Science 37 (SNCE) 10-Q 8 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-39727
Entity Registrant Name	SCIENCE 37 HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-4278203
Entity Address, Address Line One	800 Park Offices Drive
Entity Address, Address Line Two	Suite 3606
Entity Address, City or Town	Research Triangle Park
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27709
City Area Code	984
Local Phone Number	377-3737
Title of 12(b) Security	Shares of Common Stock, $0.0001 par value per share
Trading Symbol	SNCE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		117,111,905
Entity Central Index Key	0001819113
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 65,003	$ 108,091
Accounts receivable and unbilled services, net	14,832	10,992
Prepaid expenses and other current assets	6,921	7,121
Total current assets	86,756	126,204
Other assets	200	244
Total assets	86,956	126,448
Current liabilities:
Accounts payable	5,955	7,206
Accrued expenses and other liabilities	10,002	11,364
Deferred revenue	2,840	4,606
Total current liabilities	18,797	23,176
Non-current liabilities:
Deferred revenue	4,149	3,654
Operating lease liabilities	392	716
Commissions payable	1,300	1,336
Other long-term liabilities	71	180
Total liabilities	24,709	29,062
Commitments and Contingencies (Note 11)
Redeemable convertible preferred stock:
Redeemable convertible preferred stock, $0.0001 par value; 100,000,000 shares authorized, 0 issued and outstanding at June 30, 2023 and December 31, 2022, respectively	0	0
Stockholders’ equity:
Common stock, $0.0001 par value; 400,000,000 shares authorized, 117,107,326 and 116,432,029 issued and outstanding at June 30, 2023 and December 31, 2022, respectively	12	12
Additional paid-in capital	359,326	350,247
Accumulated other comprehensive income	215	193
Accumulated deficit	(297,306)	(253,066)
Total stockholders’ equity	62,247	97,386
Total liabilities, preferred stock and stockholders’ equity	$ 86,956	$ 126,448

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Redeemable convertible preferred stock:
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Stockholders’ equity:
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	117,107,326	116,432,029
Common stock, shares outstanding (in shares)	117,107,326	116,432,029

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Revenue	$ 15,351,000	$ 19,275,000	$ 29,437,000	$ 37,961,000
Operating expenses:
Cost of revenue (exclusive of depreciation and amortization)	9,964,000	13,842,000	21,074,000	29,828,000
Selling, general and administrative	16,593,000	28,183,000	37,073,000	58,337,000
Impairment of long-lived assets	5,679,000	0	13,480,000	0
Depreciation and amortization	143,000	4,230,000	357,000	7,699,000
Restructuring costs	3,373,000	0	3,602,000	0
Total operating expenses	35,752,000	46,255,000	75,586,000	95,864,000
Loss from operations	(20,401,000)	(26,980,000)	(46,149,000)	(57,903,000)
Other income (expense):
Interest income	813,000	95,000	1,743,000	189,000
Sublease income	33,000	240,000	65,000	479,000
Change in fair value of earn-out liability	0	20,900,000	110,000	96,400,000
Other income (expense), net	(24,000)	(88,000)	25,000	(105,000)
Total other income (expense), net	822,000	21,147,000	1,943,000	96,963,000
(Loss) income before income taxes	(19,579,000)	(5,833,000)	(44,206,000)	39,060,000
Income tax expense (benefit)	0	0	0	(1,000)
Net (loss) income	$ (19,579,000)	$ (5,833,000)	$ (44,206,000)	$ 39,061,000
(Loss) earnings per share:
Basic (in dollars per share)	$ (0.17)	$ (0.05)	$ (0.38)	$ 0.34
Diluted (in dollars per share)	$ (0.17)	$ (0.05)	$ (0.38)	$ 0.31
Weighted average common shares outstanding:
Basic (in shares)	116,919	115,995	116,734	115,693
Diluted (in shares)	116,919	115,995	116,734	126,185
Comprehensive (loss) income
Net (loss) income	$ (19,579,000)	$ (5,833,000)	$ (44,206,000)	$ 39,061,000
Foreign currency translation	9,000	27,000	22,000	27,000
Total comprehensive (loss) income	$ (19,570,000)	$ (5,806,000)	$ (44,184,000)	$ 39,088,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2021			114,991,000
Beginning balance at Dec. 31, 2021	$ 121,599		$ 11	$ 323,666	$ 0	$ (202,078)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	7,557			7,557
Proceeds from option exercises (shares)			723,000
Proceeds from option exercises	131		$ 1	130
Net (loss) income	44,894					44,894
Ending balance (in shares) at Mar. 31, 2022			115,714,000
Ending balance at Mar. 31, 2022	174,181		$ 12	331,353	0	(157,184)
Beginning balance (in shares) at Dec. 31, 2021			114,991,000
Beginning balance at Dec. 31, 2021	121,599		$ 11	323,666	0	(202,078)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	39,061
Foreign currency translation	27
Ending balance (in shares) at Jun. 30, 2022			116,252,000
Ending balance at Jun. 30, 2022	175,847		$ 12	338,825	27	(163,017)
Beginning balance (in shares) at Dec. 31, 2021			114,991,000
Beginning balance at Dec. 31, 2021	$ 121,599		$ 11	323,666	0	(202,078)
Ending balance (in shares) at Dec. 31, 2022	116,432,029		116,432,000
Ending balance at Dec. 31, 2022	$ 97,386	$ (33)	$ 12	350,247	193	(253,066)	$ (33)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Beginning balance (in shares) at Mar. 31, 2022			115,714,000
Beginning balance at Mar. 31, 2022	$ 174,181		$ 12	331,353	0	(157,184)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	7,103			7,103
Proceeds from option exercises (shares)			538,000
Proceeds from option exercises	369		$ 0	369
Net (loss) income	(5,833)					(5,833)
Foreign currency translation	27				27
Ending balance (in shares) at Jun. 30, 2022			116,252,000
Ending balance at Jun. 30, 2022	$ 175,847		$ 12	338,825	27	(163,017)
Beginning balance (in shares) at Dec. 31, 2022	116,432,029		116,432,000
Beginning balance at Dec. 31, 2022	$ 97,386	(33)	$ 12	350,247	193	(253,066)	(33)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	5,286			5,286
Proceeds from option exercises (shares)			30,000
Proceeds from option exercises	12			12
Proceeds from issuance of stock under the employee stock purchase plan (in shares)			267,000
Proceeds from issuance of stock under the employee stock purchase plan	75			75
Net (loss) income	(24,628)					(24,628)
Foreign currency translation	13				13
Ending balance (in shares) at Mar. 31, 2023			116,729,000
Ending balance at Mar. 31, 2023	$ 78,111		$ 12	355,620	206	(277,727)
Beginning balance (in shares) at Dec. 31, 2022	116,432,029		116,432,000
Beginning balance at Dec. 31, 2022	$ 97,386	$ (33)	$ 12	350,247	193	(253,066)	$ (33)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Proceeds from option exercises (shares)	82,000
Proceeds from issuance of stock under the employee stock purchase plan (in shares)			267,401
Net (loss) income	$ (44,206)
Foreign currency translation	$ 22
Ending balance (in shares) at Jun. 30, 2023	117,107,326		117,107,000
Ending balance at Jun. 30, 2023	$ 62,247		$ 12	359,326	215	(297,306)
Beginning balance (in shares) at Mar. 31, 2023			116,729,000
Beginning balance at Mar. 31, 2023	78,111		$ 12	355,620	206	(277,727)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	3,709			3,709
Proceeds from option exercises (shares)			52,000
Proceeds from option exercises	14			14
RSUs vested (in shares)			326,000
RSUs vested	(17)			(17)
Net (loss) income	(19,579)					(19,579)
Foreign currency translation	$ 9				9
Ending balance (in shares) at Jun. 30, 2023	117,107,326		117,107,000
Ending balance at Jun. 30, 2023	$ 62,247		$ 12	$ 359,326	$ 215	$ (297,306)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net (loss) income	$ (44,206)	$ 39,061
Adjustments to reconcile net income (loss) income to net cash used in operating activities:
Depreciation and amortization	357	7,699
Non-cash lease expense related to operating lease right-of-use assets	0	567
Stock-based compensation	8,709	13,687
Gain on change in fair value of earn-out liability	(110)	(96,400)
Long-lived asset impairment	13,480	0
Loss (gain) on foreign currency exchange rates	(17)	104
Provision for doubtful accounts	388	32
Changes in operating assets and liabilities:
Accounts receivable and unbilled services	(4,262)	(2,507)
Prepaid expenses and other current assets	202	(378)
Other assets	34	94
Accounts payable	(3,258)	(6,250)
Accrued expenses and other current liabilities	(2,416)	(5,879)
Deferred revenue	(1,270)	(5)
Operating lease liabilities	(324)	(294)
Other, net	(32)	115
Net cash used in operating activities	(32,725)	(50,354)
Cash flows from investing activities:
Payments related to capitalized software development costs	(9,714)	(16,228)
Purchase of internal-use software	(750)	0
Purchases of property and equipment	(27)	(159)
Net cash used in investing activities	(10,491)	(16,387)
Cash flows from financing activities:
Proceeds from stock option exercises	26	472
Proceeds from issuance of stock under the employee stock purchase plan	75	0
Payments related to tax withholdings for share-based compensation	(17)	0
Net cash provided by financing activities	84	472
Effect of foreign currency exchange rate changes on cash	44	(3)
Net decrease in cash and cash equivalents	(43,088)	(66,272)
Cash and cash equivalents, beginning of period	108,091	214,601
Cash and cash equivalents, end of period	65,003	148,329
Supplemental disclosures of non-cash activities
Balance in accounts payable, accrued expenses and other current liabilities, and capitalized stock-based compensation related to capitalized software and fixed asset additions	(3,345)	(4,152)
Balance in prepaid expenses and other current assets related to stock option exercises	$ 0	$ 28

