(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices, including zip code) | |||||
( | |||||
(Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Accelerated Filer ☐ | Non-Accelerated Filer ☐ | |||||||
Smaller Reporting Company | Emerging Growth Company |
Item Number | Description | Page | ||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Assets | September 30, 2023 | December 31, 2022 | |||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Cash held on behalf of customers | |||||||||||
Short-term investments | |||||||||||
Accounts receivable – net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment – net | |||||||||||
Goodwill | |||||||||||
Intangible assets – net | |||||||||||
Lease right-of-use assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued salaries and benefits | |||||||||||
Accrued expenses | |||||||||||
Customers payable | |||||||||||
Lease liabilities – current portion | |||||||||||
Customer deposits and deferred service revenue | |||||||||||
Total current liabilities | |||||||||||
Lease liabilities – net of current portion | |||||||||||
Deferred service revenue – noncurrent | |||||||||||
Long-term debt | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues, net: | |||||||||||||||||||||||
Hardware | $ | $ | $ | $ | |||||||||||||||||||
Subscription service | |||||||||||||||||||||||
Professional service | |||||||||||||||||||||||
Contract | |||||||||||||||||||||||
Total revenues, net | |||||||||||||||||||||||
Costs of sales: | |||||||||||||||||||||||
Hardware | |||||||||||||||||||||||
Subscription service | |||||||||||||||||||||||
Professional service | |||||||||||||||||||||||
Contract | |||||||||||||||||||||||
Total cost of sales | |||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Amortization of identifiable intangible assets | |||||||||||||||||||||||
Adjustment to contingent consideration liability | ( | ||||||||||||||||||||||
Gain on insurance proceeds | ( | ||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating loss | ( | ( | ( | ( | |||||||||||||||||||
Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Loss before provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per share (basic and diluted) | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average shares outstanding (basic and diluted) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive loss, net of applicable tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||||||||
Comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
Common Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net issuance of restricted stock awards and restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired from employees upon vesting or forfeiture of restricted stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net issuance of restricted stock awards and restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired from employees upon vesting or forfeiture of restricted stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net issuance of restricted stock awards and restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired from employees upon vesting or forfeiture of restricted stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2022 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net issuance of restricted stock awards and restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired from employees upon vesting or forfeiture of restricted stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net issuance of restricted stock awards and restricted stock units | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired from employees upon vesting or forfeiture of restricted stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net issuance of restricted stock awards and restricted stock units | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for acquisition | |||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired from employees upon vesting or forfeiture of restricted stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Accretion of debt in interest expense | |||||||||||
Current expected credit losses | |||||||||||
Provision for obsolete inventory | ( | ||||||||||
Stock-based compensation | |||||||||||
Adjustment to contingent consideration liability | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ||||||||||
Other current assets | ( | ||||||||||
Other assets | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued salaries and benefits | ( | ||||||||||
Accrued expenses | ( | ||||||||||
Customer deposits and deferred service revenue | ( | ( | |||||||||
Customers payable | |||||||||||
Other long-term liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Cash paid for acquisitions, net of cash acquired | ( | ||||||||||
Capital expenditures | ( | ( | |||||||||
Capitalization of software costs | ( | ( | |||||||||
Proceeds from (purchase of) held to maturity investments | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Principal payments of long-term debt | ( | ||||||||||
Treasury stock acquired from employees upon vesting or forfeiture of restricted stock | ( | ( | |||||||||
Proceeds from exercise of stock options | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net decrease in cash and cash equivalents and cash held on behalf of customers | ( | ( | |||||||||
Cash and cash equivalents and cash held on behalf of customers at beginning of period | |||||||||||
Cash and cash equivalents and cash held on behalf of customers at end of period | $ | $ | |||||||||
Reconciliation of cash and cash equivalents and cash held on behalf of customers | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Cash held on behalf of customers | |||||||||||
Total cash and cash equivalents and cash held on behalf of customers | $ | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | |||||||||||
Capitalized software recorded in accounts payable | |||||||||||
Capital expenditures in accounts payable | |||||||||||
Common stock issued for acquisition | |||||||||||
Acquisition contingent consideration recorded in other long-term liabilities |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Cash and cash equivalents | |||||||||||
Cash | $ | $ | |||||||||
Money market funds | |||||||||||
Cash held on behalf of customers | |||||||||||
Total cash and cash equivalents and cash held on behalf of customers | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Short-term investments | |||||||||||
Treasury bills and notes | |||||||||||
Total short-term investments | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Current under one year | Non-current over one year | Current under one year | Non-current over one year | ||||||||||||||||||||
Restaurant/Retail | $ | $ | $ | $ | |||||||||||||||||||
Government | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(in thousands) | 2023 | 2022 | |||||||||
Beginning balance - January 1 | $ | $ | |||||||||
Acquired deferred revenue (Note 3) | |||||||||||
Recognition of deferred revenue | ( | ( | |||||||||
Deferral of revenue | |||||||||||
Ending balance - September 30 | $ | $ |
(in thousands) | |||||
Next 12 months | $ | ||||
Months 13-24 | |||||
Months 25-36 | |||||
Thereafter | |||||
Total | $ |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||
(in thousands) | Restaurant/Retail point in time | Restaurant/Retail over time | Government point in time | Government over time | |||||||||||||||||||
Hardware | $ | $ | $ | $ | |||||||||||||||||||
Subscription service | |||||||||||||||||||||||
Professional service | |||||||||||||||||||||||
Mission systems | |||||||||||||||||||||||
Intelligence, surveillance, and reconnaissance solutions | |||||||||||||||||||||||
Commercial software | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended September 30, 2022 | |||||||||||||||||||||||
(in thousands) | Restaurant/Retail point in time | Restaurant/Retail over time | Government point in time | Government over time | |||||||||||||||||||
Hardware | $ | $ | $ | $ | |||||||||||||||||||
Subscription service | |||||||||||||||||||||||
Professional service | |||||||||||||||||||||||
Mission systems | |||||||||||||||||||||||
Intelligence, surveillance, and reconnaissance solutions | |||||||||||||||||||||||
Commercial software | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Restaurant/Retail point in time | Restaurant/Retail over time | Government point in time | Government over time | ||||||||||||||||||||
Hardware | $ | $ | $ | $ | |||||||||||||||||||
Subscription service | |||||||||||||||||||||||
Professional service | |||||||||||||||||||||||
Mission systems | |||||||||||||||||||||||
Intelligence, surveillance, and reconnaissance solutions | |||||||||||||||||||||||
Commercial software | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
Restaurant/Retail point in time | Restaurant/Retail over time | Government point in time | Government over time | ||||||||||||||||||||
Hardware | $ | $ | $ | $ | |||||||||||||||||||
Subscription service | |||||||||||||||||||||||
Professional service | |||||||||||||||||||||||
Mission systems | |||||||||||||||||||||||
Intelligence, surveillance, and reconnaissance solutions | |||||||||||||||||||||||
Commercial software | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(in thousands) | Purchase price allocation | ||||
Cash | $ | ||||
Accounts receivable | |||||
Property and equipment | |||||
Developed technology | |||||
Prepaid and other acquired assets | |||||
Goodwill | |||||
Total assets | |||||
Accounts payable and accrued expenses | |||||
Deferred revenue | |||||
Earn-out liability | |||||
Consideration paid | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Government segment | $ | $ | |||||||||
Restaurant/Retail segment | |||||||||||
Accounts receivable, net | $ | $ |
(in thousands) | 2023 | 2022 | |||||||||
Beginning Balance - January 1 | $ | $ | |||||||||
Provisions | |||||||||||
Write-offs | ( | ( | |||||||||
Ending Balance - September 30 | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Finished goods | $ | $ | |||||||||
Work in process | |||||||||||
Component parts | |||||||||||
Service parts | |||||||||||
Inventories, net | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | Estimated Useful Life | Weighted-Average Amortization Period | |||||||||||||||||||
Acquired developed technology | $ | $ | |||||||||||||||||||||
Internally developed software costs | |||||||||||||||||||||||
Customer relationships | |||||||||||||||||||||||
Trade names | |||||||||||||||||||||||
