QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ☐ | ☒ | |||||||||
Non-Accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | |||||
Item 1A. Risk Factors | |||||
As of | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash, current | |||||||||||
Marketable securities, current | |||||||||||
Accounts receivable, net | |||||||||||
Deferred sales commissions, current | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total Current Assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Deposits and other | |||||||||||
Marketable securities, net of current | |||||||||||
Deferred sales commissions, net of current | |||||||||||
Deferred tax asset, net | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES & STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Deferred revenue, current | |||||||||||
Term loan, current | |||||||||||
Operating lease liabilities, current | |||||||||||
Finance lease liabilities, current | |||||||||||
Total current liabilities | |||||||||||
Long term liabilities: | |||||||||||
Deferred revenue, net of current | |||||||||||
Term loan, net of current | |||||||||||
Operating lease liabilities, net of current | |||||||||||
Finance lease liabilities, net of current | |||||||||||
Deferred tax liability, net | |||||||||||
Warrant liability | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 9 and 21) | |||||||||||
Stockholders’ equity: |
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities & stockholders’ equity | $ | $ |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Sales and marketing expense | |||||||||||||||||||||||
General and administrative expense | |||||||||||||||||||||||
Research and development expense | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Change in the fair value of warrant liability | ( | ( | ( | ( | |||||||||||||||||||
Other expense, net | |||||||||||||||||||||||
Total other expense, net | |||||||||||||||||||||||
Pre-tax loss | ( | ( | ( | ( | |||||||||||||||||||
Provision for (benefit from) income taxes | ( | ||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Comprehensive loss | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ||||||||||||||||||||
Net unrealized loss on marketable securities | ( | ( | |||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
Comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per share | |||||||||||||||||||||||
Net loss per share—basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average shares outstanding—basic and diluted | |||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Retroactive application of reverse recapitalization | ( | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020, as converted | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Merger and PIPE financing | — | — | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net unrealized loss on marketable securities | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Gross issuance of shares upon vesting of stock-based awards | — | — | — | — | — | ||||||||||||||||||||||||||||||
Shares withheld to cover employees’ withholding taxes for stock-based awards | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net unrealized loss on marketable securities | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
For the six months ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of identified intangible assets | |||||||||||
Amortization of deferred loan origination costs | |||||||||||
Amortization of deferred sales commissions | |||||||||||
Non-cash lease expense | |||||||||||
Stock-based compensation expense | |||||||||||
Equity incentive bonus | |||||||||||
Bad debt expense | |||||||||||
Deferred income tax benefit | ( | ( | |||||||||
Loss on sale of marketable securities | |||||||||||
Amortization of premium paid on marketable securities | |||||||||||
Change in the fair value of the warrant liability | ( | ( | |||||||||
Offering cost associated with Warrants recorded as liabilities | |||||||||||
Changes in assets and liabilities | |||||||||||
Accounts receivable | ( | ||||||||||
Other assets | ( | ||||||||||
Deferred sales commissions | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Accrued expenses | ( | ||||||||||
Deferred revenue | ( | ( | |||||||||
Operating lease liabilities | ( | ( | |||||||||
Other long-term liabilities | ( | ||||||||||
Net cash used in operating activities | ( | ( | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Purchases of marketable securities | ( | ||||||||||
Proceeds from sale of marketable securities | |||||||||||
Proceeds from maturities and principal paydowns of marketable securities | |||||||||||
Proceeds from asset acquisition, net of cash paid | |||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Financing activities: | |||||||||||
Proceeds from Merger and PIPE financing, net of cash paid | |||||||||||
Repayment on loan payable | ( | ( | |||||||||
Repayment of drawdown on line of credit | ( | ||||||||||
Repayments on finance lease obligations | ( | ( | |||||||||
Payment of employees’ withholding taxes on net share settlement of share-based awards | ( | ||||||||||
Net cash provided by (used in) financing activities | ( |
Effect of foreign currency translation | ( | ( | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents, and restricted cash beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash end of period | $ | $ | |||||||||
For the six months ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid | |||||||||||
Supplemental schedule of noncash investing activities: | |||||||||||
Change in unrealized loss on marketable securities | $ | $ | |||||||||
Additional right-of-use assets | |||||||||||
Contingent consideration in asset acquisition |
As of June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash, current | |||||||||||
Restricted cash, net of current | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
Years | |||||
Computer equipment | |||||
Computer software | |||||
Furniture and fixtures | |||||
Leasehold improvements | |||||
Website development |
Years | |||||
Marketing-based | |||||
Technology-based | |||||
Customer-based | |||||
Trademark-based | |||||
Workforce-based |
June 30, 2022 | December 31, 2021 | ||||||||||
Accounts receivable, net | $ | $ | |||||||||
Contract liabilities, current (deferred revenue) | |||||||||||
Contract liabilities, non-current (deferred revenue) |
June 30, 2022 | December 31, 2021 | $ Change | |||||||||||||||
Contract liabilities (deferred revenue) | $ | $ | $ | ( |
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||||||||||
U.S. corporate securities | $ | $ | $ | ( | $ | ||||||||||||||||||
U.S. government securities | ( | ||||||||||||||||||||||
Asset-backed securities | ( | ||||||||||||||||||||||
Other debt securities | ( | ||||||||||||||||||||||
Total available for sale securities | ( | ||||||||||||||||||||||
Total debt securities | $ | $ | $ | ( | $ |
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||||||||||
U.S. corporate securities | $ | $ | $ | ( | $ | ||||||||||||||||||
U.S. government securities | ( | ||||||||||||||||||||||
Asset-backed securities | ( | ||||||||||||||||||||||
Other debt securities | ( | ||||||||||||||||||||||
Total available for sale securities | ( | ||||||||||||||||||||||
Total debt securities | $ | $ | $ | ( | $ |
As of June 30, 2022 | Amortized Cost | Fair Value | |||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through five years | |||||||||||
Total available for sale securities | |||||||||||
Total debt securities | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||
Proceeds from sales of debt securities | $ | $ | $ | $ | |||||||||||||||||||
Gross realized gains | $ | $ | $ | $ | |||||||||||||||||||
Gross realized losses | ( | ( | |||||||||||||||||||||
Net realized losses | $ | ( | $ | $ | ( | $ |
In Unrealized Loss Position For Less Than 12 Months | In Unrealized Loss Position For 12 Months Or Longer | ||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||
U.S. corporate securities | $ | $ | ( | $ | $ | ||||||||||||||||||
U.S. government securities | ( | ||||||||||||||||||||||
Asset-backed securities | ( | ||||||||||||||||||||||
Other debt securities | ( | ||||||||||||||||||||||
Total available for sale securities | ( | ||||||||||||||||||||||
Total debt securities | $ | $ | ( | $ | $ |
In Unrealized Loss Position For Less Than 12 Months | In Unrealized Loss Position For 12 Months Or Longer | ||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||
U.S. corporate securities | $ | $ | ( | $ | $ | ||||||||||||||||||
U.S. government securities | ( | ||||||||||||||||||||||
Asset-backed securities | ( | ||||||||||||||||||||||
Other debt securities | ( | ||||||||||||||||||||||
Total available for sale securities | ( | ||||||||||||||||||||||
Total debt securities | $ | $ | ( | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Computer software | $ | $ | |||||||||
Computer equipment | |||||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Total | |||||||||||
Less: accumulated depreciation and amortization | ( | ( | |||||||||
Property and equipment, net | $ | $ |
Cost | Accumulated Amortization | Carrying Amount | Weighted Average Remaining Life (In Years) | ||||||||||||||||||||
Marketing-based | $ | $ | ( | $ | |||||||||||||||||||
Technology-based | ( | ||||||||||||||||||||||
Customer-based | ( | ||||||||||||||||||||||
Workforce-based | ( | ||||||||||||||||||||||
$ | $ | ( | $ |
Cost | Accumulated Amortization | Carrying Amount | Weighted Average Remaining Life (In Years) | ||||||||||||||||||||
Marketing-based | $ | $ | ( | $ | |||||||||||||||||||
Technology-based | ( | ||||||||||||||||||||||
Customer-based | ( | ||||||||||||||||||||||
Workforce-based | ( | ||||||||||||||||||||||
$ | $ | ( | $ |
As of June 30, 2022 | Amount | ||||
Remaining 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 and beyond | |||||
Total future identified intangible asset amortization | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Accrued bonuses | $ | $ | |||||||||
Accrued paid time off | |||||||||||
Accrued commissions | |||||||||||
Other accrued expenses | |||||||||||
Total accrued expenses | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of right-of-use assets | $ | $ | $ | $ | |||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Total finance lease cost | $ | $ | $ | $ |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash used in operating leases | $ | $ | |||||||||
Financing cash used in finance leases | |||||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | $ | $ | |||||||||
Finance leases |
June 30, 2022 | December 31, 2021 | ||||||||||
Operating Leases | |||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||
Operating lease liabilities: | |||||||||||
Operating lease liabilities—current | $ | $ | |||||||||
Operating lease liabilities—less current portion | |||||||||||
Total operating lease liabilities | $ | $ | |||||||||
Finance Leases | |||||||||||
Property and equipment, gross | $ | $ | |||||||||
Less: accumulated depreciation and amortization | ( | ( | |||||||||
Property and equipment, net | $ | $ | |||||||||
Finance lease liabilities: | |||||||||||
Finance lease liabilities—current | $ | $ | |||||||||
Finance lease liabilities—less current portion | |||||||||||
Total finance lease liabilities | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Weighted average remaining lease term | |||||||||||
Operating Leases | |||||||||||
Finance Leases |
June 30, 2022 | December 31, 2021 | ||||||||||
Weighted average discount rate | |||||||||||
Operating Leases | % | % | |||||||||
Finance Leases | % | % |
As of June 30, 2022 | Operating Leases | Finance Leases | |||||||||
Remaining 2022 | $ | $ | |||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 and beyond | |||||||||||
Total lease payments | |||||||||||
Less: imputed interest | ( | ( | |||||||||
Total | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Total term loan obligations | $ | $ | |||||||||
Less: current portion of term loan | ( | ( | |||||||||
Long-term term loan obligations | $ | $ |
As of June 30, 2022 | Amount to Mature | ||||
Remaining 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
Total | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Principal | $ | $ | |||||||||
Less: Unamortized issuance costs | ( | ( | |||||||||
Net carrying amount | $ | $ |
June 30, 2021 | |||||||||||||||||
Foreign currency translation adjustment | Net unrealized loss on marketable securities | Total accumulated other comprehensive loss | |||||||||||||||
Balance, beginning of period | $ | ( | $ | $ | ( | ||||||||||||
Other comprehensive income | |||||||||||||||||
Balance, end of period | $ | ( | $ | $ | ( | ||||||||||||
June 30, 2022 | |||||||||||||||||
Foreign currency translation adjustment | Net unrealized loss on marketable securities | Total accumulated other comprehensive loss | |||||||||||||||
Balance, beginning of period | $ | ( | $ | ( | $ | ( | |||||||||||
Other comprehensive loss | ( | ( | ( | ||||||||||||||
Balance, end of period | $ | ( | $ | ( | $ | ( |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Before tax | Tax effect | Net of tax | Before tax | Tax effect | Net of tax | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||
Net unrealized loss on marketable securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Before tax | Tax effect | Net of tax | Before tax | Tax effect | Net of tax | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | $ | ( | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||
Net unrealized loss on marketable securities | ( | ( | |||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | $ | ( | $ | $ | ( | $ | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Holding period | |||||||||||
Volatility | % | ||||||||||
Discount for lack of marketability | % | ||||||||||
Risk-free rate | % |
Number of Shares | Weighted-average Grant Date Fair Value (per share) | Weighted-average Remaining Contractual Term (1) | |||||||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Vested | ( | ||||||||||||||||
Forfeited | |||||||||||||||||
Outstanding at June 30, 2022 | $ |
Equity-classified RSUs - employee (1) | |||||||||||||||||
Number of Shares | Weighted-average Grant Date Fair Value (per share) | Weighted-average Remaining Contractual Term (2) | |||||||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Vested | ( | ||||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding at June 30, 2022 | $ |
Equity-classified RSUs - nonemployee (1) | |||||||||||||||||
Number of Shares | Weighted-average Grant Date Fair Value (per share) | Weighted-average Remaining Contractual Term (2) | |||||||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Vested | ( | ||||||||||||||||
Forfeited | |||||||||||||||||
Outstanding at June 30, 2022 | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Stock price | $ | $ | |||||||||
Measurement period | |||||||||||
Expected volatility | % | % | |||||||||
Risk-free rate | % | ||||||||||
Vesting hurdle 1 | $ | $ | |||||||||
Vesting hurdle 2 | $ | $ | |||||||||
Vesting hurdle 3 | $ | $ |
Equity-classified PSUs - employee (1) | |||||||||||||||||
Number of Shares | Weighted-average Grant Date Fair Value (per share) | Weighted-average Remaining Contractual Term (2) | |||||||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Vested | |||||||||||||||||
Forfeited | |||||||||||||||||
Outstanding at June 30, 2022 | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
Sales and marketing expense | |||||||||||||||||||||||
General and administrative expense | |||||||||||||||||||||||
Research and development expense | |||||||||||||||||||||||
Total stock-based compensation | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Equity-classified awards: | |||||||||||||||||||||||
MIUs | $ | $ | $ | $ | |||||||||||||||||||
RSUs - employee | |||||||||||||||||||||||
RSUs - nonemployee | |||||||||||||||||||||||
PSUs - employee | |||||||||||||||||||||||
Total equity-classified awards | |||||||||||||||||||||||
Total stock-based compensation | $ | $ | $ | $ | |||||||||||||||||||
Unrecognized Stock-based Compensation Expense | Weighted-average Recognition Period (1) | ||||||||||
Equity-classified awards: | |||||||||||
MIUs | $ | ||||||||||
RSUs - employee | |||||||||||
RSUs - nonemployee | |||||||||||
PSUs - employee | |||||||||||
Total equity-classified awards | |||||||||||
Total unrecognized stock-based compensation | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Americas (excluding United States) | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
Europe | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
United States | $ | $ | |||||||||
Americas (excluding United States) | |||||||||||
Asia | |||||||||||
Property and equipment, net | $ | $ |
Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Restricted cash | |||||||||||||||||||||||
Marketable securities | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Term loan | $ | $ | $ | $ | |||||||||||||||||||
Finance lease obligations | |||||||||||||||||||||||
Warrant liability—Forward Purchase Warrants | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Restricted cash | |||||||||||||||||||||||
Marketable securities | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Term loan | $ | $ | $ | $ | |||||||||||||||||||
