American Virtual Cloud (AVCTQ) 10-Q 14 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2020	Aug. 11, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	American Virtual Cloud Technologies, Inc.
Entity Central Index Key	0001704760
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Document Fiscal Period Focus	Q2
Entity Emerging Growth Company	true
Document Fiscal Year Focus	2020
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Ex Transition Period	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		19,635,830
Entity File Number	001-38167
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	DE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets
Cash	$ 6,640
Trade receivables, net	17,905
Prepaid expenses	2,860
Inventory	1,403
Other current assets
Total current assets	28,808
Property and equipment, net	8,187
Other assets:
Goodwill	40,869
Other intangible assets, net	23,750
Other noncurrent assets	65
Total other assets	64,684
TOTAL ASSETS	101,679
Current liabilities
Accounts payable and accrued expenses	26,585
Unearned revenue	3,266
Line of credit	8,010
Current portion of notes payable and capital leases	8,165
Other current liabilities	121
Total current liabilities	46,147
Long-term liabilities
Line of credit
Notes payable and capital leases (net of current portion and deferred financing fees)	2,789
Convertible Debentures, net of discount - related party	10,035
Convertible Debentures, net of discount	25,140
Subordinated promissory note	500
Deferred tax liability	3,426
Other liabilities	99
Total long-term liabilities	41,989
Total liabilities	88,136
Commitments and contingent liabilities (see note15)
Stockholders' equity:
Preferred stock
Common stock, $0.0001 par value; 500,000,000 shares authorized; 19,635,830shares issued and outstanding as of June 30, 2020	2
Additional paid-in capital	33,629
Accumulated deficit	(20,088)
Total stockholders' equity	13,543
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 101,679
Predecessor [Member]
Current assets
Cash		$ 18
Trade receivables, net		16,092
Prepaid expenses		397
Inventory		350
Other current assets		224
Total current assets		17,081
Property and equipment, net		9,608
Other assets:
Goodwill		21,215
Other intangible assets, net		2,404
Other noncurrent assets		69
Total other assets		23,688
TOTAL ASSETS		50,377
Current liabilities
Accounts payable and accrued expenses		21,731
Unearned revenue		6,431
Line of credit
Current portion of notes payable and capital leases		2,506
Other current liabilities
Total current liabilities		30,668
Long-term liabilities
Line of credit		6,051
Notes payable and capital leases (net of current portion and deferred financing fees)		5,685
Convertible Debentures, net of discount - related party
Convertible Debentures, net of discount
Subordinated promissory note
Deferred tax liability
Other liabilities		180
Total long-term liabilities		11,916
Total liabilities		42,584
Commitments and contingent liabilities (see note15)
Stockholders' equity:
Preferred stock
Common stock, $0.0001 par value; 500,000,000 shares authorized; 19,635,830shares issued and outstanding as of June 30, 2020
Additional paid-in capital		18,717
Accumulated deficit		(10,924)
Total stockholders' equity		7,793
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 50,377

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Preferred stock, par value	$ 0.0001
Preferred stock, authorized	5,000,000
Preferred stock, issued	0
Preferred stock, outstanding	0
Common stock, par value	$ 0.0001
Common stock, authorized	500,000,000
Common stock, issued	19,635,830
Common stock, outstanding	19,635,830
Predecessor [Member]
Common stock, par value		$ 0.001
Common stock, authorized		1,000
Common stock, issued		1,000
Common stock, outstanding		1,000

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands	Apr. 06, 2020	Jun. 30, 2020	Apr. 06, 2020	Jun. 30, 2019	Jun. 30, 2019
Revenues:
Hardware		$ 10,442
Software and maintenance		1,532
Services		6,984
Other		139
Total revenues		19,097
Cost of revenue		12,917
Gross profit		6,180
Transaction costs		142
Selling, general and administrativeexpenses		7,546
Loss from operations		(1,508)
Other (expense) income
Interest expense - related party		(554)
Interest expense		(1,607)
Other (expense) income		(13)
Total other expenses		(2,174)
Net loss before income taxes		(3,682)
Benefit (Provision) for income taxes		8
Net loss		$ (3,674)
Loss per share - basic and diluted		$ (0.19)
Weighted average shares outstanding - basic and diluted		19,635,830
Predecessor [Member]
Revenues:
Hardware	$ 234		$ 10,587	$ 12,165	$ 28,489
Software and maintenance			1,459	1,383	3,029
Services	441		6,880	7,276	13,958
Other			111	119	348
Total revenues	675		19,037	20,943	45,824
Cost of revenue	402		12,426	15,315	33,340
Gross profit	273		6,611	5,628	12,484
Transaction costs
Selling, general and administrativeexpenses	760		7,835	6,472	13,475
Loss from operations	(487)		(1,224)	(844)	(991)
Other (expense) income
Interest expense - related party
Interest expense	(143)		(384)	(371)	(670)
Other (expense) income	13		31	103	145
Total other expenses	(130)		(353)	(268)	(525)
Net loss before income taxes	(617)		(1,577)	(1,112)	(1,516)
Benefit (Provision) for income taxes	(1)		(12)	(65)	(88)
Net loss	$ (618)		$ (1,589)	$ (1,177)	$ (1,604)
Loss per share - basic and diluted	$ (617.6)		$ (1,587.30)	$ (1,175.90)	$ (1,604.60)
Weighted average shares outstanding - basic and diluted	1,000		1,000	1,000	1,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' (deficit) Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Common StockPredecessor	Additional Paid-In Capital	Additional Paid-In CapitalPredecessor	Accumulated Equity (Deficit)	Accumulated Equity (Deficit)Predecessor	Total	Predecessor
Beginning Balance at Dec. 31, 2018				$ 18,717		$ (6,640)		$ 12,077
Beginning Balance, Shares at Dec. 31, 2018		1,000
Cumulative effect of accounting change (See Note 4)						99		99
Net loss						(1,604)		(1,604)
Ending Balance at Jun. 30, 2019				18,717		(8,145)		10,572
Ending Balance, Shares at Jun. 30, 2019		1,000
Beginning Balance at Mar. 31, 2019				18,717		(6,968)		11,749
Beginning Balance, Shares at Mar. 31, 2019		1,000
Net loss								(1,177)
Ending Balance at Jun. 30, 2019				18,717		(8,145)		10,572
Ending Balance, Shares at Jun. 30, 2019		1,000
Beginning Balance at Dec. 31, 2019				18,717		(10,924)		7,793
Beginning Balance, Shares at Dec. 31, 2019		1,000
Net loss								(1,589)
Ending Balance at Apr. 06, 2020		$ 1		7		(15,410)		(15,402)
Ending Balance, Shares at Apr. 06, 2020		7,932,977
Beginning Balance at Dec. 31, 2019				18,717		(10,924)		7,793
Beginning Balance, Shares at Dec. 31, 2019		1,000
Net loss						(971)		(971)
Ending Balance at Mar. 31, 2020				18,717		(11,895)		6,822
Ending Balance, Shares at Mar. 31, 2020		1,000
Net loss						(618)		(618)
Ending Balance at Apr. 06, 2020		$ 1		$ 7		$ (15,410)		$ (15,402)
Ending Balance, Shares at Apr. 06, 2020		7,932,977
Conversion of rights (previously issued in the IPO) into shares
Conversion of rights (previously issued in the IPO) into shares, shares	3,105,000
Issuance of shares in connection with the acquisition of Computex (as defined in Note 1)	$ 1		24,567				24,568
Issuance of shares in connection with the acquisition of Computex (as defined in Note 1), shares	8,189,490
Issuance of shares in exchange for services			1,500				1,500
Issuance of shares in exchange for services, shares	500,000
Deferred underwriting fees relating to IPO			(3,000)				(3,000)
Debenture discount relative to value of warrants			9,937				9,937
Redemption of shares held in trust					(1,004)		(1,004)
Redemption of shares held in trust, shares	(91,637)
Stock-based compensation			618				618
Net loss					(3,674)		(3,674)
Ending Balance at Jun. 30, 2020	$ 2		$ 33,629		$ (20,088)		$ 13,543
Ending Balance, Shares at Jun. 30, 2020	19,635,830

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	Apr. 06, 2020	Jun. 30, 2020	Apr. 06, 2020	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2019
Cash Flows from Operating Activities:
Net loss		$ (3,674)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation		827
Amortization of intangible assets		550
Amortization of convertible debenture discount relative to warrants		927
Interest on convertible debt paid-in-kind		1,015
Share-based compensation		618
Deferred income taxes		(24)
Amortization and write-off of deferred financing costs		7
Changes in operating assets and liabilities:
Accounts receivable		(4,109)
Prepaid expenses		(1,327)
Inventory		31
Accounts payable and accrued expenses		(4,672)
Other current assets
Other current liabilities		121
Unearned revenue		(821)
Other liabilities		(20)
Net cash (used in) provided by operating activities		(10,551)
Cash Flows from Investing Activities:
Cash from the acquisition of Computex (See Note 1)		269
Purchase of property and equipment		(171)
Net cash provided by (used in) investing activities		98
Cash Flows from Financing Activities:
Net change in line of credit		(1,070)
Debt repayments (including capital lease obligations)		(332)
Proceeds from PPP Loan (See Note 8)		4,135
Issuance of convertible debentures		12,104
Issuance of common stock		1,500
Redemption of shares held in trust		(1,004)
Payment of deferred financing fees		(113)
Net cash provided by (used in) financing activities		15,220
Net change in cash		4,767
Cash, beginning of period		1,873
Cash, end of period	$ 1,873	6,640	$ 1,873
Supplemental Disclosures about Cash Flow Information
Cash paid for interest		205
Cash paid (refunds received) for income taxes
Supplemental Schedule of Noncash Investing and Financing Activities
Noncash acquisition of computex in exchange for common stock, convertible debentures and assumed debt		61,211
Relative fair value of warrants issued with convertible Debentures		9,937
Promissory note - related party exchanged for Debentures		8,566
Deferred underwriting fees settled via the issuance of common stock and the issuance of subordinated promissory note		3,000
Assets acquired by capital lease
Predecessor [Member]
Cash Flows from Operating Activities:
Net loss			(1,589)		$ (1,604)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation			933		1,882
Amortization of intangible assets	16		263	$ 247	494
Amortization of convertible debenture discount relative to warrants
Interest on convertible debt paid-in-kind
Share-based compensation
Deferred income taxes
Amortization and write-off of deferred financing costs			128		23
Changes in operating assets and liabilities:
Accounts receivable			2,296		25,497
Prepaid expenses			(1,074)
Inventory			(1,084)		(279)
Accounts payable and accrued expenses			756		(21,099)
Other current assets			217		526
Other current liabilities			2
Unearned revenue			(2,353)		(2,019)
Other liabilities			(76)		(20)
Net cash (used in) provided by operating activities			(1,581)		3,401
Cash Flows from Investing Activities:
Cash from the acquisition of Computex (See Note 1)
Purchase of property and equipment			(157)		(263)
Net cash provided by (used in) investing activities			(157)		(263)
Cash Flows from Financing Activities:
Net change in line of credit			3,029		(1,666)
Debt repayments (including capital lease obligations)			(1,040)		(1,464)
Proceeds from PPP Loan (See Note 8)
Issuance of convertible debentures
Issuance of common stock
Redemption of shares held in trust
Payment of deferred financing fees
Net cash provided by (used in) financing activities			1,989		(3,130)
Net change in cash			251		8
Cash, beginning of period		$ 269	18		260	$ 260
Cash, end of period	$ 269		269	$ 268	268	$ 18
Supplemental Disclosures about Cash Flow Information
Cash paid for interest			384		647
Cash paid (refunds received) for income taxes			(4)		61
Supplemental Schedule of Noncash Investing and Financing Activities
Noncash acquisition of computex in exchange for common stock, convertible debentures and assumed debt
Relative fair value of warrants issued with convertible Debentures
Promissory note - related party exchanged for Debentures
Deferred underwriting fees settled via the issuance of common stock and the issuance of subordinated promissory note
Assets acquired by capital lease					$ 299

Organization and Business Opera

Organization and Business Operations	3 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business Operations	1. Organization and Business Operations Organization American Virtual Cloud Technologies, Inc. (“AVCT,” the “Company,” “we,” “us,” “our” or “Successor”) was incorporated in Delaware on April 7, 2016. On April 7, 2020 (the "Closing Date"), AVCT (formerly known as Pensare Acquisition Corp.) consummated a business combination transaction (the “Business Combination”) in which it acquired Stratos Management Systems, Inc. (“Computex”), a private operating company that does business as Computex Technology Solutions. The Business Combination was consummated pursuant to the terms of an amended agreement originally entered into on July 25, 2019. In connection with the closing of the Business Combination, the Company changed its name to American Virtual Cloud Technologies, Inc. See Note 5 for additional information about the Business Combination. In the Business Combination, the Company is considered the acquirer and Computex is considered the acquiree and the Predecessor, for accounting purposes. The Business Combination was accounted for using the acquisition method of accounting, and the Successor’s financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired and liabilities assumed. In the accompanying condensed consolidated financial statements, the Company clearly distinguishes between the entity that existed before the Closing Date (“Predecessor”) and the entity that existed on and after such date (“Successor”). Because the Successor’s financial statements are presented on a different basis from the Predecessor’s financial statements, the two entities may not be comparable in certain respects. As a result, a black line is used to separate the Successor and the Predecessor columns or sections in certain tables included in the condensed consolidated financial statements. The accompanying condensed consolidated financial statements of the Company include the accounts of AVCT and its wholly owned subsidiary, Computex. The financial position, results of operations and cash flows described herein for the dates and periods prior to April 7, 2020 relate to the operations of Computex and its subsidiaries. The historical financial information of AVCT prior to the business combination (a special purpose acquisition company, or “SPAC”) are not reflected in the Predecessor financial statements as it is believed that including such amounts would make those financial statements less useful to users. SPACs typically deposit the proceeds received from their initial public offerings into a separate trust account until a business combination occurs. Once the business combination occurs, such funds are then used to satisfy the consideration for the acquiree and/or to pay stockholders who elect to redeem their shares of common stock in connection with the business combination. The operations of a SPAC, until the closing of a business combination, usually consists of transaction expenses and income earned from the trust account investments. Currently, the Company’s primary operations are through its wholly owned subsidiary, Computex. Nature of business Computex is a leading multi-brand technology solutions provider to large global customers, providing a comprehensive and integrated set of technology solutions to its customers, through its extensive hardware, software and value-added service offerings. The breadth of its offerings enables Computex to offer each customer a complete technology solution. After performing an assessment of its customers’ needs, Computex designs best-fit solutions, and with the help of leading vendors in the industry, helps its customers to procure products that fit their global needs. With primary operating locations in Minnesota, Michigan, Florida and Texas, services offered by Computex include Unified Communications-as-a-Service (“UCaaS”), directory and messaging, enterprise networking, cybersecurity, collaboration, data center services, integration, storage, backup, virtualization, and converged infrastructures. Recent Development On August 5, 2020, we entered into a Purchase Agreement (the “Purchase Agreement”) with Ribbon Communications, Inc. (“Ribbon”), Ribbon Communications Operating Company, Inc. (“RCOCI”) and Ribbon Communications International Limited (together with RCOCI, the “Sellers”), pursuant to which AVCT has agreed to purchase the Sellers’ cloud-based enterprise services business (also known as the Kandy Communications business) (the “Business”) by acquiring certain of the Sellers’ and their respective affiliates assets (and assuming certain of the Sellers’ and their respective affiliates’ liabilities) primarily associated with the Business, and acquiring all of the outstanding interests of Kandy Communications LLC. See Note 16 of the condensed consolidated financial statements for more information. Covid-19 Commencing in December 2019, the novel strain of coronavirus ("COVID-19") began spreading throughout the world, including the first outbreak in the US in February 2020. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. COVID-19 has disrupted and continues to significantly disrupt local, regional, and global economies and businesses. The COVID-19 outbreak is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of COVID-19 on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on our customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact our financial condition and/or results of operations is uncertain. In response to COVID-19, we have put into place certain restrictions, requirements and guidelines to protect the health of our employees and clients, including requiring that certain conditions be met before employees return to the Company’s offices. Also, to protect the health and safety of our employees, our daily execution has evolved into a largely virtual model. Effective April 1, 2020, salaries of Computex's employees were reduced and there are efforts to reduce other operating expenses relative to revenue. We plan to continue to monitor the current environment and may take further actions that may be required by federal, state or local authorities or that we determine are in the interests of our employees, customers, and partners. NASDAQ listing On April 9, 2020, the Company was notified by the NASDAQ via a certified letter (the “Determination Letter”) that it had not complied with the requirements of the NASDAQ Listing Rule IM-5101-2, which requires the Company to meet the requirements for initial listing after the completion of the business combination. The Determination Letter stated that the Company’s common stock did not meet the minimum $4.00 bid price and the $15 million market value of publicly held shares requirements, which are set forth in the NASDAQ Listing Rule 5505. On May 27, 2020, the NASDAQ granted the Company an extension to September 7, 2020 to demonstrate compliance with the NASDAQ Listing Rule IM-5101-2. As of August 14, 2020, the Company believes it is in compliance with the NASDAQ Listing Rule IM-5101-2. However, there can be no assurance that the Company will be able to demonstrate compliance to the NASDAQ’s satisfaction.

