What changed in this filing

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Item 1. Financial Statements

2023-05-11 compared with 2023-02-14 · 111 added, 108 removed, 445 unchanged (33% of the section changed)

6 unchanged sentences

Restricted cash

Accounts receivable, less allowance for doubtful accounts of $ 166 and $ 123 as of December 31, 2022 and June 30, 2022, respectively

Accounts receivable, less allowance for doubtful accounts of $ 169 and $ 123 as of March 31, 2023 and June 30, 2022, respectively

Costs capitalized to obtain revenue contracts, net

22 unchanged sentences

60,000 shares;

32,131 and 31,930 shares as of December 31, 2022 and June 30, 2022, respectively

32,022 and 31,930 shares as of March 31, 2023 and June 30, 2022, respectively.

Additional paid-in capital

Treasury stock, at cost:

145 and 0 common shares as of March 31, 2023 and June 30, 2022, respectively.

Notes receivable from stockholders

8 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Professional services

9 unchanged sentences

Total operating expenses

Income (loss) from operations

Loss from operations

Interest income

Other income (expense), net

Other (expense) income, net

Income (Loss) before income tax provision

Income tax provision

Provision for income taxes

Per share information:

6 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Other comprehensive income (loss), net of taxes:

5 unchanged sentences

(in thousands)

Three Months Ended December 31, 2022

Additional Paid-in

Notes Receivable From

Accumulated Other Comprehensive

Total Stockholders'

Balances as of September 30, 2022

Interest on stockholder notes

Three Months Ended March 31, 2023

Treasury Stock

Notes Receivable

Comprehensive

Stockholders'

Balances as of December 31, 2022

Issuance of common stock upon exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Repurchase of common stock

Stock-based compensation

Foreign currency translation adjustments

Balances as of March 31, 2023

Three Months Ended March 31, 2022

Notes Receivable

Comprehensive

Stockholders'

Balances as of December 31, 2021

Three Months Ended December 31, 2021

Additional Paid-in

Notes Receivable From

Accumulated Other Comprehensive

Total Stockholders'

Balances as of September 30, 2021

Interest on stockholder notes

Issuance of common stock upon exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Stock-based compensation

Foreign currency translation adjustments

Balances as of December 31, 2021

Balances as of March 31, 2022

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended December 31, 2022

Additional Paid-in

Notes Receivable From

Accumulated Other Comprehensive

Total Stockholders'

Nine Months Ended March 31, 2023

Treasury Stock

Notes Receivable

Comprehensive

Stockholders'

Balances as of June 30, 2022

1 unchanged sentence

Issuance of common stock upon exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of common stock in connection

with employee stock purchase plan

Repurchase of common stock

Stock-based compensation

Foreign currency translation adjustments

Balances as of December 31, 2022

Six Months Ended December 31, 2021

Balances as of March 31, 2023

See accompanying notes to condensed consolidated financial statements.

EGAIN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (cont.)

(in thousands)

Nine Months Ended March 31, 2022

Additional Paid-in

Notes Receivable From

Accumulated Other Comprehensive

Accumulated Other

Comprehensive

Total Stockholders'

2 unchanged sentences

Issuance of common stock upon exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of common stock in connection

with employee stock purchase plan

Stock-based compensation

Foreign currency translation adjustments

Balances as of December 31, 2021

Balances as of March 31, 2022

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

Cash flows from operating activities:

25 unchanged sentences

Proceeds from employee stock purchase plan

Repurchases of common stock

Net cash provided by financing activities

13 unchanged sentences

Organization and Nature of Business

eGain automates customer engagement with an innovative knowledge hub, powered by conversational AI and analytics.

eGain Corporation (eGain, the Company, our, we or us) automates customer engagement with an innovative knowledge hub, powered by conversational artificial intelligence (AI) and analytics.

We sell mostly to large enterprises across financial services, telecommunications, retail, government, healthcare, and utilities seeking to better serve customers at scale while coping with content silos, process complexity, and regulatory compliance.

3 unchanged sentences

We also operate in the United Kingdom and India.

Our fiscal year ends on June 30.

The Company fiscal year ends on June 30.

References to fiscal year 2023 refer to fiscal year ending June 30, 2023.

