RDVT 8-K

Red Violet, Inc. (RDVT)

8-K 2021-08-13 For: 2021-08-11

Added on April 12, 2026

Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	RDVT	The NASDAQ Stock Market LLC


		Red Violet, Inc.

Date: August 13, 2021	By:	/s/ Derek Dubner
		Derek Dubner
		Chief Executive Officer (Principal Executive Officer)

	June 30, 2021			December 31, 2020
ASSETS:
Current assets:
Cash and cash equivalents	$	13,915		$	12,957
Accounts receivable, net of allowance for doubtful accounts of $11 and $38 as of June 30, 2021 and December 31, 2020, respectively		3,386			3,201
Prepaid expenses and other current assets		1,265			581
Total current assets		18,566			16,739
Property and equipment, net		576			558
Intangible assets, net		27,810			27,170
Goodwill		5,227			5,227
Right-of-use assets		1,916			2,161
Other noncurrent assets		137			139
Total assets	$	54,232		$	51,994
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable	$	1,418		$	2,075
Accrued expenses and other current liabilities		761			1,458
Current portion of operating lease liabilities		584			552
Current portion of long-term loan		-			449
Deferred revenue		427			504
Total current liabilities		3,190			5,038
Noncurrent operating lease liabilities		1,608			1,908
Long-term loan		-			1,703
Total liabilities		4,798			8,649
Shareholders' equity:
Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of June 30, 2021 and December 31, 2020		-			-
Common stock—$0.001 par value, 200,000,000 shares authorized, 12,248,794 and 12,167,327 shares issued and outstanding, as of June 30, 2021 and December 31, 2020		13			13
Additional paid-in capital		70,911			66,005
Accumulated deficit		(21,490	)		(22,673	)
Total shareholders' equity		49,434			43,345
Total liabilities and shareholders' equity	$	54,232		$	51,994

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Revenue	$	10,879		$	7,056		$	21,096		$	16,356
Costs and expenses⁽¹⁾:
Cost of revenue (exclusive of depreciation and amortization)		2,720			2,587			5,481			5,879
Sales and marketing expenses		2,349			1,746			4,570			3,922
General and administrative expenses		4,890			4,263			9,440			8,697
Depreciation and amortization		1,330			992			2,588			1,902
Total costs and expenses		11,289			9,588			22,079			20,400
Loss from operations		(410	)		(2,532	)		(983	)		(4,044	)
Interest (expense) income, net		(4	)		-			(9	)		31
Gain on extinguishment of debt		2,175			-			2,175			-
Income (loss) before income taxes		1,761			(2,532	)		1,183			(4,013	)
Income taxes		-			-			-			-
Net income (loss)	$	1,761		$	(2,532	)	$	1,183		$	(4,013	)
Earnings (loss) per share:
Basic	$	0.14		$	(0.22	)	$	0.10		$	(0.35	)
Diluted	$	0.13		$	(0.22	)	$	0.09		$	(0.35	)
Weighted average number of shares outstanding:
Basic		12,269,412			11,617,342			12,238,475			11,600,278
Diluted		13,560,714			11,617,342			13,487,806			11,600,278


(1) Share-based compensation expense in each category:
Sales and marketing expenses	$	158		$	155		$	314		$	309
General and administrative expenses		2,007			2,187			3,897			4,254
Total	$	2,165		$	2,342		$	4,211		$	4,563

