Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity registrant name | Amber Road, Inc. | ||
Entity central index key | 1,314,223 | ||
Document type | 10-K | ||
Document period end date | Dec. 31, 2018 | ||
Amendment flag | false | ||
Document fiscal year focus | 2,018 | ||
Document fiscal period focus | FY | ||
Current fiscal year end date | --12-31 | ||
Entity filer category | Accelerated Filer | ||
Entity common stock, shares outstanding | 28,083,011 | ||
Entity emerging growth company | true | ||
Entity ex transition period | true | ||
Entity small business | true | ||
Entity Shell Company | false | ||
Entity well-known seasoned issuer | No | ||
Entity voluntary filers | No | ||
Entity current reporting status | Yes | ||
Entity public float | $ 191,510,193 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 7,514,719 | $ 9,360,601 |
Accounts receivable, net | 17,171,777 | 16,957,044 |
Unbilled receivables | 1,004,447 | 884,104 |
Deferred commissions | 4,023,473 | 4,400,015 |
Prepaid expenses and other current assets | 1,977,662 | 1,715,534 |
Total current assets | 31,692,078 | 33,317,298 |
Property and equipment, net | 10,132,808 | 9,370,104 |
Goodwill | 43,731,942 | 43,768,269 |
Other intangibles, net | 3,953,582 | 4,999,885 |
Deferred commissions | 9,092,591 | 6,734,326 |
Deposits and other assets | 1,499,976 | 1,180,163 |
Total assets | 100,102,977 | 99,370,045 |
Current liabilities: | ||
Accounts payable | 2,473,289 | 2,650,582 |
Accrued expenses | 9,509,166 | 7,589,482 |
Current portion of capital lease obligations | 1,263,375 | 1,352,456 |
Deferred revenue | 35,039,155 | 37,812,239 |
Current portion of term loan, net of discount | 714,745 | 714,391 |
Total current liabilities | 48,999,730 | 50,119,150 |
Capital lease obligations, less current portion | 1,197,399 | 1,461,101 |
Deferred revenue, less current portion | 265,324 | 1,830,706 |
Term loan, net of discount, less current portion | 12,054,490 | 12,839,392 |
Revolving credit facility | 6,000,000 | 6,000,000 |
Other noncurrent liabilities | 1,808,479 | 1,619,744 |
Total liabilities | 70,325,422 | 73,870,093 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; issued and outstanding 27,841,498 and 27,288,985 shares at December 31, 2018 and December 31, 2017, respectively | 27,842 | 27,289 |
Additional paid-in capital | 208,349,895 | 195,203,097 |
Accumulated other comprehensive loss | (2,097,434) | (1,822,396) |
Accumulated deficit | (176,502,748) | (167,908,038) |
Total stockholders’ equity | 29,777,555 | 25,499,952 |
Total liabilities and stockholders’ equity | $ 100,102,977 | $ 99,370,045 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 27,841,498 | 27,288,985 |
Common stock, shares outstanding (in shares) | 27,841,498 | 27,288,985 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenue: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 85,166,053 | $ 79,076,110 | $ 73,161,190 | |
Cost of revenue | ||||
Cost of Goods and Services Sold | [1] | 38,151,009 | 37,741,567 | 35,736,401 |
Gross profit | 47,015,044 | 41,334,543 | 37,424,789 | |
Operating expenses | ||||
Sales and marketing | [1] | 22,949,487 | 22,526,535 | 22,637,984 |
Research and development | [1] | 14,664,843 | 14,941,394 | 16,794,516 |
General and administrative | [1] | 21,248,179 | 15,263,297 | 15,318,098 |
Total operating expenses | 58,862,509 | 52,731,226 | 54,750,598 | |
Loss from operations | (11,847,465) | (11,396,683) | (17,325,809) | |
Interest income | 8,741 | 4,806 | 57,126 | |
Interest expense | (1,271,786) | (976,834) | (862,321) | |
Loss before income taxes | (13,110,510) | (12,368,711) | (18,131,004) | |
Income tax expense | 492,010 | 608,775 | 595,722 | |
Net loss | $ (13,602,520) | $ (12,977,486) | $ (18,726,726) | |
Net loss per share (Note 10): | ||||
Basic and diluted (in dollars per share) | $ (0.49) | $ (0.47) | $ (0.70) | |
Weighted-average shares outstanding (Note 10): | ||||
Basic and diluted (in shares) | 27,825,795 | 27,415,953 | 26,718,882 | |
Technology Service [Member] | ||||
Cost of revenue | ||||
Cost of Goods and Services Sold | [1] | $ 16,593,215 | $ 16,590,148 | $ 15,813,562 |
Technology Services Revenue [Member] | ||||
Revenue: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 22,529,162 | 20,596,971 | 19,850,657 | |
License and Maintenance Revenue [Member] | ||||
Revenue: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 62,636,891 | 58,479,139 | 53,310,533 | |
Cost of revenue | ||||
Cost of Goods and Services Sold | [1] | $ 21,557,794 | $ 21,151,419 | $ 19,922,839 |
[1] | (1) Includes stock-based compensation as follows: Year Ended December 31, 2018 2017 2016 Cost of subscription revenue $ 895,477 $ 767,877 $ 810,455 Cost of professional services revenue 661,499 549,378 480,160 Sales and marketing 1,435,055 1,015,307 872,899 Research and development 2,036,305 1,404,771 1,161,422 General and administrative 7,246,830 2,340,536 2,142,954 $ 12,275,166 $ 6,077,869 $ 5,467,890 |
Consolidated Statements of Op_2
Consolidated Statements of Operations Stock Compensation Allocation - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 12,275,166 | $ 6,077,869 | $ 5,467,890 |
Cost of Subscription Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 895,477 | 767,877 | 810,455 |
Cost of Professional Services [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 661,499 | 549,378 | 480,160 |
Selling and Marketing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 1,435,055 | 1,015,307 | 872,899 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 2,036,305 | 1,404,771 | 1,161,422 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 7,246,830 | $ 2,340,536 | $ 2,142,954 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss Statement - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (13,602,520) | $ (12,977,486) | $ (18,726,726) |
Other comprehensive income (loss): | |||
Foreign currency translation | (275,038) | (485,604) | (553,583) |
Total other comprehensive income (loss) | (275,038) | (485,604) | (553,583) |
Comprehensive loss | $ (13,877,558) | $ (13,463,090) | $ (19,280,309) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity Statement - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Contingent Consideration Classified as Equity [Member]Common Stock | Restricted Stock Units (RSUs) [Member]Common Stock |
Shares, beginning balance at Dec. 31, 2015 | 26,260,459 | ||||||
Stockholders' Equity, beginning balance at Dec. 31, 2015 | $ 44,496,315 | $ 26,261 | $ 181,457,089 | $ (783,209) | $ (136,203,826) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (18,726,726) | (18,726,726) | |||||
Other comprehensive loss | $ (553,583) | (553,583) | |||||
Exercise of common stock options (in shares) | 646,639 | 646,639 | |||||
Exercise of common stock options | $ 1,887,582 | $ 647 | 1,886,935 | ||||
Stock-based compensation expense | 5,467,890 | 5,467,890 | |||||
Issuance of common stock for vested restricted stock units (in shares) | 12,664 | ||||||
Issuance of common stock for vested restricted stock units | 0 | (12) | $ 12 | ||||
Stocked issued during period (in shares) | 6,506 | ||||||
Stock issued during period | 0 | (6) | $ 6 | ||||
Shares, ending balance at Dec. 31, 2016 | 26,926,268 | ||||||
Stockholders' Equity, ending balance at Dec. 31, 2016 | 32,571,478 | $ 26,926 | 188,811,896 | (1,336,792) | (154,930,552) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (12,977,486) | (12,977,486) | |||||
Other comprehensive loss | $ (485,604) | (485,604) | |||||
Exercise of common stock options (in shares) | 107,526 | 107,526 | |||||
Exercise of common stock options | $ 313,695 | $ 108 | 313,587 | ||||
Stock-based compensation expense | 6,077,869 | 6,077,869 | |||||
Issuance of common stock for vested restricted stock units (in shares) | 237,916 | ||||||
Issuance of common stock for vested restricted stock units | 0 | (238) | $ 238 | ||||
Stocked issued during period (in shares) | 17,275 | ||||||
Stock issued during period | 0 | (17) | $ 17 | ||||
Shares, ending balance at Dec. 31, 2017 | 27,288,985 | ||||||
Stockholders' Equity, ending balance at Dec. 31, 2017 | 25,499,952 | $ 27,289 | 195,203,097 | (1,822,396) | (167,908,038) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (13,602,520) | (13,602,520) | |||||
Other comprehensive loss | $ (275,038) | (275,038) | |||||
Exercise of common stock options (in shares) | 200,750 | 200,750 | |||||
Exercise of common stock options | $ 872,185 | $ 201 | 871,984 | ||||
Stock-based compensation expense | 12,275,166 | 12,275,166 | |||||
Issuance of common stock for vested restricted stock units (in shares) | 351,763 | ||||||
Issuance of common stock for vested restricted stock units | 0 | (352) | $ 352 | ||||
Shares, ending balance at Dec. 31, 2018 | 27,841,498 | ||||||
Stockholders' Equity, ending balance at Dec. 31, 2018 | $ 29,777,555 | $ 27,842 | $ 208,349,895 | $ (2,097,434) | $ (176,502,748) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Cash flows from operating activities: | |||
Net loss | $ (13,602,520) | $ (12,977,486) | $ (18,726,726) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 4,979,615 | 5,386,789 | 6,590,343 |
Bad debt expense | 195,372 | 568,193 | 509,454 |
Stock-based compensation | 12,275,166 | 6,077,869 | 5,467,890 |
Acquisition related deferred compensation | 0 | 0 | 1,419,885 |
Changes in fair value of contingent consideration liability | 0 | 18,525 | 30,469 |
Amortization of Debt Discount (Premium) | 35,608 | 37,884 | 62,914 |
Changes in operating assets and liabilities: | |||
Accounts receivable and unbilled receivables | (577,960) | 1,615,836 | (1,213,717) |
Prepaid expenses and other assets | (881,663) | 1,313,029 | (1,437,777) |
Accounts payable | (193,706) | (166,898) | 1,284,742 |
Accrued expenses | 2,055,400 | (2,988,525) | 4,228,119 |
Payment for Contingent Consideration Liability, Operating Activities | 0 | (2,366,469) | 0 |
Other liabilities | 215,162 | (209,859) | (2,084,343) |
Deferred revenue | (952,042) | 3,021,248 | 3,702,924 |
Net cash provided by (used in) operating activities | 3,548,432 | (669,864) | (165,823) |
Cash flows from investing activities: | |||
Capital expenditures | (219,945) | (257,893) | (231,979) |
Addition of capitalized software development costs | (3,214,896) | (1,458,495) | (2,286,778) |
Addition of intangible assets | 0 | 0 | (275,000) |
Cash paid for deposits | (119,036) | (190,752) | (118,993) |
Net cash used in investing activities | (3,553,877) | (1,907,140) | (2,912,750) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit | 23,850,000 | 24,350,000 | 20,250,000 |
Payments on revolving line of credit | (23,850,000) | (24,350,000) | (19,250,000) |
Payments on term loan | (750,000) | (656,250) | (375,000) |
Debt financing costs | (70,156) | (35,701) | 0 |
Repayments on capital lease obligations | (1,497,865) | (1,556,097) | (1,425,882) |
Proceeds from the exercise of stock options | 872,185 | 313,695 | 1,887,582 |
Payment for Contingent Consideration Liability, Financing Activities | 0 | (1,308,525) | 0 |
Net cash used in financing activities | (1,445,836) | (3,242,878) | 1,086,700 |
Effect of exchange rate on cash, cash equivalents and restricted cash | (394,601) | (227,391) | (567,611) |
Net decrease in cash, cash equivalents and restricted cash | (1,845,882) | (6,047,273) | (2,559,484) |
Cash, cash equivalents and restricted cash at end of period | 9,417,001 | 15,464,274 | 18,023,758 |
Cash, cash equivalents and restricted cash at beginning of period | 7,571,119 | 9,417,001 | 15,464,274 |
Cash and cash equivalents | 7,514,719 | 9,360,601 | 15,408,133 |
Restricted Cash | 56,400 | 56,400 | 56,141 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 1,236,178 | 938,949 | 790,338 |
Non-cash property and equipment acquired under capital lease | 1,145,082 | 1,936,990 | 834,432 |
Non-cash property and equipment purchases in accounts payable | $ 136,623 | $ 0 | $ 22,454 |
Background
Background | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Liquidity | Amber Road, Inc. (we, our or us) is a leading provider of a cloud-based global trade management solutions, including modules for logistics contract and rate management, supply chain visibility and event management, international trade compliance, Global Knowledge trade content database, supply chain collaboration with overseas factories and vendors, and duty management solutions to importers and exporters, nonvessel owning common carriers (resellers), and ocean carriers. Our solutions are primarily delivered using an on-demand, cloud-based, delivery model. We are incorporated in the state of Delaware and our corporate headquarters are located in East Rutherford, New Jersey. We also have offices in McLean, Virginia; Raleigh, North Carolina; Munich, Germany; Bangalore, India; Shenzhen and Shanghai, China; and Hong Kong. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies and Practices Basis of Presentation and Principles of Consolidation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include our accounts and those of our wholly owned subsidiaries primarily located in India, China and Europe. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the carrying amount of intangibles and goodwill; valuation allowance for receivables and deferred income taxes; revenue; capitalization of software costs; and valuation of share-based payments. Actual results could differ from those estimates. Foreign Currency The assets and liabilities of our foreign operations are translated into U.S. dollars at current exchange rates as of the balance sheet date, and revenues and expenses are translated at average exchange rates for the period. Resulting translation adjustments are reflected in accumulated other comprehensive loss, which is a separate component of stockholders’ equity. Transaction gains and losses included in the consolidated statement of operations for the years ended December 31, 2018, 2017, and 2016 were not material. Cash and Cash Equivalents We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents at December 31, 2018 and December 31, 2017 consist of the following: December 31, 2018 2017 Cash $ 7,471,075 $ 9,318,074 Money market accounts 43,644 42,527 $ 7,514,719 $ 9,360,601 Fair Value of Financial Instruments and Fair Value Measurements Our financial instruments consist of cash equivalents, accounts receivable, accounts payable, and accrued expenses. Management believes that the carrying values of these instruments are representative of their fair value due to the relatively short-term nature of those instruments. Our estimate of fair value for financial assets and financial liabilities is based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. Management determines fair value using the following hierarchy: Level 1 — Quoted prices in active markets for identical assets or liabilities; Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; or Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table provides the financial assets and liabilities classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. December 31, 2018 2017 Assets: Cash equivalents - money market accounts $ 43,644 $ 42,527 Restricted cash - money market accounts 56,400 56,400 Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical write-off experience, the industry, and the economy. We review our allowance for doubtful accounts monthly. Past-due balances over 90 days and over a specified amount are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance-sheet credit exposure related to our customers. Typically, we record unbilled receivables for contracts on which revenue has been recognized, but for which the customer has not yet been billed. The table below presents the changes in the allowance for doubtful accounts: Year Ended December 31, 2018 2017 2016 Beginning balance $ 530,895 $ 410,560 $ 153,543 Provision for doubtful accounts 195,372 568,193 509,454 Write-offs, net of recoveries (110,323) (447,858) (252,437) Ending balance $ 615,944 $ 530,895 $ 410,560 Major Customers and Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Our customer base is principally comprised of enterprise and mid-market companies within industries including Chemical/Pharmaceutical, High Technology/Electronics, Industrial/Manufacturing, Logistics, Oil & Gas, and Retail/Apparel. We do not require collateral from our customers. As of December 31, 2018, and 2017, no single customer accounted for more than 10% of our accounts receivable. For the years ended December 31, 2018 and 2017, one customer accounted for 10.5% and 11.0%, respectively, of our total revenue. For the year ended December 31, 2016, no single customer accounted for more than 10% of our total revenue. Prepaid Expense and Other Current Assets Prepaid expenses and other current assets as of December 31, 2018 and 2017 primarily consist of annual prepaid license and maintenance fees related to our internal software licenses, and prepaid marketing fees. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Equipment acquired under capital leases is recorded at the present value of the minimum lease payments and subsequently depreciated based on its classification below. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Estimated Useful Life Computers and equipment 3 – 5 years Software 3 – 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of the estimated useful life or the remaining lease term Goodwill Goodwill represents the excess of costs over the fair value of the assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the provisions of Accounting Standards Codification (ASC) 350, Intangibles — Goodwill and Other (ASC 350). To accomplish this, we are required to identify our reporting units and determine the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units as of the annual impairment testing date. Management has determined that we operate in one reporting unit. Management is required to determine the fair value of our reporting unit and compare it to the carrying amount of the reporting unit on the annual impairment testing date. To the extent the carrying amount of the reporting unit exceeds the fair value of the reporting unit, we would be required to perform the second step of the annual impairment test, as this is an indication that the reporting unit goodwill may be impaired. We performed our annual impairment test as of December 31, 2018, and the second step was not required as the fair value exceeded the carrying value. Other Intangibles Other intangibles, net of accumulated amortization, are primarily the result of the allocation of the purchase price related to businesses acquired. Each intangible asset acquired is being amortized on a basis consistent with the utilization of the assets over their estimated useful lives and is reviewed for impairment in accordance with ASC 350. Impairment of Long-Lived Assets In accordance with ASC 350, Long-Lived Assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, then an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the years ended December 31, 2018, 2017, and 2016, management believes that no revision of the remaining useful lives or write-down of long-lived assets is required. Income Taxes Income taxes are accounted for under the provisions of ASC Topic 740, Income Taxes (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Revenue from Contracts with Customers Adoption of Accounting Standards Codification Topic 606 Effective January 1, 2018, we adopted the requirements of ASC Topic 606, Revenue from Contracts with Customers (ASC 606), and all the related amendments (the new revenue standard) using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit as of the adoption date. The comparative information for 2017 and 2016 has not been restated and continues to be reported under the accounting standards in effect for that period. The adoption of the new standard reduced revenue due to the loss of services revenue from professional services billings delivered as of December 31, 2017 for on-premise installations of our software. Under the previous standard, revenue from these billings were deferred and amortized ratably over the subscription term of the related contract. Under the new standard, billings for professional services related to on-premise software installations are being recognized as revenue as services are performed. As the professional services were delivered previous to December 31, 2017, the amount included in deferred revenue as of that date will not be recognized in 2018 and beyond. Revenue Recognition We primarily generate revenue from the sale of subscriptions and subscription-related professional services. In instances involving subscriptions, revenue is generated under customer contracts with multiple elements, which are comprised of (1) subscription fees that provide the customers with access to our on-demand application and content, unspecified solution and content upgrades, and customer support, (2) professional services associated with consulting services (primarily implementation services), and (3) transaction-related fees (including publishing services). Our initial customer contracts usually have contract terms from 3 years to 5 years in length. Typically, the customer does not take possession of the software nor does the customer have the right to take possession of the software supporting the on-demand application service. However, in certain instances, we have customers that take possession of the software whereby the application is installed on the customer’s premises. Our subscription service arrangements typically may only be terminated for cause and do not contain refund provisions. We determine revenue recognition through the following steps: • 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 • Recognition of revenue when, or as, we satisfy a performance obligation The subscription fees typically begin the first month following contract execution, whether or not we have completed the solution’s implementation. Subscription Revenue for Hosted and On-Premise Customers Subscription revenue, which primarily consists of fees to provide customers access to our solution, is recognized ratably over contract terms beginning on the commencement date of each contract, which is the date our service is made available to customers. For contracts in which the customer takes possession of the software, we determined that the software license and related content updates are one performance obligation and accordingly, recognize the arrangement fee over the contract term. Typically, amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Transaction-related revenue is recognized as the transactions occur. Professional Services Revenue for Hosted Customers Professional services revenue primarily consists of fees for deployment of our solution. The majority of professional services contracts are on a time and material basis. When these services are not combined with subscription revenue as a single unit of accounting, as discussed below, this revenue is recognized as the services are rendered for time and material contracts, and when the milestones are achieved and accepted by the customer for fixed price contracts. Professional Services Revenue for On-Premise Customers For customers that take possession of the software, billings for professional services will be recognized as revenue when services are performed, unlike under the previous standard where revenue from these billings was deferred and amortized ratably over the subscription term of the related contract. The adoption of ASC 606 will reduce revenue due to the loss of deferred services revenue from professional services billings delivered prior to December 31, 2017 for on-premise installations of our software. Deferred revenue associated with on-premise professional services at December 31, 2017 will not be amortized in 2018 and beyond. Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations that generally include subscription, professional services (primarily implementation) as well as transaction-related fees. For contracts with customers, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the solution sold, taking into account the modules included, term of the arrangement, and base transaction volume, customer demographics, and geographic locations. Other Revenue Items Sales tax collected from customers and remitted to governmental authorities is accounted for on a net basis and, therefore, is not included in revenue and cost of revenue in the consolidated statements of operations. We classify customer reimbursements received for direct costs paid to third parties and related expenses as revenue, in accordance with ASC 606. Costs to Obtain and Fulfill a Contract We defer commission costs that are incremental and directly related to the acquisition of customer contracts. Commission costs are accrued and deferred upon execution of the sales contract by the customer. Payments to sales personnel are made shortly after the receipt of the related customer payment. Under ASC 606, deferred commissions are amortized over an estimated customer life of 6 years, which differs from the previous standard whereby deferred commissions were amortized over the initial customer contract term. We determined the period of amortization of deferred commissions under ASC 606 by taking into consideration our customer contracts, our technology and other factors. Our commission costs deferred and amortized in the period are as follows: Year Ended December 31, 2018 2017 2016 Commission costs deferred $ 4,509,044 $ 3,855,517 $ 6,436,699 Commission costs amortized 4,176,008 5,188,472 4,744,353 Financial Statement Impact of Adopting ASC 606 We adopted ASC 606 using the modified retrospective method. The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the following balance sheet accounts as follows: As Reported Adjustments As Adjusted December 31, Subscription Revenue Professional Services Revenue Cost to Obtain January 1, 2018 Deferred commissions, current $ 4,400,015 $ — $ — $ (562,607) $ 3,837,408 Deferred commissions, non-current 6,734,326 — — 2,211,294 8,945,620 Deferred revenue, current 37,812,239 229,093 (2,170,118) — 35,871,214 Deferred revenue, non-current 1,830,706 — (1,418,098) — 412,608 Accumulated deficit (167,908,038) (229,093) 3,588,216 1,648,687 (162,900,228) Impact of New Revenue Standard on Financial Statement Line Items In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated balance sheet as of December 31, 2018 and our consolidated statement of operations for the year ended December 31, 2018 is as follows: December 31, 2018 As Reported Balance Without Adoption of ASC 606 Effect of Change Higher/(Lower) Balance Sheet Deferred commissions, current $ 4,023,473 $ 4,277,548 $ (254,075) Deferred commissions, non-current 9,092,591 6,512,449 2,580,142 Deferred revenue, current 35,039,155 36,776,692 1,737,537 Deferred revenue, non-current 265,324 1,640,285 1,374,961 Accumulated deficit (176,502,748) (181,941,313) 5,438,565 For the Year Ended As Reported Balance Without Adoption of ASC 606 Effect of Change Higher/(Lower) Statement of Operations Subscription revenue $ 62,636,891 $ 62,503,226 $ 133,665 Professional services revenue 22,529,162 22,909,452 (380,290) Sales and marketing 22,949,487 23,626,867 677,380 Net loss (13,602,520) (14,033,275) 430,755 Deferred Revenue and Performance Obligations Deferred revenue from subscriptions represents amounts collected from (or invoiced to) customers in advance of earning subscription revenue. Typically, we bill our annual subscription fees in advance of providing the service. Deferred revenue from professional services represents revenue for time and material contracts where the revenue is recognized when milestones are achieved and accepted by the customer for fixed price contracts. December 31, 2018 2017 Subscription revenue $ 34,849,486 $ 35,247,750 Professional services revenue 189,669 2,564,489 Total current 35,039,155 37,812,239 Noncurrent: Subscription revenue 265,324 412,608 Professional services revenue — 1,418,098 