mchx-10q_20220630.htm
false 2022 Q2 0001224133 --12-31 1 1 1 1 1 1 1 1 http://fasb.org/us-gaap/2022#ServiceMember http://fasb.org/us-gaap/2022#ServiceMember http://fasb.org/us-gaap/2022#ServiceMember http://fasb.org/us-gaap/2022#ServiceMember 0.00 0.00 0.00 0.00 P4Y P4Y 0.0064 0.0241 0.50 0.51 P4Y P6Y3M P4Y P6Y3M 0.0068 0.0335 0.0116 0.0335 0.57 0.61 0.57 0.61 P6Y5M15D P7Y1M2D 0001224133 2022-01-01 2022-06-30 xbrli:shares 0001224133 us-gaap:CommonClassAMember 2022-08-08 0001224133 us-gaap:CommonClassBMember 2022-08-08 iso4217:USD 0001224133 2021-12-31 0001224133 2022-06-30 0001224133 us-gaap:CommonClassAMember 2021-12-31 0001224133 us-gaap:CommonClassAMember 2022-06-30 0001224133 us-gaap:CommonClassBMember 2021-12-31 0001224133 us-gaap:CommonClassBMember 2022-06-30 iso4217:USD xbrli:shares 0001224133 2021-01-01 2021-06-30 0001224133 2021-04-01 2021-06-30 0001224133 2022-04-01 2022-06-30 0001224133 us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001224133 us-gaap:CommonClassAMember 2022-01-01 2022-06-30 0001224133 us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001224133 us-gaap:CommonClassAMember 2022-04-01 2022-06-30 0001224133 us-gaap:CommonClassBMember 2021-01-01 2021-06-30 0001224133 us-gaap:CommonClassBMember 2022-01-01 2022-06-30 0001224133 us-gaap:CommonClassBMember 2021-04-01 2021-06-30 0001224133 us-gaap:CommonClassBMember 2022-04-01 2022-06-30 0001224133 us-gaap:CostOfSalesMember 2021-01-01 2021-06-30 0001224133 us-gaap:CostOfSalesMember 2022-01-01 2022-06-30 0001224133 us-gaap:CostOfSalesMember 2021-04-01 2021-06-30 0001224133 us-gaap:CostOfSalesMember 2022-04-01 2022-06-30 0001224133 us-gaap:SellingAndMarketingExpenseMember 2021-01-01 2021-06-30 0001224133 us-gaap:SellingAndMarketingExpenseMember 2022-01-01 2022-06-30 0001224133 us-gaap:SellingAndMarketingExpenseMember 2021-04-01 2021-06-30 0001224133 us-gaap:SellingAndMarketingExpenseMember 2022-04-01 2022-06-30 0001224133 us-gaap:GeneralAndAdministrativeExpenseMember 2021-01-01 2021-06-30 0001224133 us-gaap:GeneralAndAdministrativeExpenseMember 2021-04-01 2021-06-30 0001224133 mchx:ProductDevelopmentMember 2021-01-01 2021-06-30 0001224133 mchx:ProductDevelopmentMember 2022-01-01 2022-06-30 0001224133 mchx:ProductDevelopmentMember 2021-04-01 2021-06-30 0001224133 mchx:ProductDevelopmentMember 2022-04-01 2022-06-30 0001224133 us-gaap:GeneralAndAdministrativeExpenseMember 2022-01-01 2022-06-30 0001224133 us-gaap:GeneralAndAdministrativeExpenseMember 2022-04-01 2022-06-30 0001224133 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2020-12-31 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2020-12-31 0001224133 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001224133 us-gaap:RetainedEarningsMember 2020-12-31 0001224133 2020-12-31 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001224133 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001224133 2021-01-01 2021-03-31 0001224133 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001224133 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-03-31 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-03-31 0001224133 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001224133 us-gaap:RetainedEarningsMember 2021-03-31 0001224133 2021-03-31 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001224133 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001224133 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001224133 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-06-30 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-06-30 0001224133 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001224133 us-gaap:RetainedEarningsMember 2021-06-30 0001224133 2021-06-30 0001224133 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-12-31 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-12-31 0001224133 us-gaap:TreasuryStockMember 2021-12-31 0001224133 