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 Number) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
Capital Market |
Large accelerated filer | ☐ | ☒ | ||||||||||||
Non-accelerated filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging growth company |
PART I. FINANCIAL INFORMATION | Page Number | |||||||
(Unaudited) June 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | |||||||||||
Inventories, net of reserves of $ | |||||||||||
Other receivables | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Current assets of discontinued operations | |||||||||||
Total current assets | |||||||||||
Property and equipment: | |||||||||||
Cost | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Operating lease right-of-use assets, net | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Long-term assets of discontinued operations | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Trade accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Current portion of long-term debt and finance lease obligations | |||||||||||
Deferred revenues | |||||||||||
Current liabilities of discontinued operations | |||||||||||
Total current liabilities | |||||||||||
Long-term debt and capital lease obligations, less current portion | |||||||||||
Deferred revenue, less current portion | |||||||||||
Operating lease liabilities, less current portion | |||||||||||
Other liabilities | |||||||||||
Long-term liabilities of discontinued operations | |||||||||||
Total liabilities | |||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
Shareholders' equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock at cost, | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Service fee revenue | $ | $ | $ | $ | |||||||||||||||||||
Product revenue, net | |||||||||||||||||||||||
Pass-through revenue | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Costs of Revenues: | |||||||||||||||||||||||
Cost of service fee revenue | |||||||||||||||||||||||
Cost of product revenue | |||||||||||||||||||||||
Cost of pass-through revenue | |||||||||||||||||||||||
Total costs of revenues | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Income (loss) from operations | ( | ( | |||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | ||||||||||||||||||||
Income tax expense (benefit), net | ( | ||||||||||||||||||||||
Net income (loss) from continuing operations | ( | ( | ( | ||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | ( | ( | ( | ||||||||||||||||||||
Income tax expense, net | |||||||||||||||||||||||
Net income (loss) from discontinued operations | ( | ( | ( | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||
Net income (loss) from continuing operations per share | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Net income (loss) from discontinued operations per share | ( | ( | ( | ||||||||||||||||||||
Basic loss per share | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||
Net income (loss) from continuing operations per share | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Net income (loss) from discontinued operations per share | ( | ( | ( | ||||||||||||||||||||
Diluted loss per share | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ||||||||||||||||||||
Total comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In | Accumulated | Comprehensive | Treasury Stock | Shareholders' | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Income (Loss) | Shares | Amount | Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under stock-based compensation awards | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Tax withholding on shares under stock-based compensation awards | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In | Accumulated | Comprehensive | Treasury Stock | Shareholders' | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Income (Loss) | Shares | Amount | Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under stock-based compensation awards | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Tax withholding on shares under stock-based compensation awards | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In | Accumulated | Comprehensive | Treasury Stock | Shareholders' | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Income (Loss) | Shares | Amount | Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under stock-based compensation awards | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Tax withholding on shares under stock-based compensation awards | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of taxes | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In | Accumulated | Comprehensive | Treasury Stock | Shareholders' | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Income (Loss) | Shares | Amount | Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under stock-based compensation awards | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Tax withholding on shares under stock-based compensation awards | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of taxes | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | ( | ||||||||||
Stock-based compensation expense | |||||||||||
Other | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses, other receivables and other assets | ( | ||||||||||
Operating leases | ( | ( | |||||||||
Trade accounts payable, deferred revenues, accrued expenses and other liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Proceeds from sale of property and equipment | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from issuance of common stock | |||||||||||
Taxes paid on behalf of employees for withheld shares | ( | ( | |||||||||
Payments on finance lease obligations | ( | ( | |||||||||
Payments on revolving loan | ( | ( | |||||||||
Borrowings on revolving loan | |||||||||||
Payments on other debt | ( | ( | |||||||||
Borrowings on other debt | |||||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | ( | ( | |||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Restricted cash, beginning of period | |||||||||||
Cash and cash equivalents discontinued operations, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash and cash equivalents, end of period | |||||||||||
Restricted cash, end of period | |||||||||||
Cash and cash equivalents discontinued operations, end of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for income taxes | $ | $ | |||||||||
Cash paid for interest | $ | $ | |||||||||
Non-cash investing and financing activities: | |||||||||||
Property and equipment acquired under long-term debt and finance leases | $ | $ |
December 31, 2020 | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
As Previously Reported | Discontinued Operations | Deferred Tax Asset | As Revised | ||||||||||||||||||||
