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Divestiture Support Services Agreement | 12 Months Ended
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Dec. 31, 2022
Divestiture Support Services Agreement [Abstract] |
Divestiture Support Services Agreement | Note 10: Divestiture Support Services Agreement In October 2020, the Company sold certain assets related to its Local Leads Platform, Call Marketplace and other assets not related to core conversational analytics. The purchaser is a related party controlled by a shareholder and officers of the Company. The Company received cash consideration at closing of approximately $2.3 million. No gain or loss on the sale of discontinued operations was recognized in the Consolidated Statement of Operations as it was sold to a related party. The net consideration received from the sale was recognized in the Company’s Consolidated Statements of Stockholder’s Equity. The sale also included (i) contingent consideration based on the achievement of certain revenue and thresholds from the Call Marketplace, Local Leads Platform and the purchaser’s total business; (ii) certain contingent sales transaction consideration; (iii) shares of Class B common stock in the purchaser equal to the issuance of a 10% equity interest; and (iv) the cancellation of Company stock options for 1.5 million shares currently held by two officers of the Company who were involved in the transaction. In connection with the closing, the Company also entered into an administrative support services agreement with the related party purchaser pursuant to which the Company will provide services to the related party purchaser for a support services fee, with certain guaranteed payments to the Company in the first year and in the second year following closing. Support services fees related to this arrangement totaled $6.4 million for the year ended December 31, 2022 and $6.6 million for the year ended December 31, 2021 and are included in the Company’s Consolidated Statements of Operations, net of the related expenses, within Service costs, Sales and marketing, Product development, and General and administrative. As of December 31, 2022 and 2021, the net amount due from the purchaser of $663,000 and $630,000, respectively, is included in the Company’s Consolidated Balance Sheet within Prepaid expenses and other current assets.

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