Company Background and Basis of

Company Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Company Background and Basis of Presentation	Company Background and Basis of Presentation Description of Business Science 37 Holdings, Inc. and its subsidiaries (the “Company” or “Science 37”) is a leader in patient-centric clinical trials and in supporting novel approaches to decentralized clinical trial designs. Science 37 pioneered the concept of patient-centric clinical trials with a very simple premise: that clinical trials should begin with the patient. Through its patient-centric approach, Science 37 reduces the impact of the geographic barriers associated with conventional physical clinical trial sites, enabling recruitment of virtually any patient. Science 37 believes that centering the clinical trial around the patient with personalized support addresses current industry needs around patient recruitment, retention, representation, and engagement. To expand clinical trial access, Science 37 offers a unique model to existing non-research focused healthcare networks to seamlessly participate without the traditional site infrastructure costs. Science 37’s patient-centric model is powered by a proprietary end-to-end unified technology platform and its team of employees with significant therapeutic and subject matter expertise. As the backbone of Science 37’s offering, the proprietary unified technology platform standardizes and orchestrates the process for clinical trials across Science 37’s specialized network of patient communities, telemedicine investigators, flexible mobile nurse networks, remote coordinators, and robust network of technology integrations. The Company operates under one reporting segment. Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the Company’s financial condition and results of operations have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The balance sheet as of December 31, 2022 has been derived from the audited consolidated financial statements of the Company, but does not include all the disclosures required by GAAP. Reclassification Certain previously reported amounts have been reclassified to conform to the current period presentation. Specifically, on the face of the condensed consolidated balance sheets, commissions payable, which has increased as a percentage of total assets and was previously included in other long-term liabilities, has been reclassified to a separate financial statement line item. In addition, long-term earn-out liability, which was previously disclosed as a separate financial statement line item has been reclassified to other long-term liabilities, due to the immaterial nature of the balance. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances have been eliminated. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to: (1) revenue recognition, (2) allowance for doubtful accounts, (3) long-lived asset recoverability, (4) useful lives of long-lived assets, (5) stock-based compensation, and (6) fair value measurements, including the fair value of the contingent liability related to the Earn-Out Shares (as defined below) as further discussed in Note 8 “Fair Value Measurements” and Note 12 “Earn-Out Shares”. In January 2023, following the release of our next generation unified technology platform during 2022, the Company reassessed the useful life of its unified technology platform in relation to its revenue generating activities. Based on this review, the Company determined the useful life of its unified technology platform, in relation to revenue generating activities, was longer than the useful life previously used for amortization purposes in the Company’s financial statements. As a result, the Company increased the useful life of its unified technology platform for amortization purposes from three to five years effective January 1, 2023. The effects of this change in accounting estimate over the previous estimated useful life for the three and six months ended June 30, 2023 was zero because the Company’s unified technology platform was fully impaired in both the fourth quarter of 2022 and for the six months ended June 30, 2023 as discussed under Note 3 “Capitalized Software, net”. Emerging Growth Company and Smaller Reporting Company Status As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use the extended transition period under the JOBS Act until such time the Company is not considered to be an EGC. The adoption dates discussed in the section below reflect this election. The Company is also a smaller reporting company as defined in Item 10(f) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure requirements, including, among other things, providing only two years of audited financial statements. To the extent the Company takes advantage of such reduced disclosure requirements, it may make the comparison of its financial statements with other public companies difficult or impossible. Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The standard replaces the incurred loss impairment methodology in current GAAP with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company adopted ASU 2016-13 effective January 1, 2023 and recorded a cumulative effect adjustment for the impact to retained earnings. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and related disclosures. This is primarily based on the Company’s assessment of historical credit losses, customers’ creditworthiness, and the fact that the Company’s trade receivables are short term in duration.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers Unsatisfied Performance Obligations As of June 30, 2023, the aggregate amount of transaction price allocated to the unsatisfied performance obligations was $147.1 million. The Company expects to recognize this revenue over the remaining contract term of the individual projects, with remaining contract terms generally ranging from one month to 5.1 years. The amount of unsatisfied performance obligations is lower than the potential contractual revenue since it excludes revenue that is constrained. Revenue amounts excluded due to constraints include those amounts under contracts that (i) are wholly unperformed in which the customer has a unilateral right to cancel the arrangement, or (ii) require the Company to undertake numerous activities to fulfill the performance obligations, including various activities that are outside of the Company’s control. Timing of Billing and Performance During the three and six months ended June 30, 2023, the Company recognized approximately $1.2 million and $4.5 million of revenue, respectively, that was included in the deferred revenue balance at the beginning of the periods. During the three and six months ended June 30, 2023, revenue recognized from performance obligations partially satisfied in previous periods was $1.1 million and $4.0 million, respectively. These cumulative catch-up adjustments primarily related to contract modifications executed in the current period, which resulted in changes to the transaction price and changes in estimates such as estimated total costs. Accounts Receivable, Unbilled Services, and Deferred Revenue