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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Synacor Inc | NASDAQ:SYNC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.19 | 2.20 | 2.20 | 0 | 01:00:00 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware
|
16-1542712
|
||||||||||
(State or other jurisdiction
of incorporation or organization) |
(I.R.S. Employer
Identification No.) |
40 La Riviere Drive, Suite 300 | 14202 | ||||||||||
Buffalo, | (Zip Code) | ||||||||||
New York | |||||||||||
(Address of principal executive offices) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 Par Value | SYNC | The Nasdaq Stock Market LLC | ||||||
(voting) | (The Nasdaq Global Market) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||||||||||
Emerging growth company | ☐ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Revenue | $ | 81,362 | $ | 121,845 | |||||||||||||
Costs and operating expenses: | |||||||||||||||||
Cost of revenue (1) | 42,236 | 61,990 | |||||||||||||||
Technology and development (1) (2) | 12,007 | 18,273 | |||||||||||||||
Sales and marketing (2) | 15,350 | 21,790 | |||||||||||||||
General and administrative (1) (2) | 14,356 | 17,734 | |||||||||||||||
Depreciation and amortization | 8,068 | 9,865 | |||||||||||||||
Total costs and operating expenses | 92,017 | 129,652 | |||||||||||||||
Loss from operations | (10,655) | (7,807) | |||||||||||||||
Other income (expense), net | 240 | (17) | |||||||||||||||
Interest expense | (189) | (268) | |||||||||||||||
Loss before income taxes | (10,604) | (8,092) | |||||||||||||||
Provision for income taxes | 957 | 929 | |||||||||||||||
Net loss | $ | (11,561) | $ | (9,021) |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Revenue | 100 | % | 100 | % | ||||||||||||||||
Cost of revenue (1) | 52 | 51 | ||||||||||||||||||
Technology and development (1) (2) | 15 | 15 | ||||||||||||||||||
Sales and marketing (2) | 19 | 18 | ||||||||||||||||||
General and administrative (1) (2) | 18 | 15 | ||||||||||||||||||
Depreciation and amortization | 10 | 8 | ||||||||||||||||||
Total costs and operating expenses | 114 | 107 | ||||||||||||||||||
Loss from operations | (14) | (6) | ||||||||||||||||||
Other expense, net | 1 | — | ||||||||||||||||||
Interest expense | — | — | ||||||||||||||||||
Loss before income taxes | (13) | (7) | ||||||||||||||||||
Provision for income taxes | 1 | 1 | ||||||||||||||||||
Net loss | (14) | % | (7) | % |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Technology and development | $ | 218 | $ | 338 | |||||||||||||
Sales and marketing | 407 | 513 | |||||||||||||||
General and administrative | 831 | 765 | |||||||||||||||
$ | 1,456 | $ | 1,616 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Cost of revenue | $ | 12 | $ | 234 | ||||||||||||||||
Technology and development | 533 | 370 | ||||||||||||||||||
Sales and marketing | 420 | 246 | ||||||||||||||||||
General and administrative | 518 | 109 | ||||||||||||||||||
Total restructuring expense | $ | 1,483 | $ | 959 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Revenue: | ||||||||||||||||||||
Software & Services | $ | 44,280 | $ | 44,485 | ||||||||||||||||
Portal & Advertising | 37,082 | 77,360 | ||||||||||||||||||
Total Revenue | $ | 81,362 | $ | 121,845 | ||||||||||||||||
Segment Adjusted EBITDA: | ||||||||||||||||||||
Software & Services | $ | 14,340 | $ | 12,531 | ||||||||||||||||
Portal & Advertising | 2,168 | 10,657 | ||||||||||||||||||
Corporate Unallocated Expense | (11,190) | (13,685) | ||||||||||||||||||
Total Segment Adjusted EBITDA | $ | 5,318 | $ | 9,503 | ||||||||||||||||
Segment Adjusted EBITDA Margin: | ||||||||||||||||||||
Software & Services | 32.4 | % | 28.2 | % | ||||||||||||||||
Portal & Advertising | 5.8 | % | 13.8 | % | ||||||||||||||||
Total Segment Adjusted EBITDA Margin | 6.5 | % | 7.8 | % |
Twelve Months Ended
December 31, |
||||||||||||||
2020 | 2019 | |||||||||||||
Reconciliation of Adjusted EBITDA: | ||||||||||||||
Net loss | $ | (11,561) | $ | (9,021) | ||||||||||
Provision for income taxes | 957 | 929 | ||||||||||||
Interest expense | 189 | 268 | ||||||||||||
Other income (expense), net | (240) | 17 | ||||||||||||
Depreciation and amortization | 10,294 | 11,251 | ||||||||||||
Long-lived asset impairment* | 806 | 1,751 | ||||||||||||
Stock-based compensation expense | 1,456 | 1,616 | ||||||||||||
Restructuring costs** | 1,483 | 959 | ||||||||||||
Certain legal and professional services fees*** | 1,934 | 1,733 | ||||||||||||
Adjusted EBITDA | $ | 5,318 | $ | 9,503 |
Notes: | |||||
* | "Long-lived asset impairment" includes impairment charges related to property, plant and equipment, capitalized software and leased assets. | ||||
** | "Restructuring costs" include severance expense, contract termination costs and other exit or disposal costs. | ||||
*** | "Certain legal and professional services fees" includes legal fees and other related expenses outside the ordinary course of business, as well as fees and expenses related to merger and acquisition activities. |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Statements of Cash Flows Data: | |||||||||||
Net cash provided by operating activities | $ | 1,038 | $ | 2,459 | |||||||
Net cash used in investing activities | $ | (3,053) | $ | (3,772) | |||||||
Net cash used in financing activities | $ | (3,159) | $ | (3,459) |
Payments Due by Period | |||||||||||||||||||||||||||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | Total | ||||||||||||||||||||||||||||||
Operating lease obligations | $ | 2,290 | $ | 1,134 | $ | 446 | $ | 38 | $ | — | $ | 3,908 | |||||||||||||||||||||||
Finance lease obligations | 1,070 | 765 | 328 | 29 | 2 | 2,194 | |||||||||||||||||||||||||||||
Total | $ | 3,360 | $ | 1,899 | $ | 774 | $ | 67 | $ | 2 | $ | 6,102 |
Name and
Principal Position |
Year |
Salary
($) |
Bonus
($) |
Stock
Awards ($) (1) |
Option
Awards ($) (1) |
Non-Equity
Incentive Plan Compensation ($) (2) |
All Other
Compensation ($) |
Total
($) |
|||||||||||||||||||||||||||
Himesh Bhise
President & Chief Executive Officer |
2020 | 467,228 | — | 273,000 | (3) | — | 226,810 | — | 967,038 | ||||||||||||||||||||||||||
2019 | 453,619 | — | 365,775 | (4) | — | 369,942 | — | 1,189,336 | |||||||||||||||||||||||||||
Timothy J. Heasley
Chief Financial Officer |
2020 | 313,136 | — | 154,999 | (5) | — | 106,531 | — | 574,666 | ||||||||||||||||||||||||||
2019 | 304,374 | — | 177,789 | (6) | 25,658 | (7) | 77,377 | — | 585,198 | ||||||||||||||||||||||||||
Steven M. Davi
Executive Vice President, Technology |
2020 | 354,747 | — | 124,001 | (8) | — | 120,545 | 1,354 | (10) | 600,647 | |||||||||||||||||||||||||
2019 | 344,414 | — | 143,992 | (9) | — | 140,552 | 2,800 | (10) | 631,758 |
Notes: | ||||||||
(1) |
Represents the aggregate grant date fair value of option awards and stock awards granted to the officer in the applicable fiscal year computed in accordance with FASB ASC Topic 718. See Note 11, Stock-Based Compensation, of the Notes to the Consolidated Financial Statements, for a discussion of the assumptions made by us in determining the grant date fair value of our equity awards.
