Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 08, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RDVT | ||
Entity Registrant Name | RED VIOLET, INC. | ||
Entity Central Index Key | 0001720116 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 12,200,077 | ||
Entity Public Float | $ 113.4 | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-38407 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 82-2408531 | ||
Entity Address, Address Line One | 2650 North Military Trail | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Boca Raton | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33431 | ||
City Area Code | 561 | ||
Local Phone Number | 757-4000 | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s Proxy Statement relating to its 2021 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2020 are incorporated herein by reference in Part III of this Annual Report on Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 12,957 | $ 11,776 |
Accounts receivable, net of allowance for doubtful accounts of $38 and $40 as of December 31, 2020 and 2019, respectively | 3,201 | 3,543 |
Prepaid expenses and other current assets | 581 | 722 |
Total current assets | 16,739 | 16,041 |
Property and equipment, net | 558 | 660 |
Intangible assets, net | 27,170 | 24,034 |
Goodwill | 5,227 | 5,227 |
Right-of-use assets | 2,161 | 2,620 |
Other noncurrent assets | 139 | 289 |
Total assets | 51,994 | 48,871 |
Current liabilities: | ||
Accounts payable | 2,075 | 2,138 |
Accrued expenses and other current liabilities | 1,458 | 1,571 |
Current portion of operating lease liabilities | 552 | 491 |
Current portion of long-term loan | 449 | 0 |
Deferred revenue | 504 | 128 |
Total current liabilities | 5,038 | 4,328 |
Noncurrent operating lease liabilities | 1,908 | 2,459 |
Long-term loan | 1,703 | 0 |
Total liabilities | 8,649 | 6,787 |
Shareholders' equity: | ||
Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of December 31, 2020 and 2019 | 0 | 0 |
Common stock—$0.001 par value, 200,000,000 shares authorized, 12,167,327 and 11,657,912 shares issued, 12,167,327 and 11,554,765 shares outstanding, as of December 31, 2020 and 2019 | 13 | 12 |
Treasury stock, at cost, 0 and 103,147 shares as of December 31, 2020 and 2019 | 0 | (1,255) |
Additional paid-in capital | 66,005 | 59,187 |
Accumulated deficit | (22,673) | (15,860) |
Total shareholders' equity | 43,345 | 42,084 |
Total liabilities and shareholders' equity | $ 51,994 | $ 48,871 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 38 | $ 40 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 12,167,327 | 11,657,912 |
Common stock, shares outstanding | 12,167,327 | 11,554,765 |
Treasury Stock, Shares | 0 | 103,147 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 34,586 | $ 30,286 |
Costs and expenses: | ||
Sales and marketing expenses | 8,098 | 7,528 |
General and administrative expenses | 17,827 | 18,824 |
Depreciation and amortization | 4,216 | 2,889 |
Total costs and expenses | 41,417 | 41,498 |
Loss from operations | (6,831) | (11,212) |
Interest income, net | 18 | 136 |
Loss before income taxes | (6,813) | (11,076) |
Net loss | $ (6,813) | $ (11,076) |
Loss per share: | ||
Basic and diluted | $ (0.57) | $ (1.03) |
Weighted average number of shares outstanding: | ||
Basic and diluted | 11,863,413 | 10,762,881 |
Service [Member] | ||
Costs and expenses: | ||
Cost of revenue (exclusive of depreciation and amortization) | $ 11,276 | $ 12,257 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid- in Capital | Accumulated Deficit |
Beginning balance at Dec. 31, 2018 | $ 36,278 | $ 10 | $ 41,052 | $ (4,784) | |
Beginning balances, shares at Dec. 31, 2018 | 10,266,613 | ||||
Vesting of restricted stock units | $ 1 | (1) | |||
Vesting of restricted stock units, Shares | 710,299 | ||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes | (1,255) | $ (1,255) | |||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | (103,147) | ||||
Issuance of common stock upon direct offering to certain investors, net of issuance costs of $55 | 7,436 | $ 1 | 7,435 | ||
Issuance of common stock upon direct offering to certain investors, net of costs, Shares | 681,000 | ||||
Share-based compensation | 10,701 | 10,701 | |||
Net loss | (11,076) | (11,076) | |||
Ending balance at Dec. 31, 2019 | 42,084 | $ 12 | $ (1,255) | 59,187 | (15,860) |
Ending balances, shares at Dec. 31, 2019 | 11,657,912 | (103,147) | |||
Vesting of restricted stock units | $ 1 | (1) | |||
Vesting of restricted stock units, Shares | 734,170 | ||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes | (1,828) | $ (1,828) | |||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | (121,608) | ||||
Retirement of of treasury stock | $ 3,083 | (3,083) | |||
Treasury Stock, Shares, Retired | (224,755) | 224,755 | |||
Share-based compensation | 9,902 | 9,902 | |||
Net loss | (6,813) | (6,813) | |||
Ending balance at Dec. 31, 2020 | $ 43,345 | $ 13 | $ 66,005 | $ (22,673) | |
Ending balances, shares at Dec. 31, 2020 | 12,167,327 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Common Stock | |
Stock issuance cost | $ 55 |
Additional Paid- in Capital | |
Stock issuance cost | $ 55 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (6,813) | $ (11,076) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 4,216 | 2,889 |
Share-based compensation expense | 8,064 | 9,913 |
Write-off of long-lived assets | 337 | 30 |
Provision for bad debts | 406 | 582 |
Noncash lease expenses | 459 | 422 |
Interest expense | 12 | |
Changes in assets and liabilities: | ||
Accounts receivable | (64) | (1,860) |
Prepaid expenses and other current assets | 141 | 212 |
Other noncurrent assets | 63 | 339 |
Accounts payable | (63) | (108) |
Accrued expenses and other current liabilities | (125) | 639 |
Deferred revenue | 376 | 102 |
Operating lease liabilities | (490) | (437) |
Net cash provided by operating activities | 6,519 | 1,647 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (154) | (90) |
Capitalized costs included in intangible assets | (5,508) | (5,912) |
Net cash used in investing activities | (5,662) | (6,002) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of shares, net of issuance costs | 7,436 | |
Proceeds from long-term loan | 2,152 | |
Taxes paid related to net share settlement of vesting of restricted stock units | (1,828) | (1,255) |
Net cash provided by financing activities | 324 | 6,181 |
Net increase in cash and cash equivalents | 1,181 | 1,826 |
Cash and cash equivalents at beginning of period | 11,776 | 9,950 |
Cash and cash equivalents at end of period | 12,957 | 11,776 |
SUPPLEMENTAL DISCLOSURE INFORMATION | ||
Share-based compensation capitalized in intangible assets | $ 1,838 | 788 |
Right-of-use assets obtained in exchange of operating lease liabilities | 3,042 | |
Operating lease liabilities arising from obtaining right-of-use assets | $ 3,387 |
Principal Activities
Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principal Activities | 1. Principal activities Red Violet, Inc. (“we,” “us,” “our,” “red violet,” or the “Company”), a Delaware corporation, building proprietary technologies and applying analytical capabilities to deliver identity intelligence. The Company’s technology powers critical solutions, which empower organizations to operate with confidence. The Company’s solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. These solutions are used for purposes including risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. The Company’s intelligent platform, CORE TM Leveraging cloud-native proprietary technology and applying machine learning and advanced analytical capabilities, the Company provides essential solutions to public and private sector organizations through intuitive, easy-to-use analytical interfaces. With massive data assets consisting of public-record, proprietary and publicly-available data, the Company’s differentiated information and innovative platform and solutions deliver intelligence relating to all things identity – entities, relationships, affiliations, interactions, and events. The Company’s solutions are used today to enable frictionless commerce, to ensure safety, and to reduce fraud and the concomitant expense borne by society The Company has only one operating segment, as defined by ASC 280, “ Segment Reporting |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies (a) Basis of preparation and liquidity The accompanying consolidated financial statements have been prepared by red violet in accordance with accounting principles generally accepted in the United States (“US GAAP”). The Company reported a net loss of $6,813 and $11,076 for the years ended December 31, 2020 and 2019, respectively. Net cash provided by operating activities was $6,519 and $1,647 for the years ended December 31, 2020 and 2019. As of December 31, 2020, the Company had an accumulated deficit of $22,673. As of December 31, 2020, the Company had available cash and cash equivalents of $12,957, an increase of $1,181 from $11,776 as of December 31, 2019. Based on this available cash and cash equivalents, and the projections of growth in revenue and operating results in the coming year, the Company believes that it will have sufficient cash resources to finance its operations and expected capital expenditures for the next twelve months from the date the financials are issued. Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions among the Company and its subsidiaries have been eliminated upon consolidation . (b) Use of estimates The preparation of consolidated financial statements in accordance with US GAAP requires red violet’s management to make estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, useful lives of intangible assets, recoverability of the carrying amount of goodwill and intangible assets, share-based compensation and income tax provision. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. (c) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. The Company’s cash and bank deposits were held in major financial institutions located in the United States, which management believes have high credit ratings. The cash and bank deposits held in the United States, denominated in USD, amounted to $12,957 and $11,776 as of December 31, 2020 and 2019, respectively. Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist principally of cash investments. The Company places its temporary cash instruments with well-known financial institutions within the United States, and, at times, may maintain balances in United States banks in excess of the $250 US Federal Deposit Insurance Corporation insurance limit. The Company monitors the credit ratings of the financial institutions to mitigate this risk. (d) Accounts receivable Accounts receivable are due from customers and are generally unsecured, which consist of amounts earned but not yet collected. None of the Company’s accounts receivable bear interest. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management determines the allowance based on reviews of customer-specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. The amount of the allowance for doubtful accounts was $38 and $40 as of December 31, 2020 and 2019, respectively. (e) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation or amortization. Expenditures for maintenance, repairs, and minor renewals are charged to expense in the period incurred. Betterments and additions are capitalized. Property and equipment are depreciated on the straight-line basis over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured. The estimated useful lives of property and equipment are as follows: Computer and network equipment 5-7 years Furniture, fixtures and office equipment 5 years Leasehold improvements 7 years When items of property and equipment are retired or otherwise disposed of, loss/income is charged or credited for the difference between the net book value and proceeds received thereon. (f) Intangible assets other than goodwill The Company’s intangible assets are initially recorded at the capitalized actual costs incurred, their acquisition cost, or fair value if acquired as part of a business combination, and amortized on a straight-line basis over their respective estimated useful lives, which are the periods over which the assets are expected to contribute directly or indirectly to the future cash flows of the Company. The Company’s intangible assets represent software developed for internal use. Intangible assets have estimated useful lives of 5-10 years. In accordance with ASC 350-40, “Software — Internal use software,” Once the software developed for internal use is ready for its intended use, it is amortized on a straight-line basis over its useful life (g) Goodwill Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. As of December 31, 2020 and 2019, the balance of goodwill of $5,227 was as a result of the acquisition of Interactive Data, LLC (“Interactive Data”), a wholly-owned subsidiary of red violet, effective on October 2, 2014. In accordance with ASC 350, “Intangibles - Goodwill and Other,” The measurement date of the Company’s annual goodwill impairment test is October 1. On October 1, 2020 and 2019, the Company performed qualitative assessments on the reporting unit and, based on this assessment, no events have occurred to indicate that it is more likely than not that the fair value of the reporting unit is less than its carry amount. The Company concluded that goodwill was not impaired as of December 31, 2020 and 2019. For purposes of reviewing impairment and the recoverability of goodwill, the Company must make various assumptions regarding estimated future cash flows and other factors in determining the fair values, including market multiples, discount rates, etc. (h) Impairment of long-lived assets Finite-lived intangible assets are amortized over their respective useful lives and, along with other long-lived assets, are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with ASC 360-10-15, “ Impairment