Long-term assets of discontinued operations | $ | $ | $ | $ | |||||||||||||||||||
Total assets | $ | $ | — | $ | $ | ||||||||||||||||||
Accumulated deficit | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Total shareholders’ equity | $ | $ | — | $ | $ | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | $ | — | $ | $ |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
As Previously Reported | Discontinued Operations | Deferred Tax Asset | As Revised | ||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | $ | $ | ( | $ | — | $ | ( | ||||||||||||||||
Income tax expense (benefit), net | ( | ||||||||||||||||||||||
Net income (loss) from discontinued operations | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||
Net income (loss) from discontinued operations per share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Basic income (loss) per share | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||
Net income (loss) from discontinued operations per share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Diluted income (loss) per share | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||
Net income (loss) | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Total comprehensive income (loss) | $ | ( | $ | — | $ | $ | ( |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
As Previously Reported | Discontinued Operations | Deferred Tax Asset | As Revised | ||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | $ | $ | $ | — | $ | ||||||||||||||||||
Income tax expense (benefit), net | ( | ||||||||||||||||||||||
Net income (loss) from discontinued operations | ( | ||||||||||||||||||||||
Net income (loss) | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||
Net income (loss) from discontinued operations per share | $ | $ | ( | $ | $ | ||||||||||||||||||
Basic income (loss) per share | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||
Net income (loss) from discontinued operations per share | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted income (loss) per share | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||
Net income (loss) | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Total comprehensive income (loss) | $ | ( | $ | — | $ | $ | ( |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
Accumulated deficit | As Previously Reported | Discontinued Operations | Deferred Tax Asset | As Revised | |||||||||||||||||||
Balance, March 31, 2020 | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Net loss | ( | — | ( | ||||||||||||||||||||
Balance, June 30, 2020 | $ | ( | $ | — | $ | $ | ( |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
Accumulated deficit | As Previously Reported | Discontinued Operations | Deferred Tax Asset | As Revised | |||||||||||||||||||
Balance, December 31, 2019 | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Net loss | ( | — | ( | ||||||||||||||||||||
Balance, June 30, 2020 | $ | ( | $ | — | $ | $ | ( |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
As Previously Reported | Discontinued Operations | Deferred Tax Asset | As Revised | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net loss | $ | ( | $ | — | $ | $ | ( | ||||||||||||||||
Deferred income taxes | $ | $ | — | $ | ( | $ | |||||||||||||||||
Net cash used in operating activities | $ | ( | $ | — | $ | — | $ | ( |
(Unaudited) June 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | |||||||||||
Related party receivable | |||||||||||
Other receivables | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Current assets of discontinued operations | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of use assets | |||||||||||
Identifiable intangibles, net | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Long-term assets of discontinued operations | |||||||||||
Total assets of discontinued operations | $ | $ | |||||||||
LIABILITIES | |||||||||||
Current liabilities: | |||||||||||
Trade accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Current portion of long-term debt and finance lease obligations | |||||||||||
Deferred revenues | |||||||||||
Current liabilities of discontinued operations | |||||||||||
Long-term debt and capital lease obligations, less current portion | |||||||||||
Operating lease liabilities | |||||||||||
Long-term liabilities of discontinued operations | |||||||||||
Total liabilities of discontinued operations | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Service fee revenue | $ | $ | $ | $ | |||||||||||||||||||
Related party revenue | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Costs of revenues: | |||||||||||||||||||||||
Cost of service fee revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Income (loss) from discontinued operations before income taxes | ( | ( | ( | ||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income (loss) from discontinued operations | $ | ( | $ | ( | $ | ( | $ |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities discontinued operations: | |||||||||||
Depreciation and amortization | $ | $ | |||||||||
Stock-based compensation expense | $ | $ | |||||||||
Cash flows from investing activities discontinued operations: | |||||||||||
Capital expenditures | $ | $ |
June 30, 2021 | December 31, 2020 | ||||||||||
Contract Assets | |||||||||||
Costs to fulfill | $ | $ | |||||||||
Total contract assets | $ | $ | |||||||||
Contract Liabilities | |||||||||||
Accrued contract liabilities | $ | $ | |||||||||
Deferred revenue | |||||||||||
Total contract liabilities | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Over time | $ | $ | $ | $ | |||||||||||||||||||
Point-in-time | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues by region: | |||||||||||||||||||||||
North America | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
India | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
June 30, 2021 | December 31, 2020 | ||||||||||
U.S. Credit Agreement | |||||||||||
Revolver | $ | $ | |||||||||
Equipment loan | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Finance Leases | |||||||||||
Other | |||||||||||
Total | |||||||||||
Less current portion of long-term debt | |||||||||||
Long-term debt, less current portion | $ | $ |
Three Months Ended June 30, | % of Total Revenues | Six Months Ended June 30, | % of Total Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | 2021 | 2020 | Change | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service fee revenue | $ | 43,009 | $ | 44,852 | $ | (1,843) | 70.4 | % | 68.7 | % | $ | 88,529 | $ | 81,577 | $ | 6,952 | 72.7 | % | 65.6 | % | |||||||||||||||||||||||||||||||||||||||
Product revenue, net | $ | 4,492 | $ | 5,915 | $ | (1,423) | 7.3 | % | 9.1 | % | $ | 8,800 | $ | 13,447 | $ | (4,647) | 7.2 | % | 10.8 | % | |||||||||||||||||||||||||||||||||||||||
