638,941
Entity Central Index Key	0001362190
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash	$ 7,040	$ 9,236
Accounts receivable, net of allowance for doubtful accounts of $502 and $496, respectively	5,084	4,828
Prepaid expenses and other current assets	838	712
Total current assets	12,962	14,776
Property and equipment, net of accumulated depreciation of $273 and $251, respectively	238	218
Right of use assets	530	611
Intangible assets, net of accumulated amortization of $7,973 and $7,423, respectively	5,723	5,783
Goodwill	4,001	4,001
Other	107	106
Total assets	23,561	25,495
Current liabilities:
Accounts payable and accrued expenses	2,530	2,339
Operating lease liabilities	249	312
Finance lease liabilities	1	7
Deferred revenue	6,254	6,472
Contingent consideration	2,387	2,399
Total current liabilities	11,421	11,529
Long term liabilities:
Term loan, net	6,750	6,727
Operating lease liabilities	368	417
Deferred revenue	2	10
Other	105	105
Total liabilities	18,646	18,788
Stockholders' equity:
Preferred stock, $0.00001 par value, 10,000 shares authorized
Common stock, $0.00001 par value, 50,000 shares authorized, 11,662 and 11,711 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	1	1
Additional paid-in capital	96,905	96,182
Accumulated deficit	(91,991)	(89,476)
Total stockholders' equity	4,915	6,707
Total liabilities and stockholders' equity	$ 23,561	$ 25,495

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 502	$ 496
Property and equipment, accumulated depreciation	273	251
Intangible assets, accumulated amortization	$ 7,973	$ 7,423
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000	10,000
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	11,662	11,711
Common stock, shares outstanding	11,662	11,711

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 8,083	$ 7,772
Cost of revenue	1,761	1,702
Gross profit	6,322	6,070
Operating expenses:
Selling and marketing	3,003	3,243
Research and development	1,322	1,746
General and administrative	2,628	3,135
Total operating expenses	6,953	8,124
Operating loss	(631)	(2,054)
Other income (expense):
Interest income (expense), net	(198)	43
Net loss	$ (829)	$ (2,011)
Net loss per common share-basic (in dollars per share)	$ (0.07)	$ (0.17)
Net loss per common share-diluted (in dollars per share)	$ (0.07)	$ (0.17)
Weighted average common shares outstanding-basic (in shares)	11,709	11,637
Weighted average common shares outstanding-diluted (in shares)	11,709	11,637

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional Paid in Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2022	$ 1	$ 93,070	$ (82,482)	$ 10,589
Balance (in shares) at Dec. 31, 2022	11,551
Common stock issued upon settlement of restricted stock units (in shares)	192
Issuance of common stock for services (in shares)	10
Surrender of stock to cover tax liability on settlement of employee stock-based awards		(258)		(258)
Surrender of stock to cover tax liability on settlement of employee stock-based awards (in shares)	(56)
Stock-based compensation		1,118		1,118
Net loss			(2,011)	(2,011)
Balance at Mar. 31, 2023	$ 1	93,930	(84,493)	9,438
Balance (in shares) at Mar. 31, 2023	11,697
Balance at Dec. 31, 2023	$ 1	96,182	(89,476)	6,707
Balance (in shares) at Dec. 31, 2023	11,711
Common stock issued upon settlement of restricted stock units (in shares)	235
Issuance of common stock for services (in shares)	7
Surrender of stock to cover tax liability on settlement of employee stock-based awards		(160)		(160)
Surrender of stock to cover tax liability on settlement of employee stock-based awards (in shares)	(25)
Common stock repurchased for retirement			(1,686)	(1,686)
Common stock repurchased for retirement (in shares)	(266)
Stock-based compensation		883		883
Net loss			(829)	(829)
Balance at Jan. 31, 2024	$ 1	96,905	(91,991)	4,915
Balance (in shares) at Jan. 31, 2024	11,662
Balance at Dec. 31, 2023	$ 1	$ 96,182	$ (89,476)	6,707
Balance (in shares) at Dec. 31, 2023	11,711
Net loss				(829)
Balance at Mar. 31, 2024				$ 4,915

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended			12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (829,000)		$ (2,011,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	572,000		526,000
Loss on disposal or impairment of long-lived assets			147,000
Stock-based compensation expense	883,000		1,118,000
Amortization of deferred commissions	10,000		19,000
Amortization of debt discount and issuance costs	23,000
Amortization of right of use assets	81,000		111,000
Change in fair value of contingent consideration	(12,000)		55,000
Provision for accounts receivable	28,000		(84,000)
Changes in operating assets and liabilities:
Accounts receivable	(284,000)		935,000
Prepaid expenses and other assets	(137,000)		(7,000)
Accounts payable and accruals	206,000		43,000
Operating lease liability	(112,000)	$ 40,000	(113,000)
Deferred revenue	(226,000)		(442,000)
Net cash provided by operating activities	203,000		297,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment	(57,000)		(7,000)
Software development costs	(490,000)		(473,000)
Net cash used in investing activities	(547,000)		(480,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments related to settlement of employee shared-based awards	(160,000)		(258,000)
Settlement of contingent consideration			(908,000)
Repurchase of common stock	(1,686,000)
Repayments of finance leases	(6,000)		(12,000)
Net cash used in financing activities	(1,852,000)		(1,178,000)
Net decrease in cash	(2,196,000)		(1,361,000)
Cash-beginning of period	9,236,000	$ 5,543,000	6,904,000	$ 6,904,000
Cash-end of period	$ 7,040,000		$ 5,543,000	$ 9,236,000