Total noncurrent 265,324 1,830,706 Total deferred revenue $ 35,304,479 $ 39,642,945 The amount of subscription revenue and professional services revenue recognized that was included in the beginning balance of deferred revenue is as follows: Year Ended December 31, 2018 2017 Subscription revenue $ 36,666,119 $ 33,769,230 Professional services revenue 569,765 2,138,892 As of December 31, 2018, $130,911,857 of revenue is expected to be recognized from remaining performance obligations for subscription contracts and is expected to be recognized over the next 5.7 years. Remaining performance obligations for professional services contracts are recognized within one year or less. Cost of Revenue Cost of subscription revenue . Cost of subscription revenue consists primarily of personnel and related costs of our hosting, support, and content teams, including salaries, benefits, bonuses, payroll taxes, stock-based compensation and allocated overhead, as well as software license fees, hosting costs, Internet connectivity, and depreciation expenses directly related to delivering our solutions, as well as amortization of capitalized software development costs. Our cost of subscription revenue is generally expensed as the costs are incurred. Cost of professional services revenue . Cost of professional services revenue consists primarily of personnel and related costs, including salaries, benefits, bonuses, payroll taxes, stock-based compensation, the costs of contracted third-party vendors, reimbursable expenses and allocated overhead. As our personnel are employed on a full-time basis, our cost of professional services is largely fixed in the short term, while our professional services revenue may fluctuate, leading to fluctuations in professional services gross profit. Cost of professional services revenue is generally expensed as costs are incurred. Stock-Based Compensation In accordance with the guidance for stock-based compensation, we measure all employee stock-based compensation awards using a fair value method and record the related expense in our consolidated statement of operations. Segments We have one operating segment. Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis. Geographic Information Disaggregation of Revenue We sell our subscription contracts and related professional services to customers primarily in two geographical markets. Revenue by geographic location based on the billing address of our customers is as follows: Year Ended December 31, Country 2018 2017 2016 United States $ 64,136,564 $ 59,905,306 $ 57,586,112 International 21,029,489 19,170,804 15,575,078 Total revenue $ 85,166,053 $ 79,076,110 $ 73,161,190 No single country other than the United States had revenue greater than 10% of total revenue for the years ended December 31, 2018, 2017, and 2016. Long-lived assets by geographic area is as follows: December 31, Country 2018 2017 United States $ 9,310,108 $ 8,535,281 International 822,700 834,823 Total long-lived assets $ 10,132,808 $ 9,370,104 Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. We intend to early adopt this standard on January 1, 2019 and believe it will not have a material effect on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash, which amends ASC 230, Statement of Cash Flows. This ASU requires that a statement of cash flows explain the change during the reporting period in the total of cash, cash equivalents, and restricted cash or restricted cash equivalents. We adopted this standard on January 1, 2018 using the retrospective transition approach. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends ASC 230, Statement of Cash Flows. This ASU provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. The adoption of this standard on January 1, 2018 did not have a material effect on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. We will adopt this standard on January 1, 2019 on a modified retrospective basis and will not restate comparative amounts. We will elect the practical expedients permitted under the transition guidance, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for any leases that exist prior to adoption of the new standard. We will also elect to combine lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We believe the most significant changes will be related to |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Consolidated Balance Sheet Components | December 31, 2018 2017 Computer software and equipment $ 15,674,596 $ 14,296,247 Software development costs 15,300,893 13,980,872 Furniture and fixtures 1,713,226 1,741,918 Leasehold improvements 2,643,337 2,546,686 Total property and equipment 35,332,052 32,565,723 Less: accumulated depreciation and amortization (25,199,244) (23,195,619) Total property and equipment, net $ 10,132,808 $ 9,370,104 Depreciation and amortization expense for the years ended December 31, 2018, 2017, and 2016 were $3,941,643, $4,271,381, and $5,068,786, respectively. Certain development costs of our software solution are capitalized in accordance with ASC Topic 350-40, Internal Use Software, which outlines the stages of computer software development and specifies when capitalization of costs is required. Projects that are determined to be in the development stage are capitalized and amortized over their useful lives of five years. Projects that are determined to be within the preliminary stage are expensed as incurred. Information related to capitalized software costs is as follows: Year Ended December 31, 2018 2017 2016 Software costs capitalized $ 3,214,896 $ 1,458,495 $ 2,286,778 Software costs amortized (1) 1,800,868 2,143,039 1,970,150 (1) Included in cost of subscription revenue on the accompanying consolidated statements of operations. December 31, 2018 2017 Capitalized software costs not yet subject to amortization $ 2,372,042 $ 824,738 |
Accrued Expenses (Notes)
Accrued Expenses (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | (4) Accrued Expenses December 31, 2018 2017 Accrued bonus $ 3,648,837 $ 1,980,218 Accrued commission 2,466,219 1,901,132 Deferred rent 423,301 380,077 Accrued professional fees 935,881 712,345 Accrued taxes 745,105 805,555 Other accrued expenses 1,289,823 1,810,155 Total $ 9,509,166 $ 7,589,482 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Other intangibles are comprised of the following: Amortization December 31, 2018 2017 Acquired technology 3 - 8 years $ 5,397,600 $ 5,397,600 Customer related intangibles 10 - 15 years 3,960,200 3,960,200 Trademarks and licenses 5 - 7 years 1,137,000 1,137,000 Patents and other 2.3 years 28,130 41,741 10,522,930 10,536,541 Less: accumulated amortization (6,569,348) (5,536,656) $ 3,953,582 $ 4,999,885 Amortization expense was $1,037,972, $1,115,408, and $1,521,557 for the years ended December 31, 2018, 2017, and 2016, respectively. The estimated future amortization expense of other intangibles as of December 31, 2018 is as follows: 2019 $ 1,031,203 2020 929,606 2021 879,600 2022 809,719 2023 171,055 2024 and thereafter 92,399 $ 3,913,582 The rollforward of goodwill is as follows: Balance at December 31, 2016 $ 43,907,017 2017 activity (138,748) Balance at December 31, 2017 43,768,269 2018 activity (36,327) Balance at December 31, 2018 $ 43,731,942 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Loss before income taxes and income tax expense is comprised of the following: Year Ended December 31, 2018 2017 2016 Loss before income taxes: Domestic $ (13,547,014) $ (10,156,858) $ (14,562,851) Foreign 436,504 (2,211,853) (3,568,153) $ (13,110,510) $ (12,368,711) $ (18,131,004) Current provision: Federal $ — $ — $ — State 59,391 39,396 735 Foreign 432,619 569,379 594,987 $ 492,010 $ 608,775 $ 595,722 A reconciliation of the statutory U.S. federal tax rate to our effective rate is as follows: Year Ended December 31, 2018 2017 2016 Statutory U.S. federal tax rate (benefit) (21.0) % (35.0) % (35.0) % State income taxes, net of federal benefit 0.3 0.1 0.1 Foreign taxes 3.1 6.5 4.3 Stock-based compensation (4.8) (1.6) (3.3) Change in valuation allowance 21.8 (77.0) 37.5 Global intangible low-taxed income 0.5 — — Effect of tax reform — 108.7 — Non-deductible expenses and other 3.9 3.2 (0.3) Effective tax rate 3.8 % 4.9 % 3.3 % Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will not be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. We recorded a valuation allowance in the amount of $28,624,693 and $25,347,108 as of December 31, 2018 and 2017, respectively, as management believes it is more likely than not that we will not realize our net deferred tax assets. The net change in the valuation allowance during the years ended December 31, 2018 and 2017 was $3,277,585, and $(8,865,020), respectively. We have subsidiaries in India, the United Kingdom, Germany, Hong Kong and China. The India and Germany businesses are treated as branches for U.S. tax purposes. As such, all income attributable to the India and Germany branches are currently recognized in the U.S. The India and Germany branches also pay taxes locally in India and Germany. The foreign current taxes consist of taxes paid locally in the United Kingdom, Germany, and India. The state current taxes consist of taxes paid primarily for state taxes for a subsidiary. Deferred tax assets and liabilities are comprised of the following: December 31, 2018 2017 Deferred tax assets: Accrued bonuses $ 372,246 $ 393,274 Accounts receivable reserve 148,166 72,147 Deferred revenue 52,648 1,048,179 Interest expense carryover 313,812 — Net operating loss carryforward 25,053,247 24,720,025 Stock-based compensation 6,292,204 3,288,819 Other 757,647 268,281 Deferred tax assets $ 32,989,970 $ 29,790,725 Deferred tax liabilities: Deferred commissions $ (2,270,027) $ (2,171,927) Intangibles (493,580) (635,723) Property and equipment (1,584,915) (1,619,083) Other (16,755) (16,884) Deferred tax liabilities (4,365,277) (4,443,617) Less: valuation allowance (28,624,693) (25,347,108) Total $ — $ — We have a federal net operating loss (NOL) carryforward of $91,166,826 and $88,442,842 as of December 31, 2018 and 2017, respectively. The federal NOL carryforward will begin to expire in 2019. These NOLs may be subject to limitation under Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under the regulations. Under IRC section 382 of the Internal Revenue Code substantial changes in ownership may limit the amount of NOL carryforwards that may be utilized annually in the future to offset taxable income. We have completed an Internal Revenue Code section 382 study through June 30, 3016, which concluded that we have experienced several ownership changes, causing limitations on the annual use of the NOL carryforwards. Provided there is sufficient taxable income, $2,131,290 of the NOL carry forwards are expected to expire without utilization. Additionally, our ability to use our NOL carryforwards to reduce future taxable income may be further limited as a result of any future equity transactions, including, but not limited to, an issuance of shares of stock or sales of common stock by our existing stockholders. For state income tax purposes, we have NOL carryforwards in a number of jurisdictions in varying amounts and with varying expiration dates from 2019 through 2038. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that we will be able to sustain a position taken on an income tax return. We have no liability for uncertain positions. Interest and penalties, if any, related to unrecognized tax benefits, would be recognized as income tax expense. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Tax years 2015 and forward remain open for examination for federal tax purposes and tax years 2014 and forward remain open for examination for our more significant state tax jurisdictions. To the extent utilized in future years’ tax returns, NOL carryforwards at December 31, 2018 will remain subject to examination until the respective tax year is closed. On December 22, 2017, H.R. 1 (also, known as the Tax Cuts and Jobs Act (the Act)) was signed into law. Among its numerous changes to the Internal Revenue Code, the Act reduces U.S. federal corporate tax rate from 35% to 21%. As a result, we believe that the most significant impact on our consolidated financial statements was the reduction of approximately $13,400,000 for the deferred tax assets related to NOLs and other deferred tax assets as of December 31, 2018. Such reduction was offset by an equal reduction to our valuation allowance as of December 31, 2017. Additionally, we have full ownership of various foreign subsidiaries. At December 31, 2017 and November 2, 2017, the cumulative earnings and profits of these entities combined were negative. The Act also introduced a tax on global intangible low-taxed income (GILTI), which had no impact on the 2018 year. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | We have several noncancelable operating leases that expire through 2024. These leases generally contain renewal options for periods ranging from three five The carrying value of assets recorded under capital leases was $2,369,552 and $2,691,383 as of December 31, 2018 and December 31, 2017, respectively, which includes accumulated amortization of $7,238,896 and $6,864,443, respectively. Amortization of assets held under capital leases is allocated to various line items in the consolidated statements of operations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt In March 2015, we entered into a credit agreement (the Credit Agreement) providing for financing comprised of (i) a senior secured term loan facility (the Term Loan) of $20,000,000, and (ii) a senior secured revolving credit facility (the Revolver) that was subsequently amended to a borrowing limit of $15,000,000, and includes a $2,000,000 sublimit for the issuance of letters of credit. The Credit Agreement contains customary affirmative and negative covenants for financings of its type that are subject to customary exceptions. As of December 31, 2018, we were in compliance with all the reporting and financial covenants. In February 2017, the maturity date for both the Term Loan and the Revolver was extended to December 31, 2019. On December 26, 2018, we negotiated to extend the maturity date for both the Term Loan and the Revolver to December 31, 2021. The outstanding balance for the Term Loan as of December 31, 2018 was $12,769,235, net of unaccreted discount and deferred financing costs of $105,765, and the outstanding balance under the Revolver was $6,000,000. For the year ended December 31, 2018, the weighted average interest rate was 5.44% for the Term Loan and 6.16% for the Revolver. The following table reflects the schedule of principal payments for the Term Loan as of December 31, 2018: Principal 2019 $ 750,000 2020 750,000 2021 11,375,000 $ 12,875,000 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Common Stock In accordance with our Certificate of Incorporation, as amended and restated, we are authorized to issue 100,000,000 shares of $0.001 par value common stock. Each outstanding share of common stock entitles the holder to one vote. The holders of common stock are entitled to receive dividends, subject to preferential rights by holders of our preferred stock and if declared by our board of directors. As of December 31, 2018, no dividends have been declared. Preferred Stock In accordance with our Certificate of Incorporation, as amended and restated, we are authorized to issue 10,000,000 shares of $0.001 par value preferred stock, which may be issued in one or more series. At December 31, 2018, there are no shares of preferred stock issued. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-Based Compensation We grant stock-based incentive awards to attract, motivate and retain qualified employees (including officers), non-employee directors and consultants, and those of our affiliates. Awards granted under our 2012 Omnibus Incentive Compensation Plan (the 2012 Plan) include common stock options, restricted stock units (RSUs), performance-based restricted stock units (PSUs), and restricted stock awards. The 2002 Stock Option Plan (the 2002 Plan) expired in 2012 and we are no longer making grants under it. Information related to the 2012 Plan and the 2002 Plan as of December 31, 2018 is as follows: 2012 Plan 2002 Plan Shares of common stock authorized for issuance 9,646,696 4,939,270 Stock options outstanding 4,244,630 202,555 RSUs outstanding 1,189,899 — PSUs outstanding 248,440 — Shares available for future grant 2,678,243 — Stock Options The fair value of option grants is estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Year Ended December 31, 2018 2017 2016 Risk-free interest rate 2.71% 1.92% 1.29% Expected volatility 31.22% 32.66% 33.37% Expected dividend yield — — — Expected life in years 6.25 6.25 6.25 Weighted average fair value of options granted $3.63 $2.82 $1.32 The computation of expected volatility for each period is based on historical volatility of comparable public companies. The volatility percentage represents the mean volatility of these companies. The computation of expected life for each period was determined based on the simplified method. The risk-free interest rate is based on U.S. Treasury yields for zero-coupon bonds with a term consistent with the expected life of the options. The estimated forfeiture rate used in calculating compensation expense for options outstanding was 7.42% at December 31, 2018. Information relative to the 2002 Plan and the 2012 Plan related to options is as follows: Options Outstanding Weighted Average Exercise Price Balance at December 31, 2015 4,402,943 $9.38 Granted 248,728 3.74 Exercised (646,639) 2.92 Canceled (85,287) 9.04 Expired (62,914) 5.77 Balance at December 31, 2016 3,856,831 9.99 Granted 1,050,654 7.86 Exercised (107,526) 2.92 Canceled (59,341) 9.94 Expired (107,964) 11.11 Balance at December 31, 2017 4,632,654 9.79 Granted 195,150 9.88 Exercised (200,750) 4.34 Canceled (107,408) 7.50 Expired (72,461) 13.00 Balance at December 31, 2018 4,447,185 10.04 December 31, 2018 2017 Total intrinsic value of options exercised $ 1,024,970 $ 415,374 Weighted average exercise price of fully vested options $ 10.56 $ 10.43 Weighted average remaining term of fully vested options 5.8 years 6.4 years Total unrecognized compensation cost related to non-vested stock options $ 2,153,120 $ 5,116,640 Weighted average period to recognize compensation cost related to non-vested stock options 2.5 years 2.1 years Information with respect to the options outstanding and exercisable under the 2002 Plan and the 2012 Plan at December 31, 2018 is as follows: Options Outstanding Options Exercisable Exercise Price Options Weighted Intrinsic Options Weighted Intrinsic $ 2.31 - $ 3.74 . 349,100 4.8 years $ 1,857,113 288,148 4.3 years $ 1,583,438 4.13 - 7.20 . 682,173 7.1 years 1,060,778 388,121 6.2 years 728,740 8.07 - 12.62 . 1,460,754 7.2 years 123,570 907,504 6.5 years 108,744 13.00 - 15.90 . 1,955,158 5.6 years — 1,955,158 5.6 years — 4,447,185 $ 3,041,461 3,538,931 $ 2,420,922 Restricted Stock Units and Performance Stock Units Information relative to the 2012 Plan for RSUs and PSUs is as follows: Number Number Total Weighted Balance at December 31, 2015 81,977 310,545 392,522 $15.27 Granted 666,018 — 666,018 3.91 Vested (83,377) — (83,377) 8.11 Canceled (64,652) (30,298) (94,950) 5.44 Balance at December 31, 2016 599,966 280,247 880,213 5.20 Granted 593,580 198,440 792,020 8.29 Vested (343,146) — (343,146) 3.84 Canceled (38,138) (12,188) (50,326) 6.87 Balance at December 31, 2017 812,262 466,499 1,278,761 7.41 Granted 708,351 50,000 758,351 9.65 Vested (288,829) — (288,829) 6.66 Canceled (41,885) (268,059) (309,944) 8.16 Balance at December 31, 2018 1,189,899 248,440 1,438,339 8.58 December 31, Total unrecognized compensation cost related to non-vested combined RSU/PSU $8,884,054 Weighted average period to recognize compensation cost related to non-vested combined RSU/PSU 2.6 years |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share: Year Ended December 31, 2018 2017 2016 Numerator: Net loss $ (13,602,520) $ (12,977,486) $ (18,726,726) Denominator: Weighted average shares used in computing net loss 27,825,795 27,415,953 26,718,882 Basic and diluted net loss per share $ (0.49) $ (0.47) $ (0.70) Diluted net loss per share does not include the effect of the following antidilutive common equivalent shares: Year Ended December 31, 2018 2017 2016 Stock options outstanding 4,447,185 4,632,654 3,856,831 Restricted stock and performance stock units 1,438,339 1,278,761 880,213 5,885,524 5,911,415 4,737,044 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Employment Agreements On May 5, 2016, we entered into an employment agreement with our Chief Executive Officer and President, James W. Preuninger, which is identical to his previous employment agreement in all respects, with the following exceptions, (i) a term of employment through December 31, 2018 with successive two six twelve twenty-four Legal Proceedings We are involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our financial position, results of operations, or liquidity. Other Under the indemnification clauses of our standard customer agreements, we guarantee to defend and indemnify the customer against any claim based upon any failure to satisfy the warranty set forth in the contract associated with infringements of any patent, copyright, trade secret, or other intellectual property right. We do not expect to incur any infringement liability as a result of the customer indemnification clauses. |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plan | We have a retirement savings plan under Section 401(k) of the Internal Revenue Code (the 401(k) Plan). We did not make any matching contributions to the 401(k) Plan during the years ended December 31, 2018, 2017, and 2016. |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) The following is a summary of our quarterly results of operations for the years ended December 31, 2018 and 2017: March 31, June 30, September 30, December 31, Revenues $ 20,064,392 $ 21,056,355 $ 22,160,998 $ 21,884,308 Gross profit 10,412,725 11,270,420 12,700,303 12,631,596 Loss from operations (3,992,726) (3,683,398) (1,836,609) (1,883,950) Net loss (5,413,837) (3,951,240) (1,614,770) (2,622,673) Net loss per share—basic and diluted $(0.20) $(0.14) $(0.06) $(0.09) March 31, June 30, September 30, December 31, Revenues $ 18,554,556 $ 19,675,285 $ 20,213,250 $ 20,633,019 Gross profit 9,152,782 9,765,196 11,062,248 11,354,317 Loss from operations (4,988,150) (3,536,647) (1,179,345) (2,143,323) Net loss (4,413,196) (4,517,471) (2,237,703) (1,809,116) Net loss per share—basic and diluted $(0.16) $(0.16) $(0.08) $(0.07) (1) During the third quarter of 2018, we revised previously reported stock-based compensation expense for the quarters ended March 31, 2018 and June 30, 2018 related to certain performance stock units due to a change in performance conditions. In accordance with Staff Accounting Bulletin (SAB) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, management evaluated the materiality of the error from qualitative and quantitative perspectives, and concluded the error was immaterial to the prior periods. The correction of the immaterial error resulted in an increase of $2,246,644 and $747,119 to stock-based compensation for the three months ended March 31, 2018 and June 30, 2018, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include our accounts and those of our wholly owned subsidiaries primarily located in India, China and Europe. All significant intercompany balances and transactions have been eliminated in consolidation. |
Principles of Consolidation | Basis of Presentation and Principles of Consolidation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and include our accounts and those of our wholly owned subsidiaries primarily located in India, China and Europe. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the carrying amount of intangibles and goodwill; valuation allowance for receivables and deferred income taxes; revenue; capitalization of software costs; and valuation of share-based payments. Actual results could differ from those estimates. |
Foreign Currency | Foreign CurrencyThe assets and liabilities of our foreign operations are translated into U.S. dollars at current exchange rates as of the balance sheet date, and revenues and expenses are translated at average exchange rates for the period. Resulting translation adjustments are reflected in accumulated other comprehensive loss, which is a separate component of stockholders’ equity. Transaction gains and losses included in the consolidated statement of operations for the years ended December 31, 2018, 2017, and 2016 were not material. |
Cash and Cash Equivalents | Cash and Cash EquivalentsWe consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. |
Fair Value of Financial Instruments and Fair Value Measurements | Fair Value of Financial Instruments and Fair Value Measurements Our financial instruments consist of cash equivalents, accounts receivable, accounts payable, and accrued expenses. Management believes that the carrying values of these instruments are representative of their fair value due to the relatively short-term nature of those instruments. Our estimate of fair value for financial assets and financial liabilities is based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. Management determines fair value using the following hierarchy: Level 1 — Quoted prices in active markets for identical assets or liabilities; Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; or Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table provides the financial assets and liabilities classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical write-off experience, the industry, and the economy. We review our allowance for doubtful accounts monthly. Past-due balances over 90 days and over a specified amount are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have any off-balance-sheet credit exposure related to our customers. Typically, we record unbilled receivables for contracts on which revenue has been recognized, but for which the customer has not yet been billed. |
Major Customer and Concentrations of Credit Risk | Major Customers and Concentrations of Credit RiskFinancial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Our customer base is principally comprised of enterprise and mid-market companies within industries including Chemical/Pharmaceutical, High Technology/Electronics, Industrial/Manufacturing, Logistics, Oil & Gas, and Retail/Apparel. We do not require collateral from our customers. As of December 31, 2018, and 2017, no single customer accounted for more than 10% of our accounts receivable. For the years ended December 31, 2018 and 2017, one customer accounted for 10.5% and 11.0%, respectively, of our total revenue. For the year ended December 31, 2016, no single customer accounted for more than 10% of our total revenue. |
Other Current Assets [Policy Text Block] | Prepaid Expense and Other Current Assets Prepaid expenses and other current assets as of December 31, 2018 and 2017 primarily consist of annual prepaid license and maintenance fees related to our internal software licenses, and prepaid marketing fees. |
Depreciation, Depletion, and Amortization [Policy Text Block] | Property and EquipmentProperty and equipment are stated at cost less accumulated depreciation and amortization. Equipment acquired under capital leases is recorded at the present value of the minimum lease payments and subsequently depreciated based on its classification below. |
Goodwill | Goodwill Goodwill represents the excess of costs over the fair value of the assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the provisions of Accounting Standards Codification (ASC) 350, Intangibles — Goodwill and Other (ASC 350). To accomplish this, we are required to identify our reporting units and determine the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units as of the annual impairment testing date. Management has determined that we operate in one reporting unit. |