Accounts receivable and unbilled services (including contract assets) consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Accounts receivable $ 11,928 $ 8,235 Unbilled services 4,123 3,555 Total accounts receivable and unbilled services 16,051 11,790 Allowance for doubtful accounts (1,219) (798) Total accounts receivable and unbilled services, net $ 14,832 $ 10,992 As of June 30, 2023 and December 31, 2022, contract assets of $4.1 million and $3.6 million, respectively, were included in unbilled services. Deferred revenue as of June 30, 2023 and December 31, 2022 was $7.0 million and $8.3 million, respectively. Changes in the Company’s accounts receivable, unbilled services and deferred revenue balances were impacted by timing differences between the Company’s satisfaction of performance obligations under its contracts, achievement of billing milestones, and customer payments. Revenue by Geography Substantially all of the Company’s revenue for the three and six months ended June 30, 2023 and 2022 was derived from services performed within the United States. No other country represented more than 10% of total revenue for these periods. Concentration of Credit Risk Financial assets that subject the Company to credit risk primarily consist of cash and cash equivalents, accounts receivable and unbilled services. Based on the short-term nature and historical realization of the financial assets, as well as the reputable credit ratings of the financial institutions holding the deposits, the Company believes it bears minimal credit risk. Certain balances exceed Federal Deposit Insurance Corporation (FDIC) insured limits or are invested in money market accounts with investment banks that are not FDIC insured. For both the three months ended June 30, 2023 and 2022, two customers individually (totaling 27.5% and 29.6% of revenues, respectively) accounted for greater than 10% of revenue. For the six months ended June 30, 2023 and 2022, three and two customers, respectively, individually (totaling 34.5% and 32.4% of revenues, respectively) accounted for greater than 10% of revenue. As of June 30, 2023 and December 31, 2022, five and two customers, respectively, individually (totaling 69.3% and 39.1% of accounts receivable, net, respectively) accounted for greater than 10% of accounts receivable, net.

Capitalized Software, net

Capitalized Software, net	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Capitalized Software, net	Capitalized Software, net For the six months ended June 30, 2023 and 2022, the Company capitalized $13.1 million and $20.4 million, respectively, of internal-use software and recognized amortization expense of $0.4 million and $7.4 million, respectively. In addition, on January 31, 2023, the Company purchased scheduling software at a cost of $0.8 million. The acquired software will be integrated into the Company’s unified technology platform over an approximate nine month period. This purchase and integration will enable increased scheduling efficiencies and related cost savings and demonstrates the Company’s continuous improvement and cost reduction commitments. The net book value of the Company’s internal use software totaling $13.5 million during the six months ended June 30, 2023 was impaired due to the carrying value of the asset group being greater than the fair value. The Company considered the market capitalization valuation during the six months ended June 30, 2023, which was adversely impacted by sustained declines in the Company’s stock price, in determining the fair value of the asset group. The market capitalization was trading below cash and cash equivalents and stockholders' equity at June 30, 2023 which required the Company to recognize the long-lived asset impairment. The Company remains confident in the utility of the long-lived assets and there has been no change as to their intended use. No long-lived asset impairment expense was recognized for the six months ended June 30, 2022.

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Leases The following table presents lease liability maturities and balance sheet classification as of June 30, 2023: (in thousands) Years Ending December 31, Operating Leases 2023 (excluding the six months ended June 30, 2023 ) $ 341 2024 599 2025 138 2026 12 2027 and thereafter — Total future minimum lease payments 1,090 Less imputed interest (62) Total lease liability $ 1,028 Balance Sheet classification of lease liabilities reported as of June 30, 2023: Current liabilities: Accrued expenses and other liabilities $ 636 Non-current liabilities: Operating lease liabilities 392 Total $ 1,028

Restructuring Costs

Restructuring Costs	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs On November 10, 2022, the Company committed to and commenced a cost reduction program to materially change the Company’s management structure and better align resources with our then-current business needs and going forward financial objectives. The cost reduction program included one-time termination benefits for 81 employees (approximately 15% of the Company’s workforce at the time of the reduction). The Company’s Board of Directors approved the program on November 9, 2022, and the majority of the affected employees were informed of the program beginning on November 10, 2022. On April 11, 2023, the Company commenced an additional phase of its cost reduction program. In a continued effort to align the organization relative to core business needs and go forward financial objectives, this phase included a reduction in force affecting approximately 140 employees (representing approximately 30% of total employees prior to these actions). The Company’s Board of Directors approved the reduction in force on March 30, 2023 and the majority of the affected employees were informed on April 11, 2023. The cost reduction program was substantially complete as of June 30, 2023. During the six months ended June 30, 2023, the Company recognized $3.6 million of restructuring costs. There were no restructuring costs for the six months ended June 30, 2022. Total costs and cash expenditures for both phases of the cost reduction program are estimated at $6.7 million to $7.0 million, substantially all of which are related to one-time employee severance and benefits costs. The Company may continue to incur additional restructuring costs during and beyond 2023 related to its cost reduction program. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the cost reduction program. Restructuring liabilities are included in accrued expenses and other liabilities on the condensed consolidated balance sheets. Activity related to the restructuring liabilities was as follows: (In thousands) June 30, 2023 Balance at beginning of period $ 772 Restructuring costs 3,602 Payments (3,671) Balance at end of period $ 703 The Company expects the restructuring accruals as of June 30, 2023 will be paid in 2023, pursuant to the terms of one-time benefits.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Prepaid expenses $ 2,114 $ 2,834 Capitalized commission cost, net 4,477 3,945 Other 330 342 Total prepaid expenses and other current assets $ 6,921 $ 7,121

