0000950170-24-028115 | 10-K | XBRL Viewer

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation of property and equipment	$ 233	$ 235

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid- in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2021	$ 69,429	$ 13		$ 91,434	$ (22,018)
Beginning balances, shares at Dec. 31, 2021		13,488,540
Vesting of restricted stock units		$ 1		(1)
Vesting of restricted stock units, Shares		770,210
Increase in treasury stock resulting from shares withheld to cover statutory taxes	(5,200)		$ (5,200)
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares			(252,346)
Common stock repurchased, value	(878)		$ (878)
Common stock repurchased, shares			(50,000)
Retirement of treasury stock	6,078		$ 6,078	(6,078)
Retirement of of treasury stock, Shares		(302,346)	302,346
Share-based compensation	7,126			7,126
Net income	616				616
Ending balance at Dec. 31, 2022	71,093	$ 14		92,481	(21,402)
Ending balances, shares at Dec. 31, 2022		13,956,404
Vesting of restricted stock units, Shares		309,416
Increase in treasury stock resulting from shares withheld to cover statutory taxes	(1,992)		$ (1,992)
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares			(99,234)
Common stock repurchased, value	(3,755)		$ (3,755)
Common stock repurchased, shares			(195,740)
Retirement of treasury stock	5,559		$ 5,559	(5,559)
Retirement of of treasury stock, Shares		(285,546)	285,546
Share-based compensation	7,237			7,237
Net income	13,529				13,529
Ending balance at Dec. 31, 2023	$ 86,112	$ 14	$ (188)	$ 94,159	$ (7,873)
Ending balances, shares at Dec. 31, 2023		13,980,274	(9,428)

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income taxes

8. Income taxes

The Company is subject to federal and state income taxes in the United States. The income taxes on income before income taxes consisted of the following:


	Year Ended December 31,
(In thousands)	2023			2022
Current
Federal	$	16		$	-
State		94			7
		110			7
Deferred
Federal		(2,139	)		1,149
State		371			392
Valuation allowance		(8,033	)		(1,452	)
		(9,801	)		89
Income tax (benefit) expense	$	(9,691	)	$	96

The Company’s effective income tax (benefit) expense differed from the U.S. corporate statutory income tax rate for the years ended December 31, 2023 and 2022. A reconciliation is as follows:


	Year Ended December 31,
(In thousands)	2023					2022
Tax on income before income taxes	$	806		21	%	$	150		21	%
Effect of state taxes (net of federal income tax effect)		515		13	%		428		60	%
Research and development tax credits		(3,213	)	-84	%		-		0	%
Excess tax benefit from share-based compensation		135		4	%		(731	)	-103	%
Nondeductible executive compensation		300		8	%		1,789		251	%
Other permanent differences		(115	)	-4	%		(57	)	-8	%
State rate change		(86	)	-2	%		(31	)	-4	%
Changes in valuation allowance		(8,033	)	-209	%		(1,452	)	-204	%
Income tax (benefit) expense	$	(9,691	)	-253	%	$	96		13	%

Components of deferred tax assets and liabilities consist of the following:


(In thousands)	December 31, 2023		December 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$	8,786	$	10,802
Research and development tax credits		3,165		-
Share-based compensation		941		759
Accounts receivable		41		16
Operating lease liabilities		661		342
Deferred revenue and others		177		184
		13,771		12,103
Valuation allowance		-		(8,033	)
		13,771		4,070
Deferred tax liabilities:
Intangible assets		3,475		3,889
Right-of-use assets		633		295
Property and equipment		149		173
		4,257		4,357
Net deferred tax assets (liabilities)	$	9,514	$	(287	)

As of December 31, 2023, the Company had gross federal and state net operating loss carryforwards of $36,486 and $24,021, respectively. Federal net operating losses have an indefinite life and do not expire. State net operating losses of approximate $7,108 expire beginning in 2029 and the remaining could be carried forward indefinitely. As of December 31, 2023, the Company has $3,165 of research and development tax credits which begin to expire in 2039. The Company’s federal and state net operating losses, and research and development tax credits, are not subject to annual Section 382 limitations due to ownership changes that could impact the future realization.

ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. On a periodic basis, management evaluates and determines the amount of valuation allowance required and adjusts such valuation allowance accordingly. Primarily due to cumulative pre-tax losses, management determined a full valuation allowance of $8,033 was necessary as of December 31, 2022, to reduce the deferred tax assets to the amount that is more likely than not to be realized. During the year ended December 31, 2023, the Company released the valuation allowance previously recorded on its deferred tax assets. The Company concluded that, due to its established historical cumulative positive income before income taxes plus permanent differences for the recent years, projections of future taxable income and the reversal of taxable temporary differences, the realization of the deferred tax assets as of December 31, 2023 is more likely than not.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the Company’s financial statements.

The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law, and new authoritative rulings. Due to the existence of net operating loss carryforwards since inception, all of the Company’s income tax filings remain open for tax examinations.

The Company does not have any unrecognized tax benefits as of December 31, 2023 and 2022.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) Customer Supplier	Dec. 31, 2022 USD ($) Customer Supplier	Dec. 31, 2021 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Net income	$ 13,529	$ 616
Net cash provided by operating activities	15,071	12,459
Accumulated deficit	7,873	21,402
Cash and cash equivalents	32,032	31,810
Net increase in cash and cash equivalent	$ 222	(2,448)
Cash and cash equivalents maturity description	three months or less
FDIC Insurance limit	$ 250
Allowance for doubtful accounts	159	60	$ 28
valuation allowance		8,033
Goodwill	5,227	5,227
Goodwill impairment	0	0
Accumulated goodwill impairment loss	0
Impairment of long lived assets	$ 0	0
Deferred revenue recognition period	12 months
Estimated revenue expected to be recognized in the future	$ 15,821
Additional automatic renewal period of contract	12 months
Description of written notice of intent for renewal of contract term	Revenue pursuant to contracts containing a monthly fee is considered to be a single performance obligation consisting of a series of distinct services, and is recognized ratably over the contract period, which is generally 12 months, and the contract shall automatically renew for additional, successive 12-month terms unless written notice of intent not to renew is provided by one party to the other at least 30 days or 60 days prior to the expiration of the then current term.
Deferred revenue	$ 690	670
Deferred revenue realization period	12 months
Revenue recognized, previously reported as deferred	$ 670
Advertising and promotion costs	$ 541	261
Percentage of tax benefits likelihood of being realized upon settlement of tax authority	greater than 50%
Non Current Portion Unbilled Accounts Receivable	$ 371	464
Current Portion Unbilled Accounts Receivable	$ 829	$ 923
Customer Concentration Risk \| Sales Revenue, Net
Summary Of Significant Accounting Policies [Line Items]
Major customers \| Customer	0	0
Supplier Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Amended and renewed term of agreement expiration date with supplier	Jun. 30, 2026
Each party's written notice of termination prior to end of amended and renewed term	30 days
The Company's written notice of termination during the initial term	24 months
Supplier's written notice of termination during the initial term	12 months
Remaining minimum purchase commitments through end of amended and renewed term	$ 13,400
Supplier Concentration Risk \| Cost of Total Data Acqusition \| Largest Data Supplier
Summary Of Significant Accounting Policies [Line Items]
Concentration risk	48.00%	49.00%
Supplier Concentration Risk \| Total Accounts Payable \| Data Supplier One
Summary Of Significant Accounting Policies [Line Items]
Concentration risk	27.00%	40.00%
Number of major suppliers \| Supplier	1	1
Customers With Pricing Contracts
Summary Of Significant Accounting Policies [Line Items]
Percentage of Revenue	79.00%	75.00%
Transactional Customers
Summary Of Significant Accounting Policies [Line Items]
Percentage of Revenue	21.00%	25.00%
Interactive Data
Summary Of Significant Accounting Policies [Line Items]
Goodwill	$ 5,227	$ 5,227
Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of intangible assets	5 years
Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life of intangible assets	10 years
No Customer \| Customer Concentration Risk \| Sales Revenue, Net
Summary Of Significant Accounting Policies [Line Items]
Concentration risk	10.00%	10.00%
Customer One \| Customer Concentration Risk \| Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Concentration risk	11.00%	11.00%
United States
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 32,032	$ 31,810

Leases - Scheduled Future Maturities and Present Value of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2024	$ 790
2025	580
2026	519
2027	535
2028	551
2029 and thereafter	279
Total maturities	3,254
Present value included in consolidated balance sheet:
Current portion of operating lease liabilities	569	$ 692
Noncurrent operating lease liabilities	1,999	$ 598
Total operating lease liabilities	2,568
Difference between the maturities and the present value of operating lease liabilities	$ 686

Income Taxes - Effective Income Tax Benefit Differed from Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract]
Tax on income before income taxes	$ 806	$ 150
Effect of state taxes (net of federal tax benefit)	515	428
Research and development tax credits	(3,213)	0
Excess tax benefit from share-based compensation	135	(731)
Nondeductible executive compensation	300	1,789
Other permanent differences	(115)	(57)
State rate change	(86)	(31)
Changes in valuation allowance	(8,033)	(1,452)
Income tax (benefit) expense	$ (9,691)	$ 96
Tax on income before income taxes	21.00%	21.00%
Effect of state taxes (net of federal tax benefit)	13.00%	60.00%
Research and development tax credits	(84.00%)	0.00%
Excess tax benefit from share-based compensation	4.00%	(103.00%)
Nondeductible executive compensation	8.00%	251.00%
Other permanent differences	(4.00%)	(8.00%)
State rate change	(2.00%)	(4.00%)
Changes in valuation allowance	(209.00%)	(204.00%)
Income tax (benefit) expense	(253.00%)	13.00%

Share-based Compensation - Schedule of Unvested RSU Activity (Parenthetical) (Details) - $ / shares

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting period

2 years

Maximum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting period

4 years

Employees and Directors | Minimum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting period

4 months

Employees and Directors | Maximum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting period

4 years

Restricted Stock Units (RSUs)

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Granted, Number of units

^[1]

399,900

561,100

Grant date fair value

^[1]

$ 20.39

$ 18.29

Restricted Stock Units (RSUs) | Employees and Directors

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Granted, Number of units

561,100

Grant date fair value

399,900

Restricted Stock Units (RSUs) | Employees and Directors | Minimum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Grant date fair value