Other Intangibles | Other Intangibles Other intangibles, net of accumulated amortization, are primarily the result of the allocation of the purchase price related to businesses acquired. Each intangible asset acquired is being amortized on a basis consistent with the utilization of the assets over their estimated useful lives and is reviewed for impairment in accordance with ASC 350. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with ASC 350, Long-Lived Assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, then an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the years ended December 31, 2018, 2017, and 2016, management believes that no revision of the remaining useful lives or write-down of long-lived assets is required. |
Income Taxes | Income Taxes Income taxes are accounted for under the provisions of ASC Topic 740, Income Taxes (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. |
Revenue | Revenue from Contracts with Customers Adoption of Accounting Standards Codification Topic 606 Effective January 1, 2018, we adopted the requirements of ASC Topic 606, Revenue from Contracts with Customers (ASC 606), and all the related amendments (the new revenue standard) using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit as of the adoption date. The comparative information for 2017 and 2016 has not been restated and continues to be reported under the accounting standards in effect for that period. The adoption of the new standard reduced revenue due to the loss of services revenue from professional services billings delivered as of December 31, 2017 for on-premise installations of our software. Under the previous standard, revenue from these billings were deferred and amortized ratably over the subscription term of the related contract. Under the new standard, billings for professional services related to on-premise software installations are being recognized as revenue as services are performed. As the professional services were delivered previous to December 31, 2017, the amount included in deferred revenue as of that date will not be recognized in 2018 and beyond. Revenue Recognition We primarily generate revenue from the sale of subscriptions and subscription-related professional services. In instances involving subscriptions, revenue is generated under customer contracts with multiple elements, which are comprised of (1) subscription fees that provide the customers with access to our on-demand application and content, unspecified solution and content upgrades, and customer support, (2) professional services associated with consulting services (primarily implementation services), and (3) transaction-related fees (including publishing services). Our initial customer contracts usually have contract terms from 3 years to 5 years in length. Typically, the customer does not take possession of the software nor does the customer have the right to take possession of the software supporting the on-demand application service. However, in certain instances, we have customers that take possession of the software whereby the application is installed on the customer’s premises. Our subscription service arrangements typically may only be terminated for cause and do not contain refund provisions. We determine revenue recognition through the following steps: • 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 • Recognition of revenue when, or as, we satisfy a performance obligation The subscription fees typically begin the first month following contract execution, whether or not we have completed the solution’s implementation. Subscription Revenue for Hosted and On-Premise Customers Subscription revenue, which primarily consists of fees to provide customers access to our solution, is recognized ratably over contract terms beginning on the commencement date of each contract, which is the date our service is made available to customers. For contracts in which the customer takes possession of the software, we determined that the software license and related content updates are one performance obligation and accordingly, recognize the arrangement fee over the contract term. Typically, amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Transaction-related revenue is recognized as the transactions occur. Professional Services Revenue for Hosted Customers Professional services revenue primarily consists of fees for deployment of our solution. The majority of professional services contracts are on a time and material basis. When these services are not combined with subscription revenue as a single unit of accounting, as discussed below, this revenue is recognized as the services are rendered for time and material contracts, and when the milestones are achieved and accepted by the customer for fixed price contracts. Professional Services Revenue for On-Premise Customers For customers that take possession of the software, billings for professional services will be recognized as revenue when services are performed, unlike under the previous standard where revenue from these billings was deferred and amortized ratably over the subscription term of the related contract. The adoption of ASC 606 will reduce revenue due to the loss of deferred services revenue from professional services billings delivered prior to December 31, 2017 for on-premise installations of our software. Deferred revenue associated with on-premise professional services at December 31, 2017 will not be amortized in 2018 and beyond. Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations that generally include subscription, professional services (primarily implementation) as well as transaction-related fees. For contracts with customers, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the solution sold, taking into account the modules included, term of the arrangement, and base transaction volume, customer demographics, and geographic locations. Other Revenue Items Sales tax collected from customers and remitted to governmental authorities is accounted for on a net basis and, therefore, is not included in revenue and cost of revenue in the consolidated statements of operations. We classify customer reimbursements received for direct costs paid to third parties and related expenses as revenue, in accordance with ASC 606. Costs to Obtain and Fulfill a Contract We defer commission costs that are incremental and directly related to the acquisition of customer contracts. Commission costs are accrued and deferred upon execution of the sales contract by the customer. Payments to sales personnel are made shortly after the receipt of the related customer payment. Under ASC 606, deferred commissions are amortized over an estimated customer life of 6 years, which differs from the previous standard whereby deferred commissions were amortized over the initial customer contract term. We determined the period of amortization of deferred commissions under ASC 606 by taking into consideration our customer contracts, our technology and other factors. Our commission costs deferred and amortized in the period are as follows: Year Ended December 31, 2018 2017 2016 Commission costs deferred $ 4,509,044 $ 3,855,517 $ 6,436,699 Commission costs amortized 4,176,008 5,188,472 4,744,353 Financial Statement Impact of Adopting ASC 606 We adopted ASC 606 using the modified retrospective method. The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the following balance sheet accounts as follows: As Reported Adjustments As Adjusted December 31, Subscription Revenue Professional Services Revenue Cost to Obtain January 1, 2018 Deferred commissions, current $ 4,400,015 $ — $ — $ (562,607) $ 3,837,408 Deferred commissions, non-current 6,734,326 — — 2,211,294 8,945,620 Deferred revenue, current 37,812,239 229,093 (2,170,118) — 35,871,214 Deferred revenue, non-current 1,830,706 — (1,418,098) — 412,608 Accumulated deficit (167,908,038) (229,093) 3,588,216 1,648,687 (162,900,228) Impact of New Revenue Standard on Financial Statement Line Items In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated balance sheet as of December 31, 2018 and our consolidated statement of operations for the year ended December 31, 2018 is as follows: December 31, 2018 As Reported Balance Without Adoption of ASC 606 Effect of Change Higher/(Lower) Balance Sheet Deferred commissions, current $ 4,023,473 $ 4,277,548 $ (254,075) Deferred commissions, non-current 9,092,591 6,512,449 2,580,142 Deferred revenue, current 35,039,155 36,776,692 1,737,537 Deferred revenue, non-current 265,324 1,640,285 1,374,961 Accumulated deficit (176,502,748) (181,941,313) 5,438,565 For the Year Ended As Reported Balance Without Adoption of ASC 606 Effect of Change Higher/(Lower) Statement of Operations Subscription revenue $ 62,636,891 $ 62,503,226 $ 133,665 Professional services revenue 22,529,162 22,909,452 (380,290) Sales and marketing 22,949,487 23,626,867 677,380 Net loss (13,602,520) (14,033,275) 430,755 Deferred Revenue and Performance Obligations Deferred revenue from subscriptions represents amounts collected from (or invoiced to) customers in advance of earning subscription revenue. Typically, we bill our annual subscription fees in advance of providing the service. Deferred revenue from professional services represents revenue for time and material contracts where the revenue is recognized when milestones are achieved and accepted by the customer for fixed price contracts. December 31, 2018 2017 Subscription revenue $ 34,849,486 $ 35,247,750 Professional services revenue 189,669 2,564,489 Total current 35,039,155 37,812,239 Noncurrent: Subscription revenue 265,324 412,608 Professional services revenue — 1,418,098 Total noncurrent 265,324 1,830,706 Total deferred revenue $ 35,304,479 $ 39,642,945 The amount of subscription revenue and professional services revenue recognized that was included in the beginning balance of deferred revenue is as follows: Year Ended December 31, 2018 2017 Subscription revenue $ 36,666,119 $ 33,769,230 Professional services revenue 569,765 2,138,892 As of December 31, 2018, $130,911,857 of revenue is expected to be recognized from remaining performance obligations for subscription contracts and is expected to be recognized over the next 5.7 years. Remaining performance obligations for professional services contracts are recognized within one year or less. |
Cost of Revenue | Cost of Revenue Cost of subscription revenue . Cost of subscription revenue consists primarily of personnel and related costs of our hosting, support, and content teams, including salaries, benefits, bonuses, payroll taxes, stock-based compensation and allocated overhead, as well as software license fees, hosting costs, Internet connectivity, and depreciation expenses directly related to delivering our solutions, as well as amortization of capitalized software development costs. Our cost of subscription revenue is generally expensed as the costs are incurred. Cost of professional services revenue . Cost of professional services revenue consists primarily of personnel and related costs, including salaries, benefits, bonuses, payroll taxes, stock-based compensation, the costs of contracted third-party vendors, reimbursable expenses and allocated overhead. As our personnel are employed on a full-time basis, our cost of professional services is largely fixed in the short term, while our professional services revenue may fluctuate, leading to fluctuations in professional services gross profit. Cost of professional services revenue is generally expensed as costs are incurred. |
Stock-Based Compensation | Stock-Based Compensation |
Segments | Segments We have one operating segment. Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. We intend to early adopt this standard on January 1, 2019 and believe it will not have a material effect on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash, which amends ASC 230, Statement of Cash Flows. This ASU requires that a statement of cash flows explain the change during the reporting period in the total of cash, cash equivalents, and restricted cash or restricted cash equivalents. We adopted this standard on January 1, 2018 using the retrospective transition approach. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends ASC 230, Statement of Cash Flows. This ASU provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. The adoption of this standard on January 1, 2018 did not have a material effect on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. We will adopt this standard on January 1, 2019 on a modified retrospective basis and will not restate comparative amounts. We will elect the practical expedients permitted under the transition guidance, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for any leases that exist prior to adoption of the new standard. We will also elect to combine lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. We believe the most significant changes will be related to |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Practices (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Long-lived Assets by Geographic Areas [Table Text Block] | |
Fair Value Measurements, Nonrecurring [Table Text Block] | December 31, 2018 2017 Assets: Cash equivalents - money market accounts $ 43,644 $ 42,527 Restricted cash - money market accounts 56,400 56,400 |
Capitalized Contract Cost [Table Text Block] | Our commission costs deferred and amortized in the period are as follows: Year Ended December 31, 2018 2017 2016 Commission costs deferred $ 4,509,044 $ 3,855,517 $ 6,436,699 Commission costs amortized 4,176,008 5,188,472 4,744,353 |
Summary of Cash and Cash Equivalents | Cash and cash equivalents at December 31, 2018 and December 31, 2017 consist of the following: December 31, 2018 2017 Cash $ 7,471,075 $ 9,318,074 Money market accounts 43,644 42,527 $ 7,514,719 $ 9,360,601 |