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses and Other Liabilities	Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Compensation, including bonuses, fringe benefits, and payroll taxes $ 4,880 $ 5,750 Professional fees, investigator fees, and pass-through expenses 1,993 2,527 Commissions payable 1,623 1,529 Restructuring costs 703 772 Current portion of operating lease liabilities 636 606 Other 167 180 Total accrued expenses and other liabilities $ 10,002 $ 11,364

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Financial instruments, including cash and cash equivalents, are recorded at cost, which approximates fair value. Former holders of shares of Science 37, Inc. (“Legacy Science 37”) common stock were allocated Earn-Out Shares in connection with the completion of the October 2021 merger with LifeSci Acquisition II Corp. (the “Merger”) (for more information on the Merger transaction, please refer to Note 1 “Company Background and Basis of Presentation” and Note 3 “Business Combination” to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed on March 6, 2023). These Earn-Out Shares are accounted for as a liability and require fair value measurement on a recurring basis. Due to the significant unobservable inputs that are required to value these shares, they are classified as Level 3 in the fair value hierarchy. Please refer to Note 12 “Earn-Out Shares” for additional details surrounding the valuation methodology for the Earn-Out Shares. None of the Company’s non-financial assets or liabilities are subject to fair value measurement on a non-recurring basis. There were no transfers between fair value measurement levels during the six months ended June 30, 2023. The following table summarizes the fair values of the Company’s assets and liabilities that were measured and reported at fair value on a recurring basis as of June 30, 2023: (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 62,978 $ — $ — $ 62,978 Total $ 62,978 $ — $ — $ 62,978 Liabilities: Earn-out liability related to shareholders $ — $ — $ 60 $ 60 Total $ — $ — $ 60 $ 60 The following table summarizes the fair values of the Company’s assets and liabilities that were measured and reported at fair value on a recurring basis as of December 31, 2022: (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 104,138 $ — $ — $ 104,138 Total $ 104,138 $ — $ — $ 104,138 Liabilities: Earn-out liability related to shareholders $ — $ — $ 170 $ 170 Total $ — $ — $ 170 $ 170

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per Share The following table presents the calculation of basic and diluted earnings (loss) per share for the Company’s common stock: Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share amounts) 2023 2022 2023 2022 Numerator: Net (loss) income $ (19,579) $ (5,833) $ (44,206) $ 39,061 Denominator: Basic weighted average common shares outstanding 116,919 115,995 116,734 115,693 Effect of dilutive securities: Stock options — — — 10,428 Restricted stock units — — — 65 Diluted weighted average common shares outstanding 116,919 115,995 116,734 126,185 Earnings (loss) per share: Basic $ (0.17) $ (0.05) $ (0.38) $ 0.34 Diluted $ (0.17) $ (0.05) $ (0.38) $ 0.31 Potential common shares that are considered anti-dilutive are excluded from the computation of diluted earnings per share. Potential common shares related to stock-based awards issued under stock-based compensation programs and shares issuable pursuant to the employee stock purchase plan may be determined to be anti-dilutive based on the application of the treasury stock method. Potential common shares are also considered anti-dilutive in periods when the Company incurs a net loss. Earn-Out Shares are contingent upon the price of the Company’s common stock over a specified period of time and the target stock prices have not been achieved as of the end of the reporting period. The number of potential shares outstanding that were anti-dilutive, and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Stock options 15,383 27,413 19,777 16,321 Restricted stock units 15,104 321 12,479 — ESPP 200 — 241 — Earn-out shares 12,500 12,500 12,500 12,500 Total anti-dilutive shares 43,187 40,234 44,997 28,821

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party TransactionsFor the three and six months ended June 30, 2023, the Company had revenue of $0.6 million and $0.7 million, respectively, from Pharmaceutical Product Development, LLC (“PPD”), a wholly-owned subsidiary of Thermo Fisher Scientific, Inc. and a shareholder who beneficially owns 5% or more of the Company’s common stock. For the three and six months ended June 30, 2022, the Company had revenue of $2.1 million and $4.4 million, respectively, from PPD. In addition, as of June 30, 2023 and December 31, 2022, the Company had receivables of $0.3 million and $0.7 million, respectively, from PPD.

Commitment and Contingencies

Commitment and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings The Company is subject to proceedings incidental to its business. The Company records accruals for claims, suits, investigations, and proceedings when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company reviews these contingencies regularly and records or adjusts accruals related to such matters to reflect the impact and status of any settlements, rulings, advice of counsel or other information pertinent to a particular matter. Gain contingencies are not recognized. Legal costs associated with contingencies are expensed as incurred. Since these matters are inherently unpredictable, assessing contingencies is highly subjective and requires judgments about future events. Commitments and Contingencies As of June 30, 2023, the Company had no material contingent losses recorded. Please refer to Note 4 “Leases” for information regarding lease commitments and Note 12 “Earn-Out Shares” for information regarding the contingent obligation related to the Earn-Out Shares.