|
|||||||
(2) |
Represents amounts paid pursuant to our annual cash incentive program in the fiscal year following the year in which services were provided.
|
|||||||
(3) |
Represents the sum of (i) $112,500, the aggregate grant date fair value of a restricted tock unit ("RSU") award granted on July 28, 2020 covering 93,361 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive following the grant date, (ii) $48,000, the aggregate grant date fair value of a RSU award granted on August 4, 2020 covering 40,000 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive following the grant date, and (iii) $112,500, the aggregate grant date fair value of a performance stock unit award granted on July 28, 2020 covering 93,361 shares of Synacor common stock, 25% of which vests each year following Synacor’s achievement of certain financial performance targets. With respect to the performance stock unit award, the grant date fair value is based on the probable outcome of the conditions as of such grant date. The maximum grant date fair value of such award, assuming the highest level of performance conditions will be achieved, is $168,750.
|
|||||||
(4) |
Represents the sum of (i) $140,776, the aggregate grant date fair value of a RSU award granted on February 24, 2019 covering 80,000 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive following the grant date, (ii) $112,499, the aggregate grant date fair value of a RSU award granted on August 9, 2019 covering 82,720 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive beginning August 1, 2019, and (iii) $112,499, the aggregate grant date fair value of a performance stock unit award granted on August 9, 2019 covering 82,720 shares of Synacor common stock, 25% of which vests each year following Synacor’s achievement of certain financial performance targets. With respect to the performance stock unit award, the grant date fair value is based on the probable outcome of the conditions as of such grant date. The maximum grant date fair value of such award, assuming the highest level of performance conditions will be achieved, is $168,749.
|
(5) |
Represents the sum of (i) $62,500, the aggregate grant date fair value of a RSU award granted on July 28, 2020 covering 51,867 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive following the grant date, (ii) $30,000, the aggregate grant date fair value of a RSU award granted on August 4, 2020 covering 25,000 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive following the grant date, and (iii) $62,500, the aggregate grant date fair value of a performance stock unit award granted on July 28, 2020 covering 51,867 shares of Synacor common stock, 25% of which vests each year following Synacor’s achievement of certain financial performance targets. With respect to the performance stock unit award, the grant date fair value is based on the probable outcome of the conditions as of such grant date. The maximum grant date fair value of such award, assuming the highest level of performance conditions will be achieved, is $93,750.
|
|||||||
(6) |
Represents the sum of (i) $52,791, the aggregate grant date fair value of a RSU award granted on February 24, 2019 covering 30,000 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive following the grant date, (ii) $62,499, the aggregate grant date fair value of a RSU award granted on August 9, 2019 covering 45,955 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive beginning August 1, 2019, and (iii) $62,499, the aggregate grant date fair value of a performance stock unit award granted on August 9, 2019 covering 45,955 shares of Synacor common stock, 25% of which vests each year following Synacor’s achievement of certain financial performance targets. With respect to the performance stock unit award, the grant date fair value is based on the probable outcome of the conditions as of such grant date. The maximum grant date fair value of such award, assuming the highest level of performance conditions will be achieved, is $93,748.
|
|||||||
(7) |
Represents the aggregate grant date fair value of an option to purchase 25,000 shares of Synacor common stock granted on February 24, 2019, vesting over four years of continuous service beginning May 22, 2018, with 25% vesting upon completion of 12 months of service and the remainder in 36 substantially equal monthly installments thereafter.
|
|||||||
(8) |
Represents the sum of (i) $50,000, the aggregate grant date fair value of a RSU award granted on July 28, 2020 covering 41,494 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive following the grant date, (ii) $24,000, the aggregate grant date fair value of a RSU award granted on August 4, 2020 covering 20,000 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive following the grant date, and (iii) $50,000, the aggregate grant date fair value of a performance stock unit award granted on July 28, 2020 covering 41,494 shares of Synacor common stock, 25% of which vests each year following Synacor’s achievement of certain financial performance targets. With respect to the performance stock unit award, the grant date fair value is based on the probable outcome of the conditions as of such grant date. The maximum grant date fair value of such award, assuming the highest level of performance conditions will be achieved, is $75,000.
|
|||||||
(9) |
Represents the sum of (i) $43,993, the aggregate grant date fair value of a RSU award granted on February 24, 2019 covering 25,000 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive following the grant date, (ii) $49,999, the aggregate grant date fair value of a RSU award granted on August 9, 2019 covering 36,764 shares of Synacor common stock, vesting semi-annually over three years of continuous service by the executive beginning August 1, 2019, and (iii) $49,999, the aggregate grant date fair value of a performance stock unit award granted on August 9, 2019 covering 36,764 shares of Synacor common stock, 25% of which vests each year following Synacor’s achievement of certain financial performance targets. With respect to the performance stock unit award, the grant date fair value is based on the probable outcome of the conditions as of such conditions will be achieved, is $74,999.
|
|||||||
(10) |
Represents our matching contribution of 25% of Mr. Davi’s contribution to his 401(k) plan account.
|
Performance Level | Performance | Vesting Percentage | ||||||
Maximum | maximum revenue/adjusted EBITDA | 150% | ||||||
Target | target revenue/adjusted EBITDA but < maximum revenue/adjusted EBITDA | 100% | ||||||
Threshold | threshold revenue/adjusted EBITDA but < target revenue/adjusted EBITDA | 50% | ||||||
Below Threshold | threshold revenue/adjusted EBITDA | —% |
Himesh Bhise | 8/4/2014 | 8/4/2014 | 2,001,338 | — | 2.38 | 8/4/2024 | — | — | — | — | |||||||||||||||||||||||||
Himesh Bhise | 2/12/2015 | 3/1/2015 | 10,100 | — | 2.13 | 2/12/2025 | — | — | — | — | |||||||||||||||||||||||||
Himesh Bhise | 2/12/2016 | 3/1/2016 | 6,900 | — | 1.62 | 2/12/2026 | — | — | — | — | |||||||||||||||||||||||||
Himesh Bhise | 2/16/2017 | 3/1/2017 | 210,937 | 13,063 | 3.15 | 2/16/2027 | — | — | — | — | |||||||||||||||||||||||||
Himesh Bhise | 2/16/2017 | 3/1/2017 | 6,656 | 444 | 3.15 | 2/16/2027 | — | — | — | — | |||||||||||||||||||||||||
Himesh Bhise | 3/1/2018 | 3/1/2018 | 4,400 | 2,000 | 2.00 | 3/1/2028 | — | — | — | — | |||||||||||||||||||||||||
