CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
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Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 977,490 | $ 935,261 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 18,689,807 | 18,413,419 |
Common stock, shares outstanding | 18,689,807 | 18,413,419 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) |
3 Months Ended | |
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Income Statement [Abstract] | ||
Revenue | $ 35,101,991 | $ 25,331,814 |
Cost of revenue | 28,662,113 | 20,788,816 |
Gross profit | 6,439,878 | 4,542,998 |
Operating expenses: | ||
Selling, general, and administrative | 4,262,560 | 4,409,323 |
Depreciation and amortization | 407,283 | 333,753 |
Total operating expenses | 4,669,843 | 4,743,076 |
Operating income (loss) | 1,770,035 | (200,078) |
Interest expense | (561,462) | (84,321) |
Income (loss) before taxes | 1,208,573 | (284,399) |
Income tax expense (benefit) | 61,833 | (52,732) |
Net income (loss) | 1,146,740 | (231,667) |
Net income (loss) applicable to common stockholders | $ 1,146,740 | $ (231,667) |
Net income (loss) per share applicable to common stockholders | ||
Basic | $ 0.06 | $ (0.02) |
Diluted | $ 0.06 | $ (0.02) |
Weighted average number of common shares outstanding | ||
Basic | 18,504,993 | 15,396,703 |
Diluted | 19,412,685 | 15,396,703 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Accumulated Deficit [Member] |
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Beginning Balance at Dec. 31, 2019 | $ 61,644,052 | $ 15,373 | $ 160,858,072 | $ (99,229,393) |
Beginning Balance, Shares at Dec. 31, 2019 | 15,372,905 | |||
Stock-based compensation | 377,317 | 377,317 | ||
Net income (loss) | (231,667) | (231,667) | ||
Ending Balance at Mar. 31, 2020 | 61,789,702 | $ 15,373 | 161,235,389 | (99,461,060) |
Ending Balance, Shares at Mar. 31, 2020 | 15,372,905 | |||
Beginning Balance at Dec. 31, 2020 | 68,042,972 | $ 18,413 | 166,424,597 | (98,400,038) |
Beginning Balance, Shares at Dec. 31, 2020 | 18,413,419 | |||
Stock-based compensation | 309,610 | 309,610 | ||
Stock option and warrant exercises | 253,389 | $ 277 | 253,112 | |
Stock option and warrant exercises, Shares | 276,388 | |||
Net income (loss) | 1,146,740 | 1,146,740 | ||
Ending Balance at Mar. 31, 2021 | $ 69,752,711 | $ 18,690 | $ 166,987,319 | $ (97,253,298) |
Ending Balance, Shares at Mar. 31, 2021 | 18,689,807 |
The Company and Description of Business |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
The Company and Description of Business |
1. The Company and Description of Business The accompanying condensed consolidated financial statements include the accounts of Quest Resource Holding Corporation (“QRHC”) and its subsidiaries, Quest Resource Management Group, LLC (“Quest”), Landfill Diversion Innovations, LLC (“LDI”), Youchange, Inc. (“Youchange”), Quest Vertigent Corporation (“QVC”), Quest Vertigent One, LLC (“QV One”), and Quest Sustainability Services, Inc. (“QSS”) (collectively, “we,” “us,” “our,” or “our company”). Operations – We are a national provider of waste and recycling services to customers from across multiple industry sectors that are typically larger, multi-location businesses. We create customer-specific programs and perform the related services for the collection, processing, recycling, disposal, and tracking of waste streams and recyclables. In March 2020, the World Health Organization categorized Coronavirus Disease 2019 (“COVID-19”) as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The waste management and recycling services we provide are currently designated an essential critical infrastructure business under the President’s COVID-19 guidance, the continued operation of which is vital for national public health, safety and national economic security. The extent of the impact of the COVID-19 outbreak on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, its impact on our customers and subcontractors, and the range of governmental and community reactions to the pandemic, which are uncertain and cannot be fully predicted at this time. On October 19, 2020, Quest acquired substantially all of the assets used in the business of Green Remedies Waste and Recycling, Inc. (“Green Remedies”), a leading provider of independent environmental services, particularly in multi-family housing, located in Burlington, NC. See Note 3 for more information regarding the acquisition. |
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies |
2. Summary of Significant Accounting Policies Principles of Presentation and Consolidation The condensed consolidated financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2020. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying condensed consolidated financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position at March 31, 2021 and the results of our operations and cash flows for the periods presented. We derived the December 31, 2020 condensed consolidated balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP. As QRHC, Quest, LDI, Youchange, QVC, QV One, and QSS each operate as environmental-based service companies, we did not deem segment reporting necessary. All intercompany accounts and transactions have been eliminated in consolidation. Interim results are subject to seasonal variations, and the results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the full year. Recent Accounting Pronouncements Adopted On January 1, 2021, we adopted Accounting Standards Update (“ASU”) 2019-12, Income Taxes – (Topic 740), which simplifies the accounting for income taxes by removing certain exceptions and amending guidance to improve consistent application of accounting over income taxes. The adoption of the standard did not have a material effect on our consolidated financial statements. In March 2020, the Financial Accounting Standards Board (the “FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides operational guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (“LIBOR”). The amendments are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The expedients and exceptions provided by the amendments generally do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. As further discussed in Note 7, our ABL facility provides procedures for determining a replacement or alternative rate in the event that LIBOR is unavailable. As such, we do not expect the transition away from LIBOR to have a material impact on our consolidated financial statements. Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which provides guidance on measuring credit losses on financial instruments. The amended guidance replaces current incurred loss impairment methodology of recognizing credit losses when a loss is probable with a methodology that reflects expected credit losses and requires a broader range of reasonable and supportable information to assess credit loss estimates. ASU 2016-13 is effective for us on January 1, 2023. We are assessing the provisions of this amended guidance; however, the adoption of the standard is not expected to have a material effect on our consolidated financial statements. There have been no other recent accounting pronouncements or changes in accounting pronouncements that have been issued but not yet adopted that are of significance, or potential significance, to us. |