Pass-through revenue | $ | 13,598 | $ | 14,524 | $ | (926) | 22.3 | % | 22.2 | % | $ | 24,474 | $ | 29,393 | $ | (4,919) | 20.1 | % | 23.6 | % | |||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 61,099 | $ | 65,291 | $ | (4,192) | 100.0 | % | 100.0 | % | $ | 121,803 | $ | 124,417 | $ | (2,614) | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||||||||||||
Costs of Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of service fee revenue | $ | 31,863 | $ | 31,561 | $ | 302 | 74.1 | % | (1) | 70.4 | % | $ | 65,393 | $ | 56,833 | $ | 8,560 | 73.9 | % | (1) | 69.7 | % | |||||||||||||||||||||||||||||||||||||
Cost of product revenue | $ | 4,284 | $ | 5,590 | $ | (1,306) | 95.4 | % | (2) | 94.5 | % | $ | 8,370 | $ | 12,713 | $ | (4,343) | 95.1 | % | (2) | 94.5 | % | |||||||||||||||||||||||||||||||||||||
Cost of pass-through revenue | $ | 13,598 | $ | 14,524 | $ | (926) | 100.0 | % | (3) | 100.0 | % | $ | 24,474 | $ | 29,393 | $ | (4,919) | 100.0 | % | (3) | 100.0 | % | |||||||||||||||||||||||||||||||||||||
Total costs of revenues | $ | 49,745 | $ | 51,675 | $ | (1,930) | 81.4 | % | 79.1 | % | $ | 98,237 | $ | 98,939 | $ | (702) | 80.7 | % | 79.5 | % | |||||||||||||||||||||||||||||||||||||||
Service fee gross profit | $ | 11,146 | $ | 13,291 | $ | (2,145) | 25.9 | % | (1) | 29.6 | % | $ | 23,136 | $ | 24,744 | $ | (1,608) | 26.1 | % | (1) | 30.3 | % | |||||||||||||||||||||||||||||||||||||
Product revenue gross profit | $ | 208 | $ | 325 | $ | (117) | 4.6 | % | (2) | 5.5 | % | $ | 430 | $ | 734 | $ | (304) | 4.9 | % | (2) | 5.5 | % | |||||||||||||||||||||||||||||||||||||
Total gross profit | $ | 11,354 | $ | 13,616 | $ | (2,262) | 18.6 | % | 20.9 | % | $ | 23,566 | $ | 25,478 | $ | (1,912) | 19.3 | % | 20.5 | % | |||||||||||||||||||||||||||||||||||||||
Selling, General and Administrative expenses | $ | 15,678 | $ | 12,514 | $ | 3,164 | 25.7 | % | 19.2 | % | $ | 28,609 | $ | 25,075 | $ | 3,534 | 23.5 | % | 20.2 | % | |||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (4,324) | $ | 1,102 | $ | (5,426) | (7.1) | % | 1.7 | % | $ | (5,043) | $ | 403 | $ | (5,446) | (4.1) | % | 0.3 | % | |||||||||||||||||||||||||||||||||||||||
Interest expense, net | $ | 333 | $ | 374 | $ | (41) | 0.5 | % | 0.6 | % | $ | 708 | $ | 788 | $ | (80) | 0.6 | % | 0.6 | % | |||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (4,657) | $ | 728 | $ | (5,385) | (7.6) | % | 1.1 | % | $ | (5,751) | $ | (385) | $ | (5,366) | (4.7) | % | (0.3) | % | |||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit), net | $ | (155) | $ | 332 | $ | (487) | (0.3) | % | 0.5 | % | $ | 124 | $ | 613 | $ | (489) | 0.1 | % | 0.5 | % | |||||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | (4,502) | $ | 396 | $ | (4,898) | (7.4) | % | 0.6 | % | $ | (5,875) | $ | (998) | $ | (4,877) | (4.8) | % | (0.8) | % |
Exhibit No. | Description of Exhibits | |||||||
2.1 | ||||||||
2.1.1 | ||||||||
3.1 | ||||||||
3.1.1 | ||||||||
3.1.2 | ||||||||
3.1.3 | ||||||||
3.1.4 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.1.8 | ||||||||
10.101* | ||||||||
10.102* | ||||||||
10.103* | ||||||||
10.105* | ||||||||
10.106* | ||||||||
10.107* | ||||||||
10.108* | ||||||||
10.109* | ||||||||
31.1** | ||||||||
31.2** | ||||||||
32.1** | ||||||||
101** | The following unaudited financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income, (iii) Condensed Consolidated Statements of Shareholders' Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. | |||||||
104** | Cover Page Interactive Data file, formatted in Inline XBRL (included as Exhibit 101). |
PFSweb, Inc. | ||||||||
By: | /s/ Thomas J. Madden | |||||||
Thomas J. Madden | ||||||||
Chief Financial Officer | ||||||||
Executive Vice President | ||||||||
Vesting Date/Fiscal Year | Number of Vested Restricted Stock Units | ||||
December 31, 2021 | 33.33% of the number of Restricted Stock Units | ||||
December 31, 2022 | 33.33% of the number of Restricted Stock Units | ||||
December 31, 2023 | 33.34% of the number of Restricted Stock Units |
Vesting Date/Fiscal Year | Number of Vested Restricted Stock Units | ||||
December 31, 2021 | 33.33% of the number of Restricted Stock Units | ||||
December 31, 2022 | 33.33% of the number of Restricted Stock Units | ||||
December 31, 2023 | 33.34% of the number of Restricted Stock Units |
Achievement Level | Award Percentage | ||||
Less than 50th percentile | 0% | ||||
50th percentile | 50% | ||||
75th percentile or above | 130% | ||||
Date: | February 7, 2022 | ||||
By: | /s/ Michael Willoughby | ||||
Chief Executive Officer |
Date: | February 7, 2022 | ||||
By: | /s/ Thomas J. Madden | ||||
Chief Financial Officer |
February 7, 2022 | /s/ Michael Willoughby | |||||||
Michael Willoughby | ||||||||
Chief Executive Officer | ||||||||
February 7, 2022 | /s/ Thomas J. Madden | |||||||
Thomas J. Madden | ||||||||
Chief Financial Officer |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 548 | $ 611 |
Inventory reserves | $ 107 | $ 96 |
Preferred stock, par value (in USD per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 35,000,000 | 35,000,000 |
Common stock, shares issued (in shares) | 21,209,300 | 20,408,558 |
Common stock, shares outstanding (in shares) | 21,175,833 | 20,375,091 |
Treasury stock, shares (in shares) | 33,467 | 33,467 |
Basis of Presentation |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of PFSweb, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include all normal and recurring adjustments necessary to present fairly the unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss, statements of shareholders' equity, and statements of cash flows for the periods indicated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020. We refer to PFSweb, Inc. and its subsidiaries collectively as “PFSweb,” the “Company,” “us,” “we” and “our” in these unaudited condensed consolidated financial statements. In July 2021, we announced an agreement to sell our LiveArea Professional Services business unit ("LiveArea") and the divestiture was completed on August 25, 2021 ("the LiveArea Transaction"). As of June 30, 2021, the criteria for reporting LiveArea as a discontinued operation were met and as such, all periods presented in the Company's Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021 (this "Form 10-Q") have been recast to present LiveArea as a discontinued operation. Results of our operations for interim periods may not be indicative of results for the full fiscal year. See Note 3. Discontinued Operations and Note 9. Subsequent Events for additional information on our sale of LiveArea. Revision of previously issued consolidated financial statements In connection with the preparation of its financial statements for the quarter ended June 30, 2021, the Company identified an immaterial error related to deferred income taxes that were incorrectly recorded in prior periods. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality and SAB No. 108, Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the materiality of this error both quantitatively and qualitatively and determined that it was not material to any previously issued interim or annual consolidated financial statements. However, adjusting for the cumulative effect of this error in the consolidated statement of operations for the three months ended June 30, 2021 would be material to the Company’s results for this period as the cumulative amount of the error increased over time. As such, the Company has revised its previously issued consolidated balance sheet as of December 31, 2020 and its unaudited condensed consolidated financial statements for the three and six months ended June 30, 2020 to correct the error. The accompanying financial statements and relevant footnotes to the condensed consolidated financial statements in this Form 10-Q have been revised to correct for the immaterial error discussed above. The tables below provide reconciliations of our previously reported amounts to our revised amounts to correct for the immaterial error and to recast certain amounts in order to present LiveArea as a discontinued operation in the Company's consolidated balance sheet as of December 31, 2020 and its unaudited condensed consolidated financial statements for the three and six months ended June 30, 2020. See Note 3. Discontinued Operations and Note 9. Subsequent Events for additional information on our sale of LiveArea. The effect of the above adjustments on the consolidated balance sheet at December 31, 2020 is as follows (in thousands):
The effect of the above adjustments on the consolidated statement of operations and comprehensive income (loss) for the three months ended June 30, 2020 is as follows (in thousands, except per share data):
The effect of the above adjustments on the consolidated statement of operations and comprehensive income (loss) for the six months ended June 30, 2020 is as follows (in thousands, except per share data):
The effect of the above adjustments on the consolidated statement of shareholders’ equity for the three months ended June 30, 2020 is as follows (in thousands):
The effect of the above adjustments on the consolidated statement of shareholders’ equity for the six months ended June 30, 2020 is as follows (in thousands):
The effect of the above adjustments on the consolidated statement of cash flows for the six months ended June 30, 2020 is as follows (in thousands):
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Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The recognition and allocation of certain revenues, costs of revenues and selling, general and administrative expenses in these unaudited condensed consolidated financial statements also require management estimates and assumptions. Estimates and assumptions about future events and their effects cannot be determined with certainty. The Company bases its estimates on historical experience and various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as the operating environment changes. These changes have been included in the unaudited condensed consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. Based on a critical assessment of accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes the Company’s unaudited condensed consolidated financial statements are fairly stated in accordance with U.S. GAAP and provide a fair presentation of the Company’s financial position and results of operations. Furthermore, we considered the impact of the COVID-19 pandemic on the use of estimates and assumptions used for financial reporting and determined that there was no adverse material impact to our results of operations for the three and six months ended June 30, 2021; however, the extent and duration of future impacts of the COVID-19 pandemic and any resulting economic impact are largely unknown and difficult to predict due to these unknown factors which may have a material impact on our financial position and results of operations in the future. For a complete set of our significant accounting policies, refer to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. Other than the presentation of LiveArea as a discontinued operation, there were no changes to our significant accounting policies during the three and six-month periods ended June 30, 2021. Income Taxes For the three and six months ended June 30, 2021 and 2020, we have utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes—Interim Reporting,” to calculate the interim income tax provision. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year to date period as if it was the annual period and determines the income tax expense or benefit on that basis. We believe that, at this time, the use of this discrete method is more appropriate than the annual effective tax rate method as (i) the estimated annual effective tax rate method is not reliable due to the high degree of uncertainty in estimating annual pretax earnings by certain jurisdiction and (ii) our ongoing assessment that the recoverability of our deferred tax assets is not likely in certain jurisdictions. Impact of Recently Issued Accounting Standards Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as improve consistency of application by clarifying and amending existing guidance. The Company adopted ASU No. 2019-12 on January 1, 2021, the effect of which was not material on its financial position, results of operations, and cash flows. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," ("ASU 2016-13") which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019 for all public entities, excluding smaller reporting companies, and after December 15, 2022 for smaller reporting companies. It requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. We will adopt ASU 2016-13 on January 1, 2023. We are currently in the early phase of evaluating the impact of the adoption of ASU 2016-13 on our condensed consolidated financial statements.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations On July 2, 2021, the Company entered into a definitive agreement to sell LiveArea for $250.0 million in cash, subject to certain adjustments and customary closing conditions including receipt of regulatory approvals. The LiveArea Transaction closed on August 25, 2021. As of June 30, 2021, we met the criteria set forth in ASC 205-20, "Presentation of Financial Statements - Discontinued Operations"; therefore, the LiveArea segment has been presented as a discontinued operation for all periods presented in this Form 10-Q. As a result of the LiveArea Transaction, we now only operate in one business segment, PFS Operations, and therefore will no longer present segment data. See Note 9. Subsequent Events for additional information on our LiveArea Transaction. The following table presents the carrying amount of major classes of assets and liabilities of LiveArea and a reconciliation to the amounts reported in the condensed consolidated balance sheets (in thousands):