or Disposal of Long-Lived Assets. Asset recoverability is an area involving management judgment, requiring assessment as to whether the carrying value of assets can be supported by the undiscounted future cash flows. In calculating the future cash flows, certain assumptions are required to be made in respect of highly uncertain matters such as revenue growth rates, gross margin percentages and terminal growth rates. The Company concluded there was no impairment as of December 31, 2020 and 2019. (i) Fair value of financial instruments ASC 820, “Fair Value Measurements and Disclosures,” These tiers include: • Level 1 – defined as observable inputs such as quoted prices in active markets; • Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and • Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value of the Company’s cash and cash equivalents, receivables and payables approximate their carrying amount because of the short-term nature of these instruments. In May 2020, the Company received funding under a promissory note dated May 5, 2020 (the “Promissory Note”) evidencing an unsecured non-recourse loan in the principal amount of $2.2 million under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (the “Loan”). The fair value of the Loan approximates its carrying amount as of December 31, 2020 as the interest rate approximates market rates for similar loans. (j) Revenue recognition The Company recognized revenue in accordance with ASC 606, “Revenue from Contracts with Customers” Revenue is generally recognized on (a) a transactional basis determined by the customers’ usage, (b) a monthly fee or (c) a combination of both. Revenue pursuant to transactions determined by the customers’ usage is recognized when the transaction is complete, and either party may terminate the transactional agreement at any time. Revenue pursuant to contracts containing a monthly fee is recognized ratably over the contract period, which is generally 12 month s, and the contract shall automatically renew for additional, successive 12-month terms unless written notice of intent not to renew is provided by one party to the other at least 30 days or 60 days prior to the expiration of the then current term. The Company’s revenue is recorded net of applicable sales taxes billed to customers. Available within Topic 606, the Company has applied the portfolio approach practical expedient in accounting for customer revenue as one collective group, rather than individual contracts. Based on the Company’s historical knowledge of the contracts contained in this portfolio and the similar nature and characteristics of the customers, the Company has concluded the financial statement effects are not materially different than if accounting for revenue on a contract by contract basis. Revenue is recognized over a period of time since the performance obligation is delivered in a series. The Company’s customers simultaneously receive and consume the benefits provided by the Company’s performance as and when provided. Furthermore, the Company has elected the “right to invoice” practical expedient, available within Topic 606, as its measure of progress, since it has a right to payment from a customer in an amount that corresponds directly with the value of its performance completed-to-date. The Company's revenue arrangements do not contain significant financing components. For the years ended December 31, 2020 and 2019, 73% and 65% of total revenue was attributable to customers with pricing contracts, respectively, versus 27% and 35% attributable to transactional customers, respectively. Pricing contracts are generally annual contracts or longer, with auto renewal. If a customer pays consideration before the Company transfers services to the customer, those amounts are classified as deferred revenue. As of December 31, 2020 and 2019, the balance of deferred revenue was $504 and $128, respectively, all of which is expected to be realized in the next 12 months. In relation to the deferred revenue balance as of December 31, 2019, $128 was recognized into revenue during the year ended December 31, 2020. As of December 31, 2020, $1,296 of revenue is expected to be recognized in the future for performance obligations that are unsatisfied or partially unsatisfied, related to pricing contracts that have a term of more than 12 months. $966 of revenue will be recognized in 2021, $305 in 2022, $18 in 2023, and $7 in 2024. The actual timing of recognition may vary due to factors outside of the Company’s control. The Company excludes variable consideration related entirely to wholly unsatisfied performance obligations and contracts and recognizes such variable consideration based upon the right to invoice the customer. Sales commissions are incurred and recorded on an ongoing basis over the term of the customer relationship. These costs are recorded in sales and marketing expenses. In addition, the Company elected the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. (k) Cost of revenue (exclusive of depreciation and amortization) The Company’s cost of revenue primarily includes data acquisition costs and other cost of revenue. Data acquisition costs consist primarily of the costs to acquire data either on a transactional basis or through flat-fee data licensing agreements, including unlimited usage agreements. Data acquisition costs are recognized based on a straight-line amortization method. Other cost of revenue includes expenses related to third-party infrastructure fees. (l) Advertising and promotion costs Advertising and promotion costs are charged to operations as incurred. Advertising and promotion costs, included in sales and marketing expenses amounted to $85 and $108 for the years ended December 31, 2020 and 2019, respectively. (m) Share-based compensation The Company accounts for share-based compensation to employees in accordance with ASC 718, “Compensation—Stock Compensation.” The estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amount will be recorded as a cumulative adjustment in the period estimates are revised. Changes in the Company’s estimates and assumptions may cause us to realize material changes in share-based compensation expense in the future. The Company has issued share-based awards with performance-based vesting criteria. Achievement of the milestones must be probable before the Company begins recording share-based compensation expense. When the performance-based vesting criteria is considered probable, the Company begins to recognize compensation expense at that time. In the period that achievement of the performance-based criteria is deemed probable, US GAAP requires the immediate recognition of all previously unrecognized compensation since the original grant date. As a result, compensation expense recorded in the period that achievement is deemed probable could include a substantial amount of previously unrecorded compensation expense related to the prior periods. For any share-based awards where performance-based vesting criteria is no longer considered probable, previously recognized compensation cost would be reversed. As of December 31, 2020, the Company has deemed the achievement of the performance-based criteria to be probable for all share-based awards with performance-based vesting criteria. The Company applies ASU 2018-07, “ Improvements to Nonemployee Share-Based Payment Accounting Compensation – Stock Compensation Equity-Based Payments to Non-employees (n) Income taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in income in the period that the change in tax rates or laws is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740 clarifies the accounting for uncertain tax positions. This interpretation requires that an entity recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company’s accounting policy is to accrue interest and penalties related to uncertain tax positions, if and when required, as interest expense and a component of other expenses, respectively, in the consolidated statements of operations. (o) Loss per share Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the periods. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and is calculated using the treasury stock method for stock options and unvested shares. Common equivalent shares are excluded from the calculation in the loss periods as their effects would be anti-dilutive. (p) Loan under the CARES Act The Company’s policy is to account for the Loan under the CARES Act (See Note 12) as debt. The Company will continue to record the Loan as debt until either (1) the Loan is partially or entirely forgiven and the Company has been legally released, at which point the amount forgiven will be recorded as gain on extinguishment of debt or (2) the Company pays off the Loan. (q) Contingencies In the ordinary course of business, the Company is subject to loss contingencies that cover a wide range of matters. An estimated loss from a loss contingency such as a legal proceeding or claim is accrued if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In determining whether a loss should be accrued, the Company evaluates, among other factors, the degree of probability and the ability to make a reasonable estimate of the amount of loss. (r) Segment reporting The Company has only one operating segment, as defined by ASC 280, “Segment Reporting.” (s) Significant concentrations and risks Concentration of credit risk Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents, and accounts receivable. As of December 31, 2020 and 2019, all of the Company’s cash and cash equivalents were deposited in financial institutions located in the United States, which management believes are of high credit quality. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The risk with respect to accounts receivable is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. Concentration of customers For the year ended December 31, 2020, no individual customer accounted for more than 10% of the total revenue. For the year ended December 31, 2019, one individual customer accounted for 15% of the total revenue. As of December 31, 2020 and 2019, there was no individual customer that accounted for more than 10% Concentration of suppliers The Company’s products and services depend extensively upon continued access to and receipt of data from external sources, including data received from the major credit bureaus, including the Company’s largest data supplier. The Company’s other data suppliers include strategic partners, as well as various government and public records databases. The Company’s largest data supplier, with whom the Company has expanded its relationship while securing what it believes to be favorable business terms over the years, accounted for 46% of the Company’s total data acquisition costs for the year ended December 31, 2020 compared to 40% for the year ended December 31, 2019. The initial term of the agreement, as amended, with this supplier ends April 30, 2022, and continues thereafter on a month-to-month basis unless and until either party provides the other with a minimum of 30 days’ written notice of termination. During the term of the agreement, either party has the right to terminate the agreement: (i) in the event of the other party’s failure to cure a material breach, and (ii) in the event of the other party’s insolvency. In addition, this supplier may terminate this agreement by providing not less than 150 days’ advance written notice to the Company and the Company may terminate this agreement by providing not less than 24 months’ advance written notice to this supplier. The remaining minimum purchase commitments through the end of the initial term is $5.7 million. If the Company is unable to maintain its relationship with its largest data supplier, its ability to provide products and services could be negatively impacted, as it would need to secure comparable data on similar terms, which would require significant time, expense, and resources, and may in the short-term adversely affect its reputation, business, financial condition and results of operations and, if it is unable to establish a similar relationship with other data suppliers over time, could have a long-term material impact on its business and financial condition. As of December 31, 2020, among data suppliers, two data suppliers accounted for 40% and 16% of the Company’s total accounts payable, respectively. As of December 31, 2019, among data suppliers, one data supplier accounted for 43% of the Company’s total accounts payable. (t) Recently issued accounting standards As an emerging growth company, the Company has left open the opportunity to take advantage of the extended transition period provided to emerging growth companies in Section 13(a) of the Exchange Act, however, it is the Company’s present intention to adopt any applicable new accounting standards timely. In August 2018, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standard Updates (“ASU”) No. 2018-15 (“ASU 2018-15”), “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. It also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. This guidance will be effective for the Company for annual reporting periods beginning after December 15, 2020, on a retrospective or prospective basis and early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures . In December 2019, the FASB issued ASU No. 2019-12 (“ASU 2019-12”), “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 3. Loss per share For the years ended December 31, 2020 and 2019, the basic and diluted loss per share was as follows: Year Ended December 31, (In thousands, except share data) 2020 2019 Numerator: Net loss $ (6,813 ) $ (11,076 ) Denominator: Weighted average shares outstanding - Basic and diluted 11,863,413 10,762,881 Loss per share: Basic and diluted: $ (0.57 ) $ (1.03 ) A total of 1,764,450 unvested restricted stock units (“RSUs”) and 20,667 RSUs that were vested but not delivered have been excluded from the diluted loss per share for the year ended December 31, 2020, and a total of 2,237,827 unvested RSUs and 12,250 RSUs that were vested but not delivered have been excluded from the diluted loss per share calculation for the year ended December 31, 2019, as the impact is anti-dilutive. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 4. Accounts receivable, net Accounts receivable, net consist of the following: (In thousands) December 31, 2020 December 31, 2019 Accounts receivable $ 3,239 $ 3,583 Less: Allowance for doubtful accounts (38 ) (40 ) Total accounts receivable, net $ 3,201 $ 3,543 The movement of allowance for doubtful accounts is shown below: Year Ended December 31, (In thousands) 2020 2019 Beginning balance $ 40 $ 77 Charges to expenses 406 582 Write-offs (408 ) (619 ) Ending balance $ 38 $ 40 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and equipment, net Property and equipment, net consist of the following: (In thousands) December 31, 2020 December 31, 2019 Computer and network equipment $ 705 $ 749 Furniture, fixtures and office equipment 673 708 Leasehold improvements 52 53 Total cost 1,430 1,510 Less: Accumulated depreciation (872 ) (850 ) Property and equipment, net $ 558 $ 660 Depreciation of property and equipment of $226 and $252 was recorded for the years ended December 31, 2020 and 2019, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets, Net | 6. Intangible assets, net Intangible assets other than goodwill consist of the following: December 31, 2020 December 31, 2019 (In thousands) Amortization Period Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Software developed for internal use 5-10 years $ 36,804 $ (9,634 ) $ 27,170 $ 29,690 $ (5,656 ) $ 24,034 The gross amount associated with software developed for internal use represents capitalized costs of internally-developed software, including eligible salaries and staff benefits, share-based compensation, travel expenses incurred by relevant employees, and other relevant costs. Amortization expenses of $3,990 and $2,637 were included in depreciation and amortization expense for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, intangible assets of $2,677, included in the gross amounts of software developed for internal use, have not started amortization, as they are not ready for their intended use. The Company capitalized costs of software developed for internal use of $7,346 and $6,700 during the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, estimated amortization expenses related to the Company’s intangible assets for 2021 through 2025 and thereafter are as follows: (In thousands) Year December 31, 2020 2021 $ 4,673 2022 4,932 2023 5,111 2024 4,472 2025 3,279 2026 and thereafter 4,703 Total $ 27,170 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 7. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: (In thousands) December 31, 2020 December 31, 2019 Accrued payroll and related expenses $ 1,077 $ 877 Accrued data acquisition costs 58 142 Sales tax payable 104 447 Miscellaneous expenses payable 219 105 Total $ 1,458 $ 1,571 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income taxes The Company is subject to federal and state income taxes in the United States. The income taxes on loss before income taxes consisted of the following: Year Ended December 31, (In thousands) 2020 2019 Current Federal and state $ - $ - Deferred Federal (1,903 ) (2,449 ) State (554 ) (359 ) Valuation allowance 2,457 2,808 - - Provision for income tax $ - $ - The Company’s effective income tax benefit differed from the U.S. corporate statutory income tax rate for the years ended December 31, 2020 and 2019. A reconciliation is as follows: Year Ended December 31, (In thousands) 2020 2019 Tax on loss before income taxes $ (1,431 ) 21 % $ (2,326 ) 21 % Effect of state taxes (net of federal tax benefit) (552 ) 8 % (359 ) 3 % Excess tax benefit from share-based compensation (1,227 ) 18 % (672 ) 6 % Nondeductible executive compensation 656 -10 % 669 -6 % Others 97 -1 % (120 ) 1 % Valuation allowance 2,457 -36 % 2,808 -25 % Income tax benefit $ - 0 % $ - 0 % Components of deferred tax assets and liabilities consist of the following: (In thousands) December 31, 2020 December 31, 2019 Deferred tax assets: Net operating loss carryforwards $ 8,994 $ 6,711 Share-based compensation 1,872 1,135 Accounts receivable 10 10 Accrued expenses and other current liabilities 330 114 11,206 7,970 Valuation allowance (7,583 ) (5,126 ) 3,623 2,844 Deferred tax liabilities: Intangible assets 3,491 2,724 Property and equipment 132 120 3,623 2,844 Net deferred income tax $ - $ - As of December 31, 2020, the Company had federal and state net operating loss carryforwards of $36,050 and $26,298, respectively, which begin to expire in 2035, except that $28,506 of federal net operating loss carryforwards incurred from 2018 to 2020 could be carried forward indefinitely. The Company’s net operating losses are not subject to annual Section 382 limitations due to ownership changes that could impact the future realization. The Company uses ASC 740 ordering when determining when excess tax benefits have been realized. ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. On a periodic basis, management evaluates and determines the amount of valuation allowance required and adjusts such valuation allowance accordingly. Primarily due to cumulative pre-tax losses, management determined a valuation allowance of $7,583 and $5,126 was necessary as of December 31, 2020 and 2019, respectively, to reduce the deferred tax assets to the amount that is more likely than not to be realized. The change in the valuation allowance was an increase of $2,457 for the year ended December 31, 2020 and an increase of $2,808 for the year ended December 31, 2019. The increase in the valuation allowance in the years ended December 31, 2020 and 2019 is due to the increase in net operating loss carryforwards. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the Company’s financial statements. The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. All of the Company’s income tax filings since 2017 remain open for tax examinations. The Company does not have any unrecognized tax benefits as of December 31, 2020 and 2019. |
Common Stock and Preferred Stoc
Common Stock and Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Common Stock and Preferred Stock | 9. Common stock and preferred stock Common stock As of December 31, 2020 and 2019, the number of authorized shares of common stock was 200,000,000, with a par value of $0.001 per share, of which, 12,167,327 and 11,657,912 shares of common stock were issued, respectively, which included shares of treasury stock of 0 and 103,147, respectively. During the year ended December 31, 2019, the change in the number of issued shares of common stock was due to the following issuance: • An aggregate of 710,299 shares of common stock were issued as a result of the vesting of RSUs, of which, 103,147 shares of common stock were withheld to pay withholding taxes upon such vesting, which are reflected in treasury stock. • An aggregate of 681,000 shares of common stock, with an issuance price of $11.00 per share, were issued in a registered direct offering to certain investors, pursuant to a securities purchase agreement entered into on August 28, 2019. Net proceeds of $7,436 were received in August 2019. During the year ended December 31, 2020, the change in the number of issued shares of common stock was due to the following factors: • An aggregate of 734,170 shares of common stock issued as a result of the vesting of RSUs, of which, 121,608 shares of common stock were withheld to pay withholding taxes upon such vesting, which were reflected in treasury stock. • In November 2020, 224,755 shares of treasury stock were retired. Treasury stock As of December 31, 2019, the Company held 103,147 shares of treasury stock, with a cost of $1,255. There was no treasury stock as of December 31, 2018. This increase in treasury stock was due to shares withheld to pay withholding taxes upon the vesting of RSUs. There was no treasury stock as of December 31, 2020. The change in treasury stock duing the year ended December 31, 2020 was due to the following factors: • An increase of 121,608 shares in treasury stock, with a cost of $ 1,828 , was due to shares withheld to pay withholding taxes upon the vesting of RSUs. • In November 2020, 224,755 shares of treasury stock were retired. Preferred stock As of December 31, 2020 and 2019, the Company had 10,000,000 shares of preferred stock with par value of $0.001 per share authorized, and there were no shares of preferred stock issued or outstanding. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | 10. Share-based compensation On March 22, 2018, the board of directors of the Company and Cogint, Inc. (“cogint”) (now known as Fluent, Inc.) , in its capacity as sole stockholder of the Company prior to the Company’s spin-off from cogint on March 26, 2018, approved the Red Violet, Inc. 2018 Stock Incentive Plan (the “2018 Plan”), which became effective immediately prior to the Spin-off. A total of 3,000,000 shares of common stock were authorized to be issued under the 2018 Plan. On June 3, 2020, the Company’s stockholders approved an amendment to the 2018 Plan to increase the number of shares of common stock authorized for issuance under the 2018 Plan from 3,000,000 shares to 4,500,000 shares. The primary purpose of the 2018 Plan is to attract, retain, reward and motivate certain individuals by providing them with an opportunity to acquire or increase a proprietary interest in the Company and to incentivize them to expend maximum effort for the growth and success of the Company, so as to strengthen the mutuality of the interests between such individuals and the stockholders of the Company. As of December 31, 2020, there were 1,270,415 shares of common stock available for future issuance under the 2018 Plan. Details of unvested RSUs activity during the years ended December 31, 2019 and 2020 were as follows: Number of units Weighted average grant-date fair value Unvested as of December 31, 2018 2,121,000 $ 7.65 Granted 917,500 $ 10.67 Vested and delivered (607,152 ) $ 7.62 Withheld as treasury stock (103,147 ) $ 7.75 Vested not delivered (12,250 ) $ 6.13 Forfeited (78,124 ) $ 8.26 Unvested as of December 31, 2019 2,237,827 $ 8.88 Granted 283,459 $ 22.30 Vested and delivered (612,561 ) $ 7.78 Withheld as treasury stock (121,608 ) $ 7.72 Vested not delivered (8,417 ) $ 11.25 Forfeited (14,250 ) $ 15.45 Unvested as of December 31, 2020 1,764,450 $ 11.43 The increase in treasury stock (included in “ Withheld as treasury stock” above Included in the details above, there were certain grants of RSUs with both time- and performance-based conditions. Details of such grants of RSUs were as follows: Weighted average Amortization of share-based compensation RSU grants with Number grant-date Year Ended December 31, performance criteria Grant dates of units fair value Vesting period 2020 2019 Criteria One ( 1) 9/5/2018 - 1/16/2019 1,577,500 $ 7.66 3 years $ 3,155 $ 7,724 Criteria Two ( 2) 8/28/2019 - 9/8/2020 277,500 $ 12.27 3-4 years 1,239 442 Criteria Three ( 3) 8/28/2019 - 11/20/2020 455,000 $ 15.44 3 years 3,502 903 2,310,000 $ 7,896 $ 9,069 (1) Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $7.0 million for such fiscal quarter, (ii) positive adjusted EBITDA, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and (iii) the participant continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of June 30, 2019, the Company determined that the performance criteria were met. As of December 31, 2020, the remaining 555,830 shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement. (2) Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $10.0 million for such fiscal quarter, (ii) positive adjusted EBITDA of at least $1.5 million, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and (iii) the recipient continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of the respective grant dates, the Company determined that it was probable that the Criteria Two would be met and therefore, began to record the related amortization expense on the grant dates. (3) Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $12.5 million for such fiscal quarter, (ii) positive adjusted EBITDA of at least $2.0 million, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and the recipient continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the respective performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of the respective grant dates, the Company determined that it was probable that the Criteria Three would be met and therefore, began to record the related amortization expense on the grant dates. As of December 31, 2020, unrecognized share-based compensation expense associated with the granted RSUs amounted to $11,735, which is expected to be recognized over a weighted average period of 2.2 years. Share-based compensation was allocated to the following accounts in the consolidated financial statements for the years ended December 31, 2020 and 2019: Year Ended December 31, (In thousands) 2020 2019 Sales and marketing expenses $ 609 $ 454 General and administrative expenses 7,455 9,459 Share-based compensation expense 8,064 9,913 Capitalized in intangible assets 1,838 788 Total $ 9,902 $ 10,701 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related party transactions Services Agreement On August 7, 2018, the Company entered into a services agreement with Mr. Michael Brauser (the “Consultant”), a greater than 10% stockholder, pursuant to which, the Consultant will be providing recommendations on organizational and capital structure, future financing needs and future acquisitions or strategic transactions (“Services Agreement”), for a term of one year, automatically renewing for additional one-year On February 16, 2021, the Company entered into a Separation Agreement (the "Separation Agreement") with the Consultant. Pursuant to the