16.17

$ 16

Restricted Stock Units (RSUs) | Employees and Directors | Maximum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Grant date fair value

$ 20.92

$ 28.75

Performance Based Restricted Stock Units

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Granted, Number of units

2,442,000

Performance Based Restricted Stock Units | Criteria One

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Granted, Number of units

^[2]

1,577,500

Grant date fair value

^[2]

$ 7.66

Performance Based Restricted Stock Units | Criteria One | Minimum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting period

^[2]

3 years

Performance Based Restricted Stock Units | Criteria One | Maximum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting period

^[2]

4 years

Performance Based Restricted Stock Units | Criteria Two

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Granted, Number of units

^[3]

277,500

Grant date fair value

^[3]

$ 12.27

Performance Based Restricted Stock Units | Criteria Two | Minimum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting period

^[3]

3 years

Performance Based Restricted Stock Units | Criteria Two | Maximum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting period

^[3]

4 years

Performance Based Restricted Stock Units | Employees and Directors | Criteria Two | Maximum | 2018 Stock Incentive Plan

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting period

4 years

[1]	For the year ended December 31, 2022, the Company granted an aggregate of 561,100 RSUs to certain employees and members of the Company's board of directors at grant date fair values ranging from $16.00 to $28.75 per share, with a vesting period ranging from two to four years. For the year ended December 31, 2023, the Company granted an aggregate of 399,900 RSUs to certain employees and members of the Company's board of directors at grant date fair values ranging from $16.17 to $20.92 per share, with a vesting period ranging from 4 months to four years.
[2]	Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. As of June 30, 2019, the Company determined that the Criteria One was met. As of December 31, 2022, all shares underlying such awards have vested and been issued in accordance with their time-based vesting requirement.
[3]	Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. The Company determined that Criteria Two was met as of March 31, 2021. As of December 31, 2023, all shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement.

Leases - Additional Information (Details) - ft²	1 Months Ended
Leases - Additional Information (Details) - ft²	Apr. 30, 2017	Jan. 31, 2017	Dec. 31, 2023	Sep. 20, 2023	Dec. 31, 2022
Leases [Abstract]
Operating leases rentable square feet	6,003	21,020
Operating lease agreement	90 months	89 months
Operating lease, existence of option to extend	true	true
Operating lease, extended term	60 months	60 months		60 months
Weighted average remaining operating lease			4 years 10 months 24 days		1 year 10 months 24 days

Accounts Receivable, Net - Summary of Movement of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
Beginning balance	$ 60	$ 28
Charges to expenses	1,088	174
Write-offs	(989)	(142)
Ending balance	$ 159	$ 60

Commitments and Contingencies - Future Minimum Capital Payments under Certain Data Licensing Agreements (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024	$ 8,177
2025	7,702
2026	3,950
Total	$ 19,829

Leases - Summary of Company's Lease Information (Paranthetical) (Details) - USD ($)
$ in Thousands

Dec. 31, 2023

^[1]

Sep. 20, 2023

Dec. 31, 2022

Dec. 31, 2018

Leases [Abstract]

Right-of-use assets and operating lease liabilities

$ 1,919

Weighted average discount rate for operating leases

10.00%

0.00%

8.00%

[1]

The Company used 10.0%, its estimated incremental borrowing rate for similar secured assets, as the discount rate for the Amended Lease to determine the present value of the lease payments because the implicit rate is not readily determinable. The discount rate was calculated on the basis of information available as of the Remeasurement Date. The Company used 8.0%, its estimated incremental borrowing rate for similar secured assets calculated on the basis of information available as of January 1, 2019, the initial application date, as the discount rate for the leases that existed prior to the Remeasurement Date, to determine the present value of the lease payments.

Share-based Compensation - Summary of Allocated Share-based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-based compensation recognized
Share-based compensation expense	$ 5,386	$ 5,505
Share-based compensation capitalized in intangible assets	1,851	1,621
Total	7,237	7,126
Sales and Marketing Expenses
Share-based compensation recognized
Share-based compensation expense	462	290
General and Administrative Expenses
Share-based compensation recognized
Share-based compensation expense	$ 4,924	$ 5,215

Common Stock and Preferred Stock

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Common Stock and Preferred Stock

9. Common stock and preferred stock

Common stock and treasury stock

As of December 31, 2023 and 2022, the number of authorized shares of common stock was 200,000,000, with a par value of $0.001 per share, of which, 13,980,274 and 13,956,404 shares of common stock were issued, respectively, which included shares of treasury stock of 9,428 and 0, respectively.

During the year ended December 31, 2022, the changes in the number of issued shares of common stock and treasury stock was due to the following factors:

•

An aggregate of 770,210 shares of common stock issued as a result of the vesting of RSUs, of which, 252,346 shares of common stock were withheld to pay withholding taxes upon such vesting, which were reflected in treasury stock, with a cost of $5,200. The treasury stock of 252,346 shares was then retired fully during the year ended December 31, 2022.

•

On May 2, 2022, the board of directors of the Company authorized the repurchase of up to $5.0 million of the Company's common stock from time to time, and subsequently on December 19, 2023, the board of directors authorized the repurchase of an additional $5.0 million of the Company's common stock (the "Stock Repurchase Program"). The Stock Repurchase Program does not obligate the Company to repurchase any shares and may be modified, suspended, or terminated at any time and for any reason at the discretion of the board of directors. During the year ended December 31, 2022, the Company repurchased 50,000 shares of common stock under the Stock Repurchase Program, which was reflected in treasury stock, with a cost of $878. The treasury stock of 50,000 shares was then retired fully during the year ended December 31, 2022.

During the year ended December 31, 2023, the changes in the number of issued shares of common stock and treasury stock was due to the following factors:

•

An aggregate of 309,416 shares of common stock were issued as a result of the vesting of RSUs, of which, 99,234 shares of common stock were withheld to pay withholding taxes upon such vesting, which were reflected in treasury stock, with a cost of $1,992. The treasury stock of 99,234 shares was then retired during the year ended December 31, 2023.

•

During the year ended December 31, 2023, the Company repurchased 195,740 shares of common stock under the Stock Repurchase Program, which was reflected in treasury stock, with a cost of $3,755. Related treasury stock of 186,312 shares, with a cost of $3,567, was retired during the year ended December 31, 2023, which resulted in a treasury stock balance of $188 as of December 31, 2023.

Preferred stock

As of December 31, 2023 and 2022, the Company had 10,000,000 shares of preferred stock with par value of $0.001 per share authorized, and there were no shares of preferred stock issued or outstanding.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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+ Details

Income Taxes - Schedule of Benefit for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Current
Federal	$ 16	$ 0
State	94	7
Current Income Tax Expense (Benefit), Total	110	7
Deferred
Federal	(2,139)	1,149
State	371	392
Valuation allowance	(8,033)	(1,452)
Deferred Income Tax Expense (Benefit), Total	(9,801)	89
Income tax (benefit) expense	$ (9,691)	$ 96

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings (Loss) Per Share

For the years ended December 31, 2023 and 2022, the basic and diluted earnings per share was as follows:


	Year Ended December 31,
(In thousands, except share data)	2023		2022
Numerator:
Net income	$	13,529	$	616
Denominator:
Weighted average shares outstanding:
Basic		13,974,125		13,759,296
Diluted(1)		14,134,021		14,107,144
Earnings per share:
Basic	$	0.97	$	0.04
Diluted	$	0.96	$	0.04

(1)

For the years ended December 31, 2023 and 2022, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of significant accounting policies

(a) Basis of preparation and liquidity

The accompanying consolidated financial statements have been prepared by red violet in accordance with accounting principles generally accepted in the United States (“US GAAP”).

The Company reported net income of $13,529 and $616 for the years ended December 31, 2023 and 2022, respectively. Net cash provided by operating activities was $15,071 and $12,459 for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, the Company had an accumulated deficit of $7,873.

As of December 31, 2023, the Company had available cash and cash equivalents of $32,032, an increase of $222 from $31,810 as of December 31, 2022. Based on this available cash and cash equivalents, and the projections of growth in revenue and operating results in the coming year, the Company believes that it will have sufficient cash resources to finance its operations and expected capital expenditures for the next twelve months from the date the financials are issued.

Principles of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions among the Company and its subsidiaries have been eliminated upon consolidation.

(b) Use of estimates

The preparation of consolidated financial statements in accordance with US GAAP requires red violet’s management to make estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the revenue recognition, allowance for doubtful accounts, useful lives of intangible assets, recoverability of the carrying amount of goodwill and intangible assets, share-based compensation, and income tax provision. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates.

Cash and cash equivalents consist of cash on hand and bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use.

The Company’s cash and bank deposits were held in major financial institutions located in the United States, which management believes have high credit ratings. The cash and bank deposits held in the United States, denominated in USD, amounted to $32,032 and $31,810 as of December 31, 2023 and 2022, respectively.

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist principally of cash investments. The Company places its temporary cash instruments with well-known financial institutions within the United States, and, at times, may maintain balances in United States banks in excess of the $250 US Federal Deposit Insurance Corporation insurance limit. The Company monitors the credit ratings of the financial institutions to mitigate this risk.

(d) Accounts receivable

Accounts receivable are due from customers and are generally unsecured, which consist of amounts earned but not yet collected. None of the Company’s accounts receivable bear interest. In some arrangements, a right to consideration for the Company's performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled accounts receivable. As of December 31, 2023, the current and noncurrent portion unbilled accounts receivable of $829 and $371, respectively, were included within accounts receivable and other noncurrent assets, respectively, on the consolidated balance sheets. As of December 31, 2022, the current and noncurrent portion unbilled accounts receivable of $923 and $464, respectively, were included within accounts receivable and other noncurrent assets, respectively, on the consolidated balance sheets.

The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management determines the allowance based on reviews of various factors, including historical experience, the age of the accounts receivable balance, customer-specific facts, economic conditions, and other factors that may affect the Company's ability to collect from customers. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. The amount of the allowance for doubtful accounts was $159 and $60 as of December 31, 2023 and 2022, respectively, which was included within accounts receivable, net, on the consolidated balance sheets.