Himesh Bhise | 2/24/2019 | 2/24/2019 | — | — | — | — | 40,016 | 54,422 | — | — | |||||||||||||||||||||||||
Himesh Bhise | 8/9/2019 | 7/1/2019 | — | — | — | — | 55,158 | 75,015 | — | — | |||||||||||||||||||||||||
Himesh Bhise | 8/9/2019 | n/a | — | — | — | — | — | — | 62,040 | 42,187 | |||||||||||||||||||||||||
Himesh Bhise | 7/28/2020 | 7/1/2020 | — | — | — | — | 93,361 | 126,971 | — | — | |||||||||||||||||||||||||
Himesh Bhise | 7/28/2020 | n/a | — | — | — | — | — | — | 93,362 | 63,486 | |||||||||||||||||||||||||
Himesh Bhise | 8/4/2020 | 8/4/2020 | — | — | — | — | 40,000 | 54,400 | — | — | |||||||||||||||||||||||||
Timothy J. Heasley | 8/13/2018 | 5/22/2018 | 113,020 | 61,980 | 2.25 | 8/12/2028 | — | — | — | — | |||||||||||||||||||||||||
Timothy J. Heasley | 2/24/2019 | 5/22/2018 | 16,145 | 8,855 | 1.76 | 2/24/2029 | — | — | — | — | |||||||||||||||||||||||||
Timothy J. Heasley | 2/24/2019 | 2/24/2019 | — | — | — | — | 15,006 | 20,408 | — | — | |||||||||||||||||||||||||
Timothy J. Heasley | 8/9/2019 | 7/1/2019 | — | — | — | — | 30,643 | 41,674 | — | — | |||||||||||||||||||||||||
Timothy J. Heasley | 8/9/2019 | n/a | — | — | — | — | — | — | 34,467 | 23,438 | |||||||||||||||||||||||||
Timothy J. Heasley | 7/28/2020 | 7/1/2020 | — | — | — | — | 51,867 | 70,539 | — | — | |||||||||||||||||||||||||
Timothy J. Heasley | 7/28/2020 | n/a | — | — | — | — | — | — | 51,867 | 35,270 | |||||||||||||||||||||||||
Timothy J. Heasley | 8/4/2020 | 8/4/2020 | — | — | — | — | 25,000 | 34,000 | — | — | |||||||||||||||||||||||||
Steven M. Davi | 12/18/2012 | 12/1/2012 | 100,000 | — | 2.38 | (8) | 12/18/2022 | — | — | — | — | ||||||||||||||||||||||||
Steven M. Davi | 2/12/2015 | 3/1/2015 | 50,000 | — | 2.13 | 2/12/2025 | — | — | — | — | |||||||||||||||||||||||||
Steven M. Davi | 2/12/2015 | 3/1/2015 | 7,600 | — | 2.13 | 2/12/2025 | — | — | — | — | |||||||||||||||||||||||||
Steven M. Davi | 10/28/2015 | 11/1/2015 | 25,000 | — | 1.37 | 10/28/2025 | — | — | — | — | |||||||||||||||||||||||||
Steven M. Davi | 2/12/2016 | 3/1/2016 | 5300 | 0 | 1.62 | 2/12/2026 | — | — | — | — | |||||||||||||||||||||||||
Steven M. Davi | 2/16/2017 | 3/1/2017 | 5062 | 338 | 3.15 | 2/16/2027 | — | — | — | — | |||||||||||||||||||||||||
Steven M. Davi | 3/1/2018 | 3/1/2018 | 3368 | 1532 | 2 | 3/1/2028 | — | — | — | — | |||||||||||||||||||||||||
Steven M. Davi | 4/26/2018 | 4/1/2018 | 22604 | 12396 | 1.75 | 4/26/2028 | — | — | — | — | |||||||||||||||||||||||||
Steven M. Davi | 2/24/2019 | 2/24/2019 | — | — | — | — | 12,505 | 17,007 | — | — | |||||||||||||||||||||||||
Steven M. Davi | 8/9/2019 | 7/1/2019 | — | — | — | — | 24,515 | 33,340 | — | — | |||||||||||||||||||||||||
Steven M. Davi | 8/9/2019 | n/a | — | — | — | — | — | — | 27,574 | 18,750 | |||||||||||||||||||||||||
Steven M. Davi | 7/28/2020 | 7/1/2020 | — | — | — | — | 41,494 | 56,432 | — | — | |||||||||||||||||||||||||
Steven M. Davi | 7/28/2020 | n/a | — | — | — | — | — | — | 41,494 | 28,216 | |||||||||||||||||||||||||
Steven M. Davi | 8/4/2020 | 8/4/2020 | — | — | — | — | 20,000 | 27,200 | — | — |
Notes: | ||||||||
(1) |
Options granted to Synacor’s named executive officers are generally immediately exercisable with respect to all of the option shares (whether vested or unvested), subject to Synacor’s repurchase right in the event that the executive’s service terminates before vesting in such shares. For information regarding the vesting acceleration provisions applicable to the options held by Synacor’s named executive officers, please see the section titled “Employment Agreements and Potential Payments upon Termination or Change of Control ” below.
|
|||||||
(2) |
For information regarding the vesting acceleration provisions applicable to the RSUs and PSUs held by Synacor’s named executive officers, please see the section titled “Employment Agreements and Potential Payments upon Termination or Change of Control ” below.
|
|||||||
(3) |
The options in this column are immediately exercisable for all shares. The shares underlying the option vest over 4 years of service after the Vesting Commencement Date, with 25% vesting upon completion of 12 months of service and in 36 equal monthly installments thereafter.
|
|||||||
(4) |
The time-based requirement of the RSUs will be satisfied in six equal semi-annual installments after the Vesting Commencement Date, subject to the executive’s continuous service through each such vesting date.
|
|||||||
(5) |
The market value of stock reported in this column is computed by multiplying the closing market price of Synacor common stock at the end of fiscal year 2020 ($1.36 per share) by the number of shares or units of stock.
|
|||||||
(6) |
The market value of equity incentive plan awards of stock reported in this column is computed by multiplying the closing market price of Synacor common stock at the end of fiscal year 2020 ($1.36 per share) by the amount of the equity incentive plan award, based on achieving threshold performance goals (50%).
|
|||||||
(7) |
The PSUs vest over a period of four years contingent upon Synacor’s achievement of certain financial performance targets. For additional detail, please see the section titled “Narrative Disclosure to Summary Compensation Table – Long-Term Incentive Compensation” above.
|
|||||||
(8) |
The option was granted with an exercise price of $5.82 per share. The option was amended to reset the exercise price to $2.38 per share pursuant to an option repricing program for non-executive officers approved by our Board of Directors in July 2014.
|
Name |
Fees Earned or
Paid in Cash ($) |
Stock Awards ($) (1) (2) | Option Awards ($) |
Total
($) |
||||||||||||||||||||||||||||
Elisabeth B. Donohue | — | 103,757 | (3) | — | 103,757 | |||||||||||||||||||||||||||
Marwan Fawaz | — | 103,508 | (4) | — | 103,508 | |||||||||||||||||||||||||||
Andrew Kau | — | 102,008 | (5) | — | 102,008 | |||||||||||||||||||||||||||
Michael J. Montgomery | — | 122,509 | (6) | — | 122,509 | |||||||||||||||||||||||||||
Kevin Rendino | — | 107,133 | (7) | — | 107,133 | |||||||||||||||||||||||||||
Gary L. Ginsberg | — | 13,125 | (8) | — | 13,125 | |||||||||||||||||||||||||||
Scott Murphy | — | 13,626 | (9) | — | 13,626 |
Notes: | ||||||||
(1) |
Represents the aggregate grant date fair value of option awards and stock awards granted to the officer in the applicable fiscal year computed in accordance with FASB ASC Topic 718. See Note 11, Stock-Based Compensation, of the Notes to the Consolidated Financial Statements, for a discussion of the assumptions made by us in determining the grant date fair value of our equity awards.
|
|||||||
(2) | As of December 31, 2020, the above-listed directors held RSUs covering shares of Synacor’s common stock: Elisabeth B. Donohue (49,690), Marwan Fawaz (52,646), Andrew Kau (51,561), Michael J. Montgomery (71,344), Kevin Rendino (55,064), Gary L. Ginsberg (30,162), and Scott Murphy (31,312). | |||||||
(3) |
Ms. Donohue was granted 10,796 RSUs on February 27, 2020 that vest on April 1, 2020; 8,248 RSUs on April 29, 2020 that vest on July 1, 2020; 14,152 RSUs on September 8, 2020 that vest on October 1, 2020; and 10,951 RSUs on October 27, 2020 that vested on January 1, 2021 in accordance with the non-employee director compensation program set forth above, for services to be performed in 2020. Ms. Donohue was granted 47,170 RSUs on September 8, 2020 that vest in six equal semi-annual installments beginning September 8, 2020 for continuous service through each such vesting date.