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
BASIS OF PRESENTATION	Mar. 31, 2024
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 1 — BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements of AudioEye, Inc. and its wholly-owned subsidiary, Springtime, Inc. (“we”, “our” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) and the rules of the Securities and Exchange Commission (the “SEC”), and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”), as filed with the SEC on March 7, 2024. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Certain information and disclosures normally contained in the audited consolidated financial statements as reported in the Company’s Annual Report on Form 10-K have been condensed or omitted in accordance with the SEC’s rules and regulations for interim reporting.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Mar. 31, 2024
SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies are presented in “Note 2 – Significant Accounting Policies” in the 2023 Form 10-K. Users of financial information for interim periods are encouraged to refer to the footnotes to the consolidated financial statements contained in the 2023 Form 10-K when reviewing interim financial results. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the consolidated financial statements and during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to stock-based compensation, allowance for doubtful accounts, and intangible assets. Actual results may differ from these estimates. Revenue Recognition We derive our revenue primarily from the sale of internally developed software by a software-as-a-service (“SaaS”) delivery model, as well as from professional services, through our direct sales force or through third-party resellers. Our SaaS fees include support and maintenance. We recognize revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers We determine revenue recognition through the following five steps: ● Identify the contract with the customer; ● Identify the performance obligations in the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract; and ● Recognize revenue when, or as, the performance obligations are satisfied. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Performance obligations are the unit of accounting for revenue recognition and generally represent the distinct goods or services that are promised to the customer. If we determine that we have not satisfied a performance obligation, we will defer recognition of the revenue until the performance obligation is deemed to be satisfied. SaaS agreements are generally non-cancelable, although clients typically have the right to terminate their contracts for cause if we fail to perform material obligations. Our SaaS revenue is comprised of fixed subscription fees from customer accounts on our platform related to our software products. Our support revenue is comprised of subscription fees for customers for legal, remediation, and other support services. SaaS and support (also referred to as “subscription”) revenue is recognized on a ratable basis over the contractual subscription term of the arrangement beginning on the date that our service is made available to the customer. Certain SaaS and support fees are invoiced in advance on an annual, semi-annual, or quarterly basis. Any funds received for services not provided yet are held in deferred revenue and are recorded as revenue when the related performance obligations have been satisfied. Non-subscription revenue consists primarily of PDF remediation and Website and Mobile App report services, and is recognized upon delivery. Consideration payable under PDF remediation arrangements is based on usage. Consideration payable under non-subscription Website and Mobile App report services arrangements is based on fixed fees. The following table presents our revenues disaggregated by sales channel: Three months ended March 31, (in thousands) 2024 2023 Partner and Marketplace $ 4,734 $ 4,342 Enterprise 3,349 3,430 Total revenues $ 8,083 $ 7,772 The Company records accounts receivable for amounts invoiced to customers for which the Company has an unconditional right to consideration as provided under the contractual arrangement. Deferred revenue includes payments received in advance of performance under the contract and is reported on an individual contract basis at the end of each reporting period. Deferred revenue is classified as current or noncurrent based on the timing of when we expect to recognize revenue. The table below summarizes our deferred revenue as of March 31, 2024 and December 31, 2023: March 31, December 31, (in thousands) 2024 2023 Deferred revenue — current $ 6,254 $ 6,472 Deferred revenue — noncurrent 2 10 Total deferred revenue $ 6,256 $ 6,482 In the three-month period ended March 31, 2024, we recognized $3,055,000, or 47%, in revenue from deferred revenue outstanding as of December 31, 2023. We had one customer (including the customer’s affiliates reflecting multiple contracts and a partnership with the Company) which accounted for approximately 16% of our total revenue in each of the three months ended March 31, 2024 and 2023. One major customer represented 16% of total accounts receivable as of March 31, 2024 and December 31, 2023. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Deferred Costs (Contract acquisition costs) We capitalize initial and renewal sales commissions in the period the commission is earned, which generally occurs when a customer contract is obtained, and amortize deferred commission costs on a straight-line basis over the expected period of benefit, which we have deemed to be the contract term. As a practical expedient, we expense sales commissions as incurred when the amortization period of related deferred commission costs would have been one year or less. The table below summarizes the deferred commission costs as of March 31, 2024 and December 31, 2023, which are included in Prepaid expenses and other current assets on our consolidated balance sheets: March 31, December 31, (in thousands) 2024 2023 Deferred costs — current $ 19 $ 20 Deferred costs — noncurrent 3 2 Total deferred costs $ 22 $ 22 Amortization expense associated with sales commissions was included in Selling and marketing expenses on the consolidated statements of operations and totaled $10,000 and $19,000, respectively, for the three-month periods ended March 31, 2024 and 2023. Debt Discount and Debt Issuance Costs Costs related to the issuance of debt due to the lender (debt discount) or to third parties (debt issuance costs) are capitalized and amortized to interest expense based on the effective interest method over the term of the related debt. Debt discount and debt issuance costs are presented on the Company's consolidated balance sheets as a direct deduction from the carrying amount of our term loan. Employee Stock Purchase Plan In May 2022, the stockholders of the Company approved the Company’s Employee Stock Purchase Plan (the “ESPP”), which provides for the issuance of up to 500,000 shares of common stock. Eligible employees may elect to have a percentage of eligible compensation withheld to purchase shares of our common stock at the end of each purchase period. The Company expects each purchase period to be the six month periods ending on June 30 or December 31 of each calendar year. The purchase price per share is expected to equal 85% of the fair market value of our common stock on the last trading day of the purchase period. Under the ESPP, a participant may not be granted rights to purchase more than $25,000 worth of common stock for each calendar year and no participant may purchase more than 1,500 shares of our common stock (or such other number as the Compensation Committee may designate) on any one purchase date. As of March 31, 2024, 15,484 shares had been issued under the ESPP and 484,516 shares remained available under the plan. Stock-Based Compensation The Company periodically issues options, restricted stock units (“RSUs”), and shares of its common stock as compensation for services received from its employees, directors, and consultants. The fair value of the award is measured on the grant date. The fair value amount is then recognized as expense over the requisite vesting period during which services are required to be provided in exchange for the award. We recognize forfeitures as they occur. Stock-based compensation expense is recorded in the same expense classifications in the consolidated statements of operations as if such amounts were paid in cash. The fair value of options awards is measured on the grant date using a Black-Scholes option pricing model, which includes assumptions that are subjective and are generally derived from external data (such as risk-free rate of interest) and historical data (such as volatility factor and expected term). NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) We estimate the fair value of restricted stock unit awards with time- or performance-based vesting using the value of our common stock on the grant date. We estimate the fair value of market-based restricted stock unit awards as of the grant date using the Monte Carlo simulation model. We expense the compensation cost associated with time-based options and RSUs as the restriction period lapses, which is typically a one The following table summarizes the stock-based compensation expense recorded for the three months ended March 31, 2024 and 2023: Three months ended March 31, (in thousands) 2024 2023 Options $ 4 $ 77 RSUs 813 987 Unrestricted shares of common stock 66 54 Total $ 883 $ 1,118 As of March 31, 2024, the outstanding unrecognized stock-based compensation expense related to options and RSUs was $1,000 and $3,847,000, respectively, which may be recognized through January 2027, subject to achievement of service, performance, and market conditions. Earnings (Loss) Per Share (“EPS”) Basic EPS is calculated by dividing net income (loss) available to common stockholders by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted EPS is calculated based on the net income (loss) available to common stockholders and the weighted average number of shares of common stock outstanding during the period, adjusted for the effects of all potential dilutive common stock issuances related to options and restricted stock units. The dilutive effect of our stock-based awards is computed using the treasury stock method, which assumes all stock-based awards are exercised and the hypothetical proceeds from exercise are used to purchase common stock at the average market price during the period. The incremental shares (i.e., the difference between shares assumed to be issued versus purchased), to the extent they would have been dilutive, are included in the denominator of the diluted EPS calculation. However, when a net loss exists, no potential common stock equivalents are included in the computation of the diluted per-share amount because the computation would result in an anti-dilutive per-share amount. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Potentially dilutive securities outstanding as of March 31, 2024 and 2023, which were excluded from the computation of basic and diluted net loss per share for the periods then ended, are as follows: March 31, (in thousands) 2024 2023 Options 105 151 Restricted stock units 1,557 1,940 Total 1,662 2,091 The following table summarizes the stock option and RSUs activity for the three months ended March 31, 2024: Options RSUs Outstanding at December 31, 2023 112,279 1,707,258 Granted — 122,721 Exercised/Settled (1,000) (234,617) Forfeited/Expired (6,740) (38,235) Outstanding at March 31, 2024 104,539 1,557,127 Vested at March 31, 2024 103,737 475,945 Unvested at March 31, 2024 802 1,081,182 Stock Repurchases In the fourth quarter of 2023, the Board of Directors of the Company approved a program to repurchase up to $5 million of its outstanding shares of common stock through December 31, 2025. In 2023, we used $1.12 million of the program to repurchase shares. In the three months ended March 31, 2024, we used $1.69 million of the program to repurchase shares. As of March 31, 2024, we had $2.19 million remaining for the repurchase of shares. Shares repurchased by the Company are immediately retired. The Company made an accounting policy election to charge the excess of repurchase price over par value entirely to retained earnings. Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures,