(e) Property and equipment

Property and equipment are stated at cost, net of accumulated depreciation or amortization. Expenditures for maintenance, repairs, and minor renewals are charged to expense in the period incurred. Betterments and additions are capitalized. Property and equipment are depreciated on the straight-line basis over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of their estimated useful lives or lease terms that are reasonably assured. The estimated useful lives of property and equipment are as follows:


Computer and network equipment			5-7 years
Furniture, fixtures and office equipment			5 years
Leasehold improvements			7 years

When items of property and equipment are retired or otherwise disposed of, loss/income is charged or credited for the difference between the net book value and proceeds received thereon.

(f) Intangible assets other than goodwill

The Company’s intangible assets are initially recorded at the capitalized actual costs incurred, their acquisition cost, or fair value if acquired as part of a business combination, and amortized on a straight-line basis over their respective estimated useful lives, which are the periods over which the assets are expected to contribute directly or indirectly to the future cash flows of the Company. The Company’s intangible assets represent software developed for internal use. Intangible assets have estimated useful lives of 5-10 years.

In accordance with ASC 350-40, “Software — Internal use software,” the Company capitalizes eligible costs, including salaries and staff benefits, share-based compensation expense, travel expenses incurred by relevant employees, and other relevant costs of developing internal-use software that are incurred in the application development stage when developing or obtaining software for internal use. Once the software developed for internal use is ready for its intended use, it is amortized on a straight-line basis over its useful life.

(g) Goodwill

Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. As of December 31, 2023 and 2022, the balance of goodwill of $5,227 was as a result of the acquisition of Interactive Data, LLC (“Interactive Data”), a wholly-owned subsidiary of red violet, effective on October 2, 2014.

In accordance with ASC 350, “Intangibles - Goodwill and Other,” goodwill is tested at least annually for impairment, or when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that its fair value exceeds the carrying value. A quantitative step one assessment involves determining the fair value of each reporting unit using market participant assumptions. Should an impairment exist, the Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

The measurement date of the Company’s annual goodwill impairment test is October 1. On October 1, 2023 and 2022, the Company performed qualitative assessments on the reporting unit and, based on this assessment, no events have occurred to indicate that it is more likely than not that the fair value of the reporting unit is less than its carry amount. The Company did not record a goodwill impairment loss during the years ended December 31, 2023 and 2022, and as of December 31, 2023, there was no accumulated goodwill impairment loss.

For purposes of reviewing impairment and the recoverability of goodwill, the Company must make various assumptions regarding estimated future cash flows and other factors in determining the fair values, including market multiples, discount rates, etc.

(h) Impairment of long-lived assets

Finite-lived intangible assets are amortized over their respective useful lives and, along with other long-lived assets, are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with ASC 360-10-15, “Impairment or Disposal of Long-Lived Assets.” In evaluating long-lived assets for recoverability, including finite-lived intangibles and property and equipment, the Company uses its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with ASC 360-10-15. To the extent that estimated future undiscounted cash inflows attributable to the asset, less estimated future undiscounted cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan of disposal, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell.

Asset recoverability is an area involving management judgment, requiring assessment as to whether the carrying value of assets can be supported by the undiscounted future cash flows. In calculating the future cash flows, certain assumptions are required to be made in respect of highly uncertain matters such as revenue growth rates, gross margin percentages and terminal growth rates.

The Company did not record an impairment loss of long-lived assets during the years ended December 31, 2023 and 2022.

(i) Fair value of financial instruments

ASC 820, “Fair Value Measurements and Disclosures,” establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

These tiers include:

•

Level 1 – defined as observable inputs such as quoted prices in active markets;

•

Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

•

Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The fair value of the Company’s cash and cash equivalents, receivables, and payables approximate their carrying amount because of the short-term nature of these instruments. The fair value of the noncurrent portion of unbilled accounts receivable included in other noncurrent assets approximates its carrying amount.

(j) Revenue recognition

The Company recognized revenue in accordance with ASC 606, “Revenue from Contracts with Customers” (“Topic 606”). Under this standard, revenue is recognized when control of goods or services is transferred to the Company’s customers, in an amount that reﬂects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company’s performance obligation is to provide on demand information and identity intelligence solutions to its customers by leveraging its proprietary technology and applying machine learning and advanced analytics to its massive data repository. The pricing for the customer contracts is based on usage, a monthly fee, or a combination of both.

Revenue is generally recognized on (a) a transactional basis determined by the customers’ usage, (b) a monthly fee, or (c) a combination of both. Revenue pursuant to transactions determined by the customers’ usage is recognized when the transaction is complete, and either party may terminate the transactional agreement at any time. Revenue pursuant to contracts containing a monthly fee is considered to be a single performance obligation consisting of a series of distinct services, and is recognized ratably over the contract period, which is generally 12 months, and the contract shall automatically renew for additional, successive 12-month terms unless written notice of intent not to renew is provided by one party to the other at least 30 days or 60 days prior to the expiration of the then current term. Variable fees are allocated to each distinct month in the series for which they are earned. The Company’s revenue is recorded net of applicable sales taxes billed to customers.

Available within Topic 606, the Company has applied the portfolio approach practical expedient in accounting for customer revenue as one collective group, rather than individual contracts. Based on the Company’s historical knowledge of the contracts contained in this portfolio and the similar nature and characteristics of the customers, the Company has concluded the financial statement effects are not materially different than if accounting for revenue on a contract by contract basis.

Revenue is recognized over a period of time. The Company’s customers simultaneously receive and consume the benefits provided by the Company’s performance as and when provided. Furthermore, the Company has elected the “right to invoice” practical expedient, available within Topic 606, as its measure of progress, since it has a right to payment from a customer in an amount that corresponds directly with the value of its performance completed-to-date. In some arrangements, a right to consideration for the Company's performance under the customer contract may occur before invoicing to the customer. The Company's revenue arrangements do not contain significant financing components.

For the years ended December 31, 2023 and 2022, 79% and 75% of total revenue was attributable to customers with pricing contracts, respectively, versus 21% and 25% attributable to transactional customers, respectively. Pricing contracts are generally annual contracts or longer, with auto renewal.

If a customer pays consideration before the Company transfers services to the customer, those amounts are classiﬁed as deferred revenue. As of December 31, 2023 and 2022, the balance of deferred revenue was $690 and $670, respectively, all of which is expected to be realized in the next 12 months. In relation to the deferred revenue balance as of December 31, 2022, $670 was recognized into revenue during the year ended December 31, 2023.

As of December 31, 2023, $15,821 of revenue is expected to be recognized in the future for performance obligations that are unsatisfied or partially unsatisfied, related to pricing contracts that have a term of more than 12 months, of which $8,662 of revenue will be recognized in 2024, $4,610 in 2025, $1,710 in 2026, and $839 in 2027. The actual timing of recognition may vary due to factors outside of the Company’s control. The Company excludes variable consideration related entirely to wholly unsatisfied performance obligations and contracts and recognizes such variable consideration based upon the right to invoice the customer.

Sales commissions are incurred and recorded on an ongoing basis over the term of the customer relationship. These costs are recorded in sales and marketing expenses.

In addition, the Company elected the practical expedient to not disclose the value of unsatisﬁed performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed.

(k) Cost of revenue (exclusive of depreciation and amortization)

The Company’s cost of revenue primarily includes data acquisition costs and other cost of revenue. Data acquisition costs consist primarily of the costs to acquire data either on a transactional basis or through flat-fee data licensing agreements, including unlimited usage agreements. Data acquisition costs are recognized based on a straight-line amortization method. Other cost of revenue includes expenses related to third-party infrastructure fees.

(l) Advertising and promotion costs

Advertising and promotion costs are charged to operations as incurred. Advertising and promotion costs, included in sales and marketing expenses amounted to $541 and $261 for the years ended December 31, 2023 and 2022, respectively.

(m) Share-based compensation

The Company accounts for share-based compensation to employees in accordance with ASC 718, “Compensation—Stock Compensation.” Under ASC 718, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and, for those awards subject only to service conditions, the Company recognizes the costs on a straight-line basis over the requisite service period for the entire award the employee is required to provide service in exchange for the award, which generally is the vesting period. For awards with performance and service conditions, we begin recording share-based compensation when achieving the performance criteria is probable and we recognize the costs using the accelerated attribution method. The Company accounts for forfeitures as they occur.

The Company has issued share-based awards with performance-based vesting criteria. Achievement of the milestones must be probable before the Company begins recording share-based compensation expense. When the performance-based vesting criteria is considered probable, the Company begins to recognize compensation expense at that time. In the period that achievement of the performance-based criteria is deemed probable, US GAAP requires the immediate recognition of all previously unrecognized compensation since the original grant date. As a result, compensation expense recorded in the period that achievement is deemed probable could include a substantial amount of previously unrecorded compensation expense related to the prior periods. For any share-based awards where performance-based vesting criteria is no longer considered probable, previously recognized compensation cost would be reversed. As of December 31, 2023, the Company has achieved the performance-based criteria for all share-based awards with performance-based vesting criteria, except for the Criteria Four and Criteria Five awards, as defined in Note 10.

(n) Income taxes

The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” which requires the use of the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in income in the period that the change in tax rates or laws is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2022, the Company had a full valuation allowance of $8,033. During the year ended December 31, 2023, the Company released the valuation allowance previously recorded on its deferred tax assets. The Company concluded that, due to its established historical cumulative positive income before income taxes plus permanent differences for the recent years, projections of future taxable income, and the reversal of taxable temporary differences, the realization of the deferred tax assets as of December 31, 2023 is more likely than not.

ASC 740 clarifies the accounting for uncertain tax positions. This interpretation requires that an entity recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company’s accounting policy is to accrue interest and penalties related to uncertain tax positions, if and when required, as interest expense and a component of other expenses, respectively, in the consolidated statements of operations.

(o) Earnings per share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the periods. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and is calculated using the treasury stock method for stock options and unvested shares. Common equivalent shares are excluded from the calculation in the loss periods as their effects would be anti-dilutive.

(p) Contingencies

In the ordinary course of business, the Company is subject to loss contingencies that cover a wide range of matters. An estimated loss from a loss contingency such as a legal proceeding or claim is accrued if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In determining whether a loss should be accrued, the Company evaluates, among other factors, the degree of probability and the ability to make a reasonable estimate of the amount of loss.