Acquisition |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition |
3. Acquisition On October 19, 2020, we acquired substantially all of the assets of Green Remedies (the “Green Remedies Assets”) pursuant to the Asset Purchase Agreement (the “Asset Purchase Agreement”), dated as of October 19, 2020, among the Company, Green Remedies and Alan Allred (the “Acquisition”). Green Remedies is a leading provider of independent environmental services, particularly in the multi-family housing market, and is located in Burlington, NC. The Acquisition strengthens our presence across key markets, particularly in multi-family housing. The total purchase price for the Green Remedies Assets was approximately $16.1 million at close, which includes an earn out estimate tied to future performance over the next three years. We funded the Acquisition primarily with funds pursuant to the Monroe Capital term note, as further discussed in Note 7, which is secured by a first priority lien on substantially all of QRHC’s tangible and intangible assets. The following table sets forth the purchase price allocation amount of assets acquired and liabilities assumed as of the acquisition date:
The purchase price was allocated based on an estimate of the fair value of assets acquired and liabilities assumed as of the acquisition date. Goodwill represents the amount by which the purchase price exceeds the estimated fair value of the net assets acquired and primarily reflects future synergies. The goodwill related to the Green Remedies Assets is deductible for income tax purposes. Deferred consideration payable to the seller includes $2,684,250 payable in either cash or shares of our common stock at our option, and an earn-out not to exceed $2,250,000 over an earn-out period, as defined in the Asset Purchase Agreement. We valued the earn-out liability at $440,000 using a Monte Carlo simulation (a Level 3 measurement under Accounting Standards Codification (“ASC”) 820, Fair Value Measurement). The fair value estimate uses unobservable inputs that reflect our own assumptions as to the performance target benchmarks of the acquired business and discount rates used in the calculation. As the earn-out liability is a contingent consideration arrangement, it is subject to periodic revaluation in accordance with ASC 820. Changes in the estimated fair value of the contingent earn-out consideration would be reflected in our results of operations in the period in which they are identified. We believe the estimated fair value of the earn-out, based on the evaluation of the performance of the acquired business is materially accurate as of March 31, 2021. The following table presents unaudited pro forma information for the three months ended March 31, 2020 as if the Acquisition had occurred at the beginning of our 2020 fiscal year. The unaudited pro forma information includes adjustments for amortization expense on definite lived intangible assets acquired, interest expense on debt incurred related to the Acquisition, and the related income tax effects. The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the operating results or financial position that would have occurred if the Acquisition had been effected on the dates previously set forth, nor is it indicative of the future operating results or financial position in combination.
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Property and Equipment, Net, and Other Assets |
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Property Plant And Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net, and Other Assets |
4. Property and Equipment, net, and Other Assets At March 31, 2021 and December 31, 2020, property and equipment, net, and other assets consisted of the following:
We compute depreciation using the straight-line method over the estimated useful lives of the property and equipment. Depreciation expense for the three months ended March 31, 2021 was $110,136, including $68,376 of depreciation expense reflected within “Cost of revenue” in our condensed consolidated statements of operations as it related to assets used in directly servicing customer contracts and was $50,220 for the three months ended March 31, 2020, including $13,818 of depreciation expense reflected within “Cost of revenue.” We recorded right-of-use operating lease assets related to our corporate office lease and the office lease space in Burlington, NC in accordance with ASC 842. Refer to Note 8, Leases for additional information. On February 20, 2018 (the “Closing Date”), we entered into an Asset Purchase Agreement with Earth Media Partners, LLC to sell certain assets of our wholly owned subsidiary, Earth911, Inc., in exchange for a 19% interest in Earth Media Partners, LLC, which was recorded as an investment in the amount of $246,585 as of the Closing Date, and a potential future earn-out amount of approximately $350,000. The net assets sold related to the Earth911.com website business and consisted primarily of the website and its content and customers, deferred revenue, and accounts receivable as of the Closing Date. Earth911, Inc. was subsequently renamed Quest Sustainability Services, Inc. The carrying amount of our investment in Earth Media Partners, LLC is included in “Security deposits and other assets” and we have an accrued receivable in the amount of $273,165 and $259,017 related to the earn-out included in “Accounts receivable” as of March 31, 2021 and December 31, 2020, respectively. |
Goodwill and Other Intangible Assets |
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Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets |
5. Goodwill and Other Intangible Assets The components of goodwill and other intangible assets were as follows:
We compute amortization using the straight-line method over the useful lives of the finite lived intangible assets. Amortization expense related to finite lived intangible assets was $365,524 and $297,351 for the three months ended March 31, 2021 and 2020, respectively. We have no indefinite-lived intangible assets other than goodwill. $58.2 million of the goodwill is not deductible for tax purposes, while $8.1 million of goodwill added in the Acquisition is deductible over its tax-basis life.