Basis of Presentation

The accompanying condensed consolidated balance sheet as of December 31, 2022 and the condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the three and six months ended December 31, 2022 and 2021, are unaudited.

The accompanying condensed consolidated balance sheet as of March 31, 2023 and the condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the three and nine months ended March 31, 2023 and 2022, are unaudited.

The condensed consolidated balance sheet as of June 30, 2022 was derived from audited consolidated financial statements as of that date but does not include all the information and footnotes required by GAAP for complete financial statements.

80 unchanged sentences

customer and payment for that good or service by the customer is expected to be one year or less.

The Company assessed its revenue contracts in order to determine whether a significant financing component exists, and determined its contracts did not include a significant financing component for the periods ended December 31, 2022 and 2021.

Professional Services Revenue

Professional services revenue includes system implementation, consulting, training, and managed services.

The transaction price is allocated to various performance obligations based on their stand-alone selling prices.

The transaction price is allocated to various performance obligations based on their SSP.

Revenue allocated to each performance obligation is recognized at the earlier of satisfaction of discrete performance obligations, or as work is performed on a time and material basis.

17 unchanged sentences

Amortization of costs to obtain revenue contracts is included as a component of sales and marketing expenses in our condensed consolidated statements of operations.

During the three and six months ended December 31, 2022, we capitalized $ 218,000 and $ 409,000 of costs to obtain revenue contracts, respectively, and amortized $ 395,000 and $ 770,000 to sales and marketing expense, respectively.

During the three and six months ended December 31, 2021, we capitalized $ 769,000 and $ 1.4 million of costs to obtain revenue contracts, respectively, and amortized $ 376,000 and $ 732,000 to sales and marketing expense, respectively.

On our condensed consolidated balance sheets, capitalized costs to obtain revenue contracts, net, were $ 4.3 million and $ 4.6 million as of December 31, 2022 and June 30, 2022, respectively.

Short-term capitalized costs to obtain revenue contracts, were $ 1.4 million and $ 1.5 million as of December 31, 2022 and June 30, 2022, respectively.

Long-term capitalized costs to obtain revenue contracts, were $ 2.8 million and $ 3.1 million as of December 31, 2022 and June 30, 2022, respectively.

During the three and nine months ended March 31, 2023, we capitalized $ 6,000 and $ 415,000 of costs to obtain revenue contracts, respectively, and amortized $ 381,000 and $ 1.2 million to sales and marketing expense, respectively.

During the three and nine months ended March 31, 2022, we capitalized $ 604,000 and $ 2.0 million of costs to obtain revenue contracts, respectively, and amortized $ 392,000 and $ 1.1 million to sales and marketing expense, respectively.

On our condensed consolidated balance sheets, capitalized costs to obtain revenue contracts, net, were $ 3.9 million and $ 4.6 million as of March 31, 2023 and June 30, 2022, respectively.

Short-term capitalized costs to obtain revenue contracts, were $ 1.4 million and $ 1.5 million as of March 31, 2023 and June 30, 2022, respectively.

Long-term capitalized costs to obtain revenue contracts, were $ 2.6 million and $ 3.1 million as of March 31, 2023 and June 30, 2022, respectively.

Deferred Revenue

13 unchanged sentences

However, we incur operating expenses in the North America, combined Europe, Middle East, and Africa, and Asia Pacific regions.

The following table presents our income (loss) from operations among our three operating regions (in thousands):

The following table presents our loss from operations among our three operating regions (in thousands):

Three Months Ended

Six Months Ended

Income (loss) from operations:

Nine Months Ended

Loss from operations:

North America

Europe, Middle East, & Africa

Income (loss) from operations

Loss from operations

The following table presents our long-lived assets, corresponding to our geographic areas are as follows (in thousands):

5 unchanged sentences

Concentration of Credit Risk and Significant Customers

Our financial instruments that are exposed to concentrations of credit risk include cash and cash equivalents and accounts receivable.

Two customers, one of which is a partner, accounted for 19 % and 10 %, respectively, of total revenue during the three months ended December 31, 2022.

The same partner accounted for 21 % of total revenue during the six months ended December 31, 2022.