The following table presents the major components of net income (loss) of LiveArea and a reconciliation to the amounts reported in the unaudited condensed consolidated statements of operations (in thousands):
The following table presents the depreciation and amortization, capital expenditures and significant noncash operating items of LiveArea (in thousands):
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Revenue from Contracts with Clients and Customers |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Clients and Customers | Revenue from Contracts with Clients and Customers Contract Assets and Contract Liabilities Changes in costs to fulfill contract assets decreased $1.9 million from December 31, 2020 to June 30, 2021, due to a decrease of approximately $2.1 million for amortization and recognition of costs, offset by an increase of approximately $0.2 million from new projects in the six months ended June 30, 2021. Costs to fulfill contract assets relate to deferred costs, which are included within other current assets and/or other assets, and software development costs, which are included within property and equipment, in our condensed consolidated balance sheets. Changes in contract liabilities decreased $0.3 million from December 31, 2020 to June 30, 2021, due to a decrease of approximately $8.2 million for amortization and recognition of revenue, offset by an increase of approximately $7.9 million from new projects in the six months ended June 30, 2021. Contract losses recognized for the six months ended June 30, 2021 were not material. Accrued contract liabilities are included within accrued expenses in our condensed consolidated balance sheets. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, and customer advances and deposits (contract liabilities) on the condensed consolidated balance sheets. Changes in the contract asset and liability balances during the six months ended June 30, 2021 were not materially impacted by any other factors. Contract balances consist of the following (in thousands):
Remaining performance obligations represent the transaction price of firm orders for which work has not yet been performed. The amount reported for remaining performance obligations does not include 1) contracts that are less than one year in duration, 2) contracts for which we recognize revenue based on the right to invoice for services performed, or 3) variable consideration allocated entirely to a wholly unsatisfied performance obligation. Much of our revenue qualifies for one of these exemptions. As of June 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or more was $3.6 million. We expect to recognize revenue on approximately 51% of the remaining performance obligations in 2021, 37% in 2022, and the remaining recognized thereafter. Disaggregation of Revenues The following table presents our revenues, excluding sales and usage-based taxes, disaggregated by timing of revenue recognition (in thousands):
The following table presents our revenues, excluding sales and usage-based taxes, disaggregated by region (in thousands):
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Inventory Financing |
6 Months Ended |
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Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Inventory Financing | Inventory FinancingSupplies Distributors, an indirect wholly-owned subsidiary of the Company, has a short-term credit facility with IBM Credit LLC and its assignees (“IBM Credit Facility”) to finance its purchase and distribution of Ricoh products in the United States, providing financing for eligible Ricoh inventory and certain receivables up to $7.5 million, as per an amended agreement. The agreement has no stated maturity date and provides either party the ability to exit the facility following a 90-day notice. Given the structure of this facility and as outstanding balances, which represent inventory purchases, are repaid within twelve months, we have classified the outstanding amounts under this facility, which were $3.7 million and $3.6 million as of June 30, 2021 and December 31, 2020, respectively, as trade accounts payable in the condensed consolidated balance sheets. As of June 30, 2021, Supplies Distributors had $0.3 million of available credit under this facility. The IBM Credit Facility contains cross default provisions, various restrictions upon the ability of Supplies Distributors to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), provide guarantees, make investments and loans, pledge assets, make changes to capital stock ownership structure and pay dividends. The IBM Credit Facility also contains financial covenants, such as annualized revenue to working capital, net profit after tax to revenue, and total liabilities to tangible net worth, as defined, and is secured by certain of the assets of Supplies Distributors, as well as a collateralized guaranty of PFSweb. Additionally, PFSweb is required to maintain a minimum Subordinated Note receivable balance from Supplies Distributors of $1.0 million, as per an amended agreement. Borrowings under the IBM Credit Facility accrue interest, after a defined free financing period, at prime rate plus 0.5%, which resulted in a weighted average interest rate of 3.75% and 3.75% as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, the Company was in compliance with all financial covenants under the IBM Credit Facility, however, due to the late filing of this Form 10-Q, the Company became in violation of certain of its covenants under the IBM Credit Facility. On December 14, 2021, the Company received a consent from the lender thereunder, which waived the event of default caused by the late filing for an indefinite period of time. |
Debt and Finance Lease Obligations |
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Debt and Finance Lease Obligations | Debt and Finance Lease Obligations Outstanding debt and finance lease obligations consist of the following (in thousands):
