Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | MARIN SOFTWARE INC | |
Entity Central Index Key | 0001389002 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 8,866,251 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity File Number | 001-35838 | |
Entity Tax Identification Number | 20-4647180 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 123 Mission Street | |
Entity Address, Address Line Two | 27th Floor | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 399-2580 | |
Title of 12(b) Security | Common Stock, $0.001 Par Value Per Share | |
Trading Symbol | MRIN | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 7,978 | $ 11,134 | |
Restricted cash | 972 | 971 | |
Accounts receivable, net | 5,432 | 8,939 | |
Prepaid expenses and other current assets | 3,029 | 3,522 | |
Total current assets | 17,411 | 24,566 | |
Property and equipment, net | 5,969 | 8,524 | |
Right-of-use assets, operating leases | 9,336 | 7,705 | |
Intangible assets, net | 0 | 95 | |
Other non-current assets | 913 | 1,403 | |
Total assets | 33,629 | 42,293 | |
Current liabilities: | |||
Accounts payable | 1,194 | 1,679 | |
Accrued expenses and other current liabilities | 7,118 | 9,010 | |
Note payable, current | 2,033 | 0 | |
Operating lease liabilities | 6,820 | 3,786 | |
Total current liabilities | 17,165 | 14,475 | |
Note payable, net of current | 1,287 | 0 | |
Operating lease liabilities, non-current | 3,483 | 5,181 | |
Other long-term liabilities | 884 | 1,577 | |
Total liabilities | 22,819 | 21,233 | |
Commitments and contingencies (Note 13) | |||
Stockholders’ equity: | |||
Common stock, $0.001 par value - 142,857 shares authorized, 7,115 and 6,810 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 7 | 7 | |
Additional paid-in capital | 300,490 | 299,263 | |
Accumulated deficit | (288,636) | (277,112) | |
Accumulated other comprehensive loss | (1,051) | (1,098) | |
Total stockholders’ equity | 10,810 | 21,060 | |
Total liabilities and stockholders’ equity | $ 33,629 | $ 42,293 | |
[1] | Derived from the Company’s audited consolidated financial statements as of December 31, 2019. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares shares in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | [1] |
Stockholders’ equity: | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Common stock, authorized (in shares) | 142,857 | 142,857 | |
Common stock, issued (in shares) | 7,115 | 6,810 | |
Common stock, outstanding (in shares) | 7,115 | 6,810 | |
[1] | Derived from the Company’s audited consolidated financial statements as of December 31, 2019. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues, net | $ 6,796 | $ 11,728 | $ 22,731 | $ 37,652 |
Cost of revenues | 4,323 | 5,567 | 14,253 | 17,307 |
Gross profit | 2,473 | 6,161 | 8,478 | 20,345 |
Operating expenses | ||||
Sales and marketing | 1,491 | 3,732 | 5,683 | 12,453 |
Research and development | 3,106 | 3,872 | 9,881 | 13,427 |
General and administrative | 2,131 | 2,631 | 6,123 | 8,129 |
Total operating expenses | 6,728 | 10,235 | 21,687 | 34,009 |
Loss from operations | (4,255) | (4,074) | (13,209) | (13,664) |
Other income, net | 111 | 640 | 1,117 | 1,712 |
Loss before benefit from income taxes | (4,144) | (3,434) | (12,092) | (11,952) |
Benefit from income taxes | (72) | (161) | (568) | (70) |
Net loss | (4,072) | (3,273) | (11,524) | (11,882) |
Foreign currency translation adjustments | (41) | (54) | 47 | (49) |
Comprehensive loss | $ (4,113) | $ (3,327) | $ (11,477) | $ (11,931) |
Net loss per share available to common stockholders, basic and diluted (Note 11) | $ (0.58) | $ (0.49) | $ (1.67) | $ (1.90) |
Weighted-average shares used to compute net loss per share available to common stockholders, basic and diluted | 7,017 | 6,631 | 6,916 | 6,262 |
Stock-based compensation expense | $ 195 | $ 653 | $ 1,208 | $ 2,100 |
Amortization of intangible assets | 95 | 1,468 | ||
Cost of Revenues [Member] | ||||
Operating expenses | ||||
Stock-based compensation expense | (19) | 127 | 204 | 394 |
Amortization of intangible assets | 0 | 234 | 47 | 702 |
Restructuring related expenses | 529 | 0 | 522 | 6 |
Sales and Marketing [Member] | ||||
Operating expenses | ||||
Stock-based compensation expense | 24 | 155 | 283 | 540 |
Amortization of intangible assets | 0 | 0 | 0 | 64 |
Restructuring related expenses | 214 | 0 | 264 | 223 |
Research and Development [Member] | ||||
Operating expenses | ||||
Stock-based compensation expense | 123 | 266 | 507 | 816 |
Amortization of intangible assets | 0 | 234 | 48 | 702 |
Restructuring related expenses | 185 | 0 | 185 | 0 |
General and Administrative [Member] | ||||
Operating expenses | ||||
Stock-based compensation expense | 67 | 105 | 214 | 350 |
Restructuring related expenses | $ 123 | $ 0 | $ 123 | $ 0 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | |
Balances at beginning of period at Dec. 31, 2018 | $ 29,371 | $ 6 | $ 295,116 | $ (264,713) | $ (1,038) | |
Balances at beginning of period (in shares) at Dec. 31, 2018 | 5,938 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock through equity distribution agreement, net of offering costs | $ 1,504 | $ 1 | 1,503 | 0 | 0 | |
Issuance of common stock through equity distribution agreement, net of offering costs (in shares) | 570 | 570 | ||||
Issuance of common stock from vesting of restricted stock units | $ 0 | $ 0 | 0 | 0 | 0 | |
Issuance of common stock from vesting of restricted stock units (in shares) | 92 | |||||
Tax withholding related to vesting of restricted stock units | (254) | $ 0 | (254) | 0 | 0 | |
Issuance of common stock under employee stock purchase plan | 88 | $ 0 | 88 | 0 | 0 | |
Issuance of common stock under employee stock purchase plan (in shares) | 42 | |||||
Stock-based compensation expense | 2,100 | $ 0 | 2,100 | 0 | 0 | |
Net loss | (11,882) | 0 | 0 | (11,882) | 0 | |
Foreign currency translation adjustments | (49) | 0 | 0 | 0 | (49) | |
Balances at end of period at Sep. 30, 2019 | 20,878 | $ 7 | 298,553 | (276,595) | (1,087) | |
Balances at end of period (in shares) at Sep. 30, 2019 | 6,642 | |||||
Balances at beginning of period at Dec. 31, 2018 | 29,371 | $ 6 | 295,116 | (264,713) | (1,038) | |
Balances at beginning of period (in shares) at Dec. 31, 2018 | 5,938 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (12,408) | |||||
Balances at end of period at Dec. 31, 2019 | 21,060 | [1] | $ 7 | 299,263 | (277,112) | (1,098) |
Balances at end of period (in shares) at Dec. 31, 2019 | 6,810 | |||||
Balances at beginning of period at Jun. 30, 2019 | 23,555 | $ 7 | 297,903 | (273,322) | (1,033) | |
Balances at beginning of period (in shares) at Jun. 30, 2019 | 6,623 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock from vesting of restricted stock units | 0 | $ 0 | 0 | 0 | 0 | |
Issuance of common stock from vesting of restricted stock units (in shares) | 19 | |||||
Tax withholding related to vesting of restricted stock units | (3) | $ 0 | (3) | 0 | 0 | |
Stock-based compensation expense | 653 | 0 | 653 | 0 | 0 | |
Net loss | (3,273) | 0 | 0 | (3,273) | 0 | |
Foreign currency translation adjustments | (54) | 0 | 0 | 0 | (54) | |
Balances at end of period at Sep. 30, 2019 | 20,878 | $ 7 | 298,553 | (276,595) | (1,087) | |
Balances at end of period (in shares) at Sep. 30, 2019 | 6,642 | |||||
Balances at beginning of period at Dec. 31, 2019 | 21,060 | [1] | $ 7 | 299,263 | (277,112) | (1,098) |
Balances at beginning of period (in shares) at Dec. 31, 2019 | 6,810 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock through equity distribution agreement, net of offering costs | $ 179 | $ 0 | 179 | 0 | 0 | |
Issuance of common stock through equity distribution agreement, net of offering costs (in shares) | 134 | 134 | ||||
Issuance of common stock from vesting of restricted stock units | $ 0 | $ 0 | 0 | 0 | 0 | |
Issuance of common stock from vesting of restricted stock units (in shares) | 160 | |||||
Tax withholding related to vesting of restricted stock units | (174) | $ 0 | (174) | 0 | 0 | |
Issuance of common stock under employee stock purchase plan | 14 | $ 0 | 14 | 0 | 0 | |
Issuance of common stock under employee stock purchase plan (in shares) | 11 | |||||
Stock-based compensation expense | 1,208 | $ 0 | 1,208 | 0 | 0 | |
Net loss | (11,524) | 0 | 0 | (11,524) | 0 | |
Foreign currency translation adjustments | 47 | 0 | 0 | 0 | 47 | |
Balances at end of period at Sep. 30, 2020 | 10,810 | $ 7 | 300,490 | (288,636) | (1,051) | |
Balances at end of period (in shares) at Sep. 30, 2020 | 7,115 | |||||
Balances at beginning of period at Jun. 30, 2020 | 14,572 | $ 7 | 300,139 | (284,564) | (1,010) | |
Balances at beginning of period (in shares) at Jun. 30, 2020 | 6,959 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock through equity distribution agreement, net of offering costs | $ 179 | $ 0 | 179 | 0 | 0 | |
Issuance of common stock through equity distribution agreement, net of offering costs (in shares) | 134 | 134 | ||||
Issuance of common stock from vesting of restricted stock units | $ 0 | $ 0 | 0 | 0 | 0 | |
Issuance of common stock from vesting of restricted stock units (in shares) | 22 | |||||
Tax withholding related to vesting of restricted stock units | (23) | $ 0 | (23) | 0 | 0 | |
Stock-based compensation expense | 195 | 0 | 195 | 0 | 0 | |
Net loss | (4,072) | 0 | 0 | (4,072) | 0 | |
Foreign currency translation adjustments | (41) | 0 | 0 | 0 | (41) | |
Balances at end of period at Sep. 30, 2020 | $ 10,810 | $ 7 | $ 300,490 | $ (288,636) | $ (1,051) | |
Balances at end of period (in shares) at Sep. 30, 2020 | 7,115 | |||||
[1] | Derived from the Company’s audited consolidated financial statements as of December 31, 2019. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | |||
Offering costs | $ 9 | $ 9 | $ 203 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net loss | $ (11,524) | $ (11,882) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation | 1,661 | 1,475 |
Amortization of internally developed software | 2,330 | 2,762 |
Amortization of intangible assets | 95 | 1,468 |
Loss on disposals of property and equipment and right-of-use assets | 19 | 13 |
Amortization of deferred costs to obtain and fulfill contracts | 700 | 1,240 |
Interest expense | 14 | 0 |
Unrealized foreign currency losses (gains) | (29) | (52) |
Stock-based compensation expense related to equity awards | 1,208 | 2,100 |
Provision for bad debts | (204) | (47) |
Net change in operating leases | (294) | (421) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,723 | 3,728 |
Prepaid expenses and other assets | 289 | 1 |
Accounts payable | (482) | (774) |
Accrued expenses and other liabilities | (1,994) | 737 |
Net cash (used in) provided by operating activities | (4,488) | 348 |
Investing activities | ||
Purchases of property and equipment | (14) | (92) |
Capitalization of internally developed software | (1,442) | (1,874) |
Net cash used in investing activities | (1,456) | (1,966) |
Financing activities | ||
Proceeds from note payable | 3,320 | 0 |
Proceeds from issuance of common shares through equity distribution agreement, net of offering costs of $9 and $203 for 2020 and 2019, respectively | 179 | 1,504 |
Payment of principal on finance lease liabilities | (545) | (986) |
Employee taxes paid for withheld shares upon equity award settlement | (220) | (295) |
Proceeds from employee stock purchase plan, net | 19 | 123 |
Net cash provided by financing activities | 2,753 | 346 |
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | 36 | (93) |
Net decrease in cash and cash equivalents and restricted cash | (3,155) | (1,365) |
Cash and cash equivalents and restricted cash | ||
Beginning of period | 12,105 | 11,503 |
End of period | 8,950 | 10,138 |
Supplemental disclosure of non-cash investing and financing activities | ||
Issuance of common stock under employee stock purchase plan | 14 | 88 |
Purchases of property and equipment recorded in accounts payable and accrued expenses | $ 0 | $ 318 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Financing activities | |||