The same partner and a different customer, accounted for 23 % and 12 %, respectively, of total

revenue during the three months ended December 31, 2021 and 23 % and 12 %, respectively, for the six months ended December 31, 2021.

One customer accounted for more than 10% of our gross accounts receivable balance as of December 31, 2022.

Our financial instruments that are exposed to concentrations of credit risk include cash and cash equivalents, restricted cash, and accounts receivable.

One customer, who is also a partner, accounted for 17 % of total revenue during the three months ended March 31, 2023.

The same partner accounted for 20 % of total revenue during the nine months ended March 31, 2023.

The same partner and a different partner, accounted for 20 % and 10 %, respectively, of total revenue during the

three months ended March 31, 2022 and 22 % and 12 %, respectively, for the nine months ended March 31, 2022.

No customer accounted for more than 10% of our gross accounts receivable balance as of March 31, 2023.

Accounts Receivable and Allowance for Doubtful Accounts

11 unchanged sentences

Unbilled accounts receivables are recorded when revenue recognized on the contract exceeds billings, pursuant to contract provisions, and become billable upon certain criteria being met.

Unbilled accounts receivables, for which the Company has the unconditional right to consideration, totaled $ 676,000 and $ 770,000 as of December 31, 2022, and June 30, 2022, respectively, and are included in the accounts receivable balance on the accompanying condensed consolidated balance sheets.

Unbilled accounts receivables, for which the Company has the unconditional right to consideration, totaled $ 938,000 and $ 770,000 as of March 31, 2023 and June 30, 2022, respectively, and are included in the accounts receivable, less allowance for doubtful accounts balance on the accompanying condensed consolidated balance sheets.

Stock-Based Compensation

We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation .

Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period.

Stock-based compensation expense consists of expenses for stock options granted under our Amended and Restated 2005 Management Stock Option Plan, our Amended and Restated 2005 Stock Incentive Plan, and our 2017 Employee Stock Purchase Plan (ESPP).

6 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Stock-based compensation expense:

4 unchanged sentences

Total stock-based compensation expense

Total stock-based compensation includes expense related to non-employee awards of $ 38,000 and $ 82,000 during the three and six months ended December 31, 2022, respectively.

Total stock-based compensation includes expense related to non-employee awards of $ 75,000 and $ 130,000 during the three and six months ended December 31, 2021, respectively.

Total stock-based compensation includes expense related to the ESPP of $ 63,000 and $ 190,000 for the three and six months ended December 31, 2022, respectively.

Total stock-based compensation includes expense related to the ESPP of $ 93,000 and $ 225,000 for the three and six months ended December 31, 2021, respectively.

Total stock-based compensation includes expense related to non-employee awards of $ 31,000 and $ 113,000 during the three and nine months ended March 31, 2023, respectively.

Total stock-based compensation includes expense related to non-employee awards of $ 49,000 and $ 179,000 during the three and nine months ended March 31, 2022, respectively.

Total stock-based compensation includes expense related to the ESPP of $ 115,000 and $ 305,000 for the three and nine months ended March 31, 2023, respectively.

Total stock-based compensation includes expense related to the ESPP of $ 138,000 and $ 363,000 for the three and nine months ended March 31, 2022, respectively.

We utilize the Black-Scholes valuation model for estimating the fair value of the stock-based compensation of options granted.

All shares of our common stock issued pursuant to our stock option plans are only issued out of an authorized reserve of shares of common stock which were previously registered with the SEC on Registration Statements on Form S-8.

During the three months ended December 31, 2022 and 2021, we granted options to purchase 53,200 and 241,379 shares of common stock with a weighted-average fair value of $ 4.32 and $ 5.78 per share, respectively.

During the six months ended December 31, 2022 and 2021, we granted options to purchase 154,067 and 3,191,939 shares of common stock with a weighted-average fair value of $ 4.79 and $ 7.19 per share, respectively.

During the three months ended March 31, 2023 and 2022, we granted options to purchase 22,300 and 197,365 shares of common stock with a weighted-average fair value of $ 4.66 and $ 6.31 per share, respectively.

During the nine months ended March 31, 2023 and 2022, we granted options to purchase 176,367 and 3,390,004 shares of common stock with a weighted-average fair value of $ 4.77 and $ 7.14 per share, respectively.