|
|||||||
(4) |
Mr. Fawaz was granted 12,160 RSUs on February 27, 2020 that vested on April 1, 2020; 9,290 RSUs on April 29, 2020 that vested on July 1, 2020; 12,619 RSUs on September 8, 2020 that vested on October 1, 2020; and 9,765 RSUs on October 27, 2020 that vested on January 1, 2021 in accordance with the non-employee director compensation program set forth above, for services to be performed in 2020. Mr. Fawaz was granted 47,170 RSUs on September 8, 2020 that vest in six equal semi-annual installments beginning September 8, 2020 for continuous service through each such vesting date.
|
|||||||
(5) |
Mr. Kau was granted 11,365 RSUs on February 27, 2020 that vested on April 1, 2020; 8,682 RSUs on April 29, 2020 that vested on July 1, 2020; 14,152 RSUs on September 8, 2020 that vested on October 1, 2020; and 9,856 RSUs on October 27, 2020 that vested on January 1, 2021 in accordance with the non-employee director compensation program set forth above, for services to be performed in 2020. Mr. Kau was granted 47,170 RSUs on September 8, 2020 that vest in six equal semi-annual installments beginning September 8, 2020 for continuous service through each such vesting date.
|
|||||||
(6) |
Mr. Montgomery was granted 16,479 RSUs on February 27, 2020 that vested on April 1, 2020; 12,589 RSUs on April 29, 2020 that vested on July 1, 2020; 17,100 RSUs on September 8, 2020 that vested on October 1, 2020; and 13,232 RSUs on October 27, 2020 that vested on January 1, 2021 in accordance with the non-employee director compensation program set forth above, for services to be performed in 2020. Mr. Montgomery was granted 47,170 RSUs on September 8, 2020 that vest in six equal semi-annual installments beginning September 8, 2020 for continuous service through each such vesting date.
|
|||||||
(7) |
Mr. Rendino was granted 12,387 RSUs on February 27, 2020 that vested on April 1, 2020; 10,072 RSUs on April 29, 2020 that vested on July 1, 2020; 13,680 RSUs on September 8, 2020 that vested on October 1, 2020; and 10,586 RSUs on October 27, 2020 that vested on January 1, 2021 in accordance with the non-employee director compensation program set forth above, for services to be performed in 2020. Mr. Rendino was granted 47,170 RSUs on September 8, 2020 that vest in six equal semi-annual installments beginning September 8, 2020 for continuous service through each such vesting date.
|
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(8) | Mr. Ginsberg was granted 11,932 RSUs on February 27, 2020 that vested on April 1 2020 in accordance with the non-employee director compensation program set forth above, for services to be performed as a director in 2020. Mr. Ginsberg resigned from the Board effective as of immediately prior to the commencement of the Company’s Annual Meeting of Stockholders on June 15, 2020. | |||||||
(9) | Mr. Murphy was granted 12,387 RSUs on February 27, 2020 that vested on April 1 2020 in accordance with the non-employee director compensation program set forth above, for services to be performed as a director in 2020. Mr. Murphy resigned from the Board effective as of immediately prior to the commencement of the Company’s Annual Meeting of Stockholders on June 15, 2020. |
Plan Category |
(a)
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights |
(b)
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (1) |
(c)
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) |
||||||||||||||||||||||||||
Equity compensation plans approved by security holders | 4,936,111 | (2) | $ | 2.43 | 7,228,911 | (3) | |||||||||||||||||||||||
Equity compensation plans not approved by security holders | 2,001,338 | $ | 2.38 | — | |||||||||||||||||||||||||
Total | 6,937,449 | $ | 2.42 | 7,228,911 | (3) |
Notes: | ||||||||
(1) |
The weighted average exercise price is calculated based solely on the outstanding stock options. It does not take into account the shares issuable upon vesting of outstanding RSUs and PSUs, which have no exercise price.
|
|||||||
(2) |
Represents 242,875 shares subject to options outstanding under the 2006 Stock Plan, 5,355,398 shares subject to awards outstanding under the Amended and Restated 2012 Equity Incentive Plan, and 308,875 shares subject to options outstanding under the Special Purpose Recruitment Plan.
|
|||||||
(3) |
Shares available for issuance under the 2012 Amended and Restated Equity Incentive Plan. No shares are available for issuance under the 2006 Stock Plan or the Special Purpose Recruitment Plan.
|
Beneficial Ownership | ||||||||||||||
Name of Beneficial Owner | Number | Percent | ||||||||||||
Directors and Named Executive Officers | ||||||||||||||
Himesh Bhise (1) | 2,418,889 | 5.7% | ||||||||||||
Steven M. Davi (2) | 281,843 | 0.7% | ||||||||||||
Elisabeth B. Donohue (3) | 173,499 | 0.4% | ||||||||||||
Marwan Fawaz (4) | 350,269 | 0.9% | ||||||||||||
Timothy J. Heasley (5) | 244,833 | 0.6% | ||||||||||||
Andrew Kau (6) | 4,134,413 | 10.3% | ||||||||||||
Michael J. Montgomery (7) | 392,434 | 1.0% | ||||||||||||
Kevin M. Rendino (8) | 3,069,484 | 7.7% | ||||||||||||
All current directors and executive officers as a group (8 persons) (9) | 11,065,664 | 27.3% | ||||||||||||
Other 5% Stockholders | ||||||||||||||
Entities associated with Walden International (10) | 3,884,965 | 9.7% | ||||||||||||
Entities associated with Beryl Capital (11) | 3,373,342 | 8.5% | ||||||||||||
Entities associated with Advantage Capital (12) | 2,180,971 | 5.5% | ||||||||||||
Entities associated with The Vanguard Group (13) | 2,066,576 | 5.2% | ||||||||||||
Entities associated with 180 Degree Capital Corp. (14) | 3,004,484 | 7.5% | ||||||||||||
Entities associated with Renaissance Technologies LLC (15) | 1,998,217 | 5.0% | ||||||||||||
Entities associated with BLR Partners LP (16) | 1,708,447 | 4.3% |
Notes: | ||||||||
(1) |
Represents 162,051 shares held or beneficially owned by Mr. Bhise and 2,256,838 shares issuable upon exercise of stock options issued to Mr. Bhise and exercisable within 60 days of March 26, 2021, 1,600 of which shares remained subject to vesting as of March 26, 2021.
|
|||||||
(2) |
Represents 48,643 shares held or beneficially owned by Mr. Davi and 233,200 shares issuable upon exercise of stock options issued to Mr. Davi and exercisable within 60 days of March 26, 2021, 11,434 of which shares remained subject to vesting as of March 26, 2021.
|
|||||||
(3) |
Represents 78,499 shares held or beneficially owned by Ms. Donohue, and 95,000 shares issuable upon exercise of stock options issued to Ms. Donohue and exercisable within 60 days of March 26, 2021, 24,688 of which shares remained subject to vesting as of March 26, 2021.
|
|||||||
(4) |
Represents 145,269 shares held or beneficially owned by Mr. Fawaz and 205,000 shares issuable upon exercise of stock options issued to Mr. Fawaz and exercisable within 60 days of March 26, 2021, 22,501 of which shares remained subject to vesting as of March 26, 2021.
|
|||||||
(5) |
Represents 44,833 shares held or beneficially owned by Mr. Heasley and 200,000 shares issuable upon exercise of stock options issued to Mr. Heasley and exercisable within 60 days of March 26, 2021, 62,501 of which shares remained subject to vesting as of March 26, 2021.
|
|||||||
(6) |
Includes 69,275 shares held or beneficially owned by Mr. Kau, and 190,000 shares issuable upon exercise of stock options issued to Mr. Kau and exercisable within 60 days March 26, 2021, 18,751 of which shares remained subject to vesting as of March 26, 2021. See footnote (10) regarding Mr. Kau’s relationship with Walden International. The address for Mr. Kau is c/o Walden International, One California Street, Suite 1750, San Francisco, California 94111.