We performed our annual impairment analysis for goodwill and other intangible assets in the third quarter of 2020 with no impairment recorded. |
Current Liabilities |
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Current Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Liabilities |
6. Current Liabilities The components of Accounts payable and accrued liabilities were as follows:
Refer to Note 8, Leases for additional disclosure related to the operating lease liability. The components of Other current liabilities were as follows:
Refer to Note 3, Acquisition for additional disclosure related to the deferred seller consideration related to the Acquisition.
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Notes Payable and Other Long-Term Liabilities, Net |
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Notes Payable and Other Long-Term Liabilities, Net |
7. Notes Payable and Other Long-term Liabilities, net Our debt obligations are as follows:
We capitalize financing costs we incur related to implementing our debt arrangements. We record these debt issuance costs associated with our revolving credit facility and our term loan as a reduction of long-term debt, net and amortize them over the contractual life of the related debt arrangements. The table below summarizes changes in debt issuance costs.
Revolving Credit Facility On August 5, 2020 and then as amended on October 19, 2020, QRHC and certain of its domestic subsidiaries entered into a Loan, Security and Guaranty Agreement (the “BBVA Loan Agreement”) with BBVA USA, as a lender, and as administrative agent, collateral agent, and issuing bank, which provides for a credit facility (the “ABL Facility”) comprising the following:
The BBVA Loan Agreement contains certain financial covenants, including a minimum fixed charge coverage ratio. In addition, the BBVA Loan Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matter customarily restricted in such agreements. The BBVA Loan Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, change of control, and failure of any guaranty or security document supporting the BBVA Loan Agreement to be in full force and effect. Upon the occurrence of an event of default, the outstanding obligations under the BBVA Loan Agreement may be accelerated and become immediately due and payable. The ABL Facility bears interest, at our option, at either the Base Rate, as defined in the BBVA Loan Agreement, plus a margin ranging from 0.75% to 1.25% (3.0% as of March 31, 2021), or the LIBOR Lending Rate for the interest period in effect, plus a margin ranging from 1.75% to 2.25% (no borrowings as of March 31, 2021). As of March 31, 2021, the ABL Facility borrowing base availability was $15,000,000, of which $3,624,210 principal was outstanding. LIBOR is expected to be discontinued after 2021. The ABL Facility provides procedures for determining a replacement or alternative rate in the event that LIBOR is unavailable. However, there can be no assurances as to whether such replacement or alternative rate will be more or less favorable than LIBOR. We intend to monitor the developments with respect to the potential phasing out of LIBOR after 2021 and will work with BBVA USA to ensure any transition away from LIBOR will have minimal impact on our financial condition. We however can provide no assurances regarding the impact of the discontinuation of LIBOR on the interest rate that we would be required to pay or on our financial condition. Monroe Term Loan On October 19, 2020, QRHC and certain of its domestic subsidiaries entered into a Credit Agreement (the “Credit Agreement”), dated as of October 19, 2020, with Monroe Capital Management Advisors, LLC (“Monroe Capital”), as administrative agent for the lenders thereto. Among other things, the Credit Agreement provides for the following:
The Credit Agreement contains certain financial covenants, including a minimum fixed charge coverage ratio and a senior net leverage ratio. In addition, the Credit Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matters customarily restricted in such agreements. The Credit Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, change of control, and failure of any guaranty or security document supporting the Credit Agreement to be in full force and effect. Upon the occurrence of an event of default, the outstanding obligations under the Credit Agreement may be accelerated and become immediately due and payable. At the same time as the borrowing of the $11.5 million under the Credit Agreement, in a separate agreement, we issued Monroe Capital a warrant to purchase 500,000 shares of QRHC’s common stock exercisable immediately. For the $12.5 million delayed draw term loan facility, we will issue a separate warrant to purchase 350,000 shares upon drawing on this facility or on October 19, 2021, whichever occurs first, or upon certain other events. Both warrants have an exercise price of $1.50 per share and an expiration date of March 19, 2028. We estimated the value of the 500,000-share warrant issued using the Black Scholes option pricing model and recorded a debt discount of approximately $766,000 which is being amortized over the term of the Credit Agreement. We also executed a letter agreement that provides that the warrant holder will receive minimum net proceeds of $1 million less any net proceeds received from the sale of the warrant shares, which is conditional on the full exercise and sale of all the warrant shares at the same time and upon a date two years after the closing date of the agreement. Green Remedies Promissory Note On October 19, 2020, we issued an unsecured subordinated promissory note to the seller of Green Remedies in the aggregate principal amount of $2,684,250, payable commencing on January 1, 2021 in quarterly installments through October 1, 2025 and subject to an interest rate of 3.0% per annum. Interest Expense The amount of interest