Finance lease obligations | |||||||||||||||||||||||
Warrant liability—Forward Purchase Warrants | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Stock price | $ | $ | |||||||||
Exercise price | $ | $ | |||||||||
Contractual term | |||||||||||
Expected volatility | |||||||||||
Risk-free rate | |||||||||||
Dividend yield |
June 30, 2022 | December 31, 2021 | ||||||||||
Balance, beginning of period | $ | $ | |||||||||
VCIP/OBIP payments | ( | ||||||||||
Closing-date fair value of warrant liability | |||||||||||
Changes in fair value of warrant liability | ( | ( | |||||||||
Balance, end of period | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Loss attributable to common stockholders—basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares outstanding—basic and diluted | |||||||||||||||||||||||
Loss per share: | |||||||||||||||||||||||
Basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Earn-Out Shares (1) | |||||||||||||||||||||||
Lock-Up Shares (2) | |||||||||||||||||||||||
Finders Agreement Shares (3) | |||||||||||||||||||||||
Warrants to purchase common stock | |||||||||||||||||||||||
Shares withheld to cover employees’ withholding taxes upon vesting of RSUs | |||||||||||||||||||||||
Unvested RSUs | |||||||||||||||||||||||
Unvested PSUs | |||||||||||||||||||||||
Total |
Twelve Months Ended June 30, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2021 | 2020 | ||||||||||||||||||||
LTM Net Revenue Retention Rate | 108 | % | 105 | % | 105 | % | 106 | % |
Three Months Ended June 30, (unaudited) | Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net loss | $ | (10,780) | $ | (75,843) | $ | (23,767) | $ | (80,018) | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Depreciation and amortization (1) | 1,085 | 1,602 | 2,431 | 3,205 | |||||||||||||||||||
Long-term equity incentive bonus and stock-based compensation expenses (2)(3) | 3,423 | 69,423 | 5,902 | 69,965 | |||||||||||||||||||
Interest expense, net | 744 | 941 | 1,494 | 1,885 | |||||||||||||||||||
Change in the fair value of warrant liability | (92) | (375) | (484) | (375) | |||||||||||||||||||
Other expense, net | 113 | 32 | 49 | 25 | |||||||||||||||||||
Acquisition and financing related fees and expenses (4) | — | 1,041 | — | 1,041 | |||||||||||||||||||
Transaction-related costs (4) | 183 | 570 | 183 | 1,303 | |||||||||||||||||||
Golden Gate Capital management fee expenses (4) | — | (25) | — | 146 | |||||||||||||||||||
Provision for (benefit from) income taxes | (229) | 51 | 315 | 86 | |||||||||||||||||||
Adjusted EBITDA | $ | (5,553) | $ | (2,583) | $ | (13,877) | $ | (2,737) |
Three Months Ended June 30, (unaudited) | Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of revenue | $ | 342 | $ | 911 | $ | 952 | $ | 1,858 | |||||||||||||||
Sales and marketing expense | 613 | 602 | 1,221 | 1,178 | |||||||||||||||||||
General and administrative expense | 94 | 54 | 186 | 102 | |||||||||||||||||||
Research and development expense | 36 | 35 | 72 | 67 | |||||||||||||||||||
Total depreciation and amortization | $ | 1,085 | $ | 1,602 | $ | 2,431 | $ | 3,205 |
Three Months Ended June 30, (unaudited) | Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of revenue | $ | — | $ | 9,619 | $ | — | $ | 9,658 | |||||||||||||||
Sales and marketing expense | — | 17,964 | — | 18,087 | |||||||||||||||||||
General and administrative expense | — | 18,307 | — | 18,401 | |||||||||||||||||||
Research and development expense | — | 23,394 | — | 23,541 | |||||||||||||||||||
Total long-term equity incentive bonus | $ | — | $ | 69,284 | $ | — | $ | 69,687 |
Three Months Ended June 30, (unaudited) | Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of revenue | $ | 403 | $ | 14 | $ | 715 | $ | 28 | |||||||||||||||
Sales and marketing expense | 870 | 28 | 1,477 | 56 | |||||||||||||||||||
General and administrative expense | 941 | 69 | 1,601 | 138 | |||||||||||||||||||
Research and development expense | 1,209 | 28 | 2,109 | 56 | |||||||||||||||||||
Total stock-based compensation expenses | $ | 3,423 | $ | 139 | $ | 5,902 | $ | 278 |
Three Months Ended June 30, (unaudited) | Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Gross profit | $ | 20,439 | $ | 7,298 | $ | 38,900 | $ | 24,063 | |||||||||||||||
Depreciation and amortization | 342 | 911 | 952 | 1,858 | |||||||||||||||||||
Long-term equity incentive bonus and stock-based compensation expenses | 403 | 9,633 | 715 | 9,686 | |||||||||||||||||||
Non-GAAP gross profit | $ | 21,184 | $ | 17,842 | $ | 40,567 | $ | 35,607 | |||||||||||||||
Gross margin % | 62.0 | % | 25.2 | % | 59.8 | % | 42.3 | % | |||||||||||||||
Non-GAAP gross margin % | 64.2 | % | 61.7 | % | 62.3 | % | 62.6 | % |
Three Months Ended June 30, (unaudited) | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue | $ | 32,987 | $ | 28,913 | ||||||||||
Cost of revenue | 12,548 | 21,615 | ||||||||||||
Gross profit | 20,439 | 7,298 | ||||||||||||
Operating expenses | ||||||||||||||
Sales and marketing expense | 14,970 | 27,685 | ||||||||||||
General and administrative expense | 7,546 | 24,637 | ||||||||||||
Research and development expense | 8,167 | 30,169 | ||||||||||||
Total operating expenses | 30,683 | 82,491 | ||||||||||||
Loss from operations | (10,244) | (75,193) | ||||||||||||
Interest expense, net | 744 | 941 | ||||||||||||
Change in the fair value of warrant liability | (92) | (375) | ||||||||||||
Other expense, net | 113 | 32 | ||||||||||||
Total other expense, net | 765 | 598 | ||||||||||||
Pre-tax loss | (11,009) | (75,791) | ||||||||||||
Provision for (benefit from) income taxes | (229) | 52 | ||||||||||||
Net loss | $ | (10,780) | $ | (75,843) | ||||||||||
Net loss per share—basic and diluted | $ | (0.12) | $ | (1.08) | ||||||||||
Weighted average shares outstanding—basic and diluted | 91,562 | 69,945 | ||||||||||||
Three Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Revenue | $ | 32,987 | $ | 28,913 | $ | 4,074 | 14.1 | % |
Three Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Cost of revenue | $ | 12,548 | $ | 21,615 | $ | (9,067) | (41.9) | % | ||||||||||||||||||
% of revenue | 38.0 | % | 74.8 | % |
Three Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Gross profit | $ | 20,439 | $ | 7,298 | $ | 13,141 | 180.1 | % | ||||||||||||||||||
Gross margin percentage | 62.0 | % | 25.2 | % |
Three Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Sales and marketing expense | $ | 14,970 | $ | 27,685 | $ | (12,715) | (45.9) | % | ||||||||||||||||||
% of revenue | 45.4 | % | 95.8 | % |
Three Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
General and administrative expense | $ | 7,546 | $ | 24,637 | $ | (17,091) | (69.4) | % | ||||||||||||||||||
% of revenue | 22.9 | % | 85.2 | % |
Three Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Research and development expense | $ | 8,167 | $ | 30,169 | $ | (22,002) | (72.9) | % | ||||||||||||||||||
% of revenue | 24.8 | % | 104.3 | % |
Three Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Interest expense, net | $ | 744 | $ | 941 | $ | (197) | (20.9) | % | ||||||||||||||||||
% of revenue | 2.3 | % | 3.3 | % |
Three Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Change in the fair value of warrant liability | $ | (92) | $ | (375) | $ | 283 | (75.5) | % | ||||||||||||||||||
% of revenue | (0.3) | % | (1.3) | % |
Six Months Ended June 30, (unaudited) | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue | $ | 65,080 | $ | 56,858 | ||||||||||
Cost of revenue | 26,180 | 32,795 | ||||||||||||
Gross profit | 38,900 | 24,063 | ||||||||||||
Operating expenses | ||||||||||||||
Sales and marketing expense | 29,622 | 36,593 | ||||||||||||
General and administrative expense | 15,014 | 29,517 | ||||||||||||
Research and development expense | 16,657 | 36,349 | ||||||||||||
Total operating expenses | 61,293 | 102,459 | ||||||||||||
Loss from operations | (22,393) | (78,396) | ||||||||||||
Interest expense, net | 1,494 | 1,885 | ||||||||||||
Change in the fair value of warrant liability | (484) | (375) | ||||||||||||
Other expense, net | 49 | 25 | ||||||||||||
Total other expense, net | 1,059 | 1,535 | ||||||||||||
Pre-tax loss | (23,452) | (79,931) | ||||||||||||
Provision for income taxes | 315 | 87 | ||||||||||||
Net loss | $ | (23,767) | $ | (80,018) | ||||||||||
Net loss per share—basic and diluted | $ | (0.26) | $ | (1.17) | ||||||||||
Weighted average shares outstanding—basic and diluted | 91,520 | 68,291 | ||||||||||||
Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Revenue | $ | 65,080 | $ | 56,858 | $ | 8,222 | 14.5 | % |
Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Cost of revenue | $ | 26,180 | $ | 32,795 | $ | (6,615) | (20.2) | % | ||||||||||||||||||
% of revenue | 40.2 | % | 57.7 | % |
Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Gross profit | $ | 38,900 | $ | 24,063 | $ | 14,837 | 61.7 | % | ||||||||||||||||||
Gross margin percentage | 59.8 | % | 42.3 | % |
Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Sales and marketing expense | $ | 29,622 | $ | 36,593 | $ | (6,971) | (19.1) | % | ||||||||||||||||||
% of revenue | 45.5 | % | 64.4 | % |
Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
General and administrative expense | $ | 15,014 | $ | 29,517 | $ | (14,503) | (49.1) | % | ||||||||||||||||||
% of revenue | 23.1 | % | 51.9 | % |
Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Research and development expense | $ | 16,657 | $ | 36,349 | $ | (19,692) | (54.2) | % | ||||||||||||||||||
% of revenue | 25.6 | % | 63.9 | % |
Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Interest expense, net | $ | 1,494 | $ | 1,885 | $ | (391) | (20.7) | % | ||||||||||||||||||
% of revenue | 2.3 | % | 3.3 | % |
Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
Change in the fair value of warrant liability | $ | (484) | $ | (375) | $ | (109) | 29.1 | % | ||||||||||||||||||
% of revenue | (0.7) | % | (0.7) | % |
Six Months Ended June 30, (unaudited) | |||||||||||
2022 | 2021 | ||||||||||
Net cash used in operating activities | $ | (16,418) | $ | (9,649) | |||||||
Net cash provided by (used in) investing activities | (82) | 722 | |||||||||
Net cash provided by (used in) financing activities | (610) | 150,933 | |||||||||
Effect of foreign currency translation | (234) | (49) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | (17,344) | $ | 141,957 |
Exhibit No. | Description of Exhibits | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Filed herewith. | |||||||
** | Furnished herewith. | |||||||
LiveVox Holdings, Inc. | ||||||||
Date: August 9, 2022 | By: | /s/ Louis Summe | ||||||
Louis Summe | ||||||||
Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) | ||||||||
Date: August 9, 2022 | By: | /s/ Gregg Clevenger | ||||||
Gregg Clevenger | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Date: August 9, 2022 | By: | /s/ Louis Summe | ||||||
Louis Summe | ||||||||
Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) |
Date: August 9, 2022 | By: | /s/ Gregg Clevenger | ||||||
Gregg Clevenger | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Date: August 9, 2022 | By: | /s/ Louis Summe | ||||||
Louis Summe | ||||||||
Chief Executive Officer and Director | ||||||||
(Principal Executive Officer) |
Date: August 9, 2022 | By: | /s/ Gregg Clevenger | ||||||
Gregg Clevenger | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 91,547,358 | 90,696,977 |
Common stock, shares outstanding (in shares) | 91,547,358 | 90,696,977 |
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Statement [Abstract] | ||||
Revenue | $ 32,987 | $ 28,913 | $ 65,080 | $ 56,858 |
Cost of revenue | 12,548 | 21,615 | 26,180 | 32,795 |
Gross profit | 20,439 | 7,298 | 38,900 | 24,063 |
Operating expenses | ||||
Sales and marketing expense | 14,970 | 27,685 | 29,622 | 36,593 |
General and administrative expense | 7,546 | 24,637 | 15,014 | 29,517 |
Research and development expense | 8,167 | 30,169 | 16,657 | 36,349 |
Total operating expenses | 30,683 | 82,491 | 61,293 | 102,459 |
Loss from operations | (10,244) | (75,193) | (22,393) | (78,396) |
Interest expense, net | 744 | 941 | 1,494 | 1,885 |
Change in the fair value of warrant liability | (92) | (375) | (484) | (375) |
Other expense, net | 113 | 32 | 49 | 25 |
Total other expense, net | 765 | 598 | 1,059 | 1,535 |
Pre-tax loss | (11,009) | (75,791) | (23,452) | (79,931) |
Provision for (benefit from) income taxes | (229) | 52 | 315 | 87 |
Net loss | (10,780) | (75,843) | (23,767) | (80,018) |
Comprehensive loss | ||||
Net loss | (10,780) | (75,843) | (23,767) | (80,018) |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustment | (153) | (25) | (202) | 14 |
Net unrealized loss on marketable securities | (288) | 0 | (1,176) | 0 |
Total other comprehensive income (loss), net of tax | (441) | (25) | (1,378) | 14 |
Comprehensive loss | $ (11,221) | $ (75,868) | $ (25,145) | $ (80,004) |
Net loss per share | ||||
Net loss per share—basic (in dollars per share) | $ (0.12) | $ (1.08) | $ (0.26) | $ (1.17) |
Net loss per share—diluted (in dollars per share) | $ (0.12) | $ (1.08) | $ (0.26) | $ (1.17) |
Weighted average shares outstanding—basic (in shares) | 91,562,000 | 69,945,000 | 91,520,000 | 68,291,000 |
Weighted average shares outstanding—diluted (in shares) | 91,562,000 | 69,945,000 | 91,520,000 | 68,291,000 |
Organization |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization LiveVox Holdings, Inc. (formerly known as Crescent Acquisition Corp (“Crescent”)), and its subsidiaries (collectively, the “Company,” “LiveVox,” “we,” “us” or “our”) is engaged in the business of developing and marketing a cloud-hosted Contact Center as a Service (“CCaaS”) customer engagement platform that leverages microservice technology to rapidly innovate and scale digital engagement functionality that also incorporates the capabilities of fully integrated omnichannel customer connectivity, multichannel enabled Customer Relationship Management and Workforce Optimization applications. LiveVox’s customers are located primarily in the United States. LiveVox’s services are used to initiate and manage customer contact campaigns primarily for companies in the accounts receivable management, tele-sales and customer care industries. On June 18, 2021 (the “Closing Date” or “Closing”), Crescent, a Delaware corporation, consummated the business combination pursuant to an Agreement and Plan of Merger, dated January 13, 2021 (the “Merger Agreement”), by and among Crescent, Function Acquisition I Corp, a Delaware corporation and direct, wholly owned subsidiary of Crescent (“First Merger Sub”), Function Acquisition II LLC, a Delaware limited liability company and a direct, wholly owned subsidiary of Crescent (“Second Merger Sub”), LiveVox Holdings, Inc., a Delaware corporation (“Old LiveVox”), and GGC Services Holdco, Inc., a Delaware corporation, solely in its capacity as the representative, agent and attorney-in-fact (in such capacity, the “Stockholder Representative”) of LiveVox TopCo, LLC (“LiveVox TopCo”), a Delaware limited liability company and the sole stockholder of Old LiveVox as of immediately prior to Closing (the “LiveVox Stockholder”). Pursuant to the Merger Agreement, a business combination between Crescent and Old LiveVox was effected through (a) the merger of First Merger Sub with and into Old LiveVox, with Old LiveVox continuing as the surviving corporation (the “First Merger”) and (b) immediately following the First Merger and as part of the same overall transaction as the First Merger, the merger of Old LiveVox with and into Second Merger Sub, with Second Merger Sub continuing as the surviving entity (the “Second Merger”, and collectively with the other transactions described in the Merger Agreement, the “Merger”). On the Closing Date, Crescent changed its name to “LiveVox Holdings, Inc.” and Second Merger Sub changed its name to “LiveVox Intermediate LLC”. On June 22, 2021, the Company’s ticker symbols on The Nasdaq Stock Market LLC (“Nasdaq”) for its Class A common stock, warrants to purchase Class A common stock and public units were changed to “LVOX”, “LVOXW” and “LVOXU”, respectively. LiveVox, Inc. was a direct, wholly owned subsidiary of Old LiveVox prior to the Merger and is a wholly owned subsidiary of the Company after the Merger. LiveVox, Inc. was first incorporated in Delaware in 1998 under the name “Tools for Health” and in 2005 changed its name to “LiveVox, Inc.” On March 21, 2014, LiveVox, Inc. and its subsidiaries were acquired by Old LiveVox. The principal United States operations of the Company are located in San Francisco, California; Columbus, Ohio and Atlanta, Georgia. The Company has four main operating subsidiaries: LiveVox Colombia SAS which is wholly owned with an office located in Medellin, Colombia, LiveVox Solutions Private Ltd with an office located in Bangalore, India, Speech IQ, LLC located in Columbus, Ohio, and Engage Holdings, LLC (d/b/a BusinessPhone.com) (“BusinessPhone.com”) located in Columbus, Ohio. Additionally, the Company has a wholly owned subsidiary, LiveVox International, Inc., that is incorporated in Delaware. The Company and LiveVox International, Inc. own 99.99% and 0.01%, respectively, of LiveVox Solutions Private Ltd.