Liquidity

Liquidity	3 Months Ended
	Jun. 30, 2020
Liquidity [Abstract]
Liquidity	2. Liquidity As of June 30, 2020, the Company had $6,640 in its operating bank accounts and had a working capital deficit of $17,339. Also, the Company’s Credit Agreement (as defined in Note 8) matures on December 31, 2020. On or before the maturity date of the Credit Agreement, the Company plans to either request an extension of the Credit Agreement or enter into a new agreement with another lender. In addition, the Company is in the process of raising working capital for its current operations and also to fund the pending acquisition of the Kandy Communications business (as defined and more fully discussed in Note 16). There can be no assurance that financing will be available in the amounts that the Company requires or on terms that are acceptable, if at all.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. These condensed consolidated financial statements should be read in conjunction with Stratos Management Systems, Inc.’s consolidated financial statements and notes as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017, included in the Report on Form 8-K/A filed with the SEC on April 14, 2020. The interim results for the periods ended June 30, 2020 are not necessarily indicative of the results expected for the year ending December 31, 2020 or any future interim periods. As a result of the Business Combination, the Company is considered the acquirer and Computex is considered the acquiree and the accounting predecessor. The Business Combination was accounted for using the acquisition method of accounting, and the Successor’s financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired. In the accompanying condensed consolidated financial statements, the Company clearly distinguishes between the entity that existed before the Closing Date (“Predecessor”) and the entity that existed on and after such date (“Successor”). Because the Successor’s financial statements are presented on a different basis from the Predecessor’s financial statements, the two entities may not be comparable, in certain respects. As a result, a black line is used to separate the Successor and the Predecessor columns or sections in certain tables included in the condensed consolidated financial statements. Determining fair values of certain assets acquired and liabilities assumed requires the exercise of judgment and often involves the use of significant estimates and assumptions. See Note 5 for a discussion of the fair value estimates that were recorded in connection with the Company’s acquisition of Computex. Principles of consolidation The accompanying condensed consolidated financial statements of the Company include the accounts of AVCT and its wholly owned subsidiary, Computex. The financial position, results of operations and cash flows described herein for the dates and periods prior to April 7, 2020 relate to the operations of Computex. The Successor condensed consolidated financial statements include the accounts of AVCT and its subsidiaries. The Predecessor condensed consolidated financial statements include the accounts of Computex and its subsidiaries. All intercompany balances and transactions have been eliminated. As more fully discussed above, the historical financial information of AVCT prior to the business combination (a SPAC) has not been reflected in the Predecessor financial statements as these historical amounts have been determined to be not useful information to a user of the financial statements. Accordingly, no other activity in the Company was reported for periods prior to April 7, 2020 besides Computex’s operations as Predecessor. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales (or revenues) and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that estimates made as of the date of the financial statements could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from those estimates. Significant accounting estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, revenue recognition, allowance for doubtful accounts, recognition and measurement of income tax assets, valuation of share-based compensation, and the valuation of the net assets acquired in the Business Combination. Revenue recognition Effective January 1, 2019, the Company adopted Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers Revenue from contracts with customers are not recorded until the Company has the approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and collectability of the consideration is probable. The Company also evaluates the following indicators, amongst others, when determining whether it is acting as a principal in the transaction (and therefore whether to record revenue on a gross basis): (i) whether the Company is primarily responsible for fulfilling the promise to provide the specified goods or service, (ii) whether the Company has the inventory risk before the specified good or service has been transferred to a customer or after transfer of control to the customer and (iii) whether the Company has the discretion to establish the price for the specified good or service. If the terms of a transaction do not indicate that the Company is acting as a principal in the transaction, then the Company is acting as an agent in the transaction and therefore, the associated revenue is recognized on a net basis (that is revenue net of costs). Revenue is recognized once control passes to the customer. The following indicators are evaluated in determining when control has passed to the customer: (i) whether the Company has a right to payment for the product or service, (ii) whether the customer has legal title to the product, (iii) whether the Company has transferred physical possession of the product to the customer, (iv) whether the customer has the significant risk and rewards of ownership of the product and (v) whether the customer has accepted the product. The Company's products can be delivered to customers in a variety of ways, including (i) physical shipment from the Company's warehouse, (ii) via drop-shipment by the vendor or supplier or (iii) via electronic delivery of keys for software licenses. The Company's shipping terms typically allow for the Company to recognize revenue when the product reaches the customer's location. Hardware Revenue from the sale of hardware is recognized on a gross basis, as the Company is deemed to be acting as the principal in these transactions. The selling price to the customer is recorded as revenue and the acquisition cost is recorded within cost of revenue. The Company recognizes revenue from these transactions when control has passed to the customer, which is usually upon delivery. In some instances, the customer agrees to buy the product from the Company, but requests delivery at a later date, commonly known as bill-and-hold arrangements. For these transactions, the Company deems that control passes to the customer when the product is ready for delivery. The Company classifies such products as products ready for delivery when the customer has a signed agreement, the significant risk and rewards for the product has passed to the customer, the customer has the ability to direct the assets, the products have been set aside specifically for the customer and the Company cannot redirect the product for the benefit of another customer. In drop-shipment arrangements, whereby the Company arranges for the vendor to deliver products directly to its customers without the inventory first being physically held at its warehouses, the Company considers itself to be the principal in the transaction and therefore, recognizes the related revenue on a gross basis. Software Revenues from most software license sales are recognized as a single performance obligation on a net basis, as the Company is deemed to be acting as an agent in these transactions. Revenues in these instances are recognized at the point the software license is delivered to the customer. Generally, software licenses are sold with accompanying third-party delivered software support, which is a product that allows customers to upgrade, at no additional cost, to the latest technology if new capabilities are introduced during the period that the software support is in effect. The Company evaluates whether the software support is a separate performance obligation by assessing whether the third-party delivered software support is critical or essential to the core functionality of the software itself. This involves considering whether the software provides its original intended functionality to the customer without the updates, whether the customer would ascribe a higher value to the upgrades versus the up-front deliverable, whether the customer would expect frequent intelligence updates to the software (such as updates that maintain the original functionality), and whether the customer chooses to not delay or always install upgrades. If the Company determines that the accompanying third-party delivered software support is critical or essential to the core functionality of the software license, the software license and the accompanying third-party delivered software support are recognized as a single performance obligation. The value of the product is primarily based on the accompanying support delivered by a third-party, and therefore the Company is acting as an agent in these transactions and therefore, recognizes the associated revenue on a net basis at the point that the associated software license is delivered to the customer. Third-party services The Company is deemed to be the agent in the sale of third-party maintenance, software support and services, as the third-party controls the service until it is transferred to the customer. In these instances, the Company recognizes the revenue on a net basis equal to the selling price to the customer less the acquisition costs. Such revenue is recognized when the customer and vendor accept the terms and conditions of the arrangement. Managed and professional services Professional services offerings include assessments, project management, staging, configuration, and integration. Managed services offerings range from monitoring and notification to a fully outsourced network management solution. In these arrangements, the Company satisfies the performance obligations and recognizes revenue over time. Such professional services are provided under both time and materials and fixed price contracts. When services are provided on a time and materials basis, the Company recognizes revenues at agreed-upon billing rates as services are performed. When services are provided on a fixed fee basis, the Company recognizes revenues over time in proportion to the Company’s progress towards complete satisfaction of the performance obligation. In arrangements for managed services, the Company’s arrangement is typically a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The Company typically recognize revenues from these services on a straight-line basis over the period services are provided, which is consistent with the timing of services rendered. Freight and sales tax Freight billed to customers is included within sales on the condensed consolidated statement of operations. The related freight charged to the Company is included within cost of revenue. Sales tax collected from customers is remitted to governmental authorities on a net basis. Contract liabilities Contract liabilities (or deferred or unearned revenue) are recognized when cash payments are received or due in advance of the Company’s performance obligations. Costs of obtaining and fulfilling a contract The Company capitalizes costs that are incremental to obtaining customer contracts, predominately sales commissions. Such deferrals are then amortized to expense, in proportion to each completed contract performance obligation, on a straight-line basis over the period during which the Company fulfills its performance obligation. Costs associated with contracts whereby the Company has an obligation to perform services, are incurred specifically to assist the Company in rendering services to its customers and are recorded as deferred customer support contract costs at the time the costs are incurred. The costs are amortized to expense on a straight-line basis over the period during which the Company fulfills its performance obligation. Cash and cash equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at June 30, 2020 and December 31, 2019. Trade receivables, net Trade receivables arise from granting credit to customers in the normal course of business, are unsecured and are presented net of an allowance for doubtful accounts. The allowance is based on a number of factors, including the length of time the receivable is past due, the Company’s previous loss history, the customer’s current ability to pay, and the general condition of the economy and industry as a whole. Payment is due 30 days after the customer receives an invoice. Accounts that are more than 45 days past due are individually analyzed for collectability. When all collection efforts have been exhausted, the accounts are written off. Historically, the Company has not suffered significant losses with respect to its trade receivables. The allowance for doubtful accounts was approximately $330 and $138 at June 30, 2020 and December 31, 2019, respectively. Inventories Inventories, which consist of purchased components for resale, are valued at the lower of average cost (which approximates the first-in, first-out method) and net realizable value. The need for an inventory obsolescence reserve is based on an evaluation of slow-moving or obsolete inventory. No obsolescence reserve was deemed necessary at June 30, 2020 and December 31, 2019. Business combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations Long-lived assets Property and equipment are recorded at cost and presented net of accumulated depreciation. Major additions and betterments are capitalized while maintenance and repairs, which do not improve or extend the life of the respective assets, are expensed. Property and equipment are depreciated on the straight-line basis over their estimated useful lives. Definite-lived and indefinite-lived intangible assets arising from business combinations include customer relationships, trademarks and noncompete agreements. Definite-lived intangible assets are amortized over the estimated period during which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets that are considered to be indefinite-lived are not amortized. The Company reviews its long-lived assets for impairment whenever events or circumstances exist that indicate the carrying amount of an asset or asset group may not be recoverable. The recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset or asset group to the future undiscounted cash flows expected to be generated by that asset group. If the asset or asset group is considered to be impaired, an impairment loss would be recorded to adjust the carrying amounts to the estimated fair value. No such impairment was recorded during the periods covered by this report. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill is reviewed for impairment at least annually, in December, or more frequently if a triggering event occurs between impairment testing dates. Currently, the Company operates as a single operating segment and as a single reporting unit for the purpose of evaluating goodwill impairment. The Company's impairment assessment begins with a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. The qualitative assessment includes comparing the overall financial performance of the Company against the planned results used in the last quantitative goodwill impairment test. Additionally, the Company's fair value is assessed in light of certain events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity and Company specific events. The selection and assessment of qualitative factors used to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value involves significant judgment and estimates. If it is determined under the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a two-step quantitative impairment test is performed. Under the first step, the estimated fair value of the Company would be compared with its carrying value (including goodwill). If the fair value of the Company exceeds its carrying value, step two does not need to be performed. If the estimated fair value of the Company is less than its carrying value, an indication of goodwill impairment exists for the Company and it would need to perform step two of the impairment test. Under step two, an impairment loss would be recognized for any excess of the carrying amount of the Company's goodwill over the implied fair value of that goodwill. Fair value of the Company under the two-step assessment is determined using a combination of both income and market-based approaches. No goodwill impairments were identified for the periods covered by this report. Deferred financing fees and debt discount Deferred financing fees, which are debt issuance costs that qualify for deferral in connection with the issuance of new debt or the modification of existing debt facilities, are amortized over the term of the related debt using the effective interest method (straight-line method for revolving credit arrangements). Debt discounts are also amortized using the effective interest method, unless the interest method approximates the straight-line method. Amortization of such costs are included in interest expense, while the unamortized balances of deferred financing fees and debt discount are presented as reductions of the carrying value of the related debt. Income taxes Income taxes are accounted for under the asset and liability method pursuant to ASC Topic 740, Income Taxes The Company's income tax provision or benefit includes U.S. federal, state and local income taxes and is based on pre-tax income or loss. In determining the annual effective income tax rate, the Company analyzed various factors, including its annual earnings and taxing jurisdictions in which the earnings were generated, the impact of state and local income taxes, and its ability to use tax credits and net operating loss carryforwards. Under ASC 740, the amount of tax benefit to be recognized is the amount of benefit that is "more likely than not" to be sustained upon examination. The Company analyzes its tax filing positions in all of the U.S. federal, state, local, and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. If, based on this analysis, the Company determines that uncertainties in tax positions exist, a liability is established in the consolidated financial statements. The Company recognizes accrued interest and penalties related to unrecognized tax positions in the provision for income taxes. The Company’s income tax returns are subject to examination by federal and state authorities in accordance with prescribed statutes. Share-based compensation The Company accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation ) For restricted stock awards with a time-based vesting condition, the fair value, which is fixed at the grant date for purposes of recognizing compensation costs, is determined by reference to the Company’s stock price on the grant date. A portion of the Company's restricted stock awards contains a market condition. For those restricted stock awards, the fair value is estimated using a Monte Carlo simulation model, whereby the fair value of such awards is fixed at the grant date and amortized over the shorter of the remaining performance or service period. The Monte Carlo simulation valuation model utilizes the following assumptions: expected stock price volatility, the expected life of the awards and a risk-free interest rate. Significant judgment is required in estimating the expected volatility of our common stock. Due to the limited trading history of the Company’s common stock, estimated volatility was based on a peer group of public companies and took into consideration the increased short-term volatility in historical data due to COVID-19. Net loss per common share Pursuant to ASC Topic 260, Earnings Per Share Diluted net loss per share is based on the weighted average number of shares outstanding during the periods plus the effect, if any, of the potential exercise or conversion of securities, such as warrants and restricted stock units that would cause the issuance of additional shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders during the periods listed in the condensed consolidated statement of operations, the weighted average number of shares are the same for both basic and diluted net loss per share due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti-dilutive. An anti-dilutive impact is an increase in earnings per share or a decrease in net loss per share resulting from the conversion, exercise, or contingent issuance of certain securities. Concentration of business and credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and trade receivables. Cash held by the Company, in financial institutions, regularly exceeds the federally insured limit of $250. At June 30, 2020, cash balances held with a financial institution exceeded the federally insured limits. However, management does not believe this poses a significant credit risk. One customer accounted for more than 10% of sales in each of the periods presented in the accompanying condensed consolidated financial statements, except for the period April 1, 2020 through April 6, 2020 for which two customers accounted for more than 10% of sales. No customer accounted for 10% or more of accounts receivable at June 30, 2020. At December 31, 2019, one customer accounted for 11% of accounts receivable. During the Successor period ended June 30, 2020, two of our vendors accounted for at least 10% of costs of revenue (one accounted for $11.1 million and another accounted for $2.5 million). At June 30, 2020, one vendor accounted for at least 10% of accounts payable (accounting for $15.9 million). Fair value of financial instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. ASC Topic 820, Fair Value Measurements and Disclosures ● Level 1 — inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets. ● Level 2 — inputs are based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. Assets measured at fair value on a non-recurring basis include goodwill, and tangible and intangible assets. Such assets are reviewed annually for impairment indicators. If a triggering event has occurred, the assets are re-measured when the estimated fair value of the corresponding asset group is less than the carrying value. The fair value measurements, in such instances, are based on significant unobservable inputs (Level 3). The carrying amounts of the Company’s financial instruments, which include trade receivables, deposits, accounts payable and accrued expenses and debt at floating interest rates, approximate their fair values at June 30, 2020 and December 31, 2019, principally due to their short-term nature, maturities or nature of interest rates. Advertising and vendor considerations Advertising costs are expensed as incurred. Vendor considerations are payments and credits that the Company receives from its vendors and distributors on a quarterly basis. Such consideration includes volume-based incentives and reimbursement for marketing expenses. Volume-based incentive payments are deducted from cost of revenue, while marketing-based incentives are deducted from advertising expense in the period in which the program takes place. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Seasonality Our hardware revenue tends to be seasonal with higher revenues occurring in the first and fourth quarter of each year. Segment reporting As of June 30, 2020, the Company reports operating results and financial data in one operating and reportable segment. The Chief Executive Officer, who is the chief operating decision maker, manages the Company as a single profit center in order to promote collaboration, provide comprehensive service offerings across the entire customer base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding selected products or services is discussed for purposes of promoting an understanding of the Company's business, the chief operating decision maker manages the Company and allocates resources at the consolidated level. Emerging growth company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b) (1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. Private companies are those companies that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised, it adopts the new or revised standard at the time private companies adopt the new or revised standard. Therefore, the Company’s financial statements may not be comparable to certain public companies.