expense related to borrowings for the three months ended March 31, 2021 and 2020 was $348,307 and $60,845, respectively. Debt issuance costs of $1,757,856 are being amortized to interest expense over the lives of the related debt arrangements. As of March 31, 2021, the unamortized portion of the debt issuance costs was $1,581,811. The amount of interest expense related to the amortization of debt issuance costs for the three months ended March 31, 2021 and 2020 was $88,718 and $23,475, respectively. Debt discount (“OID”) of $1,674,178 is being amortized to interest expense over the lives of the related debt and consideration arrangements. As of March 31, 2021, the unamortized portion of OIDs was $1,473,239. The amount of interest expense related to the amortization of OID costs for the three months ended March 31, 2021 and 2020 is $122,905 and nil, respectively. Other long-term liabilities, net
We recorded deferred consideration in connection with the Acquisition as further described in Note 3. At March 31, 2021 and December 31, 2020 the unamortized portion of OID on the deferred consideration was $306,816 and $356,097, respectively. The non-current portion of deferred consideration payable to the seller is payable in either cash or shares of our common stock at our option. The earn-out is not to exceed $2,250,000 over an earn-out period, as defined in the Asset Purchase Agreement. We valued the earn-out liability at $440,000 using a Monte Carlo simulation. |
Leases |
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Leases |
8. Leases We lease corporate office space in The Colony, Texas under an 84-month, non-cancelable operating lease. Upon the adoption of ASC 842 on January 1, 2019, we recorded approximately $2.0 million and $2.2 million to record the operating lease right-of-use asset and the related liabilities, respectively. Our office lease had a remaining term of 1.5 years as of March 31, 2021, and we used an effective interest rate of 2.456%, which was our incremental borrowing rate in effect at the inception of the lease as our lease does not provide a readily determinable implicit rate. In connection with our acquisition of the Green Remedies Assets, we entered into a lease for office space in Burlington, NC. We recorded a right-of-use asset associated with this lease of approximately $80,000. The lease expires in October 2023. This office lease had a remaining term of 2.5 years as of March 31, 2021, and we used an effective interest rate of 9.50%, which was our incremental borrowing rate in effect at the inception of the lease as our lease does not provide a readily determinable implicit rate. This lease may be terminated under certain conditions as defined in the lease agreement. The lessor is a related party that is owned by the seller of Green Remedies and is employed by us. The future minimum lease payments required under our office leases as of March 31, 2021 are as follows:
Balance Sheet Classification The table below presents the lease related assets and liabilities recorded on the balance sheet. Right-of-use assets and related liabilities related to finance leases at March 31, 2021 are de minimis.
Lease Costs For the three months ended March 31, 2021 and 2020, we recorded approximately $158,000 and $150,000, respectively, of fixed cost operating lease expense. Our operating lease expense is offset by a minimum annual incentive received from a local Economic Development Council, which is accrued monthly and will continue over the term of the corporate office lease through August 2022. This minimum annual incentive is $93,600 effective September 2020 through the remainder of the lease term. Effective December 1, 2019, we subleased a portion of our corporate office space to a single tenant. The sublease agreement is accounted for as an operating lease and we recognize sublease income as an offset to operating lease expense on a straight-line basis over the term of the sublease agreement through August 2022. Sublease income, net of amortized leasing costs, for the three months ended March 31, 2021 was approximately $13,000. Cash paid for operating leases approximated operating lease expense and non-cash right of use asset amortization for the three months ended March 31, 2021 and 2020. We did not obtain any new operating lease right-of-use assets in the three months ended March 31, 2021. |
Revenue |
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Revenue |
9. Revenue Operating Revenues We provide businesses with services to reuse, recycle, and dispose of a wide variety of waste streams and recyclables generated by their operations. Service revenues are primarily generated from fees charged for our collection, transfer, disposal and recycling services and from sales of commodities by our recycling operations. In addition, we have product sales and other revenue primarily from sales of products such as antifreeze and windshield washer fluid, as well as minor ancillary services. Revenue Recognition We recognize revenue as services are performed or products are delivered. For example, we recognize revenue as waste and recyclable material are collected or when products are delivered. We recognize revenue net of any contracted pricing discounts or rebate arrangements. We generally recognize revenue for the gross amount of consideration received as we are generally the primary obligor (or principal) in our contracts with customers as we hold complete responsibility to the customer for contract fulfillment. We record amounts collected from customers for sales tax on a net basis. Disaggregation of Revenue The following table presents our revenue disaggregated by source. Two customers accounted for 46.9% of revenue for the three months ended March 31, 2021, and three customers accounted for 54.0% of revenue for the three months ended March 31, 2020. We operate primarily in the United States, with minor services in Canada.
