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Acquisition Related Liabilities
12 Months Ended
Dec. 31, 2022
Acquisition Related Liabilities [Abstract]  
Acquisition-Related Liabilities

NOTE 8—Acquisition-Related Liabilities

The following is a summary of acquisition-related liabilities:

 

 

eBay
CRM

 

 

Sizmek

 

 

IgnitionOne

 

 

Kinetic

 

 

Vital

 

 

Apptness

 

 

ArcaMax

 

 

Total

 

Balance as of January 1, 2021

 

$

17,137

 

 

$

4,402

 

 

$

1,360

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

23,155

 

Additions

 

 

-

 

 

 

-

 

 

 

-

 

 

 

24

 

 

 

2,840

 

 

 

9,144

 

 

 

-

 

 

 

12,008

 

Settlement during the year

 

 

-

 

 

 

(533

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(533

)

Payments made during the year

 

 

(9,786

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(9,850

)

Change in fair value of earn-out

 

 

649

 

 

 

(1,942

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(338

)

 

 

-

 

 

 

(1,823

)

Balance as of December 31, 2021

 

$

8,000

 

 

$

1,927

 

 

$

1,360

 

 

$

24

 

 

$

2,840

 

 

$

8,806

 

 

$

 

 

$

22,957

 

Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,539

 

 

 

7,539

 

Payments made during the year

 

 

 

 

 

(2,168

)

 

 

 

 

 

(205

)

 

 

(1,105

)

 

 

(7,333

)

 

 

 

 

 

(10,811

)

Change in fair value of earn-out

 

 

 

 

 

241

 

 

 

 

 

 

1,073

 

 

 

565

 

 

 

8,828

 

 

 

2,283

 

 

 

12,990

 

Balance as of December 31, 2022

 

$

8,000

 

 

$

 

 

$

1,360

 

 

$

892

 

 

$

2,300

 

 

$

10,301

 

 

$

9,822

 

 

$

32,675

 

During the year ended December 31, 2022, the businesses acquired by the Company in its Kinetic, Vital, Apptness and ArcaMax acquisitions have performed better than the estimates used for the initial purchase price allocation, as such the Company recorded the changes in the fair value of the earn-outs, which are included in other expenses on the consolidated statements of operations and comprehensive loss.

The Company is a party to a litigation matter in relation to certain acquisition related liabilities for its eBay CRM acquisition dated November 2, 2015. The Company has recorded a liability of $8,000 as of December 31, 2022 which is still being contested by the Company and in view of the numerous legal, technical and factual issues involved in these lawsuits, the Company may resolve the remaining liabilities in any amount higher or lower than the accruals.

On March 10, 2022, the Company entered into a settlement agreement with the sellers of Sizmek to resolve the dispute related to the contingent purchase consideration payable in connection with the Sizmek acquisition made during the year ended December 31, 2019. As such, the Company paid $1,085 in cash and issued 100,000 shares of Class A common stock valued at $1,083, during the year ended December 31, 2022. As a result of this settlement, the Company accrued an additional amount of $241 during the year ended December 31, 2022, which was recorded as a change in fair value of earn-out under other expenses on the consolidated statements of operations and comprehensive loss.