[X]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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Delaware
|
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33-0711569
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(State or other jurisdiction of incorporation or
organization)
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(I.R.S. Employer Identification Number)
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Common Stock, par value $0.001 per share
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AUTO
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The Nasdaq Capital Market
|
Large accelerated filer ☐
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Accelerated filer ☐
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Non-accelerated filer ☐
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Smaller reporting company ☒
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Emerging growth company ☐
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INDEX
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Page
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1
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2
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3
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5
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6
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16
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22
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22
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23
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24
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25
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June 30,
2019
|
December 31,
2018
|
Assets
|
|
|
Current
assets:
|
|
|
Cash
and cash equivalents
|
$1,431
|
$13,600
|
Restricted
cash
|
5,016
|
—
|
Accounts
receivable, net of allowances for bad debts and customer credits of
$553 and $566 at June 30, 2019 and December 31, 2018,
respectively
|
23,331
|
26,898
|
Prepaid
expenses and other current assets
|
1,655
|
1,245
|
Total
current assets
|
31,433
|
41,743
|
Property
and equipment, net
|
3,405
|
3,181
|
Right-of-use
assets
|
3,301
|
—
|
Intangible
assets, net
|
9,291
|
11,976
|
Other
assets
|
819
|
516
|
Total
assets
|
48,249
|
57,416
|
Liabilities
and Stockholders’ Equity
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
15,627
|
17,572
|
Accrued
employee-related benefits
|
2,391
|
3,125
|
Other
accrued expenses and other current liabilities
|
2,064
|
2,204
|
Current
portion of lease liabilities
|
1,552
|
—
|
Current
convertible note payable
|
—
|
1,000
|
Total
current liabilities
|
21,634
|
23,901
|
Lease
liabilities, net of current portion
|
1,894
|
—
|
Total
liabilities
|
23,528
|
23,901
|
Commitments
and contingencies (Note 10)
|
—
|
—
|
Stockholders’
equity:
|
|
|
Preferred
stock, $0.001 par value, 11,445,187 shares authorized
|
|
|
Series
A Preferred stock, none issued and outstanding
|
—
|
—
|
Common
stock, $0.001 par value; 55,000,000 shares authorized and
13,146,831 and 12,960,450 shares issued and outstanding at June 30,
2019 and December 31, 2018, respectively
|
13
|
13
|
Additional
paid-in capital
|
362,737
|
361,218
|
Accumulated
deficit
|
(338,029)
|
(327,716)
|
Total
stockholders’ equity
|
24,721
|
33,515
|
Total
liabilities and stockholders’ equity
|
$48,249
|
$57,416
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Revenues:
|
|
|
|
|
Lead
fees
|
$21,691
|
$22,211
|
$47,389
|
$46,291
|
Advertising
|
5,432
|
6,950
|
11,310
|
15,037
|
Other
revenues
|
19
|
131
|
47
|
313
|
Total
revenues
|
27,142
|
29,292
|
58,746
|
61,641
|
Cost
of revenues
|
21,758
|
23,765
|
47,605
|
48,423
|
Gross
profit
|
5,384
|
5,527
|
11,141
|
13,218
|
Operating
expenses:
|
|
|
|
|
Sales
and marketing
|
2,956
|
3,052
|
5,834
|
6,764
|
Technology
support
|
2,182
|
2,965
|
4,962
|
6,351
|
General
and administrative
|
4,026
|
3,765
|
8,316
|
8,340
|
Depreciation
and amortization
|
1,201
|
1,163
|
2,440
|
2,323
|
Goodwill
impairment
|
—
|
—
|
—
|
5,133
|
Total
operating expenses
|
10,365
|
10,945
|
21,552
|
28,911
|
|
|
|
|
|
Operating
(loss)
|
(4,981)
|
(5,418)
|
(10,411)
|
(15,693)
|
Interest
and other income (expense), net
|
33
|
201
|
103
|
201
|
Loss
before income tax provision
|
(4,948)
|
(5,217)
|
(10,308)
|
(15,492)
|
Income
tax provision
|
5
|
—
|
5
|
4
|
Net
loss and comprehensive loss
|
$(4,953)
|
$(5,217)
|
$(10,313)
|
$(15,496)
|
|
|
|
|
|
Basic
loss per common share
|
$(0.38)
|
$(0.41)
|
$(0.79)
|
$(1.22)
|
|
|
|
|
|
Diluted
loss per common share
|
$(0.38)
|
$(0.41)
|
$(0.79)
|
$(1.22)
|
|
|
|
|
|
Three
Months Ended June 30, 2018
|
|||||||
|
Common
Stock
|
Preferred
Stock
|
Additional
Paid-In-
|
Accumulated
|
|
||
|
Number
of Shares
|
Amount
|
Number
of Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
|
|
|
|
|
|
|
|
Balance
at March 31, 2018
|
$12,896,225
|
13
|
—
|
$—
|
$357,754
|
$(299,179)
|
$58,588
|
Share-based
compensation
|
—
|
—
|
—
|
—
|
943
|
—
|
943
|
Issuance
of common stock upon exercise of stock options
|
750
|
—
|
—
|
—
|
1
|
—
|
1
|
Cancellation
of restricted stock
|
(10,000)
|
—
|
—
|
—
|
—
|
—
|
—
|
Issuance
of common stock
|
60,975
|
—
|
—
|
—
|
200
|
—
|
200
|
Net
loss
|
—
|
—
|
—
|
—
|
—
|
(5,217)
|
(5,217)
|
Balance
at June 30, 2018
|
12,947,950
|
13
|
—
|
$—
|
$358,898
|
$(304,396)
|
$54,515
|
Three
Months Ended June 30, 2019
|
|||||||
|
Common
Stock
|
Preferred
Stock
|
Additional
Paid-In-
|
Accumulated
|
|
||
|
Number
of Shares
|
Amount
|
Number
of Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
|
|
|
|
|
|
|
|
Balance
at March 31, 2019
|
$13,116,462
|
13
|
—
|
$—
|
$362,076
|
$(333,076)
|
$29,013
|
Share-based
compensation
|
—
|
—
|
—
|
—
|
560
|
—
|
560
|
Issuance
of common stock upon exercise of stock options
|
57,036
|
—
|
—
|
—
|
101
|
—
|
101
|
Cancellation
of restricted stock
|
(26,667)
|
—
|
—
|
—
|
—
|
—
|
—
|
Net
loss
|
—
|
—
|
—
|
—
|
—
|
(4,953)
|
(4,953)
|
Balance
at June 30, 2019
|
13,146,831
|
13
|
—
|
$—
|
$362,737
|
$(338,029)
|
$24,721
|
Six
Months Ended June 30, 2018
|
|||||||
|
Common