(q) Significant concentrations and risks

Concentration of credit risk

Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents, and accounts receivable. As of December 31, 2023 and 2022, all of the Company’s cash and cash equivalents were deposited in financial institutions located in the United States, which management believes are of high credit quality. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The risk with respect to accounts receivable is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances.

Concentration of customers

For the years ended December 31, 2023 and 2022, no individual customer accounted for more than 10% of the total revenue.

One individual customer accounted for 11% of the Company’s accounts receivable, net, as of December 31, 2023, and one individual customer accounted for 11% of the Company’s accounts receivable, net, as of December 31, 2022.

Concentration of suppliers

The Company’s products and services depend extensively upon continued access to and receipt of data from external sources, including data received from the major credit bureaus, including the Company’s largest data supplier. The Company’s other data suppliers include strategic partners, as well as various government and public records databases. The Company’s largest data supplier, with whom the Company has expanded its relationship while securing what it believes to be favorable business terms over the years, accounted for 48% and 49% of the Company’s total data acquisition costs for the years ended December 31, 2023 and 2022, respectively. The amended and renewed term of the agreement with this supplier ends June 30, 2026. The Company may elect to extend the term for an additional twelve months upon written notice to this supplier at least 30 days prior to the end of the amended and renewed term. During the term of the agreement, either party has the right to terminate the agreement: (i) in the event of the other party’s failure to cure a material breach, and (ii) in the event of the other party’s insolvency. In addition, this supplier may terminate this agreement by providing not less than 12 months’ advance written notice to the Company and the Company may terminate this agreement by providing not less than 24 months’ advance written notice to this supplier. As of December 31, 2023, the remaining minimum purchase commitments through the end of the amended and renewed term is $13.4 million. If the Company is unable to maintain its relationship with its largest data supplier, its ability to provide products and services could be negatively impacted, as it would need to secure comparable data on similar terms, which would require significant time, expense, and resources, and may in the short-term adversely affect its reputation, business, financial condition and results of operations and, if it is unable to establish a similar relationship with other data suppliers over time, could have a long-term material impact on its business and financial condition.

As of December 31, 2023 and 2022, among data suppliers, one data supplier accounted for 27% and 40% of the Company’s total accounts payable, respectively.

(r) Recently issued accounting standards

In December 2023, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standard Updates (“ASU”) No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09)," which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning after December 31, 2024. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company is currently evaluating the guidance to determine its impact on our consolidated financial statements and related disclosures.

Share-based Compensation - Schedule of Grants of RSUs with both Time- and Performance-based Conditions (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

2 years

Amortization of share-based compensation

$ 5,386

$ 5,505

Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

4 years

Performance Based Restricted Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Shares granted in accordance with 2018 Plan

2,442,000

Amortization of share-based compensation of RSUs with both time- and performance-based conditions

$ 5

$ 775

Performance Based Restricted Stock Units | Criteria One

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Grant dates

^[1]

9/5/2018 - 1/16/2019

Shares granted in accordance with 2018 Plan

^[1]

1,577,500

Weighted average grant-date fair value

^[1]

$ 7.66

Amortization of share-based compensation

^[1]

$ 0

Performance Based Restricted Stock Units | Criteria One | Minimum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[1]

3 years

Performance Based Restricted Stock Units | Criteria One | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[1]

4 years

Performance Based Restricted Stock Units | Criteria Two

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Grant dates

^[2]

8/28/2019 - 9/8/2020

Shares granted in accordance with 2018 Plan

^[2]

277,500

Weighted average grant-date fair value

^[2]

$ 12.27

Amortization of share-based compensation

^[2]

$ 5

278

Performance Based Restricted Stock Units | Criteria Two | Minimum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[2]

3 years

Performance Based Restricted Stock Units | Criteria Two | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[2]

4 years

Performance Based Restricted Stock Units | Criteria Three

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Grant dates

^[3]

8/28/2019 - 11/20/2020

Shares granted in accordance with 2018 Plan

^[3]

455,000

Weighted average grant-date fair value

^[3]

$ 15.44

Vesting period

^[3]

3 years

Amortization of share-based compensation

^[3]

$ 0

491

Performance Based Restricted Stock Units | Criteria Four

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Grant dates

^[4]

7/30/2021

Shares granted in accordance with 2018 Plan

^[4]

120,000

Weighted average grant-date fair value

^[4]

$ 15.13

Vesting period

^[4]

5 years

Amortization of share-based compensation

^[4]

$ 0

Performance Based Restricted Stock Units | Criteria Five

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Grant dates

^[3]

9/12/2023

Shares granted in accordance with 2018 Plan

^[3]

12,000

Weighted average grant-date fair value

^[3]

$ 20.39

Vesting period

^[3]

3 months 18 days

[1]	Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. As of June 30, 2019, the Company determined that the Criteria One was met. As of December 31, 2022, all shares underlying such awards have vested and been issued in accordance with their time-based vesting requirement.
[2]	Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. The Company determined that Criteria Two was met as of March 31, 2021. As of December 31, 2023, all shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement.
[3]	Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the respective performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. As of the respective grant dates, the Company determined that it was probable that the Criteria Three would be met and therefore, began to record the related amortization expense on the grant dates. The Company determined that the performance criteria were met as of March 31, 2022. As of December 31, 2023, all shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement.
[4]	On July 30, 2021, the Company granted 120,000 RSUs, subject to performance-based requirements, to one non-executive employee, which was subsequently modified on November 7, 2022, with a fair value of $15.13 per share as of the modification date. Such RSU grants shall not vest unless and until the Company has achieved certain revenue for a portion of its business prior to the achievement date deadline for each performance milestone. As of December 31, 2023, the Company determined that a total of 24,000 RSUs have forfeited as related performance milestones were not met, unless there is a change in control on or prior to June 30, 2026. No amortization of share-based compensation expense has been recognized for the remaining RSUs, because, as of December 31, 2023, the Company determined that it is not probable that any performance criteria will be met in the future. The remaining 96,000 RSUs, which were subsequently forfeited as a result of the termination of employment of the non-executive employee on February 2, 2024, were included in "Unvested as of December 31, 2023" with a fair value of $15.13 per share. (5) On September 12, 2023, the Company granted 12,000 RSUs, subject to performance-based requirements, to one non-executive employee, with a grant date fair value of $20.93 per share. Such RSU grants shall not vest unless and until the Company has achieved certain revenue for a portion of its business for the period from July 1, 2023 to December 31, 2023. No amortization of share-based compensation expense has been recognized for these RSUs, because, as of December 31, 2023, the Company determined that such performance criteria were not met. The 12,000 RSUs were included in "Forfeited" during the year ended December 31, 2023.

Summary of Significant Accounting Policies - Additional Information (Details 1) $ in Thousands	Dec. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated revenue expected to be recognized in the future	$ 15,821
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated revenue expected to be recognized in the future	$ 8,662
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated revenue expected to be recognized in the future	$ 4,610
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated revenue expected to be recognized in the future	$ 1,710
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated revenue expected to be recognized in the future	$ 839
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months

Earnings Per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earnings per share

3. Earnings per share

For the years ended December 31, 2023 and 2022, the basic and diluted earnings per share was as follows:


	Year Ended December 31,
(In thousands, except share data)	2023		2022
Numerator:
Net income	$	13,529	$	616
Denominator:
Weighted average shares outstanding:
Basic		13,974,125		13,759,296
Diluted(1)		14,134,021		14,107,144
Earnings per share:
Basic	$	0.97	$	0.04
Diluted	$	0.96	$	0.04

(1)

For the years ended December 31, 2023 and 2022, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

Property and Equipment, Net

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

5. Property and equipment, net

Property and equipment, net consists of the following:


(In thousands)	December 31, 2023			December 31, 2022
Computer and network equipment	$	1,127		$	1,082
Furniture, fixtures and office equipment		787			776
Leasehold improvements		53			53
Total cost		1,967			1,911
Less: Accumulated depreciation		(1,375	)		(1,202	)
Property and equipment, net	$	592		$	709

Depreciation of property and equipment of $233 and $235 was recorded for the years ended December 31, 2023 and 2022, respectively.

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


(In thousands)	December 31, 2023		December 31, 2022
Accrued payroll and related expenses	$	1,685	$	1,600
Accrued data acquisition costs		131		116
Sales tax payable		50		38
Income tax payable		16		-
Miscellaneous expenses payable		107		91
Total	$	1,989	$	1,845

Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details)	Dec. 31, 2023
Computer and Network Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated life of property and equipment	5 years
Computer and Network Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated life of property and equipment	7 years
Furniture, Fixtures and Office Equipment
Property, Plant and Equipment [Line Items]
Estimated life of property and equipment	5 years
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Estimated life of property and equipment	7 years

Accrued Expenses and Other Current Liabilities - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued payroll and related expenses	$ 1,685	$ 1,600
Accrued data acquisition costs	131	116
Sales tax payable	50	38
Income tax payable	16	0
Miscellaneous expenses payable	107	91
Total	$ 1,989	$ 1,845

Related Party Transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions

11. Related party transactions

On November 15, 2023, the Company purchased 49,600 shares of its common stock from Nantahala Capital Management, LLC, a greater than 5% stockholder, at a price of $20.00 per share, under the Stock Repurchase Program.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Intangible Assets, Net - Schedule of Estimated Amortization Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Intangible Liability Disclosure [Abstract]
2024	$ 9,452
2025	8,285
2026	6,833
2027	5,217
2028	2,774
2029 and thereafter	1,842
Intangible Assets, Net	$ 34,403	$ 31,647

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Data cost incurred	$ 9,531	$ 9,171
Total capital commitment under certain data licensing agreements	$ 19,829

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 32,032	$ 31,810
Accounts receivable, net of allowance for doubtful accounts of $159 and $60 as of December 31, 2023 and 2022, respectively	7,135	5,535
Prepaid expenses and other current assets	1,113	771
Total current assets	40,280	38,116
Property and equipment, net	592	709
Intangible assets, net	34,403	31,647
Goodwill	5,227	5,227
Right-of-use assets	2,457	1,114
Deferred tax assets	9,514	0
Other noncurrent assets	517	601
Total assets	92,990	77,414
Current liabilities:
Accounts payable	1,631	2,229
Accrued expenses and other current liabilities	1,989	1,845
Current portion of operating lease liabilities	569	692
Deferred revenue	690	670
Total current liabilities	4,879	5,436
Noncurrent operating lease liabilities	1,999	598
Deferred tax liabilities	0	287
Total liabilities	6,878	6,321
Shareholders' equity:
Preferred stock - $0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of December 31, 2023 and 2022	0	0
Common stock - $0.001 par value, 200,000,000 shares authorized, 13,980,274 and 13,956,404 shares issued, and 13,970,846 and 13,956,404 shares outstanding, as of December 31, 2023 and 2022	14	14
reasury stock, at cost, 9,428 and 0 shares as of December 31, 2023 and 2022	(188)	0
Additional paid-in capital	94,159	92,481
Accumulated deficit	(7,873)	(21,402)
Total shareholders' equity	86,112	71,093
Total liabilities and shareholders' equity	$ 92,990	$ 77,414

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

12. Leases

On January 1, 2019, the Company adopted Leases (Topic 842) using the modified retrospective method applied to all leases existing at the date of initial application. The Company elected the practical expedients to not reassess whether any existing contracts are or contain leases, not reassess the lease classification for any existing leases, and not reassess initial direct costs for any existing leases, upon the adoption of Leases (Topic 842).