|
|||||||
(7) |
Represents 187,434 shares held or beneficially owned by Mr. Montgomery and 205,000 shares issuable upon exercise of stock options issued to Mr. Montgomery and exercisable within 60 days of March 26, 2021, 22,501 of which shares remained subject to vesting as of March 26, 2021.
|
|||||||
(8) |
Includes 65,000 shares issuable upon exercise of stock options issued to Mr. Rendino and exercisable within 60 days of March 26, 2021, 34,480 of which shares remained subject to vesting as of March 26, 2021. See footnote (13) regarding Mr. Rendino’s relationship with 180 Degree Capital Corp. (“180 Degree”). Pursuant to an assignment and assumption agreement between Mr. Rendino and 180 Degree, Mr. Rendino has assigned all economic and beneficial interest in his common stock, RSUs (and the shares of common stock issuable upon settlement thereof) and options (and the shares of common stock issuable upon exercise thereof) to 180 Degree. The address for Mr. Rendino is c/o 180 Degree Capital Corp., 7 N. Willow Street, Suite 4B, Montclair, NJ 07042.
|
|||||||
(9) |
Includes 3,450,038 shares issuable upon exercise of stock options exercisable within 60 days of March 26, 2021, 198,456 of which shares remained subject to vesting as of March 26, 2021.
|
(10) |
Represents 70,846 shares held by Pacven Walden Ventures IV Associates Fund, L.P. (“Pacven IV Associates Fund”), 3,804,292 shares held by Pacven Walden Ventures IV, L.P. (“Pacven IV”) and 9,827 shares held by Lip-Bu Tan and Ysa Loo Trust dated 2/3/1992, of which Lip-Bu Tan is a trustee. The general partner of Pacven IV Associates Fund and Pacven IV is Pacven Walden Management II, L.P. (“Pacven Management II”). The general partner of Pacven Management II is Pacven Walden Management Co., Ltd. (“Pacven Walden Management”). Lip-Bu Tan is the sole director of Pacven Walden Management and he shares voting and investment power with respect to the shares held by Pacven IV and Pacven IV Associates Fund with the other members of the investment committee of Pacven Walden Management. Lip-Bu Tan and Andrew Kau (who is also a member of the Synacor Board of Directors) are the members of the investment committee of Pacven Walden Management. The address for entities associated with Walden International is One California Street, Suite 1750, San Francisco, CA 94111.
|
|||||||
(11) | Beryl Capital Management LLC reported on its Schedule 13G filed on March 25, 2021 that it has sole voting and dispositive power over 3,373,342 shares. The address for Beryl Capital Management LLC is 1611 S. Catalina Ave., Suite 309, Redondo Beach, CA 90277. | |||||||
(12) |
Represents 1,759,841 shares held by Advantage Capital New York Partners I, L.P. (“Advantage I”) and 421,130 shares held by Advantage Capital New York Partners II, L.P. (“Advantage II”). The sole general partner of Advantage I is Advantage Capital New York GP-I, LLC (“Advantage GP I”), and the sole general partner of Advantage II is Advantage Capital New York GP-II, LLC (“Advantage GP II”). Advantage GP I and Advantage GP II, in their respective capacities as general partner of Advantage I and Advantage II, exercise investment discretion and control of the shares beneficially owned by Advantage I and Advantage II. Steven T. Stull holds all of the voting interests of Advantage GP I and, therefore, may be deemed to have voting and investment power with respect to the shares held of record by Advantage I. Steven T. Stull and Maurice E. Doyle hold all of the ownership interests, including voting interests, of Advantage GP II and, therefore, may be deemed to have voting and investment power with respect to the shares held of record by Advantage II. The address for entities associated with Advantage Capital Partners is 909 Poydras Street, Suite 2230, New Orleans, LA 70112.
|
|||||||
(13) | The Vanguard Group (“Vanguard”) reported on its Schedule 13G amendment filed on February 10, 2021 that it has sole dispositive power over 2,051,376 shares, shared voting power over 8,200 shares and shared dispositive power over the 15,200 shares. The address for Vanguard is 100 Vanguard Blvd., Malvern, PA 19355. | |||||||
(14) | Represents 1,763,084 shares held by 180 Degree and 1,241,400 shares held by 180.2 SPV Series—a Series of 180 Degree Capital Management, LLC (“180.2 SPV Series”). 180 Degree is the investment manager and managing member of 10.2 SPV Series. Responsibility for all investment decisions has been delegated to two of its directors, Kevin M. Rendino and Daniel B. Wolfe, and therefore, Messrs. Rendino and Wolfe may be deemed to have voting and investment power with respect to the shares held by 180 Degree and 180.2 SPV Series. The address for entities associated with 180 Degree is 7 N. Willow Street, Suite 4B, Montclair, NJ 07042. | |||||||
(15) | Renaissance Technologies LLC reported on its Schedule 13G filed on February 10, 2021 that it has sole voting and dispositive power over 1,998,217 shares. The address for Renaissance Technologies LLC is 800 Third Avenue New York, New York 10022. | |||||||
(16) | As reported on a Schedule 13G amendment filed on February 16, 2021, represents 1,213,447 shares held by BLR Partners LP, a Texas limited partnership (“BLR Partners”), 30,519 shares benefically held by the Radoff Foundation and 464,481 shares beneficially held by Bradley L. Radoff. BLRPart, LP, a Texas limited partnership (“BLRPart GP”), serves as the general partner of BLR Partners. BLRGP Inc., a Texas S corporation (“BLRGP”), serves as the general partner of BLRPart GP. Fondren Management, LP, a Texas limited partnership (“Fondren Management”), serves as the investment manager of BLR Partners. FMLP Inc., a Texas S corporation (“FMLP”), serves as the general partner of Fondren Management. Mr. Radoff is the sole shareholder and sole director of each of BLRGP and FMLP. By virtue of these relationships, BLRPart GP, BLRGP, Fondren Management, FMLP and Mr. Radoff each reported sole voting and dispositive power over the shares owned directly by BLR Partners and may be deemed to beneficially own such shares. Mr. Radoff serves as a director of the Radoff Foundation and may be deemed to benefically own the shares owned directly by the Radoff Foundation. The address for BLR Partners is 1177 West Loop South, Suite 1625, Houston, TX 77027. |
Fiscal 2019 | ||||||||
Audit fees (1) | $ | 592 | ||||||
Audit-related fees (2) | 17 | |||||||
Tax fees | — | |||||||
All other fees | — | |||||||
Total fees | $ | 609 |
Notes: | ||||||||
(1) |
Audit fees consist of fees incurred for professional services rendered for the audit of our annual financial statements and review of the quarterly financial statements that are normally provided by Deloitte & Touche in connection with regulatory filings or engagements.
|
|||||||
(2) |
Audit-related fees relate to assurance and related services that are reasonably related to the audit or review of our financial statements.
|
Fiscal 2020 | ||||||||
(In thousands) | ||||||||
Audit fees (1) | $ | 297 | ||||||
Audit-related fees | — | |||||||
Tax fees | — | |||||||
All other fees (2) | 6 | |||||||
Total fees | $ | 303 |
Notes: | ||||||||
(1) |
Audit fees consist of fees incurred for professional services rendered for the audit of our annual financial statements and review of the quarterly financial statements that are normally provided by Grant Thornton in connection with regulatory filings or engagements.
