Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | RDVT | |
Entity Registrant Name | RED VIOLET, INC. | |
Entity Central Index Key | 0001720116 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 12,150,035 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38407 | |
Entity Tax Identification Number | 82-2408531 | |
Entity Address, Address Line One | 2650 North Military Trail | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Boca Raton | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33431 | |
City Area Code | (561) | |
Local Phone Number | 757-4000 | |
Entity Information, Former Legal or Registered Name | None | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 12,441 | $ 11,776 |
Accounts receivable, net of allowance for doubtful accounts of $20 and $40 as of September 30, 2020 and December 31, 2019, respectively | 2,920 | 3,543 |
Prepaid expenses and other current assets | 616 | 722 |
Total current assets | 15,977 | 16,041 |
Property and equipment, net | 555 | 660 |
Intangible assets, net | 26,977 | 24,034 |
Goodwill | 5,227 | 5,227 |
Right-of-use assets | 2,279 | 2,620 |
Other noncurrent assets | 93 | 289 |
Total assets | 51,108 | 48,871 |
Current liabilities: | ||
Accounts payable | 2,199 | 2,138 |
Accrued expenses and other current liabilities | 775 | 1,571 |
Current portion of operating lease liabilities | 536 | 491 |
Current portion of long-term loan | 1,059 | |
Deferred revenue | 180 | 128 |
Total current liabilities | 4,749 | 4,328 |
Noncurrent operating lease liabilities | 2,052 | 2,459 |
Long-term loan | 1,093 | |
Total liabilities | 7,894 | 6,787 |
Shareholders' equity: | ||
Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of September 30, 2020 and December 31, 2019 | ||
Common stock—$0.001 par value, 200,000,000 shares authorized, 12,371,665 and 11,657,912 shares issued, 12,146,910 and 11,554,765 shares outstanding, as of September 30, 2020 and December 31, 2019 | 13 | 12 |
Treasury stock, at cost, 224,755 and 103,147 shares as of September 30, 2020 and December 31, 2019 | (3,083) | (1,255) |
Additional paid-in capital | 67,082 | 59,187 |
Accumulated deficit | (20,798) | (15,860) |
Total shareholders' equity | 43,214 | 42,084 |
Total liabilities and shareholders' equity | $ 51,108 | $ 48,871 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 20 | $ 40 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 12,371,665 | 11,657,912 |
Common stock, shares outstanding | 12,146,910 | 11,554,765 |
Treasury Stock, Shares | 224,755 | 103,147 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | $ 9,267 | $ 8,257 | $ 25,623 | $ 21,236 |
Costs and expenses: | ||||
Sales and marketing expenses | 2,217 | 1,925 | 6,139 | 5,428 |
General and administrative expenses | 4,147 | 3,498 | 12,844 | 11,259 |
Depreciation and amortization | 1,118 | 750 | 3,020 | 2,049 |
Total costs and expenses | 10,185 | 9,295 | 30,585 | 27,579 |
Loss from operations | (918) | (1,038) | (4,962) | (6,343) |
Interest (expense) income, net | (7) | 46 | 24 | 123 |
Loss before income taxes | (925) | (992) | (4,938) | (6,220) |
Net loss | $ (925) | $ (992) | $ (4,938) | $ (6,220) |
Loss per share: | ||||
Basic and diluted | $ (0.08) | $ (0.09) | $ (0.42) | $ (0.59) |
Weighted average number of shares outstanding: | ||||
Basic and diluted | 12,072,716 | 10,917,673 | 11,758,907 | 10,497,036 |
Service [Member] | ||||
Costs and expenses: | ||||
Cost of revenue (exclusive of depreciation and amortization) | $ 2,703 | $ 3,122 | $ 8,582 | $ 8,843 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid- in Capital | Accumulated Deficit |
Beginning balance at Dec. 31, 2018 | $ 36,278 | $ 10 | $ 41,052 | $ (4,784) | |
Beginning balances, shares at Dec. 31, 2018 | 10,266,613 | ||||
Vesting of restricted stock units | $ 1 | (1) | |||
Vesting of restricted stock units, Shares | 686,049 | ||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes | (1,255) | $ (1,255) | |||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | (103,147) | ||||
Issuance of common stock upon direct offering to certain investors, net of issuance costs of $55 | 7,436 | $ 1 | 7,435 | ||
Issuance of common stock upon direct offering to certain investors, net of costs, Shares | 681,000 | ||||
Share-based compensation | 5,816 | 5,816 | |||
Net loss | (6,220) | (6,220) | |||
Ending balance at Sep. 30, 2019 | 42,055 | $ 12 | $ (1,255) | 54,302 | (11,004) |
Ending balances, shares at Sep. 30, 2019 | 11,633,662 | (103,147) | |||
Beginning balance at Jun. 30, 2019 | 35,251 | $ 10 | 45,253 | (10,012) | |
Beginning balances, shares at Jun. 30, 2019 | 10,286,613 | ||||
Vesting of restricted stock units | $ 1 | (1) | |||
Vesting of restricted stock units, Shares | 666,049 | ||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes | (1,255) | $ (1,255) | |||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | (103,147) | ||||
Issuance of common stock upon direct offering to certain investors, net of issuance costs of $55 | 7,436 | $ 1 | 7,435 | ||
Issuance of common stock upon direct offering to certain investors, net of costs, Shares | 681,000 | ||||
Share-based compensation | 1,615 | 1,615 | |||
Net loss | (992) | (992) | |||
Ending balance at Sep. 30, 2019 | 42,055 | $ 12 | $ (1,255) | 54,302 | (11,004) |
Ending balances, shares at Sep. 30, 2019 | 11,633,662 | (103,147) | |||
Beginning balance at Dec. 31, 2019 | 42,084 | $ 12 | $ (1,255) | 59,187 | (15,860) |
Beginning balances, shares at Dec. 31, 2019 | 11,657,912 | (103,147) | |||
Vesting of restricted stock units | $ 1 | (1) | |||
Vesting of restricted stock units, Shares | 713,753 | ||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes | (1,828) | $ (1,828) | |||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | (121,608) | ||||
Share-based compensation | 7,896 | 7,896 | |||
Net loss | (4,938) | (4,938) | |||
Ending balance at Sep. 30, 2020 | 43,214 | $ 13 | $ (3,083) | 67,082 | (20,798) |