|
Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies a) Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations or if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the SEC on March 11, 2022. The information as of December 31, 2021 included in the consolidated balance sheets was derived from those audited consolidated financial statements. Pursuant to Accounting Standards Codification (“ASC”) 805, Business Combinations, the Merger completed on June 18, 2021 was accounted for as a reverse recapitalization, rather than a business combination, for financial accounting and reporting purposes. Accordingly, Old LiveVox was deemed the accounting acquirer (and legal acquiree) and Crescent was treated as the accounting acquiree (and legal acquirer). Under this method of accounting, the reverse recapitalization was treated as the equivalent of Old LiveVox issuing stock for the net assets of Crescent, accompanied by a recapitalization. The net assets of Crescent are stated at historical cost, with no goodwill or other intangible assets recorded. The consolidated assets, liabilities and results of operations prior to the Merger are those of Old LiveVox. The shares and corresponding capital amounts and earnings per share available for common stockholders in the accompanying consolidated financial statements and these related notes, prior to the Merger, have been retroactively restated as shares reflecting the exchange ratio established in the Merger Agreement. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. All intercompany transactions and balances have been eliminated in consolidation. Results of operations for the three and six months ended June 30, 2022 and 2021 are not necessarily indicative of the results to be expected for the full annual periods. b) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and such differences could be material to the Company’s consolidated financial position and results of operations, requiring adjustment to these balances in future periods. Significant items subject to such estimates and assumptions include, but are not limited to, the determination of the useful lives of long-lived assets, period of benefit of deferred sales commissions, allowances for doubtful accounts, fair value of marketable securities, fair value of goodwill and long-lived assets, fair value of incentive awards, fair value of warrants, establishing standalone selling price, valuation of deferred tax assets, income tax uncertainties and other contingencies, including the Company’s ability to exercise its right to repurchase incentive options from terminated employees. c) Segment Information The Company has determined that its Chief Executive Officer (“CEO”) is its chief operating decision maker. The Company’s CEO reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. d) Foreign Currency Translation The financial position and results of operations of the Company’s international subsidiaries are measured using the local currency as the functional currency. Revenue and expenses have been translated into U.S. dollars at average exchange rates prevailing during the periods. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of stockholders’ equity (accumulated other comprehensive loss), unless there is a sale or complete liquidation of the underlying foreign investments, or the adjustment is inconsequential. e) Fair Value of Financial Instruments Fair value is defined as the price that would be received from the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. The Company utilizes a fair value hierarchy to classify fair value amounts of the Company’s assets and liabilities recognized or disclosed in the Company’s consolidated financial statements based on the lowest level of input that is significant to the fair value measurement. The levels of the hierarchy are described below: •Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. •Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. •Level 3—Unobservable inputs that are supported by little or no market activity. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions based on the best information available. The Company recognizes transfers into and out of the levels as of the end of each reporting period. Refer to Note 19 for additional information regarding the fair value measurements. f) Liquidity and Capital Resources LiveVox’s consolidated financial statements have been prepared assuming the Company will continue as a going concern for the 12-month period from the date of issuance of the consolidated financial statements, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company’s main sources of liquidity are cash generated by operating cash flows and debt. For the six months ended June 30, 2022 and 2021, the Company’s cash flow used in operating activities was $16.4 million and $9.6 million, respectively. The Company had restricted cash of $0.1 million as of both June 30, 2022 and December 31, 2021, related to the holdback amount for an acquisition the Company made in 2019. The Company’s primary use of cash is for operating and administrative activities including employee-related expenses, and general, operating and overhead expenses. Future capital requirements will depend on many factors, including the Company’s customer growth rate, customer retention, timing and extent of development efforts, the expansion of sales and marketing activities, the introduction of new and enhanced services offerings, the continuing market acceptance of the Company’s services, effective integration of acquisition activities, if any, and maintaining the Company’s bank credit facility. Additionally, the duration and extent of the impact from the current macroeconomic and geopolitical conditions and the COVID-19 pandemic continues to depend on future developments that cannot be accurately predicted at this time, such as supply chain constraints, inflationary pressures and the specific impact of these and other factors on LiveVox’s business, employees, customers and partners. While those factors have caused operational difficulties, and may continue to create challenges for the Company’s performance, they have not, thus far, had a substantial net impact on the Company’s liquidity position. The Company believes it has sufficient financial resources for at least the next 12 months from the date these consolidated financial statements are issued. g) Debt Discount and Issuance Costs The Company’s debt issuance costs and debt discount are recorded as a direct reduction of the carrying amount of the debt liability and are amortized to interest expense over the contractual term of the term loan. h) Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are stated at fair value. The Company considers all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company limits its credit risk associated with the cash and cash equivalents by placing investments with banks it believes are highly creditworthy. The Company has exposure to credit risk to the extent cash balances exceed amounts covered by Federal deposit insurance. At June 30, 2022 and December 31, 2021, the Company had no cash equivalents. Cash consists of bank deposits. Restricted cash consists entirely of amounts held back from stockholders of the Company’s acquired businesses for indemnification of outstanding liabilities. Such amounts are retained temporarily for a period of 4.5 months and then remitted to the applicable stockholders, net of fees paid for indemnification of liabilities. Since restricted cash amounts represent funds held for others, there is also a corresponding liability account. As of June 30, 2022, the Company has identified $0.1 million as restricted cash as management’s intention is to use this cash for the specific purpose of fulfilling the obligations associated with the holdback amount from recent acquisitions. As of December 31, 2021, the Company had $0.1 million in restricted cash. i) Marketable Securities The Company invests in various marketable securities. As of June 30, 2022 and December 31, 2021, the Company designated all of these marketable securities as debt securities and classified them as available-for-sale (“AFS”). No debt securities were classified as held-to-maturity (“HTM”) or trading. The Company determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Debt securities classified as AFS are reported at fair value with unrealized gains and losses, net of income taxes, as a separate component of stockholders’ equity (accumulated other comprehensive loss) in the consolidated balance sheets until the securities are sold or are other-than-temporary impaired (“OTTI”). Debt securities are classified as current or non-current, based on maturities and the Company’s expectations of sales and redemptions in the next 12 months. Gains and losses on sales of debt securities are recorded on the trade date in other income (expense), net, in the consolidated statements of operations and comprehensive loss. The cost of debt securities sold or the amount reclassified out of accumulated other comprehensive loss into earnings is determined using the specific identification method. The Company evaluates the amortized cost of debt securities compared to their fair value to determine whether a debt security is impaired and whether an impaired debt security is OTTI at each reporting period. Factors considered in determining whether an OTTI occurs include the length of time and extent to which fair value has been less than the cost basis, credit quality of the issuer and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. For a debt security deemed to be OTTI, the value of the debt security is reduced, the credit related component of OTTI is recorded in earnings and the noncredit related component is charged to other comprehensive income (loss) in the consolidated statements of operations and comprehensive loss. Please refer to Note 4 for additional information relating to marketable securities. j) Accounts Receivable Trade accounts receivable are stated net of any write-offs and the allowance for doubtful accounts, at the amount the Company expects to collect. The Company performs ongoing credit evaluations of its customers and generally does not require collateral unless a customer has previously defaulted. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: aging of the account receivable, customer creditworthiness, past transaction history with the customer, current economic and industry trends, and changes in customer payment trends. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. At June 30, 2022 and December 31, 2021, the allowance for doubtful accounts was $1.5 million and $1.3 million, respectively. Accounts receivable are charged off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. Recoveries of accounts receivable previously written off are recorded as income when received. The accounts receivable recoveries during the three and six months ended June 30, 2022 and 2021 were immaterial. The bad debt expense recorded for the three and six months ended June 30, 2022 was $0.4 million and $0.4 million, respectively, and for the three and six months ended June 30, 2021 was immaterial. The accounts written off for the three and six months ended June 30, 2022 was $0.4 million and $0.4 million, respectively, and for the three and six months ended June 30, 2021 was immaterial. k) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs, including planned major maintenance activities, are charged to expense as incurred. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from the accounts and any gain or loss is reflected in the consolidated statements of operations and comprehensive loss. Amortization expense on capitalized software is included in depreciation expense. Depreciation of leasehold improvements is recorded over the shorter of the estimated useful life of the leasehold improvement or lease terms that are reasonably assured. Depreciation of property and equipment is provided using the straight-line method based on the following estimated useful lives:
l) Identified Intangible Assets On March 21, 2014, LiveVox, Inc. and subsidiaries were acquired by LiveVox Holdings, Inc. On October 16, 2019, the Company acquired the rights to certain assets of Teckst Inc. On December 16, 2019, the Company acquired the rights to Speech IQ, LLC. On February 5, 2021, the Company completed its asset acquisition of BusinessPhone. The acquisitions resulted in identified marketing-based, technology-based, customer-based, trademark-based, and workforce-based intangible assets. The fair value of the identified assets was determined as of the date of the acquisition by management with the assistance of an independent valuation firm. The identified intangible assets are being amortized using the straight-line method based on the following estimated useful lives:
m) Goodwill Goodwill represents the excess of the purchase price of acquired business over the fair value of the underlying net tangible and intangible assets. The Company performed its annual impairment review of goodwill on October 1 of each year, and when a triggering event occurs between annual impairment tests. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine if it is more likely than not that the fair value of the Company’s single reporting unit is less than its carrying amount, including goodwill, or bypass the qualitative assessment and proceed directly to the quantitative impairment test in accordance with ASC 350-20-35, as amended by Accounting Standards Update (“ASU”) 2017-04, to determine if the fair value of the reporting unit exceeds its carrying amount. If the fair value is determined to be less than the carrying value, an impairment charge is recorded for the amount by which the reporting unit’s carrying amount exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Refer to Note 6 for more information. n) Impairment of Long-Lived Assets Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset and long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value. No impairment loss was recognized during the three and six months ended June 30, 2022 and 2021. o) Amounts Due to Related Parties In the ordinary course of business, the Company has and expects to continue to have transactions with its stockholders and affiliates. Refer to Note 11 for more information. p) Concentration of Risk Concentration of Customer and Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Risks associated with cash and cash equivalents and marketable securities are mitigated using what the Company considers creditworthy institutions. The Company performs ongoing credit evaluations of its customers’ financial condition. Substantially all of the Company’s assets are in the United States. As of June 30, 2022 and December 31, 2021, no single issuer represented more than 10% of the Company’s marketable securities. The Company’s customers are primarily in the receivables management, tele-sales and customer care industries. During the three and six months ended June 30, 2022 and 2021, substantially all the Company’s revenue was generated in the United States. For the three and six months ended June 30, 2022 and 2021, the Company did not have any customers that individually represented 10% or more of the Company’s total revenue or whose accounts receivable balance at June 30, 2022 and December 31, 2021 individually represented 10% or more of the Company’s total accounts receivable. Concentration of Supplier Risk The Company relies on third parties for telecommunication, bandwidth, and co-location services that are included in cost of revenue. As of June 30, 2022, one vendor accounted for approximately 37% of the Company’s total accounts payable. No other single vendor exceeded 10% of the Company’s accounts payable at June 30, 2022. At December 31, 2021, one vendor accounted for approximately 43% of the Company’s total accounts payable. No other single vendor exceeded 10% of the Company’s accounts payable at December 31, 2021. The Company believes there could be a material impact on future operating results should a relationship with an existing significant supplier cease. q) Revenue Recognition The Company recognizes revenue in accordance with U.S. GAAP, pursuant to ASC 606, Revenue from Contracts with Customers. The Company derives substantially all of its revenue by providing cloud-based contact center products under a usage-based model, with prices calculated on a per-call, per-seat, or, more typically, a per-minute basis and contracted minimum usage in accordance with the terms of the underlying agreements. Other immaterial ancillary revenue is derived from call recording, local caller identification packages, performance/speech analytics, text messaging services and professional services billed monthly on primarily usage-based fees and, to a lesser extent, fixed fees. Revenue is recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those services excluding amounts collected on behalf of third parties such as sales taxes, which are collected on behalf of and remitted to governmental authorities based on local tax law. The Company determines revenue recognition through the following steps: a.Identification of the contract, or contracts, with a customer; b.Identification of the performance obligations in the contract; c.Determination of the transaction price; d.Allocation of the transaction price to the performance obligations in the contract; and e.Recognition of revenue when, or as, the performance obligations are satisfied. The Company enters into contracts that can include various combinations of services, each of which are distinct and accounted for as separate performance obligations. The Company’s cloud-based contact center solutions typically include a promise to provide continuous access to its hosted technology platform solutions through one of its data centers. Arrangements with customers do not provide the customer with the right to take possession of the Company’s software platform at any time. LiveVox’s performance obligations are satisfied over time as the customer simultaneously receives and consumes the benefits and the Company performs its services. The Company’s contracts typically range from to year agreements with payment terms of net 10-60 days. As the services provided by the Company are generally billed monthly there is not a significant financing component in the Company’s arrangements. The Company’s arrangements typically include monthly minimum usage commitments and specify the rate at which the customer must pay for actual usage above the monthly minimum. Additional usage in excess of contractual minimum commitments is deemed to be specific to the month that the usage occurs, since the minimum usage commitments reset at the beginning of each month. The Company has determined these arrangements meet the variable consideration allocation exception and therefore, it recognizes contractual monthly commitments and any overages as revenue in the month they are earned. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may receive credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company records reductions to revenue for these estimated customer credits at the time the related revenue is recognized. These customer credits are estimated based on current and historical customer trends, and communications with its customers. Such customer credits have not been significant to date. For contracts with multiple performance obligations, the Company allocates the contract price to each performance obligation based on its relative standalone selling price (“SSP”). The Company generally determines SSP based on the prices charged to customers. In instances where SSP is not directly observable, such as when the Company does not sell the service separately, the SSP is determined using information that generally includes market conditions or other observable inputs. Professional services for configuration, system integration, optimization or education are billed on a fixed-price or time and material basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue, which represents approximately 1% of revenue, is recognized over time as the services are rendered. Deferred revenue represents billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual or multi-year minimum usage agreements not yet provided as of the balance sheet date. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as deferred revenue, current in the consolidated balance sheets, with the remainder recorded as deferred revenue, net of current in the Company’s consolidated balance sheets. r) Costs to Obtain Customer Contracts (Deferred Sales Commissions) Sales commissions are paid for initial contracts and expansions of existing customer contracts. Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which the Company has estimated to be five years. The Company determined the period of benefit by taking into consideration the length of the Company’s customer contracts, the customer attrition rate, the life of the technology provided and other factors. Amortization expense is recorded in sales and marketing expense within the Company’s consolidated statements of operations and comprehensive loss. Amortization expense for the three months ended June 30, 2022 and 2021 was $0.8 million and $0.4 million, respectively, and for the six months ended June 30, 2022 and 2021 was approximately $1.5 million and $0.8 million, respectively. No impairment loss was recognized during the three and six months ended June 30, 2022 and 2021. s) Advertising The Company expenses non-direct response advertising costs as they are incurred. There were no advertising costs capitalized during the three and six months ended June 30, 2022 and 2021. Advertising expense for the three months ended June 30, 2022 and 2021 was $1.1 million and $0.1 million, respectively, and for the six months ended June 30, 2022 and 2021 was $1.7 million and $0.2 million, respectively. Advertising expense is included under sales and marketing expense in the accompanying consolidated statements of operations and comprehensive loss. t) Research and Development Costs Research and development costs not related to the development of internal use software are charged to operations as incurred. Research and development expenses primarily include payroll and employee benefits, consulting services, travel, and software and support costs. u) Software Development Costs The Company capitalizes costs of materials, consultants, payroll, and payroll-related costs of employees incurred in developing internal-use software after certain capitalization criteria are met and includes these costs in the computer software. Refer to Note 5 for additional information. Software development costs are expensed as incurred until preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. To date, all software development costs have been charged to research and development expense in the accompanying consolidated statements of operations and comprehensive loss. There were no capitalized software development costs related to internal-use software during the three and six months ended June 30, 2022 and 2021. v) Income Taxes Deferred Taxes The Company accounts for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recognized for the future tax consequences arising from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will be paid or refunds received, as provided for under currently enacted tax law. A valuation allowance is provided for deferred tax assets that, based on available evidence, are not expected to be realized. Enactment of the Tax Cuts and Jobs Act in 2017 subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. Under U.S. GAAP, an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year of the GILTI inclusion (i.e., as a period expense). The Company has elected to recognize the tax on GILTI as a period expense in the period of inclusion. As such, no deferred taxes are recorded on the Company’s temporary differences that might reverse as GILTI in future years. Uncertain Tax Positions The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained in a court of last resort. 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 does not believe its consolidated financial statements include any uncertain tax positions. It is the Company’s policy to recognize interest and penalties accrued on any unrecognized tax benefit as a component of income tax expense. w) Stock-Based Compensation The Company measures compensation expense for stock awards granted to employees and nonemployees in accordance with ASC 718, Compensation—Stock Compensation. Stock-based compensation is measured at fair value on grant date. The Company estimates the grant date fair value of Restricted Stock Units (“RSUs”) awards under the Company’s 2021 Equity Incentive Plan (the “2021 Plan”) by using the closing price of the Company’s Class A common stock on Nasdaq on the measurement date. The Company estimates the grant date fair value of Performance-based Restricted Stock Units (“PSUs”) awards under the Company’s 2021 Plan and management incentive units (“MIUs”) under the Management Incentive Unit program established by LiveVox TopCo in 2019, using the Monte Carlo simulation. Monte Carlo simulation is a widely accepted approach for financial instruments with path dependencies. The Company classified MIUs, RSUs and PSUs as equity awards at the grant date, and reassesses the liability versus equity treatment on a quarterly basis for any changes that have occurred during the period that may result in a reclassification. Equity-classified awards are recognized as stock-based compensation expense over an employee’s requisite service period or a nonemployee’s vesting period on the basis of the grant date fair value. Generally, the Company issues stock awards with service-based and/or market-based vesting conditions. For awards with only service-based vesting conditions (e.g., MIUs and RSUs), the Company records stock-based compensation expense using the straight-line method. For awards with market-based vesting conditions (e.g., PSUs), the Company recognizes stock-based compensation expense on a tranche-by-tranche basis (i.e., the accelerated attribution method). For awards issued to nonemployees, the Company recognizes stock-based compensation expense as the goods are received or services are performed. The Company elects to account for forfeitures as they occur, rather than making estimates of future forfeitures. Payment of the underlying shares in connection with the vesting of employee RSUs generally triggers a tax obligation for the employee, which is required to be remitted to the relevant tax authorities. The 2021 Plan permits the following tax withholding methods: •Net-share-settlement method—The Company withholds otherwise deliverable RSU shares having a fair value at the vest date equal to the maximum statutory withholding tax amount and remits the remaining RSU shares to the employee recipients. During the six months ended June 30, 2022, the Company withheld 204,749 shares to cover employee recipients’ withholding tax obligations. Any cash received and paid to meet an employees’ statutory withholding tax requirement is reflected as a financing activity within the consolidated statements of cash flows. •Sell-to-cover method—The broker sells on behalf of employee recipients RSU shares having a fair value at the vest date equal to the maximum statutory withholding tax amount and remits the cash proceeds from such sales to the Company. The net impact of any cash received and paid to meet an employees’ statutory withholding tax requirement is reflected as an operating activity within the consolidated statements of cash flows. Nonemployee directors acting in their role as members of a board of directors are treated as employees if (a) those directors were elected by the Company’s shareholders and (b) the awards granted to nonemployee directors are for their services as directors but not for other services. While a nonemployee director may be considered an employee under ASC 718, he or she is considered a nonemployee under the IRS statutory withholding requirements. As a result, no share was withheld or sold to cover withholding taxes for an award issued to a nonemployee director. Independent consultants are nonemployees under the IRS statutory withholding requirements. As a result, no share was withheld or sold to cover withholding taxes for an award issued to a nonemployee. Please see Note 15 for further detail about stock-based compensation expenses related to MIUs under the Management Incentive Unit program, and RSUs and PSUs under the 2021 Plan. x) Acquisitions The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs which would meet the definition of a business. Significant judgment is required in the application of the screen test to determine whether an acquisition is a business combination or an acquisition of assets. y) Public and Forward Purchase Warrants Prior to the Merger, Crescent issued 7,000,000 private placement warrants (“Private Warrants”) and 12,499,995 public warrants (“Public Warrants”) at the close of Crescent’s initial public offering (“IPO”) on March 7, 2019. As an incentive for LiveVox to enter into the Merger Agreement, pursuant to the Sponsor Support Agreement dated January 13, 2021, Crescent’s sponsor agreed to the cancellation of all of the Private Warrants prior to the Closing Date. In addition, 833,333 Forward Purchase Warrants (“Forward Purchase Warrants”) were issued pursuant to the Forward Purchase Agreement dated January 13, 2021 between Crescent and Old LiveVox. The 12,499,995 Public Warrants and the 833,333 Forward Purchase Warrants (collectively, the “Warrants”) remain outstanding after the Merger. Each whole Warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustments. The Warrants are exercisable at any time prior to June 18, 2026. See Note 12 for further information on stock warrants. Upon consummation of the Merger, the Company concluded that (a) the Public Warrants meet the derivative scope exception for contracts in the Company’s own stock and are recorded in stockholders’ equity and (b) the Forward Purchase Warrants do not meet the derivative scope exception and are accounted for as derivative liabilities. Specifically, the Forward Purchase Warrants contain provisions that cause the settlement amounts to be dependent upon the characteristics of the holder of the Warrant which is not an input into the pricing of a fixed-for-fixed option on equity shares. Therefore, the Forward Purchase Warrants are not considered indexed to the Company’s stock and should be classified as a liability. Since the Forward Purchase Warrants meet the definition of a derivative, the Company recorded the Forward Purchase Warrants as liabilities on the consolidated balance sheets at fair value upon the Merger, with an offsetting entry to additional paid-in capital. The gain or loss resulting from decrease or increase in the fair value of the Forward Purchase Warrants in the subsequent periods are recognized in the consolidated statements of operations and comprehensive loss. The fair value of the Forward Purchase Warrants was measured using the Black-Scholes option-pricing model at each measurement date. See Note 19 for further information on fair value. z) Recently Adopted Accounting Pronouncements As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act until such time the Company is no longer considered to be an EGC. The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2022. aa) Recently Issued Accounting Pronouncements ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which clarifies that receivables arising from operating leases are not within the scope of Topic 326, Financial Instruments—Credit Losses. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In April 2019, the FASB issued ASU No. 2019- 04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies treatment of certain credit losses. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief, which permits an entity, upon adoption of ASU 2016-13, to irrevocably elect the fair value option (on an instrument-by-instrument basis) for eligible financial assets measured at amortized cost basis. In November 2019, FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), which changes the effective dates for Topic 326 to give implementation relief to certain types of entities. In November 2019, the FASB issued ASU No. 2019- 11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which includes various narrow-scope improvements and clarifications. In March 2020, the FASB issued ASU No. 2020- 03, Codification Improvements to Financial Instruments, which clarifies and improves certain financial instruments guidance. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, for annual reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. The guidance is to be adopted on a modified retrospective basis. The Company is currently evaluating the impact this pronouncement will have on its consolidated financial statements and plans to adopt this standard effective January 1, 2023. ASU No. 2019-12, Income Taxes (Topic 740) In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as hybrid tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of legal entities not subject to tax, intraperiod tax allocation exception to incremental approach, ownership changes in investments, interim-period accounting for enacted changes in tax law, year-to-date loss limitation in interim-period tax accounting, income statement presentation of tax benefits of tax-deductible dividends and impairment of investment in qualified affordable housing projects accounted for under the equity method. The guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the guidance is effective for annual reporting periods beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The guidance has various elements and different transition methods (retrospective, modified-retrospective, or prospective) which are applied based on the nature of the elements. The Company is currently evaluating the impact this pronouncement will have on its consolidated financial statements and will adopt this standard on December 31, 2022. ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments and contracts on an entity’s own equity, including removing certain conditions for equity classification, and amending certain guidance on the computation of EPS for contracts on an entity’s own equity. The guidance is effective for public business entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, the guidance is effective for annual reporting periods beginning after December 15, 2023, and interim periods within fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Company is currently evaluating the impact this pronouncement will have on its consolidated financial statements and plans to adopt this standard effective January 1, 2024.