The Company leases its corporate headquarters of 21,020 rentable square feet in accordance with a non-cancellable 89-month operating lease agreement as amended and effective in January 2017, with an option to extend for an additional 60 months. On September 20, 2023, the Company entered into an amendment to its corporate headquarters lease agreement to exercise the extension option for an additional 60 months through June 30, 2029 (the "Amended Lease"), with an option to further extend for an additional 60 months. The Company also leases an additional office space of 6,003 rentable square feet in accordance with a non-cancellable 90-month operating lease agreement entered into in April 2017, with an option to extend for an additional 60 months. The extension option is not included in the determination of the lease term as it is not reasonably certain to be exercised.

For the years ended December 31, 2023 and 2022, a summary of the Company’s lease information is shown below:


	Year Ended December 31,
(In thousands)	2023			2022
Lease cost:
Operating lease costs	$	699		$	672
Other information:
Cash paid for operating leases	$	765		$	743
Right-of-use assets obtained in exchange for operating lease liabilities(1)	$	1,919		$	-
Weighted average discount rate for operating leases(2)		10	%		-

(1)

The Amended Lease resulted in an addition of $1,919 to right-of-use assets and operating lease liabilities, as of September 20, 2023 (the "Remeasurement Date").

(2)

As of December 31, 2023 and 2022, the weighted average remaining operating lease term was 4.9 years and 1.9 years, respectively.

As of December 31, 2023, scheduled future maturities and present value of the operating lease liabilities are as follows:


(In thousands)
Year	December 31, 2023
2024		790
2025		580
2026		519
2027		535
2028		551
2029 and thereafter		279
Total maturities	$	3,254
Present value included in condensed consolidated balance sheet:
Current portion of operating lease liabilities	$	569
Noncurrent operating lease liabilities		1,999
Total operating lease liabilities	$	2,568
Difference between the maturities and the present value of operating lease liabilities	$	686

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2023

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets Other than Goodwill

Intangible assets other than goodwill consist of the following:


		December 31, 2023							December 31, 2022
(In thousands)	Amortization period	Gross amount		Accumulated amortization			Net		Gross amount		Accumulated amortization			Net
Software developed for internal use	5-10 years	$	63,545	$	(29,142	)	$	34,403	$	52,678	$	(21,031	)	$	31,647

Schedule of Estimated Amortization Expenses

As of December 31, 2023, estimated amortization expenses related to the Company’s intangible assets for 2024 through 2029 and thereafter are as follows:


(In thousands)
Year	December 31, 2023
2024		9,452
2025		8,285
2026		6,833
2027		5,217
2028		2,774
2029 and thereafter		1,842
Total	$	34,403

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$ 13,529

$ 616

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

8,352

6,675

Share-based compensation expense

5,386

5,505

Write-off of long-lived assets

177

Provision for bad debts

1,088

174

Noncash lease expenses

576

547

Deferred income tax expense

(9,801)

Changes in assets and liabilities:

Accounts receivable

(2,688)

(1,973)

Prepaid expenses and other current assets

(342)

(172)

Other noncurrent assets

(464)

Accounts payable

(598)

624

Accrued expenses and other current liabilities

100

1,450

Deferred revenue

(171)

Operating lease liabilities

(641)

(618)

Net cash provided by operating activities

15,071

12,459

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment

(122)

(373)

Capitalized costs included in intangible assets

(9,024)

(8,456)

Net cash used in investing activities

(9,146)

(8,829)

CASH FLOWS FROM FINANCING ACTIVITIES:

(1,992)

(5,200)

Repurchases of common stock

(3,711)

(878)

Net cash (used in) provided by financing activities

(5,703)

(6,078)

Net (decrease) increase in cash and cash equivalents

222

(2,448)

Cash and cash equivalents at beginning of period

31,810

34,258

Cash and cash equivalents at end of period

32,032

31,810

SUPPLEMENTAL DISCLOSURE INFORMATION

Cash paid for interest

Cash paid for income taxes

Share-based compensation capitalized in intangible assets

1,851

1,621

Retirement of treasury stock

5,559

6,078

Right-of-use assets obtained in exchange for operating lease liabilities

1,919

^[1]

Operating lease liabilities arising from obtaining right-of-use assets

$ 1,919

$ 0

[1]	The Amended Lease resulted in an addition of $1,919 to right-of-use assets and operating lease liabilities, as of September 20, 2023 (the "Remeasurement Date").

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Revenue

$ 60,204

$ 53,318

Costs and expenses:

Sales and marketing expenses

13,833

10,834

General and administrative expenses

22,446

23,237

Depreciation and amortization

8,352

6,675

Total costs and expenses

57,700

52,957

Income from operations

2,504

361

Interest income, net

1,334

351

Income tax (benefit) expense

3,838

712

Income tax expense

(9,691)

Net income

$ 13,529

$ 616

Earnings per share:

Basic

$ 0.97

$ 0.04

Diluted

$ 0.96

$ 0.04

Weighted average shares outstanding:

Basic

13,974,125

13,759,296

Diluted

^[1]

14,134,021

14,107,144

Service [Member]

Costs and expenses:

Cost of revenue (exclusive of depreciation and amortization)

$ 13,069

$ 12,211

[1]	For the years ended December 31, 2023 and 2022, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Earnings Per Share [Abstract]

Net income

$ 13,529

$ 616

Weighted average shares outstanding:

Basic

13,974,125

13,759,296

Diluted

^[1]

14,134,021

14,107,144

Earnings per share:

Basic

$ 0.97

$ 0.04

Diluted

$ 0.96

$ 0.04

[1]	For the years ended December 31, 2023 and 2022, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482635/260-10-55-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-7

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482662/260-10-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-10

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Estimated Useful Lives of Property and Equipment

The estimated useful lives of property and equipment are as follows:


Computer and network equipment			5-7 years
Furniture, fixtures and office equipment			5 years
Leasehold improvements			7 years

Accounts Receivable, Net

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Accounts Receivable, Net

4. Accounts receivable, net

Accounts receivable, net consists of the following:


(In thousands)	December 31, 2023			December 31, 2022
Accounts receivable	$	7,294		$	5,595
Less: Allowance for doubtful accounts		(159	)		(60	)
Total accounts receivable, net	$	7,135		$	5,535

The movement of allowance for doubtful accounts is shown below:


	Year Ended December 31,
(In thousands)	2023			2022
Beginning balance	$	60		$	28
Charges to expenses		1,088			174
Write-offs		(989	)		(142	)
Ending balance	$	159		$	60

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

13. Commitments and contingencies

(a) Capital commitment

The Company incurred data costs of $9,531 and $9,171 for the years ended December 31, 2023 and 2022, respectively, under certain data licensing agreements. As of December 31, 2023, future material capital commitments under certain data licensing agreements were $19,829, shown as follows:


(In thousands)
Year	December 31, 2023
2024		8,177
2025		7,702
2026		3,950
Total	$	19,829

(b) Employment agreements

The Company has employment agreements with certain executives, mainly including its Chief Executive Officer, President, Chief Financial Officer and Chief Information Officer, which provide for compensation and certain other benefits and for severance payments under certain circumstances.

The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and it discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements to not be misleading. To estimate whether a loss contingency should be accrued by a charge to income, the Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of the loss. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated.

The Company may be involved in litigation from time to time in the ordinary course of business. The Company does not believe that the ultimate resolution of any such matters will have a material adverse effect on its business, financial condition, results of operations, or cash flows. However, the results of such matters cannot be predicted with certainty and the Company cannot assure you that the ultimate resolution of any legal or administrative proceeding or dispute will not have a material adverse effect on its business, financial condition, results of operations, and cash flows.

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net consists of the following:


(In thousands)	December 31, 2023			December 31, 2022
Computer and network equipment	$	1,127		$	1,082
Furniture, fixtures and office equipment		787			776
Leasehold improvements		53			53
Total cost		1,967			1,911
Less: Accumulated depreciation		(1,375	)		(1,202	)
Property and equipment, net	$	592		$	709

Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$ 8,786	$ 10,802
Research and development tax credits	3,165	0
Share-based compensation	941	759
Accounts receivable	41	16
Operating lease liabilities	661	342
Deferred revenue and others	177	184
Deferred tax assets, gross, Total	13,771	12,103
Valuation allowance	0	(8,033)
Deferred tax assets, net of valuation allowance	13,771	4,070
Deferred tax liabilities:
Intangible assets	3,475	3,889
Right-of-use assets	633	295
Property and equipment	149	173
Deferred tax liabilities, gross, Total	4,257	4,357
Net deferred tax assets (liabilities)	$ 9,514	$ (287)

Share-based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Share-based Compensation

10. Share-based compensation

On March 22, 2018, the board of directors of the Company and Cogint, Inc. (“cogint”) (now known as Fluent, Inc.), in its capacity as sole stockholder of the Company prior to the Company’s spin-off from cogint on March 26, 2018 (the “Spin-off”), approved the Red Violet, Inc. 2018 Stock Incentive Plan (the “2018 Plan”), which became effective immediately prior to the Spin-off. A total of 3,000,000 shares of common stock were authorized to be issued under the 2018 Plan. On June 3, 2020, the Company’s stockholders approved an amendment to the 2018 Plan to increase the number of shares of common stock authorized for issuance under the 2018 Plan from 3,000,000 shares to 4,500,000 shares, and on May 25, 2022, the Company's stockholders approved an amendment to the 2018 Plan to increase the number of shares of common stock authorized for issuance under the 2018 Plan from 4,500,000 shares to 6,500,000 shares.