Ending balances, shares at Sep. 30, 2020 | 12,371,665 | (224,755) | |||
Beginning balance at Jun. 30, 2020 | 43,690 | $ 12 | $ (1,255) | 64,806 | (19,873) |
Beginning balances, shares at Jun. 30, 2020 | 11,707,829 | (103,147) | |||
Vesting of restricted stock units | $ 1 | (1) | |||
Vesting of restricted stock units, Shares | 663,836 | ||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes | (1,828) | $ (1,828) | |||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | (121,608) | ||||
Share-based compensation | 2,277 | 2,277 | |||
Net loss | (925) | (925) | |||
Ending balance at Sep. 30, 2020 | $ 43,214 | $ 13 | $ (3,083) | $ 67,082 | $ (20,798) |
Ending balances, shares at Sep. 30, 2020 | 12,371,665 | (224,755) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Common Stock | ||
Stock issuance cost | $ 55 | $ 55 |
Additional Paid- in Capital | ||
Stock issuance cost | $ 55 | $ 55 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (4,938) | $ (6,220) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 3,020 | 2,049 |
Share-based compensation expense | 6,416 | 5,290 |
Write-off of long-lived assets | 117 | 30 |
Provision for bad debts | 360 | 398 |
Noncash lease expenses | 341 | 313 |
Interest expense | 7 | |
Changes in assets and liabilities: | ||
Accounts receivable | 263 | (1,458) |
Prepaid expenses and other current assets | 106 | 40 |
Other noncurrent assets | 109 | 254 |
Accounts payable | 61 | 235 |
Accrued expenses and other current liabilities | (803) | (183) |
Deferred revenue | 52 | 9 |
Operating lease liabilities | (362) | (322) |
Net cash provided by operating activities | 4,749 | 435 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (98) | (71) |
Capitalized costs included in intangible assets | (4,310) | (4,413) |
Net cash used in investing activities | (4,408) | (4,484) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of shares, net of issuance costs | 7,436 | |
Proceeds from long-term loan | 2,152 | |
Taxes paid related to net share settlement of vesting of restricted stock units | (1,828) | |
Net cash provided by financing activities | 324 | 7,436 |
Net increase in cash and cash equivalents | 665 | 3,387 |
Cash and cash equivalents at beginning of period | 11,776 | 9,950 |
Cash and cash equivalents at end of period | 12,441 | 13,337 |
SUPPLEMENTAL DISCLOSURE INFORMATION | ||
Share-based compensation capitalized in intangible assets | $ 1,480 | 526 |
Right-of-use assets obtained in exchange of operating lease liabilities | 3,042 | |
Operating lease liabilities arising from obtaining right-of-use assets | $ 3,387 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of significant accounting policies (a) Basis of preparation The accompanying unaudited condensed consolidated financial statements of Red Violet, Inc. (“red violet” or the “Company”), a Delaware corporation, The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for any future interim periods or for the full year ending December 31, 2020. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Form 10-K”). The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date included in the 2019 Form 10-K, but does not include all disclosures required by GAAP. The Company has only one operating segment, as defined by Accounting Standards Codification (“ASC”) 280, “ Segment Reporting Principles of consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions among the Company and its subsidiaries have been eliminated upon consolidation . (b) Recently issued accounting standards As an emerging growth company, the Company has left open the opportunity to take advantage of the extended transition In August 2018, Financial Accounting Standard Board (“FASB”) issued ASU No. 2018-15 (“ASU 2018-15”), “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” |
Loss Per Share
Loss Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 2. Loss per share Basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the periods. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and is calculated using the treasury stock method for unvested shares. Common equivalent shares are excluded from the calculation in the loss periods as their effects would be anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except share data) 2020 2019 2020 2019 Numerator: Net loss $ (925 ) $ (992 ) $ (4,938 ) $ (6,220 ) Denominator: Weighted average shares outstanding - Basic and diluted (1) 12,072,716 10,917,673 11,758,907 10,497,036 Loss per share: Basic and diluted: $ (0.08 ) $ (0.09 ) $ (0.42 ) $ (0.59 ) (1) A total of 1,529,657 unvested restricted stock units (“RSUs”) have been excluded from the diluted loss per share for the three and nine months ended September 30, 2020, and 1,954,910 RSUs have been excluded for the three and nine months ended September 30, 2019, as the impact is anti-dilutive. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets, Net | 3. Intangible assets, net Intangible assets other than goodwill consist of the following: September 30, 2020 December 31, 2019 (In thousands) Amortization Period Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Software developed for internal use 5-10 years $ 35,480 $ (8,503 ) $ 26,977 $ 29,690 $ (5,656 ) $ 24,034 The gross amount associated with software developed for internal use represents capitalized costs of internally-developed software, including eligible salaries and staff benefits, share-based compensation, travel expenses incurred by relevant employees, and other relevant costs. Amortization expenses of $1,063 and $689 for the three months ended September 30, 2020 and 2019, respectively, and $2,847 and $1,860 for the nine months ended September 30, 2020 and 2019, respectively, were included in depreciation and amortization expense. As of September 30, 2020, intangible assets of $2,635, included in the gross amounts of software developed for internal use, have not started amortization, as they are not ready for their intended use. The Company capitalized costs of software developed for internal use of $1,646 and $1,708 during the three months ended September 30, 2020 and 2019, respectively, and $5,790 and $4,939 during the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020, estimated amortization expense related to the Company’s intangible assets for the remainder of 2020 through 2025 and thereafter are as follows: (In thousands) Year September 30, 2020 Remainder of 2020 $ 1,095 2021 4,776 2022 4,898 2023 4,821 2024 4,215 2025 and thereafter 7,172 Total $ 26,977 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill Disclosure [Abstract] | |