Earn-Out Shares

Earn-Out Shares	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Earn-Out Shares	Earn-Out Shares In accordance with the October 2021 Merger, former holders of shares of Legacy Science 37 preferred and common stock and former holders of options to purchase shares of Legacy Science 37 common stock are entitled to receive their respective pro rata shares of up to 12,500,000 additional shares of the Company’s common stock (the “Earn-Out Shares”) if certain triggering events are met within three years from the date of the Merger (the “Triggering Events”). For more information on the Merger transaction, please refer to Note 1 “Company Background and Basis of Presentation” and Note 3 “Business Combination” to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed on March 6, 2023. As of December 31, 2022, the stockholders and option holders were estimated to receive approximately 11,131,713 and 1,368,287 Earn-Out Shares, respectively, based on the fully diluted capitalization table of Legacy Science 37. The fair value of the Earn-Out Shares was approximately $0.02 (Trigger 1) and approximately $0.01 (Trigger 2) per share as of December 31, 2022. As of June 30, 2023, the stockholders and option holders were estimated to receive approximately 11,235,381 and 1,264,619 Earn-Out Shares, respectively. The fair value of the Earn-Out Shares was approximately $0.01 (Trigger 1) and approximately $0.00 (Trigger 2) per share as of June 30, 2023. Through the third quarter of 2022, the estimated fair value of the Earn-Out Shares was determined using a Monte Carlo simulation valuation model using a distribution of potential outcomes on a monthly basis over the Earn-Out Period using the most reliable information available. This valuation method falls into Level 3 fair value hierarchy for inputs used in measuring fair value and is based on inputs that are unobservable and significant to the overall fair value measurement. Unobservable inputs are inputs that reflect the Company's judgment concerning the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. To the extent that the valuation is based on models or inputs that are unobservable in the market, the determination of fair value requires management to exercise a high degree of judgment. Change in significant unobservable inputs could result in a higher or lower fair value measurement of the liability associated with the Earn-Out Shares. Based on the first year Monte Carlo simulation valuation model results, the change in the Company’s stock price and the relative immaterial nature of the earn-out liability, the fair value of the Earn-Out Shares for both the six months ended June 30, 2023 and the three months ended December 31, 2022 was determined using a valuation methodology that the Company believes approximates the fair value of the Earn-Out Shares that would be determined using the Monte Carlo simulation valuation model. Former Science 37 Shareholders The Company has determined that the contingent obligation to issue Earn-Out Shares to former Science 37 shareholders is not indexed to the Company's stock under ASC Topic 815-40, Derivatives and Hedging - Contracts in Entity’s Own Equity, and therefore equity treatment is precluded. The Triggering Event that determines the issuance of the Earn-Out Shares includes terms that are not solely indexed to the common stock of the Company and, as such, liability classification is required. For the six months ended June 30, 2023, there was a decrease in the fair value of the earn-out liability of $0.1 million, which was recorded as a gain in “Change in fair value of earn-out liability” within the condensed consolidated statements of operations. In accordance with the Merger, Earn-Out Shares attributable to former Science 37 option holders who discontinue providing service before the occurrence of the Triggering Event are reallocated to the remaining eligible former stockholders and former option holders. The earn-out liability is recorded on the balance sheet as a non-current liability because potential payment of the liability will be settled in the Company’s common shares. The following table presents a reconciliation of changes in the carrying amount of the contingent earn-out liability classified as Level 3 fair value hierarchy using significant unobservable inputs for the six months ended June 30, 2023: (In thousands) Earn-Out Liability Balance at December 31, 2022 $ 170 Change in fair value related to option holder forfeitures — Change in fair value related to share valuation inputs (110) Total change in fair value recognized in earnings $ (110) Balance at June 30, 2023 $ 60 Former Science 37 Option Holders

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company has two equity-based compensation plans, the Science 37 Holdings, Inc. 2021 Incentive Award Plan (“2021 Plan”) and the 2022 Employment Inducement Incentive Award Plan (“2022 Plan”, and together with the 2021 Plan, the “Plans”). From the 2021 Plan, stock-based compensation awards can be granted to employees, consultants, and non-executive directors. From the 2022 Plan, inducement stock-based awards can be granted to newly hired employees in accordance with Nasdaq Listing Rules. The 2021 Plan allows for the grant of awards in the form of: (i) incentive stock options; (ii) non-qualified stock options; (iii) stock appreciation rights; (iv) restricted stock; (v) restricted stock units (“RSUs”); (vi) dividend equivalents; and (vii) other stock and cash based awards. The 2022 Plan allows for the grant of awards in the form of: (i) non-qualified stock options; (ii) stock appreciation rights; (iii) restricted stock; (iv) RSUs; (v) dividend equivalents; and (vi) other stock and cash-based awards. The Compensation Committee of the Board is responsible for the administration of both Plans. In addition, the Company has an Employee Stock Purchase Plan (the “ESPP”). The terms of stock-based instruments granted are determined at the time of grant and are typically subject to such conditions as continued employment and the passage of time. The Company has granted 1) stock options, which typically vest at 25% per year and become exercisable after one year of service after the date of issuance, with equal and successive vesting for the next 36 months, as long as the employee provides service to the Company, as defined and 2) RSUs, which are contingent upon continued service and vest over time in annual or bi-annual installments over the vesting period, which is typically 1 to 3 years. In addition, employees, consultants, and directors owning stock options immediately prior to the October 2021 Merger were granted the right to receive a number of Earn-Out Shares as described in Note 12. The ESPP is a shareholder-approved plan under which substantially all employees may voluntarily enroll to purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the stock as of the beginning or end of the six-month offering periods. Employees may not purchase more than 5,000 shares annually under the plan. The following table summarizes stock option awards outstanding as of June 30, 2023, as well as activity during the six months then ended: (In thousands, except per share amounts) Number of Weighted Average Outstanding at December 31, 2022 24,490 $ 6.16 Granted 511 0.33 Exercised (82) 0.32 Forfeited (13,150) 9.55 Outstanding at June 30, 2023 11,769 $ 2.15 The following table summarizes RSU awards outstanding as of June 30, 2023, as well as activity during the six months then ended: (In thousands, except per share amounts) Number of Weighted Average Aggregate Fair Value Outstanding at December 31, 2022 9,737 $ 2.06 Granted 9,194 $ 0.27 Vested (386) $ 3.16 Forfeited (900) $ 2.07 Outstanding at June 30, 2023 17,645 $ 1.10 $ 19,392 As of June 30, 2023, the total unrecognized compensation expense related to outstanding stock options and RSU awards was $3.1 million and $34.7 million, respectively, which the Company expects to recognize over a weighted-average period of 1.87 and 2.21 years, respectively. On April 3, 2023, the Company filed a Schedule TO with the Securities and Exchange Commission in connection with an exchange offer to eligible employees (including named executive officers) and consultants of the Company to voluntarily exchange some or all of their outstanding stock options, whether vested or unvested, with an exercise price greater than or equal to $9.06 per share for a lesser number of RSUs with standard three year service-based vesting requirements (the “Exchange Offer”). Specifically, one RSU was granted in exchange for two eligible options held by non-executive employees and consultants and two and one-half eligible options held by executive officers. The number of RSUs was rounded down to the nearest whole share on a grant-by-grant basis. The Exchange Offer closed on April 28, 2023. In the aggregate, 4,674,682 RSUs were issued to 142 executive and non-executive employees and consultants in exchange for 10,605,665 stock options that had a weighted average exercise price of $10.22. The new RSUs granted in connection with the Exchange Offer are governed by the 2021 Plan. The Exchange Offer resulted in Type I (probable to probable) modifications and will result in incremental stock-based compensation expense of $1.0 million. This incremental expense was measured as the excess of the fair value of each new RSU as of the date of the exchange (grant date) over the fair value of the stock options surrendered in exchange for the RSUs, measured immediately prior to their cancellation. The original option awards had remaining vesting periods ranging from 2.1 to 2.8 years at the exchange date. For Type I modifications that increase an employee’s requisite service period, companies have the option of attributing the remaining unrecognized compensation expense of the original award and the incremental compensation expense resulting from the modification either 1) separately over their individual vesting periods or 2) ratably over the new award’s vesting period. The Company will expense ratably over the new award’s vesting period. As of June 30, 2023, there were 267,401 shares issued and 5,968,901 shares reserved for future issuance under the ESPP. As of June 30, 2023, the total unrecognized compensation expense related to the ESPP was de minimis, which the Company expects to recognize over a period of 0.17 years. The total amount of stock-based compensation expense recognized in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2023 and 2022 was as follows: Statement of operations classification Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Cost of revenue (stock options, RSUs and ESPP) $ 132 $ 462 $ 381 $ 976 Selling, general and administrative (stock options, RSUs and ESPP) 3,469 3,791 7,923 8,959 Selling, general and administrative (Earn-Out Shares) — 1,877 405 3,752 Total stock-based compensation expense $ 3,601 $ 6,130 $ 8,709 $ 13,687 Stock-based compensation expense recognized in the statements of operations may differ from the impact of stock-based compensation to additional paid-in capital due to stock-based compensation capitalized as part of software development activities.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company has incurred net operating losses since inception and is forecasting additional losses through December 31, 2023. No U.S. Federal or material state income taxes are expected for 2023 and foreign income taxes are expected to be immaterial; as such, the provision for income taxes recorded as of June 30, 2023 was immaterial. Due to the Company’s history of losses since inception, there is not enough evidence at this time to support the conclusion that the Company will generate future income of a sufficient amount and nature to utilize the benefits of the Company’s net deferred tax assets. Accordingly, as of June 30, 2023 and December 31, 2022, the Company provided a full valuation allowance against its net deferred tax assets since, as of that time, the Company could not assert that it was more likely than not that these deferred tax assets would be realized.