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Revenue |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Contract Balance The following table provides information about accounts receivable, net, and contract liabilities from contracts with customers. The Company did not have any contract assets as of June 30, 2022 or December 31, 2021 (dollars in thousands):
Changes in the contract liabilities balances are as follows (dollars in thousands):
The decrease in deferred revenue was due to billings in advance of performance obligations being satisfied, net of revenue recognized for services rendered during the period. Revenue of $0.4 million and $0.9 million was recognized during the three and six months ended June 30, 2022, respectively, which were included in the deferred revenue balance at the beginning of the period. Revenue of $0.4 million and $1.0 million was recognized during the three and six months ended June 30, 2021, respectively, which was included in the deferred revenue balance at the beginning of the period. Remaining Performance Obligations Remaining performance obligations represent the contracted minimum usage commitments and do not include an estimate of additional usage in excess of contractual minimum commitments. The Company’s contract terms typically range from to four years. Revenue as of June 30, 2022 that has not yet been recognized was approximately $164.5 million, of which $86.7 million and $77.8 million is expected to be recognized as revenue within one year and beyond one year, respectively. As of June 30, 2022, the Company expects to recognize revenue on the remaining performance obligations over the next 60 months.
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Marketable Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | Marketable Securities As of June 30, 2022 and December 31, 2021, the Company designated all marketable securities as debt securities and classified them as AFS. There were no transfers of debt securities between AFS, HTM and trading categories during the three and six months ended June 30, 2022 and 2021. The following table presents the amortized cost, gross unrealized gains and losses, and fair value of the Company’s debt securities at June 30, 2022 aggregated by major security type (dollars in thousands):
The following table presents the amortized cost, gross unrealized gains and losses, and fair value of the Company’s debt securities at December 31, 2021 aggregated by major security type (dollars in thousands):
The following table presents the amortized cost and fair value of the Company’s debt securities by contractual maturities at June 30, 2022 (dollars in thousands):
Refer to Note 19 for additional information regarding the fair value measurements of the Company’s marketable securities. Proceeds from sales of debt securities and the associated gains and losses realized in earnings during the three and six months ended June 30, 2022 and 2021 are listed below (dollars in thousands):
The Company has reviewed 82 individual debt securities in unrealized loss positions at June 30, 2022 to determine whether a decline in fair value below the amortized cost is other than temporary. The Company does not intend to sell these debt securities and it is not more likely than not that the Company will be required to sell these debt securities before recovery of their amortized cost bases. The Company then assessed whether the entire amortized cost bases of these debt securities will be recovered. As the present value of future cash flows discounted using the effective interest rate at the date these debt securities were acquired was equal to or greater than the amortized cost basis of these debt securities, the Company did not consider any debt securities to be impaired at June 30, 2022. The following table presents the fair value and unrealized losses of the Company’s debt securities that are in unrealized loss positions and for which an OTTI has not been recognized in earnings at June 30, 2022 (dollars in thousands):
At December 31, 2021, the Company has determined that the unrealized losses were temporary in nature and did not consider any debt securities to be OTTI. The following table presents the fair value and unrealized losses of the Company’s debt securities that are in an unrealized loss position and for which an OTTI has not been recognized in earnings at December 31, 2021 (dollars in thousands):
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment consisted of the following at June 30, 2022 and December 31, 2021 (dollars in thousands):
Depreciation and amortization expense for property and equipment totaled $0.3 million and $0.5 million for the three months ended June 30, 2022 and 2021, respectively, and totaled $0.6 million and $1.0 million for the six months ended June 30, 2022 and 2021, respectively. Amortization of computer software charged to operations for the three months ended June 30, 2022 and 2021 was immaterial for both periods, and is included in depreciation expense. Amortization of computer software charged to operations for the six months ended June 30, 2022 and 2021 was $0.1 million and $0.1 million, respectively.
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Goodwill and Identified Intangible Assets |
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Goodwill and Identified Intangible Assets | Goodwill and Identified Intangible Assets Goodwill Goodwill was recorded as a result of the acquisition of the Company in 2014 by funds affiliated with Golden Gate Capital and the acquisitions made by the Company in 2019 of Teckst Inc. and SpeechIQ LLC. Subsequent to the annual impairment test completed during the fourth quarter of 2021, the Company believes there have been no triggering events that would require an impairment review of goodwill outside of the required annual impairment review. No impairment charges were recorded during the three and six months ended June 30, 2022 and 2021. There were no changes in the carrying amount of goodwill during the six months ended June 30, 2022 or the year ended December 31, 2021. Identified Intangible Assets Intangible assets were acquired in connection with the acquisition of the Company in March 2014 by Golden Gate Capital, and the Company’s acquisition of Teckst Inc., SpeechIQ LLC and BusinessPhone in October 2019, December 2019, and February 2021, respectively. Amortization expense related to the Company’s identified intangible assets was $0.8 million and $1.1 million for the three months ended June 30, 2022 and 2021, respectively, and $1.9 million and $2.2 million for the six months ended June 30, 2022 and 2021, respectively. On the face of the consolidated statements of operations and comprehensive loss the amortization of technology-based intangible assets is included within cost of revenue, the amortization of marketing-based and customer-based intangible assets are included within sales and marketing expense, and the amortization of the acquired workforce is included within cost of revenue and research and development expense. Identified intangible assets consisted of the following at June 30, 2022 (dollars in thousands):
Identified intangible assets consisted of the following at December 31, 2021 (dollars in thousands):
Future amortization of identified intangible assets at June 30, 2022 is shown below (dollars in thousands):
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Accrued Expenses |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following at June 30, 2022 and December 31, 2021 (dollars in thousands):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company accounts for operating leases and finance leases in accordance with U.S. GAAP, pursuant to ASC 842, Leases. The Company has leases for offices, data centers and other computer and networking equipment that expire at various dates through 2027. The Company’s leases have remaining terms of to six years, and some of the leases include a Company option to extend the leases. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company has elected the practical expedient on not separating lease components from non-lease components for right-of-use assets. The components of lease expenses were as follows (dollars in thousands):
Supplemental cash flow information related to leases was as follows (dollars in thousands):
Supplemental balance sheet information related to leases was as follows (dollars in thousands):
Weighted average remaining terms were as follows:
Weighted average discount rates were as follows:
Maturities of lease liabilities were as follows (dollars in thousands):
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Leases | Leases The Company accounts for operating leases and finance leases in accordance with U.S. GAAP, pursuant to ASC 842, Leases. The Company has leases for offices, data centers and other computer and networking equipment that expire at various dates through 2027. The Company’s leases have remaining terms of to six years, and some of the leases include a Company option to extend the leases. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company has elected the practical expedient on not separating lease components from non-lease components for right-of-use assets. The components of lease expenses were as follows (dollars in thousands):
Supplemental cash flow information related to leases was as follows (dollars in thousands):
Supplemental balance sheet information related to leases was as follows (dollars in thousands):
Weighted average remaining terms were as follows:
Weighted average discount rates were as follows:
Maturities of lease liabilities were as follows (dollars in thousands):
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Borrowings Under Term Loan and Line of Credit |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings Under Term Loan and Line of Credit | Borrowings Under Term Loan and Line of Credit At June 30, 2022 and December 31, 2021, term loan borrowings were as follows (dollars in thousands):
The Company entered into a term loan and revolving credit facility with PNC Bank on November 7, 2016 (as amended, the “Credit Facility”), which has been amended several times, more recently as of August 2, 2021. The Credit Facility provides for a $57.6 million term loan, a $5.0 million line of credit and a $1.5 million letter of credit sub-facility. The term loan is due December 31, 2025. Term loan repayments made by the Company totaled $0.1 million and $0.4 million during the three months ended June 30, 2022 and 2021, respectively, and $0.3 million and $0.7 million during the six months ended June 30, 2022 and 2021, respectively. The Company accounts for previously deferred original issue discount and loan fees in the amount of $0.3 million related to the original Credit Facility dated November 7, 2016, first amendment to the Credit Facility dated February 28, 2018, and third amendment to Credit Facility dated December 16, 2019, and the additional original issue discount in the amount of $0.2 million related to the seventh amendment to Credit Facility dated August 2, 2021 by amortizing and recording to interest expense over the remaining term of the amended Credit Facility using the effective interest method. Third party loan fees totaling $0.1 million associated with the $13.9 million increase of the term loan related to the third amendment to Credit Facility are expensed upon close of the loan. Total unamortized loan costs associated with the term loan totaled $0.4 million and $0.4 million at June 30, 2022 and December 31, 2021, respectively and are recorded within term loan, net of current. The Company was in compliance with all debt covenants at June 30, 2022 and December 31, 2021 and was in compliance with all debt covenants as of the date of issuance of these consolidated financial statements. There was no unused borrowing capacity under the term loan portion of the Credit Facility at June 30, 2022 or December 31, 2021. There were no amounts outstanding under the revolving portion of the Credit Facility as of June 30, 2022 or December 31, 2021. Aggregate principal maturities of the term loan as of June 30, 2022 was as follows (dollars in thousands):
The net carrying amount of the liability component of the term loan was as follows (dollars in thousands):
On November 8, 2016, the Company established an irrevocable letter of credit in the amount of $0.3 million using a sub-facility under the Credit Facility, to serve as a security deposit for the Company’s San Francisco office. The letter of credit automatically extends for -year periods from the expiration date, September 10, 2017, unless written notice is presented to the beneficiary at least 60 days prior to the expiration date. During 2017, the Company expanded its San Francisco office with lease terms that required an additional $0.1 million deposit. On April 26, 2017, the Company’s irrevocable letter of credit was amended, increasing the total amount to $0.5 million and providing for decreases in the letter of credit as specified in the lease, in the amount of $0.1 million on each of the following dates: February 1, 2019, February 3, 2020, February 1, 2021 and February 1, 2022. All other terms and conditions remained the same. On February 11, 2022, the Company established an irrevocable standby letter of credit in the amount of $0.3 million using a sub-facility under the Credit Facility, to serve as a guarantee in connection with the buildout of the office that LiveVox Colombia SAS leases in Medellin, Colombia. The standby letter of credit expires one year from the issuance date.
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Letters of Credit |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Letters of Credit | Borrowings Under Term Loan and Line of Credit At June 30, 2022 and December 31, 2021, term loan borrowings were as follows (dollars in thousands):
The Company entered into a term loan and revolving credit facility with PNC Bank on November 7, 2016 (as amended, the “Credit Facility”), which has been amended several times, more recently as of August 2, 2021. The Credit Facility provides for a $57.6 million term loan, a $5.0 million line of credit and a $1.5 million letter of credit sub-facility. The term loan is due December 31, 2025. Term loan repayments made by the Company totaled $0.1 million and $0.4 million during the three months ended June 30, 2022 and 2021, respectively, and $0.3 million and $0.7 million during the six months ended June 30, 2022 and 2021, respectively. The Company accounts for previously deferred original issue discount and loan fees in the amount of $0.3 million related to the original Credit Facility dated November 7, 2016, first amendment to the Credit Facility dated February 28, 2018, and third amendment to Credit Facility dated December 16, 2019, and the additional original issue discount in the amount of $0.2 million related to the seventh amendment to Credit Facility dated August 2, 2021 by amortizing and recording to interest expense over the remaining term of the amended Credit Facility using the effective interest method. Third party loan fees totaling $0.1 million associated with the $13.9 million increase of the term loan related to the third amendment to Credit Facility are expensed upon close of the loan. Total unamortized loan costs associated with the term loan totaled $0.4 million and $0.4 million at June 30, 2022 and December 31, 2021, respectively and are recorded within term loan, net of current. The Company was in compliance with all debt covenants at June 30, 2022 and December 31, 2021 and was in compliance with all debt covenants as of the date of issuance of these consolidated financial statements. There was no unused borrowing capacity under the term loan portion of the Credit Facility at June 30, 2022 or December 31, 2021. There were no amounts outstanding under the revolving portion of the Credit Facility as of June 30, 2022 or December 31, 2021. Aggregate principal maturities of the term loan as of June 30, 2022 was as follows (dollars in thousands):
The net carrying amount of the liability component of the term loan was as follows (dollars in thousands):
On November 8, 2016, the Company established an irrevocable letter of credit in the amount of $0.3 million using a sub-facility under the Credit Facility, to serve as a security deposit for the Company’s San Francisco office. The letter of credit automatically extends for -year periods from the expiration date, September 10, 2017, unless written notice is presented to the beneficiary at least 60 days prior to the expiration date. During 2017, the Company expanded its San Francisco office with lease terms that required an additional $0.1 million deposit. On April 26, 2017, the Company’s irrevocable letter of credit was amended, increasing the total amount to $0.5 million and providing for decreases in the letter of credit as specified in the lease, in the amount of $0.1 million on each of the following dates: February 1, 2019, February 3, 2020, February 1, 2021 and February 1, 2022. All other terms and conditions remained the same. On February 11, 2022, the Company established an irrevocable standby letter of credit in the amount of $0.3 million using a sub-facility under the Credit Facility, to serve as a guarantee in connection with the buildout of the office that LiveVox Colombia SAS leases in Medellin, Colombia. The standby letter of credit expires one year from the issuance date.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company pays monthly board of director fees plus reimbursement of expenses incurred on behalf of the Company to members of the Company’s board of directors. During the three and six months ended June 30, 2022, board of director fees totaled $0.2 million and $0.4 million, respectively, and expense reimbursements were immaterial during both periods. The Company also granted RSUs to directors on August 18, 2021 under the 2021 Plan. During the three and six months ended June 30, 2022, stock-based compensation expense relating to the RSU awards to the board of directors totaled $0.2 million and $0.3 million, respectively. As of June 30, 2022, the unpaid balance of board of director fees due to related parties was immaterial. During the three and six months ended June 30, 2021, board of director fees totaled $0.1 million and $0.2 million, respectively, and there were no expense reimbursements during either period. In connection with the Merger consummated on June 18, 2021, the VCIP awards granted to the board of directors were liquidated, which resulted in $4.3 million expenses related to the board of directors during the three and six months ended June 30, 2021. As of December 31, 2021, the unpaid balance of board of director fees due to related parties was immaterial. Prior to the closing of the Merger on June 18, 2021, Old LiveVox paid quarterly management fees plus reimbursement of expenses incurred on behalf of Old LiveVox to funds affiliated with Golden Gate Capital, its majority shareholder pre-Merger. During the three and six months ended June 30, 2021, the Company obtained a refund of management fees totaled $0.1 million and $0, respectively, and expense reimbursements were immaterial for both periods. The payment of management fees and reimbursement of expenses to funds affiliated with Golden Gate Capital has been discontinued since the Merger. There were no management fees or expense reimbursements during the three and six months ended June 30, 2022, and no unpaid balance as of June 30, 2022 or December 31, 2021. There were no related party accounts receivable as of June 30, 2022 or December 31, 2021.