We used the following assumptions:

Three Months Ended

Six Months Ended

Nine Months Ended

Expected volatility

6 unchanged sentences

Treasury Strips rate with maturities approximating the expected lives of the awards during the period, which approximate the rate in effect at the time of the grant.

On December 1, 2022, employees were granted the right to purchase an aggregate of 88,414 shares under the ESPP, and compensation expense related to those purchase rights for the three and six months ended December 31, 2022 was $ 41,000 .

On December 1, 2021, employees were granted the right to purchase an aggregate of 86,928 shares under the ESPP, and compensation expense related to those purchase rights for the three and six months ended December 31, 2021 was $ 47,000 .

As of December 31, 2022, there were 1,025,112 shares of common stock available for issuance under the ESPP.

As of March 31, 2023, there were 1,025,112 shares of common stock available for issuance under the ESPP.

We base our estimate of expected life of a stock option on the historical exercise behavior and cancellations of all past option grants made by the Company during the time period which its equity shares have been publicly traded, the contractual term of the option, the vesting period and the expected remaining term of the outstanding options.

1 unchanged sentence

Improvements to Employee Share-Based Accounting , we elected to continue to estimate forfeitures in the calculation of stock-based compensation expense.

As of December 31, 2022 there was approximately $ 7.5 million of total unrecognized compensation cost, net of expected forfeitures, related to unvested stock options, which is expected to be recognized over the weighted-average period of 1.4 years.

There were 121,936 and 41,309 options exercised during the three months ended December 31, 2022 and 2021 , respectively.

There were 129,161 and 197,479 options exercised during the six months ended December 31, 2022 and 2021, respectively.

As of March 31, 2023 there was approximately $ 5.8 million of total unrecognized compensation cost, net of expected forfeitures, related to unvested stock options, which is expected to be recognized over the weighted-average period of 1.3 years.

There were 35,850 and 327,738 options exercised during the three months ended March 31, 2023 and 2022 , respectively.

There were 165,011 and 525,217 options exercised during the nine months ended March 31, 2023 and 2022, respectively.

Lease agreements are evaluated to determine whether an arrangement is or contains a lease in accordance with ASC 842, Leases .

17 unchanged sentences

These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit.

under a single reporting unit and accordingly, all of our goodwill is associated with the entire company.

We had no indicators of impairment during the three and six months ended December 31, 2022.

We operate under a single reporting unit and accordingly, all of our goodwill is associated with the entire company.

We had no indicators of impairment during the three and nine months ended March 31, 2023.

REVENUE RECOGNITION

Disaggregation of Revenue

The following table presents our subscription and professional services revenue during the three and six months ended December 31, 2022 and 2021, respectively (in thousands):

The following table presents our subscription and professional services revenue during the three and nine months ended March 31, 2023 and 2022, respectively (in thousands):

Three Months Ended

Six Months Ended

Nine Months Ended

Legacy revenue

2 unchanged sentences

Total revenue

The following table presents our revenue recognized over-time and at a point-in-time during the three and six months ended December 31, 2022 and 2021, respectively (in thousands):

The following table presents our revenue recognized over-time and at a point-in-time during the three and nine months ended March 31, 2023 and 2022, respectively (in thousands):

Three Months Ended

Six Months Ended

Nine Months Ended

Point-in-time

4 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

North America

3 unchanged sentences

Contract assets, if any, consist of unbilled receivables for completed performance obligations which have not been invoiced, and for which we do not have an unconditional right to consideration.

Contract liabilities consist of deferred

revenue for which we have an obligation to transfer services to customers and have received consideration in advance or the amount is due from customers.

Unbilled receivables are included in accounts receivable, less allowance for doubtful accounts on our condensed consolidated balance sheets.

Contract liabilities consist of deferred revenue for which we have an obligation to transfer services to customers and have received consideration in advance or the amount is due from customers.

Once the obligations are fulfilled, then deferred revenue is recognized to revenue in the respective period.

There were no contract assets as of December 31, 2022, on our condensed consolidated balance sheets.

The following table presents our contract liabilities (in thousands):

December 31, 2022

March 31, 2023

June 30, 2022

2 unchanged sentences

Deferred revenue, net of current portion

$ 11.0 million and $ 25.4 million of deferred revenue as of June 30, 2022 was recognized to revenue during the three and six months ended December 31, 2022, respectively.