Separation Agreement, the parties have agreed that the Services Agreement expiring on August 6, 2021 (“Expiration Date”), will not be renewed, but will continue in force and effect until the Expiration Date and that the Consultant will not take any actions on behalf of the Company, including pursuant to the Services Agreement, unless specifically requested in writing by the Company. Pursuant to the Separation Agreement, the Consultant also agreed (i) to certain non-solicitation obligations contained therein, (ii) that he and his affiliates will not disparage or assist or cooperate with any person or entity seeking to publicly disparage or economically harm the Company, and (iii) that the Consultant and his affiliates will not initiate any lawsuit, claim, or proceeding with respect to any claims against the Company, except (with designated exceptions) for any legal proceeding initiated solely to remedy a breach of or to enforce the Separation Agreement. With respect to each annual or special meeting of the Company's stockholders until the Expiration Date of the Separation Agreement, the Consultant has agreed to vote the shares of the Company's common stock or any other securities entitled to vote then held by him or his affiliates in accordance with the board of directors' recommendations on director proposals, provided there is a change in no more than 25% of the current directors (not including changes resulting from a director's death or resignation), and the ratification of the appointment of the Company’s independent registered public accounting firm. The Company agreed (i) that the remaining unvested 166,666 RSUs previously granted to Consultant in accordance with the 2018 RSU Agreement will continue to vest on July 1, 2021, in accordance with and subject to all other provisions and conditions of such grant, (ii) to amend the 2020 RSU Agreement, previously granting Consultant 30,000 Restricted Stock Units such that the 30,000 Restricted Stock Units will continue to vest 33-1/3% on November 1, 2021, 66-2/3% on November 1, 2022, and 100% on November 1, 2023, without certain Company performance criteria, subject to all other provisions and conditions of such grant, (iii) to include shares of the Company's common stock held by the Consultant or his affiliates in any registration statement the Company files for the benefit of selling stockholders at any time when the Consultant or his affiliates beneficially own 10% or more of the Company's common stock, and (iv) to not initiate any lawsuit, claim, or proceeding with respect to any claims against the Consultant and his affiliates, except (with designated exceptions) for any legal proceeding initiated solely to remedy a breach of or to enforce the Separation Agreement. As a result of the modification to the 2020 RSU Agreement, beginning February 16, 2021, the Company expects to recognize an estimated $0.7 million in share-based compensation expense over the remaining service period which ends on the Expiration Date. |
Long-term loan
Long-term loan | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term loan | 12. Long-term loan On May 5, 2020, the Company received funding under the Promissory Note dated May 5, 2020 evidencing the Loan, an unsecured non-recourse loan in the principal amount of $2,152 under the CARES Act. The Loan to the Company was made through Legacy Bank of Florida (the “Lender”). Long-term loan as of December 31, 2020 consists of the following: (In thousands) December 31, 2020 Principal amount $ 2,152 Included in consolidated balance sheet: Current portion of long-term loan $ 449 Long-term loan (non-current) 1,703 $ 2,152 The Loan has a two-year The Loan may be forgiven partially or fully if the Loan proceeds are used for covered payroll, rent and utility costs incurred during the 24-week period that commenced on the date of funding (the “Covered Period”), and if at least 60% of the proceeds are used for covered payroll costs. Any forgiveness of the Loan will be subject to approval by the SBA and the Lender. The Company applied for forgiveness of the Loan in November 2020. Because the Loan exceeds $2,000, the Company anticipates the U.S. Department of Treasury will audit the loan. Although the Company used the proceeds of the Loan for such covered purposes and applied for forgiveness as required, it can provide no assurance that the Company will obtain forgiveness of the Loan in whole or in part. The fair value of the Loan approximates its carrying amount as of December 31, 2020 as the interest rate approximates market rates for similar loans. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 13. Leases On January 1, 2019, the Company adopted Leases (Topic 842) using the modified retrospective method applied to all leases existing at the date of initial application. The Company elected the practical expedients to not reassess whether any existing contracts are or contain leases, not reassess the lease classification for any existing leases, and not reassess initial direct costs for any existing leases, upon the adoption of Leases (Topic 842). The Company leases its corporate headquarters of 21,020 rentable square feet in accordance with a non-cancelable 89-month operating lease agreement as amended and effective in January 2017. The Company also leases an additional office space of 6,003 rentable square feet in accordance with a non-cancellable 90-month operating lease agreement entered into in April 2017, with an option to extend for additional 60 months. The extension option is not included in the determination of the lease term as it is not reasonably certain to be exercised. For the years ended December 31, 2020 and 2019, a summary of the Company’s lease information is shown below: Year Ended December 31, (In thousands) 2020 2019 Lease cost: Operating lease costs $ 672 $ 672 Other information: Cash paid for operating leases $ 704 $ 687 Right-of-use assets obtained in exchange for operating lease liabilities $ - $ 3,042 Weighted average discount rate for operating leases ( 1) - 8 % (1) The Company used 8.0%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the leases to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of January 1, 2019, the application date. As of December 31, 2020, the weighted average remaining operating lease term was 3.8 years. As of December 31, 2020, scheduled future maturities and present value of the operating lease liabilities are as follows: (In thousands) Year December 31, 2020 2021 $ 724 2022 743 2023 765 2024 542 2025 77 Total maturities $ 2,851 Present value included in consolidated balance sheet: Current portion of operating lease liabilities $ 552 Noncurrent operating lease liabilities 1,908 Total operating lease liabilities $ 2,460 Difference between the maturities and the present value of operating lease liabilities $ 391 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and contingencies (a) Capital commitment The Company incurred data costs of $8,493 and $7,507 for the years ended December 31, 2020 and 2019, respectively, under certain data licensing agreements. As of December 31, 2020, future material capital commitments under certain data licensing agreements were $10,888, shown as follows: (In thousands) Year December 31, 2020 2021 $ 7,495 2022 2,492 2023 423 2024 217 2025 224 2026 and thereafter 37 Total $ 10,888 (b) Employment agreements The Company has employment agreements with certain executives, mainly including its Chief Executive Officer, President, Chief Financial Officer and Chief Information Officer, which provide for compensation and certain other benefits and for severance payments under certain circumstances. (c) Contingency The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and it discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements to not be misleading. To estimate whether a loss contingency should be accrued by a charge to income, the Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of the loss. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated. The Company may be involved in litigation from time to time in the ordinary course of business. The Company does not believe that the ultimate resolution of any such matters will have a material adverse effect on its business, financial condition, results of operations or cash flows. However, the results of such matters cannot be predicted with certainty and the Company cannot assure you that the ultimate resolution of any legal or administrative proceeding or dispute will not have a material adverse effect on its business, financial condition, results of operations and cash flows. (d ) Covid-19 update In December 2019, a novel strain of coronavirus, known as Covid-19, was reported in Wuhan, China and has since extensively impacted the global health and economic environment. In March 2020, the World Health Organization characterized Covid-19 as a pandemic. The Company has taken numerous steps, and will continue to take further actions as appropriate, to minimize the impact of the Covid-19 pandemic on the Company’s business, results of operations and financial performance. To ensure the health and well-being of its employees, beginning in March 2020, the Company instructed employees at its offices to work from home on a temporary basis. Starting in the second quarter of 2020, the Company implemented cost containment strategies across all areas of the organization, including continued curtailment of Company travel and partnering with suppliers, landlords and vendors for price concessions and payment deferrals during this interim period. As a result of preventative and protective actions taken by federal, state and local governments, including the implementation of stay-at-home orders and social distancing policies that resulted in significantly reduced commercial activity, and certain temporary government-imposed moratoria on collection customers’ activities, the Company experienced reduced transaction volume in the second and third quarters of 2020. Transaction volume returned to pre-Covid levels by the end of the third quarter 2020, except for collection customer volume. Collection customer transaction volume remained below pre-Covid levels during the fourth quarter of 2020, down $0.9 million, primarily attributable to the Company’s idiVERIFIED service, which is an ancillary collections market offering that is purely transactional and of a lower margin profile, for the three months ended December 31, 2020, compared to the three months ended March 31, 2020. The Company expects collection customer transaction volume, including that of its idiVERIFIED service, to return to pre-Covid levels in the second half of 2021. Beginning the second quarter of 2020, the Company took a proactive customer-centric approach working with customers who were impacted by Covid-19. Customers who had minimum contractual commitments and requested concessions because they were temporarily unable to meet their minimum contractual commitments as a result of Covid-19 were granted reductions, or eliminations where applicable, of minimums on a month-to-month basis. The end date of the customer’s agreement was extended by one month for each month of the temporary concession. During the second quarter of 2020, the Company provided concessions to a total of 152 customers, representing a $342 reduction in minimum committed spend. During the third quarter of 2020, the Company provided concessions to a total of 22 customers, representing a $94 reduction in minimum committed spend. During the fourth quarter of 2020, the Company provided concessions to a total of 7 customers, representing a $32 reduction in minimum committed spend. The Company continues to take precautionary measures intended to minimize the risk of the Covid-19 pandemic to its employees, its customers, and the communities in which it operates. These measures may result in inefficiencies, delays and additional costs to the Company’s business. The Covid-19 pandemic and its impact on the Company and the economy has significantly limited the Company’s ability to forecast its future operating results, including its ability to predict revenue and expense levels, and plan for and model future operating results. The Company will continue to evaluate the nature and extent of the impact of the COVID-19 pandemic to its business. To further support the Company’s liquidity, beginning April 1, 2020, the Company elected, under Section 2302 of the CARES Act, to defer payment of the employer portion of Social Security payroll tax. Under the CARES Act, employers can forgo timely payment of the employer portion of Social Security taxes that would otherwise be due from March 27, 2020 through December 31, 2020, without penalty or interest charges. Employers must pay 50% of the deferred amount by December 31, 2021, and the remainder by December 31, 2022. On May 5, 2020, the Company received the Loan under the CARES Act as discussed in Note 12 above. The Company will continue to assess the CARES Act and other applicable government legislation aimed at assisting businesses during the Covid-19 pandemic. In accordance with best practices and guidance from the Centers for Disease Control and Prevention, the Company implemented protective safeguards, including daily temperature checks, mandatory wearing of masks, social distancing, plexiglass protective barriers, and an entire office HVAC UV-C system. The Company began its first phase of employees returning to the Boca Raton, Florida office in June 2020. The Company will continue to assess the need and timing of additional employees returning to the office. Given the dynamic nature of this health emergency, the full impact of the Covid-19 pandemic on the Company’s ongoing business, results of operations and overall financial performance cannot be reasonably estimated at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Liquidity | (a) Basis of preparation and liquidity The accompanying consolidated financial statements have been prepared by red violet in accordance with accounting principles generally accepted in the United States (“US GAAP”). The Company reported a net loss of $6,813 and $11,076 for the years ended December 31, 2020 and 2019, respectively. Net cash provided by operating activities was $6,519 and $1,647 for the years ended December 31, 2020 and 2019. As of December 31, 2020, the Company had an accumulated deficit of $22,673. As of December 31, 2020, the Company had available cash and cash equivalents of $12,957, an increase of $1,181 from $11,776 as of December 31, 2019. Based on this available cash and cash equivalents, and the projections of growth in revenue and operating results in the coming year, the Company believes that it will have sufficient cash resources to finance its operations and expected capital expenditures for the next twelve months from the date the financials are issued. Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions among the Company and its subsidiaries have been eliminated upon consolidation . |
