Marchex(MCHX) - 2021 Q3 - Quarterly Report

Revenue and Financial Performance - The allowance for advertiser credits was $227,000 as of December 31, 2020, and decreased to$219,000 by September 30, 2021[38]. - The deferred revenue balance was $1.4 million as of December 31, 2020, and decreased to$1.3 million by September 30, 2021[38]. - Revenue recognized from contract liabilities for the three months ended September 30, 2021, was $176,000, compared to$166,000 for the same period in 2020[38]. - For the nine months ended September 30, 2021, revenue recognized from contract liabilities was $1.3 million, up from$974,000 in 2020[38]. - The majority of the Company's revenue is derived from the United States, accounting for 99% of total revenue for the three months ended September 30, 2021[44]. - There were no customers representing more than 10% of consolidated revenue for the three and nine months ended September 30, 2021[45]. - One customer represented 19% of consolidated accounts receivable as of September 30, 2021[46]. Cash and Expenses - As of September 30, 2021, the total cash and cash equivalents decreased to $27,781,000 from$33,851,000 as of December 31, 2020, representing a decline of approximately 18%[48]. - Stock-based compensation expense for the nine months ended September 30, 2021, was $2,007,000, down from$2,624,000 for the same period in 2020, indicating a reduction of about 23%[51]. - The total stock-based compensation for the three months ended September 30, 2021, was $608,000, down from$817,000 for the same period in 2020, reflecting a decrease of approximately 25%[51]. - The depreciation and amortization expense related to property and equipment for the nine months ended September 30, 2021 was approximately $965 thousand, down from$1.2 million in the same period of 2020[60]. - The company recognized an operating lease cost of $1,381 thousand for the nine months ended September 30, 2021[66]. Net Loss and Earnings Per Share - The basic net loss per share applicable to common stockholders for the nine months ended September 30, 2021, was$(0.70) compared to $(0.70) for the same period in 2020, showing no change year-over-year[57]. - The net loss from continuing operations for Class A common stockholders for the nine months ended September 30, 2021, was$(250,000), compared to $(3,571,000) for the same period in 2020[57]. - For the nine months ended September 30, 2021, the diluted net loss per share applicable to common stockholders was$(0.70) for Class A and Class B shares, compared to $(0.70) for the same period in 2020[58]. - The net loss from continuing operations for the nine months ended September 30, 2021 was$(2,355) thousand, compared to $(36,329) thousand for the same period in 2020[58]. Assets and Liabilities - The Company operated in a single segment focused on core analytics and solutions services for the nine months ended September 30, 2021[42]. - No significant long-lived assets were held by entities outside of the United States as of September 30, 2021[43]. - The balance of stock options at September 30, 2021, was 3,532,000, slightly up from 3,460,000 at December 31, 2020[53]. - The company had gross future operating lease payments of$3,890 thousand as of September 30, 2021[67]. - The total long-term operating lease liabilities as of September 30, 2021 amounted to $1,926 thousand[67]. - The weighted-average remaining lease term for operating leases was 2.1 years as of September 30, 2021[66]. Intangible Assets and Impairments - As of September 30, 2021, total identifiable intangible assets from acquisitions amounted to$5.488 million, down from $9.196 million as of December 31, 2020[78]. - The Company recorded a pre-tax non-cash impairment of$5.0 million in Q1 2020 related to customer relationships, technologies, non-compete agreements, and tradenames[77]. - The balance of goodwill remained unchanged at $17.6 million as of September 30, 2021[79]. - The Company recorded a 100$5.3 million in promissory notes under the CARES Act, with a remaining balance of $5.1 million as of December 31, 2020, and recognized a gain on extinguishment of$5.2 million in Q3 2021[83]. - The Company received approximately $135,000 and$434,000 in foreign wage subsidy funding during the three and nine months ended September 30, 2021, respectively[84]. - The Company sold certain assets for approximately $2.3 million in October 2020, which were classified as discontinued operations[86]. - The Company entered into an administrative support services agreement with the related party purchaser, generating support services fees of$2.2 million and $5.1 million for the three and nine months ended September 30, 2021, respectively[87]. - The Company has no known legal proceedings that are expected to have a material adverse effect on its financial condition[71]. - The Company performed annual impairment testing for goodwill on November 30, with no additional impairment loss determined after the initial$14.7 million loss in Q1 2020[80].