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001224133 us-gaap:RetainedEarningsMember 2021-12-31 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001224133 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001224133 2022-01-01 2022-03-31 0001224133 us-gaap:TreasuryStockMember 2022-01-01 2022-03-31 0001224133 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001224133 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2022-03-31 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2022-03-31 0001224133 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001224133 us-gaap:RetainedEarningsMember 2022-03-31 0001224133 2022-03-31 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2022-04-01 2022-06-30 0001224133 us-gaap:AdditionalPaidInCapitalMember 2022-04-01 2022-06-30 0001224133 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0001224133 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2022-06-30 0001224133 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2022-06-30 0001224133 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001224133 us-gaap:RetainedEarningsMember 2022-06-30 0001224133 2022-07-01 srt:MaximumMember 2022-06-30 0001224133 us-gaap:CustomerRelationshipsMember 2022-01-01 2022-06-30 0001224133 srt:MaximumMember us-gaap:CustomerContractsMember 2022-01-01 2022-06-30 0001224133 us-gaap:CustomerContractsMember 2021-12-31 0001224133 us-gaap:CustomerContractsMember 2022-06-30 0001224133 us-gaap:CustomerContractsMember 2021-01-01 2021-12-31 0001224133 us-gaap:CustomerContractsMember 2022-01-01 2022-06-30 mchx:Segment xbrli:pure 0001224133 country:US us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2021-01-01 2021-06-30 0001224133 country:US us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2022-01-01 2022-06-30 0001224133 country:US us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2021-04-01 2021-06-30 0001224133 country:US us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2022-04-01 2022-06-30 0001224133 country:CA us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2021-01-01 2021-06-30 0001224133 country:CA us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2022-01-01 2022-06-30 0001224133 country:CA us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2021-04-01 2021-06-30 0001224133 country:CA us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2022-04-01 2022-06-30 0001224133 mchx:OtherCountriesMember us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2021-01-01 2021-06-30 0001224133 mchx:OtherCountriesMember us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2022-01-01 2022-06-30 0001224133 mchx:OtherCountriesMember us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2021-04-01 2021-06-30 0001224133 mchx:OtherCountriesMember us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2022-04-01 2022-06-30 0001224133 us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2021-01-01 2021-06-30 0001224133 us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2022-01-01 2022-06-30 0001224133 us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2021-04-01 2021-06-30 0001224133 us-gaap:GeographicConcentrationRiskMember us-gaap:RevenueFromContractWithCustomerMember 2022-04-01 2022-06-30 mchx:Entity 0001224133 us-gaap:CustomerConcentrationRiskMember mchx:CustomerAMember us-gaap:RevenueFromContractWithCustomerMember 2021-01-01 2021-12-31 0001224133 us-gaap:CustomerConcentrationRiskMember mchx:CustomerAMember us-gaap:RevenueFromContractWithCustomerMember 2022-01-01 2022-06-30 0001224133 us-gaap:FairValueInputsLevel1Member us-gaap:CashMember 2021-12-31 0001224133 us-gaap:FairValueInputsLevel1Member us-gaap:CashMember 2022-06-30 0001224133 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember 2021-12-31 0001224133 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember 2022-06-30 0001224133 us-gaap:FairValueInputsLevel1Member 2021-12-31 0001224133 