Contract Balances Our incremental direct costs of obtaining a customer contract are generally deferred and amortized to selling, general, and administrative expense or as a reduction to revenue (depending on the nature of the cost) over the estimated life of the customer contract. We classify our contract acquisition costs as current or noncurrent based on the timing of when we expect to recognize the amortization and are included in other assets. As of March 31, 2021 and December 31, 2020, we had $50,000 and $100,000, respectively, of deferred contract costs. During the three months ended March 31, 2021 and 2020, we amortized $50,000 and $56,250, respectively, of deferred contract costs to selling, general, and administrative expense. We bill certain customers in advance, and, accordingly, we defer recognition of related revenues as a contract liability until the services are provided and control is transferred to the customer. As of March 31, 2021 and December 31, 2020, we had $241,495 and $50,454, respectively, of deferred revenue which was classified in “Other current liabilities.” |
Income Taxes |
3 Months Ended |
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Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes |
10. Income Taxes Our statutory income tax rate is anticipated to be 27%. We had income tax expense of $61,833 and an income tax benefit of $52,732 for the three months ended March 31, 2021 and 2020, respectively, which was attributable to state tax obligations based on current estimated state tax apportionments for states with no net operating loss carryforwards, and the reserve against the benefit of the net operating losses at the federal level. We compute income taxes using the asset and liability method in accordance with FASB ASC Topic 740, Income Taxes. Under the asset and liability method, we determine deferred income tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities and measure them using currently enacted tax rates and laws. We provide a valuation allowance to reduce the amount of deferred tax assets that, based on available evidence, is more likely than not to be realized. Realization of our net operating loss carryforward was not reasonably assured as of March 31, 2021 and December 31, 2020, and we had recorded a valuation allowance of $12,251,000 and $12,533,000, respectively, against deferred tax assets in excess of deferred tax liabilities in the accompanying condensed consolidated financial statements. As of March 31, 2021 and December 31, 2020, we had federal income tax net operating loss carryforwards of approximately $12,700,000 and $14,500,000, respectively, which expire at various dates ranging from 2032-2037.
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Fair Value of Financial Instruments |
3 Months Ended |
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Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments |
11. Fair Value of Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, deferred revenue, and notes payable. We do not believe that we are exposed to significant interest, currency, or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values, based on their short maturities or, for notes payable, based on borrowing rates currently available to us for loans with similar terms and maturities. Contingent liabilities are measured at fair value on a recurring basis. The fair value measurements are generally determined using unobservable inputs and are classified within Level 3 of the fair value hierarchy. See discussion of the contingent earn-out liability in Note 3, Acquisition.
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Stockholders' Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity |
12. Stockholders’ Equity Preferred Stock – Our authorized preferred stock consists of 10,000,000 shares of preferred stock with a par value of $0.001, of which no shares have been issued or are outstanding. Common Stock – Our authorized common stock consists of 200,000,000 shares of common stock with a par value of $0.001, of which 18,689,807 and 18,413,419 shares were issued and outstanding as of March 31, 2021 and December 31, 2020, respectively. Employee Stock Purchase Plan – On September 17, 2014, our stockholders approved our 2014 Employee Stock Purchase Plan (“ESPP”). We recorded expense of $4,224 and $6,667 related to the ESPP for the three months ended March 31, 2021 and 2020, respectively. Warrants – Warrant activity for the three months ended March 31, 2021 was as follows:
The following table summarizes the warrants issued and outstanding as of March 31, 2021:
Stock Options – We recorded stock option expense of $216,958 and $294,661 for the three months ended March 31, 2021 and 2020, respectively. The following table summarizes the stock option activity for the three months ended March 31, 2021:
Deferred Stock Units – Effective September 1, 2019, nonemployee directors can elect to receive all or a portion of their annual retainers in the form of deferred stock units (“DSUs”). The DSUs are recognized at their fair value on the date of grant. Each DSU represents the right to receive one share of our common stock following the completion of a director’s service. During the three months ended March 31, 2021, we granted 2,845 DSUs and recorded director compensation expense of $8,661 related to the grants. In addition, during the three months ended March 31, 2021 we granted 13,333 DSUs to executive employees and recorded compensation expense of $79,768, which includes an accrual of anticipated bonus expense to be paid in DSUs for certain executive employees. We had 89,409 and 73,231 DSUs outstanding at March 31, 2021 and December 31, 2020, respectively. |
Net Income (Loss) per Share |
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Net Income (Loss) per Share |