Offering costs | $ 9 | $ 9 | $ 203 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | 1. Summary of Business and Significant Accounting Policies Marin Software Incorporated (the “Company”) was incorporated in Delaware in March 2006. The Company provides enterprise marketing software for advertisers and agencies to integrate, align and amplify their digital advertising spend across the web and mobile devices. Offered as a unified software-as-a-service (“SaaS”) advertising management solution for search, social and eCommerce advertising, the Company’s platform helps digital marketers convert precise audiences, improve financial performance and make better decisions. The Company’s corporate headquarters are located in San Francisco, California, and the Company has additional offices in the following locations: Austin, Dublin, London, New York, Paris and Shanghai. Liquidity The Company has incurred significant losses in each fiscal year since its incorporation in 2006. The Company incurred a net loss of $11,524 for the nine months ended September 30, 2020 and a net loss of $12,408 for the year ended December 31, 2019. As of September 30, 2020, the Company had an accumulated deficit of $288,636. The Company had cash, cash equivalents and restricted cash of $8,950 as of September 30, 2020. Management expects to incur additional losses and experience negative operating cash flows in the future. The Company’s ability to achieve its business objectives and to continue to meet its obligations is dependent upon maintaining a certain level of liquidity, which could be impacted by several factors, including market conditions and the ongoing effects of the novel coronavirus (COVID-19) pandemic. The recent global outbreak of COVID-19 has disrupted economic markets and the full economic impact, duration and spread of the COVID-19 is uncertain at this time and difficult to predict considering the rapidly evolving landscape. Since mid-March 2020, some of the Company’s customers have reduced the amount of digital advertising spend that they manage using the Company’s products, which has had an adverse effect on the Company’s results of operations, and some of the Company’s customers have requested extended payment terms, reduced fees or fee waivers, early contract terminations and other forms of contract relief. Although the Company has pursued, and expects to continue to pursue, additional sources of liquidity, including additional equity and debt financing, there is no assurance that any additional financing will be available on acceptable terms, or at all. During the three months ended September 30, 2020, the Company commenced a restructuring plan that included a global reduction-in-force and other cost saving actions to reduce its operating expenses and address the impact of the COVID-19 pandemic on its business (the “2020 Restructuring Plan”). The 2020 Restructuring Plan is expected to result in the reduction of the Company’s global workforce by approximately 60 employees, approximately half of which are located outside of the United States In May 2020, the Company entered into a loan agreement with Harvest Small Business Finance, LLC as the lender (“Lender”) for a loan in an aggregate principal amount of $3,320 (the “Loan”) pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and implemented by the U.S. Small Business Administration (the “SBA”). The Company expects to apply to the Lender for forgiveness of approximately $2,800 due under the Loan, but no assurances can be provided as to the amount or timing of any potential Loan forgiveness. In March 2019, the Company filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (“SEC”), which was declared effective by the SEC on May 10, 2019, under which it may offer a variety of equity and debt securities, with an aggregate offering price of up to $50,000. As part of that shelf registration, the Company entered into an equity distribution agreement with JMP Securities LLC, or JMP Securities under which it may sell shares of its common stock up to a gross aggregate offering price of $13,000 (Note 6). For the three and nine months ended September 30, 2020, the Company sold 134 shares under this agreement for net proceeds of $179 . For the nine months ended September 30, 2019, the Company sold 570 shares of its common stock under this agreement for net proceeds of $1,504. Since September 30, 2020 through October 29, 2020, the Company sold 1,900 shares of its common stock under its equity distribution agreement and received net proceeds of $5,994. The total amount of cash that may be generated under this equity distribution agreement is uncertain and depends on a variety of factors, including market conditions and the trading price and trading volume of the Company’s common stock. Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments, consisting of only normal recurring items, considered necessary for fair statement have been included. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020, or for other interim periods or future years. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2019 is derived from audited financial statements as of that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on March 23, 2020. The World Health Organization declared in March 2020 that the recent outbreak of the coronavirus disease named COVID-19 constitutes a pandemic. The Company has undertaken measures to protect its employees and customers. There can be no assurance that these measures will be effective, however, or that the Company can adopt them without adversely affecting its business operations. In addition, the COVID-19 pandemic has created and continues to create significant uncertainty in global financial markets, which may decrease technology spending, has depressed and may continue to depress demand for the Company’s platform and has harmed and may continue to harm the Company’s business and results of operations. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may impact the Company’s financial condition, liquidity, or results of operations is uncertain. The Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. Fair Value of Financial Instruments The Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at amounts that approximate fair value due to the short-term nature of those instruments. Based on borrowing rates available to the Company for loans with similar terms and maturities and in consideration of the Company’s credit risk profile, the carrying value of outstanding lease liabilities approximates fair value as well. Allowances for Doubtful Accounts and Revenue Credits The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the Company’s receivables portfolio based on historical experience, specific allowances for known troubled accounts and other available information. The Company does not require collateral from its customers, and it performs a regular review of its customers’ payment histories and associated credit risks. Certain contracts with advertising agencies contain sequential liability provisions, whereby the agency does not have an obligation to pay the Company until payment is received from the agency’s customers. In these circumstances, the Company evaluates the credit worthiness of the agency’s customers in addition to the agency itself. As of September 30, 2020 and December 31, 2019, the Company recorded an allowance for doubtful accounts of $1,176 and $1,559, respectively. From time to time, the Company provides credits to customers that typically relate to customer disputes or billing adjustments and are recorded as a reduction of revenue. Reserves for these revenue credits are accounted for as variable consideration under authoritative revenue recognition guidance (see Note 2) and are estimated based on historical credit activity. As of September 30, 2020, and December 31, 2019, the Company recorded an allowance for potential customer credits in the amount of $436 and $319, respectively. Goodwill Impairment Assessment The Company evaluates goodwill for impairment annually in the fourth quarter of its fiscal year, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. For the purposes of impairment testing, the Company has determined that it has one reporting unit. The Company performs its goodwill impairment test using the simplified method, whereby the fair value of the reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not considered impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, the goodwill is considered impaired by an amount equal to that difference. In November 2019, the Company performed a goodwill impairment assessment and recorded an impairment of goodwill of $1,910, reducing the goodwill balance to zero. Long-Lived Assets Impairment Assessment The Company evaluates long-lived assets, excluding goodwill, for potential impairment whenever adverse events or changes in circumstances or business climate indicate that the expected undiscounted future cash flows related to such long-lived assets may not be sufficient to support the net book value of such assets. An impairment loss is recognized only if the carrying value of a long-lived asset or asset group is not recoverable and exceeds its fair value. The carrying value of a long-lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. There were no such impairment losses recorded in any of the periods presented. Revenue Recognition The Company generates revenues principally from subscriptions either directly with advertisers or with advertising agencies to its platform for the management of search, social and eCommerce. The Company also generates revenues from strategic agreements with certain leading publishers. Under the subscription agreements, the Company receives consideration based on the advertising spend that customers manage on its platform. Revenues are recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. See Note 2 for further discussion on the Company’s revenues. Recent Accounting Pronouncements Adopted in 2020 In August 2018, the Financial Accounting Standards Board, (“FASB”), issued Accounting Standards Update, (“ASU”) 2018-13, Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software Recent Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 2. Revenue Recognition The Company generates its revenues principally from subscriptions, either directly with advertisers or with advertising agencies, to its platform for the management of search, social, eCommerce and display advertising. It also generates a portion of its revenues from long-term strategic agreements with certain leading publishers. Revenues are recognized when control of these services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company determines 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; and • Recognition of revenue when, or as, the Company satisfies its performance obligations. Subscription The Company’s subscription contracts provide advertisers with access to the Company’s advertising management platform. Advertisers do not have the right to take possession of the software supporting the services at any time. These contracts are generally one year or less in length. The subscription fee under most contracts consists of the greater of a minimum monthly platform fee or variable consideration based on the volume of advertising spend managed through the Company’s platform at the contractual percentage of spend. The variable portion generally includes tiered pricing, whereby the percentage of spend charged decreases as the value of advertising spend increases. The tiered pricing resets monthly and is consistent throughout the contract term. The Company has concluded that this volume-based pricing approach does not constitute a future material right as the pricing tiers are consistent throughout the term of the contract and similar pricing is typically offered to similar classes of customers within the same geographical areas and markets. Certain subscription contracts consist of only a flat monthly platform fee. Subscription fees are generally invoiced on a monthly basis in arrears based on the actual amount of advertising spend managed on the platform. In certain limited circumstances, the Company will invoice an advertiser in advance for the contractual minimum monthly platform fee for a defined future period, which is typically three to 12 months. The Company’s