Use of Estimates | (b) Use of estimates The preparation of consolidated financial statements in accordance with US GAAP requires red violet’s management to make estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, useful lives of intangible assets, recoverability of the carrying amount of goodwill and intangible assets, share-based compensation and income tax provision. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. |
Cash and Cash Equivalents | (c) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. The Company’s cash and bank deposits were held in major financial institutions located in the United States, which management believes have high credit ratings. The cash and bank deposits held in the United States, denominated in USD, amounted to $12,957 and $11,776 as of December 31, 2020 and 2019, respectively. Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist principally of cash investments. The Company places its temporary cash instruments with well-known financial institutions within the United States, and, at times, may maintain balances in United States banks in excess of the $250 US Federal Deposit Insurance Corporation insurance limit. The Company monitors the credit ratings of the financial institutions to mitigate this risk. |
Accounts Receivable | (d) Accounts receivable Accounts receivable are due from customers and are generally unsecured, which consist of amounts earned but not yet collected. None of the Company’s accounts receivable bear interest. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management determines the allowance based on reviews of customer-specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. The amount of the allowance for doubtful accounts was $38 and $40 as of December 31, 2020 and 2019, respectively. |
Property and Equipment | (e) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation or amortization. Expenditures for maintenance, repairs, and minor renewals are charged to expense in the period incurred. Betterments and additions are capitalized. Property and equipment are depreciated on the straight-line basis over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured. The estimated useful lives of property and equipment are as follows: Computer and network equipment 5-7 years Furniture, fixtures and office equipment 5 years Leasehold improvements 7 years When items of property and equipment are retired or otherwise disposed of, loss/income is charged or credited for the difference between the net book value and proceeds received thereon. |
Intangible Assets Other Than Goodwill | (f) Intangible assets other than goodwill The Company’s intangible assets are initially recorded at the capitalized actual costs incurred, their acquisition cost, or fair value if acquired as part of a business combination, and amortized on a straight-line basis over their respective estimated useful lives, which are the periods over which the assets are expected to contribute directly or indirectly to the future cash flows of the Company. The Company’s intangible assets represent software developed for internal use. Intangible assets have estimated useful lives of 5-10 years. In accordance with ASC 350-40, “Software — Internal use software,” Once the software developed for internal use is ready for its intended use, it is amortized on a straight-line basis over its useful life |
Goodwill | (g) Goodwill Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. As of December 31, 2020 and 2019, the balance of goodwill of $5,227 was as a result of the acquisition of Interactive Data, LLC (“Interactive Data”), a wholly-owned subsidiary of red violet, effective on October 2, 2014. In accordance with ASC 350, “Intangibles - Goodwill and Other,” The measurement date of the Company’s annual goodwill impairment test is October 1. On October 1, 2020 and 2019, the Company performed qualitative assessments on the reporting unit and, based on this assessment, no events have occurred to indicate that it is more likely than not that the fair value of the reporting unit is less than its carry amount. The Company concluded that goodwill was not impaired as of December 31, 2020 and 2019. For purposes of reviewing impairment and the recoverability of goodwill, the Company must make various assumptions regarding estimated future cash flows and other factors in determining the fair values, including market multiples, discount rates, etc. |
Impairment of Long-lived Assets | (h) Impairment of long-lived assets Finite-lived intangible assets are amortized over their respective useful lives and, along with other long-lived assets, are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with ASC 360-10-15, “ Impairment or Disposal of Long-Lived Assets. Asset recoverability is an area involving management judgment, requiring assessment as to whether the carrying value of assets can be supported by the undiscounted future cash flows. In calculating the future cash flows, certain assumptions are required to be made in respect of highly uncertain matters such as revenue growth rates, gross margin percentages and terminal growth rates. The Company concluded there was no impairment as of December 31, 2020 and 2019. |
Fair Value of Financial Instruments | (i) Fair value of financial instruments ASC 820, “Fair Value Measurements and Disclosures,” These tiers include: • Level 1 – defined as observable inputs such as quoted prices in active markets; • Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and • Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value of the Company’s cash and cash equivalents, receivables and payables approximate their carrying amount because of the short-term nature of these instruments. In May 2020, the Company received funding under a promissory note dated May 5, 2020 (the “Promissory Note”) evidencing an unsecured non-recourse loan in the principal amount of $2.2 million under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (the “Loan”). The fair value of the Loan approximates its carrying amount as of December 31, 2020 as the interest rate approximates market rates for similar loans. |
Revenue Recognition | (j) Revenue recognition The Company recognized revenue in accordance with ASC 606, “Revenue from Contracts with Customers” Revenue is generally recognized on (a) a transactional basis determined by the customers’ usage, (b) a monthly fee or (c) a combination of both. Revenue pursuant to transactions determined by the customers’ usage is recognized when the transaction is complete, and either party may terminate the transactional agreement at any time. Revenue pursuant to contracts containing a monthly fee is recognized ratably over the contract period, which is generally 12 month s, and the contract shall automatically renew for additional, successive 12-month terms unless written notice of intent not to renew is provided by one party to the other at least 30 days or 60 days prior to the expiration of the then current term. The Company’s revenue is recorded net of applicable sales taxes billed to customers. Available within Topic 606, the Company has applied the portfolio approach practical expedient in accounting for customer revenue as one collective group, rather than individual contracts. Based on the Company’s historical knowledge of the contracts contained in this portfolio and the similar nature and characteristics of the customers, the Company has concluded the financial statement effects are not materially different than if accounting for revenue on a contract by contract basis. Revenue is recognized over a period of time since the performance obligation is delivered in a series. The Company’s customers simultaneously receive and consume the benefits provided by the Company’s performance as and when provided. Furthermore, the Company has elected the “right to invoice” practical expedient, available within Topic 606, as its measure of progress, since it has a right to payment from a customer in an amount that corresponds directly with the value of its performance completed-to-date. The Company's revenue arrangements do not contain significant financing components. For the years ended December 31, 2020 and 2019, 73% and 65% of total revenue was attributable to customers with pricing contracts, respectively, versus 27% and 35% attributable to transactional customers, respectively. Pricing contracts are generally annual contracts or longer, with auto renewal. If a customer pays consideration before the Company transfers services to the customer, those amounts are classified as deferred revenue. As of December 31, 2020 and 2019, the balance of deferred revenue was $504 and $128, respectively, all of which is expected to be realized in the next 12 months. In relation to the deferred revenue balance as of December 31, 2019, $128 was recognized into revenue during the year ended December 31, 2020. As of December 31, 2020, $1,296 of revenue is expected to be recognized in the future for performance obligations that are unsatisfied or partially unsatisfied, related to pricing contracts that have a term of more than 12 months. $966 of revenue will be recognized in 2021, $305 in 2022, $18 in 2023, and $7 in 2024. The actual timing of recognition may vary due to factors outside of the Company’s control. The Company excludes variable consideration related entirely to wholly unsatisfied performance obligations and contracts and recognizes such variable consideration based upon the right to invoice the customer. Sales commissions are incurred and recorded on an ongoing basis over the term of the customer relationship. These costs are recorded in sales and marketing expenses. In addition, the Company elected the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. |
Cost of Revenue (Exclusive of Depreciation and Amortization) | (k) Cost of revenue (exclusive of depreciation and amortization) The Company’s cost of revenue primarily includes data acquisition costs and other cost of revenue. Data acquisition costs consist primarily of the costs to acquire data either on a transactional basis or through flat-fee data licensing agreements, including unlimited usage agreements. Data acquisition costs are recognized based on a straight-line amortization method. Other cost of revenue includes expenses related to third-party infrastructure fees. |
Advertising and Promotion Costs | (l) Advertising and promotion costs Advertising and promotion costs are charged to operations as incurred. Advertising and promotion costs, included in sales and marketing expenses amounted to $85 and $108 for the years ended December 31, 2020 and 2019, respectively. |
Share-based Compensation | (m) Share-based compensation The Company accounts for share-based compensation to employees in accordance with ASC 718, “Compensation—Stock Compensation.” The estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, such amount will be recorded as a cumulative adjustment in the period estimates are revised. Changes in the Company’s estimates and assumptions may cause us to realize material changes in share-based compensation expense in the future. The Company has issued share-based awards with performance-based vesting criteria. Achievement of the milestones must be probable before the Company begins recording share-based compensation expense. When the performance-based vesting criteria is considered probable, the Company begins to recognize compensation expense at that time. In the period that achievement of the performance-based criteria is deemed probable, US GAAP requires the immediate recognition of all previously unrecognized compensation since the original grant date. As a result, compensation expense recorded in the period that achievement is deemed probable could include a substantial amount of previously unrecorded compensation expense related to the prior periods. For any share-based awards where performance-based vesting criteria is no longer considered probable, previously recognized compensation cost would be reversed. As of December 31, 2020, the Company has deemed the achievement of the performance-based criteria to be probable for all share-based awards with performance-based vesting criteria. The Company applies ASU 2018-07, “ Improvements to Nonemployee Share-Based Payment Accounting Compensation – Stock Compensation Equity-Based Payments to Non-employees |
Income Taxes | (n) Income taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in income in the period that the change in tax rates or laws is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740 clarifies the accounting for uncertain tax positions. This interpretation requires that an entity recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company’s accounting policy is to accrue interest and penalties related to uncertain tax positions, if and when required, as interest expense and a component of other expenses, respectively, in the consolidated statements of operations. |