U.S. Credit Agreement On November 1, 2018, we entered into Amendment No. 1 to our Credit Agreement with Regions Bank and certain other banking parties (the “Amended Facility”). The Amended Facility provided for an increase in availability of our revolving loans to $60.0 million, with the ability for a further increase of $20.0 million to a total of $80.0 million, and the elimination of the term loan. Amounts outstanding under the term loan were reconstituted as revolving loans. The Amended Facility also extended the maturity date to November 1, 2023 and provided for, subject to approval, up to an additional $10.0 million in equipment financing. As of June 30, 2021, we had no available credit under the Amended Facility. As of June 30, 2021 and December 31, 2020, the weighted average interest rate on the Amended Facility was 2.77% and 2.52%, respectively. As of June 30, 2021, we had approval for $1.6 million of available credit in equipment financing. Due to the late filing of this Form 10-Q, the Company was in violation of certain of its covenants under the Amended Facility. On August 11, 2021, the Company received a consent from the lenders thereunder, which waived the event of default caused by the late filing, and extended the delivery date of this Form 10-Q until August 31, 2021. While this waiver was not extended beyond this date, in connection with the LiveArea Transaction, all amounts outstanding under the Amended Facility were paid in full on August 25, 2021 and this Amended Facility was terminated. All amounts outstanding under the Amended Facility at June 30, 2021 have been included in current portion of long-term debt and finance lease obligations on the June 30, 2021 condensed consolidated balance sheet. See Note 9. Subsequent Events for additional information on the LiveArea Transaction.
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Earnings (Loss) Per Share |
6 Months Ended |
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Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per ShareBasic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding for the reporting period. Diluted earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common stock and common stock equivalents outstanding for the reporting period. In periods when we recognize a net loss from continuing operations, we exclude the impact of outstanding common stock equivalents from the diluted loss per share calculation as their inclusion would have an antidilutive effect. For the three and six month periods ended June 30, 2021 we had outstanding common stock equivalents of approximately 3.2 million for each period that have been excluded from the calculations of diluted earnings per share attributable to common stockholders because their effect would have been antidilutive. For the six months ended June 30, 2020 we had outstanding common stock equivalents of approximately 3.1 million that have been excluded from the calculations of diluted earnings per share attributable to common stockholders because their effect would have been antidilutive. |
Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to claims in the ordinary course of business, including claims of alleged infringement by the Company or its subsidiaries of the patents, trademarks and other intellectual property rights of third parties. The Company is generally required to indemnify its service fee clients against any third party claims asserted against such clients alleging infringement by the Company of the patents, trademarks and other intellectual property rights of third parties. While we are unable to determine the ultimate outcome of any liabilities resulting from these claims, we do not believe the resolution of any particular matter will have a material adverse effect on the Company’s financial position or results of operations. |
Subsequent Events |
6 Months Ended |
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Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On July 2, 2021, the Company entered into a definitive agreement to sell LiveArea for $250.0 million in cash, subject to certain adjustments and customary closing conditions including receipt of regulatory approvals. The LiveArea Transaction closed on August 25, 2021 for initial gross proceeds of approximately $250.0 million. As a result of the LiveArea Transaction, the Company expects to release a majority of its deferred tax valuation allowance applicable to its federal net operating loss carryforwards during the three months ended September 30, 2021. In connection with the LiveArea Transaction, the Company entered into a transaction services agreement with the purchaser to provide certain accounting and administrative services for a period of up to twelve months. Income generated from transaction services provided to the purchaser will be reflected in selling, general and administrative expenses from continuing operations in the condensed consolidated statement of operations for the three months ended September 30, 2021. On August 25, 2021, the Company used $62.7 million of the LiveArea Transaction proceeds to fully repay and extinguish its Amended Facility. As a result of the full repayment of our Amended Facility with Regions Bank, we recognized a $0.4 million loss on extinguishment of debt in the third quarter of 2021 which will be reflected in our results of continuing operations for the three months ended September 30, 2021. Additionally, in connection with the LiveArea Transaction, in July 2021 the Company's Board of Directors approved a modification to the Company's existing stock-based compensation plans to provide for accelerated vesting of certain restricted stock awards and stock options for LiveArea personnel. As a result of the LiveArea Transaction, approximately 635,000 shares of restricted stock and approximately 160,000 stock options previously awarded to certain executives and employees were accelerated and fully vested on August 25, 2021. Also as a result of the LiveArea Transaction, the Company's Board of Directors approved the full payout of the 2021 cash compensation plan to certain LiveArea executives and employees. We recorded incremental compensation expense of $3.3 million and $0.3 million related to the stock-based compensation modification and full targeted payout of the 2021 cash compensation plan, respectively, which will be reflected in the results of discontinued operations for the three months ended September 30, 2021 and an additional total of $0.7 million will be reflected in the results of continuing operations during the period from October 1, 2021 through March 31, 2022. Furthermore, certain executives and employees of PFSweb, Inc., including the LiveArea business segment, received cash transaction bonuses as a result of the successful completion of the LiveArea Transaction. Compensation expense of $1.0 million and $3.5 million will be reflected in the results of continuing operations and discontinued operations, respectively, for the three months ended September 30, 2021. See Note 3. Discontinued Operations for additional information on the LiveArea Transaction.