13. Net Income (Loss) per Share We compute basic net income (loss) per share using the weighted average number of shares of common stock outstanding plus the number of common stock equivalents for DSUs during the period. We compute diluted net income (loss) per share using the weighted average number of shares of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods where losses are reported, the weighted average number of shares of common stock outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. Dilutive potential common shares consist of the incremental common shares issuable upon the exercise of outstanding stock options. Dilutive potential securities are excluded from the computation of earnings per share if their effect is antidilutive. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method. The computation of basic and diluted net income (loss) per share attributable to common stockholders is as follows:
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Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Presentation and Consolidation |
Principles of Presentation and Consolidation The condensed consolidated financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2020. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying condensed consolidated financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position at March 31, 2021 and the results of our operations and cash flows for the periods presented. We derived the December 31, 2020 condensed consolidated balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP. As QRHC, Quest, LDI, Youchange, QVC, QV One, and QSS each operate as environmental-based service companies, we did not deem segment reporting necessary. All intercompany accounts and transactions have been eliminated in consolidation. Interim results are subject to seasonal variations, and the results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the full year. |
Recent Accounting Pronouncements |
Recent Accounting Pronouncements Adopted On January 1, 2021, we adopted Accounting Standards Update (“ASU”) 2019-12, Income Taxes – (Topic 740), which simplifies the accounting for income taxes by removing certain exceptions and amending guidance to improve consistent application of accounting over income taxes. The adoption of the standard did not have a material effect on our consolidated financial statements. In March 2020, the Financial Accounting Standards Board (the “FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides operational guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (“LIBOR”). The amendments are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The expedients and exceptions provided by the amendments generally do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. As further discussed in Note 7, our ABL facility provides procedures for determining a replacement or alternative rate in the event that LIBOR is unavailable. As such, we do not expect the transition away from LIBOR to have a material impact on our consolidated financial statements. Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which provides guidance on measuring credit losses on financial instruments. The amended guidance replaces current incurred loss impairment methodology of recognizing credit losses when a loss is probable with a methodology that reflects expected credit losses and requires a broader range of reasonable and supportable information to assess credit loss estimates. ASU 2016-13 is effective for us on January 1, 2023. We are assessing the provisions of this amended guidance; however, the adoption of the standard is not expected to have a material effect on our consolidated financial statements. There have been no other recent accounting pronouncements or changes in accounting pronouncements that have been issued but not yet adopted that are of significance, or potential significance, to us. |
Acquisition (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation Amount of Assets Acquired and Liabilities Assumed |
The following table sets forth the purchase price allocation amount of assets acquired and liabilities assumed as of the acquisition date:
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Schedule of Unaudited Pro Forma Information |
The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the operating results or financial position that would have occurred if the Acquisition had been effected on the dates previously set forth, nor is it indicative of the future operating results or financial position in combination.
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Property and Equipment, Net, and Other Assets (Tables) |
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Components Property and Equipment, Net, and Other Assets |
At March 31, 2021 and December 31, 2020, property and equipment, net, and other assets consisted of the following:
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets |
The components of goodwill and other intangible assets were as follows:
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Schedule of Indefinite-Lived Intangible Assets |
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Current Liabilities (Tables) |
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Components of Accounts Payable and Accrued Liabilities |
The components of Accounts payable and accrued liabilities were as follows:
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Components of Other Current Liabilities |
The components of Other current liabilities were as follows:
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Notes Payable and Other Long-Term Liabilities, Net (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Obligations |
Our debt obligations are as follows:
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Schedule of Changes in Debt Issuance Costs | The table below summarizes changes in debt issuance costs.
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Schedule of Other Long-Term Liabilities, Net |
Other long-term liabilities, net
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Leases (Tables) |
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Future Minimum Lease Payments Required Under Office Leases |
The future minimum lease payments required under our office leases as of March 31, 2021 are as follows:
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Summary of Lease Related Assets and Liabilities Recorded on Balance Sheet |
The table below presents the lease related assets and liabilities recorded on the balance sheet. Right-of-use assets and related liabilities related to finance leases at March 31, 2021 are de minimis.
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Revenue (Tables) |
