Condensed Consolidated Balance Sheet Components

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Balance Sheet Components

Accounts Receivable, net

Accounts receivable and allowance for doubtful accounts consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Accounts receivable	$	6,267	$	5,128
Allowance for doubtful accounts	(1,312)		(1,061)
Accounts receivable, net	$	4,955	$	4,067

During the three and nine months ended September 30, 2024, the Company increased the allowance for doubtful accounts by less than $0.1 million and $0.3 million, respectively. During the three and nine months ended September 30, 2023, the Company increased the allowance for doubtful accounts by $0.2 million and $0.4 million, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Indemnity escrow receivable(1)	$	3,068	$	1,581
Prepaid insurance	1,661		1,084
Prepaid software	2,000		1,484
Term deposits (greater than 90 days)	1,058		7,694
Other prepaid expenses	557		801
Other current assets	547		609
Prepaid expenses and other current assets	$	8,891	$	13,253

(1) As of September 30, 2024 and December 31, 2023, the Company had an indemnity escrow receivable of $3.1 million and $1.6 million, respectively, in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets, which it expects to collect from the escrow related to the acquisition of IRA Services, Inc. The Company filed its claim against the indemnity escrow during the nine months ended September 30, 2024.

Internal-Use Software, Property and Equipment, Net

Internal-use software, property and equipment, net consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Capitalized internal-use software	$	9,160	$	9,000
Leasehold improvements	1,275		866
Furniture and fixtures	579		485
Computer equipment	163		125
	$	11,177	$	10,476
Less: accumulated depreciation and amortization	(7,677)		(5,284)
Internal-use software and property and equipment, net	$	3,500	$	5,192

The Company recorded depreciation expense related to property and equipment of $0.2 million and $0.4 million for the three and nine months ended September 30, 2024 and $0.1 million and $0.2 million for the three and nine months ended September 30, 2023. As of September 30, 2024 and December 31, 2023, long-lived assets located outside of the United States were not material.

For the three and nine months ended September 30, 2024, the Company recorded amortization expense on capitalized internal-use software placed in service of $0.6 million and $2.0 million, respectively. For the three and nine months ended September 30, 2023, the Company recorded amortization expense on capitalized internal-use software placed in service of $0.7 million and $2.1 million, respectively. There were no impairments on capitalized internal-use software for the three and nine months ended September 30, 2024. For the three and nine months ended September 30, 2023, the

Company recorded impairment losses of $0.0 million and $0.5 million, respectively, related to the capitalized costs of internally developed software. Impairments are recorded in general and administrative expense within the unaudited condensed consolidated statements of operations.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):


	September 30, 2024		December 31, 2023
Payable to client(1)	$	1,671	$	1,693
Accrued taxes and deferred tax liabilities	1,756		1,479
Accrued other professional services	1,013		696
Accrued legal(2)	937		2,470
Common stock unvested liability	111		223
Other current liabilities(3)	2,206		2,300
Total	$	7,694	$	8,861

(1) Payable to client represents funds held on account for the benefit of custodial customers.

(2) Accrued legal includes regular recurring legal fees and accruals for loss contingencies. See Note 8, "Commitments and Contingencies" for additional information.

(3) The Company includes contract liabilities within Other current liabilities on the unaudited condensed consolidated balance sheets. Contract liabilities consist of deferred revenue, which relates to amounts invoiced in advance of performance under a revenue contract. The total contract liabilities related to advance billings for data subscriptions of $0.8 million and $0.4 million as of September 30, 2024 and December 31, 2023, respectively, are recorded in accrued expenses and other current liabilities on the unaudited condensed consolidated balance sheets. The Company recognized $0.1 million and $0.4 million of revenue during the three and nine months ended September 30, 2024, respectively, that was included in deferred revenue recorded in accrued expenses and other current liabilities at December 31, 2023.