Recently Issued and Adopted Acc

Recently Issued and Adopted Accounting Standards	3 Months Ended
	Jun. 30, 2020
Recently Issued and Adopted Accounting Standards [Abstract]
Recently Issued and Adopted Accounting Standards	4. Recently Issued and Adopted Accounting Standards Recently issued accounting standards As an emerging growth company, the Company has the option of adopting new accounting pronouncements on a delayed basis and has opted to take advantage of this option. As a result, the Company plans to adopt new accounting standards based on the timeline for adoption afforded to privately held companies. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Recently adopted accounting standards In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480 and Derivatives and Hedging (Topic 815) The Company adopted Topic 606 with a date of initial application of January 1, 2019. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers The Company applied Topic 606 using the modified retrospective transition method. In adopting the new standard, the net cumulative effect from prior periods of applying the guidance in Topic 606 was recognized as a cumulative effect adjustment to the opening balance of accumulated deficit as of January 1, 2019. Additionally, the Company has elected the option to only account for contracts that remained open as of the January 1, 2019 transition date in accordance with Topic 606. Revenue recognition for contracts for which substantially all of the revenue was recognized in accordance with the revenue guidance in effect before January 1, 2019 has not been changed. A summary of the significant changes and the quantitative impact of the changes as of the application date are set forth below. ● For sales transactions of certain software products that are sold with integral third-party delivered software support, the Company changed its accounting policy to record both the software license and the accompanying software support on a net basis, as the Company is considered to be the agent in the arrangement, given the predominant nature of the goods and services provided to the customer. Under previous guidance, the Company bifurcated the sale of the software license from the sale of the support contract and recorded the sale of both the software product and software support on a gross sales recognition basis. This change had no effect on reported gross profit dollars associated with these transactions. ● For sales transactions for maintenance, software support and services that are to be performed by a third- party, the Company changed its accounting policy to record these sales on a net basis equal to the selling price to the customer less the acquisition cost, as the third-party controls the service. The Company recognizes revenue from these sales transactions when the customer and vendor accept the terms and conditions of the arrangement. Under previous guidance, the Company recorded the sales of third-party maintenance, software support and service contracts on a gross sales recognition basis. ● The accounting for sales commissions on contracts with performance periods that exceed one year changed such that the Company records such sales commissions as an asset and recognizes the expense over the related contract performance period. Under previous guidance, certain sales commissions were expensed in the period the transaction was generated. The total cumulative effect adjustment from prior periods that the Company recognized in the consolidated balance sheet as of January 1, 2019 as an adjustment to accumulated deficit was $99 as reflected in the following table (in thousands): December 31, Adjustments January 1, Predecessor Predecessor (as reported) (as adjusted) ASSETS Trade receivables, net $ 41,328 $ - $ 41,328 Other current assets 972 99 1,071 Deferred contract costs 9 - 9 TOTAL ASSETS $ 42,309 $ 99 $ 42,408 LIABILITIES Accounts payable $ 38,694 $ 38,694 Unearned revenue 6,953 6,953 $ 45,647 $ - $ 45,647 STOCKHOLDER'S EQUITY Accumulated deficit $ (6,640 ) $ 99 $ (6,541 ) The following tables summarize the effects of adopting Topic 606 on the Company's consolidated statement of operations for the year ended December 31, 2019 (in thousands): For the Year Ended December 31, 2019 Without Adoption of Topic 606 (As Reported) Topic 606 Impact Sales $ 85,716 $ 121,053 $ (35,337 ) Cost of sales 61,309 96,646 (35,337 ) Gross profit 24,407 24,407 - Selling, general and administrative expenses 28,021 27,922 99 Loss from operations (3,614 ) (3,515 ) (99 ) For the year ended December 31, 2019, the adoption of Topic 606 increased net cash provided by operating activities by $99 and had no impact on net cash used in investing and financing activities.

Acquisitions

Acquisitions	3 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Acquisitions	5. Acquisitions On April 7, 2020, the Company consummated the Business Combination that resulted in the acquisition of Computex. The acquisition qualified as a business combination under ASC 805. Accordingly, the Company recorded assets acquired and liabilities assumed at their acquisition-date fair values. The excess of the purchase price over the fair value of assets acquired and liabilities assumed was recorded as goodwill. The goodwill results from factors such as an assembled workforce and management’s industry knowledge. A portion of the goodwill ($11,117) is deductible for tax purposes. The following table represents the allocation of the preliminary purchase consideration among the assets acquired and liabilities assumed at their estimated acquisition-date fair values. Management’s evaluation and allocation of such purchase consideration is preliminary and subject to working capital and other adjustments. Consideration paid: Convertible debentures with warrants that grant the right to acquire 2,000,000 shares of common stock at an exercise price of $0.01 per share $ 20,000 Assumed debt 16,643 AVCT common stock (8,189,490 shares at $3.00 per share) 24,568 Total consideration paid $ 61,211 Net assets acquired: Current assets $ 16,972 Customer relationships (weighted average life - 10 years) 17,300 Trade names (weighted average life - 10 years) 7,000 Furniture & equipment 6,435 Leasehold improvements 2,375 Other assets 88 Current liabilities (26,262 ) Deferred tax liability (3,450 ) Other liabilities (116 ) Total net assets acquired $ 20,342 Goodwill 40,869 Total consideration paid $ 61,211 Identifiable intangible assets acquired consist of customer relationships of $17,300 and trade names of $7,000. Both the customer relationships and the trade names were valued using a form of income approach. The customer relationship was valued using the Multi-Period Excess Earnings Method (or MPEEM) and the method used for the trade names was the Relief from Royalty Method. AVCT incurred transaction costs of $142 for the Successor period ended June 30, 2020, which is net of a credit of $903 granted by a creditor whose account was settled by the issuance of $2,500 in Debentures, $1,500 in shares of common stock and cash of $100. Since the results of operations prior to April 7, 2020 relate to the operations of Computex, excluded from the Predecessor statement of operations are investment income earned and transaction costs incurred by AVCT. Accordingly, excluded are investment income and transaction costs of: $1,219 and $697, respectively, for both the three and six months ended June 30, 2019; transaction costs of $714 for the period April 1, 2020 through April 6, 2020; and investment income and transaction costs of $1,365 and $6,887 for the period January 1, 2020 through April 6, 2020, respectively. Unaudited Pro Forma Financial Information The following unaudited pro forma financial information presents the combined results of operations for the Company and gives effect to the Computex business combinations as if the business combination had occurred on January 1, 2019 (in thousands): Three months ended Six months ended June 30, June 30, June 30, June 30, Revenues $ 19,772 $ 20,943 $ 38,134 $ 45,824 Net loss (4,208 ) (1,538 ) (5,787 ) (2,468 ) The pro forma financial information is not necessarily indicative of the results of operations that would have been realized if the Business Combinations had been completed on January 1, 2019. Such pro forma financial information does not give effect to any integration costs related to the acquired company. The combined net loss in the table above was adjusted for the transaction costs related to the business combination (included as an expense in the six months ended June 30, 2019 and excluded as an expense in the three and six months ended June 30, 2020) and the incremental change in the amortization of intangible assets (adjustment relates to the three and six months ended June 30, 2019 and the portion of the three and six months ended June 30, 2020 that relates to the Predecessor period).

Goodwill and intangible assets

Goodwill and intangible assets	3 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets [Abstract]
Goodwill and intangible assets	6. Goodwill and intangible assets The Company's intangible assets as of June 30, 2020 and December 31, 2019 consisted of the following: June 30, December 31, Successor Predecessor Customer relationships $ 17,300 $ 9,355 Tradenames 7,000 2,110 Noncompete agreements - 6,380 Less accumulated amortization (550 ) (15,441 ) Intangible assets, net of accumulated amortization 23,750 2,404 The estimated lives of the intangible assets, which approximate their weighted average useful lives, as of June 30, 2020, are included in Note 5. Amortization of intangibles were as follows: April 7, 2020 April 1, 2020 April 1, 2019 January 1, 2020 January 1, 2019 through through through through through June 30, 2020 April 6, 2020 June 30, 2019 April 6, 2020 June 30, 2019 Successor Predecessor Predecessor Predecessor Predecessor Amortization of intangibles $ 550 $ 16 $ 247 $ 263 $ 494 Expected amortization expense for definite-lived intangibles for the next five years is as follows: Six months ended December 31, 2020 $ 1,799 Fiscal year 2021 2,430 Fiscal year 2022 2,430 Fiscal year 2023 2,430 Fiscal year 2024 2,430 Thereafter 12,231 Total $ 23,750 There was no accumulated impairment of goodwill as of June 30, 2020 and December 31, 2019.

