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Note 5 - Discontinued Operations
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
5.
Discontinued operations
 
In accordance with ASC
205
-
20,
Discontinued Operations,
 the financial results of Red Violet are reflected in the Company's consolidated financial statements as discontinued operations and, therefore, are presented as assets and liabilities of discontinued operations on the consolidated balance sheets, loss from discontinued operations on the consolidated statements of operations, and cash activity from discontinued operations on the consolidated statements of cash flows. As of the Spin-off date, the Company's additional paid-in capital decreased by the carrying value of the net assets of Red Violet of
$41,500.
 
For the year ended
December 31, 2018,
the financial results of operations of Red Violet were as follows:
 
   
Year Ended
  
(In thousands)
  
2018
  
Major classes of line items constituting loss from discontinued operations:
        
Revenue
   $
3,325
  
Cost of revenue (exclusive of depreciation and amortization)
    
2,017
  
Sales and marketing
    
1,089
  
General and administrative
    
1,852
  
Depreciation and amortization
    
451
  
Loss from operations of discontinued operations, net of $0 income taxes
    
(2,084
 )
Loss on disposal of discontinued operations, net of $0 income taxes
    
(19,040
 )
Net loss from discontinued operations
   $
(21,124
 )
 
For the year ended
December 31, 2018,
included in the net loss from discontinued operations is a loss on disposal of discontinued operations of
$19,040,
of which an aggregate of
$16,030
represents non-cash charges. The loss on disposal of discontinued operations consisted of the following:
 
   
Year Ended
  
(In thousands)
  
2018
  
Share-based compensation expense (1)
   $
15,548
  
Write-off of unamortized debt costs (2)
    
284
  
Write-off of certain prepaid expenses
    
198
  
Spin-off related professional fees
    
2,012
  
Spin-off related employee compensation
    
998
  
Loss on disposal of discontinued operations
   $
19,040
  
 
(
1
)
As discussed and defined in Note
4,
Spin-off of Red Violet
, share-based compensation expense represents non-cash expense in connection with the Acceleration.
(
2
)
As discussed in Note
10,
Long-term debt, net
, in connection with the Spin-off, the Company repaid the Promissory Notes to certain shareholders, which resulted in a write-off of unamortized debt costs of
$284.
 
During the
first
quarter of
2018,
in connection with the Spin-off of Red Violet, an aggregate of
$7,708
was recognized in costs and expenses from continuing operations as Spin-off transaction costs, and included non-cash share-based compensation expense of
$5,409,
as a result of
2,041,000
shares of Transaction Grants (as defined in Note
13,
Share-based compensation
) and employee cash compensation of
$2,299.