Goodwill | 4. Goodwill Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. As of September 30, 2020 and December 31, 2019, the balance of goodwill of $5,227 was as a result of the acquisition of Interactive Data, LLC, a wholly-owned subsidiary of red violet, effective on October 2, 2014. In accordance with ASC 350, “Intangibles - Goodwill and Other,” For the periods ended September 30, 2020 and 2019, no goodwill impairment charges were recorded. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 5. Revenue recognition On January 1, 2018, the Company adopted ASC 606, “Revenue from Contracts with Customers,” Available within Topic 606, the Company has applied the portfolio approach practical expedient in accounting for customer revenue as one collective group, rather than individual contracts. Based on the Company’s historical knowledge of the contracts contained in this portfolio and the similar nature and characteristics of the customers, the Company has concluded the financial statement effects are not materially different than if accounting for revenue on a contract by contract basis. Revenue is recognized over a period of time since the performance obligation is delivered in a series. The Company’s customers simultaneously receive and consume the benefits provided by the Company’s performance as and when provided. Furthermore, the Company has elected the “right to invoice” practical expedient, available within Topic 606, as its measure of progress, since it has a right to payment from a customer in an amount that corresponds directly with the value of its performance completed-to-date. The Company's revenue arrangements do not contain significant financing components. For the three months ended September 30, 2020 and 2019, 68% and 66% of total revenue was attributable to customers with pricing contracts, respectively, versus 32% and 34% attributable to transactional customers, respectively. For the nine months ended September 30, 2020 and 2019, 71% and 65% of total revenue was attributable to customers with pricing contracts, respectively, versus 29% and 35% attributable to transactional customers, respectively. Pricing contracts are generally annual contracts or longer, with auto renewal. If a customer pays consideration before the Company transfers services to the customer, those amounts are classified as deferred revenue. As of September 30, 2020 and December 31, 2019, the balance of deferred revenue was $180 and $128, respectively, all of which is expected to be realized in the next 12 months. In relation to the deferred revenue balance as of December 31, 2019, $0 and $128 was recognized into revenue during the three and nine months ended September 30, 2020, respectively. As of September 30, 2020, $2,626 of revenue is expected to be recognized in the future for outstanding performance obligations, primarily related to pricing contracts that have a term of more than 12 months. $602 of revenue will be recognized in the remainder of 2020, $1,860 in 2021, $138 in 2022, and $26 in 2023 and thereafter. The actual timing of recognition may vary due to factors outside of the Company’s control. The Company excludes variable consideration related entirely to wholly unsatisfied performance obligations and contracts and recognizes such variable consideration based upon the right to invoice the customer. Sales commissions are incurred and recorded on an ongoing basis over the term of the customer relationship. These costs are recorded in sales and marketing expenses. In addition, the Company elected the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income taxes The Company is subject to federal and state income taxes in the United States. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter. For the three and nine months ended September 30, 2020 and 2019, the Company’s effective income tax rate was 0%, differing from the statutory federal income tax rate of 21 The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the Company’s financial statements. The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. All of the Company’s income tax filings since 2017 remain open for tax examinations. The Company does not have any unrecognized tax benefits as of September 30, 2020 and December 31, 2019. |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Common Stock and Treasury Stock | 7. Common stock and treasury stock Common stock As of September 30, 2020 and December 31, 2019, the number of issued shares of common stock was 12,371,665 and 11,657,912, respectively, which included shares of treasury stock of 224,755 and 103,147, respectively. The change in the number of issued shares of common stock was due to an aggregate of 713,753 shares of common stock issued as a result of the vesting of RSUs. Treasury stock As of September 30, 2020 and December 31, 2019, the Company held 224,755 and 103,147 shares of treasury stock, with a cost of $3,083 and $1,255, respectively, as a result of the shares withheld to pay withholding taxes upon the vesting of RSUs. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | 8. Share-based compensation On March 22, 2018, the board of directors of the Company and Fluent, Inc., in its capacity as sole stockholder of the Company at that time, approved the Red Violet, Inc. 2018 Stock Incentive Plan (the “2018 Plan”). A total of 3,000,000 shares of common stock were authorized to be issued under the 2018 Plan. The primary purpose of the 2018 Plan is to attract, retain, reward and motivate certain individuals by providing them with an opportunity to acquire or increase a proprietary interest in the Company and to incentivize them to expend maximum effort for the growth and success of the Company, so as to strengthen the mutuality of the interests between such individuals and the stockholders of the Company. On June 3, 2020, the Company’s stockholders approved an amendment to the 2018 Plan to increase the number of shares of common stock authorized for issuance under the 2018 Plan from 3,000,000 shares to 4,500,000 shares . As of September 30, 2020, there were 1,525,624 shares of common stock available for future issuance under the 2018 Plan, as amended. To date, all stock incentives issued under the 2018 Plan have been in the form of RSUs. RSUs granted under the 2018 Plan vest and settle upon the satisfaction of a time-based condition or with both time- and performance-based conditions. The time-based condition for these awards is generally satisfied over three or four years with annual vesting. Details of unvested RSU activity during the nine months ended September 30, 2020 were as follows: Number of units Weighted average grant-date fair value Unvested as of December 31, 2019 2,237,827 $ 8.88 Granted 21,500 $ 20.67 Vested and delivered (592,145 ) $ 7.79 Withheld as treasury stock (121,608 ) $ 7.72 Vested not delivered (8,417 ) $ 11.25 Forfeited (7,500 ) $ 12.11 Unvested as of September 30, 2020 1,529,657 $ 9.52 As of September 30, 2020, unrecognized share-based compensation expense associated with the granted RSUs amounted to $7,969, which is expected to be recognized over a remaining weighted average period of 1.6 years. Share-based compensation was allocated to the following accounts in the condensed consolidated financial statements for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Sales and marketing expenses $ 151 $ 114 $ 460 $ 290 General and administrative expenses 1,702 1,293 5,956 5,000 Share-based compensation expense 1,853 1,407 6,416 5,290 Capitalized in intangible assets 424 208 1,480 526 Total $ 2,277 $ 1,615 $ 7,896 $ 5,816 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related party transactions Services Agreement On August 7, 2018, the Company entered into a services agreement with Mr. Michael Brauser (the “Consultant”), a greater than 10% stockholder, pursuant to which, the Consultant will be providing recommendations on organizational and capital structure, future financing needs and future acquisitions or strategic transactions (“Services Agreement”), for a term of one year, automatically renewing for additional one-year |
Long-term loan
Long-term loan | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term loan | 10. Long-term loan On May 5, 2020, the Company received funding under a promissory note dated May 5, 2020 (the “Promissory Note”) evidencing an unsecured non-recourse loan in the principal amount of $2,152 under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (the “Loan”). The Loan to the Company was made through Legacy Bank of Florida (the “Lender”). Long-term loan as of September 30, 2020 consists of the following: (In thousands) September 30, 2020 Principal amount $ 2,152 Included in condensed consolidated balance sheet: Current portion of long-term loan $ 1,059 Long-term loan (non-current) 1,093 $ 2,152 The Loan has a two-year The Loan may be forgiven partially or fully if the Loan proceeds are used for covered payroll, rent and utility costs incurred during the 24-week period that commenced on the date of funding (the “Covered Period”), and if at least 60% of the proceeds are used for covered payroll costs. Any forgiveness of the Loan will be subject to approval by the SBA and the Lender. The Company will be required to apply for such forgiveness within 10 months after the Covered Period. Because the Loan exceeds $2,000, the Company anticipates the U.S. Department of Treasury will audit the loan. Although the Company used the proceeds of the Loan for such covered purposes and intends to apply for forgiveness by the end of December 2020, it can provide no assurance that the Company will obtain forgiveness of the Loan in whole or in part. As the Loan was effective in May 2020, the fair value of the Loan approximates its carrying amount as of September 30, 2020. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 11. Leases On January 1, 2019, the Company adopted Leases (Topic 842) using the modified retrospective method applied to all leases existing at the date of initial application. The Company elected the practical expedients to not reassess whether any existing contracts are or contain leases, not reassess the lease classification for any existing leases, and not reassess initial direct costs for any existing leases, upon the adoption of Leases (Topic 842). The Company leases its corporate headquarters of 21,020 rentable square feet in accordance with a non-cancelable 89-month operating lease agreement as amended and effective in January 2017. The Company also leases an additional office space of 6,003 rentable square feet in accordance with a non-cancellable 90-month operating lease agreement entered into in April 2017, with an option to extend for additional 60 months. The extension option is not included in the determination of the lease term as it is not reasonably certain to be exercised. For the three and nine months ended September 30, 2020 and 2019, a summary of the Company’s lease information is shown below: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Lease cost: Operating lease costs $ 168 $ 168 $ 504 $ 504 Other information: Cash paid for operating leases $ 177 $ 172 $ 527 $ 513 Right-of-use assets obtained in exchange for operating lease