The primary purpose of the 2018 Plan, as amended, is to attract, retain, reward and motivate certain individuals by providing them with an opportunity to acquire or increase a proprietary interest in the Company and to incentivize them to expend maximum effort for the growth and success of the Company, so as to strengthen the mutuality of the interests between such individuals and the stockholders of the Company.

As of December 31, 2023, there were 1,997,455 shares of common stock available for future issuance under the 2018 Plan, as amended.

To date, all stock incentives issued under the 2018 Plan have been in the form of RSUs. RSUs granted under the 2018 Plan vest and settle upon the satisfaction of a time-based condition or with both time- and performance-based conditions. The time-based condition for these awards is generally satisfied over three or four years with annual vesting. Details of unvested RSUs activity during the years ended December 31, 2023 and 2022 were as follows:


	Number of units			Weighted average grant-date fair value
Unvested as of December 31, 2021		1,306,953		$	18.85
Granted(1)		561,100		$	18.29
Vested and delivered		(517,864	)	$	15.86
Withheld as treasury stock(2)		(252,346	)	$	16.71
Vested not delivered(3)		(8,716	)	$	22.81
Forfeited		(44,995	)	$	26.30
Unvested as of December 31, 2022		1,044,132		$	20.64
Granted(1)		399,900		$	20.39
Vested and delivered		(210,182	)	$	21.48
Withheld as treasury stock(2)		(99,234	)	$	21.56
Vested not delivered(3)		(8,900	)	$	22.12
Forfeited		(107,998	)	$	20.79
Unvested as of December 31, 2023		1,017,718		$	20.10

(1)

For the year ended December 31, 2022, the Company granted an aggregate of 561,100 RSUs to certain employees and members of the Company's board of directors at grant date fair values ranging from $16.00 to $28.75 per share, with a vesting period ranging from two to four years. For the year ended December 31, 2023, the Company granted an aggregate of 399,900 RSUs to certain employees and members of the Company's board of directors at grant date fair values ranging from $16.17 to $20.92 per share, with a vesting period ranging from 4 months to four years.

(2)

Withheld as treasury stock represents shares withheld to pay statutory taxes upon the vesting of RSUs. Refer to Note 9 for details.

(3)

Vested not delivered represents RSUs that have been vested but the delivery of the common stock underlying such RSUs were deferred.

There were certain grants of RSUs with both time- and performance-based conditions. Details of such grants of RSUs were as follows:


				Weighted average			Amortization of share-based compensation
RSU grants with		Number		grant-date			Year Ended December 31,
performance criteria	Grant dates	of units		fair value		Vesting period	2023			2022
Criteria One(1)	9/5/2018 - 1/16/2019		1,577,500	$	7.66	3-4 years	$	-		$	6
Criteria Two(2)	8/28/2019 - 9/8/2020		277,500	$	12.27	3-4 years		(5	)		278
Criteria Three(3)	8/28/2019 - 11/20/2020		455,000	$	15.44	3 years		-			491
Criteria Four(4)	7/30/2021		120,000	$	15.13	5 years		-			-
Criteria Five(5)	9/12/2023		12,000	$	20.39	0.3 years		-			-
			2,442,000				$	(5	)	$	775

(1)

Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. As of June 30, 2019, the Company determined that the Criteria One was met. As of December 31, 2022, all shares underlying such awards have vested and been issued in accordance with their time-based vesting requirement.

(2)

Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. The Company determined that Criteria Two was met as of March 31, 2021. As of December 31, 2023, all shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement.

(3)

Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the respective performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. As of the respective grant dates, the Company determined that it was probable that the Criteria Three would be met and therefore, began to record the related amortization expense on the grant dates. The Company determined that the performance criteria were met as of March 31, 2022. As of December 31, 2023, all shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement.

(4)

On July 30, 2021, the Company granted 120,000 RSUs, subject to performance-based requirements, to one non-executive employee, which was subsequently modified on November 7, 2022, with a fair value of $15.13 per share as of the modification date. Such RSU grants shall not vest unless and until the Company has achieved certain revenue for a portion of its business prior to the achievement date deadline for each performance milestone. As of December 31, 2023, the Company determined that a total of 24,000 RSUs have forfeited as related performance milestones were not met, unless there is a change in control on or prior to June 30, 2026. No amortization of share-based compensation expense has been recognized for the remaining RSUs, because, as of December 31, 2023, the Company determined that it is not probable that any performance criteria will be met in the future. The remaining 96,000 RSUs, which were subsequently forfeited as a result of the termination of employment of the non-executive employee on February 2, 2024, were included in "Unvested as of December 31, 2023" with a fair value of $15.13 per share.

(5)

On September 12, 2023, the Company granted 12,000 RSUs, subject to performance-based requirements, to one non-executive employee, with a grant date fair value of $20.93 per share. Such RSU grants shall not vest unless and until the Company has achieved certain revenue for a portion of its business for the period from July 1, 2023 to December 31, 2023. No amortization of share-based compensation expense has been recognized for these RSUs, because, as of December 31, 2023, the Company determined that such performance criteria were not met. The 12,000 RSUs were included in "Forfeited" during the year ended December 31, 2023.

As of December 31, 2023, unrecognized share-based compensation expense associated with the granted RSUs amounted to $16,551, which is expected to be recognized over a weighted average period of 2.4 years.

Share-based compensation was allocated to the following accounts in the consolidated financial statements for the years ended December 31, 2023 and 2022:


	Year Ended December 31,
(In thousands)	2023		2022
Sales and marketing expenses	$	462	$	290
General and administrative expenses		4,924		5,215
Share-based compensation expense		5,386		5,505
Capitalized in intangible assets		1,851		1,621
Total	$	7,237	$	7,126

Leases - Summary of Company's Lease Information (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2018

Lease cost:

Operating lease costs

$ 699

$ 672

Other information:

Cash paid for operating leases

765

743

Right-of-use assets obtained in exchange for operating lease liabilities

$ 1,919

^[1]

$ 0

Weighted average discount rate for operating leases

10.00%

^[2]

0.00%

8.00%

[1]

The Amended Lease resulted in an addition of $1,919 to right-of-use assets and operating lease liabilities, as of September 20, 2023 (the "Remeasurement Date").

[2]

Accounts Receivable, Net - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Accounts receivable	$ 7,294	$ 5,595
Less: Allowance for doubtful accounts	(159)	(60)	$ (28)
Total accounts receivable, net	$ 7,135	$ 5,535

Related Party Transactions - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Nov. 15, 2023

Dec. 31, 2023

Dec. 31, 2022

Share-based compensation expense

$ 5,386

$ 5,505

Common stock shares

13,980,274

13,956,404

Common stock per shares

$ 0.001

Restricted Stock Units (RSUs)

Shares granted in accordance with 2018 Plan

^[1]

399,900

561,100

Nantahala Capital Management LLC [Member] | Stock Repurchase Programs [Member]

Common stock shares

49,600

Percentage of common stock

5.00%

Common stock per shares

$ 20

[1]

Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Summary of Accounts Receivable, Net

Accounts receivable, net consists of the following:


(In thousands)	December 31, 2023			December 31, 2022
Accounts receivable	$	7,294		$	5,595
Less: Allowance for doubtful accounts		(159	)		(60	)
Total accounts receivable, net	$	7,135		$	5,535

Summary of Movement of Allowance for Doubtful Accounts

The movement of allowance for doubtful accounts is shown below:


	Year Ended December 31,
(In thousands)	2023			2022
Beginning balance	$	60		$	28
Charges to expenses		1,088			174
Write-offs		(989	)		(142	)
Ending balance	$	159		$	60

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 159	$ 60
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	13,980,274	13,956,404
Common stock, shares outstanding	13,970,846	13,956,404
Treasury stock shares	9,428	0

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2023	Mar. 04, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Trading Symbol	RDVT
Entity Registrant Name	RED VIOLET, INC.
Entity Central Index Key	0001720116
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Document Annual Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		13,964,028
Entity Public Float			$ 187.6
Title of 12(b) Security	Common Stock, $0.001 par value per share
Security Exchange Name	NASDAQ
Entity File Number	001-38407
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-2408531
Entity Address, Address Line One	2650 North Military Trail
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Boca Raton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33431
City Area Code	561
Local Phone Number	757-4000
Documents Incorporated by Reference [Text Block]	Portions of the registrant’s Proxy Statement relating to its 2024 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2023 are incorporated herein by reference in Part III of this Annual Report on Form 10-K.
Auditor Name	GRANT THORNTON LLP
Auditor Location	Fort Lauderdale, Florida
Auditor Firm ID	248

Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 1,967	$ 1,911
Less: Accumulated depreciation	(1,375)	(1,202)
Property and equipment, net	592	709
Computer and Network Equipment
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	1,127	1,082
Furniture, Fixtures and Office Equipment
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	787	776
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 53	$ 53

Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

7. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:


(In thousands)	December 31, 2023		December 31, 2022
Accrued payroll and related expenses	$	1,685	$	1,600
Accrued data acquisition costs		131		116
Sales tax payable		50		38
Income tax payable		16		-
Miscellaneous expenses payable		107		91
Total	$	1,989	$	1,845

Share-based Compensation - Schedule of Grants of RSUs with both Time- and Performance-based Conditions (Parenthetical) (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Sep. 12, 2023

Jul. 30, 2021

Dec. 31, 2023

Dec. 31, 2022

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

2 years

Amortization of share-based compensation

$ 5,386

$ 5,505

Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

4 years

Employees and Directors | Minimum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

4 months

Employees and Directors | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

4 years

Performance Based Restricted Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Granted, Number of units