Total deferred revenue includes additions of $ 21.9 million and deductions of $ 26.6 million for the three months ended December 31, 2022.

Total deferred revenue includes additions of $ 46.9 million and deductions of $ 51.6 million for the six months ended December 31, 2022.

Deductions consist of revenue recognized from beginning of period and impact of foreign currency translation.

$ 8.2 million and $ 33.5 million of deferred revenue as of June 30, 2022 was recognized to revenue during the three and nine months ended March 31, 2023, respectively.

Remaining Performance Obligations

1 unchanged sentence

The transaction price allocated to the remaining performance obligation is influenced by a variety of factors, including seasonality, timing of renewals, average contract terms and foreign currency exchange rates.

As of December 31, 2022, our remaining performance obligations were $ 92.1 million of which we expect to recognize $ 56.5 million and $ 35.6 million as revenue within one year and beyond one year, respectively.

As of March 31, 2023, our remaining performance obligations were $ 87.3 million of which we expect to recognize $ 52.1 million and $ 35.2 million as revenue within one year and beyond one year, respectively.

LOSS PER SHARE

1 unchanged sentence

In periods where net income is reported, the weighted-average number of shares is increased by stock options in the money to calculate diluted net income per share.

The following table represents the calculation of basic and diluted net loss per common share (in thousands, except per share data):

The following table represents the calculation of basic and diluted net loss per share (in thousands, except per share data):

Three Months Ended

Six Months Ended

Nine Months Ended

Per share information:

1 unchanged sentence

Weighted-average shares used in computation:

Weighted-average shares of stock options to purchase 3,628,963 and 3,326,313 shares of common stock for the three months ended December 31, 2022 and 2021, respectively, and weighted-average shares of stock options to purchase 3,658,692 and 2,349,356 shares of common stock for the six months ended December 31, 2022 and 2021, respectively,

were not included in the computation of diluted net loss per share due to their anti-dilutive effect.

Weighted-average shares of stock options to purchase 3,493,090 and 3,421,485 shares of common stock for the three months ended March 31, 2023 and 2022, respectively, and weighted-average shares of stock options to purchase 3,604,297 and 2,717,101 shares of common stock for the nine months ended March 31, 2023 and 2022, respectively, were not included in the computation of diluted net loss per share due to their anti-dilutive effect.

Such securities could have a dilutive effect in future periods.

1 unchanged sentence

Under this method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

For the legacy eGain business in the United States, based upon the weight of available evidence, which includes our historical operating performance, our future investment plans, and the uncertainty in the current market environment due to COVID-19, we have provided a full valuation allowance against our net deferred tax assets.

For the legacy eGain business in the United States, based upon the weight of available evidence, which includes our historical operating performance, our future investment plans, and the uncertainty in the current market environment and economic uncertainty, we have provided a full valuation allowance against our net deferred tax assets.

For the legacy eGain business in the United Kingdom, based on the positive evidence, the Company has determined it would be able to utilize the deferred tax assets and does not have a valuation allowance against the deferred tax assets.

1 unchanged sentence

Our tax provision primarily relates to foreign activities as well as state income taxes.

Our income tax rate differs from the statutory tax rates primarily due to the utilization of net operating loss carry-forwards which had previously been valued against as well as our foreign operations.

Our income tax rate differs from the statutory tax rates primarily due to the change in our valuation allowance as well as our foreign operations.

We account for uncertain tax positions according to the provisions of ASC 740.

3 unchanged sentences

We consider many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes.

As of December 31, 2022, utilization of the NOL or tax credit carryforwards to offset future taxable income and taxes, respectively, are subject to an annual limitation under the Internal Revenue Code of 1986 and similar state provisions, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments such as built in gain or built in loss, as required.

As of March 31, 2023, utilization of the NOL or tax credit carryforwards to offset future taxable income and taxes, respectively, are subject to an annual limitation under the Internal Revenue Code of 1986 and similar state provisions, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments such as built in gain or built in loss, as required.

Any limitation may result in expiration of all or a portion of its NOL and or tax credit carryforwards before utilization.