liabilities $ - $ - $ - $ 3,042 Weighted average discount rate for operating leases (1) - - - 8 % (1) The Company used 8.0%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the leases to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of January 1, 2019, the application date. As of September 30, 2020, the weighted average remaining operating lease term was 4.1 years. As of September 30, 2020, scheduled future maturities and present value of the operating lease liabilities are as follows: (In thousands) Year September 30, 2020 Remainder of 2020 $ 178 2021 724 2022 743 2023 765 2024 542 2025 and thereafter 77 Total maturities $ 3,029 Present value included in condensed consolidated balance sheet: Current portion of operating lease liabilities $ 536 Noncurrent operating lease liabilities 2,052 Total operating lease liabilities $ 2,588 Difference between the maturities and the present value of operating lease liabilities $ 441 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and contingencies (a) Capital commitment The Company incurred data costs of $2,093 and $1,946 for the three months ended September 30, 2020 and 2019, respectively, and $6,396 and $5,501 for the nine months ended September 30, 2020 and 2019, respectively, under certain data licensing agreements. As of September 30, 2020, material capital commitments under certain data licensing agreements were $9,012, shown as follows: (In thousands) Year September 30, 2020 Remainder of 2020 $ 1,745 2021 5,615 2022 1,652 Total $ 9,012 (b) Contingencies The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and it discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for the Company’s financial statements to not be misleading. To estimate whether a loss contingency should be accrued by a charge to income, the Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of the loss. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated . The Company may be involved in litigation from time to time in the ordinary course of business. The Company does not believe that the ultimate resolution of any such matters will have a material adverse effect on its business, financial condition, results of operations or cash flows. However, the results of such matters cannot be predicted with certainty and the Company cannot assure you that the ultimate resolution of any legal or administrative proceeding or dispute will not have a material adverse effect on its business, financial condition, results of operations and cash flows. (c) Covid-19 update In December 2019, a novel strain of coronavirus, now known as Covid-19, was reported in Wuhan, China and has since extensively impacted the global health and economic environment. In March 2020, the World Health Organization characterized Covid-19 as a pandemic. The Company has taken numerous steps, and will continue to take further actions as appropriate, in its approach to minimizing the impact of the Covid-19 pandemic on the Company’s business, results of operations and financial performance. To ensure the health and well-being of its employees, beginning in March 2020, the Company instructed employees at its offices to work from home on a temporary basis. Starting in the second quarter of 2020, the Company implemented cost containment strategies across all areas of the organization, including continued curtailment of Company travel and partnering with suppliers, landlords and vendors for price concessions and payment deferrals during this interim period. As a result of preventative and protective actions taken by federal, state and local governments, including the implementation of stay-at-home orders and social distancing policies which resulted in significantly reduced commercial activity, and certain temporary government-imposed moratoria on collection customers’ activities, the Company experienced reduced transaction volume in the second and third quarters of 2020. Transaction volume returned to pre-Covid levels by the end of the third quarter 2020, except for collection customer volume, which was down $1.0 million, primarily attributable to the Company’s idiVERIFIED service, which is an ancillary collections market offering that is purely transactional and of a lower margin profile, for the three months ended September 30, 2020, compared to the three months ended March 31, 2020. The Company expects collection customer transaction volume, including that of its idiVERIFIED service, to return to pre-Covid levels in the first half of 2021. During the second and third quarters of 2020, the Company took a proactive customer-centric approach working with customers who were impacted by Covid-19. Customers who had minimum contractual commitments and requested concessions because they were temporarily unable to meet their minimum contractual commitments as a result of Covid-19 were granted reductions, or eliminations where applicable, of minimums on a month-to-month basis. The end date of the customer’s agreement was extended by one month for each month of the temporary concession. During the second quarter of 2020, the Company provided concessions to a total of 152 customers, representing a $342 reduction in minimum committed spend. During the third quarter of 2020, the Company provided concessions to a total of 22 customers, representing a $94 reduction in minimum committed spend. To further support the Company’s liquidity, beginning April 1, 2020, the Company elected, under Section 2302 of the CARES Act, to defer payment of the employer portion of Social Security payroll tax. Under the CARES Act, employers can forgo timely payment of the employer portion of Social Security taxes that would otherwise be due from March 27, 2020 through December 31, 2020, without penalty or interest charges. Employers must pay 50% of the deferred amount by December 31, 2021, and the remainder by December 31, 2022. On May 5, 2020, the Company received the Loan