Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the consolidated accounts of AvePoint, Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Recently Adopted Accounting Guidance In February 2016, FASB ASU 2016 02, Leases ASC 2017 13, 2018 10, 2018 11, 2018 20, 2019 01, 2019 10, 2020 02, 2020 05 2021 05 ASC 842 842 January 1, 2022, not 842 ROU The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward its historical assessments of whether a contract contains a lease, lease classification and initial direct costs. The Company elected not 842: not ASC 840 840 12 The adoption of the new standard resulted in the recognition of ROU assets of $13.9 million, net of previously recognized deferred rent balance of $0.6 million and total lease liabilities of $14.5 million, including a current liability of $3.6 million, and corresponding deferred tax assets and liabilities, on the Company’s consolidated balance sheet as of January 1, 2022. no In October 2021, No. 2021 08, ASC 805 ASC 606 December 15, 2022, not January 1, 2022. not In August 2020, 2020 06, 470 20 815 40 2020 06” 2020 06 January 1, 2022. not Comparative Data Certain amounts from prior periods have been presented separately or have been grouped to conform to the current period presentation, including: ● The reclassification of long-term unbilled receivables to be included in other assets on the consolidated balance sheets as of December 31, 2021; ● The reclassification of long-term unbilled receivables to be included in deferred contracts and other assets on the consolidated statements of cash flows for the years ended December 31, 2021 2020; ● The reclassification of provision for doubtful accounts and loss (gain) on disposal of property and equipment to be included in other on the consolidated statements of cash flows for the years ended December 31, 2021 2020; ● The payments of transaction fees to be included in proceeds from recapitalization of Apex shares on the consolidated statements of cash flows for the year ended December 31, 2021. Business Combination When we consummate a business combination, the assets acquired, and the liabilities assumed are recognized separately from goodwill at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of the fair value of consideration transferred over the acquisition date fair value of the net identifiable assets acquired. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may one 2022 not not Goodwill Goodwill represents the excess of the fair value of consideration transferred over the fair value of net identifiable assets acquired. We review goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not first not not no During the year ended December 31, 2022, not December 31, 2021 December 31, 2020. Intangible Assets, net Intangible assets primarily consist of customer related assets and acquired software and technology. Typical customer related assets include order backlogs and customer relationships. Intangible assets that have finite useful lives are amortized over their useful lives on a straight-line basis, which range from one ten may may Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. We base our estimates and assumptions on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The amounts of assets and liabilities reported in our consolidated balance sheets and the amounts of revenue and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not may Foreign Currency The Company has foreign operations where the functional currency has been determined to be the local currency, in accordance with FASB ASC 830, December 31, 2022, December 31, 2021 2020, Cash and Cash Equivalents The Company maintains cash with several high credit-quality financial institutions. The Company considers all investments available with original maturities of three not not December 31, 2022 2021, Short-Term Investments Short-term investments consist mainly of certificates of deposit held by financial institutions which have an initial maturity of greater than three one Allowance for Doubtful Accounts The Company evaluates the collectability of its accounts receivable based on a combination of factors. Where we are aware of circumstances that may Prepaid Expenses and other Current Assets The company recognizes payments made for services to be received in the near future as prepaid expenses and other current assets. Prepaid expenses and other current assets consist primarily of payments related to insurance premium, prepaid rent, prepaid subscriptions, and other costs. The prepaid expense balance as of December 31, 2022 December 31, 2021 Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over the shorter of their estimated useful lives or related contract terms beginning in the year the asset was placed into service. We depreciate computer equipment and software generally over a period of three seven forty five Normal repair and maintenance costs are expensed as incurred. We write off depreciated assets that are no We evaluate long-lived assets, which include leasehold improvements and equipment subject to depreciation and amortization, for impairment whenever events or changes in business circumstances indicate that the carrying value of an asset may not There were no impairment charges recognized during the years ended December 31, 2022, 2021, 2020 We evaluate the portion of depreciation and amortization expense attributable to cost of revenue based on organizational headcount directly attributable to the generation of revenue. Based on this evaluation, we have determined that depreciation and amortization attributable to cost of revenue is not Deferred Contract Costs We defer sales commissions earned by our sales force that are considered to be incremental and recoverable costs of obtaining or renewing SaaS, term license and support, service, perpetual license and maintenance contracts. We have structured commissions plans such that the commission rate paid on renewal contracts are less than those paid on the initial contract; therefore, it is determined that the renewal commissions are not December 31, 2022, 2021, 2020. Amortization of deferred contract costs of $13.4 million, $9.5 million, and $10.5 million for the years ended December 31, 2022, 2021, 2020, December 31, 2022 2021, Software Development Costs Costs incurred in the development of new software products and enhancements to existing software products to be accounted for under software revenue recognition guidance are accounted for in accordance with ASC 985 20, 985 20. 985 20. 985 20. 2002. five 985 20 December 31, 2022 2021. We account for costs to develop or obtain internal-use software and implementation costs incurred in hosting arrangements in accordance with ASC 350 40, 350 40. 