ACQUISITIONS

ACQUISITIONS	3 Months Ended
ACQUISITIONS	Mar. 31, 2024
ACQUISITIONS
ACQUISITIONS	NOTE 3 — ACQUISITIONS Bureau of Internet Accessibility Inc. On March 9, 2022, we entered into a Stock Purchase Agreement (“Purchase Agreement”) to acquire all the outstanding equity interests of Bureau of Internet Accessibility Inc. (“BOIA”), a Delaware corporation which provides web accessibility services including audits, training, remediation and implementation support. The aggregate consideration for the purchase of BOIA was approximately $7.5 million (at fair value), consisting of $5.1 million cash payment at closing, $0.2 million cash received in the third quarter of 2022 resulting from net working capital adjustments, and an estimated $2.6 million in aggregate contingent consideration to be paid in cash following the one We accounted for the acquisition of BOIA as business combination in accordance with FASB ASC 805, “Business Combinations” (“ASC 805”). Accordingly, under the acquisition method of accounting, we allocated the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values, and recognized goodwill for the excess of purchase price over the estimated fair value of net tangible and intangible assets acquired. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives of 2 to 7 years. In the three months ended March 31, 2024 and 2023, amortization expense associated with acquired intangible assets totaled $177,000 and $179,000, respectively. As of March 31, 2024, contingent consideration totaled $2,387,000, which represented the estimated fair value of the second anniversary payment expected to be settled in the second quarter of 2024. For the three months ended March 31, 2024 and 2023, we recorded $12,000 and $(55,000), respectively, in income (expense) related to the change in the fair value of contingent consideration, which is included in General and administrative in the accompanying Consolidated Statements of Operations.