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Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of PFSweb, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include all normal and recurring adjustments necessary to present fairly the unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss, statements of shareholders' equity, and statements of cash flows for the periods indicated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020. We refer to PFSweb, Inc. and its subsidiaries collectively as “PFSweb,” the “Company,” “us,” “we” and “our” in these unaudited condensed consolidated financial statements. In July 2021, we announced an agreement to sell our LiveArea Professional Services business unit ("LiveArea") and the divestiture was completed on August 25, 2021 ("the LiveArea Transaction"). As of June 30, 2021, the criteria for reporting LiveArea as a discontinued operation were met and as such, all periods presented in the Company's Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021 (this "Form 10-Q") have been recast to present LiveArea as a discontinued operation. Results of our operations for interim periods may not be indicative of results for the full fiscal year. See Note 3. Discontinued Operations and Note 9. Subsequent Events for additional information on our sale of LiveArea.
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Use of Estimates | Use of Estimates The preparation of consolidated financial statements and related disclosures in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The recognition and allocation of certain revenues, costs of revenues and selling, general and administrative expenses in these unaudited condensed consolidated financial statements also require management estimates and assumptions. Estimates and assumptions about future events and their effects cannot be determined with certainty. The Company bases its estimates on historical experience and various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as the operating environment changes. These changes have been included in the unaudited condensed consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. Based on a critical assessment of accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes the Company’s unaudited condensed consolidated financial statements are fairly stated in accordance with U.S. GAAP and provide a fair presentation of the Company’s financial position and results of operations. Furthermore, we considered the impact of the COVID-19 pandemic on the use of estimates and assumptions used for financial reporting and determined that there was no adverse material impact to our results of operations for the three and six months ended June 30, 2021; however, the extent and duration of future impacts of the COVID-19 pandemic and any resulting economic impact are largely unknown and difficult to predict due to these unknown factors which may have a material impact on our financial position and results of operations in the future.
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Income Taxes | Income Taxes For the three and six months ended June 30, 2021 and 2020, we have utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes—Interim Reporting,” to calculate the interim income tax provision. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year to date period as if it was the annual period and determines the income tax expense or benefit on that basis. We believe that, at this time, the use of this discrete method is more appropriate than the annual effective tax rate method as (i) the estimated annual effective tax rate method is not reliable due to the high degree of uncertainty in estimating annual pretax earnings by certain jurisdiction and (ii) our ongoing assessment that the recoverability of our deferred tax assets is not likely in certain jurisdictions.
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Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, as well as improve consistency of application by clarifying and amending existing guidance. The Company adopted ASU No. 2019-12 on January 1, 2021, the effect of which was not material on its financial position, results of operations, and cash flows. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," ("ASU 2016-13") which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019 for all public entities, excluding smaller reporting companies, and after December 15, 2022 for smaller reporting companies. It requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. We will adopt ASU 2016-13 on January 1, 2023. We are currently in the early phase of evaluating the impact of the adoption of ASU 2016-13 on our condensed consolidated financial statements.