us-gaap:FairValueInputsLevel1Member 2022-06-30 0001224133 us-gaap:CommonClassBMember 2014-11-30 0001224133 mchx:ServiceCostsMember 2021-01-01 2021-06-30 0001224133 mchx:ServiceCostsMember 2022-01-01 2022-06-30 0001224133 mchx:ServiceCostsMember 2021-04-01 2021-06-30 0001224133 mchx:ServiceCostsMember 2022-04-01 2022-06-30 0001224133 mchx:TimeVestedStockOptionsMember 2021-04-01 2021-06-30 0001224133 mchx:TimeVestedStockOptionsMember 2022-04-01 2022-06-30 0001224133 mchx:TimeVestedStockOptionsMember srt:MinimumMember 2021-01-01 2021-06-30 0001224133 mchx:TimeVestedStockOptionsMember srt:MaximumMember 2021-01-01 2021-06-30 0001224133 mchx:TimeVestedStockOptionsMember srt:MinimumMember 2022-01-01 2022-06-30 0001224133 mchx:TimeVestedStockOptionsMember srt:MaximumMember 2022-01-01 2022-06-30 0001224133 mchx:TimeVestedStockOptionsMember 2021-01-01 2021-06-30 0001224133 mchx:TimeVestedStockOptionsMember 2022-01-01 2022-06-30 0001224133 2021-01-01 2021-12-31 0001224133 us-gaap:RestrictedStockMember 2021-12-31 0001224133 us-gaap:RestrictedStockMember 2022-01-01 2022-06-30 0001224133 us-gaap:RestrictedStockMember 2022-06-30 0001224133 us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001224133 us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2022-01-01 2022-06-30 0001224133 us-gaap:RestrictedStockMember us-gaap:CommonClassBMember 2021-01-01 2021-06-30 0001224133 us-gaap:RestrictedStockMember us-gaap:CommonClassBMember 2022-01-01 2022-06-30 0001224133 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001224133 us-gaap:RestrictedStockUnitsRSUMember 2022-01-01 2022-06-30 0001224133 us-gaap:ComputerEquipmentMember 2021-12-31 0001224133 us-gaap:ComputerEquipmentMember 2022-06-30 0001224133 us-gaap:SoftwareDevelopmentMember 2021-12-31 0001224133 us-gaap:SoftwareDevelopmentMember 2022-06-30 0001224133 us-gaap:FurnitureAndFixturesMember 2021-12-31 0001224133 us-gaap:FurnitureAndFixturesMember 2022-06-30 0001224133 us-gaap:LeaseholdImprovementsMember 2021-12-31 0001224133 us-gaap:LeaseholdImprovementsMember 2022-06-30 0001224133 us-gaap:ConstructionInProgressMember 2021-12-31 0001224133 us-gaap:ConstructionInProgressMember 2022-06-30 0001224133 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2022-01-01 2022-06-30 0001224133 2019-04-01 2019-06-30 0001224133 2018-01-01 2018-03-31 0001224133 2018-04-30 0001224133 2019-04-01 2019-04-30 0001224133 mchx:MississaugaCanadaMember 2022-01-01 2022-06-30 0001224133 mchx:MississaugaCanadaMember 2022-06-30 0001224133 mchx:WichitaKansasMember 2022-01-01 2022-06-30 0001224133 us-gaap:CustomerRelationshipsMember 2021-12-31 0001224133 us-gaap:TechnologyBasedIntangibleAssetsMember 2021-12-31 0001224133 us-gaap:NoncompeteAgreementsMember 2021-12-31 0001224133 us-gaap:TradeNamesMember 2021-12-31 0001224133 us-gaap:CustomerRelationshipsMember 2022-06-30 0001224133 us-gaap:TechnologyBasedIntangibleAssetsMember 2022-06-30 0001224133 us-gaap:NoncompeteAgreementsMember 2022-06-30 0001224133 us-gaap:TradeNamesMember 2022-06-30 0001224133 us-gaap:TechnologyBasedIntangibleAssetsMember srt:MinimumMember 2022-01-01 2022-06-30 0001224133 us-gaap:TechnologyBasedIntangibleAssetsMember srt:MaximumMember 2022-01-01 2022-06-30 0001224133 us-gaap:TradeNamesMember 2022-01-01 2022-06-30 0001224133 us-gaap:NoncompeteAgreementsMember srt:MinimumMember 2022-01-01 2022-06-30 0001224133 us-gaap:NoncompeteAgreementsMember srt:MaximumMember 2022-01-01 2022-06-30 0001224133 mchx:AdministrativeSupportServicesAgreementMember 2022-04-01 2022-06-30 0001224133 mchx:AdministrativeSupportServicesAgreementMember 2021-04-01 2021-06-30 0001224133 mchx:AdministrativeSupportServicesAgreementMember 2022-01-01 2022-06-30 0001224133 mchx:AdministrativeSupportServicesAgreementMember 2021-01-01 2021-06-30 0001224133 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember mchx:AdministrativeSupportServicesAgreementMember 2022-06-30