Loss Per Share | (o) Loss per share Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the periods. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and is calculated using the treasury stock method for stock options and unvested shares. Common equivalent shares are excluded from the calculation in the loss periods as their effects would be anti-dilutive. |
Loan Under The CARES Act | (p) Loan under the CARES Act The Company’s policy is to account for the Loan under the CARES Act (See Note 12) as debt. The Company will continue to record the Loan as debt until either (1) the Loan is partially or entirely forgiven and the Company has been legally released, at which point the amount forgiven will be recorded as gain on extinguishment of debt or (2) the Company pays off the Loan. |
Contingencies | (q) Contingencies In the ordinary course of business, the Company is subject to loss contingencies that cover a wide range of matters. An estimated loss from a loss contingency such as a legal proceeding or claim is accrued if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In determining whether a loss should be accrued, the Company evaluates, among other factors, the degree of probability and the ability to make a reasonable estimate of the amount of loss. |
Segment Reporting | (r) Segment reporting The Company has only one operating segment, as defined by ASC 280, “Segment Reporting.” |
Significant Concentrations and Risks | (s) Significant concentrations and risks Concentration of credit risk Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents, and accounts receivable. As of December 31, 2020 and 2019, all of the Company’s cash and cash equivalents were deposited in financial institutions located in the United States, which management believes are of high credit quality. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The risk with respect to accounts receivable is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. Concentration of customers For the year ended December 31, 2020, no individual customer accounted for more than 10% of the total revenue. For the year ended December 31, 2019, one individual customer accounted for 15% of the total revenue. As of December 31, 2020 and 2019, there was no individual customer that accounted for more than 10% Concentration of suppliers The Company’s products and services depend extensively upon continued access to and receipt of data from external sources, including data received from the major credit bureaus, including the Company’s largest data supplier. The Company’s other data suppliers include strategic partners, as well as various government and public records databases. The Company’s largest data supplier, with whom the Company has expanded its relationship while securing what it believes to be favorable business terms over the years, accounted for 46% of the Company’s total data acquisition costs for the year ended December 31, 2020 compared to 40% for the year ended December 31, 2019. The initial term of the agreement, as amended, with this supplier ends April 30, 2022, and continues thereafter on a month-to-month basis unless and until either party provides the other with a minimum of 30 days’ written notice of termination. During the term of the agreement, either party has the right to terminate the agreement: (i) in the event of the other party’s failure to cure a material breach, and (ii) in the event of the other party’s insolvency. In addition, this supplier may terminate this agreement by providing not less than 150 days’ advance written notice to the Company and the Company may terminate this agreement by providing not less than 24 months’ advance written notice to this supplier. The remaining minimum purchase commitments through the end of the initial term is $5.7 million. If the Company is unable to maintain its relationship with its largest data supplier, its ability to provide products and services could be negatively impacted, as it would need to secure comparable data on similar terms, which would require significant time, expense, and resources, and may in the short-term adversely affect its reputation, business, financial condition and results of operations and, if it is unable to establish a similar relationship with other data suppliers over time, could have a long-term material impact on its business and financial condition. As of December 31, 2020, among data suppliers, two data suppliers accounted for 40% and 16% of the Company’s total accounts payable, respectively. As of December 31, 2019, among data suppliers, one data supplier accounted for 43% of the Company’s total accounts payable. |
Recently Issued Accounting Standards | (t) Recently issued accounting standards As an emerging growth company, the Company has left open the opportunity to take advantage of the extended transition period provided to emerging growth companies in Section 13(a) of the Exchange Act, however, it is the Company’s present intention to adopt any applicable new accounting standards timely. In August 2018, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standard Updates (“ASU”) No. 2018-15 (“ASU 2018-15”), “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. It also requires the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. This guidance will be effective for the Company for annual reporting periods beginning after December 15, 2020, on a retrospective or prospective basis and early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures . In December 2019, the FASB issued ASU No. 2019-12 (“ASU 2019-12”), “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows: Computer and network equipment 5-7 years Furniture, fixtures and office equipment 5 years Leasehold improvements 7 years |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss Per Share | For the years ended December 31, 2020 and 2019, the basic and diluted loss per share was as follows: Year Ended December 31, (In thousands, except share data) 2020 2019 Numerator: Net loss $ (6,813 ) $ (11,076 ) Denominator: Weighted average shares outstanding - Basic and diluted 11,863,413 10,762,881 Loss per share: Basic and diluted: $ (0.57 ) $ (1.03 ) |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, Net | Accounts receivable, net consist of the following: (In thousands) December 31, 2020 December 31, 2019 Accounts receivable $ 3,239 $ 3,583 Less: Allowance for doubtful accounts (38 ) (40 ) Total accounts receivable, net $ 3,201 $ 3,543 |
Summary of Movement of Allowance for Doubtful Accounts | The movement of allowance for doubtful accounts is shown below: Year Ended December 31, (In thousands) 2020 2019 Beginning balance $ 40 $ 77 Charges to expenses 406 582 Write-offs (408 ) (619 ) Ending balance $ 38 $ 40 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consist of the following: (In thousands) December 31, 2020 December 31, 2019 Computer and network equipment $ 705 $ 749 Furniture, fixtures and office equipment 673 708 Leasehold improvements 52 53 Total cost 1,430 1,510 Less: Accumulated depreciation (872 ) (850 ) Property and equipment, net $ 558 $ 660 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets Other than Goodwill | Intangible assets other than goodwill consist of the following: December 31, 2020 December 31, 2019 (In thousands) Amortization Period Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Software developed for internal use 5-10 years $ 36,804 $ (9,634 ) $ 27,170 $ 29,690 $ (5,656 ) $ 24,034 |
Schedule of Estimated Amortization Expenses | As of December 31, 2020, estimated amortization expenses related to the Company’s intangible assets for 2021 through 2025 and thereafter are as follows: (In thousands) Year December 31, 2020 2021 $ 4,673 2022 4,932 2023 5,111 2024 4,472 2025 3,279 2026 and thereafter 4,703 Total $ 27,170 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: (In thousands) December 31, 2020 December 31, 2019 Accrued payroll and related expenses $ 1,077 $ 877 Accrued data acquisition costs 58 142 Sales tax payable 104 447 Miscellaneous expenses payable 219 105 Total $ 1,458 $ 1,571 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Benefit for Income Taxes | The Company is subject to federal and state income taxes in the United States. The income taxes on loss before income taxes consisted of the following: Year Ended December 31, (In thousands) 2020 2019 Current Federal and state $ - $ - Deferred Federal (1,903 ) (2,449 ) State (554 ) (359 ) Valuation allowance 2,457 2,808 - - Provision for income tax $ - $ - |
Reconciliation of Effective Income Tax Benefit | The Company’s effective income tax benefit differed from the U.S. corporate statutory income tax rate for the years ended December 31, 2020 and 2019. A reconciliation is as follows: Year Ended December 31, (In thousands) 2020 2019 Tax on loss before income taxes $ (1,431 ) 21 % $ (2,326 ) 21 % Effect of state taxes (net of federal tax benefit) (552 ) 8 % (359 ) 3 % Excess tax benefit from share-based compensation (1,227 ) 18 % (672 ) 6 % Nondeductible executive compensation 656 -10 % 669 -6 % Others 97 -1 % (120 ) 1 % Valuation allowance 2,457 -36 % 2,808 -25 % Income tax benefit $ - 0 % $ - 0 % |
Schedule of Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities consist of the following: (In thousands) December 31, 2020 December 31, 2019 Deferred tax assets: Net operating loss carryforwards $ 8,994 $ 6,711 Share-based compensation 1,872 1,135 Accounts receivable 10 10 Accrued expenses and other current liabilities 330 114 11,206 7,970 Valuation allowance (7,583 ) (5,126 ) 3,623 2,844 Deferred tax liabilities: Intangible assets 3,491 2,724 Property and equipment 132 120 3,623 2,844 Net deferred income tax $ - $ - |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Unvested Restricted Stock Units | Details of unvested RSUs activity during the years ended December 31, 2019 and 2020 were as follows: Number of units Weighted average grant-date fair value Unvested as of December 31, 2018 2,121,000 $ 7.65 Granted 917,500 $ 10.67 Vested and delivered (607,152 ) $ 7.62 Withheld as treasury stock (103,147 ) $ 7.75 Vested not delivered (12,250 ) $ 6.13 Forfeited (78,124 ) $ 8.26 Unvested as of December 31, 2019 2,237,827 $ 8.88 Granted 283,459 $ 22.30 Vested and delivered (612,561 ) $ 7.78 Withheld as treasury stock (121,608 ) $ 7.72 Vested not delivered (8,417 ) $ 11.25 Forfeited (14,250 ) $ 15.45 Unvested as of December 31, 2020 1,764,450 $ 11.43 |
Schedule of Restricted Stock Units Granted | Details of such grants of RSUs were as follows: Weighted average Amortization of share-based compensation RSU grants with Number grant-date Year Ended December 31, performance criteria Grant dates of units fair value Vesting period 2020 2019 Criteria One ( 1) 9/5/2018 - 1/16/2019 1,577,500 $ 7.66 3 years $ 3,155 $ 7,724 Criteria Two ( 2) 8/28/2019 - 9/8/2020 277,500 $ 12.27 3-4 years 1,239 442 Criteria Three ( 3) 8/28/2019 - 11/20/2020 455,000 $ 15.44 3 years 3,502 903 2,310,000 $ 7,896 $ 9,069 (1) Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $7.0 million for such fiscal quarter, (ii) positive adjusted EBITDA, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and (iii) the participant continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of June 30, 2019, the Company determined that the performance criteria were met. As of December 31, 2020, the remaining 555,830 shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement. (2) Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $10.0 million for such fiscal quarter, (ii) positive adjusted EBITDA of at least $1.5 million, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and (iii) the recipient continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of the respective grant dates, the Company determined that it was probable that the Criteria Two would be met and therefore, began to record the related amortization expense on the grant dates. (3) Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $12.5 million for such fiscal quarter, (ii) positive adjusted EBITDA of at least $2.0 million, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and the recipient continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the respective performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of the respective grant dates, the Company determined that it was probable that the Criteria Three would be met and therefore, began to record the related amortization expense on the grant dates. |
Summary of Allocated Share-based Compensation | Share-based compensation was allocated to the following accounts in the consolidated financial statements for the years ended December 31, 2020 and 2019: Year Ended December 31, (In thousands) 2020 2019 Sales and marketing expenses $ 609 $ 454 General and administrative expenses 7,455 9,459 Share-based compensation expense 8,064 9,913 Capitalized in intangible assets 1,838 788 Total $ 9,902 $ 10,701 |
Long-term loan (Tables)
Long-term loan (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term loan | Long-term loan as of December 31, 2020 consists of the following: (In thousands) December 31, 2020 Principal amount $ 2,152 Included in consolidated balance sheet: Current portion of long-term loan $ 449 Long-term loan (non-current) 1,703 $ 2,152 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Company's Lease Information | For the years ended December 31, 2020 and 2019, a summary of the Company’s lease information is shown below: Year Ended December 31, (In thousands) 2020 2019 Lease cost: Operating lease costs $ 672 $ 672 Other information: Cash paid for operating leases $ 704 $ 687 Right-of-use assets obtained in exchange for operating lease liabilities $ - $ 3,042 Weighted average discount rate for operating leases ( 1) - 8 % (1) The Company used 8.0%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the leases to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of January 1, 2019, the application date. |