2,442,000

Performance Based Restricted Stock Units | Non Executive Employee

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Granted, Number of units

12,000

Grant date fair value

$ 20.93

Forfeited, Number of units

12,000

Performance Based Restricted Stock Units | Criteria One

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Granted, Number of units

^[1]

1,577,500

Grant date fair value

^[1]

$ 7.66

Amortization of share-based compensation

^[1]

$ 0

$ 6

Performance Based Restricted Stock Units | Criteria One | Minimum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[1]

3 years

Performance Based Restricted Stock Units | Criteria One | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[1]

4 years

Performance Based Restricted Stock Units | Criteria Two

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Granted, Number of units

^[2]

277,500

Grant date fair value

^[2]

$ 12.27

Amortization of share-based compensation

^[2]

$ 5

278

Performance Based Restricted Stock Units | Criteria Two | Minimum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[2]

3 years

Performance Based Restricted Stock Units | Criteria Two | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[2]

4 years

Performance Based Restricted Stock Units | Criteria Three

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[3]

3 years

Granted, Number of units

^[3]

455,000

Grant date fair value

^[3]

$ 15.44

Amortization of share-based compensation

^[3]

$ 0

491

Performance Based Restricted Stock Units | Criteria Four

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[4]

5 years

Granted, Number of units

^[4]

120,000

Grant date fair value

^[4]

$ 15.13

Amortization of share-based compensation

^[4]

$ 0

Performance Based Restricted Stock Units | Criteria Four | Non Executive Employee

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Granted, Number of units

120,000

96,000

Grant date fair value

$ 15.13

Performance Based Restricted Stock Units | Criteria Five

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

^[3]

3 months 18 days

Granted, Number of units

^[3]

12,000

Grant date fair value

^[3]

$ 20.39

2018 Stock Incentive Plan | Performance Based Restricted Stock Units | Criteria Two | Employees and Directors | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

4 years

2018 Stock Incentive Plan | Performance Based Restricted Stock Units | Criteria Three | Employees and Directors

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting period

3 years

[1]	Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. As of June 30, 2019, the Company determined that the Criteria One was met. As of December 31, 2022, all shares underlying such awards have vested and been issued in accordance with their time-based vesting requirement.
[2]	Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. The Company determined that Criteria Two was met as of March 31, 2021. As of December 31, 2023, all shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement.
[3]	Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the respective performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. As of the respective grant dates, the Company determined that it was probable that the Criteria Three would be met and therefore, began to record the related amortization expense on the grant dates. The Company determined that the performance criteria were met as of March 31, 2022. As of December 31, 2023, all shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement.
[4]	On July 30, 2021, the Company granted 120,000 RSUs, subject to performance-based requirements, to one non-executive employee, which was subsequently modified on November 7, 2022, with a fair value of $15.13 per share as of the modification date. Such RSU grants shall not vest unless and until the Company has achieved certain revenue for a portion of its business prior to the achievement date deadline for each performance milestone. As of December 31, 2023, the Company determined that a total of 24,000 RSUs have forfeited as related performance milestones were not met, unless there is a change in control on or prior to June 30, 2026. No amortization of share-based compensation expense has been recognized for the remaining RSUs, because, as of December 31, 2023, the Company determined that it is not probable that any performance criteria will be met in the future. The remaining 96,000 RSUs, which were subsequently forfeited as a result of the termination of employment of the non-executive employee on February 2, 2024, were included in "Unvested as of December 31, 2023" with a fair value of $15.13 per share. (5) On September 12, 2023, the Company granted 12,000 RSUs, subject to performance-based requirements, to one non-executive employee, with a grant date fair value of $20.93 per share. Such RSU grants shall not vest unless and until the Company has achieved certain revenue for a portion of its business for the period from July 1, 2023 to December 31, 2023. No amortization of share-based compensation expense has been recognized for these RSUs, because, as of December 31, 2023, the Company determined that such performance criteria were not met. The 12,000 RSUs were included in "Forfeited" during the year ended December 31, 2023.

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Unvested Restricted Stock Units

Details of unvested RSUs activity during the years ended December 31, 2023 and 2022 were as follows:


	Number of units			Weighted average grant-date fair value
Unvested as of December 31, 2021		1,306,953		$	18.85
Granted(1)		561,100		$	18.29
Vested and delivered		(517,864	)	$	15.86
Withheld as treasury stock(2)		(252,346	)	$	16.71
Vested not delivered(3)		(8,716	)	$	22.81
Forfeited		(44,995	)	$	26.30
Unvested as of December 31, 2022		1,044,132		$	20.64
Granted(1)		399,900		$	20.39
Vested and delivered		(210,182	)	$	21.48
Withheld as treasury stock(2)		(99,234	)	$	21.56
Vested not delivered(3)		(8,900	)	$	22.12
Forfeited		(107,998	)	$	20.79
Unvested as of December 31, 2023		1,017,718		$	20.10

(1)

(2)

Withheld as treasury stock represents shares withheld to pay statutory taxes upon the vesting of RSUs. Refer to Note 9 for details.

(3)

Vested not delivered represents RSUs that have been vested but the delivery of the common stock underlying such RSUs were deferred.

Schedule of Grants of RSUs with both Time- and Performance-based Conditions

Details of such grants of RSUs were as follows:


				Weighted average			Amortization of share-based compensation
RSU grants with		Number		grant-date			Year Ended December 31,
performance criteria	Grant dates	of units		fair value		Vesting period	2023			2022
Criteria One(1)	9/5/2018 - 1/16/2019		1,577,500	$	7.66	3-4 years	$	-		$	6
Criteria Two(2)	8/28/2019 - 9/8/2020		277,500	$	12.27	3-4 years		(5	)		278
Criteria Three(3)	8/28/2019 - 11/20/2020		455,000	$	15.44	3 years		-			491
Criteria Four(4)	7/30/2021		120,000	$	15.13	5 years		-			-
Criteria Five(5)	9/12/2023		12,000	$	20.39	0.3 years		-			-
			2,442,000				$	(5	)	$	775

(1)

(2)

Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three or four years. The Company determined that Criteria Two was met as of March 31, 2021. As of December 31, 2023, all shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement.

(3)

Such RSU grants shall not vest unless and until the Company has, for any fiscal quarter in which the RSUs are outstanding, achieved certain performance criteria in gross revenue and positive adjusted EBITDA. Provided the respective performance criteria are met, the RSUs will vest in accordance with the time-based requirements contained in the award agreement over three years. As of the respective grant dates, the Company determined that it was probable that the Criteria Three would be met and therefore, began to record the related amortization expense on the grant dates. The Company determined that the performance criteria were met as of March 31, 2022. As of December 31, 2023, all shares underlying such awards are expected to vest and be issued in accordance with their time-based vesting requirement.

(4)

(5)

Summary of Allocated Share-based Compensation

Share-based compensation was allocated to the following accounts in the consolidated financial statements for the years ended December 31, 2023 and 2022:


	Year Ended December 31,
(In thousands)	2023		2022
Sales and marketing expenses	$	462	$	290
General and administrative expenses		4,924		5,215
Share-based compensation expense		5,386		5,505
Capitalized in intangible assets		1,851		1,621
Total	$	7,237	$	7,126

Principal Activities and Organization

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principal Activities

1. Principal activities

Red Violet, Inc. (“red violet,” or the “Company”), a Delaware corporation, is a software and services company building proprietary technologies and applying analytical capabilities to deliver identity intelligence. The Company’s technology powers critical solutions, which empower organizations to operate with confidence. The Company’s solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. These solutions are used for purposes including risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. The Company’s AI/ML-driven identity intelligence platform, CORETM, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. The Company drives workflow efficiency and enables organizations to make better data-driven decisions.

Leveraging cloud-native proprietary technology and applying machine learning and advanced analytical capabilities, CORE provides essential solutions to public and private sector organizations through intuitive, easy-to-use analytical interfaces. With massive data assets consisting of public record, proprietary, and publicly-available data, the Company’s differentiated information and innovative platform and solutions deliver identity intelligence – entities, relationships, affiliations, interactions, and events. The Company’s solutions are used today to enable frictionless commerce, to ensure safety, and to reduce fraud and the concomitant expense borne by society.

The Company has only one operating segment, as defined by Accounting Standards Codification ("ASC") 280, “Segment Reporting.”

Intangible Assets, Net

12 Months Ended

Dec. 31, 2023

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets, Net

6. Intangible assets, net

Intangible assets other than goodwill consist of the following:


		December 31, 2023							December 31, 2022
(In thousands)	Amortization period	Gross amount		Accumulated amortization			Net		Gross amount		Accumulated amortization			Net
Software developed for internal use	5-10 years	$	63,545	$	(29,142	)	$	34,403	$	52,678	$	(21,031	)	$	31,647

The gross amount associated with software developed for internal use represents capitalized costs of internally-developed software, including eligible salaries and staff benefits, share-based compensation, travel expenses incurred by relevant employees, and other relevant costs.

Amortization expenses of $8,119 and $6,440 were included in depreciation and amortization expense for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, intangible assets of $5,287, included in the gross amounts of software developed for internal use, have not started amortization, as they are not ready for their intended use.

The Company capitalized costs of software developed for internal use of $10,875 and $10,077 during the years ended December 31, 2023 and 2022, respectively.