Non-competition agreements | |||||||||||||||||||||||
Impact of currency translation on intangible assets | |||||||||||||||||||||||
Less: accumulated amortization | ( | ( | |||||||||||||||||||||
Internally developed software costs not meeting general release threshold | |||||||||||||||||||||||
Trademarks, trade names (non-amortizable) | Indefinite | ||||||||||||||||||||||
$ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Amortization of acquired developed technology | $ | $ | $ | $ | ||||||||||||||||||||||
Amortization of internally developed software | ||||||||||||||||||||||||||
Impact of foreign currency translation on intangible assets | ( |
(in thousands) | |||||
2023, remaining | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total | $ |
(in thousands) | |||||
Beginning balance - December 31, 2022 | $ | ||||
Foreign currency translation | |||||
Ending balance - September 30, 2023 | $ |
(in thousands) | 2024 Notes | 2026 Notes | 2027 Notes | Total | |||||||||||||||||||
Principal amount of notes outstanding | $ | $ | $ | $ | |||||||||||||||||||
Unamortized debt issuance cost | ( | ( | ( | ( | |||||||||||||||||||
Total long-term notes payable | $ | $ | $ | $ |
(in thousands) | 2024 Notes | 2026 Notes | 2027 Notes | Total | |||||||||||||||||||
Principal amount of notes outstanding | $ | $ | $ | $ | |||||||||||||||||||
Unamortized debt issuance cost | ( | ( | ( | ( | |||||||||||||||||||
Total long-term notes payable | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Contractual interest expense | $ | $ | $ | $ | |||||||||||||||||||
Accretion of debt in interest expense | |||||||||||||||||||||||
Total interest expense | $ | $ | $ | $ |
(in thousands) | |||||
2023, remaining | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total | $ |
(in thousands, except for weighted average exercise price) | Options outstanding | Weighted average exercise price | |||||||||
Outstanding at January 1, 2023 | $ | ||||||||||
Exercised | ( | ||||||||||
Canceled/forfeited | ( | ||||||||||
Outstanding at September 30, 2023 | $ |
(in thousands, except for weighted average award value) | Restricted Stock Unit Awards | Weighted average award value | |||||||||
Outstanding at January 1, 2023 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Canceled/forfeited | ( | ||||||||||
Outstanding at September 30, 2023 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Restaurant/Retail | $ | $ | $ | $ | |||||||||||||||||||
Government | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Operating (loss) income: | |||||||||||||||||||||||
Restaurant/Retail | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Government | |||||||||||||||||||||||
Total | ( | ( | ( | ( | |||||||||||||||||||
Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Loss before provision for income taxes | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Depreciation, amortization and accretion: | |||||||||||||||||||||||
Restaurant/Retail | $ | $ | $ | $ | |||||||||||||||||||
Government | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Capital expenditures including software costs: | |||||||||||||||||||||||
Restaurant/Retail | $ | $ | $ | $ | |||||||||||||||||||
Government | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Revenues by country: | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
International | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Restaurant/Retail | $ | $ | |||||||||
Government | |||||||||||
Other | |||||||||||
Total | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
United States | $ | $ | |||||||||
Other Countries | |||||||||||
Total | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Restaurant/Retail | $ | $ | |||||||||
Government | |||||||||||
Total | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Restaurant/Retail reporting segment: | |||||||||||||||||||||||
Yum! Brands, Inc. | % | % | % | % | |||||||||||||||||||
McDonald’s Corporation | % | % | % | % | |||||||||||||||||||
Government reporting segment: | |||||||||||||||||||||||
U.S. Department of Defense | % | % | % | % | |||||||||||||||||||
All Others | % | % | % | % | |||||||||||||||||||
% | % | % | % |
(in thousands) | |||||
Balance at December 31, 2022 | $ | ||||
Change in fair value of contingent consideration | ( | ||||
Balance at September 30, 2023 | $ |
September 30, 2023 | ||||||||||||||||||||||||||||||||
Contingency Type | Maximum Payout (1) (undiscounted) (in thousands) | Fair Value | Valuation Technique | Unobservable Inputs | Weighted Average or Range | |||||||||||||||||||||||||||
Revenue based payments | $ | $ | Monte Carlo | Revenue volatility | % | |||||||||||||||||||||||||||
Discount rate | % | |||||||||||||||||||||||||||||||
Projected year of payments | 2024 |
Three Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Revenues, net: | |||||||||||||||||||||||||||||
Hardware | $ | 25,824 | $ | 31,343 | 24.1 | % | 33.8 | % | (17.6) | % | |||||||||||||||||||
Subscription services | 31,363 | 25,170 | 29.3 | % | 27.1 | % | 24.6 | % | |||||||||||||||||||||
Professional services | 11,514 | 11,840 | 10.7 | % | 12.8 | % | (2.8) | % | |||||||||||||||||||||
Contract | 38,433 | 24,414 | 35.9 | % | 26.3 | % | 57.4 | % | |||||||||||||||||||||
Total revenues, net | $ | 107,134 | $ | 92,767 | 100.0 | % | 100.0 | % | 15.5 | % | |||||||||||||||||||
Gross margin | |||||||||||||||||||||||||||||
Hardware | $ | 6,529 | $ | 5,885 | 6.1 | % | 6.3 | % | 10.9 | % | |||||||||||||||||||
Subscription services | 15,866 | 12,116 | 14.8 | % | 13.1 | % | 31.0 | % | |||||||||||||||||||||
Professional services | 2,739 | 873 | 2.6 | % | 0.9 | % | > 200% | ||||||||||||||||||||||
Contract | 3,052 | 2,534 | 2.8 | % | 2.7 | % | 20.4 | % | |||||||||||||||||||||
Total gross margin | $ | 28,186 | $ | 21,408 | 26.3 | % | 23.1 | % | 31.7 | % | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Selling, general and administrative | $ | 26,249 | $ | 26,543 | 24.5 | % | 28.6 | % | (1.1) | % | |||||||||||||||||||
Research and development | 14,660 | 12,843 | 13.7 | % | 13.8 | % | 14.1 | % | |||||||||||||||||||||
Amortization of identifiable intangible assets | 464 | 465 | 0.4 | % | 0.5 | % | (0.2) | % | |||||||||||||||||||||
Total operating expenses | $ | 41,373 | $ | 39,851 | 38.6 | % | 43.0 | % | 3.8 | % | |||||||||||||||||||
Loss from operations | $ | (13,187) | $ | (18,443) | (12.3) | % | (19.9) | % | (28.5) | % | |||||||||||||||||||
Other expense, net | (373) | (179) | (0.3) | % | (0.2) | % | 108.4 | % | |||||||||||||||||||||
Interest expense, net | (1,750) | (2,140) | (1.6) | % | (2.3) | % | (18.2) | % | |||||||||||||||||||||
Loss before benefit from income taxes | (15,310) | (20,762) | (14.3) | % | (22.4) | % | (26.3) | % | |||||||||||||||||||||
Provision for income taxes | (206) | (578) | (0.2) | % | (0.6) | % | (64.4) | % | |||||||||||||||||||||
Net loss | $ | (15,516) | $ | (21,340) | (14.5) | % | (23.0) | % | (27.3) | % |
Nine Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Revenues, net: | |||||||||||||||||||||||||||||
Hardware | $ | 78,991 | $ | 84,820 | 25.6 | % | 32.9 | % | (6.9) | % | |||||||||||||||||||
Subscription service | 89,700 | 69,591 | 29.1 | % | 27.0 | % | 28.9 | % | |||||||||||||||||||||
Professional service | 38,123 | 36,959 | 12.4 | % | 14.3 | % | 3.1 | % | |||||||||||||||||||||
Contract | 101,301 | 66,775 | 32.9 | % | 25.9 | % | 51.7 | % | |||||||||||||||||||||
Total revenues, net | $ | 308,115 | $ | 258,145 | 100.0 | % | 100.0 | % | 19.4 | % | |||||||||||||||||||
Gross margin | |||||||||||||||||||||||||||||
Hardware | $ | 15,989 | $ | 15,154 | 5.2 | % | 5.9 | % | 5.5 | % | |||||||||||||||||||
Subscription service | 43,045 | 35,259 | 14.0 | % | 13.7 | % | 22.1 | % | |||||||||||||||||||||
Professional service | 6,198 | 6,310 | 2.0 | % | 2.4 | % | (1.8) | % | |||||||||||||||||||||
Contract | 6,677 | 6,419 | 2.2 | % | 2.5 | % | 4.0 | % | |||||||||||||||||||||
Total gross margin | $ | 71,909 | $ | 63,142 | 23.3 | % | 24.5 | % | 13.9 | % | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Selling, general and administrative | $ | 79,357 | $ | 75,309 | 25.8 | % | 29.2 | % | 5.4 | % | |||||||||||||||||||
Research and development | 43,863 | 33,785 | 14.2 | % | 13.1 | % | 29.8 | % | |||||||||||||||||||||
Amortization of identifiable intangible assets | 1,393 | 1,399 | 0.5 | % | 0.5 | % | (0.4) | % | |||||||||||||||||||||
Adjustment to contingent consideration liability | (7,500) | — | (2.4) | % | — | % | — | % | |||||||||||||||||||||
Gain on insurance proceeds | (500) | — | (0.2) | % | — | % | — | % | |||||||||||||||||||||
Total operating expenses | $ | 116,613 | $ | 110,493 | 37.8 | % | 42.8 | % | 5.5 | % | |||||||||||||||||||
Loss from operations | $ | (44,704) | $ | (47,351) | (14.5) | % | (18.3) | % | (5.6) | % | |||||||||||||||||||
Other expense, net | (337) | (804) | (0.1) | % | (0.3) | % | (58.1) | % | |||||||||||||||||||||
Interest expense, net | (5,152) | (7,054) | (1.7) | % | (2.7) | % | (27.0) | % | |||||||||||||||||||||
Loss before benefit from income taxes | (50,193) | (55,209) | (16.3) | % | (21.4) | % | (9.1) | % | |||||||||||||||||||||
Provision for income taxes | (930) | (629) | (0.3) | % | (0.2) | % | 47.9 | % | |||||||||||||||||||||
Net loss | $ | (51,123) | $ | (55,838) | (16.6) | % | (21.6) | % | (8.4) | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||
Percentage of total revenue | Increase (decrease) | ||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Hardware | $ | 25,824 | $ | 31,343 | 24.1 | % | 33.8 | % | (17.6) | % | |||||||||||||||||||
Subscription service | 31,363 | 25,170 | 29.3 | % | 27.1 | % | 24.6 | % | |||||||||||||||||||||
Professional service | 11,514 | 11,840 | 10.7 | % | 12.8 | % | (2.8) | % | |||||||||||||||||||||
Total Restaurant/Retail | 68,701 | 68,353 | 64.1 | % | 73.7 | % | 0.5 | % | |||||||||||||||||||||
Mission systems | 8,808 | 8,982 | 8.2 | % | 9.7 | % | (1.9) | % | |||||||||||||||||||||
Intelligence, surveillance, and reconnaissance solutions | 29,275 | 14,710 | 27.3 | % | 15.9 | % | 99.0 | % | |||||||||||||||||||||
Commercial software | 350 | 722 | 0.3 | % | 0.8 | % | (51.5) | % | |||||||||||||||||||||
Total Government | 38,433 | 24,414 | 35.9 | % | 26.3 | % | 57.4 | % | |||||||||||||||||||||
Total revenue | $ | 107,134 | $ | 92,767 | 100.0 | % | 100.0 | % | 15.5 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
Percentage of total revenue | Increase (decrease) | ||||||||||||||||||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Hardware | $ | 78,991 | $ | 84,820 | 25.6 | % | 32.9 | % | (6.9) | % | |||||||||||||||||||