LEASE LIABILITIES AND RIGHT OF

LEASE LIABILITIES AND RIGHT OF USE ASSETS	3 Months Ended
LEASE LIABILITIES AND RIGHT OF USE ASSETS	Mar. 31, 2024
LEASE LIABILITIES AND RIGHT OF USE ASSETS
LEASE LIABILITIES AND RIGHT OF USE ASSETS	NOTE 4 — LEASE LIABILITIES AND RIGHT OF USE ASSETS We determine whether an arrangement is a lease at inception. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Finance Leases The Company has finance leases to purchase computer equipment that expire in the second quarter of 2024. The amortization expense of the leased equipment is included in depreciation expense. As of March 31, 2024 and December 31, 2023, the Company’s outstanding finance lease obligations totaled $1,000 and $7,000, respectively. The effective interest rate of the finance leases is estimated at 6.0% based on the implicit rate in the lease agreements. Operating Leases Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since our lease arrangements do not provide an implicit rate, we use our estimated incremental borrowing rate for the expected remaining lease term at commencement date in determining the present value of future lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has operating leases for office space in Tucson, Arizona, New York, New York, and Miami Beach, Florida. The lease for the principal office located in Tucson consists of 627 square feet and ends in October 2024. The lease for the New York office, which consists of approximately 5,000 square feet, commenced in January 2022 and will expire in December 2026. NOTE 4 — LEASE LIABILITIES AND RIGHT OF USE ASSETS (continued) In the second quarter of 2023, we terminated one of the leases for the Miami Beach office, reducing the leased space to approximately 2,000 square feet. The remaining lease will expire in May 2024. In connection with the early termination of this lease, the right-of-use asset and lease liability were reduced by $38,000 and $40,000, respectively. In the first quarter of 2023, we closed our Marietta, Georgia office. As a result of abandoning the office space prior to its lease expiration in August 2024, we wrote off the associated right-of-use asset in full and recognized a $146,000 loss on impairment, which is included in General and administrative in the accompanying Consolidated Statement of Operations. As of March 31, 2024, the lease liability related to the Marietta, GA office was $50,000. In addition, the Company entered into membership agreements to occupy shared office space in Lehi, Utah, and Portland, Oregon. Because the membership agreements do not qualify as a lease under ASC 842, we expense the membership fees as they are incurred. The Company made operating lease payments in the amount of $126,000 and $135,000 during the three months ended March 31, 2024 and 2023, respectively. The following summarizes the total lease liabilities and remaining future minimum lease payments at March 31, 2024 (in thousands): Year ending December 31, Finance Leases Operating Leases Total 2024 (9 months remaining) $ 1 $ 223 $ 224 2025 — 219 219 2026 — 225 225 Total minimum lease payments 1 667 668 Less: present value discount — (50) (50) Total lease liabilities 1 617 618 Current portion of lease liabilities 1 249 250 Long term portion of lease liabilities $ — $ 368 $ 368 The following summarizes expenses associated with our finance and operating leases for the three months ended March 31, 2024 and 2023: Three months ended March 31, (in thousands) 2024 2023 Finance lease expenses: Depreciation expense $ 3 $ 10 Interest on lease liabilities — 1 Total Finance lease expense 3 11 Operating lease expense 96 133 Short-term lease and related expenses 91 44 Total lease expenses $ 190 $ 188 The following table provides information about the remaining lease terms and discount rates applied as of March 31, 2024 and 2023: March 31, 2024 2023 Weighted average remaining lease term (years) Operating Leases 2.52 2.94 Finance Leases 0.14 0.97 Weighted average discount rate (%) Operating Leases 6.00 6.00 Finance Leases 6.00 6.00