under the CARES Act as discussed in Note 10 above. The Company will continue to assess the CARES Act and other applicable government legislation aimed at assisting businesses during the Covid-19 pandemic. In accordance with best practices and guidance from the Centers for Disease Control and Prevention, the Company implemented protective safeguards, including daily temperature checks, mandatory wearing of masks, social distancing, plexiglass protective barriers, and an entire office HVAC UV-C system. The Company began its first phase of employees returning to the Boca Raton, Florida office in June 2020. The Company will continue to assess the need and timing of additional employees returning to the office. Given the dynamic nature of this health emergency, the full impact of the Covid-19 pandemic on the Company’s ongoing business, results of operations and overall financial performance cannot be reasonably estimated at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Preparation | (a) Basis of preparation The accompanying unaudited condensed consolidated financial statements of Red Violet, Inc. (“red violet” or the “Company”), a Delaware corporation, The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for any future interim periods or for the full year ending December 31, 2020. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Form 10-K”). The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date included in the 2019 Form 10-K, but does not include all disclosures required by GAAP. The Company has only one operating segment, as defined by Accounting Standards Codification (“ASC”) 280, “ Segment Reporting Principles of consolidation The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions among the Company and its subsidiaries have been eliminated upon consolidation . |
Recently Issued Accounting Standards | (b) Recently issued accounting standards As an emerging growth company, the Company has left open the opportunity to take advantage of the extended transition In August 2018, Financial Accounting Standard Board (“FASB”) issued ASU No. 2018-15 (“ASU 2018-15”), “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” |
Loss Per Share (Tables)
Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss Per Share | Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except share data) 2020 2019 2020 2019 Numerator: Net loss $ (925 ) $ (992 ) $ (4,938 ) $ (6,220 ) Denominator: Weighted average shares outstanding - Basic and diluted (1) 12,072,716 10,917,673 11,758,907 10,497,036 Loss per share: Basic and diluted: $ (0.08 ) $ (0.09 ) $ (0.42 ) $ (0.59 ) |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets Other than Goodwill | Intangible assets other than goodwill consist of the following: September 30, 2020 December 31, 2019 (In thousands) Amortization Period Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Software developed for internal use 5-10 years $ 35,480 $ (8,503 ) $ 26,977 $ 29,690 $ (5,656 ) $ 24,034 |
Schedule of Estimated Amortization Expense | As of September 30, 2020, estimated amortization expense related to the Company’s intangible assets for the remainder of 2020 through 2025 and thereafter are as follows: (In thousands) Year September 30, 2020 Remainder of 2020 $ 1,095 2021 4,776 2022 4,898 2023 4,821 2024 4,215 2025 and thereafter 7,172 Total $ 26,977 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Unvested Restricted Stock Units | Details of unvested RSU activity during the nine months ended September 30, 2020 were as follows: Number of units Weighted average grant-date fair value Unvested as of December 31, 2019 2,237,827 $ 8.88 Granted 21,500 $ 20.67 Vested and delivered (592,145 ) $ 7.79 Withheld as treasury stock (121,608 ) $ 7.72 Vested not delivered (8,417 ) $ 11.25 Forfeited (7,500 ) $ 12.11 Unvested as of September 30, 2020 1,529,657 $ 9.52 |
Summary of Allocated Share-based Compensation | Share-based compensation was allocated to the following accounts in the condensed consolidated financial statements for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Sales and marketing expenses $ 151 $ 114 $ 460 $ 290 General and administrative expenses 1,702 1,293 5,956 5,000 Share-based compensation expense 1,853 1,407 6,416 5,290 Capitalized in intangible assets 424 208 1,480 526 Total $ 2,277 $ 1,615 $ 7,896 $ 5,816 |
Long-term loan (Tables)
Long-term loan (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term loan | Long-term loan as of September 30, 2020 consists of the following: (In thousands) September 30, 2020 Principal amount $ 2,152 Included in condensed consolidated balance sheet: Current portion of long-term loan $ 1,059 Long-term loan (non-current) 1,093 $ 2,152 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Company's Lease Information | For the three and nine months ended September 30, 2020 and 2019, a summary of the Company’s lease information is shown below: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Lease cost: Operating lease costs $ 168 $ 168 $ 504 $ 504 Other information: Cash paid for operating leases $ 177 $ 172 $ 527 $ 513 Right-of-use assets obtained in exchange for operating lease liabilities $ - $ - $ - $ 3,042 Weighted average discount rate for operating leases (1) - - - 8 % (1) The Company used 8.0%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the leases to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of January 1, 2019, the application date. |
