Segment information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Information

Summarized financial information concerning the Company’s reportable segments is shown in the following tables (in thousands). There are no intersegment sales, only interest income and interest expense related to an intersegment line of credit, all of which eliminate in consolidation. The “Other” column

includes any income and expenses not allocated to reportable segments and corporate-related items, including equity-based compensation, certain legal expenses and interest related to the note payable.

	Franchise Channel		Corporate Channel		Other		Total
Year Ended December 31, 2019
Revenues:
Commissions and agency fees
Renewal Commissions	$	—	$	22,924	$	—	$	22,924
Agency Fees	—		6,058		—		6,058
New Business Commissions	—		11,961		—		11,961
Contingent Commissions	3,530		1,893		—		5,423
Total Commissions and Agency Fees	3,530		42,836		—		46,366
Franchise revenue
Renewal Royalty Fees	19,462		—		—		19,462
New Business Royalty Fees	7,149		—		—		7,149
Initial Franchise Fees	3,784		—		—		3,784
Other Income	108		—		—		108
Total Franchise Revenue	30,503		—		—		30,503
Interest income
Interest Income	617		—		—		617
Total Interest Income	617		—		—		617
Total	34,650		42,836		—		77,486
Operating expenses:
Employee compensation and benefits, excluding equity-based compensation	16,673		23,516		—		40,189
General and administrative expenses, excluding state franchise tax	7,392		8,769		2,881		19,042
Bad debts	121		604		—		725
Total	24,186		32,889		2,881		59,956
Adjusted EBITDA	10,464		9,947		(2,881)		17,530
Equity based compensation	—		—		(1,526)		(1,526)
Interest expense	—		—		(2,387)		(2,387)
Depreciation and amortization	(960)		(971)		—		(1,931)
Taxes	—		—		(1,304)		(1,304)
Net income	$	9,504	$	8,976	$	(8,098)	$	10,382
At December 31, 2019:
Total Assets	$	22,676	$	15,127	$	26,825	$	64,628

	Franchise Channel		Corporate Channel		Other		Total
Year Ended December 31, 2018
Revenues:
Commissions and agency fees
Commissions and agency fees
Renewal Commissions	—		18,357		—		18,357
Agency Fees	—		5,169		—		5,169
New Business Commissions	—		9,347		—		9,347
Contingent Commissions	2,417		1,414		—		3,831
Total Commissions and Agency Fees	2,417		34,287		—		36,704
Franchise revenue
Renewal Royalty Fees	12,104		—		—		12,104
New Business Royalty Fees	4,873		—		—		4,873
Initial Franchise Fees	6,045		—		—		6,045
Other Income	—		—		—		—
Total Franchise Revenue	23,022		—		—		23,022
Interest income
Interest Income	422		—		—		422
Total Interest Income	422		—		—		422
Total	25,861		34,287		—		60,148
Employee compensation and benefits, excluding equity-based compensation	12,511		18,662		—		31,173
General and administrative expenses, excluding state franchise tax(1)	4,326		7,200		1,399		12,925
Bad debts	409		889		—		1,298
Total	17,246		26,751		1,399		45,396
Adjusted EBITDA	8,615		7,536		(1,399)		14,752
Other income (expense, including state franchise tax)	—		(22)		(135)		(157)
Equity based compensation	—		—		(27,083)		(27,083)
Interest expense	—		—		(4,266)		(4,266)
Depreciation and amortization	(519)		(945)		—		(1,464)
Taxes	—		—		(449)		(449)
Net income	$	8,096	$	6,569	$	(33,332)	$	(18,667)
At December 31, 2018:
Total Assets	$	8,572	$	6,862	$	19,364	$	34,798

(1) Excluded from general and administrative expenses is $135 thousand of state franchise tax that is not calculated based on income.