Schedule of Changes in Allowance for Doubtful Accounts | The table below presents the changes in the allowance for doubtful accounts: Year Ended December 31, 2018 2017 2016 Beginning balance $ 530,895 $ 410,560 $ 153,543 Provision for doubtful accounts 195,372 568,193 509,454 Write-offs, net of recoveries (110,323) (447,858) (252,437) Ending balance $ 615,944 $ 530,895 $ 410,560 |
Property Plant Equipment | Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows: Asset Classification Estimated Useful Life Computers and equipment 3 – 5 years Software 3 – 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of the estimated useful life or the remaining lease term |
Deferred Revenue and Remaining performance obligations | The amount of subscription revenue and professional services revenue recognized that was included in the beginning balance of deferred revenue is as follows: Year Ended December 31, 2018 2017 Subscription revenue $ 36,666,119 $ 33,769,230 Professional services revenue 569,765 2,138,892 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the following balance sheet accounts as follows: As Reported Adjustments As Adjusted December 31, Subscription Revenue Professional Services Revenue Cost to Obtain January 1, 2018 Deferred commissions, current $ 4,400,015 $ — $ — $ (562,607) $ 3,837,408 Deferred commissions, non-current 6,734,326 — — 2,211,294 8,945,620 Deferred revenue, current 37,812,239 229,093 (2,170,118) — 35,871,214 Deferred revenue, non-current 1,830,706 — (1,418,098) — 412,608 Accumulated deficit (167,908,038) (229,093) 3,588,216 1,648,687 (162,900,228) |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue We sell our subscription contracts and related professional services to customers primarily in two geographical markets. Revenue by geographic location based on the billing address of our customers is as follows: Year Ended December 31, Country 2018 2017 2016 United States $ 64,136,564 $ 59,905,306 $ 57,586,112 International 21,029,489 19,170,804 15,575,078 Total revenue $ 85,166,053 $ 79,076,110 $ 73,161,190 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment Depreciable Useful Lives | December 31, 2018 2017 Computer software and equipment $ 15,674,596 $ 14,296,247 Software development costs 15,300,893 13,980,872 Furniture and fixtures 1,713,226 1,741,918 Leasehold improvements 2,643,337 2,546,686 Total property and equipment 35,332,052 32,565,723 Less: accumulated depreciation and amortization (25,199,244) (23,195,619) Total property and equipment, net $ 10,132,808 $ 9,370,104 |
Information Related to Capitalized Software Costs | Information related to capitalized software costs is as follows: Year Ended December 31, 2018 2017 2016 Software costs capitalized $ 3,214,896 $ 1,458,495 $ 2,286,778 Software costs amortized (1) 1,800,868 2,143,039 1,970,150 (1) Included in cost of subscription revenue on the accompanying consolidated statements of operations. December 31, 2018 2017 Capitalized software costs not yet subject to amortization $ 2,372,042 $ 824,738 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | December 31, 2018 2017 Accrued bonus $ 3,648,837 $ 1,980,218 Accrued commission 2,466,219 1,901,132 Deferred rent 423,301 380,077 Accrued professional fees 935,881 712,345 Accrued taxes 745,105 805,555 Other accrued expenses 1,289,823 1,810,155 Total $ 9,509,166 $ 7,589,482 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | Other intangibles are comprised of the following: Amortization December 31, 2018 2017 Acquired technology 3 - 8 years $ 5,397,600 $ 5,397,600 Customer related intangibles 10 - 15 years 3,960,200 3,960,200 Trademarks and licenses 5 - 7 years 1,137,000 1,137,000 Patents and other 2.3 years 28,130 41,741 10,522,930 10,536,541 Less: accumulated amortization (6,569,348) (5,536,656) $ 3,953,582 $ 4,999,885 |
Summary of Future Amortization Expense of Other Intangible Assets | The estimated future amortization expense of other intangibles as of December 31, 2018 is as follows: 2019 $ 1,031,203 2020 929,606 2021 879,600 2022 809,719 2023 171,055 2024 and thereafter 92,399 $ 3,913,582 |
Goodwill Rollforward | The rollforward of goodwill is as follows: Balance at December 31, 2016 $ 43,907,017 2017 activity (138,748) Balance at December 31, 2017 43,768,269 2018 activity (36,327) Balance at December 31, 2018 $ 43,731,942 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Loss before income taxes and income tax expense is comprised of the following: Year Ended December 31, 2018 2017 2016 Loss before income taxes: Domestic $ (13,547,014) $ (10,156,858) $ (14,562,851) Foreign 436,504 (2,211,853) (3,568,153) $ (13,110,510) $ (12,368,711) $ (18,131,004) Current provision: Federal $ — $ — $ — State 59,391 39,396 735 Foreign 432,619 569,379 594,987 $ 492,010 $ 608,775 $ 595,722 |
Reconciliation of Statutory U.S. Federal Tax Rate to Effective Rate | A reconciliation of the statutory U.S. federal tax rate to our effective rate is as follows: Year Ended December 31, 2018 2017 2016 Statutory U.S. federal tax rate (benefit) (21.0) % (35.0) % (35.0) % State income taxes, net of federal benefit 0.3 0.1 0.1 Foreign taxes 3.1 6.5 4.3 Stock-based compensation (4.8) (1.6) (3.3) Change in valuation allowance 21.8 (77.0) 37.5 Global intangible low-taxed income 0.5 — — Effect of tax reform — 108.7 — Non-deductible expenses and other 3.9 3.2 (0.3) Effective tax rate 3.8 % 4.9 % 3.3 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are comprised of the following: December 31, 2018 2017 Deferred tax assets: Accrued bonuses $ 372,246 $ 393,274 Accounts receivable reserve 148,166 72,147 Deferred revenue 52,648 1,048,179 Interest expense carryover 313,812 — Net operating loss carryforward 25,053,247 24,720,025 Stock-based compensation 6,292,204 3,288,819 Other 757,647 268,281 Deferred tax assets $ 32,989,970 $ 29,790,725 Deferred tax liabilities: Deferred commissions $ (2,270,027) $ (2,171,927) Intangibles (493,580) (635,723) Property and equipment (1,584,915) (1,619,083) Other (16,755) (16,884) Deferred tax liabilities (4,365,277) (4,443,617) Less: valuation allowance (28,624,693) (25,347,108) Total $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2018 are as follows: Capital Leases Operating Leases 2019 $ 1,431,296 $ 4,296,528 2020 719,074 2,663,588 2021 427,967 1,450,505 2022 153,798 906,176 2023 — 461,453 2024 and thereafter — 157,021 Total minimum lease payments 2,732,135 $ 9,935,271 Less amount representing interest (271,361) Present value of net minimum capital lease payments 2,460,774 Less current installments of obligations under capital leases (1,263,375) Obligations under capital leases excluding current installments $ 1,197,399 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2018 are as follows: Capital Leases Operating Leases 2019 $ 1,431,296 $ 4,296,528 2020 719,074 2,663,588 2021 427,967 1,450,505 2022 153,798 906,176 2023 — 461,453 2024 and thereafter — 157,021 Total minimum lease payments 2,732,135 $ 9,935,271 Less amount representing interest (271,361) Present value of net minimum capital lease payments 2,460,774 Less current installments of obligations under capital leases (1,263,375) Obligations under capital leases excluding current installments $ 1,197,399 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | Principal 2019 $ 750,000 2020 750,000 2021 11,375,000 $ 12,875,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Information related to the 2012 Plan and the 2002 Plan as of December 31, 2018 is as follows: 2012 Plan 2002 Plan Shares of common stock authorized for issuance 9,646,696 4,939,270 Stock options outstanding 4,244,630 202,555 RSUs outstanding 1,189,899 — PSUs outstanding 248,440 — Shares available for future grant 2,678,243 — |
Summary of Fair Value Weighted Average Assumption | The fair value of option grants is estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Year Ended December 31, 2018 2017 2016 Risk-free interest rate 2.71% 1.92% 1.29% Expected volatility 31.22% 32.66% 33.37% Expected dividend yield — — — Expected life in years 6.25 6.25 6.25 Weighted average fair value of options granted $3.63 $2.82 $1.32 |
Schedule of Share-based Compensation Activity | Information relative to the 2002 Plan and the 2012 Plan related to options is as follows: Options Outstanding Weighted Average Exercise Price Balance at December 31, 2015 4,402,943 $9.38 Granted 248,728 3.74 Exercised (646,639) 2.92 Canceled (85,287) 9.04 Expired (62,914) 5.77 Balance at December 31, 2016 3,856,831 9.99 Granted 1,050,654 7.86 Exercised (107,526) 2.92 Canceled (59,341) 9.94 Expired (107,964) 11.11 Balance at December 31, 2017 4,632,654 9.79 Granted 195,150 9.88 Exercised (200,750) 4.34 Canceled (107,408) 7.50 Expired (72,461) 13.00 Balance at December 31, 2018 4,447,185 10.04 December 31, 2018 2017 Total intrinsic value of options exercised $ 1,024,970 $ 415,374 Weighted average exercise price of fully vested options $ 10.56 $ 10.43 Weighted average remaining term of fully vested options 5.8 years 6.4 years Total unrecognized compensation cost related to non-vested stock options $ 2,153,120 $ 5,116,640 Weighted average period to recognize compensation cost related to non-vested stock options 2.5 years 2.1 years |
Schedule of Share-based Compensation by Exercise Price Range | Information with respect to the options outstanding and exercisable under the 2002 Plan and the 2012 Plan at December 31, 2018 is as follows: Options Outstanding Options Exercisable Exercise Price Options Weighted Intrinsic Options Weighted Intrinsic $ 2.31 - $ 3.74 . 349,100 4.8 years $ 1,857,113 288,148 4.3 years $ 1,583,438 4.13 - 7.20 . 682,173 7.1 years 1,060,778 388,121 6.2 years 728,740 8.07 - 12.62 . 1,460,754 7.2 years 123,570 907,504 6.5 years 108,744 13.00 - 15.90 . 1,955,158 5.6 years — 1,955,158 5.6 years — 4,447,185 $ 3,041,461 3,538,931 $ 2,420,922 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Number Number Total Weighted Balance at December 31, 2015 81,977 310,545 392,522 $15.27 Granted 666,018 — 666,018 3.91 Vested (83,377) — (83,377) 8.11 Canceled (64,652) (30,298) (94,950) 5.44 Balance at December 31, 2016 599,966 280,247 880,213 5.20 Granted 593,580 198,440 792,020 8.29 Vested (343,146) — (343,146) 3.84 Canceled (38,138) (12,188) (50,326) 6.87 Balance at December 31, 2017 812,262 466,499 1,278,761 7.41 Granted 708,351 50,000 758,351 9.65 Vested (288,829) — (288,829) 6.66 Canceled (41,885) (268,059) (309,944) 8.16 Balance at December 31, 2018 1,189,899 248,440 1,438,339 8.58 December 31, Total unrecognized compensation cost related to non-vested combined RSU/PSU $8,884,054 Weighted average period to recognize compensation cost related to non-vested combined RSU/PSU 2.6 years |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share: Year Ended December 31, 2018 2017 2016 Numerator: Net loss $ (13,602,520) $ (12,977,486) $ (18,726,726) Denominator: Weighted average shares used in computing net loss 27,825,795 27,415,953 26,718,882 Basic and diluted net loss per share $ (0.49) $ (0.47) $ (0.70) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Diluted net loss per share does not include the effect of the following antidilutive common equivalent shares: Year Ended December 31, 2018 2017 2016 Stock options outstanding 4,447,185 4,632,654 3,856,831 Restricted stock and performance stock units 1,438,339 1,278,761 880,213 5,885,524 5,911,415 4,737,044 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations (unaudited) | The following is a summary of our quarterly results of operations for the years ended December 31, 2018 and 2017: March 31, June 30, September 30, December 31, Revenues $ 20,064,392 $ 21,056,355 $ 22,160,998 $ 21,884,308 Gross profit 10,412,725 11,270,420 12,700,303 12,631,596 Loss from operations (3,992,726) (3,683,398) (1,836,609) (1,883,950) Net loss (5,413,837) (3,951,240) (1,614,770) (2,622,673) Net loss per share—basic and diluted $(0.20) $(0.14) $(0.06) $(0.09) March 31, June 30, September 30, December 31, Revenues $ 18,554,556 $ 19,675,285 $ 20,213,250 $ 20,633,019 Gross profit 9,152,782 9,765,196 11,062,248 11,354,317 Loss from operations (4,988,150) (3,536,647) (1,179,345) (2,143,323) Net loss (4,413,196) (4,517,471) (2,237,703) (1,809,116) Net loss per share—basic and diluted $(0.16) $(0.16) $(0.08) $(0.07) (1) During the third quarter of 2018, we revised previously reported stock-based compensation expense for the quarters ended March 31, 2018 and June 30, 2018 related to certain performance stock units due to a change in performance conditions. In accordance with Staff Accounting Bulletin (SAB) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, management evaluated the materiality of the error from qualitative and quantitative perspectives, and concluded the error was immaterial to the prior periods. The correction of the immaterial error resulted in an increase of $2,246,644 and $747,119 to stock-based compensation for the three months ended March 31, 2018 and June 30, 2018, respectively. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Practices - Cash and Cash Equivalents (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash | $ 7,471,075 | $ 9,318,074 | |
Money market accounts | 43,644 | 42,527 | |
Total cash and cash equivalents | $ 7,514,719 | $ 9,360,601 | $ 15,408,133 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Practices - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Quoted Prices in Active Markets (Level 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cash Equivalents | ||
Assets: | ||
Money market accounts | $ 43,644 | $ 42,527 |
Restricted Cash | ||
Assets: | ||
Money market accounts | $ 56,400 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Practices - Allowance for Doubtful Accounts Roll Forward (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 530,895 | $ 410,560 | $ 153,543 |
Provision for doubtful accounts | 195,372 | 568,193 | 509,454 |
Write-offs, net of recoveries | (110,323) | (447,858) | (252,437) |