Company Background, Basis of Pr

Company Background, Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information.
Principles of Consolidation	The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany transactions and balances have been eliminated.
Use of Estimates	The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to: (1) revenue recognition, (2) allowance for doubtful accounts, (3) long-lived asset recoverability, (4) useful lives of long-lived assets, (5) stock-based compensation, and (6) fair value measurements, including the fair value of the contingent liability related to the Earn-Out Shares (as defined below) as further discussed in Note 8 “Fair Value Measurements” and Note 12 “Earn-Out Shares”. In January 2023, following the release of our next generation unified technology platform during 2022, the Company reassessed the useful life of its unified technology platform in relation to its revenue generating activities. Based on this review, the Company determined the useful life of its unified technology platform, in relation to revenue generating activities, was longer than the useful life previously used for amortization purposes in the Company’s financial statements. As a result, the Company increased the useful life of its unified technology platform for amortization purposes from three to five years effective January 1, 2023.
Accounting Pronouncements Recently Adopted	In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The standard replaces the incurred loss impairment methodology in current GAAP with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company adopted ASU 2016-13 effective January 1, 2023 and recorded a cumulative effect adjustment for the impact to retained earnings. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and related disclosures. This is primarily based on the Company’s assessment of historical credit losses, customers’ creditworthiness, and the fact that the Company’s trade receivables are short term in duration.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Accounts receivable and unbilled services (including contract assets) consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Accounts receivable $ 11,928 $ 8,235 Unbilled services 4,123 3,555 Total accounts receivable and unbilled services 16,051 11,790 Allowance for doubtful accounts (1,219) (798) Total accounts receivable and unbilled services, net $ 14,832 $ 10,992

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Lessee, Operating Lease, Liability, Maturity	The following table presents lease liability maturities and balance sheet classification as of June 30, 2023: (in thousands) Years Ending December 31, Operating Leases 2023 (excluding the six months ended June 30, 2023 ) $ 341 2024 599 2025 138 2026 12 2027 and thereafter — Total future minimum lease payments 1,090 Less imputed interest (62) Total lease liability $ 1,028 Balance Sheet classification of lease liabilities reported as of June 30, 2023: Current liabilities: Accrued expenses and other liabilities $ 636 Non-current liabilities: Operating lease liabilities 392 Total $ 1,028

Restructuring and Related Activ

Restructuring and Related Activities (Tables)	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	Activity related to the restructuring liabilities was as follows: (In thousands) June 30, 2023 Balance at beginning of period $ 772 Restructuring costs 3,602 Payments (3,671) Balance at end of period $ 703

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Current Assets	Prepaid expenses and other current assets consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Prepaid expenses $ 2,114 $ 2,834 Capitalized commission cost, net 4,477 3,945 Other 330 342 Total prepaid expenses and other current assets $ 6,921 $ 7,121

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Expense and Other Liabilities	Accrued expenses and other liabilities consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Compensation, including bonuses, fringe benefits, and payroll taxes $ 4,880 $ 5,750 Professional fees, investigator fees, and pass-through expenses 1,993 2,527 Commissions payable 1,623 1,529 Restructuring costs 703 772 Current portion of operating lease liabilities 636 606 Other 167 180 Total accrued expenses and other liabilities $ 10,002 $ 11,364

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table summarizes the fair values of the Company’s assets and liabilities that were measured and reported at fair value on a recurring basis as of June 30, 2023: (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 62,978 $ — $ — $ 62,978 Total $ 62,978 $ — $ — $ 62,978 Liabilities: Earn-out liability related to shareholders $ — $ — $ 60 $ 60 Total $ — $ — $ 60 $ 60 The following table summarizes the fair values of the Company’s assets and liabilities that were measured and reported at fair value on a recurring basis as of December 31, 2022: (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 104,138 $ — $ — $ 104,138 Total $ 104,138 $ — $ — $ 104,138 Liabilities: Earn-out liability related to shareholders $ — $ — $ 170 $ 170 Total $ — $ — $ 170 $ 170

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents the calculation of basic and diluted earnings (loss) per share for the Company’s common stock: Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share amounts) 2023 2022 2023 2022 Numerator: Net (loss) income $ (19,579) $ (5,833) $ (44,206) $ 39,061 Denominator: Basic weighted average common shares outstanding 116,919 115,995 116,734 115,693 Effect of dilutive securities: Stock options — — — 10,428 Restricted stock units — — — 65 Diluted weighted average common shares outstanding 116,919 115,995 116,734 126,185 Earnings (loss) per share: Basic $ (0.17) $ (0.05) $ (0.38) $ 0.34 Diluted $ (0.17) $ (0.05) $ (0.38) $ 0.31
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The number of potential shares outstanding that were anti-dilutive, and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Stock options 15,383 27,413 19,777 16,321 Restricted stock units 15,104 321 12,479 — ESPP 200 — 241 — Earn-out shares 12,500 12,500 12,500 12,500 Total anti-dilutive shares 43,187 40,234 44,997 28,821