|
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(2) | All other fees relate to assurance and related services associated with merger and acquisition activities. |
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SYNACOR, INC. | ||
/s/ HIMESH BHISE | ||
Himesh Bhise | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
Signature | Title | Date | ||||||||||||
/s/ HIMESH BHISE
|
President, Chief Executive Officer and Director (Principal Executive Officer) | March 31, 2021 | ||||||||||||
Himesh Bhise | ||||||||||||||
/s/ TIMOTHY HEASLEY | Chief Financial Officer (Principal Financial and Accounting Officer) | March 31, 2021 | ||||||||||||
Timothy J. Heasley | ||||||||||||||
/s/ ELISABETH B. DONOHUE | Director | March 31, 2021 | ||||||||||||
Elisabeth B. Donohue | ||||||||||||||
/s/ MARWAN FAWAZ | Director | March 31, 2021 | ||||||||||||
Marwan Fawaz | ||||||||||||||
/s/ ANDREW KAU | Director | March 31, 2021 | ||||||||||||
Andrew Kau | ||||||||||||||
/s/ MICHAEL J. MONTGOMERY | Director | March 31, 2021 | ||||||||||||
Michael J. Montgomery | ||||||||||||||
/s/ KEVIN RENDINO | Director | March 31, 2021 | ||||||||||||
Kevin Rendino |
Page | |||||
2020 | 2019 | |||||||||||||
ASSETS | ||||||||||||||
CURRENT ASSETS: | ||||||||||||||
Cash and cash equivalents | $ | 5,748 | $ | 10,966 | ||||||||||
Accounts receivable—net of allowance of $510 and $585
|
17,518 | 20,532 | ||||||||||||
Prepaid expenses and other current assets | 3,091 | 2,989 | ||||||||||||
Total current assets | 26,357 | 34,487 | ||||||||||||
PROPERTY AND EQUIPMENT, net | 10,815 | 14,948 | ||||||||||||
OPERATING LEASE RIGHT-OF-USE ASSETS, net | 3,146 | 4,765 | ||||||||||||
GOODWILL | 15,952 | 15,948 | ||||||||||||
INTANGIBLE ASSETS, net | 6,380 | 8,411 | ||||||||||||
OTHER ASSETS | 593 | 1,319 | ||||||||||||
TOTAL ASSETS | $ | 63,243 | $ | 79,878 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||
Accounts payable | $ | 9,910 | $ | 12,583 | ||||||||||
Accrued expenses and other current liabilities | 4,788 | 5,878 | ||||||||||||
Current portion of deferred revenue | 6,617 | 6,509 | ||||||||||||
Current portion of long-term debt and finance leases | 992 | 2,529 | ||||||||||||
Current portion of operating lease liabilities | 2,224 | 2,165 | ||||||||||||
Total current liabilities | 24,531 | 29,664 | ||||||||||||
LONG-TERM PORTION OF DEBT AND FINANCE LEASES | 1,082 | 729 | ||||||||||||
LONG-TERM PORTION OF OPERATING LEASE LIABILITIES | 1,449 | 2,846 | ||||||||||||
DEFERRED REVENUE | 1,823 | 2,366 | ||||||||||||
DEFERRED INCOME TAXES | 501 | 275 | ||||||||||||
OTHER LONG-TERM LIABILITIES | 381 | 334 | ||||||||||||
Total liabilities | 29,767 | 36,214 | ||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||
Preferred stock, $0.01 par value—10,000,000 shares authorized, no shares issued and outstanding at December 31, 2020 and 2019
|
— | — | ||||||||||||
Common stock, $0.01 par value—100,000,000 shares authorized; 40,578,523 shares issued and 39,644,363 shares outstanding at December 31, 2020; 40,075,475 shares issued and 39,201,477 shares outstanding at December 31, 2019
|
406 | 401 | ||||||||||||
Treasury stock—at cost, 934,160 shares at December 31, 2020 and 873,998 shares at December 31, 2019
|
(2,004) | (1,931) | ||||||||||||
Additional paid-in capital | 147,940 | 146,460 | ||||||||||||
Accumulated deficit | (112,308) | (100,747) | ||||||||||||
Accumulated other comprehensive loss | (558) | (519) | ||||||||||||
Total stockholders’ equity | 33,476 | 43,664 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 63,243 | $ | 79,878 |
2020 | 2019 | |||||||||||||||||||
REVENUE | $ | 81,362 | $ | 121,845 | ||||||||||||||||
COSTS AND OPERATING EXPENSES: | ||||||||||||||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 42,236 | 61,990 | ||||||||||||||||||
Technology and development (exclusive of depreciation and amortization shown separately below) | 12,007 | 18,273 | ||||||||||||||||||
Sales and marketing | 15,350 | 21,790 | ||||||||||||||||||
General and administrative (exclusive of depreciation and amortization shown separately below) | 14,356 | 17,734 | ||||||||||||||||||
Depreciation and amortization | 8,068 | 9,865 | ||||||||||||||||||
Total costs and operating expenses | 92,017 | 129,652 | ||||||||||||||||||
LOSS FROM OPERATIONS | (10,655) | (7,807) | ||||||||||||||||||
OTHER INCOME (EXPENSE), net | 240 | (17) | ||||||||||||||||||
INTEREST EXPENSE | (189) | (268) | ||||||||||||||||||
LOSS BEFORE INCOME TAXES | (10,604) | (8,092) | ||||||||||||||||||
PROVISION FOR INCOME TAXES | 957 | 929 | ||||||||||||||||||
NET LOSS | (11,561) | $ | (9,021) | |||||||||||||||||
NET LOSS PER SHARE: | ||||||||||||||||||||
Basic | $ | (0.29) | $ | (0.23) | ||||||||||||||||
Diluted | $ | (0.29) | $ | (0.23) | ||||||||||||||||
WEIGHTED AVERAGE SHARES USED TO COMPUTE NET LOSS PER SHARE: | ||||||||||||||||||||
Basic | 39,464,954 | 39,090,239 | ||||||||||||||||||
Diluted | 39,464,954 | 39,090,239 |
2020 | 2019 | ||||||||||||||||
Net loss | $ | (11,561) | $ | (9,021) | |||||||||||||
Other comprehensive loss: | |||||||||||||||||
Changes in foreign currency translation adjustment | (39) | (177) | |||||||||||||||
Comprehensive loss | $ | (11,600) | $ | (9,198) |
Common Stock | Treasury Stock |
Additional
Paid-in Capital |
Accumulated
Deficit |
Accumulated
Other Comprehensive Income (Loss) |
Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE - January 1, 2019
|
39,880,054 | $ | 399 | 852,482 | $ | (1,899) | $ | 144,739 | $ | (91,726) | $ | (342) | $ | 51,171 | |||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | 39,572 | — | — | — | 60 | — | — | 60 | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation cost | — | — | — | — | 1,661 | — | — | 1,661 | |||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units, net of treasury stock | 155,849 | 2 | 21,516 | (32) | — | — | — | (30) | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (9,021) | — | (9,021) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (177) | (177) | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE - December 31, 2019
|
40,075,475 | 401 | 873,998 | (1,931) | 146,460 | (100,747) | (519) | 43,664 | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation cost | — | — | — | — | 1,484 | — | — | 1,484 | |||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units, net of treasury stock | 503,048 | 5 | 60,162 | (73) | (4) | — | — | (72) | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (11,561) | — | (11,561) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (39) | (39) | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE - December 31, 2020
|
40,578,523 | $ | 406 | 934,160 | $ | (2,004) | $ | 147,940 | $ | (112,308) | $ | (558) | $ | 33,476 |
2020 | 2019 | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net loss | $ | (11,561) | $ | (9,021) | |||||||||||||
Adjustments to reconcile net loss to net cash and cash equivalents
provided by operating activities: |
|||||||||||||||||
Depreciation and amortization | 10,294 | 11,251 | |||||||||||||||