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Stock Warrants |
6 Months Ended |
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Jun. 30, 2022 | |
Equity [Abstract] | |
Stock Warrants | Stock Warrants Public and Forward Purchase Warrants Immediately following the Merger, LiveVox assumed 833,333 Forward Purchase Warrants and 12,499,995 Public Warrants that had been previously issued by Crescent. Each whole Warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustments. The Company may redeem the outstanding Public Warrants, in whole and not in part, upon a minimum of 30 days’ prior written notice of redemption (“Redemption Period”). For purposes of the redemption, “Redemption Price” shall mean the last reported sales price of the Company’s common stock for any twenty trading days within the trading-day period ending on the third trading day prior to the date on which notice of the redemption is given. The Company may redeem the outstanding Public Warrants for cash at a price of $0.01 per Warrant if the Reference Value equals or exceeds $18.00 per share. The warrant holders have the right to exercise their outstanding Warrants prior to the scheduled redemption date during the Redemption Period at $11.50 per share. If the Company calls the Public Warrants for redemption, the Company will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis”, as described in the warrant agreement. The Forward Purchase Warrants and the shares of Class A common stock issuable upon the exercise of the Forward Purchase Warrants are transferable, assignable and salable, subject to certain limited exceptions. Additionally, the Forward Purchase Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Forward Purchase Warrants are held by someone other than the initial purchasers or their permitted transferees then such Warrants will be redeemable by the Company and exercisable by the warrant holders on the same basis as the Public Warrants. As of June 30, 2022, there were 13,333,328 Warrants outstanding, and no Warrants have been exercised. Stockholders’ EquityCommon Stock On June 22, 2021, the Company’s Class A common stock, publicly traded warrants and publicly traded units began trading on Nasdaq under the ticker symbols “LVOX”, “LVOXW” and “LVOXU,” respectively. Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue 500,000,000 shares of Class A common stock with a par value of $0.0001 per share. As of June 30, 2022, the Company had 91,547,358 shares of Class A common stock issued and outstanding (99,091,108 shares of common stock, less 7,543,750 of which are held in an escrow account to be released only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021 (the “Escrowed Shares”)). As of December 31, 2021, 500,000,000 shares of Class A common stock were authorized, and 90,696,977 shares were issued and outstanding (98,240,727 shares of common stock, less 7,543,750 Escrowed Shares). The accumulated other comprehensive loss and accumulated deficit are included in stockholders’ equity. At June 30, 2022 and December 31, 2021, the accumulated other comprehensive loss totaled $1.9 million and $0.5 million, respectively. The Company’s accumulated deficit totaled $151.8 million and $128.0 million at June 30, 2022 and December 31, 2021, respectively. Preferred Stock Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue 25,000,000 shares of preferred stock having a par value of $0.0001 per share. As of June 30, 2022, no shares of LiveVox preferred stock were issued and outstanding. As of December 31, 2021, 25,000,000 shares of preferred stock were authorized, and no shares of preferred stock were issued and outstanding.
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Stockholders' Equity |
6 Months Ended |
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Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stock Warrants Public and Forward Purchase Warrants Immediately following the Merger, LiveVox assumed 833,333 Forward Purchase Warrants and 12,499,995 Public Warrants that had been previously issued by Crescent. Each whole Warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustments. The Company may redeem the outstanding Public Warrants, in whole and not in part, upon a minimum of 30 days’ prior written notice of redemption (“Redemption Period”). For purposes of the redemption, “Redemption Price” shall mean the last reported sales price of the Company’s common stock for any twenty trading days within the trading-day period ending on the third trading day prior to the date on which notice of the redemption is given. The Company may redeem the outstanding Public Warrants for cash at a price of $0.01 per Warrant if the Reference Value equals or exceeds $18.00 per share. The warrant holders have the right to exercise their outstanding Warrants prior to the scheduled redemption date during the Redemption Period at $11.50 per share. If the Company calls the Public Warrants for redemption, the Company will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis”, as described in the warrant agreement. The Forward Purchase Warrants and the shares of Class A common stock issuable upon the exercise of the Forward Purchase Warrants are transferable, assignable and salable, subject to certain limited exceptions. Additionally, the Forward Purchase Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Forward Purchase Warrants are held by someone other than the initial purchasers or their permitted transferees then such Warrants will be redeemable by the Company and exercisable by the warrant holders on the same basis as the Public Warrants. As of June 30, 2022, there were 13,333,328 Warrants outstanding, and no Warrants have been exercised. Stockholders’ EquityCommon Stock On June 22, 2021, the Company’s Class A common stock, publicly traded warrants and publicly traded units began trading on Nasdaq under the ticker symbols “LVOX”, “LVOXW” and “LVOXU,” respectively. Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue 500,000,000 shares of Class A common stock with a par value of $0.0001 per share. As of June 30, 2022, the Company had 91,547,358 shares of Class A common stock issued and outstanding (99,091,108 shares of common stock, less 7,543,750 of which are held in an escrow account to be released only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the seven-year period beginning June 18, 2021 (the “Escrowed Shares”)). As of December 31, 2021, 500,000,000 shares of Class A common stock were authorized, and 90,696,977 shares were issued and outstanding (98,240,727 shares of common stock, less 7,543,750 Escrowed Shares). The accumulated other comprehensive loss and accumulated deficit are included in stockholders’ equity. At June 30, 2022 and December 31, 2021, the accumulated other comprehensive loss totaled $1.9 million and $0.5 million, respectively. The Company’s accumulated deficit totaled $151.8 million and $128.0 million at June 30, 2022 and December 31, 2021, respectively. Preferred Stock Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue 25,000,000 shares of preferred stock having a par value of $0.0001 per share. As of June 30, 2022, no shares of LiveVox preferred stock were issued and outstanding. As of December 31, 2021, 25,000,000 shares of preferred stock were authorized, and no shares of preferred stock were issued and outstanding.
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Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) | Analysis of the Changes in Accumulated Other Comprehensive Income (Loss)Accumulated other comprehensive income (loss) in the Company’s consolidated balance sheets includes foreign currency translation items associated with the Company’s foreign operations, and unrealized gain or loss on the Company’s marketable securities available for sale. Following is an analysis of the changes in accumulated other comprehensive loss, net of applicable taxes, at June 30, 2022 and 2021 (dollars in thousands):
Components of other comprehensive income (loss) and related taxes for the three and six months ended June 30, 2022 and 2021 are as follows (dollars in thousands):
The amount of net realized loss on sale of marketable securities that has been previously included as net unrealized loss in other comprehensive income (loss) and then reclassified out of other comprehensive income (loss) into earnings during the three and six months ended June 30, 2022 is immaterial. There was no reclassification during the three and six months ended June 30, 2021.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Management Incentive Units During 2019, LiveVox TopCo established a Management Incentive Unit program whereby the LiveVox TopCo board of directors has the power and discretion to approve the issuance of Class B Units of LiveVox TopCo that represent MIUs to any manager, director, employee, officer or consultant of the Company or its subsidiaries. Vesting begins on the date of issuance, and the MIUs vest ratably over five years with 20% of the MIUs vesting on each anniversary of a specified vesting commencement date, subject to the grantee’s continued employment with the Company on the applicable vesting date. Vesting of the MIUs will accelerate upon consummation of a “sale of the company”, which is defined by the LiveVox TopCo limited liability company agreement. The Company records stock-based compensation expense for the issued and outstanding MIUs based on the service condition on a straight-line basis over the requisite service period of five years, reduced for actual forfeited MIUs. Stock-based compensation expense for MIUs is measured based on the grant date fair value of the award estimated by using a Monte Carlo simulation. The weighted average assumptions (weighted by relative grant date fair value) used in the Monte Carlo simulation to value MIUs during the periods presented are as follows:
MIU activities for the six months ended June 30, 2022 are summarized as follows (in thousands, except for per share data):
(1) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. 2021 Equity Incentive Plan On June 16, 2021, the stockholders of the Company approved the 2021 Plan, which became effective upon the closing of the Merger on June 18, 2021. As of June 30, 2022, the number of shares reserved for issuance is 14,682,036. The Company grants RSUs and PSUs to employees, executives, directors, and eligible consultants of the Company. On May 05, 2022, the Company corrected the terms of the PSUs granted to two executives with a grant date of February 11, 2022, to provide that the upper tranche of the volume-weighted average price per share (the “VWAP”) hurdle be increased from $17.00 to $17.50 with all other terms unchanged. The increase of the upper tranche of VWAP hurdle would not change the fair value of the applicable executives’ PSUs on the modification date or result in incremental compensation cost to recognize, but increased the requisite service period of the modified PSUs. The Company elects to recognize (a) the unrecognized compensation expense remaining from the original grant-date valuation over the remainder of the original requisite service period and (b) the incremental compensation expense over the additional service period. As discussed above, the incremental compensation expense associated with the modification is zero. Therefore, the compensation expense for the modified PSUs is recognized over the remainder of the original requisite service period. Restricted Stock Units RSUs are subject to service conditions only. Stock-based compensation expense for RSUs issued to employees is recognized on a straight-line basis over the vesting period for the entire award, reduced for actual forfeited RSUs. Stock-based compensation expense for RSUs issued to nonemployees is recognized as the goods are received or services are performed. The amount of compensation cost recognized at any date must at least equal the portion of the grant-date value of the award that is vested at that date. The fair value of the RSUs is estimated by using the closing price of the Company’s Class A common stock on Nasdaq on the measurement date. As of June 30, 2022, all RSUs granted to employees and nonemployees are classified as equity. Employee RSU activities for the six months ended June 30, 2022 are summarized as follows (in thousands, except for per share data):
(1) Represents awards granted to employees, executives and directors of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. The aggregate fair value of employee RSUs outstanding as of June 30, 2022, based on the fair value at the reporting period end, was $9.5 million. The aggregate fair value of employee RSUs vested during the six months ended June 30, 2022, based on the fair value on the vest date, was $1.6 million. Nonemployee RSU activities for the six months ended June 30, 2022 are summarized as follows (in thousands, except for per share data):
(1) Represents awards granted to eligible consultants of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. The aggregate fair value of nonemployee RSUs outstanding as of June 30, 2022, based on the fair value at the reporting period end, was immaterial. The aggregate fair value of nonemployee RSUs vested during the six months ended June 30, 2022, based on the fair value on the vest date, was immaterial. Performance-Based Restricted Stock Units PSUs vest either based on the achievement of predetermined market conditions or based on both service and market conditions. The Company recognizes stock-based compensation expense for PSUs on a tranche-by-tranche basis (i.e., the accelerated attribution method) over an employee’s requisite service period, which is the longer of the time-vesting period or the derived service period inferred from the valuation model. As of June 30, 2022, all PSUs granted to employees are classified as equity, and stock-based compensation expense of equity-classified PSUs is recognized provided that the good is delivered or the service is rendered, regardless of when, if ever, the market conditions are satisfied. The Company estimates the fair value of the PSUs at each measurement date by using a Monte Carlo simulation. The weighted average assumptions (weighted by relative grant date fair value) used in the Monte Carlo simulation to value PSUs granted during the periods presented are as follows:
PSU activities for the six months ended June 30, 2022 are summarized as follows (in thousands, except for per share data):
(1) Represents awards granted to employees and executives of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. The aggregate fair value of PSUs outstanding as of June 30, 2022, based on the fair value at the reporting period end, was $2.9 million. None of the PSUs vested during the six months ended June 30, 2022. Stock-Based Compensation Expense The following tables present the Company’s stock-based compensation expense by financial statement line item and by award type for the three and six months ended June 30, 2022 and 2021 (dollars in thousands):
There were no income tax benefits recognized for the three and six months ended June 30, 2022, related to tax deductions from RSU awards vested. Due to the Company’s net operating loss, the related tax deductions result in deferred tax assets that are fully offset with a valuation allowance. None of the RSUs vested during the three and six months ended June 30, 2021, and therefore there were no income tax benefits recognized during those periods. As of June 30, 2022, unrecognized stock-based compensation expense related to nonvested awards by award type and their expected weighted-average recognition periods are summarized in the following table (dollars in thousands):
(1) The weighted-average recognition period is calculated as the sum of the weighted remaining period to recognize expense for nonvested awards divided by the sum of the shares that are expected to vest for all awards that have not vested or expired by the end of the reporting period. For awards for which the straight-line method is used for expense recognition, the remaining recognition period is the amount of time between the end of the reporting period and the end of the entire award. For awards for which the accelerated attribution method is used for expense recognition, the remaining recognition period is the amount of time between the end of the reporting period and the end of each separately vesting portion of the award.
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Geographic Information |
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Geographic Information | Geographic InformationDisaggregation of Revenue The following table disaggregates the Company’s revenue by geographic area for the three and six months ended June 30, 2022 and 2021 (dollars in thousands):
In addition, 99.5% of the Company’s revenue is denominated in U.S. dollars and 0.5% is denominated in foreign currencies. Property and Equipment The following table summarizes total property and equipment, net in the respective locations at June 30, 2022 and December 31, 2021 (dollars in thousands):
The geographical location of the Company’s customers affects the nature, amount, timing and uncertainty of revenue and cash flows due to the potential for unfavorable and uncertain regulatory, political, economic and tax conditions. These uncertainties can impact the amount of revenue recognized through price adjustments and uncertainty of cash flows that may arise due to local regulations.
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Income Taxes |
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Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific discrete events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon several significant estimates and judgments, including the estimated annual pre-tax income of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The provision for (benefit from) income taxes was $(0.2) million and $0.1 million for the three months ended June 30, 2022 and 2021, respectively, and $0.3 million and $0.1 million for the six months ended June 30, 2022 and 2021, respectively. The benefit from or provision for income taxes for the three and six months ended June 30, 2022 and 2021 consisted primarily of foreign and state income taxes. The effective tax rates were 2.21% and (0.07)% for the three months ended June 30, 2022 and 2021, respectively, and (1.38)% and (0.11)% for the six months ended June 30, 2022 and 2021, respectively. The change in the effective tax rate for the six months ended June 30, 2022, relative to 2021, was primarily attributable to an increase in foreign taxes and certain nondeductible expense. The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, India and Colombia. The tax returns are subject to statutes of limitations that vary by jurisdiction. At June 30, 2022, the Company remains subject to U.S. and certain state income tax examinations for tax years 2018 through 2021, and in certain other states for tax years 2017 through 2021. However, due to the Company’s net operating loss carryforwards in various jurisdictions, tax authorities have the ability to adjust carryforwards related to closed years.
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Retirement Benefit Plan |
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Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plan | Retirement Benefit PlanThe Company amended its existing | plan (the “Plan”) effective on July 1, 2018. The amended Plan covers eligible employees immediately upon employment with the Company. Participants may contribute up to a maximum percentage of their annual compensation to the Plan as determined by the Company limited to the maximum annual amount set by the Internal Revenue Service. The Plan provides for traditional tax-deferred and Roth 401(k) contribution options. Prior to the Plan amendment, the Company did not provide a matching contribution. The Company began matching fifty percent of the employee contribution up to a maximum of $200 per pay period, limited to $4,800 annually, upon adoption of the Plan. One hundred percent of the employer match vests immediately. The Company made matching contributions totaling $0.3 million and $0.3 million during the three months ended June 30, 2022 and 2021, respectively, and $0.7 million and $0.5 million during the six months ended June 30, 2022 and 2021, respectively.
Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | Fair Value Measurement The following table sets forth the fair value of the Company’s assets and liabilities at June 30, 2022 (dollars in thousands):
The following table sets forth the fair value of the Company’s assets and liabilities at December 31, 2021 (dollars in thousands):
Level 1 and Level 2 of the Fair Value Hierarchy As of June 30, 2022 and December 31, 2021, the carrying amounts of the Company’s cash, cash equivalents and restricted cash approximate their fair values due to their short maturities and have been classified as Level 1 of the fair value hierarchy. The fair value of the term loan and finance lease obligations approximates their carrying value. The fair value is determined based on observable inputs on the price of the term loan in the market and has been classified as Level 2 of the fair value hierarchy. The fair value of the Company’s AFS debt securities is determined based on valuations provided by external investment managers who obtain them from a variety of industry standard data providers and has been classified as Level 2 of the fair value hierarchy. Refer to Note 4 for additional information regarding the fair value of the Company’s marketable securities. Level 3 of the Fair Value Hierarchy The Company’s liability related to the Forward Purchase Warrants is measured at fair value on a recurring basis and is classified as Level 3 within the fair value hierarchy. There were no other assets or liabilities measured at fair value on a recurring basis at June 30, 2022 or December 31, 2021. Warrant liability—Forward Purchase Warrants As discussed in Note 2(y), 833,333 Forward Purchase Warrants were issued pursuant to the Forward Purchase Agreement dated January 13, 2021 between Crescent and Old LiveVox. Upon consummation of the Merger, the Company concluded that the Forward Purchase Warrants do not meet the derivative scope exception and are accounted for as derivative liabilities. The Forward Purchase Warrants are classified as Level 3 fair value measurement. The Company employed a Black-Scholes option pricing model specific to the contractual terms of the Forward Purchase Warrants to determine their fair value at each reporting period, with changes in fair value recognized in the consolidated statements of operations and comprehensive loss. Inherent in the options pricing model are assumptions related to current stock price, exercise price, expected share price volatility, expected life, risk-free interest rate and dividend yield. The stock price is based on the closing price of the Company’s Class A common stock on Nasdaq as of the valuation date. The exercise price is based on the terms of the warrant agreement. The volatility input is estimated using the implied volatility of the Public Warrants and the volatility of the Company’s peer companies. The expected life of the Forward Purchase Warrants is based on the time from valuation date to the contractual expiration date. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of issuance for zero-coupon U.S. Treasury notes with maturities corresponding to the expected -year term. The dividend rate is based on the historical rate, which the Company anticipates to remain at zero. Future change in these assumptions could result in a material change to the fair value of the Forward Purchase Warrants, and such changes will be recorded in the consolidated statements of operations and comprehensive loss. The following table provides quantitative information regarding assumptions used in the Black Scholes option-pricing model to determine the fair value of the Forward Purchase Warrants:
Changes in the Level 3 Fair Value Measurement The changes in fair value of the Level 3 liabilities are as follows (dollars in thousands):
During the three and six months ended June 30, 2022, the gain recognized due to decrease in the fair value of warrant liability was $0.1 million and $0.5 million, respectively, and was recorded within other income (expense), net in the consolidated statements of operations and comprehensive loss. During the three and six months ended June 30, 2021, the gain recognized due to decrease in the fair value of warrant liability was $0.4 million for both periods.
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Basic and Diluted Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Loss Per Share | Basic and Diluted Loss Per Share As discussed in Note 2(a), the shares and corresponding capital amounts and earnings per share available for common stockholders, prior to the Merger, have been retroactively restated as shares reflecting the exchange ratio established in the Merger. As a result of the Merger, the Company has retrospectively adjusted the weighted-average number of shares of common stock outstanding prior to June 18, 2021 by multiplying them by the exchange ratio of 66,637 used to determine the number of shares of Class A common stock into which they converted. Basic net loss per share is calculated by dividing net loss by the weighted average number of shares of Class A common stock outstanding during the period, including vested stock-based payment awards and excluding any unvested stock-based payment awards and shares withheld to cover employees’ withholding taxes upon vesting of stock-based payment awards. Diluted net loss per share is computed giving effect to all potentially dilutive shares of Class A common stock, including Class A common stock issuable upon vesting of stock-based payment awards and contingent earnout shares. Basic and diluted loss per share was the same for each period presented as the inclusion of all potential Class A common stock outstanding would have been antidilutive. The computation of loss per share and weighted average shares of the Company’s common stock outstanding for the three and six months ended June 30, 2022 and 2021 are as follows (in thousands, except per share data):
The following outstanding common stock equivalents were either considered antidilutive or were contingently issuable upon the resolution of their contingencies, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (in thousands):
(1) As additional consideration payable to the LiveVox Stockholder, the Company issued 5,000,000 shares of Class A common stock (the “Earn-Out Shares”) held in an escrow account to be released only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the -year period beginning June 18, 2021. No contingent consideration shares were issued or released during the three and six months ended June 30, 2022. (2) Represents 2,543,750 shares of converted Class A common stock held by the SPAC sponsor and certain independent directors (the “Lock-Up Shares”) immediately following the closing, which were placed in an escrow account to be subject to release only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the -year period beginning June 18, 2021. No contingent consideration shares were issued or released during the three and six months ended June 30, 2022. (3) Represents 1,643,750 shares of Class A common stock (the “Finders Agreement Shares”) to be issued only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the -year period beginning June 18, 2021, pursuant to the terms of the Finders Agreement. No contingent consideration shares were issued during the three and six months ended June 30, 2022.
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Commitment and Contingencies |
6 Months Ended |
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Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As of June 30, 2022 and December 31, 2021, $55.2 million and $55.5 million of the term loan principal was outstanding, respectively. The term loan is due December 31, 2025. See Note 9 for more information. Contingencies The Company is subject to the possibility of various gain or loss contingencies arising in the ordinary course of business that will ultimately be resolved depending on future events. The Company considers the likelihood of loss or impairment of an asset, or the incurrence of a liability, as well as the ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the consolidated financial statements, and the amount or range of loss can be reasonably estimated. Legal costs are expensed as incurred. Gain contingencies are not recognized until they are realized or realizable. Indemnification Agreements The Company has entered into indemnification agreements with its directors, officers and certain employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. As of June 30, 2022 and December 31, 2021, there were no claims that the Company is aware of that could have a material effect on its consolidated balance sheets, consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows. Litigation and Claims From time to time and in the ordinary course of business, the Company may be subject to various claims, charges, investigations, and litigation. The Company is engaged in two collection actions against former customers who defaulted in their contractual obligations. One of those customers has filed counterclaims against LiveVox, also alleging breach of contract. LiveVox is vigorously defending against these counterclaims, which it believes to be without merit, while pursuing its own claims in these matters. In addition, the Company was served with a complaint by another former customer for claims associated with their purchase of the LiveVox platform. LiveVox believes the claims asserted against it in this matter to be without merit, and has filed a demurrer in this action. The Company does not expect that any of these cases will have a material adverse effect on its business operations or financial position. As of the date of issuance of these consolidated financial statements, a potential loss as a result of the aforementioned cases is neither probable nor estimable.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the consolidated financial statements were issued. Other than as described below, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the consolidated financial statements. Finders Agreement Shares On July 19, 2022, pursuant to Finders Agreement made and entered into as of January 13, 2021, by and among the Company and Neuberger Berman BD LLC (“Neuberger”), the Company issued 781,250 shares of Class A common stock to Neuberger as consideration for the performance by Neuberger of its obligations under the Finders Agreement. RSU Grants On August 5, 2022, pursuant to the Company’s 2021 Plan, the Compensation Committee of the Company approved the grant of 2,025,464 RSU awards to employees, executives, directors and eligible consultants, and authorized the CEO to approve the grant of 132,750 RSUs to employees. Each RSU had a grant date fair value of $2.02. The total stock-based compensation expense of $4.4 million shall be amortized on a straight-line basis over the vesting period (i.e., approximately 45 months to 48 months for employees’, executives’ and eligible consultants’ RSUs and approximately 10 months for directors’ RSUs) into cost of revenue and operating expenses within the consolidated statements of operations and comprehensive loss.
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations or if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the SEC on March 11, 2022. The information as of December 31, 2021 included in the consolidated balance sheets was derived from those audited consolidated financial statements. Pursuant to Accounting Standards Codification (“ASC”) 805, Business Combinations, the Merger completed on June 18, 2021 was accounted for as a reverse recapitalization, rather than a business combination, for financial accounting and reporting purposes. Accordingly, Old LiveVox was deemed the accounting acquirer (and legal acquiree) and Crescent was treated as the accounting acquiree (and legal acquirer). Under this method of accounting, the reverse recapitalization was treated as the equivalent of Old LiveVox issuing stock for the net assets of Crescent, accompanied by a recapitalization. The net assets of Crescent are stated at historical cost, with no goodwill or other intangible assets recorded. The consolidated assets, liabilities and results of operations prior to the Merger are those of Old LiveVox. The shares and corresponding capital amounts and earnings per share available for common stockholders in the accompanying consolidated financial statements and these related notes, prior to the Merger, have been retroactively restated as shares reflecting the exchange ratio established in the Merger Agreement. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. All intercompany transactions and balances have been eliminated in consolidation. Results of operations for the three and six months ended June 30, 2022 and 2021 are not necessarily indicative of the results to be expected for the full annual periods.
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Use of Estimates | Use of EstimatesThe preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and such differences could be material to the Company’s consolidated financial position and results of operations, requiring adjustment to these balances in future periods. Significant items subject to such estimates and assumptions include, but are not limited to, the determination of the useful lives of long-lived assets, period of benefit of deferred sales commissions, allowances for doubtful accounts, fair value of marketable securities, fair value of goodwill and long-lived assets, fair value of incentive awards, fair value of warrants, establishing standalone selling price, valuation of deferred tax assets, income tax uncertainties and other contingencies, including the Company’s ability to exercise its right to repurchase incentive options from terminated employees. |
Segment Information | Segment InformationThe Company has determined that its Chief Executive Officer (“CEO”) is its chief operating decision maker. The Company’s CEO reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment. |
Foreign Currency Translation | Foreign Currency TranslationThe financial position and results of operations of the Company’s international subsidiaries are measured using the local currency as the functional currency. Revenue and expenses have been translated into U.S. dollars at average exchange rates prevailing during the periods. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of stockholders’ equity (accumulated other comprehensive loss), unless there is a sale or complete liquidation of the underlying foreign investments, or the adjustment is inconsequential. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received from the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. The Company utilizes a fair value hierarchy to classify fair value amounts of the Company’s assets and liabilities recognized or disclosed in the Company’s consolidated financial statements based on the lowest level of input that is significant to the fair value measurement. The levels of the hierarchy are described below: •Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. •Level 2—Includes other inputs that are directly or indirectly observable in the marketplace. •Level 3—Unobservable inputs that are supported by little or no market activity. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions based on the best information available. The Company recognizes transfers into and out of the levels as of the end of each reporting period. Refer to Note 19 for additional information regarding the fair value measurements.
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Liquidity and Capital Resources | Liquidity and Capital ResourcesLiveVox’s consolidated financial statements have been prepared assuming the Company will continue as a going concern for the 12-month period from the date of issuance of the consolidated financial statements, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.The Company believes it has sufficient financial resources for at least the next 12 months from the date these consolidated financial statements are issued. |
Debt Discount and Issuance Costs | Debt Discount and Issuance CostsThe Company’s debt issuance costs and debt discount are recorded as a direct reduction of the carrying amount of the debt liability and are amortized to interest expense over the contractual term of the term loan. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashCash and cash equivalents are stated at fair value. The Company considers all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company limits its credit risk associated with the cash and cash equivalents by placing investments with banks it believes are highly creditworthy. The Company has exposure to credit risk to the extent cash balances exceed amounts covered by Federal deposit insurance. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Restricted cash consists entirely of amounts held back from stockholders of the Company’s acquired businesses for indemnification of outstanding liabilities. Such amounts are retained temporarily for a period of 4.5 months and then remitted to the applicable stockholders, net of fees paid for indemnification of liabilities. Since restricted cash amounts represent funds held for others, there is also a corresponding liability account. |
Marketable Securities | Marketable Securities The Company invests in various marketable securities. As of June 30, 2022 and December 31, 2021, the Company designated all of these marketable securities as debt securities and classified them as available-for-sale (“AFS”). No debt securities were classified as held-to-maturity (“HTM”) or trading. The Company determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Debt securities classified as AFS are reported at fair value with unrealized gains and losses, net of income taxes, as a separate component of stockholders’ equity (accumulated other comprehensive loss) in the consolidated balance sheets until the securities are sold or are other-than-temporary impaired (“OTTI”). Debt securities are classified as current or non-current, based on maturities and the Company’s expectations of sales and redemptions in the next 12 months. Gains and losses on sales of debt securities are recorded on the trade date in other income (expense), net, in the consolidated statements of operations and comprehensive loss. The cost of debt securities sold or the amount reclassified out of accumulated other comprehensive loss into earnings is determined using the specific identification method. The Company evaluates the amortized cost of debt securities compared to their fair value to determine whether a debt security is impaired and whether an impaired debt security is OTTI at each reporting period. Factors considered in determining whether an OTTI occurs include the length of time and extent to which fair value has been less than the cost basis, credit quality of the issuer and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. For a debt security deemed to be OTTI, the value of the debt security is reduced, the credit related component of OTTI is recorded in earnings and the noncredit related component is charged to other comprehensive income (loss) in the consolidated statements of operations and comprehensive loss.
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Accounts Receivable | Accounts ReceivableTrade accounts receivable are stated net of any write-offs and the allowance for doubtful accounts, at the amount the Company expects to collect. The Company performs ongoing credit evaluations of its customers and generally does not require collateral unless a customer has previously defaulted. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: aging of the account receivable, customer creditworthiness, past transaction history with the customer, current economic and industry trends, and changes in customer payment trends. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required.Accounts receivable are charged off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. Recoveries of accounts receivable previously written off are recorded as income when received. |
Property and Equipment | Property and EquipmentProperty and equipment are stated at cost less accumulated depreciation. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs, including planned major maintenance activities, are charged to expense as incurred. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from the accounts and any gain or loss is reflected in the consolidated statements of operations and comprehensive loss. Amortization expense on capitalized software is included in depreciation expense. Depreciation of leasehold improvements is recorded over the shorter of the estimated useful life of the leasehold improvement or lease terms that are reasonably assured. |
Identified Intangible Assets | Identified Intangible AssetsOn March 21, 2014, LiveVox, Inc. and subsidiaries were acquired by LiveVox Holdings, Inc. On October 16, 2019, the Company acquired the rights to certain assets of Teckst Inc. On December 16, 2019, the Company acquired the rights to Speech IQ, LLC. On February 5, 2021, the Company completed its asset acquisition of BusinessPhone. The acquisitions resulted in identified marketing-based, technology-based, customer-based, trademark-based, and workforce-based intangible assets. The fair value of the identified assets was determined as of the date of the acquisition by management with the assistance of an independent valuation firm. |
Goodwill | GoodwillGoodwill represents the excess of the purchase price of acquired business over the fair value of the underlying net tangible and intangible assets. The Company performed its annual impairment review of goodwill on October 1 of each year, and when a triggering event occurs between annual impairment tests. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine if it is more likely than not that the fair value of the Company’s single reporting unit is less than its carrying amount, including goodwill, or bypass the qualitative assessment and proceed directly to the quantitative impairment test in accordance with ASC 350-20-35, as amended by Accounting Standards Update (“ASU”) 2017-04, to determine if the fair value of the reporting unit exceeds its carrying amount. If the fair value is determined to be less than the carrying value, an impairment charge is recorded for the amount by which the reporting unit’s carrying amount exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsLong-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset and long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value. |
Amounts Due to Related Parties | Amounts Due to Related PartiesIn the ordinary course of business, the Company has and expects to continue to have transactions with its stockholders and affiliates. Refer to Note 11 for more information. |
Concentration of Risk | Concentration of Risk Concentration of Customer and Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Risks associated with cash and cash equivalents and marketable securities are mitigated using what the Company considers creditworthy institutions. The Company performs ongoing credit evaluations of its customers’ financial condition. Substantially all of the Company’s assets are in the United States. As of June 30, 2022 and December 31, 2021, no single issuer represented more than 10% of the Company’s marketable securities. The Company’s customers are primarily in the receivables management, tele-sales and customer care industries. During the three and six months ended June 30, 2022 and 2021, substantially all the Company’s revenue was generated in the United States. For the three and six months ended June 30, 2022 and 2021, the Company did not have any customers that individually represented 10% or more of the Company’s total revenue or whose accounts receivable balance at June 30, 2022 and December 31, 2021 individually represented 10% or more of the Company’s total accounts receivable. Concentration of Supplier Risk The Company relies on third parties for telecommunication, bandwidth, and co-location services that are included in cost of revenue.
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Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with U.S. GAAP, pursuant to ASC 606, Revenue from Contracts with Customers. The Company derives substantially all of its revenue by providing cloud-based contact center products under a usage-based model, with prices calculated on a per-call, per-seat, or, more typically, a per-minute basis and contracted minimum usage in accordance with the terms of the underlying agreements. Other immaterial ancillary revenue is derived from call recording, local caller identification packages, performance/speech analytics, text messaging services and professional services billed monthly on primarily usage-based fees and, to a lesser extent, fixed fees. Revenue is recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those services excluding amounts collected on behalf of third parties such as sales taxes, which are collected on behalf of and remitted to governmental authorities based on local tax law. The Company determines revenue recognition through the following steps: a.Identification of the contract, or contracts, with a customer; b.Identification of the performance obligations in the contract; c.Determination of the transaction price; d.Allocation of the transaction price to the performance obligations in the contract; and e.Recognition of revenue when, or as, the performance obligations are satisfied. The Company enters into contracts that can include various combinations of services, each of which are distinct and accounted for as separate performance obligations. The Company’s cloud-based contact center solutions typically include a promise to provide continuous access to its hosted technology platform solutions through one of its data centers. Arrangements with customers do not provide the customer with the right to take possession of the Company’s software platform at any time. LiveVox’s performance obligations are satisfied over time as the customer simultaneously receives and consumes the benefits and the Company performs its services. The Company’s contracts typically range from to year agreements with payment terms of net 10-60 days. As the services provided by the Company are generally billed monthly there is not a significant financing component in the Company’s arrangements. The Company’s arrangements typically include monthly minimum usage commitments and specify the rate at which the customer must pay for actual usage above the monthly minimum. Additional usage in excess of contractual minimum commitments is deemed to be specific to the month that the usage occurs, since the minimum usage commitments reset at the beginning of each month. The Company has determined these arrangements meet the variable consideration allocation exception and therefore, it recognizes contractual monthly commitments and any overages as revenue in the month they are earned. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may receive credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company records reductions to revenue for these estimated customer credits at the time the related revenue is recognized. These customer credits are estimated based on current and historical customer trends, and communications with its customers. Such customer credits have not been significant to date. For contracts with multiple performance obligations, the Company allocates the contract price to each performance obligation based on its relative standalone selling price (“SSP”). The Company generally determines SSP based on the prices charged to customers. In instances where SSP is not directly observable, such as when the Company does not sell the service separately, the SSP is determined using information that generally includes market conditions or other observable inputs. Professional services for configuration, system integration, optimization or education are billed on a fixed-price or time and material basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue, which represents approximately 1% of revenue, is recognized over time as the services are rendered. Deferred revenue represents billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual or multi-year minimum usage agreements not yet provided as of the balance sheet date. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as deferred revenue, current in the consolidated balance sheets, with the remainder recorded as deferred revenue, net of current in the Company’s consolidated balance sheets.