Scheduled Future Maturities and Present Value of Operating Lease Liabilities | As of December 31, 2020, scheduled future maturities and present value of the operating lease liabilities are as follows: (In thousands) Year December 31, 2020 2021 $ 724 2022 743 2023 765 2024 542 2025 77 Total maturities $ 2,851 Present value included in consolidated balance sheet: Current portion of operating lease liabilities $ 552 Noncurrent operating lease liabilities 1,908 Total operating lease liabilities $ 2,460 Difference between the maturities and the present value of operating lease liabilities $ 391 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Capital Payments under Certain Data Licensing Agreements | The Company incurred data costs of $8,493 and $7,507 for the years ended December 31, 2020 and 2019, respectively, under certain data licensing agreements. As of December 31, 2020, future material capital commitments under certain data licensing agreements were $10,888, shown as follows: (In thousands) Year December 31, 2020 2021 $ 7,495 2022 2,492 2023 423 2024 217 2025 224 2026 and thereafter 37 Total $ 10,888 |
Principal Activities - Addition
Principal Activities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Operating segments | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)SegmentCustomerSupplier | Dec. 31, 2019USD ($)CustomerSupplier | May 05, 2020USD ($) | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Net loss | $ 6,813,000 | $ 11,076,000 | ||
Net cash (used) in operating activities | 6,519,000 | 1,647,000 | ||
Accumulated deficit | 22,673,000 | 15,860,000 | ||
Cash and cash equivalents | 12,957,000 | 11,776,000 | ||
Net increase in cash and cash equivalents | $ 1,181,000 | |||
Cash and cash equivalents maturity description | three months or less | |||
FDIC Insurance limit | $ 250,000 | |||
Allowance for doubtful accounts | 38,000 | 40,000 | $ 77,000 | |
Goodwill | 5,227,000 | 5,227,000 | ||
Goodwill impairment | 0 | 0 | ||
Impairment of long lived assets | $ 0 | 0 | ||
Deferred revenue recognition period | 12 months | |||
Additional automatic renewal period of contract | 12 months | |||
Description of written notice of intent for renewal of contract term | Revenue pursuant to contracts containing a monthly fee is recognized ratably over the contract period, which is generally 12 months, and the contract shall automatically renew for additional, successive 12-month terms unless written notice of intent not to renew is provided by one party to the other at least 30 days or 60 days prior to the expiration of the then current term. | |||
Deferred revenue | $ 504,000 | $ 128,000 | ||
Deferred revenue realization period | 12 months | |||
Revenue recognized, previously reported as deferred | 128,000 | $ 128,000 | ||
Estimated revenue expected to be recognized in the future | $ 1,296,000 | |||
Period over which subscription contract terms exceed | 12 months | |||
Advertising and promotion costs | $ 85,000 | $ 108,000 | ||
Percentage of tax benefits likelihood of being realized upon settlement of tax authority | greater than 50% | |||
Operating segments | Segment | 1 | |||
Customer Concentration Risk | Sales Revenue, Net | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Major customers | Customer | 0 | 1 | ||
Concentration risk | 10.00% | 15.00% | ||
Customer Concentration Risk | Accounts Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Major customers | Customer | 0 | 0 | ||
Concentration risk | 10.00% | 10.00% | ||
Supplier Concentration Risk | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Initial term of agreement expiration date with supplier | Apr. 30, 2022 | |||
Each party's written notice of termination after the initial term | 30 days | |||
The Company's written notice of termination during the initial term | 24 months | |||
Supplier's written notice of termination during the initial term | 150 days | |||
Remaining minimum purchase commitments through end of initial term | $ 5,700,000 | |||
Supplier Concentration Risk | Cost of Total Data Acqusition | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk | 46.00% | 40.00% | ||
Supplier Concentration Risk | Total Accounts Payable | Data Supplier One | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk | 40.00% | 43.00% | ||
Number of major suppliers | Supplier | 2 | 1 | ||
Concentration Risk Percentage 2 | 16.00% | |||
Customers With Pricing Contracts | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of Revenue | 73.00% | 65.00% | ||
Transactional Customers | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of Revenue | 27.00% | 35.00% | ||
Promissory Note [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Non-recourse debt | $ 2,200,000 | |||
Interactive Data | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Goodwill | $ 5,227,000 | $ 5,227,000 | ||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of intangible assets | 5 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of intangible assets | 10 years | |||
United States | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 12,957,000 | $ 11,776,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Computer and Network Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated life of property and equipment | 5 years |
Computer and Network Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated life of property and equipment | 7 years |
Furniture, Fixtures and Office Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated life of property and equipment | 5 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated life of property and equipment | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Details 1) $ in Thousands | Dec. 31, 2020USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 1,296 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 966 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 305 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 18 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Estimated revenue expected to be recognized in the future | $ 7 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Loss Per Share - Schedule of Ba
Loss Per Share - Schedule of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (6,813) | $ (11,076) |
Weighted average shares outstanding - Basic and diluted | 11,863,413 | 10,762,881 |
Loss per share: | ||
Basic and diluted: | $ (0.57) | $ (1.03) |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Details) - Restricted Stock Units (RSUs) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Line Items] | ||
Shares excluded from the diluted loss per share calculation | 1,764,450 | 2,237,827 |
Shares vested but not delivered excluded from the diluted loss per share calculation | 20,667 | 12,250 |
Accounts Receivable, Net - Summ
Accounts Receivable, Net - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | |||
Accounts receivable | $ 3,239 | $ 3,583 | |
Less: Allowance for doubtful accounts | (38) | (40) | $ (77) |
Total accounts receivable, net | $ 3,201 | $ 3,543 |
Accounts Receivable, Net - Su_2
Accounts Receivable, Net - Summary of Movement of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Beginning balance | $ 40 | $ 77 |
Charges to expenses | 406 | 582 |
Write-offs | (408) | (619) |
Ending balance | $ 38 | $ 40 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | $ 1,430 | $ 1,510 |
Less: Accumulated depreciation | (872) | (850) |
Property and equipment, net | 558 | 660 |
Computer and Network Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | 705 | 749 |
Furniture, Fixtures and Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | 673 | 708 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of property and equipment | $ 52 | $ 53 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Depreciation of property and equipment | $ 226 | $ 252 |
Intangible Assets, Net - Intang
Intangible Assets, Net - Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible Assets, Net | $ 27,170 | $ 24,034 |
Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years | |
Software Developed for Internal Use | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Amount | $ 36,804 | 29,690 |
Intangible Assets, Accumulated Amortization | (9,634) | (5,656) |
Intangible Assets, Net | $ 27,170 | $ 24,034 |
Software Developed for Internal Use | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Software Developed for Internal Use | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization expenses | $ 3,990 | $ 2,637 |
Software Developed for Internal Use | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets that have not started amortization | 2,677 | |
Capitalized costs of internally-developed software | $ 7,346 | $ 6,700 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Estimated Amortization Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Liability Disclosure [Abstract] | ||
2021 | $ 4,673 | |
2022 | 4,932 | |
2023 | 5,111 | |
2024 | 4,472 | |
2025 | 3,279 | |
2026 and thereafter | 4,703 | |
Intangible Assets, Net | $ 27,170 | $ 24,034 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued payroll and related expenses | $ 1,077 | $ 877 |
Accrued data acquisition costs | 58 | 142 |
Sales tax payable | 104 | 447 |
Miscellaneous expenses payable | 219 | 105 |
Total | $ 1,458 | $ 1,571 |
Income Taxes - Schedule of Bene
Income Taxes - Schedule of Benefit for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred | ||
Federal | $ (1,903) | $ (2,449) |
State | (554) | (359) |
Valuation allowance | $ 2,457 | $ 2,808 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Benefit Differed from Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ||
Tax on loss before income taxes | $ (1,431) | $ (2,326) |
Effect of state taxes (net of federal tax benefit) | (552) | (359) |
Excess tax benefit from share-based compensation | (1,227) | (672) |
Nondeductible executive compensation | 656 | 669 |
Others | 97 | (120) |
Valuation allowance | $ 2,457 | $ 2,808 |
Tax on loss before income taxes | 21.00% | 21.00% |
Effect of state taxes (net of federal tax benefit) | 8.00% | 3.00% |
Excess tax benefit from share-based compensation | 18.00% | 6.00% |
Nondeductible executive compensation | (10.00%) | (6.00%) |
Others | (1.00%) | 1.00% |
Valuation allowance | (36.00%) | (25.00%) |
Income tax benefit | 0.00% | 0.00% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 8,994 | $ 6,711 |
Share-based compensation | 1,872 | 1,135 |
Accounts receivable | 10 | 10 |
Accrued expenses and other current liabilities | 330 | 114 |
Deferred tax assets, gross, Total | 11,206 | 7,970 |
Valuation allowance | (7,583) | (5,126) |
Deferred tax assets, net of valuation allowance | 3,623 | 2,844 |
Deferred tax liabilities: | ||
Intangible assets | 3,491 | 2,724 |
Property and equipment | 132 | 120 |
Deferred tax liabilities, gross, Total | $ 3,623 | $ 2,844 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Operating loss carryforward, expiration year | 2035 | ||
Operating loss carryforwards valuation allowance | $ 7,583,000 | $ 5,126,000 | |
(Decrease) increase in valuation allowance | $ 2,457,000 | 2,808,000 | |
Percentage of tax benefits likelihood of being realized upon settlement of tax authority | greater than 50% | ||
Unrecognized tax benefits | $ 0 | $ 0 | |
Domestic Tax Authority | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 36,050,000 | ||
Net operating loss carryforwards, carried forward indefinitely | 28,506,000 | $ 28,506,000 | |
State and Local Jurisdiction | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 26,298,000 |
Common Stock and Preferred St_2
Common Stock and Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Line Items] | ||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Common stock, shares issued | 12,167,327 | 11,657,912 | ||
Treasury Stock, issued | 0 | 103,147 | ||
Issuance of common stock upon direct offering to certain investors, net of issuance costs | 681,000 | |||
Common Stock Issuance Price | $ 11 | |||
Proceeds from issuance of shares, net of issuance costs | $ 7,436 | |||
Treasury Stock, Value | $ 0 | $ 1,255 | ||
Treasury Stock, Shares | 0 | 103,147 | 0 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Treasury Stock | ||||
Equity [Line Items] | ||||
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares | 121,608 | 103,147 | ||
Retirement of treasury stock, Shares | 224,755 | |||
Treasury Stock, Value | $ 1,828 | |||
Common Stock | ||||
Equity [Line Items] | ||||
Vesting of restricted stock units, Shares | 734,170 | 710,299 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Jun. 03, 2020 | Mar. 22, 2018 | |
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation costs in respect of granted RSUs | $ 11,735 | ||
Unrecognized share-based compensation remaining weighted average period | 2 years 2 months 12 days | ||
2018 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock authorized | 3,000,000 | ||
Common stock available for future issuance | 1,270,415 | ||
2018 Stock Incentive Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock authorized | 3,000,000 | ||
2018 Stock Incentive Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock authorized | 4,500,000 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Unvested RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested, Number of units, Beginning balance | 2,237,827 | 2,121,000 |
Granted, Number of units | 283,459 | 917,500 |
Vested and delivered, Number of units | (612,561) | (607,152) |
Withheld as treasury stock, Number of units | (121,608) | (103,147) |
Vested not delivered, Number of units | (8,417) | (12,250) |
Forfeited, Number of units | (14,250) | (78,124) |
Unvested, Number of units, Ending balance | 1,764,450 | 2,237,827 |
Unvested, Weighted average grant-date fair value, Beginning balance | $ 8.88 | $ 7.65 |
Granted, Weighted average grant-date fair value | 22.30 | 10.67 |
Vested and delivered, Weighted average grant-date fair value | 7.78 | 7.62 |
Withheld as treasury stock, Weighted average grant-date fair value | 7.72 | 7.75 |
Vested not delivered, Weighted average grant-date fair value | 11.25 | 6.13 |
Forfeited, Weighted average grant-date fair value | 15.45 | 8.26 |