Earn-Out Shares (Tables)

Earn-Out Shares (Tables)	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table presents a reconciliation of changes in the carrying amount of the contingent earn-out liability classified as Level 3 fair value hierarchy using significant unobservable inputs for the six months ended June 30, 2023: (In thousands) Earn-Out Liability Balance at December 31, 2022 $ 170 Change in fair value related to option holder forfeitures — Change in fair value related to share valuation inputs (110) Total change in fair value recognized in earnings $ (110) Balance at June 30, 2023 $ 60

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Option, Activity	The following table summarizes stock option awards outstanding as of June 30, 2023, as well as activity during the six months then ended: (In thousands, except per share amounts) Number of Weighted Average Outstanding at December 31, 2022 24,490 $ 6.16 Granted 511 0.33 Exercised (82) 0.32 Forfeited (13,150) 9.55 Outstanding at June 30, 2023 11,769 $ 2.15
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The following table summarizes RSU awards outstanding as of June 30, 2023, as well as activity during the six months then ended: (In thousands, except per share amounts) Number of Weighted Average Aggregate Fair Value Outstanding at December 31, 2022 9,737 $ 2.06 Granted 9,194 $ 0.27 Vested (386) $ 3.16 Forfeited (900) $ 2.07 Outstanding at June 30, 2023 17,645 $ 1.10 $ 19,392
Share-based Payment Arrangement, Expensed and Capitalized, Amount	The total amount of stock-based compensation expense recognized in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2023 and 2022 was as follows: Statement of operations classification Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Cost of revenue (stock options, RSUs and ESPP) $ 132 $ 462 $ 381 $ 976 Selling, general and administrative (stock options, RSUs and ESPP) 3,469 3,791 7,923 8,959 Selling, general and administrative (Earn-Out Shares) — 1,877 405 3,752 Total stock-based compensation expense $ 3,601 $ 6,130 $ 8,709 $ 13,687

Company Background and Basis _2

Company Background and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract with customer, liability, revenue recognized	$ 1,200		$ 4,500
Contract with customer, performance obligation satisfied in previous period	1,100		4,000
Contract assets	4,123		4,123		$ 3,555
Deferred revenue	7,000		7,000		$ 8,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 147,100		$ 147,100
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Two Customers
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk	27.50%	29.60%		32.40%
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Three Customers
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk			34.50%
Customer Concentration Risk | Accounts Receivable | Two Customers
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk					39.10%
Customer Concentration Risk | Accounts Receivable | Five Customers
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk			69.30%
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 month		1 month
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	5 years 1 month 6 days		5 years 1 month 6 days

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable	$ 11,928	$ 8,235
Unbilled services	4,123	3,555
Total accounts receivable and unbilled services	16,051	11,790
Allowance for doubtful accounts	(1,219)	(798)
Total accounts receivable and unbilled services, net	$ 14,832	$ 10,992

Capitalized Software, net - Nar

Capitalized Software, net - Narrative (Details) - USD ($)		6 Months Ended
	Jan. 31, 2023	Jun. 30, 2023	Jun. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Capitalized software, additions		$ 13,100,000	$ 20,400,000
Capitalized software, amortization		400,000	7,400,000
Purchase of internal-use software	$ 800,000	750,000	$ 0
Internal use software		13,500,000
Computer software, impairments		$ 0

Leases - Operating Lease Liabil

Leases - Operating Lease Liability Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
2023 (excluding the six months ended June 30, 2023)	$ 341
2024	599
2025	138
2026	12
2027 and thereafter	0
Total future minimum lease payments	1,090
Less imputed interest	(62)
Total lease liability	1,028
Current liabilities: Accrued expenses and other liabilities	636	$ 606
Non-current liabilities: Operating lease liabilities	392	$ 716
Total	$ 1,028

Restructuring Costs - Narrative

Restructuring Costs - Narrative (Details)			3 Months Ended		6 Months Ended
	Apr. 11, 2023 employee	Nov. 10, 2022 employee	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Restructuring Cost and Reserve [Line Items]
Cost reduction program, number of positions eliminated | employee	140	81
Cost reduction program, number of positions eliminated, period percent	30%	15%
Restructuring costs			$ 3,373,000	$ 0	$ 3,602,000	$ 0
Minimum
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost			6,700,000		6,700,000
Maximum
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, expected cost			$ 7,000,000		$ 7,000,000

Restructuring Costs - Schedule

Restructuring Costs - Schedule of Restructuring Liabilities (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Reserve [Roll Forward]
Balance at beginning of period			$ 772,000
Restructuring costs	$ 3,373,000	$ 0	3,602,000	$ 0
Payments			(3,671,000)
Balance at end of period	$ 703,000		$ 703,000

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 2,114	$ 2,834
Capitalized commission cost, net	4,477	3,945
Other	330	342
Total prepaid expenses and other current assets	$ 6,921	$ 7,121

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Compensation, including bonuses, fringe benefits, and payroll taxes	$ 4,880	$ 5,750
Professional fees, investigator fees, and pass-through expenses	1,993	2,527
Commissions payable	1,623	1,529
Restructuring costs	703	772
Current portion of operating lease liabilities	636	606
Other	167	180
Total accrued expenses and other liabilities	$ 10,002	$ 11,364
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued expenses and other liabilities	Total accrued expenses and other liabilities

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets:
Total	$ 62,978	$ 104,138
Liabilities:
Earn-out liability related to shareholders	60	170
Total	60	170
Money Market Funds
Assets:
Money market funds	62,978	104,138
Level 1
Assets:
Total	62,978	104,138
Liabilities:
Earn-out liability related to shareholders	0	0
Total	0	0
Level 1 | Money Market Funds
Assets:
Money market funds	62,978	104,138
Level 2
Assets:
Total	0	0
Liabilities:
Earn-out liability related to shareholders	0	0
Total	0	0
Level 2 | Money Market Funds
Assets:
Money market funds	0	0
Level 3
Assets:
Total	0	0
Liabilities:
Earn-out liability related to shareholders	60	170
Total	60	170
Level 3 | Money Market Funds
Assets:
Money market funds	$ 0	$ 0