Accounts payable and accrued ex

Accounts payable and accrued expenses	3 Months Ended
	Jun. 30, 2020
Accounts payable and accrued expenses [Abstract]
Accounts payable and accrued expenses	7. Accounts payable and accrued expenses Accounts payable and accrued expenses were as follows at June 30, 2020 and December 31, 2019: June 30, December 31, Successor Predecessor Accounts payable $ 21,226 $ 18,999 Salary and employee related accruals 1,905 1,847 Accrued professional fees 1,958 - Other 1,496 885 26,585 21,731

Long-Term Debt

Long-Term Debt	3 Months Ended
	Jun. 30, 2020
Long-term Debt, Unclassified [Abstract]
Long-Term Debt	8. Long-Term Debt In connection with the consummation of the Business Combination, the Company assumed the obligations of Computex under a credit agreement with Comerica Bank (as amended, the “Credit Agreement”). On the Closing Date, the Company and Comerica Bank entered into a third amendment to the Credit Agreement that added the Company as borrowers and amended certain provisions of the Credit Agreement, including changing the maturity date of the loans under the Credit Agreement to December 31, 2020, and removing certain financial covenants. As amended, the Credit Agreement provides for maximum borrowings of $22,929, consisting of a $16,500 revolving note and a $6,429 term note. Availability on the revolving note is determined weekly, based on a weekly borrowing base computation that is primarily based on certain percentages of accounts receivable and inventory. On or before the maturity date of the Credit Agreement, the Company plans to either request an extension of the Credit Agreement or enter into a new agreement with another lender. However, there can be no assurance that financing will be available in the amounts the Company requires or on terms acceptable to it, if at all. At June 30, 2020 and December 31, 2019, the balance on the revolving note was $8,010 and $6,051, respectively. All obligations outstanding under the Credit Agreement accrue interest at the higher of the one-month London Interbank Offered Rate (LIBOR) or 1.00%, plus a margin of 4.00%. The effective rate of the revolving note was 5.00% and 5.48% at June 30, 2020 and December 31, 2019, respectively. The effective rate of the term note was 5.00% and 5.53% at June 30, 2020 and December 31, 2019, respectively. The Credit Agreement is subject to a security agreement which includes substantially all the assets of the Company and a pledge of Computex’s equity. Effective on the Closing Date, the previous Computex shareholder was released from the guaranty agreement made in connection with the Credit Agreement. The Fourth Amendment to the Credit Agreement (effected on May 4, 2020), amended certain provisions of the Credit Agreement, including a modification to the covenant in the Credit Agreement that prohibits the incurrence by the borrowers of additional indebtedness to exclude (i) indebtedness incurred by the borrowers under the U.S. Small Business Association’s (“SBA”) Paycheck Protection Program established under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) and the related rules and regulations (the “PPP loan”) and (ii) up to $1.5 million in indebtedness incurred for the sole purpose of financing insurance premiums. During the Successor period ended June 30, 2020, the Company received a PPP loan of $4,135, after its application was approved by the SBA. The PPP loan is administered by the SBA. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of such loans after eight weeks, if the loan is used for eligible purposes, including to fund payroll costs, mortgage interest, rent and/or utility costs, and meet certain other requirements, including, the maintenance of employment and compensation levels. The Company plans to use the entire PPP Loan for qualifying expenses and expects to qualify for full or partial forgiveness under the program. However, the Company can provide no assurance that it will obtain forgiveness for any portion. To obtain forgiveness of the PPP Loan, the Company must request that it be forgiven and provide certain documentation. In 2018, Computex entered into an interest rate swap arrangement to partially mitigate the variability of cash flows due to changes in the Eurodollar rate, specifically related to interest payments on the term note under the Credit Agreement. The interest rate swap has a notional amount of $4,464 and a maturity date of August 2, 2021. The fixed interest rate is 3.04% with a corresponding floating interest rate of 1-month LIBOR. The interest rate swap does not qualify for hedge accounting. No liability was recorded for the fair value of the related derivative, at June 30, 2020 or December 31, 2019, as the liability was not considered material. Total long-term debt excluding the revolving note as of June 30, 2020 and December 31, 2019 consisted of the following (in thousands): June 30, December 31, Successor Predecessor (Unaudited) Senior debt - Term note payable to Comerica Bank; quarterly principal payments of $357 plus interest through the maturity date of December 31, 2020; interest rate variable with effective rate of 5.00% and 5.48% at June 30, 2020 and December 31, 2019, respectively $ 6,429 $ 7,143 PPP Loan administered by Comerica Bank; monthly principal payments plus interest starting November 1, 2020 through the maturity date of April 13, 2022; interest rate 1.00% at June 30, 2020 4,135 - Subordinated debt - Term note payable to Synetra Inc.; quarterly principal payments of $199 plus interest through the maturity date of August 1, 2020; interest rate variable with effective rate of 8.50% at both June 30, 2020 and December 31, 2019 195 573 Subordinated debt - Term note payable to John Sorensen and Paul Sorenson; quarterly principal payments of $130 plus interest through the maturity date of August 1, 2020; interest rate variable with effective rate of 8.50% at both June 30, 2020 and December 31, 2019 127 375 Capital lease obligations 171 236 Total long-term debt 11,057 8,327 Less: unamortized debt issuance costs (103 ) (136 ) Total notes payable, net of unamortized debt issuance costs 10,954 8,191 Less: current maturities of notes payable and capital lease obligations (8,165 ) (2,506 ) Long-term debt, net of current maturities and unamortized debt issuance costs $ 2,789 $ 5,685 Scheduled principal payments for all long-term borrowings at June 30, 2020 were as follows: Six months ended December 31, 2020 $ 7,274 Fiscal year 2021 2,864 Fiscal year 2022 919 Total $ 11,057 Subordinated promissory note On the Closing Date, the Company issued a subordinated promissory note of $500 in partial settlement of a deferred underwriting fee which was agreed at $3,000. The remaining $2,500 was settled via the issuance of Debentures. The subordinated promissory note bears interest at 12.00% per annum, matures on June 30, 2021 and is subordinate to any amounts owing under the Credit Agreement. The entire principal together with any accrued and unpaid interest is due and payable on the maturity date.

Stockholders' Equity, Warrants,

Stockholders' Equity, Warrants, Debentures and Guaranty	3 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Stockholders' Equity, Warrants, Debentures and Guaranty	9. Stockholders' Equity, Warrants, Debentures and Guaranty Preferred stock Common stock Registration rights agreement On the Closing Date, the Company, Pensare Sponsor Group, LLC (the "Sponsor") and certain other initial stockholders of the Company, as well as Stratos Management Systems Holdings, LLC, ("Holdings"), and certain other Investors (as defined below), entered into a Registration Rights Agreement (the "Registration Rights Agreement"). The Registration Rights Agreement amended, restated and replaced a previous registration rights agreement entered into among AVCT, the Sponsor and certain other initial stockholders of AVCT on July 27, 2017. Pursuant to the terms of the Registration Rights Agreement, the holders of certain of the Company's securities, including the Company's founder shares, shares of common stock underlying the Company's private warrants, shares of common stock underlying the securities issued in the Private Placement (as defined below) are entitled to certain registration rights under the Securities Act and applicable state securities laws with respect to such shares of common stock, including up to eight demand registrations in the aggregate and customary "piggy-back" registration rights. Convertible debentures, warrants and guaranty On the Closing Date, the Company also consummated the sale, in a private placement (the "Private Placement"), of units of securities of the Company ("Units") to certain investors (each, an "Investor"), as contemplated by the terms of the previously disclosed Securities Purchase Agreement, dated as of April 3, 2020 (the "Securities Purchase Agreement"). Each Unit consists of (i) $1,000 in principal amount of the Company's Series A convertible debentures (the "Debentures") and (ii) a warrant to purchase 100 shares of Common Stock at an exercise price of $0.01 per whole share (the "Warrants"). The issuances of such securities were not registered under the Securities Act in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. Debentures The Debentures issued on the Closing Date have an aggregate principal amount of approximately $43,169 (including $3,000 in aggregate principal amount issued as part of Units sold to MasTec, Inc., a greater than 5.0% stockholder of the Company ("MasTec"), and $20,000 in aggregate principal of which was part of Units issued to Holdings pursuant to the terms of the Business Combination Agreement and approximately $8,566 in aggregate principal amount of which was issued to the Sponsor as part of Units issued in exchange for the cancellation of indebtedness previously incurred by the Company to the Sponsor). The Debentures bear interest at a rate of 10.0% per annum, payable quarterly on the last day of each calendar quarter in the form of additional Debentures, except upon maturity, in which case accrued and unpaid interest is payable in cash. The entire principal amount of each Debenture, together with accrued and unpaid interest thereon, is due and payable on the earlier of (i) such date, commencing on or after October 7, 2022, as the holder thereof, at its sole option, upon not less than 30 days' prior written notice to the Company, demands payment thereof and (ii) the occurrence of a Change in Control (as defined in the Debentures). Each Debenture is convertible, in whole or in part, at any time at the option of the holder thereof into that number of shares of common stock calculated by dividing the principal amount being converted, together with all accrued but unpaid interest thereon, by the applicable conversion price, initially $3.45. The conversion price is subject to customary adjustments for stock dividends, stock splits, reclassifications and the like, and is also subject to price-based adjustment, on a "full ratchet" basis, in the event of any issuances of common stock, or securities convertible, exercisable or exchangeable for, common stock at a price below the then-applicable conversion price (subject to certain exceptions). The Debentures are subject to mandatory conversion if the closing price of the Company's common stock exceeds $6.00 for any 40 trading days within a consecutive 60 trading day-period, subject to the satisfaction of certain other conditions. The Debentures are subordinated to all Senior Indebtedness (as defined in the Debentures), including indebtedness under the Credit Agreement. Warrants The Warrants issued on the Closing Date entitle the holders to purchase an aggregate of up to 4,316,936 shares of the Company's common stock (including Warrants to purchase up to 2,000,000 shares, 856,600 shares, and 300,000 shares issued to Holdings, the Sponsor and MasTec, respectively, as part of the Units issued to them), at an exercise price of $0.01 per share. The Warrants are exercisable at any time through the fifth anniversary of the date of issuance. The number of shares issuable upon exercise of each Warrant is subject to customary adjustments for stock dividends, stock splits, reclassifications and the like. Guaranty On the Closing Date, Computex and its subsidiaries issued to the Investors a Guaranty, pursuant to which such entities jointly and severally guaranteed the obligations of the Company under the Debentures. Derivative consideration and other disclosures relating to the Debentures and warrants Based on ASC 815, Derivatives and Hedging The relative fair value of the warrant was determined to be $9,937, using the Black-Scholes model. Accordingly, the carrying value of the Debentures at the date of issue was $33,232. The discount is being expensed as interest over the term of the Debenture to increase the carrying value to its face value. During the Successor period, the Company recorded accretion of the discount of $927 and paid-in-kind interest of $1,015, thereby increasing the carrying value of the Debentures to $35,175 ($10,035 of which is classified as "Convertible Debentures, net of discount – related party" on the condensed consolidated balance sheet as of June 30, 2020). The significant assumptions used in the Black-Scholes model were as follows: o stock price volatility – 35% o exercise price – $0.01 o interest rate –0.20% o stock price – $3.00

Related Party Transactions

Related Party Transactions	3 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	10. Related Party Transactions During the Predecessor periods, Computex paid management fees at the rate of $300 per annum to a shareholder, under a management agreement. Such amounts are included in selling, general and administrative expenses in the condensed consolidated statement of operations. This agreement was terminated on the Closing Date. AVCT shares corporate office space with an affiliate and participates in a cost sharing arrangement in a month-to-month leasing arrangement. The space was not used during the period April 7, 2020 through June 30, 2020 and therefore, by mutual agreement between the parties, no expenses were incurred during such period.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Jun. 30, 2020
Revenue Recognition [Abstract]
Revenue Recognition	11. Revenue Recognition In the following tables, revenue is disaggregated by geographies and by verticals (or by sector). Also presented is the portion of revenue that is recognized on a gross basis (which occurs when the Company is deemed to be the principal in the arrangement) and the portion that is recognized on a net basis (which occurs when the Company is deemed to be acting as an agent). April 7, 2020 April 1, 2020 April 1, 2019 January 1, 2020 January 1, 2019 through through through through through June 30, 2020 April 6, 2020 June 30, 2019 April 6, 2020 June 30, 2019 Successor Predecessor Predecessor Predecessor Predecessor Geography United States $ 19,023 $ 675 $ 20,460 $ 18,680 $ 43,717 International 74 - 483 357 2,107 Total net sales $ 19,097 $ 675 $ 20,943 $ 19,037 $ 45,824 Sales by Verticals ( or by Sector) Energy $ 2,619 $ 4 $ 4,145 $ 3,246 $ 12,666 Finance 2,420 151 852 1,715 2,101 Healthcare 5,385 122 7,436 4,182 11,979 Manufacturing and logistics 3,203 89 1,732 5,528 6,996 Public sector 857 - 1,371 1,391 1,859 Retail and hospitality 2,127 - 689 782 1,341 Technology service providers 461 19 2,596 528 4,492 Other Services 1,281 19 1,965 1,485 3,124 Other 744 271 157 180 1,266 Total net sales $ 19,097 $ 675 $ 20,943 $ 19,037 $ 45,824 Gross versus net Gross (principal) $ 17,565 $ 675 $ 19,560 $ 17,578 $ 42,795 Net (agent) 1,532 - 1,383 1,459 3,029 $ 19,097 $ 675 $ 20,943 $ 19,037 $ 45,824 Net sales by geography, in the table above, is generally based on the "ship-to address," with the exception of certain services that may be performed at, or on behalf of, multiple locations, which are categorized based on the "bill-to address." Contract liabilities and remaining performance obligations The Company's contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. As of June 30, 2020 and December 31, 2019, the contract liability balance (unearned revenue) was $3,266 and $6,453, respectively. All of the performance obligations related to unearned revenue as of June 30, 2020 is expected to be performed within 12 months. The Company's contract liabilities consist of payments received from customers, or such consideration that is contractually due, in advance of providing the product or performing the services. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For more information regarding the Company's performance obligations, see Note 3. The following table represents the total transaction price for remaining performance obligations as of June 30, 2020 related to non-cancelable contracts longer than 12 months in duration that are expected to be recognized over future periods. Six months ended December 31, 2020 $ 8,253 Fiscal year 2021 10,767 Fiscal year 2022 4,557 Fiscal year 2023 1,382 Fiscal year 2024 1,211 Thereafter 201 Total remaining performance obligations $ 26,371

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Share-Based Compensation	12. Share-Based Compensation Successor The American Virtual Cloud Technologies, Inc. 2020 Equity Incentive Plan (the "Plan") provides for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs") and other share-based awards. Stock options have a maximum term of ten years from the grant date. As of June 30, 2020, 5,794,500 shares had been authorized for issuance under the Plan. During the Successor period ended June 30, 2020, the Company awarded 2,510,000 RSUs under the Plan. As a result, 3,284,500 shares remained available for issuance. The RSUs were issued to certain directors and employees and can only be settled in shares. Twenty-five percent of the time-based awards vests on each anniversary date of the grant, while 25% of the performance-based awards vests on December 31 st The fair value of the time-based awards (estimated by reference to the Company's stock price and stock marketability on the date of grant) was determined to be $3.00 per unit, while the fair value of the performance-based awards that are scheduled to vest on December 31, 2020 (determined using the Monte Carlo simulation model) was determined to be $0.56 per unit. Assumptions used in estimating the performance-based awards were as follows: estimated expected stock price volatility - 35%; expected life of the awards - 0.73 years; risk-free interest rate – 0.2%; Significant judgment is required in estimating the expected volatility of our common stock. Due to the limited trading history of the Company's common stock, estimated volatility was based on a peer group of public companies and took into consideration the increased short-term volatility in historical data due to COVID-19. Performance targets are set annually for the performance-based awards that are scheduled to vest in that year. The Company's policy is to begin recognizing compensation expense for performance-based awards when the targets are set. For time-based awards, compensation expense is recognized over the vesting period, based on the grant date fair value. For the performance-based awards, compensation is recognized over the shorter of the performance period and the service period. Share-based compensation expense recognized during the Successor period ended June 30, 2020, relating to the RSUs was $618, of which $578 related to time-based awards and $40 related to performance-based awards. All of the RSUs outstanding as of June 30, 2020 were granted during the Successor period and all were unvested and none were forfeited. The weighted average grant date fair value of the RSUs is $2.70. Total compensation cost not yet recognized related to unvested awards as of June 30, 2020 was $4,338 and is expected to be recognized over the weighted average period of 2.3 years.