Unvested, Weighted average grant-date fair value, Ending balance | $ 11.43 | $ 8.88 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Restricted Stock Units Granted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Amortization of share-based compensation | $ 8,064 | $ 9,913 | |
Performance Based Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of units | 2,310,000 | ||
Amortization of share-based compensation | $ 7,896 | 9,069 | |
Performance Based Restricted Stock Units | Criteria One | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant dates | [1] | 9/5/2018 - 1/16/2019 | |
Number of units | [1] | 1,577,500 | |
Weighted average grant-date fair value | [1] | $ 7.66 | |
Amortization of share-based compensation | [1] | $ 3,155 | 7,724 |
Performance Based Restricted Stock Units | Criteria One | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | [1] | 3 years | |
Performance Based Restricted Stock Units | Criteria One | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | [1] | 4 years | |
Performance Based Restricted Stock Units | Criteria Two | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant dates | [2] | 8/28/2019 - 9/8/2020 | |
Number of units | [2] | 277,500 | |
Weighted average grant-date fair value | [2] | $ 12.27 | |
Amortization of share-based compensation | [2] | $ 1,239 | 442 |
Performance Based Restricted Stock Units | Criteria Two | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | [2] | 3 years | |
Performance Based Restricted Stock Units | Criteria Two | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | [2] | 4 years | |
Performance Based Restricted Stock Units | Criteria Three | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant dates | [3] | 8/28/2019 - 11/20/2020 | |
Number of units | [3] | 455,000 | |
Weighted average grant-date fair value | [3] | $ 15.44 | |
Vesting period | [3] | 3 years | |
Amortization of share-based compensation | [3] | $ 3,502 | $ 903 |
[1] | Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $7.0 million for such fiscal quarter, (ii) positive adjusted EBITDA, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and (iii) the participant continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of June 30, 2019, the Company determined that the performance criteria were met. As of December 31, 2020, the remaining 555,830 shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement. | ||
[2] | Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $10.0 million for such fiscal quarter, (ii) positive adjusted EBITDA of at least $1.5 million, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and (iii) the recipient continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of the respective grant dates, the Company determined that it was probable that the Criteria Two would be met and therefore, began to record the related amortization expense on the grant dates. | ||
[3] | Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $12.5 million for such fiscal quarter, (ii) positive adjusted EBITDA of at least $2.0 million, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and the recipient continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the respective performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of the respective grant dates, the Company determined that it was probable that the Criteria Three would be met and therefore, began to record the related amortization expense on the grant dates. |
Share-based Compensation - Sc_3
Share-based Compensation - Schedule of Restricted Stock Units Granted (Parenthetical) (Details) - Performance Based Restricted Stock Units $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)shares | ||
Criteria One | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | [1] |
Criteria One | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | [1] |
Criteria Two | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | [2] |
Criteria Two | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | [2] |
Criteria Three | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | [3] |
2018 Stock Incentive Plan | Criteria One | Employees and Directors | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Gross revenue threshold limit for vesting of grants | $ 7 | |
Vesting period | 3 years | |
Expected to vest and issued, remaining shares | shares | 555,830 | |
2018 Stock Incentive Plan | Criteria Two | Employees and Directors | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Gross revenue threshold limit for vesting of grants | $ 10 | |
2018 Stock Incentive Plan | Criteria Two | Employees and Directors | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Positive adjusted EBITDA threshold limit for vesting of grants | $ 1.5 | |
2018 Stock Incentive Plan | Criteria Two | Employees and Directors | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | |
2018 Stock Incentive Plan | Criteria Three | Employees and Directors | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Gross revenue threshold limit for vesting of grants | $ 12.5 | |
Vesting period | 3 years | |
2018 Stock Incentive Plan | Criteria Three | Employees and Directors | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Positive adjusted EBITDA threshold limit for vesting of grants | $ 2 | |
[1] | Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $7.0 million for such fiscal quarter, (ii) positive adjusted EBITDA, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and (iii) the participant continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of June 30, 2019, the Company determined that the performance criteria were met. As of December 31, 2020, the remaining 555,830 shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement. | |
[2] | Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $10.0 million for such fiscal quarter, (ii) positive adjusted EBITDA of at least $1.5 million, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and (iii) the recipient continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of the respective grant dates, the Company determined that it was probable that the Criteria Two would be met and therefore, began to record the related amortization expense on the grant dates. | |
[3] | Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, (i) gross revenue determined in accordance with the Company’s reviewed or audited financial statements in excess of $12.5 million for such fiscal quarter, (ii) positive adjusted EBITDA of at least $2.0 million, as determined based on amounts derived from the Company’s reviewed or audited financial statements for such fiscal quarter, and the recipient continues to provide services to the Company either as an employee, director or consultant on the last day of the quarter that the performance criteria are met. Provided the respective performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. In the event of a change of control, all RSUs which have not vested on the date of such change of control shall immediately vest even if the performance criteria have not been met. As of the respective grant dates, the Company determined that it was probable that the Criteria Three would be met and therefore, began to record the related amortization expense on the grant dates. |
Share-based Compensation - Summ
Share-based Compensation - Summary of Allocated Share-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based compensation recognized | ||
Share-based compensation expense | $ 8,064 | $ 9,913 |
Share-based compensation capitalized in intangible assets | 1,838 | 788 |
Total | 9,902 | 10,701 |
Sales and Marketing Expenses | ||
Share-based compensation recognized | ||
Share-based compensation expense | 609 | 454 |
General and Administrative Expenses | ||
Share-based compensation recognized | ||
Share-based compensation expense | $ 7,455 | $ 9,459 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Nov. 01, 2023 | Nov. 01, 2022 | Nov. 01, 2021 | Feb. 16, 2021 | Aug. 07, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||||
Share-based compensation expense | $ 8,064 | $ 9,913 | |||||
Restricted Stock Units (RSUs) | |||||||
Related Party Transaction [Line Items] | |||||||
Number of units | 283,459 | 917,500 | |||||
Services Agreement | Michael Brauser-A Greater Than 10% Stockholder | |||||||
Related Party Transaction [Line Items] | |||||||
Related party stockholder, percent | 10.00% | ||||||
Term of agreement, related party | 1 year | ||||||
Renewal term of agreement, related party | 1 year | ||||||
Consulting service fee monthly payment | $ 30 | ||||||
Consulting service fee recognized amount | $ 360 | $ 360 | |||||
Consulting service fee bonus payment | 150 | ||||||
Services Agreement | Michael Brauser-A Greater Than 10% Stockholder | Restricted Stock Units (RSUs) | |||||||
Related Party Transaction [Line Items] | |||||||
Share-based compensation expense | $ 1,392 | $ 1,801 | |||||
Separation Agreement | Michael Brauser-A Greater Than 10% Stockholder | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of securities entitled to vote | 25.00% | ||||||
Separation Agreement | Michael Brauser-A Greater Than 10% Stockholder | Subsequent Event | |||||||
Related Party Transaction [Line Items] | |||||||
Service agreement expiration date | Aug. 6, 2021 | ||||||
Separation Agreement | Michael Brauser-A Greater Than 10% Stockholder | Restricted Stock Units (RSUs) | |||||||
Related Party Transaction [Line Items] | |||||||
Number of units | 166,666 | ||||||
Shares, Vested | 30,000 | ||||||
Separation Agreement | Michael Brauser-A Greater Than 10% Stockholder | Restricted Stock Units (RSUs) | Forecast | |||||||
Related Party Transaction [Line Items] | |||||||
Vesting percentage | 100.00% | 66.00% | 33.00% | ||||
Separation Agreement | Michael Brauser-A Greater Than 10% Stockholder | Restricted Stock Units (RSUs) | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of common stock | 10.00% | ||||||
Separation Agreement | Michael Brauser-A Greater Than 10% Stockholder | Restricted Stock Units (RSUs) | Subsequent Event | |||||||
Related Party Transaction [Line Items] | |||||||
Share-based compensation expense | $ 700 |
Long-term loan - Additional Inf
Long-term loan - Additional Information (Details) - Promissory Notes - Cares Act - Legacy Bank Of Florida $ in Thousands | May 05, 2020USD ($) |
Debt Instrument [Line Items] | |
Unsecured non-recourse loan in the principal amount | $ 2,152 |
Term of loan | 2 years |
Loan maturity date | May 5, 2022 |
Loan Interest rate | 1.00% |
Debt Instrument, limit amount | $ 2,000 |
Minimum | |
Debt Instrument [Line Items] | |
Percentage of loan proceeds used for covered payroll costs | 60.00% |
Long-term loan - Schedule of Lo
Long-term loan - Schedule of Long-term loan (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Principal amount | $ 2,152 | |
Included in consolidated balance sheet: | ||
Current portion of long-term loan | 449 | $ 0 |
Long-term loan (non-current) | 1,703 | |
Long-term loan, gross | $ 2,152 |
Leases - Additional Information
Leases - Additional Information (Details) - ft² | 12 Months Ended | ||
Dec. 31, 2020 | Apr. 30, 2017 | Jan. 31, 2017 | |
Leases [Abstract] | |||
Operating leases rentable square feet | 6,003 | 21,020 | |
Operating lease agreement | 90 months | 89 months | |
Operating lease, existence of option to extend | true | ||
Operating lease, extended term | 60 months | ||
Weighted average remaining operating lease | 3 years 9 months 18 days |
Leases - Summary of Company's L
Leases - Summary of Company's Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Lease cost: | ||||
Operating lease costs | $ 672 | $ 672 | ||
Other information: | ||||
Cash paid for operating leases | $ 704 | 687 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 3,042 | |||
Weighted average discount rate for operating leases | 8.00% | [1] | 8.00% | |
[1] | The Company used 8.0%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the leases to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of January 1, 2019, the application date. |
Leases - Summary of Company's_2
Leases - Summary of Company's Lease Information (Paranthetical) (Details) | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Weighted average discount rate for operating leases | 8.00% | [1] | 8.00% |
[1] | The Company used 8.0%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the leases to determine the present value of the lease payments because the implicit rate in each lease is not readily determinable. The discount rate was calculated on the basis of information available as of January 1, 2019, the application date. |
Leases - Scheduled Future Matur
Leases - Scheduled Future Maturities and Present Value of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 724 | |
2022 | 743 | |
2023 | 765 | |
2024 | 542 | |
2025 | 77 | |
Total maturities | 2,851 | |
Present value included in consolidated balance sheet: | ||
Current portion of operating lease liabilities | 552 | $ 491 |
Noncurrent operating lease liabilities | 1,908 | $ 2,459 |
Total operating lease liabilities | 2,460 | |
Difference between the maturities and the present value of operating lease liabilities | $ 391 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($)Customer | Dec. 31, 2020USD ($)Customer | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($)Customer | Jun. 30, 2020USD ($)Customer | |
Commitments And Contingencies Disclosure [Abstract] | |||||
Data cost incurred | $ 8,493 | $ 7,507 | |||
Total capital commitment under certain data licensing agreements | $ 10,888 | 10,888 | |||
Decrease for collection customers activities | (900) | ||||
Loss contingency, concessions granted | $ 32 | $ 32 | $ 94 | $ 342 | |
Number Of Customers | Customer | 7 | 7 | 22 | 152 | |
Deferred amount percentage | 50.00% | 50.00% |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Capital Payments under Certain Data Licensing Agreements (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 7,495 |
2022 | 2,492 |
2023 | 423 |
2024 | 217 |
2025 | 224 |
2026 and thereafter | 37 |
Total | $ 10,888 |