As of December 31, 2023, estimated amortization expenses related to the Company’s intangible assets for 2024 through 2029 and thereafter are as follows:


(In thousands)
Year	December 31, 2023
2024		9,452
2025		8,285
2026		6,833
2027		5,217
2028		2,774
2029 and thereafter		1,842
Total	$	34,403

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Benefit for Income Taxes

The Company is subject to federal and state income taxes in the United States. The income taxes on income before income taxes consisted of the following:


	Year Ended December 31,
(In thousands)	2023			2022
Current
Federal	$	16		$	-
State		94			7
		110			7
Deferred
Federal		(2,139	)		1,149
State		371			392
Valuation allowance		(8,033	)		(1,452	)
		(9,801	)		89
Income tax (benefit) expense	$	(9,691	)	$	96

Reconciliation of Effective Income Tax Benefit

The Company’s effective income tax (benefit) expense differed from the U.S. corporate statutory income tax rate for the years ended December 31, 2023 and 2022. A reconciliation is as follows:


	Year Ended December 31,
(In thousands)	2023					2022
Tax on income before income taxes	$	806		21	%	$	150		21	%
Effect of state taxes (net of federal income tax effect)		515		13	%		428		60	%
Research and development tax credits		(3,213	)	-84	%		-		0	%
Excess tax benefit from share-based compensation		135		4	%		(731	)	-103	%
Nondeductible executive compensation		300		8	%		1,789		251	%
Other permanent differences		(115	)	-4	%		(57	)	-8	%
State rate change		(86	)	-2	%		(31	)	-4	%
Changes in valuation allowance		(8,033	)	-209	%		(1,452	)	-204	%
Income tax (benefit) expense	$	(9,691	)	-253	%	$	96		13	%

Schedule of Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities consist of the following:


(In thousands)	December 31, 2023		December 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$	8,786	$	10,802
Research and development tax credits		3,165		-
Share-based compensation		941		759
Accounts receivable		41		16
Operating lease liabilities		661		342
Deferred revenue and others		177		184
		13,771		12,103
Valuation allowance		-		(8,033	)
		13,771		4,070
Deferred tax liabilities:
Intangible assets		3,475		3,889
Right-of-use assets		633		295
Property and equipment		149		173
		4,257		4,357
Net deferred tax assets (liabilities)	$	9,514	$	(287	)

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Taxes [Line Items]
Operating loss carryforward, expiration year	2039
Research and development tax credits	$ 3,165	$ 0
Operating loss carryforwards valuation allowance		8,033
(Decrease) increase in valuation allowance	$ (8,033)	(1,452)
Percentage of tax benefits likelihood of being realized upon settlement of tax authority	greater than 50%
Unrecognized tax benefits	$ 0	0
Domestic Tax Authority
Income Taxes [Line Items]
Net operating loss carryforwards	36,486
State and Local Jurisdiction
Income Taxes [Line Items]
Net operating loss carryforwards		$ 24,021
Net operating loss carryforwards, carried forward indefinitely	$ 7,108
Operating loss carryforward, expiration year	2029

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Summary of Company's Lease Information

For the years ended December 31, 2023 and 2022, a summary of the Company’s lease information is shown below:


	Year Ended December 31,
(In thousands)	2023			2022
Lease cost:
Operating lease costs	$	699		$	672
Other information:
Cash paid for operating leases	$	765		$	743
Right-of-use assets obtained in exchange for operating lease liabilities(1)	$	1,919		$	-
Weighted average discount rate for operating leases(2)		10	%		-

(1)

The Amended Lease resulted in an addition of $1,919 to right-of-use assets and operating lease liabilities, as of September 20, 2023 (the "Remeasurement Date").

(2)

Scheduled Future Maturities and Present Value of Operating Lease Liabilities

As of December 31, 2023, scheduled future maturities and present value of the operating lease liabilities are as follows:


(In thousands)
Year	December 31, 2023
2024		790
2025		580
2026		519
2027		535
2028		551
2029 and thereafter		279
Total maturities	$	3,254
Present value included in condensed consolidated balance sheet:
Current portion of operating lease liabilities	$	569
Noncurrent operating lease liabilities		1,999
Total operating lease liabilities	$	2,568
Difference between the maturities and the present value of operating lease liabilities	$	686

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Preparation and Liquidity

(a) Basis of preparation and liquidity

The accompanying consolidated financial statements have been prepared by red violet in accordance with accounting principles generally accepted in the United States (“US GAAP”).

Principles of consolidation

Use of Estimates

(b) Use of estimates

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use.

Accounts Receivable

(d) Accounts receivable

Property and Equipment

(e) Property and equipment


Computer and network equipment			5-7 years
Furniture, fixtures and office equipment			5 years
Leasehold improvements			7 years

When items of property and equipment are retired or otherwise disposed of, loss/income is charged or credited for the difference between the net book value and proceeds received thereon.

Intangible Assets Other Than Goodwill

(f) Intangible assets other than goodwill

Goodwill

(g) Goodwill

Impairment of Long-lived Assets

(h) Impairment of long-lived assets

The Company did not record an impairment loss of long-lived assets during the years ended December 31, 2023 and 2022.

Fair Value of Financial Instruments

(i) Fair value of financial instruments

These tiers include:

•

Level 1 – defined as observable inputs such as quoted prices in active markets;

•

Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

•

Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Revenue Recognition

(j) Revenue recognition

Sales commissions are incurred and recorded on an ongoing basis over the term of the customer relationship. These costs are recorded in sales and marketing expenses.

Cost of Revenue (Exclusive of Depreciation and Amortization)

(k) Cost of revenue (exclusive of depreciation and amortization)

Advertising and Promotion Costs

(l) Advertising and promotion costs

Share-based Compensation

(m) Share-based compensation

Income Taxes

(n) Income taxes

Earnings Per Share

(o) Earnings per share

Contingencies

(p) Contingencies

Significant Concentrations and Risks

(q) Significant concentrations and risks

Concentration of credit risk

Concentration of customers

For the years ended December 31, 2023 and 2022, no individual customer accounted for more than 10% of the total revenue.

Concentration of suppliers

As of December 31, 2023 and 2022, among data suppliers, one data supplier accounted for 27% and 40% of the Company’s total accounts payable, respectively.

Recently Issued Accounting Standards

(r) Recently issued accounting standards

Common Stock and Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 19, 2023	May 02, 2022	Dec. 31, 2021
Equity [Line Items]
Common stock, shares authorized	200,000,000	200,000,000			200,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	13,980,274	13,956,404
Treasury Stock, issued	9,428	0
Retirement of treasury stock	$ 5,559	$ 6,078
Increase in treasury stock resulting from shares withheld to cover statutory taxes	$ 1,992	5,200
Retirement of treasury stock, Shares	99,234
Treasury Stock, Value	$ 188	$ 0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Stock Repurchase Program, Authorized Amount			$ 5,000	$ 5,000
Treasury Stock, Common, Shares	9,428	0
Stock Repurchase Program [Member]
Equity [Line Items]
Retirement of treasury stock, Shares	186,312	50,000
Related treasury stock cost	$ 3,567
Treasury Stock, Value	188
Treasury stock cost	$ 3,755	$ 878
Treasury Stock, Common, Shares	195,740	50,000
Common Stock
Equity [Line Items]
Vesting of restricted stock units, Shares	309,416	770,210
Treasury Stock
Equity [Line Items]
Increase in treasury stock resulting from shares withheld to cover statutory taxes, Shares	99,234	252,346
Increase in treasury stock resulting from shares withheld to cover statutory taxes	$ 1,992	$ 5,200
Retirement of treasury stock, Shares		252,346

Share-based Compensation - Schedule of Unvested RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Unvested, Number of units, Beginning balance

1,044,132

1,306,953

Granted, Number of units

^[1]

399,900

561,100

Vested and delivered, Number of units

(210,182)

(517,864)

Withheld as treasury stock, Number of units

^[2]

(99,234)

(252,346)

Vested not delivered, Number of units

^[3]

(8,900)

(8,716)

Forfeited, Number of units

(107,998)

(44,995)

Unvested, Number of units, Ending balance

1,017,718

1,044,132

Unvested, Weighted average grant-date fair value, Beginning balance

$ 20.64

$ 18.85

Grant date fair value

^[1]

20.39

18.29

Vested and delivered, Weighted average grant-date fair value

21.48

15.86

Withheld as treasury stock, Weighted average grant-date fair value

^[2]

21.56

16.71

Vested not delivered, Weighted average grant-date fair value

^[3]

22.12

22.81

Forfeited, Weighted average grant-date fair value

20.79

26.3

Unvested, Weighted average grant-date fair value, Ending balance

$ 20.1

$ 20.64

[1]	For the year ended December 31, 2022, the Company granted an aggregate of 561,100 RSUs to certain employees and members of the Company's board of directors at grant date fair values ranging from $16.00 to $28.75 per share, with a vesting period ranging from two to four years. For the year ended December 31, 2023, the Company granted an aggregate of 399,900 RSUs to certain employees and members of the Company's board of directors at grant date fair values ranging from $16.17 to $20.92 per share, with a vesting period ranging from 4 months to four years.
[2]	Withheld as treasury stock represents shares withheld to pay statutory taxes upon the vesting of RSUs. Refer to Note 9 for details.
[3]	Vested not delivered represents RSUs that have been vested but the delivery of the common stock underlying such RSUs were deferred.

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Capital Payments under Certain Data Licensing Agreements


(In thousands)
Year	December 31, 2023
2024		8,177
2025		7,702
2026		3,950
Total	$	19,829

Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Amortization expenses	$ 8,119	$ 6,440
Software Developed for Internal Use
Finite Lived Intangible Assets [Line Items]
Intangible assets that have not started amortization	5,287
Capitalized costs of internally-developed software	$ 10,875	$ 10,077

Principal Activities and Organization - Additional Information (Details)	12 Months Ended
	Dec. 31, 2023 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operating segments	1

Share-based Compensation - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	May 22, 2022	Jun. 03, 2020	Mar. 22, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 0	$ 8,033
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized share-based compensation costs in respect of granted RSUs	$ 16,551
Unrecognized share-based compensation remaining weighted average period	2 years 4 months 24 days
2018 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized					3,000,000
Common stock available for future issuance	1,997,455
2018 Stock Incentive Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized			4,500,000	3,000,000
2018 Stock Incentive Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock authorized			6,500,000	4,500,000

Intangible Assets, Net - Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Intangible Assets, Net	$ 34,403	$ 31,647
Minimum
Finite Lived Intangible Assets [Line Items]
Amortization Period	5 years
Maximum
Finite Lived Intangible Assets [Line Items]
Amortization Period	10 years
Software Developed for Internal Use
Finite Lived Intangible Assets [Line Items]
Intangible Assets, Gross Amount	$ 63,545	52,678
Intangible Assets, Accumulated Amortization	29,142	21,031
Intangible Assets, Net	$ 34,403	$ 31,647
Software Developed for Internal Use \| Minimum
Finite Lived Intangible Assets [Line Items]
Amortization Period	5 years
Software Developed for Internal Use \| Maximum
Finite Lived Intangible Assets [Line Items]
Amortization Period	10 years