Note 12 - Divestiture |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Notes to Financial Statements | |
| Mergers, Acquisitions and Dispositions Disclosures [Text Block] |
12. Divestiture
Winopoly
On January 31, 2026, Inbox Pal, LLC, an indirect subsidiary of the Company and InsurCo, LLC (“InsurCo”) entered into a membership interest purchase agreement pursuant to which it conveyed 100% of the membership interests of Winopoly, LLC. ("Winopoly") to InsurCo. Winopoly was a call center-supported performance marketplace that provided live-call-based performance campaigns to help clients increase engagement through the Company's Call Solutions business. The deemed fair value of the consideration received was approximately consisted of a $3,000 secured promissory note (the “Note”) along with forgiveness of the Company related to the profit share obligation. The Note bears interest at 12.96% per annum and is payable in monthly installments of connection with the transaction, the Company conveyed dissimilar assets relating to the Call Solutions business, excluding net working capital. In addition, the Company terminated all remaining employees related to Winopoly prior to the transaction. InsurCo’s members are former employees of the Company. The conveyance did not meet the threshold of a discontinued operation under ASC 205-20.
The Company determined the conveyance of Winopoly was a business under ASC 805, Business Combinations. As a result, in accordance with ASC 810, Consolidation, the Company recognized a gain the conveyance of Winopoly, which is reflected in general and administrative expenses. Going forward, the Company’s continuing relationship with InsurCo will be limited to the payment of the Note. As of March 31, 2026, the Note has a principal balance of $969, reflected in prepaids and other current assets, and $1,962, reflected in other non-current assets. |