Long-lived asset impairment | 806 | 1,751 | |||||||||||||||
Stock-based compensation expense | 1,456 | 1,616 | |||||||||||||||
Provision for deferred income taxes | 226 | 44 | |||||||||||||||
Change in allowance for doubtful accounts | (75) | 360 | |||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable, net | 3,089 | 4,676 | |||||||||||||||
Prepaid expenses and other assets | 624 | 526 | |||||||||||||||
Operating lease right-of-use assets and liabilities, net | (305) | 95 | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | (3,081) | (8,828) | |||||||||||||||
Deferred revenue | (435) | (11) | |||||||||||||||
Net cash provided by operating activities | 1,038 | 2,459 | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Purchases of property and equipment | (3,053) | (3,772) | |||||||||||||||
Net cash used in investing activities | (3,053) | (3,772) | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Payments of financing issuance costs | — | (60) | |||||||||||||||
Repayments on long-term debt and finance leases | (3,086) | (3,427) | |||||||||||||||
Proceeds from exercise of common stock options | — | 60 | |||||||||||||||
Purchase of treasury stock and shares received to satisfy minimum tax
withholdings |
(73) | (32) | |||||||||||||||
Net cash used in financing activities | (3,159) | (3,459) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (44) | (183) | |||||||||||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (5,218) | (4,955) | |||||||||||||||
Cash and cash equivalents, beginning of period | 10,966 | 15,921 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 5,748 | $ | 10,966 | |||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||||||||
Cash paid for interest | $ | 188 | $ | 268 | |||||||||||||
Cash paid for income taxes | $ | 721 | $ | 706 | |||||||||||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING TRANSACTIONS: | |||||||||||||||||
Property, equipment and service contracts financed under long-term debt and finance lease obligations | $ | 1,675 | $ | 3,152 | |||||||||||||
Accrued property and equipment expenditures | $ | — | $ | 408 | |||||||||||||
Stock-based compensation capitalized to property and equipment | $ | 28 | $ | 45 |
Leasehold improvements |
3–10 years
|
||||
Computer hardware |
3–5 years
|
||||
Computer software | 3 years | ||||
Furniture and fixtures | 7 years | ||||
Other |
3–5 years
|
Original
Estimated Economic Life |
2020 | 2019 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Gross amortizable intangible assets: | |||||||||||||||||
Customer and publisher relationships | 10 years | $ | 14,780 | $ | 14,780 | ||||||||||||
Technology | 5 years | 2,330 | 2,330 | ||||||||||||||
Trademark | 5 years | 300 | 300 | ||||||||||||||
Total gross amortizable intangible assets | 17,410 | 17,410 | |||||||||||||||
Accumulated amortization: | |||||||||||||||||
Customer and publisher relationships | (8,425) | (6,809) | |||||||||||||||
Technology | (2,305) | (1,933) | |||||||||||||||
Trademark | (300) | (257) | |||||||||||||||
Total accumulated amortization | (11,030) | (8,999) | |||||||||||||||
Amortizable intangible assets, net | $ | 6,380 | $ | 8,411 |
Software & Services | Portal & Advertising | Total | |||||||||||||||
Balance as of January 1, 2019 | $ | 11,797 | $ | 4,144 | $ | 15,941 | |||||||||||
Balance as of Effect of foreign currency translation | 7 | — | 7 | ||||||||||||||
Balance as of December 31, 2019 | $ | 11,804 | $ | 4,144 | $ | 15,948 | |||||||||||
Effect of foreign currency translation | 4 | — | 4 | ||||||||||||||
Balance as of December 31, 2020 | $ | 11,808 | $ | 4,144 | $ | 15,952 |
Accounts Receivable | |||||||||||
2020 | 2019 | ||||||||||
Portal & Advertising Customer A | * | 14 | % | ||||||||
* - Less than 10% |
Revenue | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Portal & Advertising Customer A | * | 13 | % | ||||||||||||||
* - Less than 10% |
Twelve Months Ended
December 31, |
||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Software & Services | ||||||||||||||||||||
Products and services transferred over time | $ | 33,072 | $ | 34,029 | ||||||||||||||||
Products transferred at a point in time | 11,208 | 10,456 | ||||||||||||||||||
Total Software & Services | $ | 44,280 | $ | 44,485 | ||||||||||||||||
Portal & Advertising | ||||||||||||||||||||
Products and services transferred over time | $ | 3,120 | $ | 5,168 | ||||||||||||||||
Products transferred at a point in time | 33,962 | 72,192 | ||||||||||||||||||
Total Portal & Advertising | $ | 37,082 | $ | 77,360 | ||||||||||||||||
Total Revenue | $ | 81,362 | $ | 121,845 |
Twelve Months Ended
December 31, |
||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Revenue | ||||||||||||||||||||
United States | $ | 56,879 | $ | 99,845 | ||||||||||||||||
International | 24,483 | 22,000 | ||||||||||||||||||
Total revenue | $ | 81,362 | $ | 121,845 |
Beginning Balance —January 1, 2020 | $ | 8,875 | ||||||
Recognition of deferred revenue | (10,227) | |||||||
Deferral of revenue | 9,623 | |||||||
Effect of foreign currency translation | 169 | |||||||
Ending balance-Ending Balance —December 31, 2020 | $ | 8,440 |
2020 | 2019 | ||||||||||
Computer equipment | $ | 26,994 | $ | 25,392 | |||||||
Computer software | 33,644 | 31,037 | |||||||||
Furniture and fixtures | 913 | 1,315 | |||||||||
Leasehold improvements | 883 | 1,116 | |||||||||
Work in process (primarily software development costs) | 31 | 187 | |||||||||
Other | 172 | 136 | |||||||||
Property and equipment, gross | 62,637 | 59,183 | |||||||||
Less accumulated depreciation | (51,822) | (44,235) | |||||||||
Property and equipment, net | $ | 10,815 | $ | 14,948 |
Year Ending December 31, | 2020 | 2019 | ||||||||||||||||||
Computer equipment | $ | 27 | $ | 2 | ||||||||||||||||
Computer software | — | 1,557 | ||||||||||||||||||
Furniture and fixtures | 57 | 102 | ||||||||||||||||||
Leasehold improvements | 32 | 90 | ||||||||||||||||||
Work in process (primarily software development costs) | 102 | — | ||||||||||||||||||
Total | $ | 218 | $ | 1,751 |
2020 | 2019 | ||||||||||
Long-lived tangible assets: | |||||||||||
United States | $ | 10,661 | $ | 14,629 | |||||||
International | 154 | 319 | |||||||||
Total long-lived tangible assets | $ | 10,815 | $ | 14,948 |
2020 | 2019 | ||||||||||
Accrued compensation | $ | 2,637 | $ | 4,209 | |||||||
Accrued content fees and other costs of revenue | 142 | 151 | |||||||||
Accrued taxes | 256 | 192 | |||||||||
Accrued royalties and rebates | 1,030 | 930 | |||||||||
Other | 723 | 396 | |||||||||
Total | $ | 4,788 | $ | 5,878 |
2020 | 2019 | ||||||||||
Balance at beginning of the year | $ | 56 | $ | 274 | |||||||
Charged to expense | 970 | 607 | |||||||||
Cash payments related to 2018 plan | — | (268) | |||||||||
Cash payments related to 2019 plan | (56) | (557) | |||||||||
Cash payments related to 2020 plan | (949) | — | |||||||||
Balance at end of year | $ | 21 | $ | 56 |
2020 | 2019 | ||||||||||||||||
United States | $ | (11,810) | $ | (8,799) | |||||||||||||