Reconciliation of Net Loss per

Reconciliation of Net Loss per Common Share	3 Months Ended
	Jun. 30, 2020
Earnings Per Share Reconciliation [Abstract]
Reconciliation of Net Loss per Common Share	13. Reconciliation of Net Loss per Common Share Basic and diluted net loss per common share is calculated as follows: April 7, 2020 April 1, 2020 April 1, 2019 January 1, 2020 January 1, 2019 through through through through through June 30, 2020 April 6, 2020 June 30, 2019 April 6, 2020 June 30, 2019 Successor Predecessor Predecessor Predecessor Predecessor Net loss $ (3,674 ) $ (618 ) $ (1,177 ) $ (1,589 ) $ (1,604 ) Weighted average shares outstanding, basic and diluted 19,635,830 1,000 1,000 1,000 1,000 Basic and diluted net loss per ordinary share $ (0.19 ) $ (618.00 ) $ (1,177.00 ) $ (1,589.00 ) $ (1,604.00 ) Since their inclusion would have been antidilutive, excluded from the computation of diluted net loss per share for the Successor period ended June 30, 2020 were: 2,510,000 unvested RSUs, 30,354,436 Warrants and 12,807,090 shares underlying the Debentures, were they to be converted.

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	14. Income Taxes The benefit (provision) for income taxes consisted of the following: April 7, 2020 April 1, 2020 April 1, 2019 January 1, 2020 January 1, 2019 through through through through through June 30, 2020 April 6, 2020 June 30, 2019 April 6, 2020 June 30, 2019 Successor Predecessor Predecessor Predecessor Predecessor Current: Federal $ - $ - $ - $ - $ (1 ) State (16 ) (1 ) (65 ) (12 ) (87 ) (16 ) (1 ) (65 ) (12 ) (88 ) Deferred Federal 21 - - - - State 3 - - - - 24 - - - - Total benefit (provision) $ 8 $ (1 ) $ (65 ) $ (12 ) $ (88 ) Principal components of the Company's deferred tax assets as of June 30, 2020 and December 31, 2019 were as follows: June 30, December 31, Successor Predecessor Prepaid expenses $ (396 ) $ (50 ) Accrued reserves 79 37 Deferred revenue 494 460 Accrued liabilities 244 202 Uniform capitalization of inventory for tax 37 11 Contribution carryover 15 17 Tax depreciation in excess of book (1,207 ) (1,598 ) Intangible assets (3,424 ) (345 ) Federal income tax credits - - Disallowed interest 739 497 Net operating loss carryforwards 6,129 4,318 Total 2,710 3,549 Less: valuation allowance (6,136 ) (3,549 ) Net deferred tax liability $ (3,426 ) $ - The Company's effective income tax rate differs from what would be expected if the federal statutory rate were applied to loss before income taxes primarily because of certain expenses deductible for financial reporting purposes that are not deductible for tax purposes, research and development tax credits, operating loss carryforwards, and adjustments to previously recorded deferred tax assets and liabilities due to the enactment of the Tax Cuts and Jobs Act in 2017. At December 31, 2019, the Company had net operating loss carryforwards of approximately $11,900 that begin to expire in 2036. The Company assesses available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant component of objective negative evidence identified during management's evaluation was the cumulative loss incurred over the three-year period ended December 31, 2019. Such objective evidence limits the ability to consider other subjective evidence, such as our forecasts of future taxable income and tax planning strategies. On the basis of this evaluation as of December 31, 2019, the Company recognized a full valuation allowance against its net deferred tax assets, pursuant to ASC 740, as of December 31, 2019. In calculating the valuation allowance as of June 30, 2020, the Company was not permitted to use its existing deferred tax liabilities related to its indefinite-lived intangible assets as a source of taxable income to support the realization of its existing finite-lived deferred tax assets. Based on the Company's evaluation, it was determined that no uncertain tax positions existed as of June 30, 2020 or December 31, 2019.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	15. Commitments and Contingencies Operating lease obligations The Company is party to operating leases under which it leases various facilities and equipment. The majority of the facility leases provide that the Company pay, in addition to the minimum rent, certain operating expenses. The leases expire at various dates through August 2024. Future minimum rent payments, excluding operating expenses and month-to-month leases, required under noncancelable operating leases were as follows as of June 30, 2020: Six months ended December 31, 2020 $ 582 Fiscal year 2021 815 Fiscal year 2022 524 Fiscal year 2023 453 Fiscal year 2024 336 Total $ 2,710 Contingencies On December 16, 2019, the Company received a complaint filed by one of its vendors for alleged breach of contract asking for approximately $351. This suit was settled during the second quarter for $281. In addition, from time to time, the Company may be involved in various legal proceedings and claims in the ordinary course of business. As of June 30, 2020, and through the filing date of this report, the Company does not believe the ultimate resolution of such actions or potential actions of which the Company is currently aware will have a material effect on its financial position, results of operations or cash flows.