DEBT

DEBT	3 Months Ended
DEBT	Mar. 31, 2024
DEBT
DEBT	NOTE 5 — DEBT On November 30, 2023, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with SG Credit Partners, Inc., a Delaware corporation (the “Lender”). The Loan Agreement provides for a $7.0 million term loan, which is due and payable on the maturity date of November 30, 2026. The interest rate is 6.25% in excess of the base rate, which is defined as the greater of the prime rate and 7.00% per annum. Interest is payable in cash on a monthly basis. The proceeds of the term loan may be used to repurchase shares of the Company’s common stock, to fund the contingent consideration associated with the BOIA acquisition, and for working capital and general corporate purposes. The Company paid a commitment fee equal to $105,000 on the closing date and is required to pay an exit fee equal to $105,000 upon the earlier of repayment in full of the obligations, the maturity date and the occurrence of a liquidity event. The commitment and exit fees payable to the lender were recorded as debt discount. The exit fee was included within long term liabilities on our consolidated balance sheet as of March 31, 2024. The Company also incurred $71,000 in third-party expenses in connection with the term loan, which were recorded as debt issuance costs. Debt discount and debt issuance costs are presented as a direct deduction from the carrying amount of our term loan and are amortized to interest expense over the term of the loan using the effective interest method. In the three months ended March 31, 2024, amortization of debt discount and debt issuance costs totaled $17,000 and $6,000, respectively. The Loan Agreement secured by substantially all of our assets and contains certain customary financial covenants, including the requirements that the Company maintain (i) minimum liquidity of $2.0 million (plus, prior to the payment in full of the contingent consideration associated with the BOIA acquisition, an amount equal to the greater of $2.1 million or the expected amount of the contingent consideration) and (ii) minimum monthly recurring revenue levels measured on a trailing three month average basis as of the last day of each calendar month. The minimum monthly recurring revenue levels commence at $2.3 million and increase for each month after the month ending November 30, 2024 to the greater of $2.3 million and 105% of Borrowers’ monthly recurring revenue for the applicable month in the prior year. The Company was in compliance with all applicable covenants at March 31, 2024. As of March 31, 2024, outstanding principal balance of the term loan totaled $7,000,000 and accrued interest thereon totaled $89,000.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2024
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 6 — COMMITMENTS AND CONTINGENCIES Membership agreement to occupy shared office space The Company occupies shared office space in Lehi, UT under a membership agreement which ends in August 2024. Fees due under these membership agreements are based on the number of contracted seats and the use of optional office services. As of March 31, 2024, minimum fees due under these shared office arrangements totaled $112,000. Litigation We may become involved in various routine disputes and allegations incidental to our business operations. While it is not possible to determine the ultimate disposition of these matters, management believes that the resolution of any such matters, should they arise, is not likely to have a material adverse effect on our financial position or results of operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 7 — SUBSEQUENT EVENTS We have evaluated subsequent events occurring after March 31, 2024, and based on our evaluation we did not identify any events that would have required recognition or disclosure in these consolidated financial statements, except for the following. In April 2024, we made a $2.4 million cash payment to settle the contingent consideration associated with the BOIA acquisition in full.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2024
SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the consolidated financial statements and during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to stock-based compensation, allowance for doubtful accounts, and intangible assets. Actual results may differ from these estimates.
Revenue Recognition	Revenue Recognition We derive our revenue primarily from the sale of internally developed software by a software-as-a-service (“SaaS”) delivery model, as well as from professional services, through our direct sales force or through third-party resellers. Our SaaS fees include support and maintenance. We recognize revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers We determine revenue recognition through the following five steps: ● Identify the contract with the customer; ● Identify the performance obligations in the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations in the contract; and ● Recognize revenue when, or as, the performance obligations are satisfied. Performance obligations are the unit of accounting for revenue recognition and generally represent the distinct goods or services that are promised to the customer. If we determine that we have not satisfied a performance obligation, we will defer recognition of the revenue until the performance obligation is deemed to be satisfied. SaaS agreements are generally non-cancelable, although clients typically have the right to terminate their contracts for cause if we fail to perform material obligations. Our SaaS revenue is comprised of fixed subscription fees from customer accounts on our platform related to our software products. Our support revenue is comprised of subscription fees for customers for legal, remediation, and other support services. SaaS and support (also referred to as “subscription”) revenue is recognized on a ratable basis over the contractual subscription term of the arrangement beginning on the date that our service is made available to the customer. Certain SaaS and support fees are invoiced in advance on an annual, semi-annual, or quarterly basis. Any funds received for services not provided yet are held in deferred revenue and are recorded as revenue when the related performance obligations have been satisfied. Non-subscription revenue consists primarily of PDF remediation and Website and Mobile App report services, and is recognized upon delivery. Consideration payable under PDF remediation arrangements is based on usage. Consideration payable under non-subscription Website and Mobile App report services arrangements is based on fixed fees. The following table presents our revenues disaggregated by sales channel: Three months ended March 31, (in thousands) 2024 2023 Partner and Marketplace $ 4,734 $ 4,342 Enterprise 3,349 3,430 Total revenues $ 8,083 $ 7,772 The Company records accounts receivable for amounts invoiced to customers for which the Company has an unconditional right to consideration as provided under the contractual arrangement. Deferred revenue includes payments received in advance of performance under the contract and is reported on an individual contract basis at the end of each reporting period. Deferred revenue is classified as current or noncurrent based on the timing of when we expect to recognize revenue. The table below summarizes our deferred revenue as of March 31, 2024 and December 31, 2023: March 31, December 31, (in thousands) 2024 2023 Deferred revenue — current $ 6,254 $ 6,472 Deferred revenue — noncurrent 2 10 Total deferred revenue $ 6,256 $ 6,482 In the three-month period ended March 31, 2024, we recognized $3,055,000, or 47%, in revenue from deferred revenue outstanding as of December 31, 2023. We had one customer (including the customer’s affiliates reflecting multiple contracts and a partnership with the Company) which accounted for approximately 16% of our total revenue in each of the three months ended March 31, 2024 and 2023. One major customer represented 16% of total accounts receivable as of March 31, 2024 and December 31, 2023.
Deferred Costs (Contract acquisition costs)	Deferred Costs (Contract acquisition costs) We capitalize initial and renewal sales commissions in the period the commission is earned, which generally occurs when a customer contract is obtained, and amortize deferred commission costs on a straight-line basis over the expected period of benefit, which we have deemed to be the contract term. As a practical expedient, we expense sales commissions as incurred when the amortization period of related deferred commission costs would have been one year or less. The table below summarizes the deferred commission costs as of March 31, 2024 and December 31, 2023, which are included in Prepaid expenses and other current assets on our consolidated balance sheets: March 31, December 31, (in thousands) 2024 2023 Deferred costs — current $ 19 $ 20 Deferred costs — noncurrent 3 2 Total deferred costs $ 22 $ 22 Amortization expense associated with sales commissions was included in Selling and marketing expenses on the consolidated statements of operations and totaled $10,000 and $19,000, respectively, for the three-month periods ended March 31, 2024 and 2023.
Debt Discount and Debt Issuance Costs	Debt Discount and Debt Issuance Costs Costs related to the issuance of debt due to the lender (debt discount) or to third parties (debt issuance costs) are capitalized and amortized to interest expense based on the effective interest method over the term of the related debt. Debt discount and debt issuance costs are presented on the Company's consolidated balance sheets as a direct deduction from the carrying amount of our term loan.
Employee Stock Purchase Plan	Employee Stock Purchase Plan In May 2022, the stockholders of the Company approved the Company’s Employee Stock Purchase Plan (the “ESPP”), which provides for the issuance of up to 500,000 shares of common stock. Eligible employees may elect to have a percentage of eligible compensation withheld to purchase shares of our common stock at the end of each purchase period. The Company expects each purchase period to be the six month periods ending on June 30 or December 31 of each calendar year. The purchase price per share is expected to equal 85% of the fair market value of our common stock on the last trading day of the purchase period. Under the ESPP, a participant may not be granted rights to purchase more than $25,000 worth of common stock for each calendar year and no participant may purchase more than 1,500 shares of our common stock (or such other number as the Compensation Committee may designate) on any one purchase date. As of March 31, 2024, 15,484 shares had been issued under the ESPP and 484,516 shares remained available under the plan.
Stock-Based Compensation	Stock-Based Compensation The Company periodically issues options, restricted stock units (“RSUs”), and shares of its common stock as compensation for services received from its employees, directors, and consultants. The fair value of the award is measured on the grant date. The fair value amount is then recognized as expense over the requisite vesting period during which services are required to be provided in exchange for the award. We recognize forfeitures as they occur. Stock-based compensation expense is recorded in the same expense classifications in the consolidated statements of operations as if such amounts were paid in cash. The fair value of options awards is measured on the grant date using a Black-Scholes option pricing model, which includes assumptions that are subjective and are generally derived from external data (such as risk-free rate of interest) and historical data (such as volatility factor and expected term). We estimate the fair value of restricted stock unit awards with time- or performance-based vesting using the value of our common stock on the grant date. We estimate the fair value of market-based restricted stock unit awards as of the grant date using the Monte Carlo simulation model. We expense the compensation cost associated with time-based options and RSUs as the restriction period lapses, which is typically a one The following table summarizes the stock-based compensation expense recorded for the three months ended March 31, 2024 and 2023: Three months ended March 31, (in thousands) 2024 2023 Options $ 4 $ 77 RSUs 813 987 Unrestricted shares of common stock 66 54 Total $ 883 $ 1,118 As of March 31, 2024, the outstanding unrecognized stock-based compensation expense related to options and RSUs was $1,000 and $3,847,000, respectively, which may be recognized through January 2027, subject to achievement of service, performance, and market conditions.
Earnings (Loss) Per Share ("EPS")	Earnings (Loss) Per Share (“EPS”) Basic EPS is calculated by dividing net income (loss) available to common stockholders by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted EPS is calculated based on the net income (loss) available to common stockholders and the weighted average number of shares of common stock outstanding during the period, adjusted for the effects of all potential dilutive common stock issuances related to options and restricted stock units. The dilutive effect of our stock-based awards is computed using the treasury stock method, which assumes all stock-based awards are exercised and the hypothetical proceeds from exercise are used to purchase common stock at the average market price during the period. The incremental shares (i.e., the difference between shares assumed to be issued versus purchased), to the extent they would have been dilutive, are included in the denominator of the diluted EPS calculation. However, when a net loss exists, no potential common stock equivalents are included in the computation of the diluted per-share amount because the computation would result in an anti-dilutive per-share amount. Potentially dilutive securities outstanding as of March 31, 2024 and 2023, which were excluded from the computation of basic and diluted net loss per share for the periods then ended, are as follows: March 31, (in thousands) 2024 2023 Options 105 151 Restricted stock units 1,557 1,940 Total 1,662 2,091 The following table summarizes the stock option and RSUs activity for the three months ended March 31, 2024: Options RSUs Outstanding at December 31, 2023 112,279 1,707,258 Granted — 122,721 Exercised/Settled (1,000) (234,617) Forfeited/Expired (6,740) (38,235) Outstanding at March 31, 2024 104,539 1,557,127 Vested at March 31, 2024 103,737 475,945 Unvested at March 31, 2024 802 1,081,182
Stock Repurchases	Stock Repurchases In the fourth quarter of 2023, the Board of Directors of the Company approved a program to repurchase up to $5 million of its outstanding shares of common stock through December 31, 2025. In 2023, we used $1.12 million of the program to repurchase shares. In the three months ended March 31, 2024, we used $1.69 million of the program to repurchase shares. As of March 31, 2024, we had $2.19 million remaining for the repurchase of shares. Shares repurchased by the Company are immediately retired. The Company made an accounting policy election to charge the excess of repurchase price over par value entirely to retained earnings.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures,