Stock
|
Preferred
Stock
|
Additional
Paid-In-
|
Accumulated
|
|
||
|
Number
of Shares
|
Amount
|
Number
of Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
|
|
|
|
|
|
|
|
Balance
at December 31, 2017
|
$13,059,341
|
13
|
—
|
$—
|
$356,054
|
$(288,900)
|
$67,167
|
Share-based
compensation
|
—
|
—
|
—
|
—
|
2,570
|
—
|
2,570
|
Issuance
of common stock upon exercise of stock options
|
15,967
|
—
|
—
|
—
|
74
|
—
|
74
|
Cancellation
of restricted stock
|
(188,333)
|
—
|
—
|
—
|
—
|
—
|
—
|
Issuance
of common stock
|
60,975
|
—
|
—
|
—
|
200
|
—
|
200
|
Net
loss
|
—
|
—
|
—
|
—
|
—
|
(15,496)
|
(15,496)
|
Balance
at June 30, 2018
|
12,947,950
|
13
|
—
|
$—
|
$358,898
|
$(304,396)
|
$54,515
|
Six
Months Ended June 30, 2019
|
|||||||
|
Common
Stock
|
Preferred
Stock
|
Additional
Paid-In-
|
Accumulated
|
|
||
|
Number
of Shares
|
Amount
|
Number
of Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
|
|
|
|
|
|
|
|
Balance
at December 31, 2018
|
$12,960,450
|
13
|
—
|
$—
|
$361,218
|
$(327,716)
|
$33,515
|
Share-based
compensation
|
—
|
—
|
—
|
—
|
1,111
|
—
|
1,111
|
Issuance
of common stock upon exercise of stock options
|
213,048
|
—
|
—
|
—
|
408
|
—
|
408
|
Cancellation
of restricted stock
|
(26,667)
|
—
|
—
|
—
|
—
|
—
|
—
|
Net
loss
|
—
|
—
|
—
|
—
|
—
|
(10,313)
|
(10,313)
|
Balance
at June 30, 2019
|
13,146,831
|
13
|
—
|
$—
|
$362,737
|
$(338,029)
|
$24,721
|
|
Six
Months Ended
June
30,
|
|
|
2019
|
2018
|
Cash
flows from operating activities:
|
|
|
Net
loss
|
$(10,313)
|
$(15,496)
|
Adjustments
to reconcile net loss to net cash provided by operating
activities:
|
|
|
Depreciation
and amortization
|
3,509
|
4,360
|
Goodwill
impairment
|
—
|
5,133
|
Provision
for bad debts
|
122
|
146
|
Provision
for customer credits
|
120
|
153
|
Share-based
compensation
|
1,111
|
2,569
|
Right-of-use
assets
|
924
|
—
|
Lease
liabilities
|
(924)
|
—
|
Gain
on sale of investment
|
—
|
(125)
|
Change
in deferred tax asset
|
—
|
692
|
Changes
in assets and liabilities:
|
|
|
Accounts
receivable
|
3,325
|
1,548
|
Prepaid
expenses and other current assets
|
(410)
|
428
|
Other
assets
|
(303)
|
(632)
|
Accounts
payable
|
(1,945)
|
2,058
|
Accrued
expenses and other current liabilities
|
(787)
|
437
|
Net
cash (used in) provided by operating activities
|
(5,571)
|
1,271
|
Cash
flows from investing activities:
|
|
|
Payments
for property and equipment
|
(990)
|
(392)
|
Proceeds
from sale of investment
|
—
|
125
|
Net
cash used in investing activities
|
(990)
|
(267)
|
Cash
flows from financing activities:
|
|
|
Borrowings
under revolving credit facility
|
16,940
|
—
|
Principal
payments on revolving credit facility
|
(16,940)
|
(8,000)
|
Payments
on convertible note
|
(1,000)
|
—
|
Proceeds
from issuance of common stock
|
—
|
200
|
Proceeds
from exercise of stock options
|
408
|
74
|
Net
cash used in financing activities
|
(592)
|
(7,726)
|
Net
decrease in cash and cash equivalents
|
(7,153)
|
(6,722)
|
Cash
and cash equivalents and restricted cash, beginning of
period
|
13,600
|
24,993
|
Cash
and cash equivalents and restricted cash, end of
period
|
$6,447
|
$18,271
|
|
|
|
Reconciliation of
cash and cash equivalents and restricted cash
|
|
|
Cash
and cash equivalents at beginning of period
|
$13,600
|
$24,993
|
Restricted
cash at beginning of period
|
—
|
—
|
Cash
and cash equivalents and restricted cash at beginning of
period
|
$13,600
|
$24,993
|
|
|
|
Cash
and cash equivalents at end of period
|
$1,431
|
$18,271
|
Restricted
cash at end of period
|
5,016
|
—
|
Cash
and cash equivalents and restricted cash at end of
period
|
$6,447
|
$18,271
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
Cash
paid for income taxes
|
$1
|
$—
|
Cash
refunds for income taxes
|
124
|
—
|
Cash
paid for interest
|
$40
|
$88
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Lead
fees
|
$21,691
|
$22,211
|
$47,389
|
$46,291
|
Advertising
|
|
|
|
|
Clicks
|
4,456
|
5,771
|
9,515
|
12,462
|
Display
and other advertising
|
976
|
1,179
|
1,795
|
2,575
|
|
5,432
|
6,950
|
11,310
|
15,037
|
|
|
|
|
|
Other
revenues
|
19
|
131
|
47
|
313
|
Total
revenues
|
$27,142
|
$29,292
|
$58,746
|
$61,641
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2019
|
2018
|
2019
|
2018
|
Basic
Shares:
|
|
|
|
|
Weighted
average common shares outstanding
|
13,147,741
|
12,920,591
|
13,066,617
|
12,965,520
|
Weighted
average unvested restricted stock
|
(36,850)
|
(194,505)
|
(48,362)
|
(293,646)
|
Basic
Shares
|
13,110,891
|
12,726,086
|
13,018,255
|
12,671,874
|
|
|
|
|
|
Diluted
Shares:
|
|
|
|
|
Basic
shares
|
13,110,891
|
12,726,086
|
13,018,255
|
12,671,874
|
Weighted
average dilutive securities
|
—
|
—
|
—
|
—
|
Diluted
Shares
|
13,110,891
|
12,726,086
|
13,018,255
|
12,671,874
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Share-based
compensation expense:
|
|
|
|
|
Cost
of revenues
|
$—
|
$4
|
$—
|
$19
|
Sales
and marketing
|
66
|
159
|
138
|
384
|
Technology
support
|
52
|
173
|
93
|
326
|
General and administrative (1)
|
442
|
607
|
880
|
1,841
|
Share-based
compensation costs
|
560
|
943
|
1,111
|
2,570
|
|
|
|
|
|
Amount
capitalized to internal use software
|
—
|
—
|
—
|
1
|
Total
share-based compensation costs
|
$560
|
$943
|
$1,111
|
$2,569
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Number
of service-based options granted
|
140,000
|
1,715,200
|
1,182,883
|
1,716,700
|
Weighted
average grant date fair value
|
$1.84
|
$1.83
|
$1.82
|
$1.84
|
Weighted
average exercise price
|
$3.45
|
$3.29
|
$3.42
|
$3.30
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Dividend
yield
|
—
|
—
|
—
|
—
|
Volatility
|
66%
|
68%
|
65%
|
68%
|
Risk-free
interest rate
|
2.2%
|
2.6%
|
2.5%
|
2.6%
|
Expected
life (years)
|
4.4
|
4.5
|
4.4
|
4.5
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Number
of stock options exercised
|
57,036
|
750
|
213,048
|
15,967
|
Weighted
average exercise price
|
$1.77
|
$2.20
|
$1.92
|
$4.68
|
|
June 30,
2019
|
December 31,
2018
|
|
|
|
Computer
software and hardware
|
$12,440
|
$11,393
|
Capitalized
internal use software
|
6,228
|
6,228
|
Furniture
and equipment
|
1,743
|
1,743
|
Leasehold
improvements
|
1,613
|
1,613
|
|
22,024
|
20,977
|
Less—Accumulated
depreciation and amortization
|
(18,619)
|
(17,796)
|
Property
and Equipment, net
|
$3,405
|
$3,181
|
|
|
June 30, 2019
|
December 31, 2018
|
||||
Definite-lived Intangible Asset
|
Estimated Useful Life
|
Gross
|
Accumulated Amortization
|
Net
|
Gross
|
Accumulated Amortization
|
Net
|
|
|
|
|
|
|
|
|
Trademarks/
trade names/ licenses/ domains
|
3 -
7 years
|
$16,589
|
$(15,182)
|
$1,407
|
$16,589
|
$(14,914)
|
$1,675
|
Customer
relationships
|
2 -
5 years
|
19,563
|
(17,417)
|
2,146
|
19,563
|
(15,544)
|
4,019
|
Developed
technology
|
5 -
7 years
|
8,955
|
(5,417)
|
3,538
|
8,955
|
(4,873)
|
4,082
|
|
$45,107
|
$(38,016)
|
$7,091
|
$45,107
|
$(35,331)
|
$9,776
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
December 31, 2018
|
||||
Definite-lived
Intangible Asset
|
Estimated Useful Life
|
Gross
|
Accumulated Amortization
|
Net
|
Gross
|
Accumulated Amortization
|
Net
|
|
|
|
|
|
|
|
|
Domain
|
Indefinite
|
$2,200
|
$—
|
$2,200
|
$2,200
|
$—
|
$2,200
|
Year
|
Amortization
Expense
|
|
|
2019
|
$2,187
|
2020
|
2,371
|
2021
|
1,499
|
2022
|
902
|
2023
|
86
|
Thereafter
|
46
|
|
$7,091
|
|
|
|
June 30,
2019
|
December 31,
2018
|
|
|
|
Accrued
employee-related benefits
|
$2,391
|
$3,125
|
Other
accrued expenses and other current liabilities:
|
|
|
Other
accrued expenses
|
1,062
|
1,346
|
Amounts
due to customers
|
596
|
424
|
Other
current liabilities
|
406
|
434
|
Total
other accrued expenses and other current liabilities
|
2,064
|
2,204
|
|
|
|
Total
accrued expenses and other current liabilities
|
$4,455
|
$5,329
|
Current
portion of lease liabilities
|
$1,552
|
Long
term lease liabilities, net of current portion
|
1,894
|
Total
lease liabilities
|
$3,446
|
Year
|
|
2019
(remaining 6 months)
|
$872
|
2020
|
1,279
|
2021
|
513
|
2022
|
459
|
2023
|
472
|
Thereafter
|
199
|
Total
minimum lease payments
|
3,794
|
Less
imputed interest
|
(348)
|
Total
lease liabilities
|
$3,446
|
|
2019
|
% of
Total
Revenues
|
2018
|
% of
Total
Revenues
|
Change
|
% Change
|
|
(Dollar amounts in thousands)
|
|||||
Revenues:
|
|
|
|
|
|
|
Lead
fees
|
$21,691
|
80%
|
$22,211
|
76%
|
$(520)
|
(2)%
|
Advertising
|
5,432
|
20
|
6,950
|
24
|
(1,518)
|
(22)
|
Other
revenues
|
19
|
—
|
131
|
—
|
(112)
|
(86)
|
Total
revenues
|
27,142
|
100
|
29,292
|
100
|
(2,150)
|
(7)
|
Cost
of revenues
|
21,758
|
80
|
23,765
|
81
|
(2,007)
|
(8)
|
Gross
profit
|
5,384
|
20
|
5,527
|
19
|
(143)
|
(3)
|
Operating
expenses:
|
|
|
|
|
|
|
Sales
and marketing
|
2,956
|
11
|
3,052
|
10
|
(96)
|
(3)
|
Technology
support
|
2,182
|
8
|
2,965
|
10
|
(783)
|
(26)
|
General
and administrative
|
4,026
|
15
|
3,765
|
13
|
261
|
7
|
Depreciation
and amortization
|
1,201
|
4
|
1,163
|
4
|
38
|
3
|
Goodwill
impairment
|
—
|
—
|
—
|
—
|
—
|
—
|
Total
operating expenses
|
10,365
|
38
|
10,945
|
37
|
(580)
|
(5)
|
Operating
loss
|
(4,981)
|
(18)
|
(5,418)
|
(19)
|
437
|
(8)
|
Interest
and other income (expense), net
|
33
|
—
|
201
|
1
|
(168)
|
(84)
|
Loss
before income tax provision
|
(4,948)
|
(18)
|
(5,217)
|
(18)
|
269
|
(5)
|
Income
tax provision
|
5
|
—
|
—
|
—
|
5
|
—
|
Net
loss
|
$(4,953)
|
(18)%
|
$(5,217)
|
(18)%
|
$264
|
(5)%
|
|
2019
|
% of
Total
Revenues
|
2018
|
% of
Total
Revenues
|
Change
|
% Change
|
|
(Dollar amounts in thousands)
|
|||||
Revenues:
|
|
|
|
|
|
|
Lead
fees
|
$47,389
|
81%
|
$46,291
|
75%
|
$1,098
|
2%
|
Advertising
|
11,310
|
19
|
15,037
|
24
|
(3,727)
|
(25)
|
Other
revenues
|
47
|
—
|
313
|
1
|
(266)
|
(85)
|
Total
revenues
|
58,746
|
100
|
61,641
|
100
|
(2,895)
|
(5)
|
Cost
of revenues
|
47,605
|
81
|
48,423
|
79
|
(818)
|
(2)
|
Gross
profit
|
11,141
|
19
|
13,218
|
21
|
(2,077)
|
(16)
|
Operating
expenses:
|
|
|
|
|
|
|
Sales
and marketing
|
5,834
|
10
|
6,764
|
11
|
(930)
|
(14)
|
Technology
support
|
4,962
|
8
|
6,351
|
10
|
(1,389)
|
(22)
|
General
and administrative
|
8,316
|
14
|
8,340
|
14
|
(24)
|
—
|
Depreciation
and amortization
|
2,440
|
4
|
2,323
|
4
|
117
|
5
|
Goodwill
impairment
|
—
|
—
|
5,133
|
8
|
(5,133)
|
(100)
|
Total
operating expenses
|
21,552
|
37
|
28,911
|
47
|
(7,359)
|
(25)
|
Operating
loss
|
(10,411)
|
(18)
|
(15,693)
|
(26)
|
5,282
|
(34)
|
Interest
and other income (expense), net
|
103
|
—
|
201
|
1
|
(98)
|
(49)
|
Loss
before income tax provision
|
(10,308)
|
(18)
|
(15,492)
|
(25)
|
5,184
|
(33)
|
Income
tax provision
|
5
|
—
|
4
|
—
|
1
|
25
|
Net
loss
|
$(10,313)
|
(18)%
|
$(15,496)
|
(25)%
|
$5,183
|
(33)%
|
|
Six
Months Ended
June
30,
|
|
|
2019
|
2018
|
|
(in thousands)
|
|
Net
cash (used in) provided by operating activities
|
$(5,571)
|
$1,271
|
Net
cash used in investing activities
|
(990)
|
(267)
|
Net
cash used in financing activities
|
(592)
|
(7,726)
|
Number
|
Description
|
|
|
Sixth Restated Certificate of Incorporation of AutoWeb, Inc.,
incorporated by reference to Exhibit
3.4 to the Current Report on Form 8-K filed with the
SEC on October 10, 2017 (SEC File No. 001-34761)
(“October 2017 Form
8-K”)
|
|
|
|
Seventh Amended and Restated Bylaws of AutoWeb, Inc. dated October
9, 2017, incorporated by reference to Exhibit
3.5 to the October 2017 Form 8-K
|
|
|
|
Tax Benefit Preservation Plan dated as of May 26, 2010 between
Company and Computershare Trust Company, N.A., as rights agent,
together with the following exhibits thereto: Exhibit A –
Form of Right Certificate; and Exhibit B – Summary of Rights
to Purchase Shares of Preferred Stock of Company, incorporated by
reference to Exhibit
4.1 to
the Current Report on Form 8-K filed
with the SEC on June 2, 2010 (SEC File No. 000-22239),
Amendment No. 1 to Tax Benefit Preservation Plan dated as of April
14, 2014, between Company and Computershare Trust Company, N.A., as
rights agent, incorporated by reference to Exhibit
4.1 to
the Current Report on Form 8-K filed
with the SEC on April 16, 2014 (SEC File No. 001-34761),
Amendment No. 2 to Tax Benefit Preservation Plan dated as of
April 13, 2017, between Company and Computershare Trust
Company, N.A., as rights agent, incorporated by reference
to Exhibit
4.1 to
the Current Report on Form
8-K filed with the SEC on April 14, 2017 (SEC File No.
001-34761)
|
|
|
|
Certificate of Adjustment Under Section 11(m) of the Tax Benefit
Preservation Plan, incorporated by reference to Exhibit
4.3 to
the Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2012 filed with the SEC on November 8, 2012 (SEC File
No. 001-34761)
|
|
|
|
Revolving Credit and Security Agreement by and among PNC Bank,
National Association, as Agent, the Lenders Party thereto, and
AutoWeb, Inc., as Borrower, and Car.com, Inc., Autobytel, Inc., and
AW GUA USA, Inc., as guarantors, dated April 30, 2019,
incorporated by reference
to
Exhibit 10.1 to the Current Report on Form 8-K filed with the
SEC on May 1, 2019 (SEC File No. 001-34761).
|
|
|
|
Rule
13a-14(a)/15d-14(a) Certification by Principal Executive
Officer
|
|
|
|
Rule
13a-14(a)/15d-14(a) Certification by Principal Financial
Officer
|
|
|
|
Section
1350 Certification by Principal Executive Officer and Principal
Financial Officer
|
|
|
|
101.INS††
|
XBRL
Instance Document
|
|
|
101.SCH††
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL††
|
XBRL Taxonomy Calculation Linkbase Document
|
|
|
101.DEF††
|
XBRL Taxonomy Extension Definition Document
|
|
|
101.LAB††
|
XBRL Taxonomy Label Linkbase Document
|
|
|
101.PRE††
|
XBRL Taxonomy Presentation Linkbase Document
|
*
|
Filed herewith.
|
††
|
Furnished with this report. In accordance with Rule 406T
of Regulation S-T, the information in these exhibits shall not be
deemed to be “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject
to liability under that section, and shall not be incorporated by
reference into any registration statement or other document filed
under the Securities Act of 1933, as amended, except as expressly
set forth by specific reference in such filing.
|
|
|
AutoWeb,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date: August 7, 2019
|
By:
|
/s/
Joseph P.
Hannan
|
|
|
|
|
Joseph P. Hannan
|
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
Date: August 7, 2019
|
By:
|
/s/
Wesley
Ozima
|
|
|
|
|
Wesley Ozima
|
|
|
|
|
Senior Vice President, Controller
|
|
|
|
|
(Principal Accounting Officer)
|
|
Date: August 7, 2019
|
By: /s/ Jared R.
Rowe
|
|
|
Jared
R. Rowe
|
|
|
President and Chief Executive Officer
|
|
Date: August 7, 2019
|
By: /s/ Joseph P.
Hannan
|
|
|
Joseph
P. Hannan
|
|
|
Executive Vice President, Chief Financial Officer
|
|
Date: August 7, 2019
|
By: /s/ Jared R.
Rowe
|
|
|
Jared
R. Rowe
|
|
|
President and Chief Executive Officer
|
|
|
|
|
Date: August 7, 2019
|
By: /s/ Joseph P.
Hannan
|
|
|
Joseph
P. Hannan
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
|
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end
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Aug. 05, 2019 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AutoWeb, Inc. | |
Entity Central Index Key | 0001023364 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 13,146,831 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE | |
Entity File Number | 1-34761 | |
Title of 12b security | Common Stock, par value $0.001 per share |
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Current assets: | ||
Accounts receivable, allowances for bad debts and customer credits | $ 553 | $ 566 |
Stockholders' equity: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 55,000,000 | 55,000,000 |
Common stock, issued | 13,146,831 | 12,960,450 |
Common stock, outstanding | 13,146,831 | 12,960,450 |
Preferred Class A [Member] | ||
Stockholders' equity: | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 11,445,187 | 11,445,187 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Revenues: | ||||
Lead fees | $ 21,691 | $ 22,211 | $ 47,389 | $ 46,291 |
Advertising | 5,432 | 6,950 | 11,310 | 15,037 |
Other revenues | 19 | 131 | 47 | 313 |
Total revenues | 27,142 | 29,292 | 58,746 | 61,641 |
Cost of revenues | 21,758 | 23,765 | 47,605 | 48,423 |
Gross profit | 5,384 | 5,527 | 11,141 | 13,218 |
Operating expenses: | ||||
Sales and marketing | 2,956 | 3,052 | 5,834 | 6,764 |
Technology support | 2,182 | 2,965 | 4,962 | 6,351 |
General and administrative | 4,026 | 3,765 | 8,316 | 8,340 |
Depreciation and amortization | 1,201 | 1,163 | 2,440 | 2,323 |
Goodwill impairment | 0 | 0 | 0 | 5,133 |
Total operating expenses | 10,365 | 10,945 | 21,552 | 28,911 |
Operating (loss) | (4,981) | (5,418) | (10,411) | (15,693) |
Interest and other income (expense), net | 33 | 201 | 103 | 201 |
Loss before income tax provision | (4,948) | (5,217) | (10,308) | (15,492) |
Income tax provision | 5 | 0 | 5 | 4 |
Net loss and comprehensive loss | $ (4,953) | $ (5,217) | $ (10,313) | $ (15,496) |
Basic loss per common share | $ (0.38) | $ (0.41) | $ (0.79) | $ (1.22) |
Diluted loss per common share | $ (0.38) | $ (0.41) | $ (0.79) | $ (1.22) |
Organization and Operations |
6 Months Ended |
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Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | AutoWeb, Inc. (“AutoWeb” or the “Company”) is a digital marketing company for the automotive industry that assists automotive retail dealers (“Dealers”) and automotive manufacturers (“Manufacturers”) market and sell new and used vehicles to consumers by utilizing the Company’s digital sales enhancing products and services.
The Company’s consumer-facing automotive websites (“Company Websites”) provide consumers with information and tools to aid them with their automotive purchase decisions and the ability to connect with Dealers regarding purchasing or leasing vehicles (“Leads”). Leads are internally-generated from Company Websites or acquired from third parties that generate Leads from their websites. The Company’s click traffic referral program provides consumers who are shopping for vehicles online with targeted offers based on make, model and geographic location. As these consumers conduct online research on Company Websites or on the site of one of the Company’s network of automotive publishers, they are presented with relevant offers on a timely basis and, upon the consumer clicking on the displayed advertisement, are sent to the appropriate website location of one of the Company’s Dealer, Manufacturer or advertising customers.
The Company was incorporated in Delaware on May 17, 1996. The Company’s common stock is listed on the NASDAQ Capital Market under the symbol AUTO. Effective August 7, 2019, the Company’s board of directors designated the Company’s office in Tampa, Florida located at 400 North Ashley Drive, Suite 300, Tampa, Florida 33602 as the Company’s principal office for the transaction of business of the Company pursuant to Section 1.02 of the Company’s bylaws and as the Company’s principal executive offices.
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Basis of Presentation |
6 Months Ended |
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Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements are presented on the same basis as the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”) filed with the Securities and Exchange Commission (“SEC”). AutoWeb has made its disclosures in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation with respect to interim financial statements, have been included. The unaudited condensed consolidated statements of operations and comprehensive loss and cash flows for the periods ended June 30, 2019 are not necessarily indicative of the results of operations or cash flows expected for the year or any other period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in the 2018 Form 10-K.
Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation.
References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified.
On April 30, 2019, the Company entered into a $25.0 million Revolving Credit and Security Agreement ("Credit Agreement" or “Revolving Loan”) with PNC Bank, N.A. (“PNC”) as agent, and the Company’s U.S. subsidiaries Car.com, Inc., Autobytel, Inc., and AW GUA USA, Inc., as Guarantors, (“Company Subsidiaries”). The obligations under the Credit Agreement are guaranteed by the Company Subsidiaries and secured by a first priority lien on all of the Company and the Company’s subsidiaries’ tangible and intangible assets. The Credit Agreement provides a subfacility of up to $5.0 million for letters of credit. The Credit Agreement expires on April 30, 2022.
The Credit Agreement contains customary representations and warranties and covenants that restrict the Company and the Company Subsidiaries from engaging in or taking various actions, including, among other things (but except as otherwise permitted by the Credit Agreement): (i) incurring or guaranteeing additional indebtedness; (ii) making any loans, investments or acquisitions; (iii) selling or otherwise transferring or disposing of assets other than in the ordinary course of business; (iv) engaging in transactions with affiliates; and (v) declaring or making distributions on their stock or other equity interests. In addition, the Credit Agreement contains financial covenants that require the Company to maintain its consolidated EBITDA (as defined in the Credit Agreement) at stated minimum levels ranging from ($2.9) million to $7.5 million for various periods during the term of the Credit Agreement. The Company is also required to maintain a $5.0 million pledged interest-bearing deposit account with Lender until the Company’s consolidated EBITDA is greater than $10.0 million.
Restricted cash primarily consists of security deposits and other cash escrowed under the Credit Agreement (Note 9).
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Recent Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Issued but not yet adopted by the Company
In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract” (“ASU 2018-15”). ASU 2018-15 was issued to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company is currently evaluating the impact of adopting the updated provisions which are effective for annual periods beginning after December 15, 2019, including interim periods within that reporting period, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements.
Recently adopted by the Company
Accounting Standards Codification 220 “Comprehensive Income.” In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. On January 1, 2019, the Company adopted ASU No. 2018-02 and it did not have a material effect on the consolidated financial statements and related disclosures.
Accounting Standards Codification 842 “Leases” (“ASC 842”) In February 2016, ASU No. 2016-02, “Leases (Topic 842)” was issued. This ASU was issued to increase transparency and comparability among organizations by requiring lessees to (i) recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet to represent the right to use the leased asset for the lease term and the obligation to make lease payments, and (ii) disclose key information about leasing arrangements. Some changes to the lessor accounting guidance were made to align both of the following: (i) the lessor accounting guidance with certain changes made to the lessee accounting guidance, and (ii) key aspects of the lessor accounting model with revenue recognition guidance.
The Company adopted the ASU effective January 1, 2019 utilizing the modified retrospective approach for adoption for all leases that existed at or commenced after the date of initial application with an option to use certain practical expedients. The package of practical expedients allowed the Company to not reassess: (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases. The Company also used (i) hindsight when evaluating contractual lease options, (ii) the practical expedient that allows lessees to treat lease and non-lease components of leases as a single lease component, and (iii) the portfolio approach which allows similar leased assets to be grouped and accounted for together. In addition, the Company implemented additional internal controls to evaluate future transactions in accordance with the standard.
The adoption of ASC 842 had a material impact on the consolidated balance sheet due to the recognition of ROU assets and lease liabilities. The adoption of this ASU did not have a material impact on the consolidated statement of operations or the consolidated statement of cash flows. The Company did not recognize a material cumulative effect adjustment to the opening balance sheet retained earnings on January 1, 2019. Because the modified retrospective approach was elected, the ASU was not applied to periods prior to adoption and did not have an impact on previously reported results. At adoption, the Company recognized operating lease ROU assets and lease liabilities that reflect the present value of the future payments. As the rate implicit in the lease could not be determined for any of the Company’s leases, an estimated incremental borrowing rate of 5.5% was used to determine the present value of lease payments. Based on the impact of ASC 842 on the lease population, the Company recorded $4.4 million in lease liabilities and $4.2 million for ROU assets based upon the lease liabilities adjusted for deferred rent. See Note 8 for additional information on leases.
SEC Release No. 33-10532, Disclosure Update and Simplification. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, “Disclosure Update and Simplification”, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule became effective on November 5, 2018, and the Company adopted the requirements in the first quarter of 2019. See “Unaudited Condensed Consolidated Statements of Stockholders’ Equity.”
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Revenue Recognition |
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Revenue Recognition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue is recognized upon transfer of control of promised goods or services to the Company’s customers, or when the Company satisfies any performance obligations under contract. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for respective goods or services provided. Further, under ASC 606, “Revenue from Contracts with Customers,” (“ASC 606”) contract assets or contract liabilities that arise from past performance but require a further performance before the obligation can be fully satisfied must be identified and recorded on the balance sheet until respective settlements have been met.
The Company has three main revenue sources – Lead fees, advertising, and other revenue. Accordingly, the Company recognizes revenue for each source as described below:
Variable Consideration
Leads are generally sold with a right-of-return for services that do not meet customer requirements as specified by the relevant contract. Rights-of-return are estimable, and provisions for estimated returns are recorded as a reduction in revenue by the Company in the period revenue is recognized, and thereby accounted for as variable consideration. The Company includes the allowance for customer credits in its net accounts receivable balances on the Company’s balance sheet at period end. Allowance for customer credits were approximately $134,000 and $121,000 at June 30, 2019 and December 31, 2018, respectively.
Contract Assets and Contract Liabilities
Unbilled Revenue
Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing. From time-to-time, the Company may have balances on its balance sheet representing revenue that has been recognized by the Company upon satisfaction of performance obligations and earning a right to receive payment. These not-yet invoiced receivable balances are driven by the timing of administrative transaction processing, and are not indicative of partially complete performance obligations, or unbilled revenue. Unbilled revenue represents revenue that is partially earned, whereby control of promised services has not yet transferred to the customer, and for which the Company has not earned the complete right to payment. The Company had zero unbilled revenue included in its consolidated balance sheets as of June 30, 2019 and December 31, 2018.
Deferred Revenue
The Company defers the recognition of revenue when cash payments are received or due in advance of satisfying its performance obligations, including amounts which are refundable. Such activity is not a common practice of operation for the Company. The Company had zero deferred revenue included in its consolidated balance sheets as of June 30, 2019 and December 31, 2018. Generally, payment terms within the Company’s customer contracts include a requirement of payment within 30 to 60 days from date of invoice. Typically, customers make payments after receipt of invoice for billed services, and less typically, in advance of rendered services.
The Company has not made any significant changes in applying ASC 606 during the six months ended June 30, 2019
Disaggregation of Revenue
The Company disaggregates revenue from contracts with customers by revenue source and has determined that disaggregating revenue into these categories sufficiently depicts the differences in the nature, amount, timing, and uncertainty of revenue streams. The Company has three main sources of revenue: lead fees, advertising, and other revenues.
The following table summarizes revenue from contracts with customers, disaggregated by revenue source, for the three and six months ended June 30, 2019 and 2018. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.
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Net Loss Per Share and Stockholders' Equity |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share and Stockholders' Equity | Basic net loss per share is computed using the weighted average number of common shares outstanding during the period, excluding any unvested restricted stock. Diluted net loss per share is computed using the weighted average number of common shares, and if dilutive, potential common shares outstanding, as determined under the treasury stock and if-converted methods, during the period. Potential common shares consist of unvested restricted stock and common shares issuable upon the exercise of stock options and warrants.
The following are the share amounts utilized to compute the basic and diluted net loss per share for the three and six months ended June 30, 2019 and 2018:
For the three and six months ended June 30, 2019 and 2018, the Company’s basic and diluted net loss per share are the same since the Company generated a net loss for the period and potentially dilutive securities are excluded from diluted net loss per share because they have an anti-dilutive impact.
For the three and six months ended June 30, 2019, 4.2 million and 4.1 million of potentially anti-dilutive securities related to common stock have been excluded from the calculation of diluted net earnings per share, respectively. For the three and six months ended June 30, 2018, 4.2 and 4.3 million of potentially anti-dilutive securities related to common stock have been excluded from the calculation of diluted net earnings per share, respectively. |
Share-Based Compensation |
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Share-Based Compensation | Share-based compensation expense is included in costs and expenses in the accompanying Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss as follows:
Service-Based Options. The Company granted the following service-based options for the three and six months ended June 30, 2019 and 2018, respectively:
These options are valued using a Black-Scholes option pricing model and generally vest one-third on the first anniversary of the grant date and ratably over twenty-four months thereafter. The vesting of these awards is contingent upon the employee’s continued employment with the Company during the vesting period, and vesting will be accelerated in the event of a change in control of the Company, termination without cause of an employee, and voluntary termination by an employee with good reason.
The grant date fair value of stock options granted during these periods was estimated using the Black-Scholes option pricing model using the following weighted average assumptions:
Stock option exercises. The following stock options were exercised during the three and six months ended June 30, 2019 and 2018, respectively:
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Selected Balance Sheet Accounts |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Balance Sheet Accounts | Property and Equipment. Property and equipment consists of the following:
Concentration of Credit Risk and Risks Due to Significant Customers. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are primarily maintained with high credit quality financial institutions in the United States. Deposits held by banks exceed the amount of insurance provided for such deposits. These deposits may be redeemed upon demand.
Accounts receivable are primarily derived from fees billed to Dealers and Manufacturers. The Company generally requires no collateral to support its accounts receivables and maintains an allowance for bad debts for potential credit losses.
The Company has a concentration of credit risk with its automotive industry-related accounts receivable balances. Approximately 34%, or $8.0 million, of gross accounts receivable at June 30, 2019, and approximately 27% of total revenues for the six months ended June 30, 2019, are related to Urban Science Applications (which represents Acura, Honda, Nissan, Infiniti, Subaru, Toyota and Volvo) and General Motors. For 2018, approximately 43%, or $10.7 million, of gross accounts receivables at June 30, 2018, and approximately 37% of total revenues for the six months ended June 30, 2018, is related to Urban Science Applications, Media.net Advertising and General Motors.
Intangible Assets. The Company amortizes specifically identified definite-lived intangible assets using the straight-line method over the estimated useful lives of the assets.
The Company’s intangible assets are amortized over the following estimated useful lives:
Amortization expense is included in “Cost of revenues” and “Depreciation and amortization” in the Unaudited Consolidated Condensed Statements of Operations. Total amortization expense was $1.3 million and $2.7 million for the three and six months ended June 30, 2019, respectively. Amortization expense was $1.7 million and $3.4 million for the three and six months ended June 30, 2018, respectively.
Amortization expense for the remainder of the year and for future years is as follows:
Accrued Expenses and Other Current Liabilities. Accrued expenses and other current liabilities consisted of the following:
Convertible Notes Payable. In connection with the acquisition of AutoUSA on January 13, 2014, the Company issued a convertible subordinated promissory note for $1.0 million (“AutoUSA Note”) to AutoNationDirect.com, Inc., with interest payable at an annual interest rate of 6% in quarterly installments. The entire outstanding balance of the AutoUSA Note plus accrued interest was paid in full on January 31, 2019.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | The Company determines if an arrangement is a lease at inception. The Company leases its facilities and certain office equipment under operating leases which expire on various dates through 2024. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, the Company uses the implicit rate in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Lease Liabilities. Lease liabilities as of June 30, 2019 consist of the following:
The Company’s aggregate lease maturities as of June 30, 2019 are as follows:
Rent expense included in operating expenses and cost of revenue was $1.0 million for the six months ended June 30, 2019. The Company had a weighted average remaining lease term of 2.1 years and a weighted average discount rate of 5.5% as of June 30, 2019. Rent expense included in operating expenses for the six months ended June 30, 2018 was $0.8 million under ASC 840, the predecessor to ASC 842. In June 2017, the Company subleased one of its buildings to a third party for the remainder of the lease term which expired in February 2019. Rent expense for the six months ended June 30, 2019 and 2018 is net of sublease income of approximately $26,000 and $77,000, respectively. As of June 30, 2019, the Company did not have any additional operating leases that have not yet commenced. |
Credit Facility |
6 Months Ended |
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Jun. 30, 2019 | |
Line of Credit Facility [Abstract] | |
Credit Facility | On April 30, 2019, the Company entered into a $25.0 million Revolving Credit and Security Agreement ("Credit Agreement" or “Revolving Loan”) with PNC Bank, N.A. (“PNC”) as agent, and the Company’s U.S. subsidiaries Car.com, Inc., Autobytel, Inc., and AW GUA USA, Inc., as Guarantors, (“Company Subsidiaries”). The obligations under the Credit Agreement are guaranteed by the Company and the Company’s subsidiaries and secured by a first priority lien on all of the Company’s Subsidiaries’ tangible and intangible assets. The Credit Agreement provides a subfacility of up to $5.0 million for letters of credit. The Credit Agreement expires on April 30, 2022. As of June 30, 2019, the Company had no outstanding borrowings under its credit facility. Financing costs related to the credit facility, net of accumulated amortization, of approximately $0.3 million, have been deferred and are included in other assets as of June 30, 2019.
The interest rates per annum applicable to borrowings under the Credit Agreement will be, at the Company’s option (subject to certain conditions), equal to either a domestic rate (“Domestic Rate Loans”) or a LIBOR rate for one, two, or three-month interest periods chosen by the Company (“LIBOR Rate Loans”), plus the applicable margin percentage of 2% for Domestic Rate Loans and 3% for LIBOR Rate Loans. The domestic rate for Domestic Rate Loans will be the highest of (i) the base commercial lending rate of Lender, (ii) the overnight bank funding rate plus 0.50%, or (iii) the LIBOR rate plus 1.00% so long as the daily LIBOR rate is offered, ascertainable and not unlawful. The Credit Agreement also provides for commitment fees ranging from 0.5% to 1.5% applied to unused funds (with the applicable fee based on quarterly average borrowings), but with the fees fixed at 1.5% until June 30, 2019. Fees for Letters of Credit are equal to 3% for LIBOR Rate Loans, with a fronting fee for each Letter of Credit in an amount equal to 0.5% of the daily average aggregate undrawn amount of all Letters of Credit outstanding.
The Credit Agreement contains customary representations and warranties and covenants that restrict the Company and the Company Subsidiaries from engaging in or taking various actions, including, among other things (but except as otherwise permitted by the Credit Agreement): (i) incurring or guaranteeing additional indebtedness; (ii) making any loans, investments or acquisitions; (iii) selling or otherwise transferring or disposing of assets other than in the ordinary course of business; (iv) engaging in transactions with affiliates; and (v) declaring or making distributions on their stock or other equity interests. In addition, the Credit Agreement contains financial covenants that require the Company to maintain its consolidated EBITDA (as defined in the Credit Agreement) at stated minimum levels ranging from ($2.9) million to $7.5 million for various periods during the term of the Credit Agreement. The Company is also required to maintain a $5.0 million pledged interest-bearing deposit account with Lender until the Company’s consolidated EBITDA is greater than $10.0 million. As of June 30, 2019, the Company had restricted cash related to the credit facility of approximately $5.0 million.
As of June 30, 2019, and for the six months then ended, the Company had cash and cash equivalents of $1.4 million and a net loss of $10.3 million. The net loss is primarily attributable to operating expenses of $2l.6 million during the six months ended June 30, 2019. The Company used net cash in operations of $5.6 million for the six months ended June 30, 2019. As of June 30, 2019, the Company had an accumulated deficit of $338.0 million and stockholders' equity of $24.7 million.
The Company has developed a strategic plan focused on improving operating performance in the future that includes modernizing and upgrading its technology and systems, pursuing business objectives and responding to business opportunities, developing new or improving existing products and services and enhancing operating infrastructure. The plan's objective is for the Company to generate positive cash flows by the fourth quarter of 2019. However, there is no assurance that the Company will be able to achieve this objective. Also, the Company entered into the Credit Agreement discussed above that is expected to be used to partially fund operations. However, if the Company continues to experience losses and becomes unable to comply with the financial covenants in the Credit Agreement, the Company may be unable to borrow funds under this credit facility.
The Company believes that current cash reserves and operating cash flows will be sufficient to sustain operations into at least the third quarter of 2020. If the Company's plans are unsuccessful, it may need to seek to satisfy its future cash needs through private or public sales of securities, debt financings or partnering/licensing transactions. However, there is no assurance that the Company will be successful in satisfying its future cash needs such that the Company will be able to continue operations.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Employment Agreements
The Company has employment agreements and severance benefits/retention agreements with certain key employees. A number of these agreements require severance payments and continuation of certain insurance benefits in the event of a termination of the employee’s employment by the Company without cause or by the employee for good reason (as defined in these agreements). Stock option agreements and restricted stock award agreements with some key employees provide for acceleration of vesting of stock options and lapsing of forfeiture restrictions on restricted stock in the event of a change in control of the Company, upon termination of employment by the Company without cause or by the employee for good reason, or upon the employee’s death or disability.
Litigation
From time to time, the Company may be involved in litigation matters arising from the normal course of its business activities. Such litigation, even if not meritorious, could result in substantial costs and diversion of resources and management attention, and an adverse outcome in litigation could materially adversely affect its business, results of operations, financial condition and cash flows. |
Income Taxes |
6 Months Ended |
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Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | On an interim basis, the Company estimates what its anticipated annual effective tax rate will be and records a quarterly income tax provision in accordance with the estimated annual rate, adjusted accordingly by the tax effect of certain discrete items that arise during the quarter. As the year progresses, the Company refines its estimated annual effective tax rate based on actual year-to-date results. This process can result in significant changes to the Company's estimated effective tax rate. When such activity occurs, the income tax provision is adjusted during the quarter in which the estimates are refined and adjusted. As such, the Company's year-to-date tax provision reflects the estimated annual effective tax rate. Therefore, these changes along with the adjustments to the Company's deferred taxes and related valuation allowance, may create fluctuations in the overall effective tax rate from period to period.
Due to overall cumulative losses incurred in recent years, the Company maintained a valuation allowance against its deferred tax assets as of June 30, 2019 and December 31, 2018.
The Company’s effective tax rate for the six months ended June 30, 2019 differed from the U.S. federal statutory rate primarily due to operating losses that receive no tax benefit as a result of a valuation allowance recorded against the Company's existing tax assets.
The total amount of unrecognized tax benefits, excluding associated interest and penalties, was $0.5 million as of June 30, 2019, all of which, if subsequently recognized, would have affected the Company's tax rate.
As of June 30, 2019 and December 31, 2018, there was no balance of accrued interest and penalties related to uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense, and the accrued interest and penalties are included in deferred and other current liabilities in the Company’s condensed consolidated balance sheets. There were no material interest or penalties included in income tax expenses for the three and six months ended June 30, 2019 and 2018.
The Company is subject to taxation in the U.S. and in various foreign and state jurisdictions. Due to expired statutes of limitation, the Company’s federal income tax returns for years prior to calendar year 2015 are not subject to examination by the U.S. Internal Revenue Service. Generally, for the majority of state jurisdictions where the Company does business, periods prior to calendar year 2014 are no longer subject to examination. The Company does not anticipate a significant change to the total amount of unrecognized tax benefits within the next twelve months.
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Subsequent Event |
6 Months Ended |
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Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | In December 2014, the Company entered into a Series Seed Preferred Stock Purchase Agreement with GoMoto in which the Company paid $100,000 for 317,460 shares of Series Seed Preferred Stock, $0.001 par value per share. In October 2015 and May 2016, the Company invested an additional $375,000 and $375,000 in each period in the form of convertible promissory notes. At December 31, 2017, both the GoMoto Notes and related interest receivable were fully reserved because the Company believed the amounts were not recoverable. Furthermore, based on continuing deterioration in GoMoto’s financial position, the Company believed that uncertainty existed in the recoverability of its remaining investment of $100,000 in GoMoto and, accordingly, recognized a loss on the investment for the year ended December 31, 2018. On January 29, 2019, the GoMoto Notes were converted into 1,781,047 shares of GoMoto’s Series A-2 Preferred Stock, $0.001 par value per share. The outstanding principal plus accrued interest under the GoMoto Notes was converted in accordance with the terms of the notes upon the closing of a new preferred stock financing and based on a discount to the price paid by the new investor for the investor’s preferred shares. On July 30, 2019, the Company entered into a Repurchase Agreement with GoMoto, pursuant to which GoMoto repurchased these 317,460 shares of Series Seed Preferred Stock and 1,781,047 shares of Series A-2 Preferred Stock from the Company for an aggregate purchase price of $250,000.
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Recent Accounting Pronouncements (Policies) |
6 Months Ended |
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Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Issued but not yet adopted by the Company
In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract” (“ASU 2018-15”). ASU 2018-15 was issued to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company is currently evaluating the impact of adopting the updated provisions which are effective for annual periods beginning after December 15, 2019, including interim periods within that reporting period, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements.
Recently adopted by the Company
Accounting Standards Codification 220 “Comprehensive Income.” In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. On January 1, 2019, the Company adopted ASU No. 2018-02 and it did not have a material effect on the consolidated financial statements and related disclosures.
Accounting Standards Codification 842 “Leases” (“ASC 842”) In February 2016, ASU No. 2016-02, “Leases (Topic 842)” was issued. This ASU was issued to increase transparency and comparability among organizations by requiring lessees to (i) recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet to represent the right to use the leased asset for the lease term and the obligation to make lease payments, and (ii) disclose key information about leasing arrangements. Some changes to the lessor accounting guidance were made to align both of the following: (i) the lessor accounting guidance with certain changes made to the lessee accounting guidance, and (ii) key aspects of the lessor accounting model with revenue recognition guidance.
The Company adopted the ASU effective January 1, 2019 utilizing the modified retrospective approach for adoption for all leases that existed at or commenced after the date of initial application with an option to use certain practical expedients. The package of practical expedients allowed the Company to not reassess: (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases. The Company also used (i) hindsight when evaluating contractual lease options, (ii) the practical expedient that allows lessees to treat lease and non-lease components of leases as a single lease component, and (iii) the portfolio approach which allows similar leased assets to be grouped and accounted for together. In addition, the Company implemented additional internal controls to evaluate future transactions in accordance with the standard.
The adoption of ASC 842 had a material impact on the consolidated balance sheet due to the recognition of ROU assets and lease liabilities. The adoption of this ASU did not have a material impact on the consolidated statement of operations or the consolidated statement of cash flows. The Company did not recognize a material cumulative effect adjustment to the opening balance sheet retained earnings on January 1, 2019. Because the modified retrospective approach was elected, the ASU was not applied to periods prior to adoption and did not have an impact on previously reported results. At adoption, the Company recognized operating lease ROU assets and lease liabilities that reflect the present value of the future payments. As the rate implicit in the lease could not be determined for any of the Company’s leases, an estimated incremental borrowing rate of 5.5% was used to determine the present value of lease payments. Based on the impact of ASC 842 on the lease population, the Company recorded $4.4 million in lease liabilities and $4.2 million for ROU assets based upon the lease liabilities adjusted for deferred rent. See Note 8 for additional information on leases.
SEC Release No. 33-10532, Disclosure Update and Simplification. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, “Disclosure Update and Simplification”, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule became effective on November 5, 2018, and the Company adopted the requirements in the first quarter of 2019. See “Unaudited Condensed Consolidated Statements of Stockholders’ Equity.”
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Revenue Recognition (Tables) |
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Revenue Recognition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from contracts |
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Net Loss Per Share and Stockholders' Equity (Tables) |
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Computation of basic and diluted net earnings (loss) per share |
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Share-Based Compensation (Tables) |
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Share-based compensation expense included in costs and expenses |
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Service based options granted during period |
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Fair value of stock options granted using the following weighted average assumptions |
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Stock option exercises |
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Selected Balance Sheet Accounts (Tables) |
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Property and equipment |
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Intangible assets amortized over the estimated useful lives |
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Future amortization expense |
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Lease liabilities |
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Aggregate lease maturities |
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Revenue Recognition (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Revenue from contracts with customers | $ 27,142 | $ 29,292 | $ 58,746 | $ 61,641 |
Lead Fees [Member] | ||||
Revenue from contracts with customers | 21,691 | 22,211 | 47,389 | 46,291 |
Click Advertising [Member] | ||||
Revenue from contracts with customers | 4,456 | 5,771 | 9,515 | 12,462 |
Display and Other Advertising [Member] | ||||
Revenue from contracts with customers | 976 | 1,179 | 1,795 | 2,575 |
Advertising [Member] | ||||
Revenue from contracts with customers | 5,432 | 6,950 | 11,310 | 15,037 |
Other Revenues [Member] | ||||
Revenue from contracts with customers | $ 19 | $ 131 | $ 47 | $ 313 |
Net Loss Per Share and Stockholders' Equity (Details) - shares |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Basic Shares: | ||||
Weighted average common shares outstanding | 13,147,741 | 12,920,591 | 13,066,617 | 12,965,520 |
Weighted average unvested restricted stock | (36,850) | (194,505) | (48,362) | (293,646) |
Basic shares | 13,110,891 | 12,726,086 | 13,018,255 | 12,671,874 |
Diluted Shares: | ||||
Basic shares | 13,110,891 | 12,726,086 | 13,018,255 | 12,671,874 |
Weighted average dilutive securities | 0 | 0 | 0 | 0 |
Diluted Shares | 13,110,891 | 12,726,086 | 13,018,255 | 12,671,874 |
Net Loss Per Share and Stockholders' Equity (Details Narrative) - shares |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Earnings Per Share [Abstract] | ||||
Anti-dilutive potential shares of common stock | 4,200,000 | 4,200,000 | 4,100,000 | 4,300,000 |
Share-Based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Share-based compensation expense: | ||||
Share-based compensation costs | $ 560 | $ 943 | $ 1,111 | $ 2,570 |
Amount capitalized to internal use software | 0 | 0 | 0 | 1 |
Total share-based compensation costs | 560 | 943 | 1,111 | 2,569 |
Cost of revenues [Member] | ||||
Share-based compensation expense: | ||||
Share-based compensation costs | 0 | 4 | 0 | 19 |
Sales and marketing [Member] | ||||
Share-based compensation expense: | ||||
Share-based compensation costs | 66 | 159 | 138 | 384 |
Technology support [Member] | ||||
Share-based compensation expense: | ||||
Share-based compensation costs | 52 | 173 | 93 | 326 |
General and administrative [Member] | ||||
Share-based compensation expense: | ||||
Share-based compensation costs | $ 442 | $ 607 | $ 880 | $ 1,841 |
Share-Based Compensation (Details 1) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Stock Issued or Granted During Period, Share-based Compensation | ||||
Number of service-based options granted | 140,000 | 1,715,200 | 1,182,883 | 1,716,700 |
Weighted average grant date fair value | $ 1.84 | $ 1.83 | $ 1.82 | $ 1.84 |
Weighted average exercise price | $ 3.45 | $ 3.29 | $ 3.42 | $ 3.30 |
Share-Based Compensation (Details 2) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Fair value of stock options granted using the following weighted average assumptions | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Volatility | 66.00% | 68.00% | 65.00% | 68.00% |
Risk-free interest rate | 2.20% | 2.60% | 2.50% | 2.60% |
Expected life | 4 years 4 months 24 days | 4 years 6 months | 4 years 4 months 24 days | 4 years 6 months |
Share-Based Compensation (Details 3) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Share-based Payment Arrangement [Abstract] | ||||
Number of stock options exercised | 57,036 | 750 | 213,048 | 15,967 |
Weighted average exercise price | $ 1.77 | $ 2.20 | $ 1.92 | $ 4.68 |
Selected Balance Sheet Accounts (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Property and Equipment | ||
Computer software and hardware | $ 12,440 | $ 11,393 |
Capitalized internal use software | 6,228 | 6,228 |
Furniture and equipment | 1,743 | 1,743 |
Leasehold improvements | 1,613 | 1,613 |
Property and equipment, gross | 22,024 | 20,977 |
Less - Accumulated depreciation and amortization | (18,619) | (17,796) |
Property and equipment, net | $ 3,405 | $ 3,181 |
Selected Balance Sheet Accounts (Details 2) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
Amortization expense for the remainder of the year and for the next five years | |
2019 | $ 2,187 |
2020 | 2,371 |
2021 | 1,499 |
2022 | 902 |
2023 | 86 |
Thereafter | 46 |
Total | $ 7,091 |
Selected Balance Sheet Accounts (Details 3) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Accrued expenses and other current liabilities | ||
Accrued employee-related benefits | $ 2,391 | $ 3,125 |
Other accrued expenses | 1,062 | 1,346 |
Amounts due to customers | 596 | 424 |
Other current liabilities | 406 | 434 |
Total other accrued expenses and other current liabilities | 2,064 | 2,204 |
Total accrued expenses and other current liabilities | $ 4,455 | $ 5,329 |
Leases (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Leases [Abstract] | ||
Current portion of lease liabilities | $ 1,552 | $ 0 |
Long term lease liabilities, net of current portion | 1,894 | $ 0 |
Total lease liabilities | $ 3,446 |
Leases (Details 1) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
2019 (remaining 6 months) | $ 872 |
2020 | 1,279 |
2021 | 513 |
2022 | 459 |
2023 | 472 |
Thereafter | 199 |
Total minimum lease payments | 3,794 |
Less imputed interest | (348) |
Total lease liabilities | $ 3,446 |
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