Subscription service | 89,700 | 69,591 | 29.1 | % | 27.0 | % | 28.9 | % | |||||||||||||||||||||
Professional service | 38,123 | 36,959 | 12.4 | % | 14.3 | % | 3.1 | % | |||||||||||||||||||||
Total Restaurant/Retail | 206,814 | 191,370 | 67.1 | % | 74.1 | % | 8.1 | % | |||||||||||||||||||||
Mission systems | 27,408 | 26,781 | 8.9 | % | 10.4 | % | 2.3 | % | |||||||||||||||||||||
Intelligence, surveillance, and reconnaissance solutions | 73,000 | 38,746 | 23.7 | % | 15.0 | % | 88.4 | % | |||||||||||||||||||||
Commercial software | 893 | 1,248 | 0.3 | % | 0.5 | % | (28.4) | % | |||||||||||||||||||||
Total Government | 101,301 | 66,775 | 32.9 | % | 25.9 | % | 51.7 | % | |||||||||||||||||||||
Total revenue | $ | 308,115 | $ | 258,145 | 100.0 | % | 100.0 | % | 19.4 | % |
Three Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Hardware | $ | 25,824 | $ | 31,343 | 24.1 | % | 33.8 | % | (17.6) | % | |||||||||||||||||||
Subscription services | 31,363 | 25,170 | 29.3 | % | 27.1 | % | 24.6 | % | |||||||||||||||||||||
Professional services | 11,514 | 11,840 | 10.7 | % | 12.8 | % | (2.8) | % | |||||||||||||||||||||
Contract | 38,433 | 24,414 | 35.9 | % | 26.3 | % | 57.4 | % | |||||||||||||||||||||
Total revenues, net | $ | 107,134 | $ | 92,767 | 100.0 | % | 100.0 | % | 15.5 | % |
Nine Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Hardware | $ | 78,991 | $ | 84,820 | 25.6 | % | 32.9 | % | (6.9) | % | |||||||||||||||||||
Subscription service | 89,700 | 69,591 | 29.1 | % | 27.0 | % | 28.9 | % | |||||||||||||||||||||
Professional service | 38,123 | 36,959 | 12.4 | % | 14.3 | % | 3.1 | % | |||||||||||||||||||||
Contract | 101,301 | 66,775 | 32.9 | % | 25.9 | % | 51.7 | % | |||||||||||||||||||||
Total revenues, net | $ | 308,115 | $ | 258,145 | 100.0 | % | 100.0 | % | 19.4 | % |
Three Months Ended September 30, | Gross Margin Percentage | ||||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Hardware | $ | 6,529 | $ | 5,885 | 25.3 | % | 18.8 | % | 6.5 | % | |||||||||||||||||||
Subscription services | 15,866 | 12,116 | 50.6 | % | 48.1 | % | 2.5 | % | |||||||||||||||||||||
Professional services | 2,739 | 873 | 23.8 | % | 7.4 | % | 16.4 | % | |||||||||||||||||||||
Contract | 3,052 | 2,534 | 7.9 | % | 10.4 | % | (2.5) | % | |||||||||||||||||||||
Total gross margin | 28,186 | 21,408 | 26.3 | % | 23.1 | % | 3.2 | % |
Nine Months Ended September 30, | Gross Margin Percentage | ||||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Hardware | $ | 15,989 | $ | 15,154 | 20.2 | % | 17.9 | % | 2.3 | % | |||||||||||||||||||
Subscription service | 43,045 | 35,259 | 48.0 | % | 50.7 | % | (2.7) | % | |||||||||||||||||||||
Professional service | 6,198 | 6,310 | 16.3 | % | 17.1 | % | (0.8) | % | |||||||||||||||||||||
Contract | 6,677 | 6,419 | 6.6 | % | 9.6 | % | (3.0) | % | |||||||||||||||||||||
Total gross margin | 71,909 | 63,142 | 23.3 | % | 24.5 | % | (1.2) | % |
Three Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Selling, general and administrative | $ | 26,249 | $ | 26,543 | 24.5 | % | 28.6 | % | (1.1) | % |
Nine Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Selling, general and administrative | $ | 79,357 | $ | 75,309 | 25.8 | % | 29.2 | % | 5.4 | % |
Three Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Research and development | $ | 14,660 | $ | 12,843 | 13.7 | % | 13.8 | % | 14.1 | % |
Nine Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Research and development | $ | 43,863 | $ | 33,785 | 14.2 | % | 13.1 | % | 29.8 | % |
Three Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Amortization of identifiable intangible assets | $ | 464 | $ | 465 | 0.4 | % | 0.5 | % | (0.2) | % | |||||||||||||||||||
Nine Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Amortization of identifiable intangible assets | $ | 1,393 | $ | 1,399 | 0.5 | % | 0.5 | % | (0.4) | % | |||||||||||||||||||
Adjustment to contingent consideration liability | (7,500) | — | (2.4) | % | — | % | — | % | |||||||||||||||||||||
Gain on insurance proceeds | (500) | — | (0.2) | % | — | % | — | % | |||||||||||||||||||||
Three Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Other expense, net | $ | (373) | $ | (179) | (0.3) | % | (0.2) | % | 108.4 | % |
Nine Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Other expense, net | $ | (337) | $ | (804) | (0.1) | % | (0.3) | % | (58.1) | % |
Three Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Interest expense, net | $ | (1,750) | $ | (2,140) | (1.6) | % | (2.3) | % | (18.2) | % |
Nine Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Interest expense, net | $ | (5,152) | $ | (7,054) | (1.7) | % | (2.7) | % | (27.0) | % |
Three Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Provision for income taxes | $ | (206) | $ | (578) | (0.2) | % | (0.6) | % | (64.4) | % |
Nine Months Ended September 30, | Percentage of total revenue | Increase (decrease) | |||||||||||||||||||||||||||
in thousands | 2023 | 2022 | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||||||||||||
Provision for income taxes | $ | (930) | $ | (629) | (0.3) | % | (0.2) | % | 47.9 | % |
As of September 30, | Increase (decrease) | ||||||||||||||||
In thousands | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||
Guest Engagement | 62,219 | 57,506 | 8.2 | % | |||||||||||||
Operator Solutions | 53,756 | 38,879 | 38.3 | % | |||||||||||||
Back Office | 12,372 | 10,238 | 20.8 | % | |||||||||||||
Total | $ | 128,347 | $ | 106,623 | 20.4 | % |
As of September 30, | Increase (decrease) | ||||||||||||||||
In thousands | 2023 | 2022 | 2023 vs 2022 | ||||||||||||||
Guest Engagement | 68.1 | 67.1 | 1.5 | % | |||||||||||||
Operator Solutions | 22.5 | 18.6 | 21.0 | % | |||||||||||||
Back Office | 7.5 | 6.7 | 11.9 | % |
Three Months Ended September 30, | |||||||||||
in thousands | 2023 | 2022 | |||||||||
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA | |||||||||||
Net loss | $ | (15,516) | $ | (21,340) | |||||||
Provision for income taxes | 206 | 578 | |||||||||
Interest expense | 1,750 | 2,140 | |||||||||
Depreciation and amortization | 6,665 | 6,441 | |||||||||
EBITDA | $ | (6,895) | $ | (12,181) | |||||||
Stock-based compensation expense (1) | 3,972 | 3,490 | |||||||||
Regulatory matter (2) | — | 415 | |||||||||
Acquisition costs (3) | — | 134 | |||||||||
Other expense – net (4) | 373 | 179 | |||||||||
Adjusted EBITDA | $ | (2,550) | $ | (7,963) |
1 | Adjustments reflect stock-based compensation expense of $4.0 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively. | ||||
2 | Adjustment reflects a non-recurring expense accrued related to our efforts to resolve a regulatory matter. | ||||
3 | Adjustment reflects the acquisition expenses incurred in the MENU Acquisition. | ||||
4 | Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net, in the accompanying statements of operations. | ||||
in thousands, except per share amounts | Three Months Ended September 30, | ||||||||||||||||||||||
Reconciliation of Net Loss/Diluted Net Loss per Share to Adjusted Net Loss/Adjusted Diluted Net Loss per Share: | 2023 | 2022 | |||||||||||||||||||||
Net loss/diluted loss per share | $ | (15,516) | $ | (0.56) | $ | (21,340) | $ | (0.79) | |||||||||||||||
Non-cash interest expense (1) | 541 | 0.02 | 504 | 0.02 | |||||||||||||||||||
Acquired intangible assets amortization (2) | 4,828 | 0.18 | 4,712 | 0.17 | |||||||||||||||||||
Stock-based compensation expense (3) | 3,972 | 0.14 | 3,490 | 0.13 | |||||||||||||||||||
Regulatory matter (4) | — | — | 415 | 0.02 | |||||||||||||||||||
Acquisition costs (5) | — | — | 134 | — | |||||||||||||||||||
Other expense – net (6) | 373 | 0.01 | 179 | 0.01 | |||||||||||||||||||
Adjusted net loss/adjusted diluted net loss per share | $ | (5,802) | $ | (0.21) | $ | (11,906) | $ | (0.44) | |||||||||||||||
Adjusted weighted average common shares outstanding | 27,472 | 27,110 |
1 | Adjustment reflects non-cash accretion of interest expense and amortization of issuance costs related to the Senior Notes of $0.5 million and $0.5 million for the three months ended September 30, 2023 and 2022, respectively. | ||||
2 | Adjustment amortization expense of acquired developed technology included within cost of sales of $4.3 million and $4.3 million for the three months ended September 30, 2023 and 2022, respectively; and amortization expense of acquired intangible assets of $0.5 million and $0.4 million for the three months ended September 30, 2023 and 2022, respectively. | ||||
3 | Adjustment reflects stock-based compensation expense of $4.0 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively. | ||||
4 | Adjustment reflects a non-recurring expense accrued related to our efforts to resolve a regulatory matter. | ||||
5 | Adjustment reflects the acquisition expenses incurred in the MENU Acquisition. | ||||
6 | Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net, in the accompanying statements of operations. |
Nine Months Ended September 30, | |||||||||||
in thousands | 2023 | 2022 | |||||||||
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA | |||||||||||
Net loss | $ | (51,123) | $ | (55,838) | |||||||
Provision for income taxes | 930 | 629 | |||||||||
Interest expense | 5,152 | 7,054 | |||||||||
Depreciation and amortization | 20,480 | 19,593 | |||||||||
EBITDA | $ | (24,561) | $ | (28,562) | |||||||
Stock-based compensation expense (1) | 10,642 | 10,257 | |||||||||
Regulatory matter (2) | — | 415 | |||||||||
Contingent consideration (3) | (7,500) | — | |||||||||
Acquisition costs (4) | — | 1,085 | |||||||||
Gain on insurance proceeds (5) | (500) | — | |||||||||
Severance (6) | 253 | — | |||||||||
Other expense – net (7) | 337 | 804 | |||||||||
Adjusted EBITDA | $ | (21,329) | $ | (16,001) |
1 | Adjustments reflect stock-based compensation expense of $10.6 million and $10.3 million for the nine months ended September 30, 2023 and 2022, respectively. | ||||
2 | Adjustment reflects a non-recurring expense accrued related to our efforts to resolve a regulatory matter. | ||||
3 | Adjustment reflects non-cash changes to the fair market value of the contingent consideration liability related to the MENU Acquisition. | ||||
4 | Adjustment reflects the acquisition expenses incurred in the MENU Acquisition. | ||||
5 | Adjustment reflects the gain on insurance proceeds due to the settlement of a legacy claim. | ||||
6 | Adjustment reflects severance included in SG&A and R&D expense. | ||||
7 | Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net, in the accompanying statements of operations. | ||||
