Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Security Incident

On September 29, 2020, we filed a Current Report on Form 8-K reporting a security incident (the "Incident") involving ransomware disrupting access to some of our internal information technology (IT) systems and telephone systems. We currently have no evidence that the environments where we host client applications were affected, and our hosting services to those clients were not interrupted. While our investigation is ongoing, we believe we have contained the Incident, and we continue with our recovery and remediation efforts.

As part of our immediate response to the Incident, we (1) shut down points of access to external systems and began investigating and remediating the problem; (2) engaged outside IT security and forensics experts to conduct a detailed review and help securely restore affected systems; (3) implemented targeted monitoring systems to supplement the systems we already had in place; and (4) notified law enforcement. We are cooperating with their investigation.

Because this is an active investigation, we are not providing additional specifics relating to the ransomware at this time. We promptly notified our clients of the Incident and continue to provide timely updates to our clients through direct communications and updates to our website. Currently, we have no evidence of malicious activity on client networks, and we continue to work closely with our clients.

We are subject to risk and uncertainties as a result of the Incident. Our investigation remains ongoing and there can be no assurance as to what the impact of the Incident will be. The Incident has caused and may continue to cause an interruption in parts of our business. Such interruption may result in a loss of revenue and incremental costs that may adversely impact the Company’s financial results. We maintain cybersecurity insurance coverage in an amount that we believe is adequate. We incurred immaterial costs associated with the Incident during the three months ended September 30, 2020. It is expected that we will continue to incur costs related to our response, remediation, and investigatory efforts relating to the Incident. Due to the timing of the Incident and ongoing investigatory efforts, we are unable at this time to determine whether any loss has been incurred as a result of the Incident as of September 30, 2020.

Litigation

Other than routine litigation incidental to our business, there are no material legal proceedings pending to which we are party or to which any of our properties are subject.