Subsequent Events

Subsequent Events	3 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	16. Subsequent Events The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements are issued. On August 5, 2020, AVCT entered into a Purchase Agreement (the “Purchase Agreement”) with Ribbon Communications, Inc. (“Ribbon”), Ribbon Communications Operating Company, Inc. (“RCOCI”) and Ribbon Communications International Limited (together with RCOCI, the “Sellers”, and together with Ribbon, the “Ribbon Parties”), pursuant to which AVCT has agreed to purchase the Sellers’ cloud-based enterprise services business (also known as the Kandy Communications business) (the “Business”) by acquiring certain of the Sellers’ and their respective affiliates assets (and assuming certain of the Sellers’ and their respective affiliates’ liabilities) primarily associated with the Business, and acquiring all of the outstanding interests of Kandy Communications LLC (the “Transaction”). Under the terms of the Purchase Agreement, AVCT has agreed to issue to Ribbon 13.0 million shares of AVCT’s common stock (the “Issued Shares”), subject to certain adjustments, as consideration for the Transaction (the “Purchase Price”). Pursuant to the terms of the Purchase Agreement, AVCT is required to complete an equity offering (the “Equity Offering”) prior to, or simultaneously with, the closing of the Transaction (the “Closing”), and in the event AVCT is successful in raising at least $100.0 million in the Equity Offering, AVCT will sell additional securities in the Equity Offering resulting in proceeds in an amount up to the value of 20% of the Issued Shares being issued to Ribbon, with the value of each Issued Share being equal to (i) the value of the AVCT common stock or other securities convertible into a share of AVCT common stock that is being sold in the Equity Offering, or (ii) in the event another form of securities is being offered in the Equity Offering, or if the Equity Offering is consummated more than five days prior to the Closing, the volume weighted average price of AVCT common stock for the ten trading days immediately prior to the Closing (the equivalent shares sold, “Sold Shares”). AVCT will deliver to Ribbon, as part of the Purchase Price, the gross proceeds from the sale of additional securities in the Equity Offering in excess of $100.0 million, in lieu of the Sold Shares at the Closing. In the event that AVCT’s Pro Forma Total Enterprise Value (as defined in the Purchase Agreement), after taking into account the Equity Offering proceeds, would be below $275.0 million, AVCT and Ribbon have agreed to negotiate a potential change in the number of Issued Shares. If an agreement cannot be reached on any change in the number of Issued Shares, AVCT will not proceed with the Equity Offering. The obligations of each of the Ribbon Parties and AVCT are subject to specified conditions, including, among other matters: (i) the approval by AVCT’s shareholders of the issuance to Ribbon of the Issued Shares (the “Share Issuance”), (ii) the successful completion of the Equity Offering, and (iii) the absence of any injunctions being entered into or law being adopted that would make the Transaction illegal. The Purchase Agreement contains customary representations and warranties from the Ribbon Parties and AVCT. It also contains customary covenants, including (i) covenants providing for each of the parties to use its commercially reasonable efforts to cause the Transaction to be consummated, and for each of the Sellers and AVCT to carry on their respective businesses in the ordinary course of business consistent with past practice during the period between the execution of the Purchase Agreement and the Closing, (ii) non-competition and non-solicitation of employee covenants applicable to Ribbon for a period of three years following the Closing and (iii) non-solicitation of employee covenants applicable to AVCT for a period of three years following the Closing. The Sellers have also agreed not to initiate, solicit, knowingly encourage the submission of any proposal or offer relating to alternate transactions or, engage in any discussions or negotiations with respect to alternate transactions regarding the Business, during the period between the execution of the Purchase Agreement and the Closing. AVCT is required to seek stockholder approval of the issuance of the Issued Shares pursuant to Nasdaq listing rules. The Purchase Agreement contains termination rights for each of the Sellers and AVCT, including, without limitation, in the event that (i) the Transaction is made illegal or any governmental entity issues a non-appealable final order permanently enjoining the Transaction; (ii) the Transaction is not consummated by December 4, 2020; or (iii) the other party breaches its representations, warranties or covenants under the Purchase Agreement which would give rise to the failure of a closing condition and such breach is not cured with 30-days of receipt of written notice of such breach. The Purchase Agreement provides that AVCT will be obligated to pay Ribbon a termination fee of $1.0 million if the Purchase Agreement is terminated under certain circumstances at a time when the Equity Offering has not been completed. The Purchase Agreement contemplates that Ribbon and AVCT will enter into an Investor Rights Agreement (the “Investor Rights Agreement”) at the Closing pursuant to which Ribbon will receive customary registration rights with respect to the Issued Shares. In addition, under the Investor Rights Agreement, so long as Ribbon holds at least 25% of the shares of AVCT common stock issued to Ribbon at Closing, Ribbon will have the right to nominate one director to the AVCT board of directors. The Investor Rights Agreement also provides that each of Pensare Sponsor Group, LLC and Stratos Management Systems Holdings, LLC (each, a “Significant Stockholder”) will agree to support AVCT’s obligation to nominate and have elected Ribbon’s director nominee. There were no other subsequent events that required adjustment or disclosure in the condensed consolidated financial statements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission ("SEC"). Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. These condensed consolidated financial statements should be read in conjunction with Stratos Management Systems, Inc.'s consolidated financial statements and notes as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017, included in the Report on Form 8-K/A filed with the SEC on April 14, 2020. The interim results for the periods ended June 30, 2020 are not necessarily indicative of the results expected for the year ending December 31, 2020 or any future interim periods. As a result of the Business Combination, the Company is considered the acquirer and Computex is considered the acquiree and the accounting predecessor. The Business Combination was accounted for using the acquisition method of accounting, and the Successor's financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired. In the accompanying condensed consolidated financial statements, the Company clearly distinguishes between the entity that existed before the Closing Date ("Predecessor") and the entity that existed on and after such date ("Successor"). Because the Successor's financial statements are presented on a different basis from the Predecessor's financial statements, the two entities may not be comparable, in certain respects. As a result, a black line is used to separate the Successor and the Predecessor columns or sections in certain tables included in the condensed consolidated financial statements. Determining fair values of certain assets acquired and liabilities assumed requires the exercise of judgment and often involves the use of significant estimates and assumptions. See Note 5 for a discussion of the fair value estimates that were recorded in connection with the Company's acquisition of Computex.
Principles of consolidation	Principles of consolidation The accompanying condensed consolidated financial statements of the Company include the accounts of AVCT and its wholly owned subsidiary, Computex. The financial position, results of operations and cash flows described herein for the dates and periods prior to April 7, 2020 relate to the operations of Computex. The Successor condensed consolidated financial statements include the accounts of AVCT and its subsidiaries. The Predecessor condensed consolidated financial statements include the accounts of Computex and its subsidiaries. All intercompany balances and transactions have been eliminated. As more fully discussed above, the historical financial information of AVCT prior to the business combination (a SPAC) has not been reflected in the Predecessor financial statements as these historical amounts have been determined to be not useful information to a user of the financial statements. Accordingly, no other activity in the Company was reported for periods prior to April 7, 2020 besides Computex's operations as Predecessor.
Use of estimates	Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales (or revenues) and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that estimates made as of the date of the financial statements could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from those estimates. Significant accounting estimates reflected in the Company's condensed consolidated financial statements include, but are not limited to, revenue recognition, allowance for doubtful accounts, recognition and measurement of income tax assets, valuation of share-based compensation, and the valuation of the net assets acquired in the Business Combination.
Revenue recognition	Revenue recognition Effective January 1, 2019, the Company adopted Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers Revenue from contracts with customers are not recorded until the Company has the approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and collectability of the consideration is probable. The Company also evaluates the following indicators, amongst others, when determining whether it is acting as a principal in the transaction (and therefore whether to record revenue on a gross basis): (i) whether the Company is primarily responsible for fulfilling the promise to provide the specified goods or service, (ii) whether the Company has the inventory risk before the specified good or service has been transferred to a customer or after transfer of control to the customer and (iii) whether the Company has the discretion to establish the price for the specified good or service. If the terms of a transaction do not indicate that the Company is acting as a principal in the transaction, then the Company is acting as an agent in the transaction and therefore, the associated revenue is recognized on a net basis (that is revenue net of costs). Revenue is recognized once control passes to the customer. The following indicators are evaluated in determining when control has passed to the customer: (i) whether the Company has a right to payment for the product or service, (ii) whether the customer has legal title to the product, (iii) whether the Company has transferred physical possession of the product to the customer, (iv) whether the customer has the significant risk and rewards of ownership of the product and (v) whether the customer has accepted the product. The Company's products can be delivered to customers in a variety of ways, including (i) physical shipment from the Company's warehouse, (ii) via drop-shipment by the vendor or supplier or (iii) via electronic delivery of keys for software licenses. The Company's shipping terms typically allow for the Company to recognize revenue when the product reaches the customer's location. Hardware Revenue from the sale of hardware is recognized on a gross basis, as the Company is deemed to be acting as the principal in these transactions. The selling price to the customer is recorded as revenue and the acquisition cost is recorded within cost of revenue. The Company recognizes revenue from these transactions when control has passed to the customer, which is usually upon delivery. In some instances, the customer agrees to buy the product from the Company, but requests delivery at a later date, commonly known as bill-and-hold arrangements. For these transactions, the Company deems that control passes to the customer when the product is ready for delivery. The Company classifies such products as products ready for delivery when the customer has a signed agreement, the significant risk and rewards for the product has passed to the customer, the customer has the ability to direct the assets, the products have been set aside specifically for the customer and the Company cannot redirect the product for the benefit of another customer. In drop-shipment arrangements, whereby the Company arranges for the vendor to deliver products directly to its customers without the inventory first being physically held at its warehouses, the Company considers itself to be the principal in the transaction and therefore, recognizes the related revenue on a gross basis. Software Revenues from most software license sales are recognized as a single performance obligation on a net basis, as the Company is deemed to be acting as an agent in these transactions. Revenues in these instances are recognized at the point the software license is delivered to the customer. Generally, software licenses are sold with accompanying third-party delivered software support, which is a product that allows customers to upgrade, at no additional cost, to the latest technology if new capabilities are introduced during the period that the software support is in effect. The Company evaluates whether the software support is a separate performance obligation by assessing whether the third-party delivered software support is critical or essential to the core functionality of the software itself. This involves considering whether the software provides its original intended functionality to the customer without the updates, whether the customer would ascribe a higher value to the upgrades versus the up-front deliverable, whether the customer would expect frequent intelligence updates to the software (such as updates that maintain the original functionality), and whether the customer chooses to not delay or always install upgrades. If the Company determines that the accompanying third-party delivered software support is critical or essential to the core functionality of the software license, the software license and the accompanying third-party delivered software support are recognized as a single performance obligation. The value of the product is primarily based on the accompanying support delivered by a third-party, and therefore the Company is acting as an agent in these transactions and therefore, recognizes the associated revenue on a net basis at the point that the associated software license is delivered to the customer. Third-party services The Company is deemed to be the agent in the sale of third-party maintenance, software support and services, as the third-party controls the service until it is transferred to the customer. In these instances, the Company recognizes the revenue on a net basis equal to the selling price to the customer less the acquisition costs. Such revenue is recognized when the customer and vendor accept the terms and conditions of the arrangement. Managed and professional services Professional services offerings include assessments, project management, staging, configuration, and integration. Managed services offerings range from monitoring and notification to a fully outsourced network management solution. In these arrangements, the Company satisfies the performance obligations and recognizes revenue over time. Such professional services are provided under both time and materials and fixed price contracts. When services are provided on a time and materials basis, the Company recognizes revenues at agreed-upon billing rates as services are performed. When services are provided on a fixed fee basis, the Company recognizes revenues over time in proportion to the Company's progress towards complete satisfaction of the performance obligation. In arrangements for managed services, the Company's arrangement is typically a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The Company typically recognize revenues from these services on a straight-line basis over the period services are provided, which is consistent with the timing of services rendered. Freight and sales tax Freight billed to customers is included within sales on the condensed consolidated statement of operations. The related freight charged to the Company is included within cost of revenue. Sales tax collected from customers is remitted to governmental authorities on a net basis. Contract liabilities Contract liabilities (or deferred or unearned revenue) are recognized when cash payments are received or due in advance of the Company's performance obligations. Costs of obtaining and fulfilling a contract The Company capitalizes costs that are incremental to obtaining customer contracts, predominately sales commissions. Such deferrals are then amortized to expense, in proportion to each completed contract performance obligation, on a straight-line basis over the period during which the Company fulfills its performance obligation. Costs associated with contracts whereby the Company has an obligation to perform services, are incurred specifically to assist the Company in rendering services to its customers and are recorded as deferred customer support contract costs at the time the costs are incurred. The costs are amortized to expense on a straight-line basis over the period during which the Company fulfills its performance obligation.
Cash and cash equivalents	Cash and cash equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at June 30, 2020 and December 31, 2019.
Trade receivables, net	Trade receivables, net Trade receivables arise from granting credit to customers in the normal course of business, are unsecured and are presented net of an allowance for doubtful accounts. The allowance is based on a number of factors, including the length of time the receivable is past due, the Company's previous loss history, the customer's current ability to pay, and the general condition of the economy and industry as a whole. Payment is due 30 days after the customer receives an invoice. Accounts that are more than 45 days past due are individually analyzed for collectability. When all collection efforts have been exhausted, the accounts are written off. Historically, the Company has not suffered significant losses with respect to its trade receivables. The allowance for doubtful accounts was approximately $330 and $138 at June 30, 2020 and December 31, 2019, respectively.
Inventories	Inventories Inventories, which consist of purchased components for resale, are valued at the lower of average cost (which approximates the first-in, first-out method) and net realizable value. The need for an inventory obsolescence reserve is based on an evaluation of slow-moving or obsolete inventory. No obsolescence reserve was deemed necessary at June 30, 2020 and December 31, 2019.
Business combinations	Business combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations
Long-lived assets	Long-lived assets Property and equipment are recorded at cost and presented net of accumulated depreciation. Major additions and betterments are capitalized while maintenance and repairs, which do not improve or extend the life of the respective assets, are expensed. Property and equipment are depreciated on the straight-line basis over their estimated useful lives. Definite-lived and indefinite-lived intangible assets arising from business combinations include customer relationships, trademarks and noncompete agreements. Definite-lived intangible assets are amortized over the estimated period during which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets that are considered to be indefinite-lived are not amortized. The Company reviews its long-lived assets for impairment whenever events or circumstances exist that indicate the carrying amount of an asset or asset group may not be recoverable. The recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset or asset group to the future undiscounted cash flows expected to be generated by that asset group. If the asset or asset group is considered to be impaired, an impairment loss would be recorded to adjust the carrying amounts to the estimated fair value. No such impairment was recorded during the periods covered by this report.
Goodwill	Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill is reviewed for impairment at least annually, in December, or more frequently if a triggering event occurs between impairment testing dates. Currently, the Company operates as a single operating segment and as a single reporting unit for the purpose of evaluating goodwill impairment. The Company's impairment assessment begins with a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. The qualitative assessment includes comparing the overall financial performance of the Company against the planned results used in the last quantitative goodwill impairment test. Additionally, the Company's fair value is assessed in light of certain events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity and Company specific events. The selection and assessment of qualitative factors used to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value involves significant judgment and estimates. If it is determined under the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a two-step quantitative impairment test is performed. Under the first step, the estimated fair value of the Company would be compared with its carrying value (including goodwill). If the fair value of the Company exceeds its carrying value, step two does not need to be performed. If the estimated fair value of the Company is less than its carrying value, an indication of goodwill impairment exists for the Company and it would need to perform step two of the impairment test. Under step two, an impairment loss would be recognized for any excess of the carrying amount of the Company's goodwill over the implied fair value of that goodwill. Fair value of the Company under the two-step assessment is determined using a combination of both income and market-based approaches. No goodwill impairments were identified for the periods covered by this report.
Deferred financing fees and debt discount	Deferred financing fees and debt discount Deferred financing fees, which are debt issuance costs that qualify for deferral in connection with the issuance of new debt or the modification of existing debt facilities, are amortized over the term of the related debt using the effective interest method (straight-line method for revolving credit arrangements). Debt discounts are also amortized using the effective interest method, unless the interest method approximates the straight-line method. Amortization of such costs are included in interest expense, while the unamortized balances of deferred financing fees and debt discount are presented as reductions of the carrying value of the related debt.
Income taxes	Income taxes Income taxes are accounted for under the asset and liability method pursuant to ASC Topic 740, Income Taxes The Company's income tax provision or benefit includes U.S. federal, state and local income taxes and is based on pre-tax income or loss. In determining the annual effective income tax rate, the Company analyzed various factors, including its annual earnings and taxing jurisdictions in which the earnings were generated, the impact of state and local income taxes, and its ability to use tax credits and net operating loss carryforwards. Under ASC 740, the amount of tax benefit to be recognized is the amount of benefit that is "more likely than not" to be sustained upon examination. The Company analyzes its tax filing positions in all of the U.S. federal, state, local, and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. If, based on this analysis, the Company determines that uncertainties in tax positions exist, a liability is established in the consolidated financial statements. The Company recognizes accrued interest and penalties related to unrecognized tax positions in the provision for income taxes. The Company's income tax returns are subject to examination by federal and state authorities in accordance with prescribed statutes.
Share-based compensation	Share-based compensation The Company accounts for share-based compensation in accordance with ASC 718, Compensation—Stock Compensation ) For restricted stock awards with a time-based vesting condition, the fair value, which is fixed at the grant date for purposes of recognizing compensation costs, is determined by reference to the Company's stock price on the grant date. A portion of the Company's restricted stock awards contains a market condition. For those restricted stock awards, the fair value is estimated using a Monte Carlo simulation model, whereby the fair value of such awards is fixed at the grant date and amortized over the shorter of the remaining performance or service period. The Monte Carlo simulation valuation model utilizes the following assumptions: expected stock price volatility, the expected life of the awards and a risk-free interest rate. Significant judgment is required in estimating the expected volatility of our common stock. Due to the limited trading history of the Company's common stock, estimated volatility was based on a peer group of public companies and took into consideration the increased short-term volatility in historical data due to COVID-19.
Net loss per common share	Net loss per common share Pursuant to ASC Topic 260, Earnings Per Share Diluted net loss per share is based on the weighted average number of shares outstanding during the periods plus the effect, if any, of the potential exercise or conversion of securities, such as warrants and restricted stock units that would cause the issuance of additional shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders during the periods listed in the condensed consolidated statement of operations, the weighted average number of shares are the same for both basic and diluted net loss per share due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti-dilutive. An anti-dilutive impact is an increase in earnings per share or a decrease in net loss per share resulting from the conversion, exercise, or contingent issuance of certain securities.
Concentration of business and credit risk	Concentration of business and credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and trade receivables. Cash held by the Company, in financial institutions, regularly exceeds the federally insured limit of $250. At June 30, 2020, cash balances held with a financial institution exceeded the federally insured limits. However, management does not believe this poses a significant credit risk. One customer accounted for more than 10% of sales in each of the periods presented in the accompanying condensed consolidated financial statements, except for the period April 1, 2020 through April 6, 2020 for which two customers accounted for more than 10% of sales. No customer accounted for 10% or more of accounts receivable at June 30, 2020. At December 31, 2019, one customer accounted for 11% of accounts receivable. During the Successor period ended June 30, 2020, two of our vendors accounted for at least 10% of costs of revenue (one accounted for $11.1 million and another accounted for $2.5 million). At June 30, 2020, one vendor accounted for at least 10% of accounts payable (accounting for $15.9 million).
Fair value of financial instruments	Fair value of financial instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. ASC Topic 820, Fair Value Measurements and Disclosures ● Level 1 — inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets. ● Level 2 — inputs are based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. Assets measured at fair value on a non-recurring basis include goodwill, and tangible and intangible assets. Such assets are reviewed annually for impairment indicators. If a triggering event has occurred, the assets are re-measured when the estimated fair value of the corresponding asset group is less than the carrying value. The fair value measurements, in such instances, are based on significant unobservable inputs (Level 3). The carrying amounts of the Company's financial instruments, which include trade receivables, deposits, accounts payable and accrued expenses and debt at floating interest rates, approximate their fair values at June 30, 2020 and December 31, 2019, principally due to their short-term nature, maturities or nature of interest rates.
Advertising and vendor considerations	Advertising and vendor considerations Advertising costs are expensed as incurred. Vendor considerations are payments and credits that the Company receives from its vendors and distributors on a quarterly basis. Such consideration includes volume-based incentives and reimbursement for marketing expenses. Volume-based incentive payments are deducted from cost of revenue, while marketing-based incentives are deducted from advertising expense in the period in which the program takes place.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.
Seasonality	Seasonality Our hardware revenue tends to be seasonal with higher revenues occurring in the first and fourth quarter of each year.
Segment reporting	Segment reporting As of June 30, 2020, the Company reports operating results and financial data in one operating and reportable segment. The Chief Executive Officer, who is the chief operating decision maker, manages the Company as a single profit center in order to promote collaboration, provide comprehensive service offerings across the entire customer base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding selected products or services is discussed for purposes of promoting an understanding of the Company's business, the chief operating decision maker manages the Company and allocates resources at the consolidated level.
Emerging growth company	Emerging growth company The Company is an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended, (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of 2012, (the "JOBS Act"), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b) (1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. Private companies are those companies that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised, it adopts the new or revised standard at the time private companies adopt the new or revised standard. Therefore, the Company's financial statements may not be comparable to certain public companies.

Recently Issued and Adopted A_2

Recently Issued and Adopted Accounting Standards (Tables)	3 Months Ended
	Jun. 30, 2020
Recently Issued and Adopted Accounting Standards Tables [Abstract]
Schedule of condensed balance sheet	December 31, Adjustments January 1, Predecessor Predecessor (as reported) (as adjusted) ASSETS Trade receivables, net $ 41,328 $ - $ 41,328 Other current assets 972 99 1,071 Deferred contract costs 9 - 9 TOTAL ASSETS $ 42,309 $ 99 $ 42,408 LIABILITIES Accounts payable $ 38,694 $ 38,694 Unearned revenue 6,953 6,953 $ 45,647 $ - $ 45,647 STOCKHOLDER'S EQUITY Accumulated deficit $ (6,640 ) $ 99 $ (6,541 )
Schedule of consolidated statement of operation	For the Year Ended December 31, 2019 Without Adoption of Topic 606 (As Reported) Topic 606 Impact Sales $ 85,716 $ 121,053 $ (35,337 ) Cost of sales 61,309 96,646 (35,337 ) Gross profit 24,407 24,407 - Selling, general and administrative expenses 28,021 27,922 99 Loss from operations (3,614 ) (3,515 ) (99 )

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Schedule of purchase consideration among the assets acquired and liabilities table text block	Consideration paid: Convertible debentures with warrants that grant the right to acquire 2,000,000 shares of common stock at an exercise price of $0.01 per share $ 20,000 Assumed debt 16,643 AVCT common stock (8,189,490 shares at $3.00 per share) 24,568 Total consideration paid $ 61,211 Net assets acquired: Current assets $ 16,972 Customer relationships (weighted average life - 10 years) 17,300 Trade names (weighted average life - 10 years) 7,000 Furniture & equipment 6,435 Leasehold improvements 2,375 Other assets 88 Current liabilities (26,262 ) Deferred tax liability (3,450 ) Other liabilities (116 ) Total net assets acquired $ 20,342 Goodwill 40,869 Total consideration paid $ 61,211
Schedule of Business combination of operation table text block	Three months ended Six months ended June 30, June 30, June 30, June 30, Revenues $ 19,772 $ 20,943 $ 38,134 $ 45,824 Net loss (4,208 ) (1,538 ) (5,787 ) (2,468 )

Goodwill and intangible assets

Goodwill and intangible assets (Tables)	3 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets [Abstract]
Schedule of intangible assets and goodwill	June 30, December 31, Successor Predecessor Customer relationships $ 17,300 $ 9,355 Tradenames 7,000 2,110 Noncompete agreements - 6,380 Less accumulated amortization (550 ) (15,441 ) Intangible assets, net of accumulated amortization 23,750 2,404
Schedule of amortization of intangibles	April 7, 2020 April 1, 2020 April 1, 2019 January 1, 2020 January 1, 2019 through through through through through June 30, 2020 April 6, 2020 June 30, 2019 April 6, 2020 June 30, 2019 Successor Predecessor Predecessor Predecessor Predecessor Amortization of intangibles $ 550 $ 16 $ 247 $ 263 $ 494
Schedule of amortization expense for definite-lived intangibles	Six months ended December 31, 2020 $ 1,799 Fiscal year 2021 2,430 Fiscal year 2022 2,430 Fiscal year 2023 2,430 Fiscal year 2024 2,430 Thereafter 12,231 Total $ 23,750