Foreign | 1,206 | 707 | |||||||||||||||
Total | $ | (10,604) | $ | (8,092) |
2020 | 2019 | ||||||||||||||||
Current: | |||||||||||||||||
United States Federal | $ | — | $ | — | |||||||||||||
State | 31 | 35 | |||||||||||||||
Foreign | 700 | 850 | |||||||||||||||
Total current provision for income taxes | 731 | 885 | |||||||||||||||
Deferred: | |||||||||||||||||
United States Federal | 10 | 24 | |||||||||||||||
State | 126 | 61 | |||||||||||||||
Foreign | 90 | (41) | |||||||||||||||
Net deferred provision for income taxes | 226 | 44 | |||||||||||||||
Total provision for income taxes | $ | 957 | $ | 929 |
2020 | 2019 | ||||||||||
Deferred income tax assets: | |||||||||||
Stock and other compensation expense | $ | 2,157 | $ | 2,252 | |||||||
Net operating losses | 14,169 | 11,787 | |||||||||
Research and development credits | 1,676 | 1,676 | |||||||||
Other federal, state and foreign carryforwards | 2,458 | 2,424 | |||||||||
Intangible assets | 2,221 | 1,765 | |||||||||
Other | 459 | 620 | |||||||||
Gross deferred tax assets | 23,140 | 20,524 | |||||||||
Valuation allowances | (19,333) | (14,025) | |||||||||
Net deferred tax assets | 3,807 | 6,499 | |||||||||
Deferred income tax liabilities: | |||||||||||
Fixed assets | (2,380) | (5,139) | |||||||||
Intangible assets and other | (1,300) | (1,007) | |||||||||
Gross deferred tax liabilities | (3,680) | (6,146) | |||||||||
Subtotal | 127 | 353 | |||||||||
Less unrecognized tax benefit liability related to deferred items | (628) | (628) | |||||||||
Net deferred tax liabilities | $ | (501) | $ | (275) |
Year Ended
December 31, 2020 |
||||||||||||||||||||
Revenue | Cost of revenue (1) |
Segment Adjusted
EBITDA |
||||||||||||||||||
Software & Services | $ | 44,280 | $ | 14,477 | $ | 14,340 | ||||||||||||||
Portal & Advertising | 37,082 | 27,759 | 2,168 | |||||||||||||||||
Corporate Unallocated Expenses | — | — | (11,190) | |||||||||||||||||
Total Company | $ | 81,362 | $ | 42,236 | $ | 5,318 |
Year Ended
December 31, 2019 |
||||||||||||||||||||
Revenue | Cost of revenue (1) |
Segment Adjusted
EBITDA |
||||||||||||||||||
Software & Services | $ | 44,485 | $ | 12,669 | $ | 12,531 | ||||||||||||||
Portal & Advertising | 77,360 | 49,321 | 10,657 | |||||||||||||||||
Corporate Unallocated Expenses | — | — | (13,685) | |||||||||||||||||
Total Company | $ | 121,845 | $ | 61,990 | $ | 9,503 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Total Segment Adjusted EBITDA | $ | 5,318 | $ | 9,503 | ||||||||||||||||
Less: | ||||||||||||||||||||
Provision for income taxes | (957) | (929) | ||||||||||||||||||
Interest expense | (189) | (268) | ||||||||||||||||||
Other income (expense), net | 240 | (17) | ||||||||||||||||||
Depreciation and amortization | (10,294) | (11,251) | ||||||||||||||||||
Long-lived asset impairment* | (806) | (1,751) | ||||||||||||||||||
Stock-based compensation expense | (1,456) | (1,616) | ||||||||||||||||||
Restructuring costs** | (1,483) | (959) | ||||||||||||||||||
Certain legal and professional services fees*** | (1,934) | (1,733) | ||||||||||||||||||
Net loss | $ | (11,561) | $ | (9,021) |
* | "Long-lived asset impairment" includes impairment charges related to property, plant and equipment, capitalized software and leased assets. | ||||
** | "Restructuring costs" include severance expense, contract termination costs and other exit or disposal costs. | ||||
*** | "Certain legal and professional services fees" includes legal fees and other related expenses outside the ordinary course of business, as well as fees and expenses related to merger and acquisition activities. |
Year Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Finance lease cost | ||||||||||||||
Amortization of right-of-use assets | $ | 2,862 | $ | 3,590 | ||||||||||
Interest | 123 | 237 | ||||||||||||
Operating lease cost | 2,572 | 3,666 | ||||||||||||
Total lease cost | $ | 5,557 | $ | 7,493 |
Year Ending December 31, | Operating Leases | Finance Leases | |||||||||
2021 | $ | 2,290 | $ | 1,070 | |||||||
2022 | 1,134 | 765 | |||||||||
2023 | 446 | 328 | |||||||||
2024 | 38 | 29 | |||||||||
2025 | — | 2 | |||||||||
Total undiscounted cash flows | $ | 3,908 | $ | 2,194 | |||||||
Less imputed interest | (235) | (120) | |||||||||
Present value of lease liabilities | $ | 3,673 | $ | 2,074 |
Twelve months ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from operating leases | $ | 2,791 | $ | 3,671 | ||||||||||
Operating cash flows from finance leases | $ | 123 | $ | 237 | ||||||||||
Financing cash flows from finance leases | $ | 3,086 | $ | 3,427 | ||||||||||
Lease liabilities arising from obtaining right-of-use-assets: | ||||||||||||||
Operating leases | $ | 1,208 | $ | 175 | ||||||||||
Finance leases | $ | 1,675 | $ | 3,152 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Expected dividend yield | — | % | — | % | |||||||||||||
Expected stock price volatility | 63.8 | % | 66.7 | % | |||||||||||||
Risk-free interest rate | 1.8 | % | 2.0 | % | |||||||||||||
Expected life of options (in years) | 5.70 | 5.27 |
Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Technology and development | $ | 218 | $ | 338 | |||||||||||||
Sales and marketing | 407 | 513 | |||||||||||||||
General and administrative | 831 | 765 | |||||||||||||||
Total stock-based compensation expense | $ | 1,456 | $ | 1,616 |
Number of
Shares |
Weighted
Average Exercise Price |
Aggregate
Intrinsic Value (in thousands) |
Weighted
Average Remaining Contractual Term (years) |
||||||||||||||||||||
Outstanding at January 1, 2020 | 7,296,746 | $ | 2.48 | ||||||||||||||||||||
Granted | 89,100 | 1.49 | |||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||
Forfeited | (161,651) | 2.28 | |||||||||||||||||||||
Expired | (1,261,889) | 2.73 | |||||||||||||||||||||
Outstanding—December 31, 2020 | 5,962,306 | $ | 2.42 | $ | 8 | 4.72 | |||||||||||||||||
Expected to vest—December 31, 2020 | 5,954,759 | $ | 2.42 | $ | 7 | 4.71 | |||||||||||||||||
Vested and exercisable—December 31, 2020 | 5,396,910 | $ | 2.47 | $ | — | 4.39 |
Number of Shares |
Weighted Average
Fair Value |
||||||||||
Unvested—January 1, 2020
|
677,354 | $ | 1.54 | ||||||||
Granted | 1,250,595 | 1.18 | |||||||||
Vested | (503,048) | 1.38 | |||||||||
Forfeited | (38,168) | 1.53 | |||||||||
Unvested—December 31, 2020
|
1,386,733 | $ | 1.27 | ||||||||
Number of Shares |
Weighted Average
Fair Value |
|||||||||||||
Unvested—January 1, 2020 | 297,789 | $ | 1.36 | |||||||||||
Granted | 336,100 | 1.21 | ||||||||||||
Vested | — | — | ||||||||||||
Forfeited | (74,442) | 1.36 | ||||||||||||
Unvested—December 31, 2020 | 559,447 | $ | 1.27 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Anti-dilutive equity awards: | ||||||||||||||||||||
Stock options | 6,672,102 | 7,553,379 | ||||||||||||||||||
Restricted stock units | 919,296 | 447,886 | ||||||||||||||||||
Performance based stock units | 372,675 | 119,116 |
1 Year Synacor Chart |
1 Month Synacor Chart |
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