Ending balance | $ 615,944 | $ 530,895 | $ 410,560 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Practices - Major Customers and Concentration of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Sales Revenue, Net | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.50% | 11.00% |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies and Practices - Property and Equipment Depreciable Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computer and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Computer and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies and Practices - Goodwill (Details) | 12 Months Ended |
Dec. 31, 2018reporting_unit | |
Accounting Policies [Abstract] | |
Number of reporting units (reporting units) | 1 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies and Practices - Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Revenue | $ 35,304,479 | $ 39,642,945 |
Deferred Revenue, Noncurrent | 265,324 | 1,830,706 |
Deferred revenue | $ 35,039,155 | 37,812,239 |
Initial customer contracts, minimum term | 3 years | |
Initial customer contracts, maximum term | 5 years | |
Subscription revenue | ||
Deferred Revenue, Noncurrent | $ 265,324 | 412,608 |
Deferred revenue | 34,849,486 | 35,247,750 |
Software Service, Support and Maintenance Arrangement [Member] | ||
Deferred Revenue, Noncurrent | 0 | 1,418,098 |
Deferred revenue | 189,669 | 2,564,489 |
Technology Services Revenue [Member] | ||
Deferred Revenue, Revenue Recognized | 569,765 | 2,138,892 |
License and Maintenance Revenue [Member] | ||
Deferred Revenue, Revenue Recognized | $ 36,666,119 | $ 33,769,230 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies and Practices - Deferred Commissions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Deferred commission costs | $ 4,509,044 | $ 3,855,517 | $ 6,436,699 |
Amortization of deferred sales commissions | $ 4,176,008 | $ 5,188,472 | $ 4,744,353 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies and Practices - ASC 606 Adoption Tables (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Deferred Revenue, Noncurrent | $ 265,324 | $ 1,830,706 | $ 265,324 | $ 1,830,706 | |||||||||
Deferred revenue | 35,039,155 | 37,812,239 | 35,039,155 | 37,812,239 | |||||||||
Deferred commissions | 9,092,591 | 6,734,326 | 9,092,591 | 6,734,326 | |||||||||
Deferred commissions | 4,023,473 | 4,400,015 | 4,023,473 | 4,400,015 | |||||||||
Net loss | (2,622,673) | $ (1,614,770) | $ (3,951,240) | $ (5,413,837) | (1,809,116) | $ (2,237,703) | $ (4,517,471) | $ (4,413,196) | (13,602,520) | (12,977,486) | $ (18,726,726) | ||
Sales and marketing | [1] | 22,949,487 | 22,526,535 | 22,637,984 | |||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 21,884,308 | $ 22,160,998 | $ 21,056,355 | $ 20,064,392 | 20,633,019 | $ 20,213,250 | $ 19,675,285 | $ 18,554,556 | 85,166,053 | 79,076,110 | 73,161,190 | ||
Capitalized Contract Cost, Net, Current | $ 3,837,408 | ||||||||||||
Capitalized Contract Cost, Net, Noncurrent | 8,945,620 | ||||||||||||
Contract with Customer, Liability, Current | 35,871,214 | ||||||||||||
Deferred revenue, less current portion | 265,324 | 1,830,706 | 265,324 | 1,830,706 | 412,608 | ||||||||
Accumulated deficit | (176,502,748) | (167,908,038) | (176,502,748) | (167,908,038) | (162,900,228) | ||||||||
Technology Services Revenue [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 22,529,162 | 20,596,971 | 19,850,657 | ||||||||||
License and Maintenance Revenue [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 62,636,891 | 58,479,139 | $ 53,310,533 | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Capitalized Contract Cost, Net, Current | 4,400,015 | 4,400,015 | |||||||||||
Capitalized Contract Cost, Net, Noncurrent | 6,734,326 | 6,734,326 | |||||||||||
Contract with Customer, Liability, Current | 37,812,239 | 37,812,239 | |||||||||||
Deferred revenue, less current portion | 1,830,706 | 1,830,706 | |||||||||||
Accumulated deficit | $ (167,908,038) | $ (167,908,038) | |||||||||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Deferred Revenue, Noncurrent | 1,374,961 | 1,374,961 | |||||||||||
Deferred revenue | 1,737,537 | 1,737,537 | |||||||||||
Deferred commissions | 2,580,142 | 2,580,142 | |||||||||||
Deferred commissions | (254,075) | (254,075) | |||||||||||
Net loss | 430,755 | ||||||||||||
Sales and marketing | 677,380 | ||||||||||||
Accumulated deficit | 5,438,565 | 5,438,565 | |||||||||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | CoststoObtainaContractMember [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Capitalized Contract Cost, Net, Current | (562,607) | ||||||||||||
Capitalized Contract Cost, Net, Noncurrent | 2,211,294 | ||||||||||||
Accumulated deficit | 1,648,687 | ||||||||||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Technology Services Revenue [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | (380,290) | ||||||||||||
Contract with Customer, Liability, Current | (2,170,118) | ||||||||||||
Deferred revenue, less current portion | (1,418,098) | ||||||||||||
Accumulated deficit | 3,588,216 | ||||||||||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | License and Maintenance Revenue [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 133,665 | ||||||||||||
Contract with Customer, Liability, Current | 229,093 | ||||||||||||
Accumulated deficit | $ (229,093) | ||||||||||||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Deferred Revenue, Noncurrent | 1,640,285 | 1,640,285 | |||||||||||
Deferred revenue | 36,776,692 | 36,776,692 | |||||||||||
Deferred commissions | 6,512,449 | 6,512,449 | |||||||||||
Deferred commissions | 4,277,548 | 4,277,548 | |||||||||||
Net loss | (14,033,275) | ||||||||||||
Sales and marketing | 23,626,867 | ||||||||||||
Accumulated deficit | $ (181,941,313) | (181,941,313) | |||||||||||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Technology Services Revenue [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 22,909,452 | ||||||||||||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | License and Maintenance Revenue [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 62,503,226 | ||||||||||||
[1] | (1) Includes stock-based compensation as follows: Year Ended December 31, 2018 2017 2016 Cost of subscription revenue $ 895,477 $ 767,877 $ 810,455 Cost of professional services revenue 661,499 549,378 480,160 Sales and marketing 1,435,055 1,015,307 872,899 Research and development 2,036,305 1,404,771 1,161,422 General and administrative 7,246,830 2,340,536 2,142,954 $ 12,275,166 $ 6,077,869 $ 5,467,890 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies and Practices - Segments (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Accounting Policies [Abstract] | |
Number of Reportable Segments | 1 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies and Practices - Sales and Long Lived-Assets by Geographic Location (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total long-lived assets | $ 10,132,808 | $ 9,370,104 | $ 10,132,808 | $ 9,370,104 | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 21,884,308 | $ 22,160,998 | $ 21,056,355 | $ 20,064,392 | 20,633,019 | $ 20,213,250 | $ 19,675,285 | $ 18,554,556 | 85,166,053 | 79,076,110 | $ 73,161,190 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total long-lived assets | 9,310,108 | 8,535,281 | 9,310,108 | 8,535,281 | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 64,136,564 | 59,905,306 | 57,586,112 | ||||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total long-lived assets | $ 822,700 | $ 834,823 | 822,700 | 834,823 | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 21,029,489 | $ 19,170,804 | $ 15,575,078 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies and Practices - New Accounting Pronouncements (Details) - Accounting Standards Update 2016-02 [Member] | Jan. 01, 2019USD ($) |
Minimum | |
Item Effected [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 6,600,000 |
Operating Lease, Liability | 8,100,000 |
Maximum [Member] | |
Item Effected [Line Items] | |
Operating Lease, Right-of-Use Asset | 6,800,000 |
Operating Lease, Liability | $ 8,300,000 |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components - Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 35,332,052 | $ 32,565,723 | |
Less: accumulated depreciation and amortization | (25,199,244) | (23,195,619) | |
Total property and equipment, net | 10,132,808 | 9,370,104 | |
Depreciation and amortization | 3,941,643 | 4,271,381 | $ 5,068,786 |
Computer software and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 15,674,596 | 14,296,247 | |
Software development costs | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Total property and equipment | $ 15,300,893 | 13,980,872 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Total property and equipment | $ 1,713,226 | 1,741,918 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 2,643,337 | $ 2,546,686 |
Consolidated Balance Sheet Co_2
Consolidated Balance Sheet Components - Capitalized Software (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized software costs during the period | $ 3,214,896 | $ 1,458,495 | $ 2,286,778 |
Amortization of capitalized software | 1,800,868 | 2,143,039 | $ 1,970,150 |
Capitalized software, net | $ 2,372,042 | $ 824,738 | |
Software Development | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 9,509,166 | $ 7,589,482 |
Other accrued expenses | 1,289,823 | 1,810,155 |
Taxes Payable, Current | 745,105 | 805,555 |
Accrued Professional Fees, Current | 935,881 | 712,345 |
Deferred rent | 423,301 | 380,077 |
Accrued commission | 2,466,219 | 1,901,132 |
Accrued bonus | $ 3,648,837 | $ 1,980,218 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 10,522,930 | $ 10,536,541 |
Other intangibles, net | 3,953,582 | 4,999,885 |
Acquired technology | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 5,397,600 | 5,397,600 |
Customer related intangibles | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 3,960,200 | 3,960,200 |
Trademarks and licenses | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 1,137,000 | 1,137,000 |
Patents and other | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 28,130 | $ 41,741 |
Minimum | Acquired technology | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Minimum | Customer related intangibles | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Minimum | Trademarks and licenses | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum | Acquired technology | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 8 years | |
Maximum | Customer related intangibles | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Maximum | Trademarks and licenses | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | |
Maximum | Patents and other | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years 3 months 18 days |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1,037,972 | $ 1,115,408 | $ 1,521,557 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Future Amortization Expense (Details) | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 1,031,203 |
2,018 | 929,606 |
2,019 | 879,600 |
2,020 | 809,719 |
2,021 | 171,055 |
2024 and thereafter | 92,399 |
Finite-lived intangible assets, net | $ 3,913,582 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles - Goodwill Rollforward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, beginning balance | $ 43,768,269 | $ 43,907,017 |
2018 activity | (36,327) | (138,748) |
Goodwill, ending balance | $ 43,731,942 | $ 43,768,269 |
Income Taxes Components of Curr
Income Taxes Components of Current Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss before income taxes: | |||
Loss before income taxes, domestic | $ (13,547,014) | $ (10,156,858) | $ (14,562,851) |
Loss before income taxes, foreign | 436,504 | (2,211,853) | (3,568,153) |
Loss before income taxes | (13,110,510) | (12,368,711) | (18,131,004) |
Current provision: | |||
Current provision, federal | 0 | 0 | 0 |
Current provision, state | 59,391 | 39,396 | 735 |
Current provision, foreign | 432,619 | 569,379 | 594,987 |
Current provision | $ 492,010 | $ 608,775 | $ 595,722 |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal tax rate (benefit) | (21.00%) | (35.00%) | (35.00%) |
State income taxes, net of federal benefit | 0.30% | 0.10% | 0.10% |
Foreign taxes | 3.10% | 6.50% | 4.30% |
Stock-based compensation | (4.80%) | (1.60%) | (3.30%) |
Change in valuation allowance | 21.80% | (77.00%) | 37.50% |
Acquisition related expenses | 0.50% | 0.00% | 0.00% |
Effect of tax reform | 0.00% | (108.70%) | 0.00% |
Non-deductible expenses and other | 3.90% | 3.20% | (0.30%) |
Effective tax rate | 3.80% | 4.90% | 3.30% |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current deferred tax asset: | ||
Accrued bonuses | $ 372,246 | $ 393,274 |
Accounts receivable reserve | 148,166 | 72,147 |
Deferred revenue | 52,648 | 1,048,179 |
Interest expense carryover | 313,812 | 0 |
NOLs | 25,053,247 | 24,720,025 |
Stock-based compensation | 6,292,204 | 3,288,819 |
Other | 757,647 | 268,281 |
Deferred tax assets | 32,989,970 | 29,790,725 |
Deferred Tax Liabilities, Gross, Non-Current [Abstract] | ||
Deferred commissions | (2,270,027) | (2,171,927) |
Intangibles | (493,580) | (635,723) |
Fixed assets | (1,584,915) | (1,619,083) |
Deferred Tax Liabilities, Other | (16,755) | (16,884) |
Deferred tax liabilities | (4,365,277) | (4,443,617) |
Less: valuation allowance | (28,624,693) | (25,347,108) |
Total | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 28,624,693 | $ 25,347,108 |
Net change in the valuation allowance | 3,277,585 | (8,865,020) |
Reduction in deferred tax assets related to net operating losses and other assets as a result of the Act | 13,400,000 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Federal net operating loss (NOL) carryforward | 91,166,826 | $ 88,442,842 |
Net operating loss carryforwards expected to expire without utilization | $ 2,131,290 |
Leases - Operating Leases - (De