Scheduled Future Maturities and Present Value of Operating Lease Liabilities | As of September 30, 2020, scheduled future maturities and present value of the operating lease liabilities are as follows: (In thousands) Year September 30, 2020 Remainder of 2020 $ 178 2021 724 2022 743 2023 765 2024 542 2025 and thereafter 77 Total maturities $ 3,029 Present value included in condensed consolidated balance sheet: Current portion of operating lease liabilities $ 536 Noncurrent operating lease liabilities 2,052 Total operating lease liabilities $ 2,588 Difference between the maturities and the present value of operating lease liabilities $ 441 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Capital Payments under Certain Data Licensing Agreements | The Company incurred data costs of $2,093 and $1,946 for the three months ended September 30, 2020 and 2019, respectively, and $6,396 and $5,501 for the nine months ended September 30, 2020 and 2019, respectively, under certain data licensing agreements. As of September 30, 2020, material capital commitments under certain data licensing agreements were $9,012, shown as follows: (In thousands) Year September 30, 2020 Remainder of 2020 $ 1,745 2021 5,615 2022 1,652 Total $ 9,012 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020Segment | |
Accounting Policies [Abstract] | |
Operating segments | 1 |
Loss Per Share - Schedule of Ba
Loss Per Share - Schedule of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (925) | $ (992) | $ (4,938) | $ (6,220) |
Weighted average shares outstanding - Basic and diluted | 12,072,716 | 10,917,673 | 11,758,907 | 10,497,036 |
Loss per share: | ||||
Basic and diluted: | $ (0.08) | $ (0.09) | $ (0.42) | $ (0.59) |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock Units (RSUs) | ||||
Earnings Per Share [Line Items] | ||||
Shares excluded from the diluted loss per share calculation | 1,529,657 | 1,954,910 | 1,529,657 | 1,954,910 |
Intangible Assets, Net - Intang
Intangible Assets, Net - Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible Assets, Net | $ 26,977 | $ 24,034 |
Software Developed for Internal Use | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Amount | 35,480 | 29,690 |
Intangible Assets, Accumulated Amortization | (8,503) | (5,656) |
Intangible Assets, Net | $ 26,977 | $ 24,034 |
Software Developed for Internal Use | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Software Developed for Internal Use | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expenses | $ 1,063 | $ 689 | $ 2,847 | $ 1,860 |
Internally-developed Software | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Intangible assets that have not started amortization | 2,635 | 2,635 | ||
Capitalized costs of internally-developed software | $ 1,646 | $ 1,708 | $ 5,790 | $ 4,939 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Remainder of 2020 | $ 1,095 | |
2021 | 4,776 | |
2022 | 4,898 | |
2023 | 4,821 | |
2024 | 4,215 | |
2025 and thereafter | 7,172 | |
Intangible Assets, Net | $ 26,977 | $ 24,034 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill Disclosure [Abstract] | ||
Goodwill | $ 5,227,000 | $ 5,227,000 |
Date of annual goodwill impairment test | October 1 | |
Goodwill impairment charges | $ 0 | $ 0 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue Recognition [Line Items] | |||||
Deferred revenue | $ 180 | $ 180 | $ 128 | ||
Deferred revenue realization period | 12 months | ||||
Revenue recognized, previously reported as deferred | 0 | $ 128 | |||
Estimated revenue expected to be recognized in the future | $ 2,626 | $ 2,626 | |||
Period over which subscription contract terms exceed | 12 months | ||||
Customers With Pricing Contracts | |||||
Revenue Recognition [Line Items] | |||||
Percentage of Revenue | 68.00% | 66.00% | 71.00% | 65.00% | |
Transactional Customers | |||||
Revenue Recognition [Line Items] | |||||
Percentage of Revenue | 32.00% | 34.00% | 29.00% | 35.00% |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Details 1) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Revenue Recognition [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 2,626 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | |
Revenue Recognition [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 602 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue For Future Outstanding Performance Obligations | $ 2,626 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Recognition [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 1,860 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Recognition [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 138 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Recognition [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 26 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate, percentage | 0.00% | 0.00% | 0.00% | 0.00% | |
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Percentage of tax benefits likelihood of being realized upon settlement of tax authority | greater than 50% | ||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Common Stock and Treasury Sto_2
Common Stock and Treasury Stock - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Common stock, shares issued | 12,371,665 | 11,657,912 |
Treasury Stock, issued | 224,755 | 103,147 |
Treasury Stock, Value | $ 3,083 | $ 1,255 |
Treasury Stock, Shares | 224,755 | 103,147 |
Common Stock | ||
Vesting of restricted stock units, Shares | 713,753 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Jun. 03, 2020 | Mar. 22, 2018 | |
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation costs in respect of granted RSUs | $ 7,969 | ||
Unrecognized share-based compensation remaining weighted average period | 1 year 7 months 6 days | ||
2018 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock authorized | 4,500,000 | 3,000,000 | |
Common stock available for future issuance | 1,525,624 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Unvested RSU Activity (Detail) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested, Number of units Beginning balance | shares | 2,237,827 |
Granted, Number of units | shares | 21,500 |
Vested and delivered, Number of units | shares | (592,145) |
Withheld as treasury stock, Number of units | shares | (121,608) |
Vested not delivered, Number of units | shares | (8,417) |
Forfeited, Number of units | shares | (7,500) |