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Revenue From Contract With Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Revenue Disaggregated by Source | The following table presents our revenue disaggregated by source.
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Stockholders' Equity (Tables) |
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Summary of Warrant Activity |
The following table summarizes the warrants issued and outstanding as of March 31, 2021:
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Summary of Stock Option Activity | The following table summarizes the stock option activity for the three months ended March 31, 2021
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Summary of Warrant Activity |
Warrant activity for the three months ended March 31, 2021 was as follows:
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Net Income (Loss) per Share (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Net Income (Loss) per Share Attributable to Common Stockholders |
The computation of basic and diluted net income (loss) per share attributable to common stockholders is as follows:
|
The Company and Description of Business - Additional Information (Detail) |
Oct. 19, 2020 |
---|---|
Green Remedies Waste and Recycling, Inc [Member] | |
Description Of Business [Line Items] | |
Business acquisition, effective date | Oct. 19, 2020 |
Acquisition - Additional Information (Detail) - Green Remedies [Member] - USD ($) |
3 Months Ended | |
---|---|---|
Oct. 19, 2020 |
Mar. 31, 2021 |
|
Business Acquisition [Line Items] | ||
Total purchase price | $ 16,100,000 | |
Earn out estimate future performance period | 3 years | |
Earn-out liability | $ 440,000 | |
Asset Purchase Agreement [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Earn-out payments | 2,250,000 | |
Deferred Seller Consideration | Cash or Shares of Common Stock [Member] | ||
Business Acquisition [Line Items] | ||
Business combination, consideration transferred, liabilities incurred | $ 2,684,250 |
Acquisition - Schedule of Purchase Price Allocation Amount of Assets Acquired and Liabilities Assumed (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
Oct. 19, 2020 |
---|---|---|---|
Purchase price allocation: | |||
Goodwill | $ 66,310,385 | $ 66,310,385 | |
Green Remedies [Member] | |||
Purchase price allocation: | |||
Accounts receivable, net | $ 1,331,190 | ||
Machinery and equipment | 1,270,705 | ||
Intangible assets | 5,890,000 | ||
Goodwill | 8,101,895 | ||
Current liabilities | (527,907) | ||
Assets acquired and liabilities assumed, net | $ 16,065,883 |
Acquisition - Schedule of Unaudited Pro Forma Information (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
$ / shares
| |
Business Combinations [Abstract] | |
Revenue | $ 28,211,053 |
Net loss | $ (329,717) |
Loss per share - basic and diluted | $ / shares | $ (0.02) |
Property and Equipment, Net, and Other Assets - Components of Property and Equipment, Net, and Other Assets (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Property And Equipment Net And Other Assets [Abstract] | ||
Property and equipment, net of accumulated depreciation of $2,305,334 and $2,195,198 as of March 31, 2021 and December 31, 2020, respectively | $ 1,992,756 | $ 1,987,006 |
Right-of-use operating lease asset | 953,852 | 1,103,761 |
Security deposits and other assets | 294,149 | 293,288 |
Property and equipment, net, and other assets | $ 3,240,757 | $ 3,384,055 |
Property and Equipment, Net, and Other Assets - Components of Property and Equipment, Net, and Other Assets (Parenthetical) (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Property And Equipment Net And Other Assets [Abstract] | ||
Accumulated depreciation, Property and equipment | $ 2,305,334 | $ 2,195,198 |
Property and Equipment, Net, and Other Assets - Additional Information (Detail) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Feb. 20, 2018 |
|
Property And Equipment Net And Other Assets [Line Items] | ||||
Depreciation | $ 110,136 | $ 50,220 | ||
Asset Purchase Agreement [Member] | Earth Media Partners, LLC [Member] | ||||
Property And Equipment Net And Other Assets [Line Items] | ||||
Percentage of ownership interest | 19.00% | |||
Ownership interest amount recorded as investment | $ 246,585 | |||
Accrued earn-out amount | 273,165 | $ 259,017 | ||
Asset Purchase Agreement [Member] | Earth Media Partners, LLC [Member] | Wholly Owned Subsidiary and Earth911, Inc. [Member] | Disposal Group, Not Discontinued Operations [Member] | ||||
Property And Equipment Net And Other Assets [Line Items] | ||||
Future earn-out amount | $ 350,000 | |||
Service [Member] | ||||
Property And Equipment Net And Other Assets [Line Items] | ||||
Depreciation reflected in cost of revenue | $ 68,376 | $ 13,818 |
Goodwill and Other Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Intangible Assets Net Including Goodwill [Abstract] | ||
Goodwill, Carrying Amount | $ 66,310,385 | $ 66,310,385 |
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization of intangibles | $ 365,524 | $ 297,351 |
Indefinite-lived intangible assets other than goodwill | 0 | |
Goodwill not deductible for tax purposes | 58,200,000 | |
Goodwill added for asset acquisition | 8,100,000 | |
Impairment of goodwill | $ 0 |
Current Liabilities - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Accounts payable | $ 17,107,950 | $ 12,511,678 |
Accrued taxes | 887,682 | 837,443 |
Employee compensation | 1,421,228 | 1,003,365 |
Operating lease liability - current portion | 672,565 | 668,019 |
Other | 214,024 | 226,334 |
Accounts payable and accrued liabilities | $ 20,303,449 | $ 15,246,839 |
Current Liabilities - Components of Other Current Liabilities (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Other Liabilities Current [Abstract] | ||
Deferred seller consideration, current | $ 1,342,125 | $ 1,342,125 |
Deferred revenue | 241,495 | 50,454 |
Other current liabilities | $ 1,583,620 | $ 1,392,579 |
Notes Payable and Other Long-term Liabilities, Net - Schedule of Debt Obligations (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Debt Instrument [Line Items] | ||
Total notes payable | $ 17,672,917 | $ 18,483,583 |
Less: Current portion of long-term debt | (624,383) | (624,383) |
Less: Unamortized debt issuance costs | (1,581,811) | (1,670,529) |