Accounts payable and accrued _2

Accounts payable and accrued expenses (Tables)	3 Months Ended
	Jun. 30, 2020
Accounts payable and accrued expenses [Abstract]
Schedule of accounts payable and accrued expenses	June 30, December 31, Successor Predecessor Accounts payable $ 21,226 $ 18,999 Salary and employee related accruals 1,905 1,847 Accrued professional fees 1,958 - Other 1,496 885 26,585 21,731

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Jun. 30, 2020
Long-term Debt, Unclassified [Abstract]
Schedule of Total long-term debt	June 30, December 31, Successor Predecessor (Unaudited) Senior debt - Term note payable to Comerica Bank; quarterly principal payments of $357 plus interest through the maturity date of December 31, 2020; interest rate variable with effective rate of 5.00% and 5.48% at June 30, 2020 and December 31, 2019, respectively $ 6,429 $ 7,143 PPP Loan administered by Comerica Bank; monthly principal payments plus interest starting November 1, 2020 through the maturity date of April 13, 2022; interest rate 1.00% at June 30, 2020 4,135 - Subordinated debt - Term note payable to Synetra Inc.; quarterly principal payments of $199 plus interest through the maturity date of August 1, 2020; interest rate variable with effective rate of 8.50% at both June 30, 2020 and December 31, 2019 195 573 Subordinated debt - Term note payable to John Sorensen and Paul Sorenson; quarterly principal payments of $130 plus interest through the maturity date of August 1, 2020; interest rate variable with effective rate of 8.50% at both June 30, 2020 and December 31, 2019 127 375 Capital lease obligations 171 236 Total long-term debt 11,057 8,327 Less: unamortized debt issuance costs (103 ) (136 ) Total notes payable, net of unamortized debt issuance costs 10,954 8,191 Less: current maturities of notes payable and capital lease obligations (8,165 ) (2,506 ) Long-term debt, net of current maturities and unamortized debt issuance costs $ 2,789 $ 5,685
Schedule of long-term borrowings	Six months ended December 31, 2020 $ 7,274 Fiscal year 2021 2,864 Fiscal year 2022 919 Total $ 11,057

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Jun. 30, 2020
Revenue Recognition [Abstract]
Schedule of disaggregation of revenue	April 7, 2020 April 1, 2020 April 1, 2019 January 1, 2020 January 1, 2019 through through through through through June 30, 2020 April 6, 2020 June 30, 2019 April 6, 2020 June 30, 2019 Successor Predecessor Predecessor Predecessor Predecessor Geography United States $ 19,023 $ 675 $ 20,460 $ 18,680 $ 43,717 International 74 - 483 357 2,107 Total net sales $ 19,097 $ 675 $ 20,943 $ 19,037 $ 45,824 Sales by Verticals ( or by Sector) Energy $ 2,619 $ 4 $ 4,145 $ 3,246 $ 12,666 Finance 2,420 151 852 1,715 2,101 Healthcare 5,385 122 7,436 4,182 11,979 Manufacturing and logistics 3,203 89 1,732 5,528 6,996 Public sector 857 - 1,371 1,391 1,859 Retail and hospitality 2,127 - 689 782 1,341 Technology service providers 461 19 2,596 528 4,492 Other Services 1,281 19 1,965 1,485 3,124 Other 744 271 157 180 1,266 Total net sales $ 19,097 $ 675 $ 20,943 $ 19,037 $ 45,824 Gross versus net Gross (principal) $ 17,565 $ 675 $ 19,560 $ 17,578 $ 42,795 Net (agent) 1,532 - 1,383 1,459 3,029 $ 19,097 $ 675 $ 20,943 $ 19,037 $ 45,824
Schedule of performance obligation	Six months ended December 31, 2020 $ 8,253 Fiscal year 2021 10,767 Fiscal year 2022 4,557 Fiscal year 2023 1,382 Fiscal year 2024 1,211 Thereafter 201 Total remaining performance obligations $ 26,371

Reconciliation of Net Loss pe_2

Reconciliation of Net Loss per Common Share (Tables)	3 Months Ended
	Jun. 30, 2020
Earnings Per Share Reconciliation [Abstract]
Schedule of Basic and diluted net loss per common share	April 7, 2020 April 1, 2020 April 1, 2019 January 1, 2020 January 1, 2019 through through through through through June 30, 2020 April 6, 2020 June 30, 2019 April 6, 2020 June 30, 2019 Successor Predecessor Predecessor Predecessor Predecessor Net loss $ (3,674 ) $ (618 ) $ (1,177 ) $ (1,589 ) $ (1,604 ) Weighted average shares outstanding, basic and diluted 19,635,830 1,000 1,000 1,000 1,000 Basic and diluted net loss per ordinary share $ (0.19 ) $ (618.00 ) $ (1,177.00 ) $ (1,589.00 ) $ (1,604.00 )

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of income tax benefit (provision)	April 7, 2020 April 1, 2020 April 1, 2019 January 1, 2020 January 1, 2019 through through through through through June 30, 2020 April 6, 2020 June 30, 2019 April 6, 2020 June 30, 2019 Successor Predecessor Predecessor Predecessor Predecessor Current: Federal $ - $ - $ - $ - $ (1 ) State (16 ) (1 ) (65 ) (12 ) (87 ) (16 ) (1 ) (65 ) (12 ) (88 ) Deferred Federal 21 - - - - State 3 - - - - 24 - - - - Total benefit (provision) $ 8 $ (1 ) $ (65 ) $ (12 ) $ (88 )
Schedule of deferred tax assets	June 30, December 31, Successor Predecessor Prepaid expenses $ (396 ) $ (50 ) Accrued reserves 79 37 Deferred revenue 494 460 Accrued liabilities 244 202 Uniform capitalization of inventory for tax 37 11 Contribution carryover 15 17 Tax depreciation in excess of book (1,207 ) (1,598 ) Intangible assets (3,424 ) (345 ) Federal income tax credits - - Disallowed interest 739 497 Net operating loss carryforwards 6,129 4,318 Total 2,710 3,549 Less: valuation allowance (6,136 ) (3,549 ) Net deferred tax liability $ (3,426 ) $ -

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Six months ended December 31, 2020 $ 582 Fiscal year 2021 815 Fiscal year 2022 524 Fiscal year 2023 453 Fiscal year 2024 336 Total $ 2,710

Liquidity (Details)

Liquidity (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)
Liquidity [Abstract]
Operating bank accounts	$ 6,640
Working capital deficit	$ 17,339

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	Apr. 06, 2020	Jun. 30, 2020	Apr. 06, 2020	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2019
Summary of Significant Accounting Policies (Textual)
Allowance for doubtful accounts		$ 330				$ 138
Federal depository insurance coverage		$ 250
Number of customers	2	1	1	1	1
Number of vendors		2
Cost of revenue		$ 12,917
Accounts payable		$ 21,226
Concentration risk		10.00%
Vendors one [Member]
Summary of Significant Accounting Policies (Textual)
Cost of revenue		$ 11,100
Accounts payable		$ 15,900
Concentration risk		10.00%
Vendors Two [Member]
Summary of Significant Accounting Policies (Textual)
Cost of revenue		$ 2,500
Concentration risk		10.00%
Accounts Payable [Member]
Summary of Significant Accounting Policies (Textual)
Number of vendors		1
Concentration risk		10.00%
Accounts Receivable [Member]
Summary of Significant Accounting Policies (Textual)
Number of customers						1
Concentration risk		10.00%				11.00%

Recently Issued and Adopted A_3

Recently Issued and Adopted Accounting Standards (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2018
ASSETS
Trade receivables, net	$ 17,905
Other current assets
TOTAL ASSETS	101,679
LIABILITIES
Accounts payable	21,226
Total liabilities	88,136
STOCKHOLDER'S EQUITY
Accumulated deficit	$ (20,088)
Predecessor as reported [Member]
ASSETS
Trade receivables, net		$ 41,328
Other current assets		972
Deferred contract costs		9
TOTAL ASSETS		42,309
LIABILITIES
Accounts payable		38,694
Unearned revenue		6,953
Total liabilities		45,647
STOCKHOLDER'S EQUITY
Accumulated deficit		(6,640)
Adjustments [Member]
ASSETS
Trade receivables, net
Other current assets		99
Deferred contract costs
TOTAL ASSETS		99
LIABILITIES
Total liabilities
STOCKHOLDER'S EQUITY
Accumulated deficit		99
Predecessor as adjusted [Member]
ASSETS
Trade receivables, net		41,328
Other current assets		1,071
Deferred contract costs		9
TOTAL ASSETS		42,408
LIABILITIES
Accounts payable		38,694
Unearned revenue		6,953
Total liabilities		45,647
STOCKHOLDER'S EQUITY
Accumulated deficit		$ (6,541)

Recently Issued and Adopted A_4

Recently Issued and Adopted Accounting Standards (Details 1) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Sales	$ 19,097
Gross profit	6,180
Selling, general and administrative expenses	7,546
Loss from operations	$ (1,508)
As Reported [Member]
Sales		$ 85,716
Cost of sales		61,309
Gross profit		24,407
Selling, general and administrative expenses		28,021
Loss from operations		(3,614)
Without Adoption of Topic 606 [Member]
Sales		121,053
Cost of sales		96,646
Gross profit		24,407
Selling, general and administrative expenses		27,922
Loss from operations		(3,515)
Topic 606 Impact [Member]
Sales		(35,337)
Cost of sales		(35,337)
Gross profit
Selling, general and administrative expenses		99
Loss from operations		$ (99)

Recently Issued and Adopted A_5

Recently Issued and Adopted Accounting Standards (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Recently Issued and Adopted Accounting Standards (Textual)
Accumulated deficit	$ (20,088)
Net cash provided by operating activities	$ (10,551)
Topic 606 Impact [Member]
Recently Issued and Adopted Accounting Standards (Textual)
Net cash provided by operating activities		$ 99
Adjustments [Member]
Recently Issued and Adopted Accounting Standards (Textual)
Accumulated deficit			$ 99

Acquisitions (Details)

Acquisitions (Details) $ in Thousands	Apr. 06, 2020USD ($)
Consideration paid:
Convertible debentures with warrants that grant the right to acquire 20,000,000 shares of common stock at an exercise price of $0.01 per share	$ 20,000
Assumed debt	16,643
AVCT common stock (8,189,490 shares at $3.00 per share)	24,568
Total consideration paid	61,211
Net assets acquired:
Current assets	16,972
Customer relationships (weighted average life-10 years)	17,300
Trade names (weighted average life-10 years)	7,000
Furniture & equipment	6,435
Leasehold improvements	2,375
Other assets	88
Current liabilities	(26,262)
Deferred tax liability	(3,450)
Other liabilities	(116)
Total net assets acquired	20,342
Goodwill	40,869
Total consideration paid	$ 61,211

Acquisitions (Details 1)

Acquisitions (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Business Combinations [Abstract]
Revenues	$ 19,772	$ 20,943	$ 38,134	$ 45,824
Net loss	$ (4,208)	$ (1,538)	$ (5,787)	$ (2,468)

Acquisitions (Details Textual)

Acquisitions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	Apr. 06, 2020	Jun. 30, 2020	Apr. 06, 2020	Jun. 30, 2019	Jun. 30, 2019
Acquisitions (Textual)
Net credit		$ 903
Debt		2,500
Shares of common stock issued		1,500
Amount of cash payments		100
Investment income			$ 1,365	$ 1,219	$ 1,219
Transaction costs	$ 714	142	$ 6,887	$ 697	$ 697
Goodwill deductible tax		$ 11,117
Warrants exercise price per share		$ 0.01
Warrants grant right to acquire shares		2,000,000
Trade Names [Member]
Acquisitions (Textual)
Intangible assets		$ 7,000
Customer Relationships [Member]
Acquisitions (Textual)
Intangible assets		$ 17,300

Goodwill and intangible asset_2

Goodwill and intangible assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Less accumulated amortization	$ (550)
Intangible assets, net of accumulated amortization	23,750
Predecessor [Member]
Less accumulated amortization		$ (15,441)
Intangible assets, net of accumulated amortization		2,404
Trade Names [Member]
Intangible assets, net of accumulated amortization	7,000
Trade Names [Member] | Predecessor [Member]
Intangible assets, net of accumulated amortization		2,110
Noncompete Agreements [Member]
Intangible assets, net of accumulated amortization
Noncompete Agreements [Member] | Predecessor [Member]
Intangible assets, net of accumulated amortization		6,380
Customer Relationships [Member]
Intangible assets, net of accumulated amortization	$ 17,300
Customer Relationships [Member] | Predecessor [Member]
Intangible assets, net of accumulated amortization		$ 9,355

Goodwill and intangible asset_3

Goodwill and intangible assets (Details 1) - USD ($) $ in Thousands	Apr. 06, 2020	Jun. 30, 2020	Apr. 06, 2020	Jun. 30, 2019	Jun. 30, 2019
Amortization of intangibles		$ 550
Predecessor [Member]
Amortization of intangibles	$ 16		$ 263	$ 247	$ 494

Goodwill and intangible asset_4

Goodwill and intangible assets (Details 2) $ in Thousands	Jun. 30, 2020USD ($)
Goodwill and Intangible Assets [Abstract]
Six months ended December 31, 2020	$ 1,799
Fiscal year 2021	2,430
Fiscal year 2022	2,430
Fiscal year 2023	2,430
Fiscal year 2024	2,430
Thereafter	12,231
Total	$ 23,750

Accounts payable and accrued _3

Accounts payable and accrued expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accounts payable	$ 21,226
Salary and employee related accruals	1,905
Accrued professional fees	1,958
Other	1,496
Accounts payable and accrued expenses, total	$ 26,585
Predecessor [Member]
Accounts payable		$ 18,999
Salary and employee related accruals		1,847
Accrued professional fees
Other		885
Accounts payable and accrued expenses, total		$ 21,731

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Senior debt - Term note payable to Comerica Bank; quarterly principal payments of $357 plus interest through the maturity date of December 31, 2020; interest rate variable with effective rate of 5.00%  and 5.48% at June 30, 2020 and December 31, 2019, respectively	$ 6,429
PPP Loan administered by Comerica Bank; monthly principal payments plus interest starting November 1, 2020 through the maturity date of April 13, 2022; interest rate 1.00% at June 30, 2020	4,135
Subordinated debt - Term note payable to Synetra Inc.; quarterly principal payments of $199 plus interest through the maturity date of August 1, 2020; interest rate variable with effective rate of 8.50% at both June 30, 2020 and December 31, 2019	195
Subordinated debt - Term note payable to John Sorensen and Paul Sorenson; quarterly principal payments of $130 plus interest through the maturity date of August 1, 2020; interest rate variable with effective rate of 8.50% at both June 30, 2020 and December 31, 2019	127
Capital lease obligations	171
Total long-term debt	11,057
Less: unamortized debt issuance costs	(103)
Total notes payable, net of unamortized debt issuance costs	10,954
Less: current maturities of notes payable and capital lease obligations	(8,165)
Long-term debt, net of current maturities and unamortized debt issuance costs	$ 2,789
Predecessor [Member]
Senior debt - Term note payable to Comerica Bank; quarterly principal payments of $357 plus interest through the maturity date of December 31, 2020; interest rate variable with effective rate of 5.00%  and 5.48% at June 30, 2020 and December 31, 2019, respectively		$ 7,143
PPP Loan administered by Comerica Bank; monthly principal payments plus interest starting November 1, 2020 through the maturity date of April 13, 2022; interest rate 1.00% at June 30, 2020
Subordinated debt - Term note payable to Synetra Inc.; quarterly principal payments of $199 plus interest through the maturity date of August 1, 2020; interest rate variable with effective rate of 8.50% at both June 30, 2020 and December 31, 2019		573
Subordinated debt - Term note payable to John Sorensen and Paul Sorenson; quarterly principal payments of $130 plus interest through the maturity date of August 1, 2020; interest rate variable with effective rate of 8.50% at both June 30, 2020 and December 31, 2019		375
Capital lease obligations		236
Total long-term debt		8,327
Less: unamortized debt issuance costs		(136)
Total notes payable, net of unamortized debt issuance costs		8,191
Less: current maturities of notes payable and capital lease obligations		(2,506)
Long-term debt, net of current maturities and unamortized debt issuance costs		$ 5,685

Long-Term Debt (Details 1)

Long-Term Debt (Details 1) $ in Thousands	Jun. 30, 2020USD ($)
Long-term Debt, Unclassified [Abstract]
Six months ended December 31, 2020	$ 7,274
Fiscal year 2021	2,864
Fiscal year 2022	919
Total	$ 11,057

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Long-Term Debt (Textual)
Credit agreement, description	As amended, the Credit Agreement provides for maximum borrowings of $22,929, consisting of a $16,500 revolving note and a $6,429 term note.
Balance on revolving note	$ 8,010	$ 6,051
Accrued interest, description	All obligations outstanding under the Credit Agreement accrue interest at the higher of the one-month London Interbank Offered Rate (LIBOR) or 1.00%, plus a margin of 4.00%.
Effective rate of revolving note, percentage	5.00%	5.48%
Effective rate of term note, percentage	5.00%	5.53%
Indebtedness on sale	$ 1,500
Loan amount	4,135
Notional amount	$ 4,464
Maturity date	Aug. 2, 2021
Interest rate	3.04%
Long term debt, description	On the Closing Date, the Company issued a subordinated promissory note of $500 in partial settlement of a deferred underwriting fee which was agreed at $3,000. The remaining $2,500 was settled via the issuance of Debentures. The subordinated promissory note bears interest at 12.00% per annum, matures on June 30, 2021 and is subordinate to any amounts owing under the Credit Agreement. The entire principal together with any accrued and unpaid interest is due and payable on the maturity date.
Senior Debt [Member]
Long-Term Debt (Textual)
Maturity date	Dec. 31, 2020
Interest rate	5.00%	5.48%
Quarterly principal payments	$ 357
PPP Loan [Member]
Long-Term Debt (Textual)
Maturity date	Apr. 13, 2022
Interest rate	1.00%
Subordinated Debt [Member]
Long-Term Debt (Textual)
Maturity date	Aug. 1, 2020
Interest rate	8.50%	8.50%
Quarterly principal payments	$ 199
Subordinated Debt One [Member]
Long-Term Debt (Textual)
Maturity date	Aug. 1, 2020
Interest rate	8.50%	8.50%
Quarterly principal payments	$ 130

Stockholders' Equity, Warrant_2

Stockholders' Equity, Warrants, Debentures and Guaranty (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)Vote$ / sharesshares
Stockholders' Equity (Textual)
Preferred stock, authorized | shares	5,000,000
Preferred stock, par value | $ / shares	$ 0.0001
Preferred stock, shares issued | shares	0
Preferred stock, shares outstanding | shares	0
Common stock, authorized | shares	500,000,000
Common stock, par value | $ / shares	$ 0.0001
Number of vote for each common stock | Vote	1
Common stock, shares issued | shares	19,635,830
Common stock, shares outstanding | shares	19,635,830
Principle amount of debenture	$ 1,000
Warrants to purchase common stock | shares	100
Debenture, description	The Debentures issued on the Closing Date have an aggregate principal amount of approximately $43,169 (including $3,000 in aggregate principal amount issued as part of Units sold to MasTec, Inc., a greater than 5.0% stockholder of the Company ("MasTec"), and $20,000 in aggregate principal of which was part of Units issued to Holdings pursuant to the terms of the Business Combination Agreement and approximately $8,566 in aggregate principal amount of which was issued to the Sponsor as part of Units issued in exchange for the cancellation of indebtedness previously incurred by the Company to the Sponsor). The Debentures bear interest at a rate of 10.0% per annum, payable quarterly on the last day of each calendar quarter in the form of additional Debentures, except upon maturity, in which case accrued and unpaid interest is payable in cash. The entire principal amount of each Debenture, together with accrued and unpaid interest thereon, is due and payable on the earlier of (i) such date, commencing on or after October 7, 2022, as the holder thereof, at its sole option, upon not less than 30 days' prior written notice to the Company, demands payment thereof and (ii) the occurrence of a Change in Control (as defined in the Debentures).
Conversion price | $ / shares	$ 3.45
Closing price exceeding price | $ / shares	$ 6
Fair value of warrant	$ 9,937
Stock options exercise price | $ / shares	$ 0.01
Stock price volatility	35.00%
Interest rate	0.20%
Stock price | $ / shares	$ 3
Warrants description	The Warrants issued on the Closing Date entitle the holders to purchase an aggregate of up to 4,316,936 shares of the Company's common stock (including Warrants to purchase up to 2,000,000 shares, 856,600 shares, and 300,000 shares issued to Holdings, the Sponsor and MasTec, respectively, as part of the Units issued to them), at an exercise price of $0.01 per share. The Warrants are exercisable at any time through the fifth anniversary of the date of issuance. The number of shares issuable upon exercise of each Warrant is subject to customary adjustments for stock dividends, stock splits, reclassifications and the like.
Fair value of warrant	$ 9,937
Carrying value of debentures	33,232
Accretion of discount	927
Paid-in-kind interest amount	1,015
Increasing carrying value of debentures	35,175
Convertible debentures, net of discount – related party	$ 10,035
Warrant [Member]
Stockholders' Equity (Textual)
Stock options exercise price | $ / shares	$ 0.01

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)
Related Party Transactions (Textual)
Administrative fees	$ 300

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	Apr. 06, 2020	Jun. 30, 2020	Apr. 06, 2020	Jun. 30, 2019	Jun. 30, 2019
Geography
United States		$ 19,023
International		74
Total net sales		19,097
Sales by Verticals ( or by Sector)
Energy		2,619
Finance		2,420
Healthcare		5,385
Manufacturing and logistics		3,203
Public sector		857
Retail and hospitality		2,127
Technology service providers		461
Other Services		1,281
Other		744
Total net sales		19,097
Gross versus net
Gross (principal)		17,565
Net (agent)		1,532
Total		$ 19,097
Predecessor [Member]
Geography
United States	$ 675		$ 18,680	$ 20,460	$ 43,717
International			357	483	2,107
Total net sales	675		19,037	20,943	45,824
Sales by Verticals ( or by Sector)
Energy	4		3,246	4,145	12,666
Finance	151		1,715	852	2,101
Healthcare	122		4,182	7,436	11,979
Manufacturing and logistics	89		5,528	1,732	6,996
Public sector			1,391	1,371	1,859
Retail and hospitality			782	689	1,341
Technology service providers	19		528	2,596	4,492
Other Services	19		1,485	1,965	3,124
Other	271		180	157	1,266
Total net sales	675		19,037	20,943	45,824
Gross versus net
Gross (principal)	675		17,578	19,560	42,795
Net (agent)			1,459	1,383	3,029
Total	$ 675		$ 19,037	$ 20,943	$ 45,824

Revenue Recognition (Details 1)

Revenue Recognition (Details 1) $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)
Revenue Recognition [Abstract]
Six months ended December 31, 2020	$ 8,253
Fiscal year 2021	10,767
Fiscal year 2022	4,557
Fiscal year 2023	1,382
Fiscal year 2024	1,211
Thereafter	201
Total remaining performance obligations	$ 26,371

Revenue Recognition (Details Te

Revenue Recognition (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Revenue Recognition (Textual)
Contract liability	$ 3,266	$ 6,453

Share-Based Compensation (Detai

Share-Based Compensation (Details)	3 Months Ended
	Jun. 30, 2020$ / sharesshares
Share-Based Compensation (Textual)
Shares issued	1,500
Percentage of performance-based awards vests	25.00%
Price per unit | $ / shares	$ 0.56
Expected stock price volatility	35.00%
Expected life	8 months 23 days
Risk-free interest	0.20%
Time-based awards, description	For time-based awards, compensation expense is recognized over the vesting period, based on the grant date fair value. For the performance-based awards, compensation is recognized over the shorter of the performance period and the service period. Share-based compensation expense recognized during the Successor period ended June 30, 2020, relating to the RSUs was $618, of which $578 related to time-based awards and $40 related to performance-based awards. All of the RSUs outstanding as of June 30, 2020 were granted during the Successor period and all were unvested and none were forfeited. The weighted average grant date fair value of the RSUs is $2.70. Total compensation cost not yet recognized related to unvested awards as of June 30, 2020 was $4,338 and is expected to be recognized over the weighted average period of 2.3 years.
Fair value of time based awards | $ / shares	$ 3
Shares remained available for issuance	3,284,500
Equity Incentive Plan [Member]
Share-Based Compensation (Textual)
Shares issued	5,794,500
RSU [Member]
Share-Based Compensation (Textual)
Shares issued	2,510,000

Reconciliation of Net Loss pe_3

Reconciliation of Net Loss per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 06, 2020	Apr. 30, 2019	Jun. 30, 2020	Apr. 06, 2020	Mar. 31, 2020	Jun. 30, 2019	Apr. 06, 2019	Jun. 30, 2019
Net loss			$ (3,674)
Weighted average shares outstanding, basic and diluted			19,635,830
Basic and diluted net loss per ordinary share			$ (0.19)
Predecessor [Member]
Net loss	$ (618)	$ (1,177)		$ (1,589)	$ (971)	$ (1,177)	$ (1,604)	$ (1,604)
Weighted average shares outstanding, basic and diluted	1,000	1,000		1,000		1,000	1,000	1,000
Basic and diluted net loss per ordinary share	$ (618)	$ (1,177)		$ (1,589)		$ (1,177)	$ (1,604)

Reconciliation of Net Loss pe_4

Reconciliation of Net Loss per Common Share (Details Textual) - Warrant [Member]	3 Months Ended
	Jun. 30, 2020shares
Antidilutive excluded from the computation of diluted net loss per share	30,354,436
Shares underlying debentures	12,807,090
Unvested RSUs	2,510,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Apr. 06, 2020	Jun. 30, 2020	Apr. 06, 2020	Jun. 30, 2019	Jun. 30, 2019
Current:
Federal
State		(16)
Total		(16)
Deferred
Federal		21
State		3
Total		24
Total benefit (provision)		$ 8
Predecessor [Member]
Current:
Federal					$ (1)
State	(1)		(12)	(65)	(87)
Total	(1)		(12)	(65)	(88)
Deferred
Federal
State
Total
Total benefit (provision)	$ (1)		$ (12)	$ (65)	$ (88)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Prepaid expenses	$ (396)
Accrued reserves	79
Deferred revenue	494
Accrued liabilities	244
Uniform capitalization of inventory for tax	37
Contribution carryover	15
Tax depreciation in excess of book	(1,207)
Intangible assets	(3,424)
Federal income tax credits
Disallowed interest	739
Net operating loss carryforwards	6,129
Total	2,710
Less: valuation allowance	(6,136)
Net deferred tax liability	$ 3,426
Predecessor [Member]
Prepaid expenses		$ (50)
Accrued reserves		37
Deferred revenue		460
Accrued liabilities		202
Uniform capitalization of inventory for tax		11
Contribution carryover		17
Tax depreciation in excess of book		(1,598)
Intangible assets		(345)
Federal income tax credits
Disallowed interest		497
Net operating loss carryforwards		4,318
Total		3,549
Less: valuation allowance		(3,549)
Net deferred tax liability

Income Taxes (Details Textual)

Income Taxes (Details Textual) - Predecessor [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 11,900
Expiration date	Expire in 2036

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Six months ended December 31, 2020	$ 1,799
Fiscal year 2021	2,430
Fiscal year 2022	2,430
Fiscal year 2023	2,430
Fiscal year 2024	2,430
Total	$ 23,750

Commitments and Contingencies_3

Commitments and Contingencies (Details Textual)	1 Months Ended
	Dec. 16, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies description	The Company received a complaint filed by one of its vendors for alleged breach of contract asking for approximately $351. This suit was settled during the second quarter for $281.

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] $ in Thousands	Aug. 05, 2020USD ($)shares
Subsequent Events (Textual)
Issued shares of common stock (AVCT) | shares	13,000
Payments of termination fee | $	$ 1
Purchase Agreement, AVCT description	The Purchase Agreement, AVCT is required to complete an equity offering (the “Equity Offering”) prior to, or simultaneously with, the closing of the Transaction (the “Closing”), and in the event AVCT is successful in raising at least $100.0 million in the Equity Offering, AVCT will sell additional securities in the Equity Offering resulting in proceeds in an amount up to the value of 20% of the Issued Shares being issued to Ribbon, with the value of each Issued Share being equal to (i) the value of the AVCT common stock or other securities convertible into a share of AVCT common stock that is being sold in the Equity Offering, or (ii) in the event another form of securities is being offered in the Equity Offering, or if the Equity Offering is consummated more than five days prior to the Closing, the volume weighted average price of AVCT common stock for the ten trading days immediately prior to the Closing (the equivalent shares sold, “Sold Shares”). AVCT will deliver to Ribbon, as part of the Purchase Price, the gross proceeds from the sale of additional securities in the Equity Offering in excess of $100.0 million, in lieu of the Sold Shares at the Closing. In the event that AVCT’s Pro Forma Total Enterprise Value (as defined in the Purchase Agreement), after taking into account the Equity Offering proceeds, would be below $275.0 million, AVCT and Ribbon have agreed to negotiate a potential change in the number of Issued Shares.