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Costs to Obtain Customer Contracts (Deferred Sales Commissions) | Costs to Obtain Customer Contracts (Deferred Sales Commissions)Sales commissions are paid for initial contracts and expansions of existing customer contracts. Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which the Company has estimated to be five years. The Company determined the period of benefit by taking into consideration the length of the Company’s customer contracts, the customer attrition rate, the life of the technology provided and other factors. Amortization expense is recorded in sales and marketing expense within the Company’s consolidated statements of operations and comprehensive loss. |
Advertising | AdvertisingThe Company expenses non-direct response advertising costs as they are incurred. |
Research and Development Costs | Research and Development CostsResearch and development costs not related to the development of internal use software are charged to operations as incurred. Research and development expenses primarily include payroll and employee benefits, consulting services, travel, and software and support costs. |
Software Development Costs | Software Development CostsThe Company capitalizes costs of materials, consultants, payroll, and payroll-related costs of employees incurred in developing internal-use software after certain capitalization criteria are met and includes these costs in the computer software. Refer to Note 5 for additional information. Software development costs are expensed as incurred until preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. To date, all software development costs have been charged to research and development expense in the accompanying consolidated statements of operations and comprehensive loss. |
Income Taxes | Income Taxes Deferred Taxes The Company accounts for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recognized for the future tax consequences arising from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will be paid or refunds received, as provided for under currently enacted tax law. A valuation allowance is provided for deferred tax assets that, based on available evidence, are not expected to be realized. Enactment of the Tax Cuts and Jobs Act in 2017 subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. Under U.S. GAAP, an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year of the GILTI inclusion (i.e., as a period expense). The Company has elected to recognize the tax on GILTI as a period expense in the period of inclusion. As such, no deferred taxes are recorded on the Company’s temporary differences that might reverse as GILTI in future years. Uncertain Tax Positions The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained in a court of last resort. 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 does not believe its consolidated financial statements include any uncertain tax positions. It is the Company’s policy to recognize interest and penalties accrued on any unrecognized tax benefit as a component of income tax expense.
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Stock-Based Compensation | Stock-Based Compensation The Company measures compensation expense for stock awards granted to employees and nonemployees in accordance with ASC 718, Compensation—Stock Compensation. Stock-based compensation is measured at fair value on grant date. The Company estimates the grant date fair value of Restricted Stock Units (“RSUs”) awards under the Company’s 2021 Equity Incentive Plan (the “2021 Plan”) by using the closing price of the Company’s Class A common stock on Nasdaq on the measurement date. The Company estimates the grant date fair value of Performance-based Restricted Stock Units (“PSUs”) awards under the Company’s 2021 Plan and management incentive units (“MIUs”) under the Management Incentive Unit program established by LiveVox TopCo in 2019, using the Monte Carlo simulation. Monte Carlo simulation is a widely accepted approach for financial instruments with path dependencies. The Company classified MIUs, RSUs and PSUs as equity awards at the grant date, and reassesses the liability versus equity treatment on a quarterly basis for any changes that have occurred during the period that may result in a reclassification. Equity-classified awards are recognized as stock-based compensation expense over an employee’s requisite service period or a nonemployee’s vesting period on the basis of the grant date fair value. Generally, the Company issues stock awards with service-based and/or market-based vesting conditions. For awards with only service-based vesting conditions (e.g., MIUs and RSUs), the Company records stock-based compensation expense using the straight-line method. For awards with market-based vesting conditions (e.g., PSUs), the Company recognizes stock-based compensation expense on a tranche-by-tranche basis (i.e., the accelerated attribution method). For awards issued to nonemployees, the Company recognizes stock-based compensation expense as the goods are received or services are performed. The Company elects to account for forfeitures as they occur, rather than making estimates of future forfeitures. Payment of the underlying shares in connection with the vesting of employee RSUs generally triggers a tax obligation for the employee, which is required to be remitted to the relevant tax authorities. The 2021 Plan permits the following tax withholding methods: •Net-share-settlement method—The Company withholds otherwise deliverable RSU shares having a fair value at the vest date equal to the maximum statutory withholding tax amount and remits the remaining RSU shares to the employee recipients. During the six months ended June 30, 2022, the Company withheld 204,749 shares to cover employee recipients’ withholding tax obligations. Any cash received and paid to meet an employees’ statutory withholding tax requirement is reflected as a financing activity within the consolidated statements of cash flows. •Sell-to-cover method—The broker sells on behalf of employee recipients RSU shares having a fair value at the vest date equal to the maximum statutory withholding tax amount and remits the cash proceeds from such sales to the Company. The net impact of any cash received and paid to meet an employees’ statutory withholding tax requirement is reflected as an operating activity within the consolidated statements of cash flows. Nonemployee directors acting in their role as members of a board of directors are treated as employees if (a) those directors were elected by the Company’s shareholders and (b) the awards granted to nonemployee directors are for their services as directors but not for other services. While a nonemployee director may be considered an employee under ASC 718, he or she is considered a nonemployee under the IRS statutory withholding requirements. As a result, no share was withheld or sold to cover withholding taxes for an award issued to a nonemployee director. Independent consultants are nonemployees under the IRS statutory withholding requirements. As a result, no share was withheld or sold to cover withholding taxes for an award issued to a nonemployee.
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Acquisitions | AcquisitionsThe Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs which would meet the definition of a business. Significant judgment is required in the application of the screen test to determine whether an acquisition is a business combination or an acquisition of assets. |
Public and Forward Purchase Warrants | Public and Forward Purchase WarrantsSee Note 12 for further information on stock warrants.Upon consummation of the Merger, the Company concluded that (a) the Public Warrants meet the derivative scope exception for contracts in the Company’s own stock and are recorded in stockholders’ equity and (b) the Forward Purchase Warrants do not meet the derivative scope exception and are accounted for as derivative liabilities. Specifically, the Forward Purchase Warrants contain provisions that cause the settlement amounts to be dependent upon the characteristics of the holder of the Warrant which is not an input into the pricing of a fixed-for-fixed option on equity shares. Therefore, the Forward Purchase Warrants are not considered indexed to the Company’s stock and should be classified as a liability. Since the Forward Purchase Warrants meet the definition of a derivative, the Company recorded the Forward Purchase Warrants as liabilities on the consolidated balance sheets at fair value upon the Merger, with an offsetting entry to additional paid-in capital. The gain or loss resulting from decrease or increase in the fair value of the Forward Purchase Warrants in the subsequent periods are recognized in the consolidated statements of operations and comprehensive loss. The fair value of the Forward Purchase Warrants was measured using the Black-Scholes option-pricing model at each measurement date. See Note 19 for further information on fair value. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act until such time the Company is no longer considered to be an EGC. The Company did not adopt any new accounting pronouncements during the six months ended June 30, 2022. aa) Recently Issued Accounting Pronouncements ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which clarifies that receivables arising from operating leases are not within the scope of Topic 326, Financial Instruments—Credit Losses. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In April 2019, the FASB issued ASU No. 2019- 04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies treatment of certain credit losses. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief, which permits an entity, upon adoption of ASU 2016-13, to irrevocably elect the fair value option (on an instrument-by-instrument basis) for eligible financial assets measured at amortized cost basis. In November 2019, FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), which changes the effective dates for Topic 326 to give implementation relief to certain types of entities. In November 2019, the FASB issued ASU No. 2019- 11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, which includes various narrow-scope improvements and clarifications. In March 2020, the FASB issued ASU No. 2020- 03, Codification Improvements to Financial Instruments, which clarifies and improves certain financial instruments guidance. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, for annual reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. The guidance is to be adopted on a modified retrospective basis. The Company is currently evaluating the impact this pronouncement will have on its consolidated financial statements and plans to adopt this standard effective January 1, 2023. ASU No. 2019-12, Income Taxes (Topic 740) In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as hybrid tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of legal entities not subject to tax, intraperiod tax allocation exception to incremental approach, ownership changes in investments, interim-period accounting for enacted changes in tax law, year-to-date loss limitation in interim-period tax accounting, income statement presentation of tax benefits of tax-deductible dividends and impairment of investment in qualified affordable housing projects accounted for under the equity method. The guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the guidance is effective for annual reporting periods beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The guidance has various elements and different transition methods (retrospective, modified-retrospective, or prospective) which are applied based on the nature of the elements. The Company is currently evaluating the impact this pronouncement will have on its consolidated financial statements and will adopt this standard on December 31, 2022. ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments and contracts on an entity’s own equity, including removing certain conditions for equity classification, and amending certain guidance on the computation of EPS for contracts on an entity’s own equity. The guidance is effective for public business entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, the guidance is effective for annual reporting periods beginning after December 15, 2023, and interim periods within fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Company is currently evaluating the impact this pronouncement will have on its consolidated financial statements and plans to adopt this standard effective January 1, 2024.
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Fair Value Measurement | Level 1 and Level 2 of the Fair Value Hierarchy As of June 30, 2022 and December 31, 2021, the carrying amounts of the Company’s cash, cash equivalents and restricted cash approximate their fair values due to their short maturities and have been classified as Level 1 of the fair value hierarchy. The fair value of the term loan and finance lease obligations approximates their carrying value. The fair value is determined based on observable inputs on the price of the term loan in the market and has been classified as Level 2 of the fair value hierarchy. The fair value of the Company’s AFS debt securities is determined based on valuations provided by external investment managers who obtain them from a variety of industry standard data providers and has been classified as Level 2 of the fair value hierarchy. Refer to Note 4 for additional information regarding the fair value of the Company’s marketable securities. Level 3 of the Fair Value Hierarchy The Company’s liability related to the Forward Purchase Warrants is measured at fair value on a recurring basis and is classified as Level 3 within the fair value hierarchy. There were no other assets or liabilities measured at fair value on a recurring basis at June 30, 2022 or December 31, 2021.
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Summary of Significant Accounting Policies (Tables) |
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Schedule of estimated useful lives of property and equipment | Depreciation of property and equipment is provided using the straight-line method based on the following estimated useful lives:
Property and equipment consisted of the following at June 30, 2022 and December 31, 2021 (dollars in thousands):
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Schedule of estimated useful lives of identified intangible assets | The identified intangible assets are being amortized using the straight-line method based on the following estimated useful lives:
Identified intangible assets consisted of the following at June 30, 2022 (dollars in thousands):
Identified intangible assets consisted of the following at December 31, 2021 (dollars in thousands):
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Revenue (Tables) |
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Schedule of information about accounts receivable, net, and contract liabilities from contracts with customers | The following table provides information about accounts receivable, net, and contract liabilities from contracts with customers. The Company did not have any contract assets as of June 30, 2022 or December 31, 2021 (dollars in thousands):
Changes in the contract liabilities balances are as follows (dollars in thousands):
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Marketable Securities - (Tables) |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment In Debt Securities | The following table presents the amortized cost, gross unrealized gains and losses, and fair value of the Company’s debt securities at June 30, 2022 aggregated by major security type (dollars in thousands):
The following table presents the amortized cost, gross unrealized gains and losses, and fair value of the Company’s debt securities at December 31, 2021 aggregated by major security type (dollars in thousands):
The following table presents the amortized cost and fair value of the Company’s debt securities by contractual maturities at June 30, 2022 (dollars in thousands):
Proceeds from sales of debt securities and the associated gains and losses realized in earnings during the three and six months ended June 30, 2022 and 2021 are listed below (dollars in thousands):
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Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table presents the fair value and unrealized losses of the Company’s debt securities that are in unrealized loss positions and for which an OTTI has not been recognized in earnings at June 30, 2022 (dollars in thousands):
At December 31, 2021, the Company has determined that the unrealized losses were temporary in nature and did not consider any debt securities to be OTTI. The following table presents the fair value and unrealized losses of the Company’s debt securities that are in an unrealized loss position and for which an OTTI has not been recognized in earnings at December 31, 2021 (dollars in thousands):
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Property and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated useful lives of property and equipment | Depreciation of property and equipment is provided using the straight-line method based on the following estimated useful lives:
Property and equipment consisted of the following at June 30, 2022 and December 31, 2021 (dollars in thousands):
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Goodwill and Identified Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated useful lives of identified intangible assets | The identified intangible assets are being amortized using the straight-line method based on the following estimated useful lives:
Identified intangible assets consisted of the following at June 30, 2022 (dollars in thousands):
Identified intangible assets consisted of the following at December 31, 2021 (dollars in thousands):
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Schedule of future amortization of finite-lived intangible assets | Future amortization of identified intangible assets at June 30, 2022 is shown below (dollars in thousands):
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Accrued Expenses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued expenses | Accrued expenses consisted of the following at June 30, 2022 and December 31, 2021 (dollars in thousands):
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of lease cost | The components of lease expenses were as follows (dollars in thousands):
Supplemental cash flow information related to leases was as follows (dollars in thousands):
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Schedule of supplemental balance sheet information | Supplemental balance sheet information related to leases was as follows (dollars in thousands):
Weighted average remaining terms were as follows:
Weighted average discount rates were as follows:
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Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities were as follows (dollars in thousands):
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Finance Lease, Liability, Fiscal Year Maturity | Maturities of lease liabilities were as follows (dollars in thousands):
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Borrowings Under Term Loan and Line of Credit (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt instruments | At June 30, 2022 and December 31, 2021, term loan borrowings were as follows (dollars in thousands):
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Schedule of principal maturities of long-term debt | Aggregate principal maturities of the term loan as of June 30, 2022 was as follows (dollars in thousands):
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Schedule of debt | The net carrying amount of the liability component of the term loan was as follows (dollars in thousands):
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Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive loss | Following is an analysis of the changes in accumulated other comprehensive loss, net of applicable taxes, at June 30, 2022 and 2021 (dollars in thousands):
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Components of other comprehensive income (loss) | Components of other comprehensive income (loss) and related taxes for the three and six months ended June 30, 2022 and 2021 are as follows (dollars in thousands):
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Stock-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation by award | The weighted average assumptions (weighted by relative grant date fair value) used in the Monte Carlo simulation to value MIUs during the periods presented are as follows:
MIU activities for the six months ended June 30, 2022 are summarized as follows (in thousands, except for per share data):
(1) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. Employee RSU activities for the six months ended June 30, 2022 are summarized as follows (in thousands, except for per share data):
(1) Represents awards granted to employees, executives and directors of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. Nonemployee RSU activities for the six months ended June 30, 2022 are summarized as follows (in thousands, except for per share data):
(1) Represents awards granted to eligible consultants of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period. The weighted average assumptions (weighted by relative grant date fair value) used in the Monte Carlo simulation to value PSUs granted during the periods presented are as follows:
PSU activities for the six months ended June 30, 2022 are summarized as follows (in thousands, except for per share data):
(1) Represents awards granted to employees and executives of the Company. (2) The weighted-average remaining contractual term is calculated as the sum of the weighted amount of time between the reporting period end and the vest date divided by the sum of the shares that are outstanding by the end of the reporting period.
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Schedule of stock-based compensation expense | The following tables present the Company’s stock-based compensation expense by financial statement line item and by award type for the three and six months ended June 30, 2022 and 2021 (dollars in thousands):
There were no income tax benefits recognized for the three and six months ended June 30, 2022, related to tax deductions from RSU awards vested. Due to the Company’s net operating loss, the related tax deductions result in deferred tax assets that are fully offset with a valuation allowance. None of the RSUs vested during the three and six months ended June 30, 2021, and therefore there were no income tax benefits recognized during those periods. As of June 30, 2022, unrecognized stock-based compensation expense related to nonvested awards by award type and their expected weighted-average recognition periods are summarized in the following table (dollars in thousands):
(1) The weighted-average recognition period is calculated as the sum of the weighted remaining period to recognize expense for nonvested awards divided by the sum of the shares that are expected to vest for all awards that have not vested or expired by the end of the reporting period. For awards for which the straight-line method is used for expense recognition, the remaining recognition period is the amount of time between the end of the reporting period and the end of the entire award. For awards for which the accelerated attribution method is used for expense recognition, the remaining recognition period is the amount of time between the end of the reporting period and the end of each separately vesting portion of the award.