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                      to                     .

 

Commission File Number 000-50658

 

Marchex, Inc.

(Exact name of Registrant as specified in its charter)

 

 

Delaware

35-2194038

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

520 Pike Street, Suite 2000

 

Seattle, WA

(Address of Principal Executive Offices)

98101

(Zip Code)

Registrant’s telephone number, including area code: (206331-3300

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class B Common Stock

 

MCHX

 

The Nasdaq Global Select Market

As of August 8, 2022, the registrant had 4,660,927 shares of Class A common stock, $.01 par value per share, and 37,672,686 shares of Class B common stock, $.01 par value per share, outstanding, respectively.

 

 

 

 


 

 

Marchex, Inc.

Form 10-Q

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

1

Item 1.

Condensed Consolidated Financial Statements (unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations

2

 

Condensed Consolidated Statements of Stockholders’ Equity

3

 

Condensed Consolidated Statements of Cash Flows

4

 

Notes to Condensed Consolidated Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

16

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

28

Item 4.

Controls and Procedures

28

 

 

 

PART II.

OTHER INFORMATION

29

Item 1.

Legal Proceedings

29

Item 1A.

Risk Factors

29

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

42

Item 4.

Mine Safety Disclosures

42

Item 6.

Exhibits

43

Signature

44

 

 


 

 

PART I—FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

MARCHEX, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

December 31,

 

 

June 30,

 

 

 

2021

 

 

2022

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

27,086

 

 

$

24,818

 

Accounts receivable, net

 

 

8,021

 

 

 

8,336

 

Prepaid expenses and other current assets

 

 

2,407

 

 

 

2,378

 

Total current assets

 

 

37,514

 

 

 

35,532

 

Property and equipment, net

 

 

2,817

 

 

 

3,766

 

Right-of-use lease asset

 

 

2,238

 

 

 

1,499

 

Other assets, net

 

 

986

 

 

 

1,002

 

Goodwill

 

 

17,558

 

 

 

17,558

 

Intangible assets from acquisitions, net

 

 

4,714

 

 

 

3,652

 

Total assets

 

$

65,827

 

 

$

63,009

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,363

 

 

$

1,341

 

Accrued benefits and payroll

 

 

3,631

 

 

 

4,223

 

Other accrued expenses and current liabilities

 

 

3,869

 

 

 

3,514

 

Deferred revenue and deposits

 

 

2,016

 

 

 

1,489

 

Lease liability, current

 

 

1,794

 

 

 

1,920

 

Total current liabilities

 

 

12,673

 

 

 

12,487

 

Deferred tax liabilities

 

 

186

 

 

 

221

 

Lease liability non-current

 

 

1,466

 

 

 

480

 

Total liabilities

 

 

14,325

 

 

 

13,188

 

Commitments and contingencies - See Note 10

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, Authorized 137,500 shares

 

 

 

 

 

 

 

 

Class A: 12,500 shares authorized; 4,661 shares issued and

outstanding at December 31, 2021 and June 30, 2022

 

 

49

 

 

 

49

 

Class B: 125,000 shares authorized; 37,391 shares issued

and outstanding at December 31, 2021, including 965 shares

of restricted stock; and 37,658 shares issued and outstanding

at June 30, 2022, including 984 shares of restricted stock

 

 

374

 

 

 

377

 

Additional paid-in capital

 

 

354,155

 

 

 

355,584

 

Accumulated deficit

 

 

(303,076

)

 