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Basis of Presentation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | The effect of the above adjustments on the consolidated balance sheet at December 31, 2020 is as follows (in thousands):
The effect of the above adjustments on the consolidated statement of operations and comprehensive income (loss) for the three months ended June 30, 2020 is as follows (in thousands, except per share data):
The effect of the above adjustments on the consolidated statement of operations and comprehensive income (loss) for the six months ended June 30, 2020 is as follows (in thousands, except per share data):
The effect of the above adjustments on the consolidated statement of shareholders’ equity for the three months ended June 30, 2020 is as follows (in thousands):
The effect of the above adjustments on the consolidated statement of shareholders’ equity for the six months ended June 30, 2020 is as follows (in thousands):
The effect of the above adjustments on the consolidated statement of cash flows for the six months ended June 30, 2020 is as follows (in thousands):
|
Discontinued Operations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Disposal Groups Including Discontinued Operations | The following table presents the carrying amount of major classes of assets and liabilities of LiveArea and a reconciliation to the amounts reported in the condensed consolidated balance sheets (in thousands):
The following table presents the major components of net income (loss) of LiveArea and a reconciliation to the amounts reported in the unaudited condensed consolidated statements of operations (in thousands):
The following table presents the depreciation and amortization, capital expenditures and significant noncash operating items of LiveArea (in thousands):
|
Revenue from Contracts with Clients and Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Contract Balances | Contract balances consist of the following (in thousands):
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Summary of Revenues Disaggregated by Revenue Source and Region | The following table presents our revenues, excluding sales and usage-based taxes, disaggregated by timing of revenue recognition (in thousands):
The following table presents our revenues, excluding sales and usage-based taxes, disaggregated by region (in thousands):
|
Debt and Finance Lease Obligations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt and Finance Lease Obligations | Outstanding debt and finance lease obligations consist of the following (in thousands):
|
Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Statement of Financial Position [Abstract] | ||||
Net income (loss) from discontinued operations | $ (3,118) | $ (1,249) | $ (3,967) | $ 47 |
Income tax expense, net | $ 2,528 | $ 161 | $ 2,557 | $ 186 |
Basis of Presentation - Cash Flow (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net loss | $ (7,620) | $ (853) | $ (9,842) | $ (951) |
Deferred income taxes | (77) | 102 | ||
Net cash used in operating activities | $ (324) | (2,804) | ||
As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net loss | (987) | (1,218) | ||
Deferred income taxes | 369 | |||
Net cash used in operating activities | (2,804) | |||
Adjustments | Deferred Tax Asset | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net loss | $ 134 | 267 | ||
Deferred income taxes | $ (267) |
Discontinued Operations - Significant Noncash Operating (Details) - Live Area - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Cash flows from operating activities discontinued operations: | ||
Depreciation and amortization | $ 405 | $ 537 |
Stock-based compensation expense | 1,056 | 2,400 |
Cash flows from investing activities discontinued operations: | ||
Capital expenditures | $ 102 | $ 12 |
Revenue from Contracts with Clients and Customers - Additional Information (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Changes in costs to fulfill contract assets | $ 1.9 |
Amortization of costs to fulfill contract assets | 2.1 |
Increase in costs to fulfill contracts with customers from new projects | 0.2 |
Change in contract liabilities | (0.3) |
Change in contract liabilities from amortization and recognition and recognition of revenue | 8.2 |
Increase in contract liabilities for new projects | $ 7.9 |
Revenue from Contracts with Clients and Customers - Summary of Contract Balances (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Contract Assets | ||
Costs to fulfill | $ 3,651 | $ 5,575 |
Contract with Customer, Liability [Abstract] | ||
Accrued contract liabilities | 2,271 | 1,214 |
Deferred revenue | 4,590 | 5,936 |
Total contract liabilities | $ 6,861 | $ 7,150 |
Revenue from Contracts with Clients and Customers - Additional Information, Performance Obligation (Details) $ in Millions |
Jun. 30, 2021
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Performance obligation, amount | $ 3.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation, percentage | 51.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected timing of satisfaction | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation, percentage | 37.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected timing of satisfaction | 1 year |
Revenue from Contracts with Clients and Customers - Summary of Revenues Disaggregated (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 61,099 | $ 65,291 | $ 121,803 | $ 124,417 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 50,743 | 50,770 | 99,287 | 99,994 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,356 | 14,521 | 22,516 | 24,423 |
India | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 56,607 | 59,376 | 113,003 | 110,970 |
Point-in-time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 4,492 | $ 5,915 | $ 8,800 | $ 13,447 |
Inventory Financing - Additional Information (Details) - Line of Credit - Short Term Credit Facility - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Line of Credit Facility [Line Items] | ||
Maximum credit under credit agreement | $ 7.5 | |
Termination notice period | 90 days | |
Outstanding borrowings | $ 3.7 | $ 3.6 |
Available credit under credit agreement | 0.3 | |
Subordinated note outstanding, minimum limit | $ 1.0 | |
Weighted average interest rate | 3.75% | 3.75% |
Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Variable rate basis | 0.50% |
Debt and Finance Lease Obligations - Summary of Outstanding Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Instrument [Line Items] | ||
Finance Leases | $ 567 | $ 1,049 |
Other | 86 | 120 |
Total | 49,883 | 42,480 |
Less current portion of long-term debt | 49,732 | 3,411 |
Long-term debt, less current portion | 151 | 39,069 |
U.S. Credit Agreement | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (184) | (224) |
U.S. Credit Agreement | Revolver | ||
Debt Instrument [Line Items] | ||
U.S. Credit Agreement | 41,300 | 33,500 |
U.S. Credit Agreement | Equipment loan | ||
Debt Instrument [Line Items] | ||
U.S. Credit Agreement | $ 8,114 | $ 8,035 |
Debt and Finance Lease Obligations - U.S. Credit Agreement - Additional Information (Details) - U.S. Credit Agreement - Revolving Loan Facility - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2020 |
Nov. 01, 2018 |
---|---|---|---|
Line of Credit Facility [Line Items] | |||
Availability under credit agreement | $ 60,000,000 | ||
Available increase under credit agreement | 20,000,000 | ||
Availability under credit agreement after available increase under credit agreement | 80,000,000 | ||
Availability under credit agreement for equipment purchases | $ 10,000,000 | ||
Available credit under credit agreement | $ 0 | ||
Weighted average interest rate on outstanding borrowings | 2.77% | 2.52% | |
Available credit under credit agreement for equipment purchases | $ 1,600,000 |
Earnings (Loss) Per Share - Additional Information (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Earnings Per Share [Abstract] | |||
Outstanding common stock excluded from calculations of diluted earnings per share (in shares) | 3.2 | 3.2 | 3.1 |
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