Earnings (Loss) Per Share - Sch

Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net (loss) income	$ (19,579)	$ (24,628)	$ (5,833)	$ 44,894	$ (44,206)	$ 39,061
Denominator:
Basic (in shares)	116,919		115,995		116,734	115,693
Effect of dilutive securities:
Diluted (in shares)	116,919		115,995		116,734	126,185
Earnings (loss) per share:
Basic (in dollars per share)	$ (0.17)		$ (0.05)		$ (0.38)	$ 0.34
Diluted (in dollars per share)	$ (0.17)		$ (0.05)		$ (0.38)	$ 0.31
Stock options
Effect of dilutive securities:
Stock options outstanding (in shares)	0		0		0	10,428
Restricted stock units
Effect of dilutive securities:
Stock options outstanding (in shares)	0		0		0	65

Earnings (Loss) Per Share - S_2

Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	43,187	40,234	44,997	28,821
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	15,383	27,413	19,777	16,321
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	15,104	321	12,479	0
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	200	0	241	0
Earn-out shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	12,500	12,500	12,500	12,500

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Revenues	$ 15,351	$ 19,275	$ 29,437	$ 37,961
Related Party
Related Party Transaction [Line Items]
Revenues	600	$ 2,100	700	$ 4,400
Accounts receivables	$ 300		$ 300		$ 700

Earn-Out Shares - Narrative (De

Earn-Out Shares - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Oct. 06, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Derivative [Line Items]
Earn-out shares (in shares)	12,500,000
Earnout period	3 years
Change in fair value of earn-out liability		$ 0	$ 20,900	$ 110	$ 96,400
Stock-based compensation expense		$ 3,601	$ 6,130	$ 8,709	$ 13,687
Stockholders
Derivative [Line Items]
Earn-out shares to be received (in shares)		11,235,381		11,235,381		11,131,713
Option Holders
Derivative [Line Items]
Earn-out shares to be received (in shares)		1,264,619		1,264,619		1,368,287
Earn-Out Shares
Derivative [Line Items]
Stock-based compensation expense		$ 0		$ 400
Derivative Instrument, Trigger, One
Derivative [Line Items]
Fair value of earn-out shares (in dollars per share)		$ 0.01		$ 0.01		$ 0.02
Derivative Instrument, Trigger, Two
Derivative [Line Items]
Fair value of earn-out shares (in dollars per share)		$ 0		$ 0		$ 0.01

Earn-Out Shares - Fair Value, L

Earn-Out Shares - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair value, beginning balance			$ 170
Change in fair value of earn-out liability	$ 0	$ (20,900)	(110)	$ (96,400)
Fair value, ending balance	$ 60		60
Option Holders
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Change in fair value recognized in earnings			0
Stockholders
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Change in fair value recognized in earnings			$ (110)

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions			3 Months Ended	6 Months Ended
	Apr. 28, 2023 USD ($) employee $ / shares shares	Apr. 03, 2023 $ / shares	Mar. 31, 2023 shares	Jun. 30, 2023 USD ($) plan $ / shares Rate shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity-based compensations plans | plan				2
Requisite service period				36 months
Vesting period		3 years
Unrecognized compensation cost related to unvested stock options | $				$ 3.1
Forfeited (in dollars per share) | $ / shares	$ 10.22			$ 9.55
Number of participants in the exchange offer | employee	142
Share-based payment award, nonvested options forfeited (in shares)	10,605,665
Non-Executive
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock conversion ratio | Rate				50%
Executive
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock conversion ratio | Rate				40%
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period, employee stock purchase plans (in shares)			267,000	267,401
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested stock options, period for recognition				1 year 10 months 13 days
Stock options | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25%
Stock options | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25%
Stock options | Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25%
Stock options | Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25%
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, excluding option, cost not yet recognized, amount | $	$ 1			$ 34.7
Unrecognized compensation cost related to unvested stock options, period for recognition				2 years 2 months 15 days
Stock issued during period, restricted stock awards (in shares)	4,674,682
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, purchase price of common stock, percent				85%
Share-based compensation arrangement, offering period				6 months
Share-based compensation arrangement, maximum number of shares per employee				5,000
Unrecognized compensation cost related to unvested stock options, period for recognition				2 months 1 day
Number of shares authorized (in shares)				5,968,901
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
Forfeited (in dollars per share) | $ / shares		$ 9.06
Minimum | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				2 years 1 month 6 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
Maximum | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				2 years 9 months 18 days

Stock-Based Compensation - Shar

Stock-Based Compensation - Share-based Payment Arrangement, Option, Activity (Details) - $ / shares shares in Thousands		6 Months Ended
	Apr. 28, 2023	Jun. 30, 2023
Number of Options
Outstanding beginning balance (in shares)		24,490
Granted (in shares)		511
Exercised (in shares)		(82)
Forfeited (in shares)		(13,150)
Outstanding ending balance (in shares)		11,769
Weighted Average Exercise Price
Outstanding beginning balance (in dollars per share)		$ 6.16
Granted (in dollars per share)		0.33
Exercised (in dollars per share)		0.32
Forfeited (in dollars per share)	$ 10.22	9.55
Outstanding ending balance (in dollars per share)		$ 2.15

Stock-Based Compensation - Sh_2

Stock-Based Compensation - Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Number of RSUs
Outstanding beginning balance (in shares) | shares	9,737
Granted (in shares) | shares	9,194
Vested (in shares) | shares	(386)
Forfeited (in shares) | shares	(900)
Outstanding ending balance (in shares) | shares	17,645
Weighted Average Grant Date Fair Value
Outstanding beginning balance (in dollars per share) | $ / shares	$ 2.06
Granted (in dollars per share) | $ / shares	0.27
Vested (in dollars per share) | $ / shares	3.16
Forfeited (in dollars per share) | $ / shares	2.07
Outstanding ending balance (in dollars per share) | $ / shares	$ 1.10
Aggregate Fair Value
Outstanding | $	$ 19,392

Stock-Based Compensation - Sh_3

Stock-Based Compensation - Share-based Payment Arrangement, Expensed and Capitalized, Amount (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 3,601	$ 6,130	$ 8,709	$ 13,687
Earn-Out Shares
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	0		400
Cost of revenues | Share-Based Payment Arrangement
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	132	462	381	976
Selling, general and administrative expenses | Share-Based Payment Arrangement
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	3,469	3,791	7,923	8,959
Selling, general and administrative expenses | Earn-Out Shares
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 0	$ 1,877	$ 405	$ 3,752

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2023
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ 0	$ 0	$ 0	$ (1,000)
Forecast
Income Tax Contingency [Line Items]
Income tax expense (benefit)					$ 0