in thousands, except per share amounts | Nine Months Ended September 30, | ||||||||||||||||||||||
Reconciliation of Net Loss/Diluted Net Loss per Share to Adjusted Net Loss/Adjusted Diluted Net Loss per Share: | 2023 | 2022 | |||||||||||||||||||||
Net loss/diluted loss per share | $ | (51,123) | $ | (1.86) | $ | (55,838) | $ | (2.06) | |||||||||||||||
Non-cash interest expense (1) | 1,594 | 0.06 | 1,484 | 0.05 | |||||||||||||||||||
Acquired intangible assets amortization (2) | 13,555 | 0.49 | 12,941 | 0.48 | |||||||||||||||||||
Stock-based compensation expense (3) | 10,642 | 0.39 | 10,257 | 0.38 | |||||||||||||||||||
Regulatory matter (4) | — | — | 415 | 0.02 | |||||||||||||||||||
Contingent consideration (5) | (7,500) | (0.27) | — | — | |||||||||||||||||||
Acquisition costs (6) | — | — | 1,085 | 0.04 | |||||||||||||||||||
Gain on insurance proceeds (7) | (500) | (0.02) | — | — | |||||||||||||||||||
Severance (8) | 253 | 0.01 | — | — | |||||||||||||||||||
Other expense – net (9) | 337 | 0.01 | 804 | 0.03 | |||||||||||||||||||
Adjusted net loss/adjusted diluted net loss per share | $ | (32,742) | $ | (1.19) | $ | (28,852) | $ | (1.06) | |||||||||||||||
Adjusted weighted average common shares outstanding | 27,412 | 27,150 |
1 | Adjustment reflects non-cash accretion of interest expense and amortization of issuance costs related to the Senior Notes of $1.6 million and $1.5 million for the nine months ended September 30, 2023 and 2022, respectively. | ||||
2 | Adjustment amortization expense of acquired developed technology included within cost of sales of $12.7 million and $11.5 million for the nine months ended September 30, 2023 and 2022, respectively; and amortization expense of acquired intangible assets of $0.9 million and $1.4 million for the nine months ended September 30, 2023 and 2022, respectively. | ||||
3 | Adjustment reflects stock-based compensation expense of $10.6 million and $10.3 million for the nine months ended September 30, 2023 and 2022, respectively. | ||||
4 | Adjustment reflects a non-recurring expense accrued related to our efforts to resolve a regulatory matter. | ||||
5 | Adjustment reflects non-cash changes to the fair market value of the contingent consideration liability related to the MENU Acquisition. | ||||
6 | Adjustment reflects the acquisition expenses incurred in the MENU Acquisition. | ||||
7 | Adjustment reflects the gain on insurance proceeds due to the settlement of a legacy claim. | ||||
8 | Adjustment reflects severance included in SG&A and R&D expense. | ||||
9 | Adjustment reflects foreign currency transaction gains and losses, rental income and losses, and other non-recurring expenses recorded in other expense, net, in the accompanying statements of operations. |
Period | Total Number of Shares Withheld | Average Price Paid Per Share | ||||||||||||
July 1, 2023 - July 31, 2023 | — | $ | — | |||||||||||
August 1, 2023 - August 31, 2023 | 42 | $ | 37.19 | |||||||||||
September 1, 2023 - September 30, 2023 | 1,293 | $ | 45.19 | |||||||||||
Total | 1,335 | $ | 44.47 |
Exhibit Number | Incorporated by reference into this Quarterly Report on Form 10-Q | Date Filed or Furnished | ||||||||||||
Exhibit Description | Form | Exhibit No. | ||||||||||||
3.1 | Form 10-Q (File No. 001-09720) | 3.1 | 11/9/2022 | |||||||||||
3.2 | Form 8-K (File No.001-09720) | 3.1 | 9/26/2022 | |||||||||||
31.1 | Filed herewith | |||||||||||||
31.2 | Filed herewith | |||||||||||||
32.1 | Furnished herewith | |||||||||||||
32.2 | Furnished herewith | |||||||||||||
101.INS | Inline XBRL Instance Document | Filed herewith | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed herewith | ||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith | ||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | Filed herewith |
PAR TECHNOLOGY CORPORATION | ||||||||
(Registrant) | ||||||||
Date: | November 9, 2023 | /s/ Bryan A. Menar | ||||||
Bryan A. Menar | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of PAR Technology Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
November 9, 2023 | /s/ Savneet Singh | ||||
Savneet Singh | |||||
Chief Executive Officer & President | |||||
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of PAR Technology Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
November 9, 2023 | /s/ Bryan A. Menar | ||||
Bryan A. Menar | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
(i) | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
November 9, 2023 | ||
/s/ Savneet Singh | ||
Savneet Singh | ||
Chief Executive Officer & President | ||
(Principal Executive Officer) |
(i) | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
November 9, 2023 | ||
/s/ Bryan A. Menar | ||
Bryan A. Menar | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Shareholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Common stock, authorized (in shares) | 58,000,000 | 58,000,000 |
Common stock, issued (in shares) | 28,877,896 | 28,589,567 |
Common stock, outstanding (in shares) | 27,520,284 | 27,319,045 |
Treasury stock (in shares) | 1,357,612 | 1,270,522 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenues, net: | ||||
Total revenues, net | $ 107,134 | $ 92,767 | $ 308,115 | $ 258,145 |
Costs of sales: | ||||
Total cost of sales | 78,948 | 71,359 | 236,206 | 195,003 |
Gross margin | 28,186 | 21,408 | 71,909 | 63,142 |
Operating expenses: | ||||
Selling, general and administrative | 26,249 | 26,543 | 79,357 | 75,309 |
Research and development | 14,660 | 12,843 | 43,863 | 33,785 |
Amortization of identifiable intangible assets | 464 | 465 | 1,393 | 1,399 |
Adjustment to contingent consideration liability | 0 | 0 | (7,500) | 0 |
Gain on insurance proceeds | 0 | 0 | (500) | 0 |
Total operating expenses | 41,373 | 39,851 | 116,613 | 110,493 |
Operating loss | (13,187) | (18,443) | (44,704) | (47,351) |
Other expense, net | (373) | (179) | (337) | (804) |
Interest expense, net | (1,750) | (2,140) | (5,152) | (7,054) |
Loss before provision for income taxes | (15,310) | (20,762) | (50,193) | (55,209) |
Provision for income taxes | (206) | (578) | (930) | (629) |
Net loss | $ (15,516) | $ (21,340) | $ (51,123) | $ (55,838) |
Net loss per share, basic (in dollars per share) | $ (0.56) | $ (0.79) | $ (1.86) | $ (2.06) |
Net loss per share, diluted (in dollars per share) | $ (0.56) | $ (0.79) | $ (1.86) | $ (2.06) |
Weighted average shares outstanding, basic (in shares) | 27,472 | 27,110 | 27,412 | 27,150 |
Weighted average shares outstanding, diluted (in shares) | 27,472 | 27,110 | 27,412 | 27,150 |
Hardware | ||||
Revenues, net: | ||||
Total revenues, net | $ 25,824 | $ 31,343 | $ 78,991 | $ 84,820 |
Costs of sales: | ||||
Total cost of sales | 19,295 | 25,458 | 63,002 | 69,666 |
Subscription service | ||||
Revenues, net: | ||||
Total revenues, net | 31,363 | 25,170 | 89,700 | 69,591 |
Costs of sales: | ||||
Total cost of sales | 15,497 | 13,054 | 46,655 | 34,332 |
Professional service | ||||
Revenues, net: | ||||
Total revenues, net | 11,514 | 11,840 | 38,123 | 36,959 |
Costs of sales: | ||||
Total cost of sales | 8,775 | 10,967 | 31,925 | 30,649 |
Contract | ||||
Revenues, net: | ||||
Total revenues, net | 38,433 | 24,414 | 101,301 | 66,775 |
Costs of sales: | ||||
Total cost of sales | $ 35,381 | $ 21,880 | $ 94,624 | $ 60,356 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (15,516) | $ (21,340) | $ (51,123) | $ (55,838) |
Other comprehensive loss, net of applicable tax: | ||||
Foreign currency translation adjustments | 1,417 | (851) | (142) | (500) |
Comprehensive loss | $ (14,099) | $ (22,191) | $ (51,265) | $ (56,338) |
Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Business PAR Technology Corporation (the “Company” or “PAR,” “we,” or “us”), through its consolidated subsidiaries, operates in two segments - the Restaurant/Retail segment and the Government segment. The Restaurant/Retail segment provides leading technology platforms to the restaurant and retail industries. We provide enterprise restaurants, franchisees, and other restaurant outlets in the three major restaurant categories - quick service, fast casual, and table service - with operational efficiencies by offering them a comprehensive suite of subscription services, hardware, and professional services. Our subscription services are grouped into three categories: Guest Engagement, which includes Punchh for customer loyalty and engagement and MENU for omnichannel digital ordering and delivery; Operator Solutions, which includes Brink POS for front-of-house and PAR Pay and PAR Payment Services for payments; and Back Office, which includes Data Central. PAR's Government segment provides technical expertise and development of advanced systems and software solutions for the U.S. Department of Defense ("DoD"), the intelligence community and other federal agencies. Additionally, we provide support services for satellite command and control, communication, and information technology ("IT") systems at several DoD facilities worldwide. The Government segment has three principal contract offerings: intelligence, surveillance, and reconnaissance solutions, mission systems operations and maintenance, and commercial software products for use in analytic and operational environments that leverage geospatial intelligence data. The accompanying unaudited interim condensed consolidated financial statements ("financial statements") include the Company's accounts and those of its consolidated subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Basis of Presentation The accompanying financial statements of PAR Technology Corporation and its consolidated subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Regulation S-X pertaining to interim financial statements as promulgated by the SEC. In the opinion of management, the Company's financial statements include all normal and recurring adjustments necessary in order to make the financial statements not misleading and to provide a fair presentation of the Company's financial results for the interim period included in this Quarterly Report. Interim results are not necessarily indicative of results for the full year or any future periods. The information included in this Quarterly Report should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2022 (the “2022 Annual Report”). Revenue and Cost of Sales Presentation Changes Beginning with the 2022 Annual Report, we retroactively split our "Service" financial statement line items ("FSLIs"), presented in the consolidated statements of operations under "Revenues, net" and "Cost of sales", into two FSLIs, "Subscription Service" and "Professional Service", to provide clearer insight into these operationally and economically different revenue streams in light of recent acquisitions. This change in presentation did not impact revenue or cost of sales reported in our consolidated statements of operations prior to this change. With the change in our presentation of “Service”, we also changed the FSLI "Product", previously presented in our consolidated statements of operations under "Revenue, net" and "Cost of sales", to "Hardware", to better describe this revenue stream. Use of Estimates The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to these estimates and assumptions include revenue recognition, stock-based compensation, the recognition and measurement of assets acquired and liabilities assumed in business combinations at fair value, the carrying amount of property, plant, and equipment including right-to-use assets and liabilities, identifiable intangible assets and goodwill, valuation allowances for receivables, valuation of excess and obsolete inventories, and measurement of contingent consideration at fair value. Actual results could differ from those estimates. Contingent Consideration The acquisition date fair value of contingent consideration associated with the acquisition of MENU Technologies AG ("MENU") in July 2022 (the "MENU Acquisition") was determined using Monte-Carlo simulation valuation techniques, with significant inputs that are not observable in the market and thus are classified in Level 3 of the fair value hierarchy as defined in ASC Topic 820, Fair Value Measurement. The simulation uses probability distribution for each significant input to produce hundreds or thousands of possible outcomes and the results are analyzed to determine probabilities of different outcomes occurring. Significant increases or decreases to these inputs in isolation would result in a significantly higher or lower liability. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the liability on the acquisition date is reflected as cash used in financing activities in the Company's condensed consolidated statements of cash flows. Any amount paid in excess of the liability on the acquisition date is reflected as cash used in operating activities. During the three months ended June 30, 2023, the MENU earn-out was amended to remove the EBITDA based threshold and reduce the future software as a service ("SaaS") annual recurring revenue threshold. For the three months ended September 30, 2023, the Company did not make an adjustment to the fair value of the contingent consideration liability related to the MENU Acquisition. For the nine months ended September 30, 2023, the Company recorded a $7.5 million adjustment to decrease the fair value of the contingent consideration liability related to the MENU Acquisition from $9.8 million as of December 31, 2022 to $2.3 million as of September 30, 2023. Gain on Insurance Proceeds During the nine months ended September 30, 2023, the Company received $0.5 million of insurance proceeds in connection with the settlement of a legacy claim. No insurance proceeds were received during the nine months ended September 30, 2022. Cash and Cash Equivalents and Cash Held on Behalf of Customers Cash and cash equivalents and cash held on behalf of customers consist of the following:
The Company maintained bank balances that, at times, exceeded the federally insured limit during the nine months ended September 30, 2023. The Company has not experienced losses relating to these deposits and management does not believe that the Company is exposed to any significant credit risk with respect to these amounts. Short-Term Investments The carrying value of investment securities consist of the following:
The Company did not record any material gains or losses on these securities during the nine months ended September 30, 2023. The estimated fair value of these securities approximated their carrying value as of September 30, 2023 and December 31, 2022. Other Assets Other assets include deferred implementation costs of $8.5 million and $7.4 million at September 30, 2023 and December 31, 2022, respectively. Based on ASC Topic 340, Other Assets and Deferred Costs, we capitalize and amortize incremental costs of fulfilling a contract over the period we expect to derive benefits from the contract, which we have determined as the initial term of a contract. We periodically adjust the carrying value of deferred implementation costs to account for customers ceasing operations or otherwise discontinuing use of our subscription services. Amortization expense is included in "Costs of sales: Professional service" in the Company's condensed consolidated statements of operations. Amortization of deferred implementation costs were $1.2 million and $0.7 million for the three months ended September 30, 2023 and 2022, respectively. Amortization of deferred implementation costs were $3.2 million and $1.6 million for the nine months ended September 30, 2023 and 2022, respectively. Other assets also include the cash surrender value of life insurance related to the Company’s deferred compensation plan eligible to certain employees. The funded balance is reviewed on an annual basis. The balance of the life insurance policies was $3.2 million and $3.2 million at September 30, 2023 and December 31, 2022, respectively. Accrued Expenses As of September 30, 2023, accrued expenses include the contingent consideration liability recognized in conjunction with the MENU Acquisition (refer to “Contingent Consideration” above for additional information). During the three months ended September 30, 2023, the balance of the contingent consideration liability was reclassified from other long-term liabilities to accrued expenses. The balance of the contingent consideration liability included within accrued expenses was $2.3 million and zero at September 30, 2023, and December 31, 2022, respectively. Other Long-Term Liabilities As of December 31, 2022, other long-term liabilities include the contingent consideration liability recognized in conjunction with the MENU Acquisition (refer to “Contingent Consideration” above for additional information). During the three months ended September 30, 2023, the balance of the contingent consideration liability was reclassified from other long-term liabilities to accrued expenses. The balance of the contingent consideration liability included within other long-term liabilities was zero and $9.8 million at September 30, 2023, and December 31, 2022, respectively. Additionally, other long-term liabilities include amounts owed to employees that participate in the Company’s deferred compensation plan. Amounts owed to employees participating in the deferred compensation plan were $1.6 million and $1.7 million at September 30, 2023 and December 31, 2022, respectively. Related Party Transactions During the nine months ended September 30, 2022, Act III Management LLC (“Act III Management”), a service company to the restaurant, hospitality, and entertainment industries, provided software development and restaurant technology consulting services to the Company pursuant to a master development agreement. Additionally, during the nine months ended September 30, 2023, Ronald Shaich, the sole member of Act III Management, served as a strategic advisor to the Company's board of directors pursuant to a strategic advisor agreement, which terminated on June 1, 2023. Keith Pascal, a director of the Company, is an employee of Act III Management and serves as its vice president and secretary. Mr. Pascal does not have an ownership interest in Act III Management. As of September 30, 2023 and December 31, 2022, the Company had zero accounts payable owed to Act III Management. During the three months ended September 30, 2023 and 2022, the Company paid Act III Management zero and $0.1 million, respectively, and during the nine months ended September 30, 2023 and 2022, the Company paid Act III Management $0.1 million and $0.6 million, respectively, for services performed under the master development and strategic advisor agreements. Recently Adopted Accounting Pronouncements There were no recent accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2023 that are of significance or potential significance to the Company.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Performance Obligations Outstanding The Company's performance obligations outstanding represent the transaction price of firm, non-cancellable orders, with expected delivery dates to customers after September 30, 2023 and December 31, 2022, respectively, for work that has not yet been performed. The aggregate incomplete performance obligations attributable to each of the Company's reporting segments is as follows:
Deferred revenue is recorded when cash payments are received or due in advance of revenue recognition from subscription services and professional services. The timing of revenue recognition may differ from when customers are invoiced. The changes in deferred revenue, inclusive of both current and long-term, are as follows:
The above tables exclude customer deposits of $2.0 million and $1.7 million as of the nine months ended September 30, 2023 and 2022, respectively. All deferred revenue relates to subscription services and professional services. These balances are recognized on a straight-line basis over the life of the contract, with the majority of the balance being recognized within the next twelve months. In the Restaurant/Retail segment most performance obligations relate to subscription service and professional service contracts, approximately 65% of which the Company expects to fulfill within 12 months of September 30, 2023. Most performance obligations greater than one year relate to professional service contracts that the Company expects to fulfill within 36 months of September 30, 2023. The Company expects to fulfill 100% of subscription service and professional service contracts within 60 months of September 30, 2023. At September 30, 2023 and December 31, 2022, transaction prices allocated to future performance obligations were $12.4 million and $13.6 million, respectively. During the three months ended September 30, 2023 and 2022, the Company recognized revenue included in deferred revenue at the beginning of each respective period of $2.7 million and $3.1 million. During the nine months ended September 30, 2023 and 2022, the Company recognized revenue included in deferred revenue at the beginning of each respective period of $8.7 million and $12.7 million. In the Government segment, the value of existing contracts at September 30, 2023, net of amounts relating to work performed to that date, was approximately $327.5 million, of which $88.3 million was funded, and at December 31, 2022, the value of existing contracts, net of amounts relating to work performed to that date, was approximately $333.9 million, of which $86.5 million was funded. The value of existing contracts in the Government segment, net of amounts relating to work performed at September 30, 2023, is expected to be recognized as revenue over time as follows:
Disaggregated Revenue The Company disaggregates revenue from contracts with customers by major product line for each of its reporting segments because the Company believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by contract terms and economic factors. Disaggregated revenue is as follows:
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Acquisitions |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions MENU Acquisition On July 25, 2022, ParTech, Inc. ("ParTech") acquired 100% of the stock of MENU, a restaurant technology company offering fully integrated omnichannel ordering solutions to restaurants worldwide, for purchase consideration of approximately $18.4 million paid in cash and $6.3 million paid in shares of Company common stock. 162,917 shares of common stock were issued as purchase consideration, determined using a fair value share price of $38.67. In addition, the sellers have the opportunity to earn additional cash and Company common stock consideration over an earn-out period ending July 31, 2024, primarily based on MENU's future SaaS annual recurring revenues. As of the date of acquisition, the Company determined the fair value of the MENU earn-out to be $14.2 million. The transaction was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations. Accordingly, assets acquired and liabilities assumed have been accounted for at their determined respective fair values as of the date of acquisition. The fair value determinations were based on management's best estimates and assumptions, and with the assistance of independent valuation and tax consultants. During the three months ended March 31, 2023, the fair values of assets and liabilities as of July 25, 2022, were finalized with no adjustments from the preliminary purchase price allocation. The following table presents management's final purchase price allocation:
The Company determined the acquisition date fair value of contingent consideration associated with the MENU earn-out using a Monte Carlo simulation of a discounted cash flow model, with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820, Fair Value Measurement; refer to "Note 12 - Fair Value of Financial Instruments". The estimated fair value of acquired developed technology was determined utilizing the "multi-period excess earnings method", which is predicated upon the calculation of the net present value of after-tax net cash flows respectively attributable to each asset. The acquired developed technology asset is being amortized on a straight-line basis over its estimated useful life of seven years. Consideration paid in cash on the date of acquisition included $3.0 million deposited into an escrow account administered by a third party, to be held for up to 18-months following the date of acquisition, to fund potential post-closing adjustments and obligations. During the third and fourth quarter of 2022, the Company incurred acquisition expenses related to its acquisition of MENU of approximately $1.1 million. The Company has not presented combined pro forma financial information of the Company and MENU because the results of operations of the acquired business are considered immaterial.
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Accounts receivable, net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable, net | Accounts receivable, net The Company’s net accounts receivables consist of:
Accounts receivables recorded as of September 30, 2023 and December 31, 2022 represent unconditional rights to payments from customers. At September 30, 2023 and December 31, 2022, the Company had current expected credit loss of $2.2 million and $2.1 million, respectively, against accounts receivable for the Restaurant/Retail segment. Changes in the current expected credit loss for the nine months ended September 30 were:
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Inventories, net |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, net | Inventories, net Inventories are used in the assembly and service of Restaurant/Retail hardware. The components of inventory, adjusted for reserves, consisted of the following:
At September 30, 2023 and December 31, 2022, the Company had excess and obsolescence reserves of $9.6 million and $10.9 million, respectively, against inventories.
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Identifiable Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Identifiable Intangible Assets and Goodwill | Identifiable Intangible Assets and Goodwill The Company's identifiable intangible assets represent intangible assets acquired in acquisitions and software development costs. The components of identifiable intangible assets are:
Software costs placed into service during the three months ended September 30, 2023 and 2022, were $0.4 million and $1.4 million, respectively. Software costs placed into service during the nine months ended September 30, 2023 and 2022, were $2.7 million and $4.3 million, respectively. The following table summarizes amortization expense for acquired developed technology and internally developed software:
The expected future amortization of intangible assets, assuming straight-line amortization of capitalized software development costs and acquisition related intangibles, excluding software development costs not meeting the general release threshold, is as follows:
Goodwill carried by the Restaurant/Retail and Government segments is as follows:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Convertible Senior Notes The following table summarizes information about the net carrying amounts of long-term debt, consisting of the 4.500% Convertible Senior Notes due 2024 (the “2024 Notes”), 2.875% Convertible Senior Notes due 2026 (the “2026 Notes”), and the 1.50% Convertible Senior Notes due 2027 (the “2027 Notes”, and together with the 2024 Notes and 2026 Notes, the “Senior Notes”), as of September 30, 2023:
The following table summarizes information about the Senior Notes as of December 31, 2022:
The following table summarizes interest expense recognized on the Senior Notes:
The following table summarizes the future principal payments as of September 30, 2023:
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company applies the fair value recognition provisions of ASC Topic 718: Stock Compensation. Stock-based compensation expense, net of forfeitures of $0.1 million and $0.1 million, was $4.0 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively. Stock-based compensation expense, net of forfeitures of $0.4 million and $0.9 million, was $10.6 million and $10.3 million for the nine months ended September 30, 2023 and 2022, respectively. At September 30, 2023, the aggregate unrecognized compensation expense related to unvested equity awards was $25.3 million, which is expected to be recognized as compensation expense in fiscal years 2023 through 2026. A summary of stock option activity for the nine months ended September 30, 2023 is below:
A summary of unvested restricted stock units activity for the nine months ended September 30, 2023 is below:
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Net Loss Per Share |
9 Months Ended |
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Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per ShareNet loss per share is calculated in accordance with ASC Topic 260, Earnings per Share, which specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”). It requires the presentation of basic and diluted EPS. Basic EPS excludes all dilution and is based upon the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the potential dilution that would occur if convertible securities or other contracts to issue common stock were exercised. At September 30, 2023, there were 929,000 anti-dilutive stock options outstanding compared to 1,045,000 as of September 30, 2022. At September 30, 2023 there were 862,000 anti-dilutive restricted stock units compared to 576,000 as of September 30, 2022. |
Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesFrom time to time, the Company is party to legal proceedings arising in the ordinary course of business. Additionally, U.S. Government contract costs are subject to periodic audit and adjustment. Based on information currently available, and based on its evaluation of such information, the Company believes the legal proceedings in which it is currently involved are not material or are not likely to result in a material adverse effect on the Company’s business, financial condition or results of operations, or cannot currently be estimated. |
Segment and Related Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Related Information | Segment and Related Information The Company is organized in two segments, Restaurant/Retail and Government. Management views the Restaurant/Retail and Government segments separately in operating its business, as the products and services are different for each segment. Information noted as “Other” primarily relates to the Company’s corporate operations. Beginning with the Quarterly Report for the second quarter of 2023, we retroactively combined operating results noted as "Other" with operating results from our Restaurant/Retail segment because this better reflects the manner in which management reviews and assesses performance. Information as to the Company’s segments is set forth in the tables below:
The following table represents assets by reporting segment.
The following table represents assets by country based on the location of the assets.
The following table represents goodwill by reporting segment.
Customers comprising 10% or more of the Company’s total revenues by reporting segment are summarized as follows:
No other customer within All Others represented 10% or more of the Company’s total revenue for the three and nine months ended September 30, 2023 or 2022.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments have been recorded at fair value using available market information and valuation techniques. The fair value hierarchy is based upon three levels of input, which are: Level 1 — quoted prices in active markets for identical assets or liabilities (observable) Level 2 — inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in inactive markets, or other inputs that are observable market data for essentially the full term of the asset or liability (observable) Level 3 — unobservable inputs that are supported by little or no market activity, but are significant to determining the fair value of the asset or liability (unobservable) The Company’s financial instruments primarily consist of cash and cash equivalents, cash held on behalf of customers, short-term investments, debt instruments and deferred compensation assets and liabilities. The carrying amounts of cash and cash equivalents, cash held on behalf of customers, and short-term investments as of September 30, 2023 and December 31, 2022 were considered representative of their fair values because of their short-term nature. Debt instruments are recorded at principal amount net of unamortized debt issuance cost and discount (refer to "Note 7 - Debt" for additional information). The estimated fair value of the 2024 Notes, 2026 Notes, and 2027 Notes at September 30, 2023 was $21.0 million, $135.8 million, and $219.4 million respectively. The valuation techniques used to determine the fair value of the Senior Notes are classified in Level 2 of the fair value hierarchy as they are derived from broker quotations. Deferred compensation assets and liabilities primarily relate to the Company’s deferred compensation plan, which allows for pre-tax salary deferrals for certain key employees. Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by plan participants. Deferred compensation liabilities are classified in Level 2, the fair value classification as defined under FASB ASC Topic 820, Fair Value Measurements, because their inputs are derived principally from observable market data by correlation to the hypothetical investments. The Company holds insurance investments to partially offset the Company’s liabilities under its deferred compensation plan, which are recorded at fair value each period using the cash surrender value of the insurance investments. The cash surrender value of the life insurance policy was $3.2 million and $3.2 million at September 30, 2023 and December 31, 2022, respectively, and is included in other assets on the condensed consolidated balance sheets. Amounts owed to employees participating in the deferred compensation plan at September 30, 2023 were $1.6 million compared to $1.7 million at December 31, 2022 and are included in other long-term liabilities on the condensed consolidated balance sheets. The Company uses a Monte Carlo simulation of a discounted cash flow model to determine the fair value of the earn-out liability associated with the MENU Acquisition. Significant inputs used in the simulation are not observable in the market and thus the liability represents a Level 3 fair value measurement as defined in ASC 820. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the liability on the acquisition date will be reflected as cash used in financing activities in the Company's condensed consolidated statements of cash flows. Any amount paid in excess of the liability on the acquisition date will be reflected as cash used in operating activities. During the three months ended June 30, 2023, the MENU earn-out was amended to remove the EBITDA based threshold and reduce the future SaaS annual recurring revenue threshold. The Company determined the fair value of the MENU earn-out contingent liability to be $2.3 million at September 30, 2023. The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the nine months ended September 30, 2023:
The change in fair value of contingent consideration was recorded within " " in the condensed consolidated statement of operations. The following table provides quantitative information associated with the fair value measurement of the Company’s liabilities for contingent consideration:
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Subsequent Event |
9 Months Ended |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventsPursuant to a privately negotiated agreement dated October 6, 2023, the Company acquired $13.75 million aggregate principal amount of its outstanding 2024 Notes issued under the Indenture dated April 15, 2019 between The Bank of New York Mellon Trust Company, N.A., the Trustee, and the Company (the “Indenture”), constituting all of the notes issued and outstanding under the Indenture. This acquisition was made in exchange for 497,376 shares of common stock of the Company, par value of $0.02 per share (the "Exchange Transaction"). The shares of common stock were issued in reliance upon the exemption from registration under Section 3(a)(9) of the Securities Act of 1933, as amended. In connection with the closing of the Exchange Transaction, all of the Company's outstanding 2024 Notes issued under the Indenture were canceled and the Indenture was discharged on October 15, 2023. |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
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Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||||||
Net loss | $ (15,516) | $ (19,702) | $ (15,905) | $ (21,340) | $ (18,848) | $ (15,650) | $ (51,123) | $ (55,838) |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements of PAR Technology Corporation and its consolidated subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Regulation S-X pertaining to interim financial statements as promulgated by the SEC. In the opinion of management, the Company's financial statements include all normal and recurring adjustments necessary in order to make the financial statements not misleading and to provide a fair presentation of the Company's financial results for the interim period included in this Quarterly Report. Interim results are not necessarily indicative of results for the full year or any future periods. The information included in this Quarterly Report should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2022 (the “2022 Annual Report”).
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Use of Estimates | Use of Estimates The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to these estimates and assumptions include revenue recognition, stock-based compensation, the recognition and measurement of assets acquired and liabilities assumed in business combinations at fair value, the carrying amount of property, plant, and equipment including right-to-use assets and liabilities, identifiable intangible assets and goodwill, valuation allowances for receivables, valuation of excess and obsolete inventories, and measurement of contingent consideration at fair value. Actual results could differ from those estimates.
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Contingent Consideration | Contingent ConsiderationThe acquisition date fair value of contingent consideration associated with the acquisition of MENU Technologies AG ("MENU") in July 2022 (the "MENU Acquisition") was determined using Monte-Carlo simulation valuation techniques, with significant inputs that are not observable in the market and thus are classified in Level 3 of the fair value hierarchy as defined in ASC Topic 820, Fair Value Measurement. The simulation uses probability distribution for each significant input to produce hundreds or thousands of possible outcomes and the results are analyzed to determine probabilities of different outcomes occurring. Significant increases or decreases to these inputs in isolation would result in a significantly higher or lower liability. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the liability on the acquisition date is reflected as cash used in financing activities in the Company's condensed consolidated statements of cash flows. Any amount paid in excess of the liability on the acquisition date is reflected as cash used in operating activities. |
Cash and Cash Equivalents and Cash Held on Behalf of Customers | Cash and Cash Equivalents and Cash Held on Behalf of CustomersThe Company maintained bank balances that, at times, exceeded the federally insured limit during the nine months ended September 30, 2023. The Company has not experienced losses relating to these deposits and management does not believe that the Company is exposed to any significant credit risk with respect to these amounts. |
Short-Term Investments | Short-Term InvestmentsThe Company did not record any material gains or losses on these securities during the nine months ended September 30, 2023. The estimated fair value of these securities approximated their carrying value as of September 30, 2023 and December 31, 2022. |
Other assets | Other Assets Other assets include deferred implementation costs of $8.5 million and $7.4 million at September 30, 2023 and December 31, 2022, respectively. Based on ASC Topic 340, Other Assets and Deferred Costs, we capitalize and amortize incremental costs of fulfilling a contract over the period we expect to derive benefits from the contract, which we have determined as the initial term of a contract. We periodically adjust the carrying value of deferred implementation costs to account for customers ceasing operations or otherwise discontinuing use of our subscription services. Amortization expense is included in "Costs of sales: Professional service" in the Company's condensed consolidated statements of operations. Amortization of deferred implementation costs were $1.2 million and $0.7 million for the three months ended September 30, 2023 and 2022, respectively. Amortization of deferred implementation costs were $3.2 million and $1.6 million for the nine months ended September 30, 2023 and 2022, respectively. Other assets also include the cash surrender value of life insurance related to the Company’s deferred compensation plan eligible to certain employees. The funded balance is reviewed on an annual basis.
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Other Long-Term Liabilities | Other Long-Term LiabilitiesAs of December 31, 2022, other long-term liabilities include the contingent consideration liability recognized in conjunction with the MENU Acquisition (refer to “Contingent Consideration” above for additional information). |
Related Party Transactions | Related Party Transactions During the nine months ended September 30, 2022, Act III Management LLC (“Act III Management”), a service company to the restaurant, hospitality, and entertainment industries, provided software development and restaurant technology consulting services to the Company pursuant to a master development agreement. Additionally, during the nine months ended September 30, 2023, Ronald Shaich, the sole member of Act III Management, served as a strategic advisor to the Company's board of directors pursuant to a strategic advisor agreement, which terminated on June 1, 2023. Keith Pascal, a director of the Company, is an employee of Act III Management and serves as its vice president and secretary. Mr. Pascal does not have an ownership interest in Act III Management. As of September 30, 2023 and December 31, 2022, the Company had zero accounts payable owed to Act III Management. During the three months ended September 30, 2023 and 2022, the Company paid Act III Management zero and $0.1 million, respectively, and during the nine months ended September 30, 2023 and 2022, the Company paid Act III Management $0.1 million and $0.6 million, respectively, for services performed under the master development and strategic advisor agreements.
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements There were no recent accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2023 that are of significance or potential significance to the Company.
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Summary of Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents and Cash Held on Behalf of Customers | Cash and cash equivalents and cash held on behalf of customers consist of the following:
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Schedule of Carrying Value of Investment Securities | The carrying value of investment securities consist of the following:
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Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Performance Obligations | The aggregate incomplete performance obligations attributable to each of the Company's reporting segments is as follows:
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Schedule of Disaggregated Revenue | Disaggregated revenue is as follows:
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Acquisition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Management's Final Purchase Price Allocation | The following table presents management's final purchase price allocation:
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Accounts receivable, net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivables, Net | The Company’s net accounts receivables consist of:
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Schedule of Accounts Receivable, Allowance for Credit Loss | Changes in the current expected credit loss for the nine months ended September 30 were:
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Inventories, net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories are used in the assembly and service of Restaurant/Retail hardware. The components of inventory, adjusted for reserves, consisted of the following:
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Identifiable Intangible Assets and Goodwill (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Identifiable Intangible Assets | The components of identifiable intangible assets are:
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Schedule of Amortization Expense | The following table summarizes amortization expense for acquired developed technology and internally developed software:
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Schedule of Expected Future Amortization of Intangible Assets | The expected future amortization of intangible assets, assuming straight-line amortization of capitalized software development costs and acquisition related intangibles, excluding software development costs not meeting the general release threshold, is as follows:
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Schedule of Goodwill | Goodwill carried by the Restaurant/Retail and Government segments is as follows:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Long-term Debt Instruments | The following table summarizes information about the net carrying amounts of long-term debt, consisting of the 4.500% Convertible Senior Notes due 2024 (the “2024 Notes”), 2.875% Convertible Senior Notes due 2026 (the “2026 Notes”), and the 1.50% Convertible Senior Notes due 2027 (the “2027 Notes”, and together with the 2024 Notes and 2026 Notes, the “Senior Notes”), as of September 30, 2023:
The following table summarizes information about the Senior Notes as of December 31, 2022:
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Summary of Interest Expense | The following table summarizes interest expense recognized on the Senior Notes:
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Summary of Maturities of Notes | The following table summarizes the future principal payments as of September 30, 2023:
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | A summary of stock option activity for the nine months ended September 30, 2023 is below:
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Summary of Unvested Restricted Stock Units Activity | A summary of unvested restricted stock units activity for the nine months ended September 30, 2023 is below:
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Segment and Related Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Information | Information as to the Company’s segments is set forth in the tables below:
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Schedule of Identifiable Assets by Reporting Segment | The following table represents assets by reporting segment.
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Schedule of Revenue by Geographic Area | The following table represents assets by country based on the location of the assets.
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Schedule of Goodwill by Reporting Segment | The following table represents goodwill by reporting segment.