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Mar. 31, 2024
SIGNIFICANT ACCOUNTING POLICIES
Summary of revenues disaggregation by sales channel	Three months ended March 31, (in thousands) 2024 2023 Partner and Marketplace $ 4,734 $ 4,342 Enterprise 3,349 3,430 Total revenues $ 8,083 $ 7,772
Summary of deferred revenue	March 31, December 31, (in thousands) 2024 2023 Deferred revenue — current $ 6,254 $ 6,472 Deferred revenue — noncurrent 2 10 Total deferred revenue $ 6,256 $ 6,482
Summary of deferred commission costs	March 31, December 31, (in thousands) 2024 2023 Deferred costs — current $ 19 $ 20 Deferred costs — noncurrent 3 2 Total deferred costs $ 22 $ 22
Summary of stock-based compensation expense	Three months ended March 31, (in thousands) 2024 2023 Options $ 4 $ 77 RSUs 813 987 Unrestricted shares of common stock 66 54 Total $ 883 $ 1,118
Summary of antidilutive securities outstanding excluded from computation of basic and diluted net loss per share	March 31, (in thousands) 2024 2023 Options 105 151 Restricted stock units 1,557 1,940 Total 1,662 2,091
Summary the stock option and RSUs activity	Options RSUs Outstanding at December 31, 2023 112,279 1,707,258 Granted — 122,721 Exercised/Settled (1,000) (234,617) Forfeited/Expired (6,740) (38,235) Outstanding at March 31, 2024 104,539 1,557,127 Vested at March 31, 2024 103,737 475,945 Unvested at March 31, 2024 802 1,081,182

LEASE LIABILITIES AND RIGHT O_2

LEASE LIABILITIES AND RIGHT OF USE ASSETS (Tables)	3 Months Ended
LEASE LIABILITIES AND RIGHT OF USE ASSETS (Tables)	Mar. 31, 2024
LEASE LIABILITIES AND RIGHT OF USE ASSETS
Summary of total lease liabilities remaining future minimum lease payments	The following summarizes the total lease liabilities and remaining future minimum lease payments at March 31, 2024 (in thousands): Year ending December 31, Finance Leases Operating Leases Total 2024 (9 months remaining) $ 1 $ 223 $ 224 2025 — 219 219 2026 — 225 225 Total minimum lease payments 1 667 668 Less: present value discount — (50) (50) Total lease liabilities 1 617 618 Current portion of lease liabilities 1 249 250 Long term portion of lease liabilities $ — $ 368 $ 368
Summary of lease expenses	Three months ended March 31, (in thousands) 2024 2023 Finance lease expenses: Depreciation expense $ 3 $ 10 Interest on lease liabilities — 1 Total Finance lease expense 3 11 Operating lease expense 96 133 Short-term lease and related expenses 91 44 Total lease expenses $ 190 $ 188
Summary of lease terms and discount rates	March 31, 2024 2023 Weighted average remaining lease term (years) Operating Leases 2.52 2.94 Finance Leases 0.14 0.97 Weighted average discount rate (%) Operating Leases 6.00 6.00 Finance Leases 6.00 6.00

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES - Disaggregated by sales (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
SIGNIFICANT ACCOUNTING POLICIES
Partner and Marketplace	$ 4,734	$ 4,342
Enterprise	3,349	3,430
Total revenues	$ 8,083	$ 7,772

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Deferred revenue (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
SIGNIFICANT ACCOUNTING POLICIES
Deferred revenue - current	$ 6,254	$ 6,472
Deferred revenue - noncurrent	2	10
Total deferred revenue	$ 6,256	$ 6,482

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Deferred commission costs (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
SIGNIFICANT ACCOUNTING POLICIES
Deferred costs - current	$ 19	$ 20
Deferred costs - noncurrent	3	2
Total deferred costs	$ 22	$ 22

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Stock-based compensation expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Stock-based compensation expense	$ 883,000	$ 1,118,000
Options
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Stock-based compensation expense	4,000	77,000
Outstanding unamortized share-based compensation expense	1,000
RSUs
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Stock-based compensation expense	813,000	987,000
Outstanding unamortized share-based compensation expense	3,847,000
Unrestricted Shares of Common Stock
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Stock-based compensation expense	$ 66,000	$ 54,000

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES - Potentially dilutive securities excluded from computation of earnings per share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Dilutive securities outstanding	1,662	2,091
Options
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Dilutive securities outstanding	105	151
Restricted stock units
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Dilutive securities outstanding	1,557	1,940

SIGNIFICANT ACCOUNTING POLICI_8

SIGNIFICANT ACCOUNTING POLICIES - Summary of Stock Option and RSUs Activity (Details)	3 Months Ended
	Mar. 31, 2024 shares
Options
Number of Options
Balance at beginning of the period (in shares)	112,279
Exercised/Settled	(1,000)
Forfeited/Expired	(6,740)
Balance at end of the period (in shares)	104,539
Vested (in shares)	103,737
Unvested (in shares)	802
Exercised/Settled	(802)
RSUs
Number of Options
Unvested (in shares)	234,617
Balance at beginning of the period (In shares)	1,707,258
Granted	122,721
Exercised/Settled	(234,617)
Forfeited/Expired	(38,235)
Balance at end of the period (In shares)	1,557,127
Vested (in shares)	475,945
Unvested (in shares)	1,081,182

SIGNIFICANT ACCOUNTING POLICI_9

SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details)	1 Months Ended	3 Months Ended		12 Months Ended
	May 31, 2022 USD ($) shares	Mar. 31, 2024 USD ($) customer shares	Mar. 31, 2023 USD ($) customer	Dec. 31, 2023 USD ($) customer
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Deferred revenue recognized to revenue		$ 3,055,000
Deferred revenue outstanding (as a percent)				47%
Amortization of deferred sales commissions		$ 10,000	$ 19,000
Maximum number of shares issuance of common stock under ESPP \| shares	500,000
Maximum percentage of base compensation on payroll deductions	85%
Maximum value of shares for each employee under ESPP	$ 25,000
Maximum number of shares for each employee under ESPP \| shares	1,500
Shares issued under the ESPP \| shares		15,484
Shares remained available under the ESPP \| shares		484,516
Repurchase of common stock		$ 1,686,000
Stock Repurchase Program, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of remaining for repurchase of shares		2,190,000
Repurchase of common stock		$ 1,690,000		$ 1,120,000
Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Service period		3 years
Maximum \| Stock Repurchase Program, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Repurchase of outstanding shares of common stock				$ 5,000,000
Minimum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Service period		1 year
Customer concentration risk \| Sales revenue, net
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of customer \| customer		1	1
Customer concentration risk \| Accounts receivable
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of customer \| customer		1		1
One customer \| Customer concentration risk \| Sales revenue, net
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk percentage		16%	16%
One customer \| Customer concentration risk \| Accounts receivable
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk percentage		16%		16%