Less: Unamortized OID | (468,631) | (494,343) |
Less: Unamortized OID warrant | (697,792) | (745,703) |
Notes payable, net | $ 14,300,300 | 14,948,625 |
Monroe Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 9.75% | |
Total notes payable | $ 11,471,250 | 11,500,000 |
Green Remedies Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.00% | |
Total notes payable | $ 2,577,457 | 2,684,250 |
BBVA ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.00% | |
Total notes payable | $ 3,624,210 | $ 4,299,333 |
Notes Payable and Other Long-term Liabilities, Net - Schedule of Debt Obligations (Parenthetical) (Detail) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Oct. 19, 2020 |
|
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.00% | |
Green Remedies Promissory Note [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.00% | |
Discounted cash flow rate | 13.00% | |
Minimum [Member] | Monroe Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 7.50% | |
Minimum [Member] | BBVA ABL Facility [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.75% | |
Maximum [Member] | Monroe Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 10.50% | |
Maximum [Member] | BBVA ABL Facility [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 1.25% |
Notes Payable and Other Long-term Liabilities, Net - Schedule of Changes in Debt Issuance Costs (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Debt Disclosure [Abstract] | ||
Beginning balance | $ 1,670,529 | |
Less: Amortization expense | (88,718) | $ (23,475) |
Debt issuance costs, net of accumulated amortization | $ 1,581,811 |
Notes Payable and Other Long-term Liabilities, Net - Schedule of Other Long-Term Liabilities, Net (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Disclosure [Abstract] | ||
Deferred seller consideration, net | $ 1,035,309 | $ 986,028 |
Deferred consideration - earn-out | 440,000 | 440,000 |
Operating lease liability | 373,706 | 543,564 |
Other | 4,167 | 4,167 |
Other long-term liabilities, net | $ 1,853,182 | $ 1,973,759 |
Leases - Future Minimum Lease Payments Required Under Office Lease (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Operating Lease Liabilities Payments Due [Abstract] | ||
2021 | $ 521,100 | |
2022 | 528,750 | |
2023 | 24,513 | |
Total lease payments | 1,074,363 | |
Less: Interest | (28,092) | |
Present value of lease liabilities | $ 1,046,271 | $ 1,211,583 |
Leases - Summary of Lease Related Assets and Liabilities Recorded on Balance Sheet (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets And Liabilities Lessee [Abstract] | ||
Right-of-use operating lease asset | $ 953,852 | $ 1,103,761 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net, and other assets | Property and equipment, net, and other assets |
Operating lease liability - current portion | $ 672,565 | $ 668,019 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities |
Operating lease liability | $ 373,706 | $ 543,564 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities, net | Other long-term liabilities, net |
Total operating lease liabilities | $ 1,046,271 | $ 1,211,583 |
Revenue - Additional Information (Detail) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021
USD ($)
Customer
|
Mar. 31, 2020
USD ($)
Customer
|
Dec. 31, 2020
USD ($)
|
|
Revenue Recognition [Line Items] | |||
Number of customer | Customer | 2 | 3 | |
Percentage of revenue | 46.90% | 54.00% | |
Deferred contract costs | $ 50,000 | $ 100,000 | |
Deferred revenue | 241,495 | $ 50,454 | |
Selling, General and Administrative Expense [Member] | |||
Revenue Recognition [Line Items] | |||
Amortized deferred contract costs | $ 50,000 | $ 56,250 |
Revenue - Summary of Revenue Disaggregated by Source (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 35,101,991 | $ 25,331,814 |
Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 32,704,583 | 22,755,451 |
Product Sales and Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 2,397,408 | $ 2,576,363 |
Income Taxes - Additional Information (Detail) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Income Tax [Line Items] | |||
Income tax expense (benefit) | $ 61,833 | $ (52,732) | |
Federal corporate income tax rate | 27.00% | ||
Valuation allowance | $ 12,251,000 | $ 12,533,000 | |
Federal income tax net operating loss carry forward | $ 12,700,000 | $ 14,500,000 | |
Net operating loss carry forwards expiration beginning year | 2032 | ||
Net operating loss carry forwards expiration ending year | 2037 | ||
State [Member] | |||
Income Tax [Line Items] | |||
Operating loss carryforwards | $ 0 | $ 0 |
Stockholders' Equity - Additional Information (Detail) - $ / shares |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Equity [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 18,689,807 | 18,413,419 |
Common stock, shares outstanding | 18,689,807 | 18,413,419 |
Stockholders' Equity - Additional Information - Employee Stock Purchase Plan (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Equity [Abstract] | ||
Employee stock purchase plan expense | $ 4,224 | $ 6,667 |
Stockholders' Equity - Summary of Warrants Issued and Outstanding (Detail) - Exercisable Warrants [Member] - Warrants One [Member] |
3 Months Ended |
---|---|
Mar. 31, 2021
$ / shares
shares
| |
Class Of Warrant Or Right [Line Items] | |
Date of Issuance | Oct. 19, 2020 |
Date of Expiration | Mar. 19, 2028 |
Price per warrant | $ / shares | $ 1.50 |
Shares of Common Stock | shares | 500,000 |
Stockholders' Equity - Additional Information - Stock Options (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Equity [Abstract] | ||
Stock options expense | $ 216,958 | $ 294,661 |
Stockholders' Equity - Additional Information - Deferred Stock Units (Detail) - Deferred Stock Units [Member] - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
Sep. 01, 2019 |
|
Schedule Of Stockholders Equity [Line Items] | |||
Number of stock unit received | 1 | ||
Deferred stock units | 2,845 | ||
Compensation expense related to grants | $ 79,768 | ||
DSUs outstanding | 89,409 | 73,231 | |
Director [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Compensation expense related to grants | $ 8,661 | ||
Executive Employees [Member] | |||
Schedule Of Stockholders Equity [Line Items] | |||
Deferred stock units | 13,333 |