 

(306,189

)

Total stockholders’ equity

 

 

51,502

 

 

 

49,821

 

Total liabilities and stockholders’ equity

 

$

65,827

 

 

$

63,009

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

 

1


 

 

MARCHEX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

 

Six Months Ended

June 30,

 

 

Three Months Ended

June 30,

 

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

Revenue

 

$

26,986

 

 

$

26,681

 

 

$

14,006

 

 

$

13,510

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service costs(1)(3)

 

 

10,882

 

 

 

9,799

 

 

 

5,460

 

 

 

4,864

 

Sales and marketing(1)(3)

 

 

6,339

 

 

 

6,784

 

 

 

2,702

 

 

 

3,619

 

Product development(1)(3)

 

 

10,111

 

 

 

6,991

 

 

 

4,789

 

 

 

3,531

 

General and administrative(1)(3)

 

 

5,085

 

 

 

5,046

 

 

 

2,465

 

 

 

2,440

 

Amortization of intangible assets from acquisitions(2)

 

 

2,559

 

 

 

1,062

 

 

 

1,378

 

 

 

531

 

Acquisition and disposition-related costs

 

 

121

 

 

 

27

 

 

 

76

 

 

 

22

 

Total operating expenses

 

 

35,097

 

 

 

29,709

 

 

 

16,870

 

 

 

15,007

 

Loss from operations

 

 

(8,111

)

 

 

(3,028

)

 

 

(2,864

)

 

 

(1,497

)

Interest income and other, net

 

 

2,474

 

 

 

(4

)

 

 

2,486

 

 

 

17

 

Income (loss) before provision for income taxes

 

 

(5,637

)

 

 

(3,032

)

 

 

(378

)

 

 

(1,480

)

Income tax expense (benefit)

 

 

31

 

 

 

81

 

 

 

(45

)

 

 

51

 

Net income (loss) applicable to common stockholders

 

$

(5,668

)

 

$

(3,113

)

 

$

(333

)

 

$

(1,531

)

Basic and diluted net income (loss) per Class A and Class B share

   applicable to common stockholders

 

$

(0.13

)

 

$

(0.07

)

 

$

(0.01

)

 

$

(0.03

)

Shares used to calculate basic net income (loss) per share

   applicable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

4,661

 

 

 

4,661

 

 

 

4,661

 

 

 

4,661

 

Class B

 

 

39,167

 

 

 

38,670

 

 

 

39,171

 

 

 

38,696

 

Shares used to calculate diluted net income (loss) per share

   applicable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

4,661

 

 

 

4,661

 

 

 

4,661

 

 

 

4,661

 

Class B

 

 

43,828

 

 

 

43,331

 

 

 

43,832

 

 

 

43,357

 

(1) Excludes amortization of intangibles from acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Components of amortization of intangibles from acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service costs

 

$

1,275

 

 

 

234

 

 

$

652

 

 

 

117

 

Sales and marketing

 

 

1,172

 

 

 

828

 

 

 

642

 

 

 

414

 

General and administrative

 

 

112

 

 

 

 

 

 

84

 

 

 

 

Total

 

$

2,559

 

 

$

1,062

 

 

$

1,378

 

 

$

531

 

(3) Components of related party support services fee recovery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service costs

 

$

1,326

 

 

$

1,436

 

 

$

563

 

 

 

655

 

Sales and marketing

 

 

167

 

 

 

372

 

 

 

107

 

 

 

141

 

Product development

 

 

951

 

 

 

918

 

 

 

675

 

 

 

401

 

General and administrative

 

 

481

 

 

 

864

 

 

 

348

 

 

 

361

 

Total

 

$

2,925

 

 

$

3,590

 

 

$

1,693

 

 

$

1,558

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

 

2


 

 

MARCHEX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

(unaudited)

 

 

 

Class A

 

 

Class B

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Total

 

 

 

common stock

 

 

common stock

 

 

Treasury stock

 

 

paid-in

 

 

Accumulated

 

 

stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

deficit

 