subscription services comprise a single stand-ready performance obligation satisfied over time as the advertiser simultaneously receives and consumes the benefit from the Company’s performance. This performance obligation constitutes a series of services that are substantially the same in nature and are provided over time using the same measure of progress. Revenues derived from these arrangements are recognized over time using an output method based upon the passage of time as this provides a faithful depiction of the pattern of transfer of control. Fixed minimum monthly platform fees are recognized ratably over the contract term as the single performance obligation is satisfied. Variable fees are allocated to the distinct month of the series in which they are earned because the terms of the variable payments relate specifically to the outcome from transferring the distinct time increment (month) of service and because such amounts reflect the fees to which the Company expects to be entitled for providing access to the advertising management platform for that period, consistent with the allocation objective of authoritative revenue guidance under Accounting Standards Codification 606 (“ASC 606”). Expected future revenues for subscription services related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2020 were as follows: Subscription Services Revenues 2020 (remaining three months) $ 900 2021 1,372 2022 116 Total $ 2,388 The Company applies the optional exemption under ASC 606 and does not disclose the value of unsatisfied performance obligations on subscription contracts with an original term of one year or less. The amounts disclosed above as remaining performance obligations consist primarily of fixed or monthly minimum fees under contracts with an original expected duration of greater than one year. The amounts exclude estimates of variable consideration such as volume-based contracts, as well as anticipated renewals of contracts. Strategic Agreements The Company has entered into long-term strategic agreements with certain leading search publishers. Under these strategic agreements, the Company receives consideration based on a percentage of the search advertising spend that its customers manage on its platform. These strategic agreements are generally billed on a quarterly basis. The majority of the Company’s strategic agreement revenue is concentrated in one revenue share agreement, executed with Google in December 2018, with an effective date of October 1, 2018 (the “Google Revenue Share Agreement”). Under the Google Revenue Share Agreement, which constitutes a single performance obligation, the Company receives both fixed and variable revenue share payments based on a percentage of the search advertising spend that is managed through the Company’s platform. The Google Revenue Share Agreement requires the Company to reinvest a specified percentage of these revenue share payments in its search technology platform to drive innovation. The performance obligation is expected to be satisfied ratably over the two-year contractual term using the output method based upon the passage of time, as Google simultaneously receives and consumes the benefit from the Company’s performance, which provides a faithful depiction of the pattern of transfer of control. The Google Revenue Share Agreement has a three-year term; however, until March 2020, when the Company and Google executed the first amendment to the original agreement (the “First Amendment”), Google could terminate the Google Revenue Share Agreement after two years, with no penalty if the Company did not meet certain financial metrics. Accordingly, the Company accounted for the Google Revenue Share Agreement as a two-year agreement with one optional renewal year. The revenue impact of the third year has been accounted for prospectively beginning in March 2020. The Company evaluates the total amount of variable revenue share payments expected to be earned from the Google Revenue Share Agreement using the expected value method, as it believes this method represents the most appropriate estimate for this consideration, based on historical service trends, the individual contract considerations and the Company’s best judgment. The Company includes estimates of variable consideration in revenues only to the extent that it believes it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company recognized revenues from the Google Revenue Share Agreement of $2,283 and $3,026, respectively, for the three months ended September 30, 2020 and 2019 and $6,849 and $8,988, respectively, for the nine months ended September 30, 2020 and 2019. As of September 30, 2020, the Company expects to recognize revenues totaling approximately $2,283 for the remaining three months of 2020, and $9,132 for the year ending December 31, 2020, related to remaining performance obligations under the Google Revenue Share Agreement. Disaggregation of Revenues Revenues by geographic area, based on the billing location of the customer, were as follows for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 United States of America $ 5,051 $ 8,802 $ 17,133 $ 28,135 United Kingdom 898 1,312 2,802 4,340 Other (1) 847 1,614 2,796 5,177 Total revenues, net $ 6,796 $ 11,728 $ 22,731 $ 37,652 (1) No individual country within the “Other” category accounted for 10% or more of revenues, net for any period presented. Revenues by nature of services performed were as follows for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Subscriptions $ 4,383 $ 8,696 $ 15,654 $ 28,548 Strategic agreements 2,413 3,032 7,077 9,104 Total revenues, net $ 6,796 $ 11,728 $ 22,731 $ 37,652 Contract Balances Accounts Receivable, Net The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoice amount, net of any allowances for doubtful accounts and revenue credits. A receivable is recognized in the period the Company provides the underlying services or when the right to consideration is unconditional. The balances of accounts receivable, net of the allowances for doubtful accounts and revenue credits, as of September 30, 2020 and December 31, 2019 are presented in the accompanying condensed consolidated balance sheets. Included in the balance of accounts receivable, net as of September 30, 2020 and December 31, 2019 was $2,300 and $3,101, respectively, related to the Google Revenue Share Agreement, which represented 42% and 35%, respectively, of accounts receivable, net. Customer Advances In certain situations, the Company receives cash payments from customers in advance of its performance of the underlying services. These advances from customers are included within accrued expenses and other current liabilities on the accompanying condensed consolidated balance sheets. Under the terms of service of the Company’s former Perfect Audience business, which was divested in November 2019, individual customer advances that were not used by the customer for a period of 180 days become the property of the Company. The Company recognized advances from customers that had remained outstanding for this period of time as breakage revenues at the time the Company has received full consideration and has no remaining obligations to the customer. The Company recognized breakage revenues of $0 and $49 for the three months ended September 30, 2020 and 2019, respectively, and $0 and $203 for the nine months ended September 30, 2020 and 2019, respectively. Deferred Strategic Agreement Revenues Due to the timing of revenue recognition under the Google Revenue Share Agreement, the contractual billings exceed revenue recognized to date, resulting in a contract liability. As of September 30, 2020 and December 31, 2019, the Company recorded deferred strategic agreement revenues of $2,232 and $2,182, respectively, within accrued expenses and other current liabilities on the accompanying condensed consolidated balance sheets. Costs to Obtain and Fulfill Contracts The Company capitalizes certain contract acquisition costs, consisting primarily of commissions and related payroll taxes, when customer contracts are signed. The Company also capitalizes certain contract fulfillment costs, consisting primarily of the portion of the payroll and fringe benefits of the Company’s professional services team that relates directly to performing on-boarding and integration services for new and existing customers (collectively, “deferred costs to obtain and fulfill contracts”). The deferred costs to obtain and fulfill contracts are amortized over the expected period of benefit, which the Company has determined to be approximately 30 months. This expected period of benefit takes into consideration the duration of the Company’s customer contracts, historical contract renewal rates, the underlying technology and other factors. Amortization expense for deferred costs to obtain and fulfill contracts is included in sales and marketing expense and cost of sales, respectively, on the accompanying condensed consolidated statements of comprehensive loss. The Company classifies deferred costs to obtain and fulfill contracts as current or non-current based on the timing of when the related amortization expense is expected to be recognized. The current portion of these deferred costs is included in prepaid expenses and other current assets, while the non-current portion is included in other non-current assets on the accompanying condensed consolidated balance sheets. Changes in the balances of deferred costs to obtain and fulfill contracts during the nine months ended September 30, 2020 were as follows: Deferred Costs to Obtain Contracts Deferred Costs to Fulfill Contracts Balances at December 31, 2019 $ 779 $ 281 Costs deferred 104 129 Amortization (510 ) (190 ) Balances at September 30, 2020 $ 373 $ 220 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | 3. The following table shows the components of property and equipment as of the dates presented: September 30, December 31, Estimated Useful Life 2020 2019 Software, including internally developed software 3 years $ 29,416 $ 27,974 Computer equipment 3 to 4 years 21,591 22,424 Finance lease ROU assets Shorter of useful life or lease term 5,067 5,067 Leasehold improvements Shorter of useful life or lease term 4,562 4,631 Office equipment, furniture and fixtures 3 to 5 years 1,883 1,986 Total property and equipment 62,519 62,082 Less: Accumulated depreciation and amortization (56,550 ) (53,558 ) Property and equipment, net $ 5,969 $ 8,524 Finance lease ROU assets consist of computer equipment. Amortization of internally developed software and depreciation for the nine months ended September 30, 2020 and 2019 was $3,991 and $4,237, respectively. The following table shows the components of accrued expenses and other current liabilities as of the dates presented: September 30, December 31, 2020 2019 Accrued salary and payroll-related expenses $ 1,508 $ 3,204 Deferred strategic agreement revenues 2,232 2,182 Accrued liabilities 970 1,165 Income taxes payable 370 480 Finance lease liabilities 68 601 Advanced billings 466 376 Sales and use tax payable - 9 Other 1,504 993 Total accrued expenses and other current liabilities $ 7,118 $ 9,010 |
Borrowing
Borrowing | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Borrowing | 4. Borrowing On April 23, 2020, the Company, entered into an original loan agreement with the Lender for a loan in an aggregate principal amount of $3,320 (the “Loan”) pursuant to the PPP under the CARES Act and implemented by the SBA. The Loan was originally evidenced by a Note dated effective as of April 22, 2020, but such Note was replaced by a Note with substantially the same terms, but with an updated effective date of May 5, 2020 to account for a delay in disbursement of funds. The Loan matures two years from the date of first disbursement of the Loan, which occurred on May 7, 2020. The Company received the loan proceeds on May 12, 2020. The Loan bears interest at a rate of 1% per annum, with all payments deferred through the six-month anniversary of the date of the Note. Principal and interest are payable monthly commencing on the first day of the next month after the expiration of the initial six-month deferment period and may be prepaid by the Company at any time prior to maturity without penalty. The Company may apply to Lender for forgiveness of amounts due under the Loan, with the amount of potential Loan forgiveness to be calculated in accordance with the requirements of the PPP based on payroll costs, any mortgage interest payments, any covered rent payments and any covered utilities payments during the 8-week period beginning on the date of first disbursement of the Loan. The Company expects to apply to the Lender for forgiveness of approximately $2,800 due under the Loan, but no assurances can be provided as to the amount or timing of any potential Loan forgiveness. |
Restructuring Activities
Restructuring Activities | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Activities | 5. Restructuring Activities 2020 Restructuring Plan During the three months ended September 30, 2020, the Company commenced the implementation of a restructuring and reduction-in- force plan to reduce the Company’s operating costs and address the impact of the COVID-19 pandemic, which is expected to result in the reduction of the Company’s global workforce by approximately 60 employees, approximately half of which are located outside of the United States. The majority of the planned workforce reductions were completed by September 30, 2020 with the remainder expected to be completed over the next few quarters. 2019 Restructuring Plan During the three months ended December 31, 2019, the Company initiated an organizational restructuring plan (the “2019 Restructuring Plan”) designed to reduce operating expenses in response to declines in revenues. The 2019 Restructuring Plan included a headcount reduction of approximately 6% of the Company’s workforce and the closure of certain leased facilities. Actions pursuant to the 2019 Restructuring Plan were substantially complete as of December 31, 2019, and further costs associated with this plan are not expected to be material in future periods. 2018 Restructuring Plan In January 2018, the Company initiated an organizational restructuring plan (the “2018 Restructuring Plan”) designed to reduce operating expenses in response to declines in revenues. The 2018 Restructuring Plan included a headcount reduction of approximately 13% of the Company’s workforce, the closure of certain leased facilities and the consolidation of space in the Company’s San Francisco headquarters. Actions pursuant to the 2018 Restructuring Plan were substantially complete as of June 30, 2019, and no further costs associated with this plan are expected. The Company initiated certain other organizational restructuring plans during 2018 that also aimed to reduce operating expenses and primarily consisted of further headcount reductions. For the three and nine months ended September 30, 2020, the Company recorded $1,051 of restructuring-related expenses in connection with the 2020 Restructuring Plan and an additional $43 for the nine months ended September 30, 2020 in connection with the 2019 Restructuring Plan in the accompanying condensed consolidated statements of comprehensive loss. For the three and nine months ended September 30, 2019, the Company recorded $0 and $229, respectively of restructuring-related expenses in connection with the 2018 Restructuring Plan, as well as other organizational restructuring plans, in the accompanying condensed consolidated statements of comprehensive loss. |
Shelf Registration Statement an
Shelf Registration Statement and At-the-Market Offering | 9 Months Ended |
Sep. 30, 2020 | |
Shelf Registration And At The Market Offering [Abstract] | |
Shelf Registration Statement and At-the-Market Offering | 6. On March 14, 2019, the Company filed a shelf registration statement on Form S-3 with the SEC, which was declared effective by the SEC on May 10, 2019 and enables the Company to offer its common stock, preferred stock, debt securities, warrants, subscription rights and units having an aggregate offering price of up to $50,000. As part of this shelf registration, the Company entered into an equity distribution agreement with JMP Securities, pursuant to which the Company may offer and sell shares of its common stock having an aggregate offering price of up to $13,000 through an at-the-market offering program administered by JMP Securities. The Company is not required to sell any securities under this offering program. JMP Securities is entitled to compensation of up to 5.0% of the gross proceeds from sales of the Company’s common stock pursuant to the equity distribution agreement. For the three and nine months ended September 30, 2020 the Company sold 134 shares of its common stock under this equity distribution agreement and received proceeds of $179, net of offering costs of $9 at a weighted average sales price of $1.41 per share. For the nine months ended September 30, 2019 the Company sold 570 shares of its common stock under this equity distribution agreement and received proceeds of $1,504, net of offering costs of $203, at a weighted average sales price of $3.00 per share. The amount of any future proceeds that may be realized from this equity distribution agreement depends on a variety of factors, including market conditions and the price of the Company’s common stock. As of September 30, 2020, the Company had common stock with an aggregate offering price of up to $10,959 available for issuance under the equity distribution agreement. Since September 30, 2020 through October 29, 2020, the Company sold 1,900 shares of its common stock under this equity distribution agreement and received proceeds of $5,994, net of offering costs of $260 at a weighted average sales price of $3.30 per share. |
Equity Award Plans
Equity Award Plans | 9 Months Ended |
Sep. 30, 2020 | |
Equity Award Plans [Abstract] | |
Equity Award Plans | 7. In April 2006, the Company’s Board of Directors (the “Board”) adopted and the stockholders approved the 2006 Stock Option Plan (“2006 Plan”), which provided for the grant of incentive and non-statutory stock options. In February 2013 the Board adopted and the stockholders approved the 2013 Equity Incentive Plan (“2013 Plan”), which became effective on March 21, 2013. At that time, the Company ceased to grant equity awards under the 2006 Plan. Under the 2013 Plan, 643 shares of common stock were originally reserved for issuance. Additionally, all reserved and unissued shares under the 2006 Plan are eligible for issuance under the 2013 Plan. The 2013 Plan authorizes the award of incentive and non-statutory stock options, restricted stock awards, stock appreciation rights, restricted stock units (“RSUs”), performance awards and stock bonuses to the Company’s employees, directors, consultants, independent contractors and advisors. On January 1 of each calendar year through 2023, the number of shares of common stock reserved under the 2013 Plan will automatically increase by an amount equal to 5% of the total outstanding shares as of the immediately preceding December 31, or such lesser number of shares as determined by the Board. Pursuant to terms of the 2013 Plan, the shares available for issuance increased by 341 shares of common stock on January 1, 2020. As of September 30, 2020, 1,077 shares of common stock were available for future grants under the 2013 Plan. Stock Options A summary of stock option activity under the 2006 Plan and 2013 Plan is as follows: Options Outstanding Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Balances at December 31, 2019 500 $ 23.38 5.77 $ — Options forfeited and cancelled (68 ) 14.70 — — Balances at September 30, 2020 432 24.75 5.44 — Options exercisable 387 27.16 5.07 — Options vested 387 27.16 5.07 — Options vested and expected to vest 425 25.09 5.39 — RSUs A summary of RSUs granted and unvested under the 2013 Plan is as follows: RSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Unit Granted and unvested at December 31, 2019 1,104 $ 4.55 RSUs granted 477 1.43 RSUs vested (160 ) 5.39 RSUs cancelled and withheld to cover taxes (426 ) 4.67 Granted and unvested at September 30, 2020 995 $ 2.87 Employee Stock Purchase Plan In February 2013, the Board and stockholders approved the 2013 Employee Stock Purchase Plan (“2013 ESPP”), under which 143 shares of common stock were originally reserved for issuance. The 2013 ESPP became effective on March 22, 2013. The 2013 ESPP generally provides for six-month purchase periods and the purchase price for shares of common stock purchased under the 2013 ESPP is 85% of the lesser of the fair market value of the common stock on (1) the first trading day of the applicable offering period and (2) the last trading day of each purchase period in the applicable offering period. On January 1 of each calendar year following the first offering date, the number of shares reserved under the 2013 ESPP automatically increases by an amount equal to 1% of the total outstanding shares as of immediately preceding December 31, but not to exceed 100 shares. Pursuant to terms of the 2013 ESPP, the shares available for issuance increased by 68 shares on January 1, 2020. As of September 30, 2020, 195 shares were reserved for issuance under the 2013 ESPP. During the three and nine months ended September 30, 2020, zero and 11 shares, respectively, were issued under the 2013 ESPP. During the three and nine months ended September 30, 2019, zero and 42 shares, respectively, were issued under the 2013 ESPP. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation For stock-based awards granted by the Company, stock-based compensation expense is measured at grant date based on the fair value of the award and is expensed over the requisite service period. The Company recorded stock-based compensation expense of $195 and $653 for the three months ended September 30, 2020 and 2019, respectively, and $1,208 and $2,100 for the nine months ended September 30, 2020 and 2019, respectively. Stock Options The Company uses the Black-Scholes option-pricing model to estimate the fair value of options. This model requires the input of highly subjective assumptions including the expected volatility, risk-free interest rate and the expected life of options. There were no stock options granted during the three and nine months ended September 30, 2020. The Company estimates the expected volatility of its common stock and expected life of its stock options based on its own historical experience. The expected volatility reflects the actual historical volatility of the price of the Company’s common stock since it began trading publicly in March 2013. The expected life represents the period of time that stock options are expected to be outstanding, based on historical exercise and employee departure behavior. The Company has no history or expectation of paying cash dividends on its common stock. The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the options in effect at the time of grant. There were no exercises of stock options during the three and nine months ended September 30, 2020 and 2019. Compensation expense, net of estimated forfeitures, is recognized ratably over the requisite service period. As of September 30, 2020, there was $96 of unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 1.9 years. RSUs As of September 30, 2020, there was $2,073 of unrecognized compensation expense, net of estimated forfeitures, related to RSUs, which is expected to be recognized over a weighted-average period of 2.2 years. The Company uses the fair market value of the underlying common stock on the dates of grant to determine the fair value of RSUs. Employee Stock Purchase Plan The Company estimates the fair value of purchase rights under the 2013 ESPP using the Black-Scholes valuation model. The fair value of each purchase right under the 2013 ESPP is estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with assumptions substantially similar to those used for the valuation of stock option awards, with the exception of the expected life. The expected life is estimated to be six months, which is consistent with the purchase periods under the 2013 ESPP. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 9. Operating and Finance Leases The Company evaluates new contractual arrangements at inception to determine if the contract is or contains a lease. For any contracts that are or contain a lease, the Company determines the appropriate classification of each identified lease as operating or finance. For all identified leases, the Company records the related lease liabilities and ROU assets based on the future minimum lease payments over the lease term, which only includes options to renew the lease if it is reasonably certain that the Company will exercise that option. For leases with original terms of twelve months or less, the Company recognizes the lease expense as incurred and does not recognize lease liabilities and ROU assets. The Company has operating leases for corporate offices worldwide and for space at a data center. Additionally, the Company leases computer equipment through various finance leases. Lease liabilities are measured based on the future minimum lease payments discounted over the lease term. The Company uses the discount rate implicit in the lease whenever that rate is readily determinable. For leases where no such rate is determinable, the Company uses its incremental borrowing rate, or the rate of interest that Company would have to pay to borrow an amount equal to the lease payments, on a collateralized basis over a similar term and in a similar economic environment. As of September 30, 2020, the weighted-average rate used in discounting the lease liabilities for ROU operating and finance leases was 6.4% and 5.4%, respectively. Current and non-current operating lease liabilities are presented on the condensed consolidated balance sheet, while current finance lease liabilities are included in accrued expenses and other current liabilities, and non-current finance lease liabilities are included in other long-term liabilities on the condensed consolidated balance sheets. ROU assets are measured based on the associated lease liabilities, adjusted for any lease incentives such as tenant improvement allowances. ROU assets for operating leases are presented as non-current assets on the condensed consolidated balance sheet, while ROU assets for finance leases are included within property and equipment, net. For operating leases, the Company recognizes the expense for lease payments on straight-line basis over the lease term. As of September 30, 2020, the weighted-average remaining lease term for ROU operating and finance leases was 1.5 years and 0.2 years, respectively. As of September 30, 2020, the Company had net operating lease ROU assets of $9,336. Operating lease costs, consisting primarily of rental expense, were approximately $1,868 and $1,943, for the three months ended September 30, 2020 and 2019, respectively, and $5,628 and $5,869, for the nine months ended September 30, 2020 and 2019, respectively. Variable rent expense was not significant for the three and nine months ended September 30, 2020 and 2019. In January 2020, the Company executed renewal service orders with a third-party data center. In February 2019, the Company executed a new lease agreement for office space in Paris and exited its prior office space shortly thereafter. There were no material costs incurred associated with that exit. As part of the new lease, the Company was required to enter into an irrevocable $109 letter of credit. The cash used to secure the letter of credit has been classified as restricted cash on the accompanying condensed consolidated balance sheet. In September 2020, the Company executed a new lease agreement for office space in Dublin, Ireland and exited its prior office space. There were no material costs incurred associated with that exit. At various dates between August 2015 and October 2016, the Company entered into finance lease arrangements with two separate manufacturers for computer equipment. These finance leases are collateralized by the underlying computer equipment. As of September 30, 2020, the Company had net finance lease ROU assets of $188. Finance lease ROU assets are included in property and equipment on the condensed consolidated balance sheets. Interest expense associated with finance leases is included within other income, net, on the accompanying condensed consolidated statements of comprehensive loss. Finance lease costs for the three and nine months ended September 30, 2020 consisted of $146 and $478, respectively, in depreciation of the leased assets and $1 and $13, respectively, in interest expense. Finance lease costs for the three and nine months ended September 30, 2019 consisted of $184 and $545, respectively, in depreciation of the leased assets and $13 and $55, respectively, in interest expense. The maturities of operating lease and finance lease liabilities as September 30, 2020 are as follows: Operating Leases Finance Leases 2020 (remaining three months) $ 1,872 $ 57 2021 7,079 12 2022 1,845 — Total lease payments 10,796 69 Less: Amount representing imputed interest (493 ) (1 ) Present value of lease liabilities 10,303 68 Less: Current portion of lease liabilities (6,820 ) (68 ) Non-current portion of lease liabilities $ 3,483 $ — Supplemental cash flow information related to operating leases was as follows: Nine Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 545 Operating cash flows from finance leases 16 Operating cash flows from operating leases 5,958 ROU assets obtained in exchange for lease liabilities: Finance lease liabilities $ — Operating lease liabilities 6,720 The operating lease ROU asset obtained relates to the Las Vegas colocation service orders executed in January 2020, as well as a new Austin office lease executed in January 2020 and a new office lease in Dublin, Ireland executed in September 2020. Subleases The Company subleases portions of its San Francisco office space. In August 2018, the Company entered into agreements to (a) extend its existing sublease for a portion of its San Francisco office space through July 2022, and (b) sublease an additional 14,380 square feet of its San Francisco office space to an unrelated third party which expired in July 2020. The Company also had a sublease for its Portland office space with an unrelated third party which expired in May 2020. Income from these sublease agreements is included in other income, net, on the accompanying condensed consolidated statements of comprehensive loss. Sublease income was $226 and $570 for the three months ended September 30, 2020 and 2019, respectively, and $1,303 and $1,711 for the nine months ended September 30, 2020 and 2019, respectively. Future minimum amounts due under subleases as of September 30, 2020 were as follows: Operating Sublease Income 2020 (remaining three months) $ 268 2021 1,105 2022 616 Total amounts due under subleases $ 1,989 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company’s quarterly provision for income taxes is based on an estimated effective annual income tax rate, and it also includes the tax impact of certain unusual or infrequently occurring items, if any. These may include changes in judgment about valuation allowances and effects of changes in tax laws or rates in the interim period in which they occur. Income tax benefit for the three and nine months ended September 30, 2020 was $72 and $568, respectively, on pre-tax losses of $4,144 and $12,092, respectively. As of September 30, 2020, the income tax rate varies from the federal income tax rate primarily due to a partial release of foreign uncertain tax positions, valuation allowances in the United States and taxable income generated by the Company’s foreign wholly owned subsidiaries. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for valuation allowances on a quarterly basis. There is no income tax benefit recognized with respect to losses incurred and no income tax expense recognized with respect to earnings generated in jurisdictions with a valuation allowance. This causes variability in the Company’s effective tax rate. The Company will maintain the valuation allowances until it is more likely than not that the net deferred tax assets will be realized. The CARES Act enacted on March 27, 2020 did not provide an income tax benefit for the Company given the U.S. losses and the full valuation allowance against its net deferred tax assets. Tax positions taken by the Company are subject to audits by multiple tax jurisdictions. The Company believes that it has provided adequate reserves for its uncertain tax positions for all tax years still open for assessment. The Company also believes that it does not have any tax position for which it is not reasonably possible that the total amounts of uncertain tax positions will significantly increase or decrease within the next year. For the three and nine months ended September 30, 2020 and 2019, the Company did not recognize any material interest or penalties related to uncertain tax positions. |
Net Loss Per Share Available to
Net Loss Per Share Available to Common Stockholders | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Available to Common Stockholders | 11. Basic net loss per share of common stock is calculated by dividing the net loss available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted net loss per share of common stock is computed by dividing the net loss using the weighted-average number of shares of common stock, excluding common stock subject to repurchase, and, if dilutive, potential shares of common stock outstanding during the period. Basic and diluted net loss per share is the same for all periods presented, as the impact of all potentially dilutive outstanding securities was anti-dilutive. The following table presents the calculation of basic and diluted net loss per share for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss available to common stockholders $ (4,072 ) $ (3,273 ) $ (11,524 ) $ (11,882 ) Denominator: Weighted average number of shares, basic and diluted 7,017 6,631 6,916 6,262 Net loss per share available to common stockholders Basic and diluted net loss per common share available to common stockholders $ (0.58 ) $ (0.49 ) $ (1.67 ) $ (1.90 ) The following table presents the potential shares of common stock outstanding that were excluded from the computation of diluted net loss per share available to common stockholders for the periods presented because including them would have been anti-dilutive: Three and Nine Months Ended September 30, 2020 2019 Options to purchase common stock 432 550 Unvested RSUs 995 1,113 Total 1,427 1,663 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. The Company defines the term “chief operating decision maker” to be the Chief Executive Officer. The Chief Executive Officer reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it operates as a single reporting and operating segment. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Legal Matters From time to time, the Company may be involved in lawsuits, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters, which arise in the ordinary course of business. In accordance with GAAP, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, ruling, advice of legal counsel and other information and events pertaining to a particular case. Litigation is inherently unpredictable. If any unfavorable ruling was to occur in any specific period or if a loss becomes probable and estimable, there exists the possibility of a material adverse impact on the Company’s results of operations, financial position or cash flows. As of September 30, 2020, no material amounts are recorded related to legal proceedings on the unaudited condensed consolidated balance sheet. Indemnification The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to the agreements, each party may indemnify, defend and hold the other party harmless with respect to such claim, suit or proceeding brought against it by a third party alleging that the indemnifying party’s intellectual property infringes upon the intellectual property of the third party, or results from a breach of the indemnifying party’s representations and warranties or covenants, or that results from any acts of negligence or willful misconduct. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Historically, the Company has not been obligated to make significant payments for these obligations and no liabilities have been recorded on the unaudited condensed consolidated balance sheet as of September 30, 2020 and the audited consolidated balance sheet as of December 31, 2019. The Company also indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company has a directors and officers insurance policy that enables the Company to recover a portion of any future amounts paid. Historically, the Company has not been obligated to make any payments for these obligations and no liabilities have been recorded as of September 30, 2020 and December 31, 2019. Other Contingencies The Company is subject to claims and assessments from time to time in the ordinary course of business. The Company’s management does not believe that any such matters, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | 14. Subsequent Event Since September 30, 2020 through October 29, 2020, the Company sold 1,900 shares of its common stock under its equity distribution agreement and received proceeds of $5,994, net of offering costs of $260 at a weighted average sales price of $3.30 per share. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Liquidity | Liquidity The Company has incurred significant losses in each fiscal year since its incorporation in 2006. The Company incurred a net loss of $11,524 for the nine months ended September 30, 2020 and a net loss of $12,408 for the year ended December 31, 2019. As of September 30, 2020, the Company had an accumulated deficit of $288,636. The Company had cash, cash equivalents and restricted cash of $8,950 as of September 30, 2020. Management expects to incur additional losses and experience negative operating cash flows in the future. The Company’s ability to achieve its business objectives and to continue to meet its obligations is dependent upon maintaining a certain level of liquidity, which could be impacted by several factors, including market conditions and the ongoing effects of the novel coronavirus (COVID-19) pandemic. The recent global outbreak of COVID-19 has disrupted economic markets and the full economic impact, duration and spread of the COVID-19 is uncertain at this time and difficult to predict considering the rapidly evolving landscape. Since mid-March 2020, some of the Company’s customers have reduced the amount of digital advertising spend that they manage using the Company’s products, which has had an adverse effect on the Company’s results of operations, and some of the Company’s customers have requested extended payment terms, reduced fees or fee waivers, early contract terminations and other forms of contract relief. Although the Company has pursued, and expects to continue to pursue, additional sources of liquidity, including additional equity and debt financing, there is no assurance that any additional financing will be available on acceptable terms, or at all. During the three months ended September 30, 2020, the Company commenced a restructuring plan that included a global reduction-in-force and other cost saving actions to reduce its operating expenses and address the impact of the COVID-19 pandemic on its business (the “2020 Restructuring Plan”). The 2020 Restructuring Plan is expected to result in the reduction of the Company’s global workforce by approximately 60 employees, approximately half of which are located outside of the United States In May 2020, the Company entered into a loan agreement with Harvest Small Business Finance, LLC as the lender (“Lender”) for a loan in an aggregate principal amount of $3,320 (the “Loan”) pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and implemented by the U.S. Small Business Administration (the “SBA”). The Company expects to apply to the Lender for forgiveness of approximately $2,800 due under the Loan, but no assurances can be provided as to the amount or timing of any potential Loan forgiveness. In March 2019, the Company filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (“SEC”), which was declared effective by the SEC on May 10, 2019, under which it may offer a variety of equity and debt securities, with an aggregate offering price of up to $50,000. As part of that shelf registration, the Company entered into an equity distribution agreement with JMP Securities LLC, or JMP Securities under which it may sell shares of its common stock up to a gross aggregate offering price of $13,000 (Note 6). For the three and nine months ended September 30, 2020, the Company sold 134 shares under this agreement for net proceeds of $179 . For the nine months ended September 30, 2019, the Company sold 570 shares of its common stock under this agreement for net proceeds of $1,504. Since September 30, 2020 through October 29, 2020, the Company sold 1,900 shares of its common stock under its equity distribution agreement and received net proceeds of $5,994. The total amount of cash that may be generated under this equity distribution agreement is uncertain and depends on a variety of factors, including market conditions and the trading price and trading volume of the Company’s common stock. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments, consisting of only normal recurring items, considered necessary for fair statement have been included. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020, or for other interim periods or future years. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2019 is derived from audited financial statements as of that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on March 23, 2020. The World Health Organization declared in March 2020 that the recent outbreak of the coronavirus disease named COVID-19 constitutes a pandemic. The Company has undertaken measures to protect its employees and customers. There can be no assurance that these measures will be effective, however, or that the Company can adopt them without adversely affecting its business operations. In addition, the COVID-19 pandemic has created and continues to create significant uncertainty in global financial markets, which may decrease technology spending, has depressed and may continue to depress demand for the Company’s platform and has harmed and may continue to harm the Company’s business and results of operations. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may impact the Company’s financial condition, liquidity, or results of operations is uncertain. The Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at amounts that approximate fair value due to the short-term nature of those instruments. Based on borrowing rates available to the Company for loans with similar terms and maturities and in consideration of the Company’s credit risk profile, the carrying value of outstanding lease liabilities approximates fair value as well. |
Allowances for Doubtful Accounts and Revenue Credits | Allowances for Doubtful Accounts and Revenue Credits The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the Company’s receivables portfolio based on historical experience, specific allowances for known troubled accounts and other available information. The Company does not require collateral from its customers, and it performs a regular review of its customers’ payment histories and associated credit risks. Certain contracts with advertising agencies contain sequential liability provisions, whereby the agency does not have an obligation to pay the Company until payment is received from the agency’s customers. In these circumstances, the Company evaluates the credit worthiness of the agency’s customers in addition to the agency itself. As of September 30, 2020 and December 31, 2019, the Company recorded an allowance for doubtful accounts of $1,176 and $1,559, respectively. From time to time, the Company provides credits to customers that typically relate to customer disputes or billing adjustments and are recorded as a reduction of revenue. Reserves for these revenue credits are accounted for as variable consideration under authoritative revenue recognition guidance (see Note 2) and are estimated based on historical credit activity. As of September 30, 2020, and December 31, 2019, the Company recorded an allowance for potential customer credits in the amount of $436 and $319, respectively. |
Goodwill Impairment Assessment | Goodwill Impairment Assessment The Company evaluates goodwill for impairment annually in the fourth quarter of its fiscal year, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. For the purposes of impairment testing, the Company has determined that it has one reporting unit. The Company performs its goodwill impairment test using the simplified method, whereby the fair value of the reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not considered impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, the goodwill is considered impaired by an amount equal to that difference. In November 2019, the Company performed a goodwill impairment assessment and recorded an impairment of goodwill of $1,910, reducing the goodwill balance to zero. |
Long-Lived Assets Impairment Assessment | Long-Lived Assets Impairment Assessment The Company evaluates long-lived assets, excluding goodwill, for potential impairment whenever adverse events or changes in circumstances or business climate indicate that the expected undiscounted future cash flows related to such long-lived assets may not be sufficient to support the net book value of such assets. An impairment loss is recognized only if the carrying value of a long-lived asset or asset group is not recoverable and exceeds its fair value. The carrying value of a long-lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. There were no such impairment losses recorded in any of the periods presented. |
Revenue Recognition | Revenue Recognition The Company generates revenues principally from subscriptions either directly with advertisers or with advertising agencies to its platform for the management of search, social and eCommerce. The Company also generates revenues from strategic agreements with certain leading publishers. Under the subscription agreements, the Company receives consideration based on the advertising spend that customers manage on its platform. Revenues are recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. See Note 2 for further discussion on the Company’s revenues. |
Recent Accounting Pronouncements Adopted in 2020 | Recent Accounting Pronouncements Adopted in 2020 In August 2018, the Financial Accounting Standards Board, (“FASB”), issued Accounting Standards Update, (“ASU”) 2018-13, Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software |
Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Expected Future Revenue for Subscription Services Related to Performance Obligations Unsatisfied or Partially Unsatisfied | Expected future revenues for subscription services related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2020 were as follows: Subscription Services Revenues 2020 (remaining three months) $ 900 2021 1,372 2022 116 Total $ 2,388 |
Disaggregation of Revenues | Revenues by geographic area, based on the billing location of the customer, were as follows for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 United States of America $ 5,051 $ 8,802 $ 17,133 $ 28,135 United Kingdom 898 1,312 2,802 4,340 Other (1) 847 1,614 2,796 5,177 Total revenues, net $ 6,796 $ 11,728 $ 22,731 $ 37,652 (1) No individual country within the “Other” category accounted for 10% or more of revenues, net for any period presented. Revenues by nature of services performed were as follows for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Subscriptions $ 4,383 $ 8,696 $ 15,654 $ 28,548 Strategic agreements 2,413 3,032 7,077 9,104 Total revenues, net $ 6,796 $ 11,728 $ 22,731 $ 37,652 |
Changes in Balances of Deferred Costs to Obtain and Fulfill Contracts | Changes in the balances of deferred costs to obtain and fulfill contracts during the nine months ended September 30, 2020 were as follows: Deferred Costs to Obtain Contracts Deferred Costs to Fulfill Contracts Balances at December 31, 2019 $ 779 $ 281 Costs deferred 104 129 Amortization (510 ) (190 ) Balances at September 30, 2020 $ 373 $ 220 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Components [Abstract] | |
Components of Property and Equipment | The following table shows the components of property and equipment as of the dates presented: September 30, December 31, Estimated Useful Life 2020 2019 Software, including internally developed software 3 years $ 29,416 $ 27,974 Computer equipment 3 to 4 years 21,591 22,424 Finance lease ROU assets Shorter of useful life or lease term 5,067 5,067 Leasehold improvements Shorter of useful life or lease term 4,562 4,631 Office equipment, furniture and fixtures 3 to 5 years 1,883 1,986 Total property and equipment 62,519 62,082 Less: Accumulated depreciation and amortization (56,550 ) (53,558 ) Property and equipment, net $ 5,969 $ 8,524 |
Components of Accrued Expenses and Other Current Liabilities | The following table shows the components of accrued expenses and other current liabilities as of the dates presented: September 30, December 31, 2020 2019 Accrued salary and payroll-related expenses $ 1,508 $ 3,204 Deferred strategic agreement revenues 2,232 2,182 Accrued liabilities 970 1,165 Income taxes payable 370 480 Finance lease liabilities 68 601 Advanced billings 466 376 Sales and use tax payable - 9 Other 1,504 993 Total accrued expenses and other current liabilities $ 7,118 $ 9,010 |
Equity Award Plans (Tables)
Equity Award Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Award Plans [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity under the 2006 Plan and 2013 Plan is as follows: Options Outstanding Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Balances at December 31, 2019 500 $ 23.38 5.77 $ — Options forfeited and cancelled (68 ) 14.70 — — Balances at September 30, 2020 432 24.75 5.44 — Options exercisable 387 27.16 5.07 — Options vested 387 27.16 5.07 — Options vested and expected to vest 425 25.09 5.39 — |
Summary of RSUs Granted and Unvested | A summary of RSUs granted and unvested under the 2013 Plan is as follows: RSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Unit Granted and unvested at December 31, 2019 1,104 $ 4.55 RSUs granted 477 1.43 RSUs vested (160 ) 5.39 RSUs cancelled and withheld to cover taxes (426 ) 4.67 Granted and unvested at September 30, 2020 995 $ 2.87 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Maturities of Lease Liabilities | The maturities of operating lease and finance lease liabilities as September 30, 2020 are as follows: Operating Leases Finance Leases 2020 (remaining three months) $ 1,872 $ 57 2021 7,079 12 2022 1,845 — Total lease payments 10,796 69 Less: Amount representing imputed interest (493 ) (1 ) Present value of lease liabilities 10,303 68 Less: Current portion of lease liabilities (6,820 ) (68 ) Non-current portion of lease liabilities $ 3,483 $ — |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to operating leases was as follows: Nine Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 545 Operating cash flows from finance leases 16 Operating cash flows from operating leases 5,958 ROU assets obtained in exchange for lease liabilities: Finance lease liabilities $ — Operating lease liabilities 6,720 |
Future Minimum Amounts Due Under Subleases | Future minimum amounts due under subleases as of September 30, 2020 were as follows: Operating Sublease Income 2020 (remaining three months) $ 268 2021 1,105 2022 616 Total amounts due under subleases $ 1,989 |
Net Loss Per Share Available _2
Net Loss Per Share Available to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss available to common stockholders $ (4,072 ) $ (3,273 ) $ (11,524 ) $ (11,882 ) Denominator: Weighted average number of shares, basic and diluted 7,017 6,631 6,916 6,262 Net loss per share available to common stockholders Basic and diluted net loss per common share available to common stockholders $ (0.58 ) $ (0.49 ) $ (1.67 ) $ (1.90 ) |
Schedule of Potential Shares Common Stock Outstanding Excluded from Computation of Diluted Net Loss Per Share | The following table presents the potential shares of common stock outstanding that were excluded from the computation of diluted net loss per share available to common stockholders for the periods presented because including them would have been anti-dilutive: Three and Nine Months Ended September 30, 2020 2019 Options to purchase common stock 432 550 Unvested RSUs 995 1,113 Total 1,427 1,663 |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies - Additional Information (Details) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 29, 2020USD ($)shares | Sep. 30, 2020USD ($)Employeeshares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Reportingunitshares | Sep. 30, 2019USD ($)shares | Dec. 31, 2019USD ($) | May 07, 2020USD ($) | ||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Net loss | $ (4,072) | $ (3,273) | $ (11,524) | $ (11,882) | $ (12,408) | |||
Accumulated deficit | (288,636) | (288,636) | (277,112) | [1] | ||||
Cash, cash equivalents and restricted cash | $ 8,950 | $ 8,950 | ||||||
Common stock sold under agreement | shares | 134 | 134 | 570 | |||||
Net proceeds from common stock sold | $ 179 | $ 179 | $ 1,504 | |||||
Allowance for doubtful accounts | 1,176 | 1,176 | 1,559 | |||||
Allowance for potential customer revenue credits | 436 | $ 436 | 319 | |||||
Number of reporting unit | Reportingunit | 1 | |||||||
Impairment of goodwill | $ 1,910 | |||||||
Goodwill | $ 0 | $ 0 | ||||||
Accounting Standards Update 2018-13 [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Accounting standards update, adopted [true false] | true | true | ||||||
Accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | ||||||
Accounting standards update, immaterial effect [true false] | true | true | ||||||
Accounting Standards Update 2018-15 [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Accounting standards update, adopted [true false] | true | true | ||||||
Accounting standards update, adoption date | Jan. 1, 2020 | Jan. 1, 2020 | ||||||
Accounting standards update, immaterial effect [true false] | true | true | ||||||
Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Aggregate offering price | $ 50,000 | $ 50,000 | ||||||
Subsequent Event [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Common stock sold under agreement | shares | 1,900 | |||||||
Net proceeds from common stock sold | $ 5,994 | |||||||
JMP Securities [Member] | Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Aggregate offering price | $ 13,000 | $ 13,000 | ||||||
Paycheck Protection Program [Member] | Harvest Small Business Finance, LLC [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Aggregate principal amount of the loan | $ 3,320 | |||||||
Debt instrument expected loan forgiveness | $ 2,800 | |||||||
Restructuring and Reduction in Force Plan [Member] | 2020 Restructuring Plan [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Expected reduction of workforce | Employee | 60 | |||||||
[1] | Derived from the Company’s audited consolidated financial statements as of December 31, 2019. |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||||
Subscription contracts term | 1 year | ||||
Revenues | $ 6,796 | $ 11,728 | $ 22,731 | $ 37,652 | |
Remaining performance obligation | 2,388 | $ 2,388 | |||
Individual customer advances refund claim period | 180 days | ||||
Breakage revenues | 0 | 49 | $ 0 | 203 | |
Deferred strategic agreement revenues | 2,232 | $ 2,232 | $ 2,182 | ||
Deferred costs expected period of benefit | 30 months | ||||
Google [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Strategic agreement term | 3 years | ||||
Strategic agreement term, optional renewal term | 1 year | ||||
Revenues | 2,283 | $ 3,026 | $ 6,849 | $ 8,988 | |
Remaining performance obligation | 9,132 | 9,132 | |||
Accounts receivable | $ 2,300 | $ 2,300 | $ 3,101 | ||
Google [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Percentage of concentration risk | 42.00% | 35.00% | |||
Minimum [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Advance advertiser invoicing period | 3 months | ||||
Maximum [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Advance advertiser invoicing period | 12 months | ||||
Maximum [Member] | Google [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Strategic agreement term | 2 years |
Revenues - Expected Future Reve
Revenues - Expected Future Revenue for Subscription Services Related to Performance Obligations Unsatisfied or Partially Unsatisfied (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Disaggregation Of Revenue [Line Items] | |
Subscription Services Revenues | $ 2,388 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Subscription Services Revenues | $ 900 |
Remaining performance obligation, satisfaction period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Subscription Services Revenues | $ 1,372 |
Remaining performance obligation, satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Subscription Services Revenues | $ 116 |
Remaining performance obligation, satisfaction period | 1 year |
Revenues - Expected Future Re_2
Revenues - Expected Future Revenue for Subscription Services Related to Performance Obligations Unsatisfied or Partially Unsatisfied (Details1) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue From Contract With Customer [Abstract] | |
Subscription Services Revenues | $ 2,388 |
Revenues - Additional Informa_2
Revenues - Additional Information (Details1) $ in Thousands | Sep. 30, 2020USD ($) |
Disaggregation Of Revenue [Line Items] | |
Remaining performance obligation | $ 2,388 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Remaining performance obligation | $ 900 |
Remaining performance obligation, satisfaction period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Remaining performance obligation | $ 1,372 |
Remaining performance obligation, satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Remaining performance obligation | $ 116 |
Remaining performance obligation, satisfaction period | 1 year |
Google [Member] | |
Disaggregation Of Revenue [Line Items] | |
Remaining performance obligation | $ 9,132 |
Google [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Remaining performance obligation | $ 2,283 |
Remaining performance obligation, satisfaction period | 3 months |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | $ 6,796 | $ 11,728 | $ 22,731 | $ 37,652 | |
Subscriptions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 4,383 | 8,696 | 15,654 | 28,548 | |
Strategic Agreements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 2,413 | 3,032 | 7,077 | 9,104 | |
United States of America [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 5,051 | 8,802 | 17,133 | 28,135 | |
United Kingdom [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 898 | 1,312 | 2,802 | 4,340 | |
Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | [1] | $ 847 | $ 1,614 | $ 2,796 | $ 5,177 |
[1] | No individual country within the “Other” category accounted for 10% or more of revenues, net for any period presented. |
Revenues - Changes in Balances
Revenues - Changes in Balances of Deferred Costs to Obtain and Fulfill Contracts (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Deferred Costs to Obtain Contracts [Member] | |
Capitalized Contract Cost [Line Items] | |
Balance at beginning of period | $ 779 |
Costs deferred | 104 |
Amortization | (510) |
Balance at end of period | 373 |
Deferred Costs to Fulfill Contracts [Member] | |
Capitalized Contract Cost [Line Items] | |
Balance at beginning of period | 281 |
Costs deferred | 129 |
Amortization | (190) |
Balance at end of period | $ 220 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Property and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | ||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 62,519 | $ 62,082 | |
Less: Accumulated depreciation and amortization | (56,550) | (53,558) | |
Property and equipment, net | 5,969 | 8,524 | [1] |
Software, Including Internally Developed Software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 29,416 | 27,974 | |
Estimated useful life | 3 years | ||
Computer Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 21,591 | 22,424 | |
Computer Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Computer Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life | 4 years | ||
