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Note 12 - Common Stock, Treasury Stock and Warrants
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
12.
Common stock, treasury stock and warrants
 
Common stock
 
As of
December 31, 2019,
2018
and
2017
, the number of issued shares of common stock was
78,642,078
,
76,525,581
and 
61,631,573,
respectively, which included shares of treasury stock of
2,768,399
,
1,233,198
 and
352,523,
respectively.
 
For the year ended
December 31, 2019
, the change in the number of issued shares of common stock comprised the following issuances:
 
•
An aggregate of
2,116,497
 shares of common stock were issued as a result of the vesting of RSUs and included
567,447
 shares of common stock withheld to cover withholding taxes upon such vesting, which are reflected as additions to treasury stock in the consolidated statements of changes in shareholders' equity. 
 
For the year ended
December 31, 2018
, the change in the number of issued shares of common stock comprised the following issuances:
 
•
An aggregate of
12,194,008
shares of common stock were issued as a result of the vesting of RSUs and included
875,675
shares of common stock withheld to cover withholding taxes upon such vesting, which are reflected as additions to treasury stock in the consolidated statements of changes in shareholders' equity. 
   
•
An aggregate of
2,700,000
shares of common stock were issued in a registered direct offering ("Registered Direct Offering") to certain institutional investors with a purchase price of
$5.00
per share, pursuant to a definitive securities purchase agreement entered into on
January 10, 2018,
for proceeds of
$13,392,
net of issuance costs of
$108.
   
•
Concurrent with the Registered Direct Offering, the Company issued to these institutional buyers, for
no
additional consideration, warrants to purchase an aggregate of
1,350,000
shares of common stock. These warrants have an exercise price of
$6.00
per share and are exercisable until
July 11, 2020.
 
Treasury stock
 
As of
December 31, 2019,
2018
and
2017
, the Company held
2,768,399
,
1,233,198
 and
352,523
 shares in treasury, with a cost of 
$8,184
,
$3,272
and 
$1,274,
respectively. The Company's share-based incentive plans allow employees the option to either make cash payment or forfeit shares of common stock upon vesting to satisfy federal and state statutory tax withholding obligations associated with equity awards. The forfeited shares of common stock
may
be taken into treasury stock by the Company or sold on the open market. 
For the year ended
December 31, 2019
, 
567,447
shares were withheld to cover withholding taxes owed by certain employees, all of which were taken into treasury stock. During the
fourth
quarter of
2019,
the Company repurchased 
967,754
 of its own shares
as part of a stock repurchase program
authorized by the Company's Board of Directors on
November 19, 2019
.
For the year ended
December 31, 2018
, 
875,675
shares were withheld to cover withholding taxes owed by certain employees, all of which were taken into treasury stock,
729,167
of which represented accelerated vesting from Red Violet employees who received shares on
April 9, 2018
in connection with the Spin-off. On
October 17, 2018,
the Company repurchased
5,000
shares from an outside investor.
 
Warrants
 
As of
December 31, 2019,
2018
and
2017
, warrants to purchase an aggregate of
2,398,776
,
2,498,776
and
1,273,776
shares of common stock were outstanding, respectively. The current exercise prices for outstanding issuances range from
3.75
to
6.00
per share.

On
July 9, 2018
the Company entered into First Amendments (the "First Amendments") to the Amendments to Warrants and Agreements to Exercise ("Amended Whitehorse Warrants") with (i) H.I.G. Whitehorse SMA ABF, L.P. regarding 
46,667
 warrants to purchase common stock of the Company, par value 
$0.0005
 per share, at an exercise price of 
$3.00
 per share; (ii) H.I.G. Whitehorse SMA Holdings I, LLC regarding 
66,666
 warrants to purchase common stock of the Company at an exercise price of 
$3.00
 per share; and (iii) Whitehorse Finance, Inc. regarding 
186,667
 warrants to purchase common stock of the Company at an exercise price of
$3.00
per share. In
November 2017,
the Amended Whitehorse Warrants were exercised and the Company issued an aggregate of
300,000
shares of common stock of the Company (the "Warrant Shares") to the warrant holders. Pursuant to the First Amendments, the warrant holders have the right, but
not
the obligation, to require the Company to purchase from these warrant holders the
300,000
Warrant Shares at
$3.8334
per share (the "Put Right"), which could be exercised
during the period commencing
January 1, 2019
and ending
December 15, 2019.
 On
December 6, 2019,
the Company entered into the Second Amendments to the Amended Whitehorse Warrants, pursuant to which the expiration of the Put Right was extended from
December 15, 2019
to
January 31, 2020.
See Note
18,
 
Subsequent events
.
 
In accordance with ASC
480,
 
Distinguishing Liabilities from Equity
, the Put Right should be classified within other current liabilities on the consolidated balance sheets when the market price of the Company's common stock is lower than the exercise price of
$3.8334
per share. As of
December 31, 2019
, the last reported sale price of the Company's common stock was lower than the exercise price, and as such the Put Right is classified in other current liabilities on the consolidated balance sheet.
For the year ended
December 31, 2018, 
the increase in warrants resulted from the issuance of warrants to purchase an aggregate of
1,350,000
shares of common stock, with an exercise price of
$6.00
per share. These issuances occurred concurrent with the Registered Direct Offering. Pursuant to the First Amendments to the Amended Whitehorse Warrants, the parties agreed to reduce the price per share at which the warrant holders have the right, but
not
the obligation, to require the Company to purchase from the warrant holders the Warrant Shares to
$3.8334
per share, to modify the period during which the Put Right could be exercised to the period commencing
January 1, 2019
and ending
December 15, 2019
and to modify the minimum price that the warrant holders can transfer any of the Warrant Shares to
no
less than
$3.8334
per share. 
Preferred stock
 
As of
December 31, 2019
and
2018
, the Company had 
10
million shares of blank-check preferred stock with par value of
$
0.0001
per share authorized.
No
 
shares of preferred stock have been issued or are outstanding.