Condensed Consolidated Balance Sheet Components

3 Months Ended

Mar. 31, 2025

Condensed Consolidated Balance Sheet Components

Accounts Receivable, Net

Accounts receivable and allowance for credit losses consisted of the following (in thousands):


	As of March 31, 2025		As of December 31, 2024
Accounts receivable	$	7,323	$	6,005
Allowance for credit losses	(1,469)		(1,299)
Accounts receivable, net	$	5,853	$	4,706

During the three months ended March 31, 2025 and December 31, 2024, the Company increased the allowance for credit losses in general and administrative expenses in the unaudited condensed consolidated statements of operations by $0.2 million and less than $0.01 million, respectively. The Company recorded write-offs of zero and $0.1 million during the three months ended March 31, 2025 and December 31, 2024, respectively. No recoveries were recorded during the three months ended March 31, 2025 and December 31, 2024.

Prepaid Expenses and Other Current Assets

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


	As of March 31, 2025		As of December 31, 2024
Indemnity escrow receivable(1)	$	3,070	$	3,070
Prepaid software	2,089		1,843
Term deposits (greater than 90 days)	1,075		1,068
Prepaid insurance	325		956
Other prepaid expenses	1,144		689
Other current assets	735		579
Prepaid expenses and other current assets	$	8,438	$	8,205

(1) The Company filed a claim against the indemnity escrow related to the acquisition of IRA Services, Inc. The indemnity escrow account held as collateral had total assets of $3.5 million of cash and 39,063 shares of the Company's common stock with a fair value of $0.3 million as of March 31, 2025.

Internal-Use Software, Property and Equipment, Net

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


	As of March 31, 2025		As of December 31, 2024
Capitalized internal-use software	$	9,347	$	9,347
Computer equipment	112		163
Furniture and fixtures	579		579
Leasehold improvements	1,211		1,296
	$	11,249	$	11,385
Less: accumulated depreciation and amortization	(9,083)		(8,465)
Internal-use software and property and equipment, net	$	2,166	$	2,920

For the three months ended March 31, 2025 and 2024, the Company recorded amortization expense on capitalized internal-use software placed in service of $0.6 million and $0.7 million, respectively. The Company did not record an impairment loss for internally developed software for the three months ended March 31, 2025 and 2024.

For the three months ended March 31, 2025 and 2024, the Company recorded depreciation expense related to property and equipment of $0.2 million and $0.1 million, respectively. For the three months ended March 31, 2025 and 2024, there were no impairment losses recorded by the Company.

Accrued Expenses and Other Current Liabilities

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


	As of March 31, 2025		As of December 31, 2024
Payable to client(1)	$	1,672	$	1,679
Accrued taxes and deferred tax liabilities	1,742		1,575
Accrued other professional services	661		704
Contract liabilities	265		575
Accrued legal(2)	521		356
Common stock unvested liability	53		72
Other current liabilities(3)	1,772		1,350
Accrued expenses and other current liabilities	$	6,686	$	6,310

(1) Payable to clients primarily represents funds held in escrow for the benefit of custodial clients.

(2) Accrued legal includes recurring legal fees and accruals for loss contingencies.

(3) The Company recognized $0.2 million of revenue during the three months ended March 31, 2025, that was included in deferred revenue recorded in accrued expenses and other current liabilities as of December 31, 2024.