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Schedule of Revenue by Major Customers | Customers comprising 10% or more of the Company’s total revenues by reporting segment are summarized as follows:
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Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in the Estimated Fair Values of the Company’s Liabilities for Contingent Consideration | The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the nine months ended September 30, 2023:
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Schedule of Fair Value, Liabilities Measured on Recurring Basis | The following table provides quantitative information associated with the fair value measurement of the Company’s liabilities for contingent consideration:
|
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Cash Held on Behalf of Customers (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash | $ 43,096 | $ 18,856 | ||
Money market funds | 40 | 51,472 | ||
Cash held on behalf of customers | 8,758 | 7,205 | $ 3,985 | |
Total cash and cash equivalents and cash held on behalf of customers | $ 51,894 | $ 77,533 | $ 89,504 | $ 188,419 |
Summary of Significant Accounting Policies - Carrying Value of Investment Securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Summary of Investment Holdings [Line Items] | ||
Total Short-term Investments | $ 36,717 | $ 40,290 |
Treasury bills and notes | ||
Summary of Investment Holdings [Line Items] | ||
Total Short-term Investments | $ 36,717 | $ 40,290 |
Revenue Recognition - Changes in Deferred Revenue, Inclusive of Both Current and Long-term (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue, Remaining Performance Obligation [Roll Forward] | ||
Beginning balance | $ 13,584 | $ 20,046 |
Acquired deferred revenue (Note 3) | 0 | 443 |
Recognition of deferred revenue | (19,074) | (28,493) |
Deferral of revenue | 17,889 | 24,837 |
Ending balance | $ 12,399 | $ 16,833 |
Acquisitions - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Jul. 25, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Business Acquisition [Line Items] | ||||
Common stock issued for acquisition | $ 0 | $ 6,300 | ||
MENU Technologies AG | ||||
Business Acquisition [Line Items] | ||||
Percent acquired | 100.00% | |||
Business acquisition, purchase price | $ 18,400 | |||
Business acquisition, cash paid | $ 6,300 | |||
Equity interest issued (in shares) | 162,917 | |||
Business acquisition, share price (in dollars per share) | $ 38.67 | |||
Common stock issued for acquisition | $ 14,200 | |||
Escrow deposit | $ 3,000 | |||
Escrow deposit, term | 18 months | |||
Business acquisition, expenses | $ 1,100 | $ 1,100 | ||
MENU Technologies AG | Developed Technology Rights | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Life | 7 years |
Acquisitions - Management's Final Purchase Price Allocation (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Jul. 25, 2022 |
---|---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 487,073 | $ 486,762 | |
MENU Technologies AG | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cash | $ 843 | ||
Accounts receivable | 209 | ||
Property and equipment | 204 | ||
Prepaid and other acquired assets | 221 | ||
Goodwill | 28,495 | ||
Total assets | 40,672 | ||
Accounts payable and accrued expenses | 1,300 | ||
Deferred revenue | 443 | ||
Earn-out liability | 14,200 | ||
Consideration paid | 24,729 | ||
MENU Technologies AG | Developed Technology Rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Developed technology | $ 10,700 |
Accounts receivable, net - Accounts Receivables, Net (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accounts Receivable [Abstract] | ||
Accounts receivable, net | $ 66,441 | $ 59,960 |
Government segment | ||
Accounts Receivable [Abstract] | ||
Accounts receivable, net | 21,895 | 17,320 |
Restaurant/Retail segment | ||
Accounts Receivable [Abstract] | ||
Accounts receivable, net | $ 44,546 | $ 42,640 |
Accounts receivable, net - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Receivables [Abstract] | ||
Allowance for credit loss | $ 2.2 | $ 2.1 |
Accounts receivable, net - Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 2,100 | |
Provisions | 783 | $ 739 |
Ending balance | 2,200 | |
Restaurant/Retail | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 2,134 | 1,306 |
Provisions | 783 | 739 |
Write-offs | (734) | (263) |
Ending balance | $ 2,183 | $ 1,782 |
Inventories, net - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 13,418 | $ 21,998 |
Work in process | 241 | 383 |
Component parts | 9,612 | 13,749 |
Service parts | 922 | 1,464 |
Inventories, net | $ 24,193 | $ 37,594 |
Inventories, net - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Inventory reserves | $ 9.6 | $ 10.9 |
Identifiable Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Capitalized software development costs | $ 0.4 | $ 1.4 | $ 2.7 | $ 4.3 |
Identifiable Intangible Assets and Goodwill - Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Indefinite-lived Intangible Assets [Line Items] | ||||
Research and development | $ 14,660 | $ 12,843 | $ 43,863 | $ 33,785 |
Impact of foreign currency translation on intangible assets | 215 | 0 | (126) | 0 |
Amortization of acquired developed technology | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Research and development | 4,020 | 4,219 | 12,160 | 11,519 |
Amortization of internally developed software | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Research and development | $ 1,555 | $ 1,749 | $ 4,892 | $ 5,053 |
Identifiable Intangible Assets and Goodwill - Expected Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2023, remaining | $ 6,089 | |
2024 | 21,949 | |
2025 | 20,328 | |
2026 | 17,912 | |
2027 | 14,747 | |
Thereafter | 6,112 | |
Total | $ 87,137 | $ 102,792 |
Identifiable Intangible Assets and Goodwill - Schedule of Goodwill (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 486,762 |
Foreign currency translation | 311 |
Ending balance | $ 487,073 |
Debt - Summary of Long-term Debt Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Principal amount of notes outstanding | $ 398,750 | $ 398,750 |
Unamortized debt issuance cost | (7,964) | (9,558) |
Total long-term notes payable | $ 390,786 | 389,192 |
2024 Notes | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.50% | |
Principal amount of notes outstanding | $ 13,750 | 13,750 |
Unamortized debt issuance cost | (112) | (257) |
Total long-term notes payable | $ 13,638 | 13,493 |
2026 Notes | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.875% | |
Principal amount of notes outstanding | $ 120,000 | 120,000 |
Unamortized debt issuance cost | (1,991) | (2,511) |
Total long-term notes payable | $ 118,009 | 117,489 |
2027 Notes | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.50% | |
Principal amount of notes outstanding | $ 265,000 | 265,000 |
Unamortized debt issuance cost | (5,861) | (6,790) |
Total long-term notes payable | $ 259,139 | $ 258,210 |
Debt - Summary of Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Debt Disclosure [Abstract] | ||||
Contractual interest expense | $ 2,554 | $ 2,011 | $ 6,016 | $ 6,025 |
Accretion of debt in interest expense | 541 | 504 | 1,594 | 1,485 |
Total interest expense | $ 3,095 | $ 2,515 | $ 7,610 | $ 7,510 |
Debt - Summary of Maturities of Notes (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Disclosure [Abstract] | ||
2023, remaining | $ 0 | |
2024 | 13,750 | |
2025 | 0 | |
2026 | 120,000 | |
2027 | 265,000 | |
Thereafter | 0 | |
Total | $ 398,750 | $ 398,750 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||||
Share based compensation, value of forfeitures | $ 0.1 | $ 0.1 | $ 0.4 | $ 0.9 |
Share-based payment arrangement, expense | 4.0 | $ 3.5 | 10.6 | $ 10.3 |
Unrecognized compensation expense | $ 25.3 | $ 25.3 |
Net Loss Per Share (Details) - shares shares in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock options outstanding (in shares) | 929 | 1,045 |
Restricted Stock Unit Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock options outstanding (in shares) | 862 | 576 |
Segment and Related Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Identifiable assets by geographic area [Abstract] | ||
Assets | $ 809,209 | $ 854,858 |
Goodwill by business segment [Abstract] | ||
Goodwill | 487,073 | 486,762 |
United States | ||
Identifiable assets by geographic area [Abstract] | ||
Assets | 770,083 | 809,437 |
Other Countries | ||
Identifiable assets by geographic area [Abstract] | ||
Assets | 39,126 | 45,421 |
Restaurant/Retail | ||
Goodwill by business segment [Abstract] | ||
Goodwill | 486,337 | 486,026 |
Government | ||
Goodwill by business segment [Abstract] | ||
Goodwill | 736 | 736 |
Operating Segments | Restaurant/Retail | ||
Identifiable assets by geographic area [Abstract] | ||
Assets | 691,881 | 722,958 |
Operating Segments | Government | ||
Identifiable assets by geographic area [Abstract] | ||
Assets | 25,720 | 21,443 |
Other | ||
Identifiable assets by geographic area [Abstract] | ||
Assets | $ 91,608 | $ 110,457 |
Segment and Related Information - Revenue by Major Customers (Details) - Revenue - Customer Concentration Risk |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Segments | Yum! Brands, Inc. | Restaurant/Retail segment | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 9.00% | 10.00% | 9.00% | 10.00% |
Operating Segments | McDonald’s Corporation | Restaurant/Retail segment | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 7.00% | 15.00% | 8.00% | 12.00% |
Operating Segments | U.S. Department of Defense | Government segment | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 36.00% | 26.00% | 33.00% | 26.00% |
Other | All Others | Government segment | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 48.00% | 49.00% | 50.00% | 52.00% |
Fair Value of Financial Instruments - Changes in the Estimated Fair Values of the Company’s Liabilities for Contingent Consideration (Details) - Obligations $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 9,800 |
Change in fair value of contingent consideration | (7,500) |
Ending balance | $ 2,300 |
Fair Value of Financial Instruments - Fair Value, Liabilities Measured on Recurring Basis (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Adjustment to contingent consideration liability |
Revenue based payments | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Contingent consideration liability | $ 14,100 |
Fair Value | $ 2,300 |
Revenue based payments | Revenue volatility | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Weighted Average or Range | 0.250 |
Revenue based payments | Discount rate | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Weighted Average or Range | 0.140 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
Oct. 06, 2023 |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.02 | $ 0.02 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.02 | ||
2024 Notes | Convertible Notes | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Aggregate principal amount converted | $ 13,750 | ||
Shares issued upon conversion (in shares) | 497,376 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |
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