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Geographic Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of revenue by geographic area | Disaggregation of Revenue The following table disaggregates the Company’s revenue by geographic area for the three and six months ended June 30, 2022 and 2021 (dollars in thousands):
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Schedule of property and equipment, net by location | The following table summarizes total property and equipment, net in the respective locations at June 30, 2022 and December 31, 2021 (dollars in thousands):
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Fair Value Measurement (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of assets and liabilities measured on a non-recurring basis | The following table sets forth the fair value of the Company’s assets and liabilities at June 30, 2022 (dollars in thousands):
The following table sets forth the fair value of the Company’s assets and liabilities at December 31, 2021 (dollars in thousands):
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Schedule of valuation assumptions | The following table provides quantitative information regarding assumptions used in the Black Scholes option-pricing model to determine the fair value of the Forward Purchase Warrants:
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Schedule of changes in fair value of level 3 liabilities | The changes in fair value of the Level 3 liabilities are as follows (dollars in thousands):
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Basic and Diluted Loss Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loss per share | The computation of loss per share and weighted average shares of the Company’s common stock outstanding for the three and six months ended June 30, 2022 and 2021 are as follows (in thousands, except per share data):
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Schedule of antidilutive securities excluded from the computation of earnings per share | The following outstanding common stock equivalents were either considered antidilutive or were contingently issuable upon the resolution of their contingencies, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (in thousands):
(1) As additional consideration payable to the LiveVox Stockholder, the Company issued 5,000,000 shares of Class A common stock (the “Earn-Out Shares”) held in an escrow account to be released only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the -year period beginning June 18, 2021. No contingent consideration shares were issued or released during the three and six months ended June 30, 2022. (2) Represents 2,543,750 shares of converted Class A common stock held by the SPAC sponsor and certain independent directors (the “Lock-Up Shares”) immediately following the closing, which were placed in an escrow account to be subject to release only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the -year period beginning June 18, 2021. No contingent consideration shares were issued or released during the three and six months ended June 30, 2022. (3) Represents 1,643,750 shares of Class A common stock (the “Finders Agreement Shares”) to be issued only if the price of Class A common stock trading on Nasdaq exceeds certain thresholds during the -year period beginning June 18, 2021, pursuant to the terms of the Finders Agreement. No contingent consideration shares were issued during the three and six months ended June 30, 2022.
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Organization (Details) - Subsidiaries |
Jun. 30, 2022
subsidiary
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LiveVox, Inc. | |
Class of Stock [Line Items] | |
Number of operating subsidiaries | 4 |
LiveVox Private Solutions, LTD | LiveVox, Inc. | |
Class of Stock [Line Items] | |
Ownership percentage | 99.99% |
LiveVox Private Solutions, LTD | LiveVox International, Inc. | |
Class of Stock [Line Items] | |
Ownership percentage | 0.01% |
Summary of Significant Accounting Policies - Schedule of property and equipment useful lives (Details) |
6 Months Ended |
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Jun. 30, 2022 | |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Computer software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Website development | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Summary of Significant Accounting Policies - Schedule of finite lived intangible assets useful lives (Details) |
6 Months Ended |
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Jun. 30, 2022 | |
Marketing-based | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 7 years |
Technology-based | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 4 years |
Technology-based | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 10 years |
Customer-based | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 7 years |
Customer-based | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 16 years |
Trademark-based | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 4 years |
Workforce-based | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 10 years |
Revenue - Contract Details (Details) - USD ($) |
Jun. 30, 2022 |
Dec. 31, 2021 |
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract assets | $ 0 | $ 0 |
Accounts receivable, net | 18,524,000 | 20,128,000 |
Deferred revenue, current | 1,142,000 | 1,307,000 |
Deferred revenue, net of current | $ 452,000 | $ 456,000 |
Revenue - Changes in Contract (Details) - USD ($) $ in Thousands |
6 Months Ended | |
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Jun. 30, 2022 |
Jun. 30, 2021 |
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Change in Contract Liabilities Balance [Roll Forward] | ||
Contract liabilities (deferred revenue) March 31, 2022 | $ 1,763 | |
Contract liabilities (deferred revenue) December 31, 2021 | 1,594 | |
Deferred revenue | $ (169) | $ (33) |
Marketable Securities - Maturity of Debt Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
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Amortized Cost | ||
Due in one year or less | $ 14,183 | |
Due after one year through five years | 34,390 | |
Amortized Cost | 48,573 | $ 49,551 |
Fair Value | ||
Due in one year or less | 14,047 | |
Due after one year through five years | 33,173 | |
Fair Value | $ 47,220 | $ 49,374 |
Marketable Securities - Proceeds from Sales of Debt Securities and the Associated Gains and Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Available for sale debt securities: | ||||
Proceeds from sale of marketable securities | $ 1,936 | $ 0 | $ 3,451 | $ 0 |
Gross realized gains | 0 | 0 | 0 | 0 |
Gross realized losses | (33) | 0 | (42) | 0 |
Net realized losses | $ (33) | $ 0 | $ (42) | $ 0 |
Marketable Securities - Narrative (Details) |
Jun. 30, 2022
Positions
|
---|---|
Investments, Debt and Equity Securities [Abstract] | |
Number of positions | 82 |
Goodwill and Identified Intangible Assets - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill impairment charge | $ 0 | $ 0 | $ 0 | $ 0 | |
Change in goodwill | 0 | $ 0 | |||
Amortization of identified intangible assets | $ 800,000 | $ 1,100,000 | $ 1,875,000 | $ 2,244,000 |
Goodwill and Identified Intangible Assets - Schedule of future amortization of finite-lived intangible assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remaining 2022 | $ 1,604 | |
2023 | 3,189 | |
2024 | 2,328 | |
2025 | 2,114 | |
2026 | 2,096 | |
2027 and beyond | 6,989 | |
Carrying Amount | $ 18,320 | $ 20,195 |
Accrued Expenses (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued bonuses | $ 2,694 | $ 3,580 |
Accrued paid time off | 3,022 | 2,802 |
Accrued commissions | 1,262 | 2,748 |
Other accrued expenses | 3,230 | 4,725 |
Total accrued expenses | $ 10,208 | $ 13,855 |
Leases - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term of leases | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term of leases | 6 years |
Leases - Schedule of components of lease expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 555 | $ 548 | $ 1,075 | $ 1,016 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 4 | 114 | 7 | 229 |
Interest on lease liabilities | 1 | 5 | 1 | 12 |
Total finance lease cost | $ 5 | $ 119 | $ 8 | $ 241 |
Leases - Schedule of supplemental cash flow information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash used in operating leases | $ 1,168 | $ 942 |
Financing cash used in finance leases | 14 | 254 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 617 | 3,246 |
Finance leases | $ 0 | $ 0 |
Leases - Schedule of supplemental balance sheet information (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating Leases | ||
Operating lease right-of-use assets | $ 5,221 | $ 5,483 |
Operating lease liabilities: | ||
Operating lease liabilities—current | 1,890 | 1,946 |
Operating lease liabilities—less current portion | 3,729 | 4,046 |
Total operating lease liabilities | 5,619 | 5,992 |
Finance Leases | ||
Property and equipment, gross | 301 | 2,182 |
Less: accumulated depreciation and amortization | (237) | (1,621) |
Property and equipment, net | 64 | 561 |
Finance lease liabilities: | ||
Finance lease liabilities—current | 25 | 26 |
Finance lease liabilities—less current portion | 0 | 11 |
Total finance lease liabilities | $ 25 | $ 37 |
Weighted average remaining lease term | ||
Operating Leases | 3 years 4 months 24 days | 3 years 6 months 29 days |
Finance Leases | 11 months 1 day | 1 year 8 months 1 day |
Weighted average discount rate | ||
Operating Leases | 8.70% | 8.10% |
Finance Leases | 7.50% | 7.50% |
Leases - Schedule of lease liability maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating Leases | ||
Remaining 2022 | $ 1,202 | |
2023 | 1,974 | |
2024 | 1,274 | |
2025 | 1,114 | |
2026 | 481 | |
2027 and beyond | 172 | |
Total lease payments | 6,217 | |
Less: imputed interest | (598) | |
Total | 5,619 | $ 5,992 |
Finance Leases | ||
Remaining 2022 | 14 | |
2023 | 12 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 and beyond | 0 | |
Total lease payments | 26 | |
Less: imputed interest | (1) | |
Total | $ 25 | $ 37 |
Borrowings Under Term Loan and Line of Credit - Schedule of long-term debt balances (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Less: current portion of term loan | $ (701) | $ (561) |
Term Loan | ||
Debt Instrument [Line Items] | ||
Net carrying amount | 54,793 | 55,020 |
Less: current portion of term loan | (701) | (561) |
Long-term term loan obligations | $ 54,092 | $ 54,459 |
Borrowings Under Term Loan and Line of Credit - Schedule of principal maturities of long-term debt (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Long-Term Debt, Fiscal Year Maturity [Abstract] | |
Remaining 2022 | $ 280 |
2023 | 982 |
2024 | 1,753 |
2025 | 52,158 |
Total | $ 55,173 |
Borrowings Under Term Loan and Line of Credit - Schedule of debt instrument carrying amount (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Principal | $ 55,173 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Principal | 55,173 | $ 55,454 |
Less: Unamortized issuance costs | (380) | (434) |
Net carrying amount | $ 54,793 | $ 55,020 |
Letters of Credit (Details) - Letter of Credit - USD ($) |
Nov. 08, 2016 |
Feb. 11, 2022 |
Feb. 01, 2022 |
Feb. 01, 2021 |
Feb. 03, 2020 |
Feb. 01, 2019 |
Dec. 31, 2017 |
Apr. 26, 2017 |
---|---|---|---|---|---|---|---|---|
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 300,000 | $ 300,000 | $ 500,000 | |||||
Automatic extension term | 1 year | |||||||
Number of days prior to expiration date that written notice is required to terminate letter of credit | 60 days | |||||||
Additional deposit required | $ 100,000 | |||||||
Decrease to letter of credit per year | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 | ||||
Line of credit facility, expiration period | 1 year |
Stock Warrants (Details) |
6 Months Ended | ||
---|---|---|---|
Jun. 18, 2021
day
$ / shares
shares
|
Jun. 30, 2022
shares
|
Jan. 13, 2021
$ / shares
shares
|
|
Class of Warrant or Right [Line Items] | |||
Number of common shares called by each warrant (in shares) | 1 | 1 | |
Exercise price (in dollars per share) | $ / shares | $ 11.50 | $ 11.50 | |
Redemption period, prior written notice | 30 days | ||
Trading days used for redemption price | day | 20 | ||
Measurement period used for redemption price | 30 days | ||
Minimum reference value (in dollars per share) | $ / shares | $ 18.00 | ||
Number of warrants outstanding (in shares) | 13,333,328 | ||
Number of warrants exercised (in shares) | 0 | ||
Forward Purchase Warrant | |||
Class of Warrant or Right [Line Items] | |||
Number of warrants assumed (in shares) | 833,333 | ||
Number of warrants outstanding (in shares) | 833,333 | ||
Public Warrant | |||
Class of Warrant or Right [Line Items] | |||
Number of warrants assumed (in shares) | 12,499,995 | ||
Exercise price (in dollars per share) | $ / shares | $ 0.01 | ||
Number of warrants outstanding (in shares) | 12,499,995 |
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares issued (in shares) | 91,547,358 | 90,696,977 |
Common stock, shares outstanding (in shares) | 91,547,358 | 90,696,977 |
Common stock, shares outstanding including shares held in escrow (in shares) | 99,091,108 | 98,240,727 |
Common stock, shares issued including shares held in escrow (in shares) | 99,091,108 | 98,240,727 |
Common stock, shares held in escrow (in shares) | 7,543,750 | 7,543,750 |
Accumulated other comprehensive loss | $ (1,855) | $ (477) |
Accumulated deficit | $ 151,789 | $ 128,022 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before tax | $ (451) | $ (25) | $ (1,359) | $ 14 |
Tax effect | (10) | 0 | 19 | 0 |
Total other comprehensive income (loss), net of tax | (441) | (25) | (1,378) | 14 |
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before tax | (156) | (25) | (199) | 14 |
Tax effect | (3) | 0 | 3 | 0 |
Total other comprehensive income (loss), net of tax | (153) | (25) | (202) | 14 |
Net unrealized loss on marketable securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Before tax | (295) | 0 | (1,160) | 0 |
Tax effect | (7) | 0 | 16 | 0 |
Total other comprehensive income (loss), net of tax | $ (288) | $ 0 | $ (1,176) | $ 0 |
Analysis of the Changes in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Equity [Abstract] | ||||
Reclassification adjustment from AOCI for sale of securities | $ 0 | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - Schedule of weighted average assumptions used to value stock-based compensation awards (Details) - MIUs |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Holding period | 2 years | 2 years |
Volatility | 45.00% | 45.00% |
Discount for lack of marketability | 28.00% | 28.00% |
Risk-free rate | 1.60% | 1.60% |
Stock-Based Compensation - Schedule of MIU activity (Details) - MIUs shares in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
$ / shares
shares
| |
Number of Shares | |
Beginning balance (in shares) | shares | 2,814 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (704) |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 2,110 |
Weighted-average Grant Date Fair Value (per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 0.79 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0.79 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 0.79 |
Weighted-average Remaining Contractual Term | |
Outstanding | 1 year 1 month 17 days |
Stock-Based Compensation - Schedule of PSU Assumptions (Details) - Unvested PSUs - $ / shares |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price (in dollars per share) | $ 4.94 | $ 6.13 |
Measurement period | 30 years | 30 years |
Expected volatility | 47.50% | 47.50% |
Risk-free rate | 2.24% | 1.89% |
Vesting hurdle 1 (in dollars per share) | $ 12.50 | $ 12.50 |
Vesting hurdle 2 (in dollars per share) | 15.00 | 15.00 |
Vesting hurdle 3 (in dollars per share) | $ 17.50 | $ 17.50 |
Stock-Based Compensation - Schedule of PSU activity (Details) - Unvested PSUs - Employee shares in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
$ / shares
shares
| |
Number of Shares | |
Beginning balance (in shares) | shares | 1,612 |
Granted (in shares) | shares | 125 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 1,737 |
Weighted-average Grant Date Fair Value (per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 6.50 |
Granted (in dollars per share) | $ / shares | 4.94 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 6.39 |
Weighted-average Remaining Contractual Term | |
Outstanding | 10 years 5 months 1 day |
Geographic Information - Schedule of revenue by geographic area (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 32,987 | $ 28,913 | $ 65,080 | $ 56,858 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 30,756 | 27,303 | 60,305 | 53,732 |
Americas (excluding United States) | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 936 | 653 | 1,988 | 1,304 |
Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 1,256 | 918 | 2,715 | 1,760 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 39 | $ 39 | $ 72 | $ 62 |
Geographic Information - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Revenue, percentage denominated in domestic currency | 99.50% |
Revenue, percentage denominated in foreign currency | 0.50% |
Geographic Information - Schedule of property and equipment, net by location (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 3,207 | $ 3,010 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 1,680 | 1,989 |
Americas (excluding United States) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 401 | 367 |
Asia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 1,126 | $ 654 |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ (229) | $ 52 | $ 315 | $ 87 |
Effective income tax rate | 2.21% | (0.07%) | (1.38%) | (0.11%) |
Retirement Benefit Plan (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 01, 2018 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Retirement Benefits [Abstract] | |||||
Defined benefit plan, type [Extensible Enumeration] | Other Postretirement Benefits Plan [Member] | ||||
Employer matching contribution, percent of match | 50.00% | ||||
Maximum contribution per employee per pay period | $ 200 | ||||
Maximum annual contributions per employee | $ 4,800 | ||||
Employer matching contribution, vesting percentage | 100.00% | ||||
Contributions | $ 300,000 | $ 300,000 | $ 700,000 | $ 500,000 |
Fair Value Measurement - Schedule of fair value assumptions (Details) |
Jun. 30, 2022
$ / shares
year
|
Dec. 31, 2021
year
$ / shares
|
---|---|---|
Stock price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 1.66 | 5.15 |
Exercise price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 11.50 | 11.50 |
Contractual term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | year | 4 | 4.5 |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.8000 | 0.4750 |
Risk-free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0300 | 0.0120 |
Dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0000 | 0.0000 |
Basic and Diluted Loss Per Share - Narrative (Details) |
Jun. 17, 2021 |
---|---|
Earnings Per Share [Abstract] | |
Exchange ratio | 66,637,000 |
Basic and Diluted Loss Per Share - Schedule of loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Numerator: | ||||
Loss attributable to common stockholders—basic | $ (10,780) | $ (75,843) | $ (23,767) | $ (80,018) |
Loss attributable to common stockholders—diluted | $ (10,780) | $ (75,843) | $ (23,767) | $ (80,018) |
Denominator: | ||||
Weighted average shares outstanding—basic (in shares) | 91,562,000 | 69,945,000 | 91,520,000 | 68,291,000 |
Weighted average shares outstanding—diluted (in shares) | 91,562,000 | 69,945,000 | 91,520,000 | 68,291,000 |
Net loss per share | ||||
Basic (in dollars per share) | $ (0.12) | $ (1.08) | $ (0.26) | $ (1.17) |
Diluted (in dollars per share) | $ (0.12) | $ (1.08) | $ (0.26) | $ (1.17) |
Commitment and Contingencies (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
claim
|
Dec. 31, 2021
USD ($)
|
---|---|---|
Loss Contingencies [Line Items] | ||
Principal outstanding | $ | $ 55,173 | |
Term Loan | ||
Loss Contingencies [Line Items] | ||
Principal outstanding | $ | $ 55,173 | $ 55,454 |
Collectibility of Receivables | ||
Loss Contingencies [Line Items] | ||
Number of collection actions against former customers | claim | 2 | |
Breach of Contract | Former Customers | ||
Loss Contingencies [Line Items] | ||
Number of counterclaims filed by former customers | claim | 1 |
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