350 40. three not Revenue Recognition We derive revenue from four The following table presents our revenue by source: For the Year Ended December 31, 2022 2021 2020 (in thousands) Revenue: SaaS $ 117,180 $ 85,580 $ 52,074 Term license and support 57,214 50,970 38,949 Services 41,283 31,919 34,140 Maintenance 15,868 21,022 23,462 Perpetual license 794 2,418 2,908 Total revenue $ 232,339 191,909 $ 151,533 Term license and perpetual license revenue recognized at point in time was $40.0 million, $39.7 million, and $32.4 million for the years ended December 31, 2022, 2021, 2020, Our sources of revenue mainly include: ● SaaS and term license and support revenue includes revenue from the sale of SaaS and term license and support, versions of our software and related customer support. SaaS revenue is recognized ratably over the term of the contract. Term license revenue includes distinct on-premises license and support performance obligations. The license is generally recognized upfront at the point in time when the software is made available to the customer to download and use, and the support is recognized ratably over the term of the contract. ● Perpetual license revenue is recognized upfront upon delivery of the licensed product and/or the utility that enables the customer to access authorization keys, provided that an enforceable contract has been received. Typically, our perpetual licenses are sold with post-contract support (PCS), which includes unspecified technical enhancements and customer support. Revenue from PCS is classified as maintenance revenue and is recognized ratably over the term of the contract, which is typically one ● Services revenue includes revenue derived primarily from the implementation of software, training, consulting, and migrations. We also offer license customization and managed services. Services revenue from implementation, training, consulting, migration, and license customization is recognized by applying a measure of progress, such as labor hours to determine the percentage of completion of each contract. Services revenue from managed services is recognized ratably on a straight-line basis over the contract term. In rare cases when the software and the related when-and-if available updates are critical to the combined utility of the software, the Company has determined this to be one ASC 606 606, ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, the contractual performance obligations are satisfied. The timing of revenue recognition may twelve 30 Total deferred revenue as of December 31, 2021, December 31, 2022. The opening and closing balances of the Company’s accounts receivable, net, deferred revenue and deferred contract costs are as follows: Accounts Deferred Deferred (in thousands) Opening (January 1, 2021) $ 53,749 $ 74,688 $ 31,943 Closing (December 31, 2021) 61,335 82,332 38,926 Increase/(decrease) 7,586 7,644 6,983 Opening (January 1, 2022) $ 61,335 $ 82,332 $ 38,926 Closing (December 31, 2022) 73,348 101,490 48,553 Increase/(decrease) 12,013 19,158 9,627 ( 1 Our revenue arrangements generally include standard warranty or service level provisions that its arrangements will perform and operate in all material respects as defined in the respective agreements, the financial impacts of which have historically been and are expected to continue to be insignificant. Our arrangements generally do not Many of our contracts include multiple performance obligations. Judgment is required in determining whether each performance obligation is distinct. Our products and services generally do not not SSP We use judgment in determining the SSP for products and services. For substantially all performance obligations except term licenses, we are able to establish the SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. We typically establish an SSP range for our products and services which is reassessed on a periodic basis or when facts and circumstances change. Term licenses are sold only as a bundled arrangement that includes the rights to a term license and support. In determining the SSP of license and support in a term license arrangement we apply observable inputs using the value relationship between support and term license, the value relationship between support and perpetual licenses, the average economic life of our products, software renewal rates and the price of the bundled arrangement in relation to the perpetual licensing approach. Using a combination of the relative fair value method or the residual value method, the SSP of the performance obligations in an arrangement is allocated to each performance obligation within a sales arrangement. As of December 31, 2022, twelve We utilize indirect sales channels which utilize Channel Partners. These deals are executed in one two 1. Channel Partner as Customer In the first first 2. End User as Customer In the second second second second Stock-Based Compensation Stock-based compensation represents the cost related to stock-based awards granted to employees. To date, we have issued both stock options and restricted stock units (“ RSUs We estimate the fair value of stock options using the Black-Scholes valuation model. The Black-Scholes model requires highly subjective assumptions in order to derive the inputs necessary to the calculate the fair value of stock options. To estimate the expected term of stock options, the Company considered contractual terms of the options, including the vesting and expiration periods, as well as historical option exercise data and current market conditions to determine an estimated expected term. The Company’s historical experience is too limited to be able to reasonably estimate expected term. Expected volatility is based on historical volatility of a group of peer entities. Dividend yields are based upon historical dividend yields. Risk-free interest rates are based on the implied yields currently available on U.S. Treasury zero Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the difference between financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize liabilities for uncertain tax positions taken or expected to be taken in income tax returns. Accrued interest and penalties related to unrecognized tax benefits are recognized as part of the provision for income taxes. Judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and unrecognize tax benefits. In determining the need for a valuation allowance, the historical and projected financial performance of the operation that is recording a net deferred tax asset is considered along with any other pertinent information. We file income tax returns in the U.S. federal, various states and foreign jurisdictions. The tax years 2018 2021 2012 2021 Redeemable Noncontrolling Interest As of December 31, 2022 2021, EduTech AEPL PTE. LTD. ( AEPL ) As part of AEPL’s investment in EduTech, the Company granted AEPL a put option which allows AEPL to cause the Company to repurchase AEPL’s shares in EduTech at any time between December 24, 2022, December 24, 2023, December 31, 2022 2021, I-Access Solutions Pte. Ltd. ( I-Access ) On February 18, 2022, ( I-Access Closing Date January 31, 2022, ( Share Purchase Agreement December 31, 2022, 3 Emerging Growth Company The Company is considered an emerging growth company. Section 102 1 not not not Recent Accounting Pronouncements In January 2016, 2016 13, not 2020 02 December 15, 2022. not While we generally expect the financial records to be impacted by the requirements highlighted above, we cannot reasonably estimate the impact that adoption of the ASUs referenced in this announcement is expected to have on the financial statements at this time. |