	Six Months Ended June 30,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	1,183		$	(4,013	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		2,588			1,902
Share-based compensation expense		4,211			4,563
Write-off of long-lived assets		24			104
Provision for bad debts		62			265
Noncash lease expenses		245			225
Interest expense		11			-
Gain on extinguishment of debt		(2,175	)		-
Changes in assets and liabilities:
Accounts receivable		(247	)		587
Prepaid expenses and other current assets		(684	)		(139	)
Other noncurrent assets		2			65
Accounts payable		(657	)		585
Accrued expenses and other current liabilities		(685	)		(927	)
Deferred revenue		(77	)		23
Operating lease liabilities		(268	)		(237	)
Net cash provided by operating activities		3,533			3,003
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(155	)		(61	)
Capitalized costs included in intangible assets		(2,420	)		(3,088	)
Net cash used in investing activities		(2,575	)		(3,149	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term loan		-			2,152
Net cash provided by financing activities		-			2,152
Net increase in cash and cash equivalents	$	958		$	2,006
Cash and cash equivalents at beginning of period		12,957			11,776
Cash and cash equivalents at end of period	$	13,915		$	13,782
SUPPLEMENTAL DISCLOSURE INFORMATION
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-
Share-based compensation capitalized in intangible assets	$	695		$	1,056

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2021			2020			2021			2020
Net income (loss)	$	1,761		$	(2,532	)	$	1,183		$	(4,013	)
Interest expense (income), net		4			-			9			(31	)
Depreciation and amortization		1,330			992			2,588			1,902
Share-based compensation expense		2,165			2,342			4,211			4,563
Gain on extinguishment of debt		(2,175	)		-			(2,175	)		-
Litigation costs		6			-			126			-
Write-off of long-lived assets and others		41			106			61			217
Adjusted EBITDA	$	3,132		$	908		$	6,003		$	2,638
Revenue	$	10,879		$	7,056		$	21,096		$	16,356

Net income (loss) margin		16	%		(36	%)		6	%		(25	%)
Adjusted EBITDA margin		29	%		13	%		28	%		16	%

	(Unaudited)
(Dollars in thousands)	Q3'19			Q4'19			Q1'20			Q2'20			Q3'20			Q4'20			Q1'21			Q2'21
Customer metrics
idiCORE - billable customers⁽¹⁾		4,781			5,064			5,326			5,375			5,758			5,726			5,902			6,141
FOREWARN - users⁽²⁾		23,853			30,577			36,506			40,857			44,927			48,377			58,831			67,578
Revenue metrics
Contractual revenue %⁽³⁾		66	%		66	%		69	%		79	%		68	%		77	%		80	%		81	%
Revenue attrition %⁽⁴⁾		6	%		6	%		8	%		11	%		10	%		11	%		7	%		6	%
Revenue from new customers⁽⁵⁾	$	1,406		$	1,018		$	1,417		$	916		$	726		$	877		$	967		$	929
Base revenue from existing customers⁽⁶⁾	$	5,578		$	6,690		$	6,629		$	5,047		$	5,797		$	6,678		$	7,351		$	8,354
Growth revenue from existing customers⁽⁷⁾	$	1,273		$	1,342		$	1,254		$	1,093		$	2,744		$	1,408		$	1,899		$	1,596
Platform financial metrics
Platform revenue⁽⁸⁾	$	7,086		$	7,651		$	8,109		$	6,856		$	8,968		$	8,603		$	9,813		$	10,588
Cost of revenue (exclusive of depreciation and amortization)	$	2,286		$	2,431		$	2,498		$	2,428		$	2,489		$	2,448		$	2,488		$	2,529
Adjusted gross margin		68	%		68	%		69	%		65	%		72	%		72	%		75	%		76	%
Services financial metrics
Services revenue⁽⁹⁾	$	1,171		$	1,399		$	1,191		$	200		$	299		$	360		$	404		$	291
Cost of revenue (exclusive of depreciation and amortization)	$	836		$	983		$	794		$	159		$	214		$	246		$	273		$	191
Adjusted gross margin		29	%		30	%		33	%		21	%		28	%		32	%		32	%		34	%
Other metrics
Employees - sales and marketing	48			51			51			53			52			53			56			57
Employees - support	8			7			8			8			9			9			9			9
Employees - infrastructure	13			11			13			12			12			14			15			16
Employees - engineering	25			23			26			27			27			32			31			33
Employees - administration	13			16			15			14			15			18			16			19