Leases - Operating Leases - (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 3,411,000 | $ 3,687,000 | $ 3,697,000 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating lease, renewal term | 3 years | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating lease, renewal term | 5 years |
Leases - Capital Leases - (Deta
Leases - Capital Leases - (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
Capital leased assets, carrying value | $ 2,369,552 | $ 2,691,383 |
Capital leases, accumulated depreciation | $ 7,238,896 | $ 6,864,443 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments - (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 1,431,296 | |
2,018 | 719,074 | |
2,019 | 427,967 | |
2,020 | 153,798 | |
2,021 | 0 | |
2023 and thereafter | 0 | |
Total minimum lease payments | 2,732,135 | |
Less amount representing interest | (271,361) | |
Present value of net minimum capital lease payments | 2,460,774 | |
Less current installments of obligations under capital leases | (1,263,375) | $ (1,352,456) |
Obligations under capital leases excluding current installments | 1,197,399 | $ 1,461,101 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,017 | 4,296,528 | |
2,018 | 2,663,588 | |
2,019 | 1,450,505 | |
2,020 | 906,176 | |
2,021 | 461,453 | |
2023 and thereafter | 157,021 | |
Total minimum lease payments | $ 9,935,271 |
Debt - Line of Credit - (Detail
Debt - Line of Credit - (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 04, 2015 |
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 6,000,000 | $ 6,000,000 | $ 15,000,000 |
Outstanding balance | 12,875,000 | 20,000,000 | |
Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000 | ||
Line of Credit | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Outstanding balance | 12,769,235 | ||
Unaccreted discount and deferred financing costs | $ 105,765 | ||
London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Weighted average interest rate | 5.44% | ||
Prime Rate | |||
Line of Credit Facility [Line Items] | |||
Weighted average interest rate | 6.16% |
Debt - Term Loan - (Details)
Debt - Term Loan - (Details) - USD ($) | Dec. 31, 2018 | Mar. 04, 2015 |
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 750,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 750,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 11,375,000 | |
Long-term Debt | $ 12,875,000 | $ 20,000,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) | 3 Months Ended | |
Dec. 31, 2018vote$ / sharesshares | Dec. 31, 2017$ / sharesshares | |
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Common Stock | ||
Class of Stock [Line Items] | ||
Number of votes (vote) | vote | 1 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) | Dec. 31, 2018$ / sharesshares |
Equity [Abstract] | |
Preferred stock, shares authorized (in shares) | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | 4,447,185 | 4,632,654 | 3,856,831 | 4,402,943 |
2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options authorized (in shares) | 9,646,696 | |||
Options outstanding (in shares) | 4,244,630 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,678,243 | |||
2002 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options authorized (in shares) | 4,939,270 | |||
Options outstanding (in shares) | 202,555 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU's outstanding (in shares) | 1,189,899 | 812,262 | 599,966 | 81,977 |
Restricted Stock Units (RSUs) | 2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU's outstanding (in shares) | 1,189,899 | |||
Restricted Stock Units (RSUs) | 2002 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU's outstanding (in shares) | 0 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU's outstanding (in shares) | 248,440 | 466,499 | 280,247 | 310,545 |
Performance Shares [Member] | 2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU's outstanding (in shares) | 248,440 | |||
Performance Shares [Member] | 2002 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU's outstanding (in shares) | 0 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Future Forfeiture Rate (as a percentage) | 7.42% | ||
Risk-free interest rate | 2.71% | 1.92% | 1.29% |
Expected volatility | 31.22% | 32.66% | 33.37% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected life (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Weighted average fair value of options granted (USD per share) | $ 3.63 | $ 2.82 | $ 1.32 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-Based Compensation Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options Outstanding | |||
Balance at beginning of period (in shares) | 4,632,654 | 3,856,831 | 4,402,943 |
Options granted (in shares) | 195,150 | 1,050,654 | 248,728 |
Options exercised (in shares) | (200,750) | (107,526) | (646,639) |
Options canceled (in shares) | (107,408) | (59,341) | (85,287) |
Options expired (in shares) | (72,461) | (107,964) | (62,914) |
Balance at end of period (in shares) | 4,447,185 | 4,632,654 | 3,856,831 |
Weighted Average Exercise Price | |||
Balance at beginning of period, outstanding options, weighted average exercise price (in dollars per share) | $ 9.79 | $ 9.99 | $ 9.38 |
Options granted, weighted average exercise price (in dollars per share) | 9.88 | 7.86 | 3.74 |
Options exercised, weighted average exercise price (in dollars per share) | 4.34 | 2.92 | 2.92 |
Options canceled, weighted average exercise price (in dollars per share) | 7.50 | 9.94 | 9.04 |
Options expired, weighted average exercise price (in dollars per share) | 13 | 11.11 | 5.77 |
Balance at end of period, outstanding options, weighted average exercise price (in dollars per share) | $ 10.04 | $ 9.79 | $ 9.99 |
Stock-Based Compensation - Ad_2
Stock-Based Compensation - Additional 2012 Plan Disclosures (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average exercise price of fully vested options (in dollars per share) | $ 10.56 | $ 10.43 |
Weighted average remaining term of fully vested options | 5 years 9 months 18 days | 6 years 4 months 24 days |
Total unrecognized compensation cost related to non-vested stock options | $ 2,153,120 | $ 5,116,640 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 1,024,970 | $ 415,374 |
Weighted average period to recognize compensation cost related to non-vested stock options | 2 years 6 months | 2 years 1 month 6 days |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards available for future grant under the 2012 Plan (in shares) | 2,678,243 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding and Exercisable by Exercise Price (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 4,447,185 |
Outstanding, aggregate intrinsic value | $ | $ 3,041,461 |
Number of exercisable options (in shares) | shares | 3,538,931 |
Exercisable options, aggregate intrinsic value | $ | $ 2,420,922 |
$2.31 - $3.74 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 349,100 |
Options outstanding average remaining contractual life | 4 years 9 months 18 days |
Outstanding, aggregate intrinsic value | $ | $ 1,857,113 |
Number of exercisable options (in shares) | shares | 288,148 |
Exercisable options, weighted average term remaining | 4 years 3 months 18 days |
Exercisable options, aggregate intrinsic value | $ | $ 1,583,438 |
$4.13 - $7.20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 682,173 |
Options outstanding average remaining contractual life | 7 years 1 month 6 days |
Outstanding, aggregate intrinsic value | $ | $ 1,060,778 |
Number of exercisable options (in shares) | shares | 388,121 |
Exercisable options, weighted average term remaining | 6 years 2 months 12 days |
Exercisable options, aggregate intrinsic value | $ | $ 728,740 |
$8.07 - $12.62 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 1,460,754 |
Options outstanding average remaining contractual life | 7 years 2 months 12 days |
Outstanding, aggregate intrinsic value | $ | $ 123,570 |
Number of exercisable options (in shares) | shares | 907,504 |
Exercisable options, weighted average term remaining | 6 years 6 months |
Exercisable options, aggregate intrinsic value | $ | $ 108,744 |
$13.00 - $15.90 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options outstanding (in shares) | shares | 1,955,158 |
Options outstanding average remaining contractual life | 5 years 7 months 6 days |
Outstanding, aggregate intrinsic value | $ | $ 0 |
Number of exercisable options (in shares) | shares | 1,955,158 |
Exercisable options, weighted average term remaining | 5 years 7 months 6 days |
Exercisable options, aggregate intrinsic value | $ | $ 0 |
Minimum | $2.31 - $3.74 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | $ 2.31 |
Minimum | $4.13 - $7.20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 4.13 |
Minimum | $8.07 - $12.62 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 8.07 |
Minimum | $13.00 - $15.90 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 13 |
Maximum | $2.31 - $3.74 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 3.74 |
Maximum | $4.13 - $7.20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 7.20 |
Maximum | $8.07 - $12.62 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | 12.62 |
Maximum | $13.00 - $15.90 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price (in dollars per share) | $ / shares | $ 15.90 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Performance Shares [Member] | |||
Number of RSU's Outstanding | |||
Balance at beginning of period (in shares) | 466,499 | 280,247 | 310,545 |
Granted (in shares) | 50,000 | 198,440 | 0 |
Vested (in shares) | 0 | 0 | 0 |
Canceled (in shares) | (268,059) | (12,188) | (30,298) |
Balance at end of period (in shares) | 248,440 | 466,499 | 280,247 |
Weighted Average Grant Date Fair Value | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 198,440 | ||
Restricted Stock Units (RSUs) and Performance Shares [Member] | |||
Number of RSU's Outstanding | |||
Balance at beginning of period (in shares) | 1,278,761 | 880,213 | 392,522 |
Granted (in shares) | 758,351 | 792,020 | 666,018 |
Vested (in shares) | (288,829) | (343,146) | (83,377) |
Canceled (in shares) | (309,944) | (50,326) | (94,950) |
Balance at end of period (in shares) | 1,438,339 | 1,278,761 | 880,213 |
Weighted Average Grant Date Fair Value | |||
Balance at beginning of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 7.41 | $ 5.20 | $ 15.27 |
Weighted Average Grant Date Fair Value (in dollars per share) | 9.65 | 8.29 | 3.91 |
Vested in Period, Weighted Average Grant Date Fair Value (in dollars per share) | 6.66 | 3.84 | 8.11 |
Canceled (in dollars per share) | 8.16 | 6.87 | 5.44 |
Balance at end of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 8.58 | $ 7.41 | $ 5.20 |
Unrecognized stock-based compensation expense | $ 8,884,054 | ||
Weighted average period to recognize compensation cost related to non-vested stock options | 2 years 7 months 6 days | ||
Restricted Stock Units (RSUs) | |||
Number of RSU's Outstanding | |||
Balance at beginning of period (in shares) | 812,262 | 599,966 | 81,977 |
Granted (in shares) | 708,351 | 593,580 | 666,018 |
Vested (in shares) | (288,829) | (343,146) | (83,377) |
Canceled (in shares) | (41,885) | (38,138) | (64,652) |
Balance at end of period (in shares) | 1,189,899 | 812,262 | 599,966 |
Minimum | Performance Shares [Member] | |||
Weighted Average Grant Date Fair Value | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
Maximum [Member] | Performance Shares [Member] | |||
Weighted Average Grant Date Fair Value | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 500.00% |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic and diluted net loss per share: | |||||||||||
Net loss | $ (13,602,520) | $ (12,977,486) | $ (18,726,726) | ||||||||
Weighted average shares used in computing net loss (in shares) | 27,825,795 | 27,415,953 | 26,718,882 | ||||||||
Basic and diluted net loss per share (in dollars per share) | $ (0.09) | $ (0.06) | $ (0.14) | $ (0.20) | $ (0.07) | $ (0.08) | $ (0.16) | $ (0.16) | $ (0.49) | $ (0.47) | $ (0.70) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 5,885,524 | 5,911,415 | 4,737,044 |
Stock options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 4,447,185 | 4,632,654 | 3,856,831 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 1,438,339 | 1,278,761 | 880,213 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Chief Executive Officer | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
Period of successive extensions | 2 years |
Deferred Compensation Arrangement with Individual, Written Notice, Period Prior to End of Current Term | 6 months |
Maximum [Member] | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
Agreement covenant, noncompete agreement, period post employment | 24 months |
Minimum | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
Agreement covenant, noncompete agreement, period post employment | 12 months |
Quarterly Results of Operatio_3
Quarterly Results of Operations (unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 21,884,308 | $ 22,160,998 | $ 21,056,355 | $ 20,064,392 | $ 20,633,019 | $ 20,213,250 | $ 19,675,285 | $ 18,554,556 | $ 85,166,053 | $ 79,076,110 | $ 73,161,190 |
Gross profit | 12,631,596 | 12,700,303 | 11,270,420 | 10,412,725 | 11,354,317 | 11,062,248 | 9,765,196 | 9,152,782 | 47,015,044 | 41,334,543 | 37,424,789 |
Loss from operations | (1,883,950) | (1,836,609) | (3,683,398) | (3,992,726) | (2,143,323) | (1,179,345) | (3,536,647) | (4,988,150) | (11,847,465) | (11,396,683) | (17,325,809) |
Net loss | $ (2,622,673) | $ (1,614,770) | $ (3,951,240) | $ (5,413,837) | $ (1,809,116) | $ (2,237,703) | $ (4,517,471) | $ (4,413,196) | $ (13,602,520) | $ (12,977,486) | $ (18,726,726) |
Basic and diluted (in dollars per share) | $ (0.09) | $ (0.06) | $ (0.14) | $ (0.20) | $ (0.07) | $ (0.08) | $ (0.16) | $ (0.16) | $ (0.49) | $ (0.47) | $ (0.70) |
Immaterial Error Correction [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation | $ 747,119 | $ 2,246,644 |
Uncategorized Items - ambr-2018
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 5,007,810 |