 

equity

 

Balances at December 31, 2020

 

 

4,661

 

 

$

49

 

 

 

36,462

 

 

$

365

 

 

 

 

 

$

 

 

$

350,960

 

 

$

(298,686

)

 

$

52,688

 

Issuance of common stock upon exercise

   of options, issuance and vesting of

   restricted stock and under employee

   stock purchase plan, net

 

 

 

 

 

 

 

 

223

 

 

 

2

 

 

 

 

 

 

 

 

 

30

 

 

 

 

 

 

32

 

Stock compensation from options and

   restricted stock, net of forfeitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

744

 

 

 

 

 

 

744

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,332

)

 

 

(5,332

)

Balances at March 31, 2021

 

 

4,661

 

 

$

49

 

 

 

36,685

 

 

$

367

 

 

 

 

 

$

 

 

$

351,734

 

 

$

(304,018

)

 

$

48,132

 

Issuance of common stock upon exercise

   of options, issuance and vesting of

   restricted stock and under employee

   stock purchase plan, net

 

 

 

 

 

 

 

 

56

 

 

 

 

 

 

 

 

 

 

 

 

67

 

 

 

 

 

 

67

 

Stock compensation from options and

   restricted stock, net of forfeitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

655

 

 

 

 

 

 

655

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(333

)

 

 

(333

)

Balances at June 30, 2021

 

 

4,661

 

 

$

49

 

 

 

36,741

 

 

$

367

 

 

 

 

 

$

 

 

$

352,456

 

 

$

(304,351

)

 

$

48,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

Class B

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Total

 

 

 

common stock

 

 

common stock

 

 

Treasury stock

 

 

paid-in

 

 

Accumulated

 

 

stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

deficit

 

 

equity

 

Balances at December 31, 2021

 

 

4,661

 

 

$

49

 

 

 

37,391

 

 

$

374

 

 

 

(23

)

 

$

 

 

$

354,155

 

 

$

(303,076

)

 

 

51,502

 

Issuance of common stock upon exercise

   of options, issuance and vesting of

   restricted stock and under employee

   stock purchase plan, net

 

 

 

 

 

 

 

 

285

 

 

 

3

 

 

 

 

 

 

 

 

 

13

 

 

 

 

 

 

16

 

Retirements of restricted stock

 

 

 

 

 

 

 

 

(23

)

 

 

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation from options and

   restricted stock, net of forfeitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

695

 

 

 

 

 

 

695

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,582

)

 

 

(1,582

)

Balances at March 31, 2022

 

 

4,661

 

 

$

49

 

 

 

37,653

 

 

$

377

 

 

 

 

 

$

-

 

 

$

354,863

 

 

$

(304,658

)

 

 

50,631

 

Issuance of common stock upon exercise

   of options, issuance and vesting of

   restricted stock and under employee

   stock purchase plan, net

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

 

 

 

7

 

Stock compensation from options and

   restricted stock, net of forfeitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

714

 

 

 

 

 

 

714

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,531

)

 

 

(1,531

)

Balances at June 30, 2022

 

 

4,661

 

 

$

49

 

 

 

37,658

 

 

$

377

 

 

 

 

 

$

-

 

 

$

355,584

 

 

$

(306,189

)

 

 

49,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

3


 

MARCHEX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

June 30,

 

 

 

2021

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss applicable to common shareholders

 

$

(5,668

)

 

$

(3,113

)

Adjustments to reconcile net loss to net cash used by operating activities:

 

 

 

 

 

 

 

 

Amortization and depreciation

 

 

3,362

 

 

 

1,920

 

Allowance for doubtful accounts and advertiser credits

 

 

42

 

 

 

370

 

Stock-based compensation

 

 

1,399

 

 

 

1,409

 

Deferred income taxes

 

 

23

 

 

 

70

 

Change in certain assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(2,449

)

 

 

(684

)

Prepaid expenses, other current assets and other assets

 

 

(579

)

 

 

(200

)

Accounts payable

 

 

(105