Unvested, Number of units Ending balance | shares | 1,529,657 |
Unvested, Weighted average grant-date fair value, Beginning balance | $ / shares | $ 8.88 |
Granted, Weighted average grant-date fair value | $ / shares | 20.67 |
Vested and delivered, Weighted average grant-date fair value | $ / shares | 7.79 |
Withheld as treasury stock, Weighted average grant-date fair value | $ / shares | 7.72 |
Vested not delivered, Weighted average grant-date fair value | $ / shares | 11.25 |
Forfeited, Weighted average grant-date fair value | $ / shares | 12.11 |
Unvested, Weighted average grant-date fair value, Ending balance | $ / shares | $ 9.52 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Allocated Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based compensation recognized | ||||
Share-based compensation expense | $ 1,853 | $ 1,407 | $ 6,416 | $ 5,290 |
Capitalized in intangible assets | 424 | 208 | 1,480 | 526 |
Total | 2,277 | 1,615 | 7,896 | 5,816 |
Sales and Marketing Expenses | ||||
Share-based compensation recognized | ||||
Share-based compensation expense | 151 | 114 | 460 | 290 |
General and Administrative Expenses | ||||
Share-based compensation recognized | ||||
Share-based compensation expense | $ 1,702 | $ 1,293 | $ 5,956 | $ 5,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Aug. 07, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Related Party Transaction [Line Items] | |||||
Share-based compensation expense | $ 1,853 | $ 1,407 | $ 6,416 | $ 5,290 | |
Services Agreement | Michael Brauser-Former Executive Chairman | |||||
Related Party Transaction [Line Items] | |||||
Related party stockholder, percent | 10.00% | ||||
Term of agreement, related party | 1 year | ||||
Renewal term of agreement, related party | 1 year | ||||
Consulting service fee monthly payment | $ 30 | ||||
Consulting service fee recognized amount | 90 | 90 | 270 | 270 | |
Services Agreement | Michael Brauser-Former Executive Chairman | Restricted Stock Units (RSUs) | |||||
Related Party Transaction [Line Items] | |||||
Share-based compensation expense | $ 343 | $ 343 | $ 1,022 | $ 1,458 |
Long-term loan - Additional Inf
Long-term loan - Additional Information (Details) - Promissory Notes - Cares Act - Legacy Bank Of Florida $ in Thousands | May 05, 2020USD ($) |
Debt Instrument [Line Items] | |
Unsecured non-recourse loan in the principal amount | $ 2,152 |
Term of loan | 2 years |
Loan maturity date | May 5, 2022 |
Loan Interest rate | 1.00% |
Debt Instrument, limit amount | $ 2,000 |
Minimum | |
Debt Instrument [Line Items] | |
Percentage of loan proceeds used for covered payroll costs | 60.00% |
Long-term loan - Schedule of Lo
Long-term loan - Schedule of Long-term loan (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
Principal amount | $ 2,152 |
Included in condensed consolidated balance sheet: | |
Current portion of long-term loan | 1,059 |
Long-term loan (non-current) | 1,093 |
Long-term loan, gross | $ 2,152 |
Leases - Additional Information
Leases - Additional Information (Details) - ft² | 3 Months Ended | |||
Mar. 31, 2020 | Sep. 30, 2020 | Apr. 30, 2017 | Jan. 31, 2017 | |
Leases [Abstract] | ||||
Operating leases rentable square feet | 6,003 | 21,020 | ||
Operating lease agreement | 90 months | 89 months | ||
Operating lease, existence of option to extend | true | |||
Operating lease, extended term | 60 months | |||
Weighted average remaining operating lease | 4 years 1 month 6 days |
Leases - Summary of Company's L
Leases - Summary of Company's Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | |||
Lease cost: | |||||||
Operating lease costs | $ 168 | $ 168 | $ 504 | $ 504 | |||
Other information: | |||||||
Cash paid for operating leases | $ 177 | $ 172 | $ 527 | 513 | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 3,042 | ||||||
Weighted average discount rate for operating leases | 8.00% | [1] | 8.00% | [1] | 8.00% | ||
[1] | The Company used 8.0%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the leases to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of January 1, 2019, the application date. |
Leases - Summary of Company's_2
Leases - Summary of Company's Lease Information (Paranthetical) (Details) | Sep. 30, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Weighted average discount rate for operating leases | 8.00% | [1] | 8.00% |
[1] | The Company used 8.0%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the leases to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of January 1, 2019, the application date. |
Leases - Scheduled Future Matur
Leases - Scheduled Future Maturities and Present Value of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Remainder of 2020 | $ 178 | |
2021 | 724 | |
2022 | 743 | |
2023 | 765 | |
2024 | 542 | |
2025 and thereafter | 77 | |
Total maturities | 3,029 | |
Present value included in condensed consolidated balance sheet: | ||
Current portion of operating lease liabilities | 536 | $ 491 |
Noncurrent operating lease liabilities | 2,052 | $ 2,459 |
Total operating lease liabilities | 2,588 | |
Difference between the maturities and the present value of operating lease liabilities | $ 441 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)Customer | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Customer | Sep. 30, 2019USD ($) | Jun. 30, 2020USD ($)Customer | |
Commitments And Contingencies Disclosure [Abstract] | |||||
Data cost incurred | $ 2,093 | $ 1,946 | $ 6,396 | $ 5,501 | |
Total capital commitment under certain data licensing agreements | 9,012 | 9,012 | |||
Decrease for collection customers activities | (1,000) | ||||
Loss contingency, concessions granted | $ 94 | $ 94 | $ 342 | ||
Number Of Customers | Customer | 22 | 22 | 152 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Capital Payments under Certain Data Licensing Agreements (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remainder of 2020 | $ 1,745 |
2021 | 5,615 |
2022 | 1,652 |
Total | $ 9,012 |