Finance Lease ROU Assets [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 5,067 | 5,067 | |
Leasehold Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 4,562 | 4,631 | |
Office Equipment, Furniture and Fixtures [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 1,883 | $ 1,986 | |
Office Equipment, Furniture and Fixtures [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Office Equipment, Furniture and Fixtures [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
[1] | Derived from the Company’s audited consolidated financial statements as of December 31, 2019. |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Balance Sheet Components [Abstract] | ||
Depreciation and amortization | $ 3,991 | $ 4,237 |
Balance Sheet Components - Co_2
Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Balance Sheet Components [Abstract] | |||
Accrued salary and payroll-related expenses | $ 1,508 | $ 3,204 | |
Deferred strategic agreement revenues | 2,232 | 2,182 | |
Accrued liabilities | 970 | 1,165 | |
Income taxes payable | 370 | 480 | |
Finance lease liabilities | 68 | 601 | |
Advanced billings | 466 | 376 | |
Sales and use tax payable | 0 | 9 | |
Other | 1,504 | 993 | |
Total accrued expenses and other current liabilities | $ 7,118 | $ 9,010 | [1] |
[1] | Derived from the Company’s audited consolidated financial statements as of December 31, 2019. |
Borrowing - Additional Informat
Borrowing - Additional Information (Details) - Paycheck Protection Program [Member] - Harvest Small Business Finance, LLC [Member] - USD ($) $ in Thousands | May 07, 2020 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Aggregate principal amount of the loan | $ 3,320 | |
Loan, maturity period | 2 years | |
Loan, interest rate | 1.00% | |
Loan, payment description | Principal and interest are payable monthly commencing on the first day of the next month after the expiration of the initial six-month deferment period and may be prepaid by the Company at any time prior to maturity without penalty. | |
Debt instrument expected loan forgiveness | $ 2,800 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)Employee | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
2020 Restructuring Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring related expenses | $ 1,051 | $ 1,051 | ||
2019 Restructuring Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Percentage headcount reduction | 6.00% | |||
Additional restructuring cost | $ 43 | |||
2018 Restructuring Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Percentage headcount reduction | 13.00% | |||
Restructuring related expenses | $ 0 | $ 229 | ||
Restructuring and Reduction in Force Plan [Member] | 2020 Restructuring Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Expected reduction of workforce | Employee | 60 |
Shelf Registration Statement _2
Shelf Registration Statement and At-the-Market Offering - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Oct. 29, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Registration Payment Arrangement [Line Items] | ||||
Issuance of common stock (in shares) | 134 | 134 | 570 | |
Proceeds from sales | $ 179 | $ 179 | $ 1,504 | |
Offering costs | $ 9 | $ 9 | $ 203 | |
Weighted average sales price (in dollars per share) | $ 1.41 | $ 1.41 | $ 3 | |
Subsequent Event [Member] | ||||
Registration Payment Arrangement [Line Items] | ||||
Issuance of common stock (in shares) | 1,900 | |||
Proceeds from sales | $ 5,994 | |||
Offering costs | $ 260 | |||
Weighted average sales price (in dollars per share) | $ 3.30 | |||
Maximum [Member] | ||||
Registration Payment Arrangement [Line Items] | ||||
Aggregate offering price | $ 50,000 | $ 50,000 | ||
Compensation percentage | 5.00% | |||
Common stock aggregate offering price available for issuance | 10,959 | $ 10,959 | ||
JMP Securities [Member] | Maximum [Member] | ||||
Registration Payment Arrangement [Line Items] | ||||
Aggregate offering price | $ 13,000 | $ 13,000 |
Equity Award Plans - Additional
Equity Award Plans - Additional Information (Details) - shares shares in Thousands | Jan. 01, 2020 | Feb. 28, 2013 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
2013 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock shares reserved for issuance (in shares) | 643 | 1,077 | 1,077 | |||
Percentage of increase in outstanding common shares | 5.00% | |||||
Increase in shares available for issuance (in shares) | 341 | |||||
2013 Employee Stock Purchase Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock shares reserved for issuance (in shares) | 143 | 195 | 195 | |||
Increase in shares available for issuance (in shares) | 68 | |||||
Percentage of lesser of fair market value of common stock | 85.00% | |||||
Percentage of increase in outstanding shares | 1.00% | |||||
Stock issued during period (in shares) | 0 | 0 | 11 | 42 | ||
2013 Employee Stock Purchase Plan [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Increase in shares available for issuance, authorized (in shares) | 100 |
Equity Award Plans - Summary of
Equity Award Plans - Summary of Stock Options Activity (Details) - 2006 and 2013 Plan [Member] - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Balance at beginning of period | 432 | 500 |
Options forfeited and cancelled | (68) | |
Options exercisable | 387 | |
Options vested | 387 | |
Options vested and expected to vest | 425 | |
Weighted Average Exercise Price Per Share | ||
Balance at beginning of period | $ 24.75 | $ 23.38 |
Options forfeited and cancelled | 14.70 | |
Options exercisable | 27.16 | |
Options vested | 27.16 | |
Options vested and expected to vest | $ 25.09 | |
Weighted Average Remaining Contractual Term (in Years) | ||
Options outstanding | 5 years 5 months 8 days | 5 years 9 months 7 days |
Options exercisable | 5 years 25 days | |
Options vested | 5 years 25 days | |
Options vested and expected to vest | 5 years 4 months 20 days | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 0 | $ 0 |
Equity Award Plans - Summary _2
Equity Award Plans - Summary of RSUs Granted and Unvested (Details) - 2013 Plan [Member] - RSUs [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Shares | |
Granted and unvested at December 31, 2019 | shares | 1,104 |
RSUs granted | shares | 477 |
RSUs vested | shares | (160) |
RSUs cancelled and withheld to cover taxes | shares | (426) |
Granted and unvested at September 30, 2020 | shares | 995 |
Weighted Average Grant Date Fair Value Per Unit | |
Granted and unvested at December 31, 2019 | $ / shares | $ 4.55 |
RSUs granted | $ / shares | 1.43 |
RSUs vested | $ / shares | 5.39 |
RSUs cancelled and withheld to cover taxes | $ / shares | 4.67 |
Granted and unvested at September 30, 2020 | $ / shares | $ 2.87 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 195 | $ 653 | $ 1,208 | $ 2,100 |
Stock options granted | 0 | 0 | ||
Expected life | 6 months | |||
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options exercised (in shares) | 0 | 0 | 0 | 0 |
Unrecognized compensation cost related to options | $ 96 | $ 96 | ||
Share-based compensation, weighted average recognized period | 1 year 10 months 24 days | |||
RSUs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation, weighted average recognized period | 2 years 2 months 12 days | |||
Unrecognized compensation cost related to RSUs | $ 2,073 | $ 2,073 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 15 Months Ended | |||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Oct. 31, 2016Manufacturer | Dec. 31, 2019USD ($) | [1] | Aug. 31, 2018ft² | |
Leases [Abstract] | ||||||||
Weighted average discount rate, operating lease | 6.40% | 6.40% | ||||||
Weighted average discount rate, finance lease | 5.40% | 5.40% | ||||||
Weighted average remaining lease term, operating lease | 1 year 6 months | 1 year 6 months | ||||||
Weighted average remaining lease term, finance lease | 2 months 12 days | 2 months 12 days | ||||||
Right-of-use assets, operating leases | $ 9,336 | $ 9,336 | $ 7,705 | |||||
Operating leases, rent expense | 1,868 | $ 1,943 | 5,628 | $ 5,869 | ||||
Irrevocable letter of credit | 109 | 109 | ||||||
Number of manufacturers entered into finance lease arrangements | Manufacturer | 2 | |||||||
Finance lease, right-of-use asset | 188 | 188 | ||||||
Depreciation of finance lease assets | 146 | 184 | 478 | 545 | ||||
Finance lease, interest expense | 1 | 13 | 13 | 55 | ||||
Additional area subleased | ft² | 14,380 | |||||||
Sublease income | $ 226 | $ 570 | $ 1,303 | $ 1,711 | ||||
[1] | Derived from the Company’s audited consolidated financial statements as of December 31, 2019. |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Maturities of Operating Lease Liabilities [Abstract] | |||
2020 (remaining three months) | $ 1,872 | ||
2021 | 7,079 | ||
2022 | 1,845 | ||
Total lease payments | 10,796 | ||
Less: Amount representing imputed interest | (493) | ||
Present value of lease liabilities | 10,303 | ||
Less: Current portion of lease liabilities | (6,820) | $ (3,786) | [1] |
Non-current portion of lease liabilities | 3,483 | 5,181 | [1] |
Maturities of Finance Lease Liabilities [Abstract] | |||
2020 (remaining three months) | 57 | ||
2021 | 12 | ||
2022 | 0 | ||
Total lease payments | 69 | ||
Less: Amount representing imputed interest | (1) | ||
Present value of lease liabilities | 68 | ||
Less: Current portion of lease liabilities | (68) | $ (601) | |
Non-current portion of lease liabilities | $ 0 | ||
[1] | Derived from the Company’s audited consolidated financial statements as of December 31, 2019. |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Financing cash flows from finance leases | $ 545 | $ 986 |
Operating cash flows from finance leases | 16 | |
Operating cash flows from operating leases | 5,958 | |
ROU assets obtained in exchange for lease liabilities: | ||
Finance lease liabilities | 0 | |
Operating lease liabilities | $ 6,720 |
Leases - Future Minimum Amounts
Leases - Future Minimum Amounts Due Under Subleases (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
2020 (remaining three months) | $ 268 |
2021 | 1,105 |
2022 | 616 |
Total amounts due under subleases | $ 1,989 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 72 | $ 161 | $ 568 | $ 70 |
Pre-tax loss | (4,144) | (3,434) | (12,092) | (11,952) |
Uncertain tax positions, interest or penalties | $ 0 | $ 0 | $ 0 | $ 0 |
Net Loss Per Share Available _3
Net Loss Per Share Available to Common Stockholders - Schedule of Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Numerator: | |||||
Net loss available to common stockholders | $ (4,072) | $ (3,273) | $ (11,524) | $ (11,882) | $ (12,408) |
Denominator: | |||||
Weighted average number of shares, basic and diluted | 7,017 | 6,631 | 6,916 | 6,262 | |
Net loss per share available to common stockholders | |||||
Basic and diluted net loss per common share available to common stockholders | $ (0.58) | $ (0.49) | $ (1.67) | $ (1.90) |
Net Loss Per Share Available _4
Net Loss Per Share Available to Common Stockholders - Schedule of Potential Shares of Common Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of diluted net loss per share (in shares) | 1,427 | 1,663 | 1,427 | 1,663 |
Options to Purchase Common Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of diluted net loss per share (in shares) | 432 | 550 | 432 | 550 |
Unvested RSUs [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of diluted net loss per share (in shares) | 995 | 1,113 | 995 | 1,113 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reporting segment | 1 |
Number of operating segment | 1 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Oct. 29, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Subsequent Event [Line Items] | ||||
Issuance of common stock (in shares) | 134 | 134 | 570 | |
Proceeds from sales | $ 179 | $ 179 | $ 1,504 | |
Offering costs | $ 9 | $ 9 | $ 203 | |
Weighted average sales price (in dollars per share) | $ 1.41 | $ 1.41 | $ 3 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Issuance of common stock (in shares) | 1,900 | |||
Proceeds from sales | $ 5,994 | |||
Offering costs | $ 260 | |||
Weighted average sales price (in dollars per share) | $ 3.30 |