UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
For the quarterly period ended
or
For the transition period from to
Commission file number
(Exact Name of Registrant as Specified in Its Charter)
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(State or Other Jurisdiction of Incorporation or Organization) |
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(I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) (Zip Code)
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(Registrant’s Telephone Number, Including Area Code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol (s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes
As of August 3, 2023, the registrant had
RED VIOLET, INC.
TABLE OF CONTENTS FOR FORM 10-Q
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Item 1. |
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Condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022 |
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2 |
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3 |
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Condensed consolidated statements of cash flows for the six months ended June 30, 2023 and 2022 |
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5 |
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Item 2. |
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Management's Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 4. |
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Item 1. |
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Item 1A. |
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Item 2. |
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Item 3. |
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Item 4. |
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Item 5. |
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Item 6. |
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21 |
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PART I - FINANCIAL INFORMATION
Unless otherwise indicated or required by the context, all references in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” “red violet,” or the “Company,” refer to Red Violet, Inc. and its consolidated subsidiaries.
Item 1. Financial Statements.
RED VIOLET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(unaudited)
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June 30, 2023 |
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December 31, 2022 |
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ASSETS: |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Accounts receivable, net of allowance for doubtful accounts of $ |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net |
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Intangible assets, net |
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Goodwill |
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Right-of-use assets |
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Other noncurrent assets |
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Total assets |
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$ |
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$ |
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LIABILITIES AND SHAREHOLDERS' EQUITY: |
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Current liabilities: |
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Accounts payable |
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$ |
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$ |
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Accrued expenses and other current liabilities |
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Current portion of operating lease liabilities |
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Deferred revenue |
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Total current liabilities |
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Noncurrent operating lease liabilities |
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Deferred tax liabilities |
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Total liabilities |
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Shareholders' equity: |
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Preferred stock—$ |
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Common stock—$ |
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Treasury stock, at cost, |
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Additional paid-in capital |
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Accumulated deficit |
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Total shareholders' equity |
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Total liabilities and shareholders' equity |
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$ |
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$ |
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See notes to condensed consolidated financial statements
1
RED VIOLET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
(unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Revenue |
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$ |
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$ |
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$ |
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$ |
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Costs and expenses: |
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Cost of revenue (exclusive of depreciation and amortization) |
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Sales and marketing expenses |
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General and administrative expenses |
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Depreciation and amortization |
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Total costs and expenses |
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Income (loss) from operations |
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( |
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Interest income, net |
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- |
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Income (loss) before income taxes |
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Income tax expense |
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Net income (loss) |
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$ |
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$ |
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$ |
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$ |
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Earnings (loss) per share: |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
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Weighted average number of shares outstanding: |
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Basic |
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Diluted |
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See notes to condensed consolidated financial statements
2
RED VIOLET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Amounts in thousands, except share data)
(unaudited)
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Common stock |
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Treasury stock |
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Additional paid-in |
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Accumulated |
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Shares |
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Amount |
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Shares |
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Amount |
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capital |
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deficit |
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Total |
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Balance at March 31, 2022 |
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$ |
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- |
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$ |
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$ |
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$ |
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$ |
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Vesting of restricted stock units |
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- |
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- |
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- |
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- |
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- |
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- |
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Increase in treasury stock resulting |
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- |
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- |
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( |
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- |
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- |
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( |
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Common stock repurchased |
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- |
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- |
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( |
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( |
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- |
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- |
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( |
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Retirement of treasury stock |
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( |
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- |
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( |
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- |
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Share-based compensation |
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- |
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- |
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- |
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- |
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- |
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Net loss |
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- |
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- |
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- |
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- |
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- |
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( |
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( |
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Balance at June 30, 2022 |
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$ |
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( |
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$ |
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$ |
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$ |
( |
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$ |
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Balance at March 31, 2023 |
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$ |
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( |
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$ |
( |
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$ |
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$ |
( |
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$ |
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Vesting of restricted stock units |
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- |
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- |
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- |
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- |
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Increase in treasury stock resulting |
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- |
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- |
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( |
) |
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( |
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- |
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- |
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( |
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Common stock repurchased |
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- |
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- |
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( |
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( |
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- |
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- |
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( |
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Retirement of treasury stock |
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( |
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- |
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( |
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- |
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- |
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Share-based compensation |
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- |
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- |
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- |
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- |
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- |
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Net income |
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- |
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- |
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- |
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- |
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- |
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Balance at June 30, 2023 |
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$ |
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( |
) |
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$ |
( |
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$ |
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$ |
( |
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$ |
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Common stock |
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Treasury stock |
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Additional paid-in |
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Accumulated |
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Shares |
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Amount |
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Shares |
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Amount |
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capital |
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deficit |
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Total |
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Balance at December 31, 2021 |
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$ |
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- |
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$ |
- |
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$ |
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$ |
( |
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$ |
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Vesting of restricted stock units |
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- |
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- |
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( |
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- |
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- |
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Increase in treasury stock resulting |
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- |
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- |
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( |
) |
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( |
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- |
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- |
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( |
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Common stock repurchased |
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- |
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- |
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( |
) |
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( |
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- |
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- |
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( |
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Retirement of treasury stock |
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( |
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- |
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( |
) |
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- |
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- |
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Share-based compensation |
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- |
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- |
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- |
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- |
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- |
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Net loss |
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- |
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- |
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- |
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- |
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- |
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( |
) |
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( |
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Balance at June 30, 2022 |
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$ |
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( |
) |
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$ |
( |
) |
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$ |
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$ |
( |
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$ |
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Balance at December 31, 2022 |
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$ |
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- |
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$ |
- |
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$ |
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$ |
( |
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$ |
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Vesting of restricted stock units |
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- |
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- |
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- |
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- |
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- |
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- |
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Increase in treasury stock resulting |
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- |
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- |
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( |
) |
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( |
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- |
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- |
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( |
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Common stock repurchased |
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- |
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- |
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( |
) |
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( |
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- |
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- |
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( |
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Retirement of treasury stock |
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( |
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- |
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( |
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- |
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- |
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Share-based compensation |
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- |
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- |
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- |
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- |
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- |
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Net income |
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- |
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- |
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- |
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- |
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- |
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Balance at June 30, 2023 |
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$ |
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( |
) |
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$ |
( |
) |
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$ |
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$ |
( |
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$ |
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See notes to condensed consolidated financial statements
3
RED VIOLET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(unaudited)
|
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Six Months Ended June 30, |
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2023 |
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2022 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net income (loss) |
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$ |
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$ |
( |
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Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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Depreciation and amortization |
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Share-based compensation expense |
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Write-off of long-lived assets |
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Provision for bad debts |
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Noncash lease expenses |
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Deferred income tax expense |
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Changes in assets and liabilities: |
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Accounts receivable |
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( |
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