ACQUISITIONS - Bureau of Intern

ACQUISITIONS - Bureau of Internet Accessibility Inc (Details) - USD ($)		3 Months Ended
	Mar. 09, 2022	Mar. 31, 2024	Mar. 31, 2023
ACQUISITIONS
Amortization expense		$ 177,000	$ 179,000
Bureau of internet accessibility Inc
ACQUISITIONS
Aggregate consideration	$ 7,500,000
Cash payment	5,100,000
Cash received from net working capital adjustments	200,000
Change in the fair value of contingent consideration	$ 2,600,000	2,387,000
Term for first aggregate contingent consideration to be paid in cash	1 year
Term for second aggregate contingent consideration to be paid in cash	2 years
Cash payment towards the contingent consideration liability			974,000
Bureau of internet accessibility Inc \| Maximum
ACQUISITIONS
Useful life	7 years
Bureau of internet accessibility Inc \| Minimum
ACQUISITIONS
Useful life	2 years
Bureau of internet accessibility Inc \| General and Administrative Expense
ACQUISITIONS
Change in the fair value of contingent consideration		$ 12,000	$ (55,000)

LEASE LIABILITIES AND RIGHT O_3

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Future minimum finance leases payments (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
LEASE LIABILITIES AND RIGHT OF USE ASSETS
2024 (9 months remaining)	$ 1,000
Total minimum lease payments	1,000
Total lease liabilities	1,000	$ 7,000
Current portion of lease liabilities	$ 1,000	$ 7,000

LEASE LIABILITIES AND RIGHT O_4

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Future minimum operating leases payments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
LEASE LIABILITIES AND RIGHT OF USE ASSETS
2024 (9 months remaining)	$ 223
2025	219
2026	225
Total minimum lease payments	667
Less: present value discount	(50)
Total lease liabilities	617
Current portion of lease liabilities	249	$ 312
Long term portion of lease liabilities	$ 368	$ 417

LEASE LIABILITIES AND RIGHT O_5

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Finance Leases and Operating Leases (Details) $ in Thousands	Mar. 31, 2024 USD ($)
LEASE LIABILITIES AND RIGHT OF USE ASSETS
2024 (9 months remaining)	$ 224
2025	219
2026	225
Total minimum lease payments	668
Less: present value discount	(50)
Total lease liabilities	618
Current portion of lease liabilities	250
Long term portion of lease liabilities	$ 368

LEASE LIABILITIES AND RIGHT O_6

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Lease expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Finance lease expenses:
Depreciation expense	$ 3	$ 10
Interest on lease liabilities	0	1
Total Finance lease expense	3	11
Operating lease expense	96	133
Short-term lease and related expenses	91	44
Total lease expenses	$ 190	$ 188

LEASE LIABILITIES AND RIGHT O_7

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Remaining lease terms and discount rates (Details)	Mar. 31, 2024	Mar. 31, 2023
LEASE LIABILITIES AND RIGHT OF USE ASSETS
Weighted average remaining lease term (years) - Operating leases	2 years 6 months 7 days	2 years 11 months 8 days
Weighted average remaining lease term (years) - Finance leases	1 month 20 days	11 months 19 days
Weighted average discount rate (%) - Operating leases	6%	6%
Weighted average discount rate (%) - Finance leases	6%	6%

LEASE LIABILITIES AND RIGHT O_8

LEASE LIABILITIES AND RIGHT OF USE ASSETS - Additional information (Details)	3 Months Ended
	Mar. 31, 2024 USD ($)	Jun. 30, 2023 USD ($) ft²	Mar. 31, 2023 USD ($)	Oct. 31, 2024 ft²	Dec. 31, 2023 USD ($)	Jan. 31, 2022 ft²
LEASE LIABILITIES AND RIGHT OF USE ASSETS
Total finance lease liabilities	$ 1,000				$ 7,000
Effective interest rate of finance leases	6%
Operating lease liability	$ 617,000
Reduced lease space \| ft²		2,000
Decrease in right of use asset		$ 38,000
Lease liability	(112,000)	$ 40,000	$ (113,000)
Operating lease payments	126,000		135,000
Marietta Georgia
LEASE LIABILITIES AND RIGHT OF USE ASSETS
Area of land \| ft²						5,000
Operating lease liability	$ 50,000
Marietta Georgia \| General and Administrative Expense
LEASE LIABILITIES AND RIGHT OF USE ASSETS
Operating lease, loss on impairment			$ 146,000
Georgia
LEASE LIABILITIES AND RIGHT OF USE ASSETS
Area of land \| ft²				627

DEBT (Details)

DEBT (Details) - USD ($)		3 Months Ended
DEBT (Details) - USD ($)	Nov. 30, 2023	Mar. 31, 2024
DEBT
Amortization of debt discounts		$ 17,000
Amortization of debt issuance costs		6,000
Loan and Security Agreement with SG Credit Partner
DEBT
Term loan	$ 7,000,000
Reference rate	7%
Commitment fee	$ 105,000
Exit fee	105,000
Debt issuance cost	71,000
Minimum liquidity amount	2,000,000
Prior to payment of contingent consideration	2,100,000
Minimum monthly revenue	$ 2,300,000
Outstanding principal balance		7,000,000
Accrued interest		$ 89,000
Loan and Security Agreement with SG Credit Partner \| Maximum
DEBT
Monthly recurring revenue, percentage	105%
Loan and Security Agreement with SG Credit Partner \| Minimum
DEBT
Monthly increase in recurring revenue	$ 2,300,000
Loan and Security Agreement with SG Credit Partner \| Prime Rate
DEBT
Interest rate	6.25%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2024 USD ($)
COMMITMENTS AND CONTINGENCIES
Shared office arrangement minimum fees due	$ 112,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Bureau of internet accessibility Inc - USD ($) $ in Millions		1 Months Ended
	Mar. 09, 2022	Apr. 30, 2024
SUBSEQUENT EVENTS
Aggregate cash purchase price	$ 5.1
Subsequent event
SUBSEQUENT EVENTS
Aggregate cash purchase price		$ 2.4