As of December 31, 2022, the Company did not identify any ownership change that would significantly limit the net operating loss carryovers.

The 2017 Tax Cuts and Jobs Act includes a provision to tax global intangible low-taxed income (GILTI) of foreign subsidiaries.

As of December 31, 2022, we estimate $ 7.9 million GILTI will be an addback for fiscal year 2023.

As of March 31, 2023, the Company did not identify any ownership change that would significantly limit the net operating loss carryovers.

On August 16, 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law and is effective for taxable years beginning after December 31, 2022.

6 unchanged sentences

As our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments.

Total operating lease costs were $ 315,000 and $ 331,000 for the three months ended December 31, 2022 and 2021, respectively.

Total operating lease costs were $ 636,000 and $ 698,000 for the six months ended December 31, 2022 and 2021, respectively.

For the three and six months ended December 31, 2022, operating cash outflows for operating leases were $ 295,000 and $ 593,000 , respectively.

For the three and six months ended December 31, 2021, operating cash outflows for operating leases were $ 460,000 and $ 918,000 , respectively.

Total operating lease costs were $ 325,000 and $ 329,000 for the three months ended March 31, 2023 and 2022, respectively.

Total operating lease costs were $ 961,000 and $ 1.0 million for the nine months ended March 31, 2023 and 2022, respectively.

For the three and nine months ended March 31, 2023, operating cash outflows for operating leases were $ 307,000 and $ 900,000 , respectively.

For the three and nine months ended March 31, 2022, operating cash outflows for operating leases were $ 468,000 and $ 1.4 million, respectively.

The following tables present information about leases on our condensed consolidated balance sheets (in thousands):

3 unchanged sentences

The following table presents information about the weighted average lease term and discount rate as follows:

As of December 31, 2022

As of March 31, 2023

As of June 30, 2022

1 unchanged sentence

Weighted average discount rate

As of December 31, 2022, remaining maturities of lease liabilities are as follows (in thousands):

As of March 31, 2023, remaining maturities of lease liabilities are as follows (in thousands):

Fiscal Period:

Remaining six months of fiscal 2023

Remaining three months of fiscal 2023

Total minimum lease payments

35 unchanged sentences

Our money market funds are measured at fair value on a recurring basis based on quoted market prices in active markets and are classified as level 1 within the fair value hierarchy.

As of December 31, 2022 and June 30, 2022, cash equivalents classified as level 1 instruments, including money market account investments, were measured at $ 58.6 million and $ 57.9 million, respectively.

As of March 31, 2023 and June 30, 2022, cash equivalents classified as level 1 instruments, including money market account investments, were measured at $ 78.5 million and $ 57.9 million, respectively.

SHARE REPURCHASE PROGRAM

On November 14, 2022, the Board of Directors authorized a stock repurchase program under which we may purchase up to $ 20 million of our outstanding common stock.

On November 14, 2022, the Company’s Board of Directors authorized a stock repurchase program under which we may purchase up to $ 20.0 million of our outstanding common stock.

As of March 31, 2023, approximately $ 18.9 million remained available for stock repurchases pursuant to our stock repurchase program.

Under the stock repurchase program, we may purchase shares of common stock on a discretionary basis from time to time through open market transactions or privately negotiated transactions at prices deemed appropriate by us.

1 unchanged sentence

The timing and number of shares repurchased will be determined based on an evaluation of market conditions and other factors, including stock price, trading volume, general business and market conditions, and the availability of capital.

The stock repurchase program is effective immediately, has a term of one year from adoption unless extended, does not obligate us to acquire a specified number of shares and may be modified, suspended, or discontinued at any time at our discretion without notice.

The stock repurchase program is effective immediately on November 14, 2022, has a term of one year from adoption unless extended, does not obligate us to acquire a specified number of shares and may be modified, suspended, or discontinued at any time at our discretion without notice.

The stock repurchase program will be funded using existing cash or future cash flows.

As of December 31, 2022, no shares have been repurchased.

During the three and nine months ended March 31, 2023, 145,453 shares have been repurchased for an average acquisition cost per share of $ 7.57 , totaling $ 1.1 million.

We intend to reissue repurchased shares at a later date and therefore carry the shares as treasury stock at cost.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements