0001131554-23-000080 | 10-Q | XBRL Viewer | Synchronoss Technologies INC

Revenue

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

The Company disaggregates revenue from contracts with customers into the nature of the products and services and

geographical regions. The Company’s geographic regions are the Americas, Europe, the Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”). The majority of the Company’s revenue is from the TMT sector.


	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
	Cloud		NetworkX		Messaging		Total		Cloud		NetworkX		Messaging		Total
Geography:
Americas	$	36,714	$	6,077	$	1,504	$	44,295	$	36,811	$	8,868	$	1,907	$	47,586
APAC	1,328		795		5,176		7,299		114		767		7,479		8,360
EMEA	1,685		—		2,369		4,054		1,633		—		2,317		3,950
Total	$	39,727	$	6,872	$	9,049	$	55,648	$	38,558	$	9,635	$	11,703	$	59,896

Service Line:
Professional Services	$	4,248	$	267	$	1,616	$	6,131	$	3,192	$	626	$	2,334	$	6,152
Transaction Services	—		1,075		—		1,075		161		1,655		—		1,816
Subscription Services	35,479		5,201		7,433		48,113		35,205		5,456		7,684		48,345
License	—		329		—		329		—		1,898		1,685		3,583
Total	$	39,727	$	6,872	$	9,049	$	55,648	$	38,558	$	9,635	$	11,703	$	59,896


	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
	Cloud		NetworkX		Messaging		Total		Cloud		NetworkX		Messaging		Total
Geography:
Americas	$	111,674	$	19,486	$	5,102	$	136,262	$	118,369	$	28,308	$	6,908	$	153,585
APAC	4,122		2,365		16,793		23,280		177		2,433		20,640		23,250
EMEA	5,446		—		8,081		13,527		4,990		1,495		7,678		14,163
Total	$	121,242	$	21,851	$	29,976	$	173,069	$	123,536	$	32,236	$	35,226	$	190,998

Service Line:
Professional Services	$	13,278	$	907	$	5,379	$	19,564	$	9,780	$	3,642	$	8,117	$	21,539
Transaction Services	185		2,833		—		3,018		707		4,404		56		5,167
Subscription Services	107,375		15,946		22,858		146,179		113,049		20,104		24,236		157,389
License	404		2,165		1,739		4,308		—		4,086		2,817		6,903
Total	$	121,242	$	21,851	$	29,976	$	173,069	$	123,536	$	32,236	$	35,226	$	190,998

Trade Accounts Receivable and Contract balances

The Company classifies its right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, the Company recognizes a receivable for revenues related to its time and materials and transaction or volume-based contracts. The Company presents such receivables in Trade accounts receivable, net in its Condensed Consolidated Statements of Financial Position at their net estimated realizable value. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other economic indicators.

A contract asset is a right to consideration that is conditional upon factors other than the passage of time. For example, the Company would record a contract asset if it records revenue on a professional services engagement but are not entitled to bill until the Company achieves specified milestones. Contract assets balance at September 30, 2023 is $6.1 million.

Amounts collected in advance of services being provided are accounted for as contract liabilities, which are presented as deferred revenue on the accompanying Condensed Consolidated Balance Sheets and are realized with the associated revenue recognized under the contract. Nearly all of the Company's contract liabilities balance is related to services revenue, primarily subscription services contracts.

The Company’s contract assets and liabilities are reported in a net position on a customer basis at the end of each reporting period.

Significant changes in the contract liabilities balance (current and non-current) during the period are as follows:


	Contract Liabilities1
Balance - January 1, 2023	$	14,183
Revenue recognized in the period	(172,039)
Amounts billed but not initially recognized as revenue	177,366


Balance - September 30, 2023	$	19,510

________________________________

1 Comprised of Deferred Revenue. $12.7 million of revenue recognized in the period was included in the contract liability balance at the beginning of the period.

Transaction price allocated to the remaining performance obligations

Topic 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 30, 2023. The Company has elected not to disclose transaction price allocated to remaining performance obligations for:

1.Contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty;

2.Contracts for which the Company recognizes revenues based on the right to invoice for services performed;

3.Variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with Topic 606 Section 10-25-14(b), for which the criteria in Topic 606 Section 10-32-40 have been met. This applies to a limited number of situations where the Company is dependent upon data from a third party or where fees are highly variable.

Many of the Company’s performance obligations meet one or more of these exemptions. Specifically, the Company has excluded the following from the Company’s remaining performance obligations, all of which will be resolved in the period in which amounts are known:

•consideration for future transactions, above any contractual minimums

•consideration for success-based transactions contingent on third party data

•credits for failure to meet future service level requirements

As of September 30, 2023, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $268.6 million, of which approximately 59.8 percent is expected to be recognized as revenues within 2 years, and the remainder thereafter.

Estimates of revenue expected to be recognized in future periods also exclude unexercised customer options to purchase services that do not represent material rights to the customer. Customer options that do not represent a material right are only accounted for in accordance with Topic 606 when the customer exercises its option to purchase additional goods or services.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

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+ Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 866	$ 1,115		$ 2,708	$ 1,678
Effective tax rate				(13.90%)	21.90%
Proceeds from income tax refunds			$ 4,300

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Debt - Carrying Amounts (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Jun. 30, 2021
Debt Instrument [Line Items]
Unamortized discount and debt issuance cost	$ (5,285)	$ (6,493)
Carrying value of Senior Notes	135,792	134,584
2021 Non-Convertible Senior Notes due 2026: \| Senior Notes
Debt Instrument [Line Items]
Interest rate, as a percent			8.375%
8.375% Senior Notes due 2026	141,077	141,077
Carrying value of Senior Notes	$ 103,833	$ 101,293

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Net revenues	$ 55,648	$ 59,896	$ 173,069	$ 190,998
Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	6,131	6,152	19,564	21,539
Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	1,075	1,816	3,018	5,167
Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	48,113	48,345	146,179	157,389
License
Disaggregation of Revenue [Line Items]
Net revenues	329	3,583	4,308	6,903
Americas
Disaggregation of Revenue [Line Items]
Net revenues	44,295	47,586	136,262	153,585
APAC
Disaggregation of Revenue [Line Items]
Net revenues	7,299	8,360	23,280	23,250
EMEA
Disaggregation of Revenue [Line Items]
Net revenues	4,054	3,950	13,527	14,163
Cloud
Disaggregation of Revenue [Line Items]
Net revenues	39,727	38,558	121,242	123,536
Cloud \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	4,248	3,192	13,278	9,780
Cloud \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	0	161	185	707
Cloud \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	35,479	35,205	107,375	113,049
Cloud \| License
Disaggregation of Revenue [Line Items]
Net revenues	0	0	404	0
Cloud \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	36,714	36,811	111,674	118,369
Cloud \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	1,328	114	4,122	177
Cloud \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	1,685	1,633	5,446	4,990
NetworkX
Disaggregation of Revenue [Line Items]
Net revenues	6,872	9,635	21,851	32,236
NetworkX \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	267	626	907	3,642
NetworkX \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	1,075	1,655	2,833	4,404
NetworkX \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	5,201	5,456	15,946	20,104
NetworkX \| License
Disaggregation of Revenue [Line Items]
Net revenues	329	1,898	2,165	4,086
NetworkX \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	6,077	8,868	19,486	28,308
NetworkX \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	795	767	2,365	2,433
NetworkX \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	0	0	0	1,495
Messaging
Disaggregation of Revenue [Line Items]
Net revenues	9,049	11,703	29,976	35,226
Messaging \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	1,616	2,334	5,379	8,117
Messaging \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	0	0	0	56
Messaging \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	7,433	7,684	22,858	24,236
Messaging \| License
Disaggregation of Revenue [Line Items]
Net revenues	0	1,685	1,739	2,817
Messaging \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	1,504	1,907	5,102	6,908
Messaging \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	5,176	7,479	16,793	20,640
Messaging \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	$ 2,369	$ 2,317	$ 8,081	$ 7,678

Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

The Company has entered into contracts with third parties to lease a variety of assets, including certain real estate, equipment, automobiles and other assets. The Company’s leases frequently allow for lease payments that could vary based on factors such as inflation or the degree of utilization of the underlying asset. For example, certain of the Company’s real estate leases could require us to make payments that vary based on common area maintenance charges, insurance and other charges. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company is party to certain sublease arrangements, primarily related to the Company’s real estate leases, where it acts as the lessee and intermediate lessor.

The Company reflects finance leases as a component of Leases, non-current on the Condensed Consolidated Balance Sheet. The finance leases were not material for the period ended September 30, 2023.

The following table presents information about the Company's Right of Use (ROU) assets and lease liabilities:


	September 30, 2023		December 31, 2022
ROU assets:
Non-current operating lease ROU assets	$	15,977	$	20,863



Operating lease liabilities:
Current operating lease liabilities1	$	5,959	$	5,497
Non-current operating lease liabilities	24,669		29,222
Total operating lease liabilities	$	30,628	$	34,719

________________________________

1 Amounts are included in Accrued Expenses on the Condensed Consolidated Balance Sheet.

The following table presents information about lease expense and sublease income:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease cost1	$	1,541	$	1,677	$	4,749	$	5,691
Other lease costs and income:
Variable lease costs1	256		193		1,082		1,364
Operating lease impairments, net1	—		—		2,075		175
Sublease income1	(1,003)		(684)		(2,541)		(2,058)

Total net lease cost	$	794	$	1,186	$	5,365	$	5,172

________________________________

1 Amounts are included in Cost of revenues, Selling, general and administrative and/or Research and development based on the function that the underlying leased asset supports which are reflected in the Condensed Consolidated Statements of Operations.

The following table provides the undiscounted amount of future cash flows included in our lease liabilities at September 30, 2023 for each of the five years subsequent to December 31, 2022 and thereafter, as well as a reconciliation of such undiscounted cash flows to our lease liabilities at September 30, 2023:


Year	Operating Leases
The remainder of 2023	$	2,010
2024	8,241
2025	7,926
2026	7,856
2027	6,244
Thereafter	4,271
Total future lease payments	36,548
Less: amount representing interest	(5,920)
Present value of future lease payments (lease liability)	$	30,628

The following table provides the weighted-average remaining lease term and weighted-average discount rates for our leases:


	September 30, 2023	December 31, 2022
Operating Leases:
Weighted-average remaining lease term (years), weighted based on lease liability balances	4.60	5.31
Weighted-average discount rate (percentages), weighted based on the remaining balance of lease payments	8.0%	8.0%

The following table provides certain cash flow and supplemental noncash information related to our lease liabilities:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating Leases:
Cash paid for amounts included in the measurement of lease liabilities	$	1,979	$	2,253	$	5,985	$	7,292

Capital Structure - Restricted Stock (Details) - Restricted stock awards shares in Thousands	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Number of Awards
Non-vested at the beginning of the period (in shares) \| shares	4,385
Granted (in shares) \| shares	3,288
Granted adjustment (in shares) \| shares	(395)
Vested (in shares) \| shares	(1,810)
Forfeited (in shares) \| shares	(139)
Non-vested at the end of the period (in shares) \| shares	5,329
Weighted- Average Grant Date Fair Value
Non-vested at the beginning of the period (in dollars per share) \| $ / shares	$ 1.82
Granted (in dollars per share) \| $ / shares	0.95
Granted adjustment (in dollars per share) \| $ / shares	3.25
Vested (in dollars per share) \| $ / shares	1.71
Forfeited (in dollars per share) \| $ / shares	1.78
Non-vested at the end of the period (in dollars per share) \| $ / shares	$ 1.22

Basis of Presentation and Consolidation

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Consolidation

The accompanying interim unaudited condensed consolidated financial statements have been prepared by Synchronoss and in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023.

The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities (“VIE”) in which the Company is the primary beneficiary and entities in which the Company has a controlling interest. Investments in less than majority-owned companies in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. Investments in less than majority-

owned companies in which the Company does not have the ability to exert significant influence over the operating and financial policies of the investee are accounted for using the cost method. All material intercompany transactions and accounts are eliminated in consolidation.

For further information about the Company’s basis of presentation and consolidation or its significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Recently Issued Accounting Standards

Recent accounting pronouncements adopted

Standard

Description

Effect on the financial statements

Update 2022-04 - Liabilities—Supplier Finance Programs
(Subtopic 405-50). Disclosure of Supplier Finance Program Obligations

The amendments in this Update apply to all entities that use supplier finance programs in connection with the purchase of goods and services (herein described as buyer parties). Supplier finance programs, which also may be referred to as reverse factoring, payables finance, or structured payables arrangements, allow a buyer to offer its suppliers the option for access to payment in advance of an invoice due date, which is paid by a third-party finance provider or intermediary on the basis of invoices that the buyer has confirmed as valid.
The amendments in this Update require that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs.

The Company evaluated these changes and determined that they have no material impact on the Company’s consolidated financial position or results of operations upon adoption.

Date of adoption: January 1, 2023

Digital Experience Platform and Activation Solutions Sale

On March 7, 2022, Synchronoss Technologies, Inc. and iQmetrix Global Ltd. (“iQmetrix”), entered into an Asset Purchase Agreement, pursuant to which Synchronoss has agreed to sell its Digital Experience Platform and activation solutions (the “DXP Business”) to iQmetrix for up to a total purchase price of $14 million. The purchase price is payable as follows: (i) $7.5 million on the closing date of the Transaction, (ii) $0.5 million deposited into an escrow account on the Closing Date, (iii) $1 million paid twelve (12) months from the Closing Date, and (iv) $5 million that may be payable as an earn-out.

This transaction closed on May 11, 2022. The Company received the $7.5 million cash payment on the transaction close date. The Company received the $0.5 million payment in escrow during the third quarter of 2022 in accordance with the terms of the Asset Purchase Agreement. The remaining $1 million escrow payment has not been received by the Company in accordance with the agreement. As of September 30, 2023 the Company fully reserved for the asset and related receivables recorded within the Selling, general and administrative expenses line item on the income statement, and is pursuing collection of the payment.

As of the close of the transaction, the Company determined the fair value of the earn-out provision was $3.6 million of which $3.0 million was recorded as an other current asset and the remaining portion was recorded as non-current other asset. In the fourth quarter of fiscal 2022, iQmetrix and the Company agreed that the required performance conditions were not met. This resulted in a write-off of the earn-out provision recorded within the Selling, general and administrative expenses line item on the income statement.

The book value of the divested intangible assets associated with the DXP Business was $2.3 million. For the goodwill allocation, the fair value of the core reporting unit was estimated using a combination of the income approach, which incorporates the use of the discounted cash flow method, and the market approach, which incorporates the use of earnings and revenue multiples based on market data. Based on the fair value of the core reporting unit and the aggregate consideration

received in the transaction, the Company determined the attributable fair value of goodwill to the DXP Business was $7.6 million. The transaction resulted in a $2.5 million gain for the year ended December 31, 2022.

Accounts Receivable Securitization Facility

On June 23, 2022 (the “Closing Date”), the Company and certain of its subsidiaries (together with the Company, the “Company Group”) entered into a $15 million accounts receivable securitization facility (the “A/R Facility”) with Norddeutsche Landesbank Girozentrale.

The A/R Facility transaction includes (i) Receivables Purchase Agreements (the “Receivables Purchase Agreements”) dated as of the Closing Date, among the Company, as initial servicer, SN Technologies, LLC, a wholly owned special purpose subsidiary of the Company (“SN Technologies”), as seller, Norddeutsche Landesbank Girozentrale, as administrative agent (the “Administrative Agent”), and the purchasers party thereto, the group agents party thereto and the originators party thereto; (ii) Purchase and Sale Agreements (the “Purchase and Sale Agreements”) dated as of the Closing Date, between the Company Group, as originators (the “Originators”), and SN Technologies, as purchaser; (iii) the Administration Agreement (the “Administration Agreement”) dated as of the Closing Date, between the Company, as servicer, and Finacity Corporation, as administrator; and (iv) the Performance Guaranty (the “Performance Guaranty”) dated as of the Closing Date made by the Company in favor of the Administrative Agent.

Pursuant to the Purchase and Sale Agreements, the Originators will sell existing and future accounts receivable [and related assets] (the “Receivables”) to SN Technologies in exchange for cash and/or subordinated notes. The Originators and SN Technologies intend the transactions contemplated by the Purchase and Sale Agreements to be true sales to SN Technologies by the respective Originators. Pursuant to the Receivables Purchase Agreement, SN Technologies will in turn grant an undivided security interest to the Administrative Agent in the Receivables in exchange for a credit facility permitting borrowings of up to $15 million outstanding from time to time. Yield is payable to the Administrative Agent under the Receivables Purchase Agreements at a variable rate based on the Norddeutsche Landesbank Girozentrale’s Hanover funding rate plus a 2.35% margin. The Company pays a commitment fee that shall equal 0.85% per annum on the average daily unused outstanding capital. Pursuant to the Performance Guaranty, the Company guarantees the performance of the Originators of their obligations under the Purchase and Sale Agreements.

The Company has not agreed to guarantee any obligations of SN Technologies or the collection of any of the receivables and will not be responsible for any obligations to the extent the failure to perform such obligations by the Company or any Originators results from receivables being uncollectible on account of the insolvency, bankruptcy or lack of creditworthiness or other financial inability to pay of the related obligor.

Unless earlier terminated or subsequently extended pursuant to the terms of the Receivables Purchase Agreement, the A/R Facility will expire on June 23, 2025.

The foregoing description of the A/R Facility and the respective transactions contemplated thereby does not purport to be complete and is qualified in its entirety by reference to the full text of the Receivables Purchase Agreements, Purchase and Sale Agreements, Administration Agreement and Performance Guaranty, copies of which are filed as Exhibits 10.1, 10.2, 10.3 and 10.4, respectively, on Form 8-K filed with Securities and Exchange Commission on June 23, 2022.

The Company drew $2.5 million on the A/R Facility in July of 2023, and had repaid the balance in full in September of 2023. The interest associated with the draw and repayment was not material for the period. The draw down and subsequent repayment of the A/R Facility represent financing activity, as reported in the Statement of Cash Flows. As of September 30, 2023 approximately $5.6 million of the Company’s receivables are held by SN Technologies.

Revenue - Remaining Performance Obligations (Details) $ in Millions	Sep. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 268.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percent	59.80%
Revenue, remaining performance obligation, expected timing of satisfaction, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2021		88,305
Beginning balance at Dec. 31, 2021	$ 90,823	$ 9	$ 492,512	$ (32,985)	$ (368,713)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	4,639		4,639
Issuance of restricted stock (in shares)		2,954
Preferred stock dividend	(7,112)		(7,112)
Amortization of preferred stock issuance costs	(143)		(143)
Shares withheld for taxes in connection with issuance of restricted stock (in shares)		(67)
Shares withheld for taxes in connection with issuance of restricted stock	(80)		(80)
Net income (loss) attributable to Synchronoss	5,970				5,970
Non-controlling interest	0		256		(256)
Total other comprehensive income (loss)	(28,532)			(28,532)
Ending balance (in shares) at Sep. 30, 2022		91,192
Ending balance at Sep. 30, 2022	65,565	$ 9	490,072	(61,517)	(362,999)
Beginning balance (in shares) at Jun. 30, 2022		89,045
Beginning balance at Jun. 30, 2022	78,363	$ 9	490,594	(48,221)	(364,019)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	1,710		1,710
Issuance of restricted stock (in shares)		2,147
Preferred stock dividend	(2,298)		(2,298)
Net income (loss) attributable to Synchronoss	1,086				1,086
Non-controlling interest	0		66		(66)
Total other comprehensive income (loss)	(13,296)			(13,296)
Ending balance (in shares) at Sep. 30, 2022		91,192
Ending balance at Sep. 30, 2022	$ 65,565	$ 9	490,072	(61,517)	(362,999)
Beginning balance (in shares) at Dec. 31, 2022	90,853	90,853
Beginning balance at Dec. 31, 2022	$ 68,097	$ 9	488,848	(44,131)	(376,629)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	4,189		4,189
Issuance of restricted stock (in shares)		2,754
Preferred stock dividend	(7,423)		(7,423)
Shares withheld for taxes in connection with issuance of restricted stock (in shares)		(271)
Shares withheld for taxes in connection with issuance of restricted stock	(249)		(249)
Net income (loss) attributable to Synchronoss	(22,128)				(22,128)
Non-controlling interest	0		(10)		10
Total other comprehensive income (loss)	$ (3,328)			(3,328)
Ending balance (in shares) at Sep. 30, 2023	93,336	93,336
Ending balance at Sep. 30, 2023	$ 39,158	$ 9	485,355	(47,459)	(398,747)
Beginning balance (in shares) at Jun. 30, 2023		93,522
Beginning balance at Jun. 30, 2023	51,148	$ 9	486,579	(39,390)	(396,050)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	1,349		1,349
Issuance of restricted stock (in shares)		(59)
Preferred stock dividend	(2,474)		(2,474)
Shares withheld for taxes in connection with issuance of restricted stock (in shares)		(127)
Shares withheld for taxes in connection with issuance of restricted stock	(117)		(117)
Net income (loss) attributable to Synchronoss	(2,679)				(2,679)
Non-controlling interest	0		18		(18)
Total other comprehensive income (loss)	$ (8,069)			(8,069)
Ending balance (in shares) at Sep. 30, 2023	93,336	93,336
Ending balance at Sep. 30, 2023	$ 39,158	$ 9	$ 485,355	$ (47,459)	$ (398,747)

Capital Structure - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Number of Options
Options outstanding at the beginning of the period (in shares)	6,641
Options Granted (in shares)	24
Options Exercised (in shares)	0
Options Cancelled (in shares)	(300)
Options outstanding at the end of the period (in shares)	6,365
Vested and exercisable (in shares)	3,895
Weighted-Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$ 3.80
Options Granted (in dollars per share)	1.00
Options Exercised (in dollars per share)	0
Options Cancelled (in dollars per share)	15.05
Balance at the end of the period (in dollars per share)	3.26
Vested and exercisable (in dollars per share)	$ 4.31
Weighted-Average Remaining Contractual Term (Years)
Outstanding	4 years 7 months 24 days
Vested and exercisable	4 years 29 days
Aggregate Intrinsic Value
Outstanding	$ 1,000
Vested and exercisable	0
Additional disclosures related to stock options
Total intrinsic value for stock options exercisable	0	$ 0
Total intrinsic value for stock options exercised	$ 0	$ 0

Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

In accordance with accounting principles generally accepted in the United States, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy prioritizes the inputs used to measure fair value as follows:

•Level 1 - Observable inputs - quoted prices in active markets for identical assets and liabilities;

•Level 2 - Observable inputs other than the quoted prices in active markets for identical assets and liabilities includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets; and

•Level 3 - Unobservable inputs - includes amounts derived from valuation models where one or more significant inputs are unobservable and require the Company to develop relevant assumptions.

The following is a summary of assets, liabilities and redeemable noncontrolling interests and their related classifications under the fair value hierarchy:


	September 30, 2023
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and cash equivalents	$	17,574	$	17,574	$	—	$	—


Total assets	$	17,574	$	17,574	$	—	$	—



Temporary equity
Redeemable noncontrolling interests1	$	12,500	$	—	$	—	$	12,500
Total temporary equity	$	12,500	$	—	$	—	$	12,500


	December 31, 2022
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and cash equivalents	$	21,921	$	21,921	$	—	$	—


Total assets	$	21,921	$	21,921	$	—	$	—



Temporary Equity
Redeemable noncontrolling interests1	$	12,500	$	—	$	—	$	12,500
Total temporary equity	$	12,500	$	—	$	—	$	12,500

________________________________

1 Put arrangements held by the noncontrolling interests in certain of the Company’s joint venture.

Redeemable Noncontrolling Interests

The redeemable noncontrolling interests recorded at fair value are put arrangements held by the noncontrolling interests in certain of the Company’s joint ventures. The Company recognizes changes in the redemption value immediately as they occur and adjusts the carrying value of the noncontrolling interest to the greater of the estimated redemption value, which approximates fair value, at the end of each reporting period or the initial carrying amount.

The fair value of the redeemable noncontrolling interests was estimated by applying an income approach using a discounted cash flow analysis. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement. Significant changes in the underlying assumptions used to value the redeemable noncontrolling interests could significantly increase or decrease the fair value estimates recorded in the Condensed Consolidated Balance Sheets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Loan Receivable	9 Months Ended
Loan Receivable	Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Loan Receivable	Loan Receivable Sequential Technology International, LLC During the second quarter of 2020, the Company entered into an agreement with Sequential Technology International, LLC (“STIN”) and AP Capital Holdings II, LLC (“APC”) to divest its remaining equity interest in STIN as well as settle its paid-in-kind purchase money note (“PIK note”) and certain amounts due as of December 31, 2019 in consideration for a $9.0 million secured promissory note (the “Note”), which includes contingent consideration of up to $16.0 million. The Note has an 8% interest rate and the maturity date is April 27, 2025. As of December 31, 2022, the carrying value of the Note after the consideration of the allowance for credit loss was approximately $4.8 million. The Company determined the allowance on the Note using a discounted cash flow analysis, which discounts the expected future cash flows of the asset to determine the collectible amount. During the third quarter of 2023, the interest payment for the Note was not received by the Company from STIN. As of September 30, 2023 the Company reassessed the collectability of the Note and determined that a full allowance for credit losses was required equal to the carrying value of the Note, recorded within the Selling, general and administrative expenses line item on the income statement. The Company will continue to pursue collection of the Note.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	93,336,000	90,853,000
Common stock, shares outstanding (in shares)	93,336,000	90,853,000
Series B Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	150,000	150,000
Preferred stock, shares issued (in shares)	71,000	71,000
Preferred stock, shares outstanding (in shares)	71,000	71,000

Capital Structure (Tables)

9 Months Ended

Sep. 30, 2023

Stockholder's Equity

Schedule of Series A Preferred Stock

A summary of the Company’s Series B Perpetual Non-Convertible Preferred Stock balance at September 30, 2023 and changes during the nine months ended September 30, 2023, are presented below:


	Series B Preferred Stock
	Shares	Amount
Balance at December 31, 2022	71	$	68,348


Amortization of preferred stock issuance costs	—	—
Issuance of preferred PIK dividend	—	—



Redemption of Series B preferred shares	—	—
Balance at September 30, 20231	71	$	68,348

________________________________

1 Series B preferred stock net principal balance of $68.3 million is presented as gross principal balance of $70.7 million net of $2.4 million unamortized issuance costs.

Schedule of Stock-based Compensation

The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by operating expense categories, as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
Cost of revenues	$	163	$	232		$	576	$	592
Research and development	373		494			1,362		1,366
Selling, general and administrative	705		1,075			2,667		2,734
Total stock-based compensation expense	$	1,241	$	1,801		$	4,605	$	4,692

The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by award type, as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
Stock options	$	428	$	779		$	1,395	$	2,019
Restricted stock awards	929		933			2,794		2,320
Performance based cash units	(116)		89			416		353

Total stock-based compensation before taxes	$	1,241	$	1,801		$	4,605	$	4,692
Tax benefit	$	243	$	364		$	918	$	931

Schedule of Fair Value Assumptions

The weighted-average assumptions used in the Black-Scholes option pricing model are as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022				2023			2022
Expected stock price volatility	72.2		%	74.1		%		72.6		%	74.1		%
Risk-free interest rate	4.3		%	3.0		%		4.2		%	3.1		%
Expected life of options (in years)	4.32			4.17				4.28			4.15
Expected dividend yield	0.0		%	0.0		%		0.0		%	0.0		%
Weighted-average fair value of the options	$	0.55		$	0.70			$	0.59		$	0.71

Schedule of Information About Stock Options Outstanding

The following table summarizes information about stock options outstanding as of September 30, 2023:


Options	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2022	6,641	$	3.80
Options Granted	24	1.00
Options Exercised	—	—
Options Cancelled	(300)	15.05
Outstanding at September 30, 2023	6,365	$	3.26	4.65	$	1

Vested and exercisable at September 30, 2023	3,895	$	4.31	4.08	$	—

Restricted stock awards

Stockholder's Equity

Summary of Unvested Restricted Stock and Performance Shares Activity

A summary of the Company’s unvested restricted stock at September 30, 2023, and changes during the nine months ended September 30, 2023, is presented below:


Unvested restricted stock	Number of Awards	Weighted- Average Grant Date Fair Value
Unvested at December 31, 2022	4,385	$	1.82
Granted	3,288	0.95
Granted adjustment1	(395)	3.25
Vested	(1,810)	1.71
Forfeited	(139)	1.78
Unvested at September 30, 2023	5,329	$	1.22

___________________________

1 Represents performance based cash units grants that vested and were paid out in form of shares of stock during the period and changes in unvested performance based restricted stock awards due to performance adjustments.

Performance based cash units

Stockholder's Equity

Summary of Unvested Restricted Stock and Performance Shares Activity

A summary of the Company’s outstanding performance based cash units at September 30, 2023 and changes during the nine months ended September 30, 2023, is presented below:


Outstanding performance based cash units	Number of Units	Period End Fair Value
Outstanding at December 31, 2022	5,872	$	0.62
Granted	1,206	—
Granted adjustment1	(1,283)	—
Vested and distributed2	—	—
Forfeited	(66)	—
Outstanding at September 30, 2023	5,729	$	0.96

___________________________

1 Includes changes in the outstanding performance based cash units due to performance adjustments.

2 Includes earned PBCU that vested and were distributed to participants during the period.

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
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+ Details

Commitments, Contingencies and Other (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligation, Fiscal Year Maturity

Aggregate annual future minimum payments under non-cancelable agreements as of September 30, 2023 are as follows:


Year	Non-cancelable agreements
The remainder of 2023	$	4,836
2024	21,450
2025	17,441
2026	286
2027	13
Total	$	44,026

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Operating activities:
Net (loss) income from continuing operations	$ (2,679)	$ 1,086	$ (22,128)	$ 5,970
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization			21,997	24,019
Amortization of debt issuance costs			1,136	1,030
Loss on disposals of fixed assets	0	0	25	1
Gain on sale of DXP Business	0	73	0	(2,549)
Amortization of bond discount			72	66
Deferred income taxes			76	(56)
Stock-based compensation			4,605	4,692
Impairment of STI Loan and iQmetrix receivable			6,317	0
Operating lease impairment, net			2,075	175
Changes in operating assets and liabilities:
Accounts receivable, net			14,717	401
Prepaid expenses and other current assets			(1,240)	2,684
Accounts payable			(1,337)	(1,319)
Accrued expenses			(7,420)	(164)
Deferred revenues			5,427	(6,839)
Other liabilities			(5,086)	(17,033)
Net cash provided by operating activities			19,236	11,078
Investing activities:
Purchases of fixed assets			(1,229)	(1,021)
Additions to capitalized software			(14,660)	(15,250)
Proceeds from the sale of DXP Business			0	8,000
Net cash used in investing activities			(15,889)	(8,271)
Financing activities:
Taxes paid on withholding shares			(249)	(80)
Drawdown on A/R Facility			6,000	0
Repayment of A/R Facility			(6,000)	0
Net cash used in financing activities			(7,496)	(10,975)
Effect of exchange rate changes on cash			(198)	(752)
Net decrease in cash and cash equivalents			(4,347)	(8,920)
Cash and cash equivalents, beginning of period			21,921	31,504	$ 31,504
Cash and cash equivalents, end of period	$ 17,574	$ 22,584	17,574	22,584	$ 21,921
Series B Preferred Stock
Financing activities:
Series B Preferred dividend paid in cash			(7,247)	(4,157)
Redemption of Series B Preferred stock			0	(6,738)
Supplemental disclosures of non-cash investing and financing activities:
Paid in kind dividends on Series B Preferred stock			$ 0	$ 2,581

Capital Structure

9 Months Ended

Sep. 30, 2023

Stockholders' Equity Note [Abstract]

Capital Structure

Common Stock

Each holder of common stock is entitled to vote on all matters and is entitled to one vote for each share held. Dividends on common stock will be paid when, and if, declared by the Company’s Board of Directors. No dividends have ever been declared or paid by the Company.

Preferred Stock

The Company’s Board of Directors (the “Board”) is authorized to issue preferred shares and has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences of preferred stock.

Series B Non-Convertible Preferred Stock

On June 30, 2021, the Company closed a private placement of 75,000 shares of its Series B Perpetual Non-Convertible Preferred Stock, par value $0.0001 per share, with an initial liquidation preference of $1,000 per share (the “Series B Preferred Stock”), for net proceeds of $72.5 million (the “Series B Transaction”). The sale of the Series B Preferred Stock was pursuant to the Series B Preferred Stock Purchase Agreement, dated as of June 24, 2021 (the “Series B Purchase Agreement”), between the Company and B. Riley Principal Investments, LLC (“BRPI”).

In connection with the closing of the Series B Transaction, the Company (i) filed a Certificate of Designation with the State of Delaware setting forth the rights, preferences, privileges, qualifications, restrictions and limitations on the Series B Preferred Stock (the “Series B Certificate”) and (ii) entered into an Investor Rights Agreement with B. Riley Financial, Inc. (“B. Riley Financial”) and BRPI setting forth certain governance and registration rights of B. Riley Financial with respect to the Company.

Certificate of Designation of the Series B Preferred Stock

The rights, preferences, privileges, qualifications, restrictions and limitations of the shares of Series B Preferred Stock are set forth in the Series B Certificate. Under the Series B Certificate, the holders of the Series B Preferred Stock are entitled to receive, on each share of Series B Preferred Stock on a quarterly basis, an amount equal to the dividend rate, as described in the following sentence, divided by four and multiplied by the then-applicable Liquidation Preference per share of Series B Preferred Stock (collectively, the “Preferred Dividends”). The dividend rate is (1) 9.5% per annum for the period commencing on June 30, 2021 and ending on and including December 31, 2021, (2) 13% per annum for the year commencing on January 1, 2022 and ending on and including December 31, 2022; and (3) 14% per annum for the year commencing on January 1, 2023 and thereafter. The Preferred Dividends will be due in cash on January 1, April 1, July 1 and October 1 of each year (each, a “Series B Dividend Payment Date”). The Company may choose to pay the Series B Preferred Dividends in cash or in additional shares of Series B Preferred Stock. In the event the Company does not declare and pay a dividend in cash on any Series B

Dividend Payment Date, the unpaid amount of the Preferred Dividend will be added to the Liquidation Preference. As of September 30, 2023, the Liquidation Value and Redemption Value of the Series B Preferred Shares was $73.2 million.

On and after the fifth anniversary of the date of issuance, holders of shares of Series B Preferred Stock will have the right to cause the Company to redeem each share of Series B Preferred Stock for cash in an amount equal to the sum of the current liquidation preference and any accrued dividends. Each share of Series B Preferred Stock will also be redeemable at the option of the holder upon the occurrence of a “Fundamental Change” at (i) par in the case of a payment in cash or (ii) 1.5 times par in the case of payment in shares of Common Stock (such shares being, “Registrable Securities”), subject to certain limitations on the amount of stock that could be issued to the holders of Series B Stock. In addition, the Company will be permitted to redeem outstanding shares of the Series B Preferred Stock at any time for the sum of the then-applicable Liquidation Preference and the accrued but unpaid dividends. Pursuant to the Series B Certificate, the Company will be required to use (i) the first $50.0 million of proceeds from certain transactions (i.e., disposition, sale of assets, tax refunds) received by the Company to redeem for cash, shares of the Series B Preferred Stock, on a pro rata basis among each holder of Series B Preferred Stock and (ii) the next $25.0 million of proceeds from certain transactions received by the Company may be used by the Company to buy back shares of Common Stock and to the extent, not used for such purpose by the Company, to redeem, for cash, shares of the Series B Preferred Stock, on a pro rata basis among each holder of the Series B Preferred Stock.

The Company shall be required to obtain the prior written consent of the holders holding at least a majority of the outstanding shares of the Series B Preferred Stock before taking certain actions, including: (i) certain dividends, repayments and redemptions; (ii) any amendment to the Company’s certificate of incorporation that adversely affects the rights, preferences, privileges or voting powers of the Series B Preferred Stock; and (iii) issuances of stock ranking senior or equivalent to shares of the Series B Preferred Stock (including additional shares of the Series B Preferred Stock) in the priority of payment of dividends or in the distribution of assets upon any liquidation, dissolution or winding up of the Company. Other than with respect to the foregoing consent rights, the Series B Preferred Stock is non-voting stock.

Investor Rights Agreement

On June 30, 2021, the Company, B. Riley Financial and BRPI entered into an Investor Rights Agreement (the “Investor Rights Agreement”). Pursuant to the Investor Rights Agreement, for so long as affiliates of B. Riley Financial beneficially own at least 10% of the outstanding shares of common stock (unless such equity threshold percentage is not met due to dilution from equity issuances), B. Riley Financial is entitled to nominate one Class II director (the “B. Riley Nominee”) to the Company’s board of directors (the “Board”), who shall be an employee of B. Riley Financial or its affiliates and is approved by the Board, such approval not to be unreasonably withheld. For so long as affiliates of B. Riley Financial beneficially own 5% or more but less than 10% of the outstanding shares of common stock (unless such equity threshold percentage is not met due to dilution from equity issuances), B. Riley Financial is entitled to certain board observer rights.

A summary of the Company’s Series B Perpetual Non-Convertible Preferred Stock balance at September 30, 2023 and changes during the nine months ended September 30, 2023, are presented below:


	Series B Preferred Stock
	Shares	Amount
Balance at December 31, 2022	71	$	68,348


Amortization of preferred stock issuance costs	—	—
Issuance of preferred PIK dividend	—	—



Redemption of Series B preferred shares	—	—
Balance at September 30, 20231	71	$	68,348

________________________________

1 Series B preferred stock net principal balance of $68.3 million is presented as gross principal balance of $70.7 million net of $2.4 million unamortized issuance costs.

The Company paid the accrued Series B Perpetual Non-Convertible Preferred Stock dividend of $7.2 million in cash for the nine months ended September 30, 2023. On October 3, 2023 the Company paid the accrued Series B Perpetual Non-Convertible Preferred Stock dividend of $2.5 million in cash.

Stock Plans

At the annual meeting of stockholders the Company held on June 16, 2022, the stockholders of the Company approved and adopted the Certificate of Amendment of the Company’s restated certificate of incorporation to increase the total number of shares of authorized common stock from 100 million shares to 150 million shares.

As of September 30, 2023, there were 4.1 million shares available for the grant or award under the Company’s 2015 Equity Incentive Plan and 1.1 million shares available for the grant or award under the Company’s 2017 New Hire Equity Incentive Plan.

The Company’s performance based cash unit (“PBCU”) awards granted to executives under the Long Term Incentive (“LTI”) Plans have been accounted for as liability awards, due to the Company’s intent and the ability to settle such awards in cash upon vesting and the Company has reflected such awards in accrued expenses. As of September 30, 2023, the liability for such awards is approximately $0.8 million.

Stock-Based Compensation

The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by operating expense categories, as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
Cost of revenues	$	163	$	232		$	576	$	592
Research and development	373		494			1,362		1,366
Selling, general and administrative	705		1,075			2,667		2,734
Total stock-based compensation expense	$	1,241	$	1,801		$	4,605	$	4,692

The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by award type, as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
Stock options	$	428	$	779		$	1,395	$	2,019
Restricted stock awards	929		933			2,794		2,320
Performance based cash units	(116)		89			416		353

Total stock-based compensation before taxes	$	1,241	$	1,801		$	4,605	$	4,692
Tax benefit	$	243	$	364		$	918	$	931

The total stock-based compensation cost related to unvested equity awards as of September 30, 2023 was approximately $6.3 million. The expense is expected to be recognized over a weighted-average period of approximately 1.7 years.

The total stock-based compensation cost related to unvested performance based cash units as of September 30, 2023 was approximately $0.4 million. The expense is expected to be recognized over a weighted-average period of approximately 1.4 years.

Stock Options

The Company uses the Black-Scholes option pricing model for determining the estimated fair value for stock options. The weighted-average assumptions used in the Black-Scholes option pricing model are as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022				2023			2022
Expected stock price volatility	72.2		%	74.1		%		72.6		%	74.1		%
Risk-free interest rate	4.3		%	3.0		%		4.2		%	3.1		%
Expected life of options (in years)	4.32			4.17				4.28			4.15
Expected dividend yield	0.0		%	0.0		%		0.0		%	0.0		%
Weighted-average fair value of the options	$	0.55		$	0.70			$	0.59		$	0.71

The following table summarizes information about stock options outstanding as of September 30, 2023:


Options	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2022	6,641	$	3.80
Options Granted	24	1.00
Options Exercised	—	—
Options Cancelled	(300)	15.05
Outstanding at September 30, 2023	6,365	$	3.26	4.65	$	1

Vested and exercisable at September 30, 2023	3,895	$	4.31	4.08	$	—

The total intrinsic value of stock options exercisable was nil at September 30, 2023 and 2022, respectively. The total intrinsic value of stock options exercised was nil and nil during the nine months ended September 30, 2023 and 2022, respectively.

Awards of Restricted Stock and Performance Stock

A summary of the Company’s unvested restricted stock at September 30, 2023, and changes during the nine months ended September 30, 2023, is presented below:


Unvested restricted stock	Number of Awards	Weighted- Average Grant Date Fair Value
Unvested at December 31, 2022	4,385	$	1.82
Granted	3,288	0.95
Granted adjustment1	(395)	3.25
Vested	(1,810)	1.71
Forfeited	(139)	1.78
Unvested at September 30, 2023	5,329	$	1.22

___________________________

Restricted stock awards are granted subject to service conditions or service and performance conditions. Restricted stock awards (“RSA”) and performance based restricted stock awards (“PRSA”) are measured at the closing stock price at the date of grant and the expense is recognized straight line over the requisite service period.

Performance Based Cash Units

Performance based cash units generally vest at the end of a three-year period based on service and achievement of certain performance objectives determined by the Company’s Board of Directors.

A summary of the Company’s outstanding performance based cash units at September 30, 2023 and changes during the nine months ended September 30, 2023, is presented below:


Outstanding performance based cash units	Number of Units	Period End Fair Value
Outstanding at December 31, 2022	5,872	$	0.62
Granted	1,206	—
Granted adjustment1	(1,283)	—
Vested and distributed2	—	—
Forfeited	(66)	—
Outstanding at September 30, 2023	5,729	$	0.96

___________________________

1 Includes changes in the outstanding performance based cash units due to performance adjustments.

2 Includes earned PBCU that vested and were distributed to participants during the period.

Performance based cash units are measured at the closing stock price at the reporting period end date and the expense is recognized straight line over the requisite service period. The expense for the period will increase or decrease based on updated fair values of these units at each reporting date. Unvested units’ fluctuations are shown as adjustments to units granted in the table above. These fluctuations are based on the percentage achievement of the performance metrics at the end of each reporting period.

Restructuring (Tables)

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Schedule of the Restructuring Accrual and Changes

A summary of the Company’s restructuring accrual at September 30, 2023 and changes during the nine months ended September 30, 2023, are presented below:


	Balance at December 31, 2022		Charges		Payments		Other Adjustments		Balance at September 30, 2023
Employment termination costs	$	832	$	394	$	(1,225)	$	—	$	1

Additional Financial Information (Tables)

9 Months Ended

Sep. 30, 2023

Other Income and Expenses [Abstract]

Schedule of Components of Other Income (expense), Net

The following table sets forth the components of Other Income (expense), net included in the Condensed Consolidated Statements of Operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
FX gains1	$	4,454	$	4,810	$	1,091	$	10,424
Government refunds	—		35		—		128

Loss on disposal of fixed assets	—		—		(25)		(1)
Other2	1		(408)		4		(345)
Total	$	4,455	$	4,437	$	1,070	$	10,206

________________________________

1 Represents foreign exchange gains and losses.

2 Represents an aggregate of individually immaterial transactions.

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Nov. 06, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-40574
Entity Registrant Name	SYNCHRONOSS TECHNOLOGIES, INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1594540
Entity Address, Address Line One	200 Crossing Boulevard
Entity Address, Address Line Two	8th Floor
Entity Address, City or Town	Bridgewater
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08807
City Area Code	866
Local Phone Number	620-3940
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		93,336,771
Entity Central Index Key	0001131554
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Common Stock, $.0001 par value
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $.0001 par value
Trading Symbol	SNCR
Security Exchange Name	NASDAQ
8.375% Senior Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	8.375% Senior Notes due 2026
Trading Symbol	SNCRL
Security Exchange Name	NASDAQ

Basis of Presentation and Consolidation (Policies)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Consolidation

Recently Issued Accounting Standards

Recent accounting pronouncements adopted

Standard

Description

Effect on the financial statements

Update 2022-04 - Liabilities—Supplier Finance Programs
(Subtopic 405-50). Disclosure of Supplier Finance Program Obligations

The Company evaluated these changes and determined that they have no material impact on the Company’s consolidated financial position or results of operations upon adoption.

Date of adoption: January 1, 2023

Fair Value Measurements

•Level 1 - Observable inputs - quoted prices in active markets for identical assets and liabilities;

•Level 3 - Unobservable inputs - includes amounts derived from valuation models where one or more significant inputs are unobservable and require the Company to develop relevant assumptions.

Revenue - Contract Assets and Liabilities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Contract asset, balance	$ 6,100
Changes In Contract Liabilities [Roll Forward]
Balance - January 1, 2023	14,183
Revenue recognized in the period	(172,039)
Amounts billed but not initially recognized as revenue	177,366
Balance - September 30, 2023	19,510
Revenue recognized	$ 12,700

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recognized an income tax expense of approximately $2.7 million and $1.7 million during the nine months ended September 30, 2023 and 2022, respectively. The effective tax rate was approximately (13.9)% for the nine months ended September 30, 2023,which was lower than the U.S. federal statutory rate primarily due to pre-tax losses in jurisdictions where full valuation allowances have been recorded and certain jurisdictions projecting current income tax expense. The Company’s income tax expense for the period is driven by the enacted Internal Revenue Code Section 174 rules that require the Company to amortize qualifying research and development expenses over five years or fifteen years depending on the jurisdiction where such activities are performed and by operating income generated in certain foreign jurisdictions. The Company’s effective tax rate was approximately 21.9% for the nine months ended September 30, 2022, which approximated the U.S. federal statutory rate. The Company continues to consider all available evidence, including historical profitability and projections of future taxable income together with new evidence, both positive and negative, that could affect the view of the future realization of deferred tax assets. As a result of the assessment, no change was recorded by the Company to the valuation allowance during the nine months ended September 30, 2023. On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was signed into law. This legislation includes significant changes relating to tax, climate change, energy and health care. Among other provisions, the IRA introduces a corporate alternative minimum tax assessed on financial statement income of certain large corporations and an excise tax on share repurchases. The IRA does not have a material impact on the Company’s financial statements in the period ended September 30, 2023. During 2021 the Internal Revenue Service commenced an audit of certain of the Company’s prior year U.S. federal income tax filings, including the 2013 through 2020 tax years. The audit is currently ongoing and while the receipt of the associated refunds would materially improve its financial position, the Company does not believe that the results of this audit will have a material effect on its results of operations. The Company received $4.3 million in federal tax refunds in the second quarter of 2022. There is no change to the Company’s position on the remaining tax refunds.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Commitments, Contingencies and Other - Aggregate Annual Future Minimum Lease Payments Under Non-Cancelable Leases (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
The remainder of 2023	$ 4,836
2024	21,450
2025	17,441
2026	286
2027	13
Total	$ 44,026

Earnings per Common Share (EPS)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings per Common Share (EPS)

Earnings per Common Share (“EPS”) Basic EPS is computed based upon the weighted average number of common shares outstanding for the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of the Company’s common stock for the year. The Company includes participating securities (Redeemable Convertible Preferred Stock - Participation with Dividends on Common Stock that contain preferred dividend) in the computation of EPS pursuant to the two-class method. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.

The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share from operations.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
Numerator - Basic:
Net (loss) income from operations	$	(2,679)	$	1,086		$	(22,128)	$	5,970
Net (loss) income attributable to redeemable noncontrolling interests	(18)		(66)			10		(256)
Preferred stock dividend	(2,474)		(2,298)			(7,423)		(7,255)



Net loss attributable to Synchronoss	$	(5,171)	$	(1,278)		$	(29,541)	$	(1,541)

Numerator - Diluted:
Net loss attributable to Synchronoss	$	(5,171)	$	(1,278)		$	(29,541)	$	(1,541)




Net loss attributable to Synchronoss	$	(5,171)	$	(1,278)		$	(29,541)	$	(1,541)

Denominator:
Weighted average common shares outstanding — basic	87,904		86,400			87,069		86,156





Weighted average common shares outstanding — diluted	87,904		86,400			87,069		86,156


Earnings (loss) per share:



Basic	$	(0.06)	$	(0.01)		$	(0.34)	$	(0.02)



Diluted	$	(0.06)	$	(0.01)		$	(0.34)	$	(0.02)



Unvested shares of restricted stock awards	5,329		4,779			5,329		4,779

Earnings per Common Share (EPS) (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of Reconciliation of the Numerator and Denominator Used in Computing Basic and Diluted Net Income Attributable to Common Stockholders Per Common Share

The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share from operations.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
Numerator - Basic:
Net (loss) income from operations	$	(2,679)	$	1,086		$	(22,128)	$	5,970
Net (loss) income attributable to redeemable noncontrolling interests	(18)		(66)			10		(256)
Preferred stock dividend	(2,474)		(2,298)			(7,423)		(7,255)



Net loss attributable to Synchronoss	$	(5,171)	$	(1,278)		$	(29,541)	$	(1,541)

Numerator - Diluted:
Net loss attributable to Synchronoss	$	(5,171)	$	(1,278)		$	(29,541)	$	(1,541)




Net loss attributable to Synchronoss	$	(5,171)	$	(1,278)		$	(29,541)	$	(1,541)

Denominator:
Weighted average common shares outstanding — basic	87,904		86,400			87,069		86,156





Weighted average common shares outstanding — diluted	87,904		86,400			87,069		86,156


Earnings (loss) per share:



Basic	$	(0.06)	$	(0.01)		$	(0.34)	$	(0.02)



Diluted	$	(0.06)	$	(0.01)		$	(0.34)	$	(0.02)



Unvested shares of restricted stock awards	5,329		4,779			5,329		4,779

Revenue (Tables)

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue


	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
	Cloud		NetworkX		Messaging		Total		Cloud		NetworkX		Messaging		Total
Geography:
Americas	$	36,714	$	6,077	$	1,504	$	44,295	$	36,811	$	8,868	$	1,907	$	47,586
APAC	1,328		795		5,176		7,299		114		767		7,479		8,360
EMEA	1,685		—		2,369		4,054		1,633		—		2,317		3,950
Total	$	39,727	$	6,872	$	9,049	$	55,648	$	38,558	$	9,635	$	11,703	$	59,896

Service Line:
Professional Services	$	4,248	$	267	$	1,616	$	6,131	$	3,192	$	626	$	2,334	$	6,152
Transaction Services	—		1,075		—		1,075		161		1,655		—		1,816
Subscription Services	35,479		5,201		7,433		48,113		35,205		5,456		7,684		48,345
License	—		329		—		329		—		1,898		1,685		3,583
Total	$	39,727	$	6,872	$	9,049	$	55,648	$	38,558	$	9,635	$	11,703	$	59,896


	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
	Cloud		NetworkX		Messaging		Total		Cloud		NetworkX		Messaging		Total
Geography:
Americas	$	111,674	$	19,486	$	5,102	$	136,262	$	118,369	$	28,308	$	6,908	$	153,585
APAC	4,122		2,365		16,793		23,280		177		2,433		20,640		23,250
EMEA	5,446		—		8,081		13,527		4,990		1,495		7,678		14,163
Total	$	121,242	$	21,851	$	29,976	$	173,069	$	123,536	$	32,236	$	35,226	$	190,998

Service Line:
Professional Services	$	13,278	$	907	$	5,379	$	19,564	$	9,780	$	3,642	$	8,117	$	21,539
Transaction Services	185		2,833		—		3,018		707		4,404		56		5,167
Subscription Services	107,375		15,946		22,858		146,179		113,049		20,104		24,236		157,389
License	404		2,165		1,739		4,308		—		4,086		2,817		6,903
Total	$	121,242	$	21,851	$	29,976	$	173,069	$	123,536	$	32,236	$	35,226	$	190,998

Schedule of Significant Changes in the Contract Liabilities Balance

Significant changes in the contract liabilities balance (current and non-current) during the period are as follows:


	Contract Liabilities1
Balance - January 1, 2023	$	14,183
Revenue recognized in the period	(172,039)
Amounts billed but not initially recognized as revenue	177,366


Balance - September 30, 2023	$	19,510

________________________________

1 Comprised of Deferred Revenue. $12.7 million of revenue recognized in the period was included in the contract liability balance at the beginning of the period.

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Held and their Related Classifications Under the Fair Value Hierarchy

The following is a summary of assets, liabilities and redeemable noncontrolling interests and their related classifications under the fair value hierarchy:


	September 30, 2023
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and cash equivalents	$	17,574	$	17,574	$	—	$	—


Total assets	$	17,574	$	17,574	$	—	$	—



Temporary equity
Redeemable noncontrolling interests1	$	12,500	$	—	$	—	$	12,500
Total temporary equity	$	12,500	$	—	$	—	$	12,500


	December 31, 2022
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and cash equivalents	$	21,921	$	21,921	$	—	$	—


Total assets	$	21,921	$	21,921	$	—	$	—



Temporary Equity
Redeemable noncontrolling interests1	$	12,500	$	—	$	—	$	12,500
Total temporary equity	$	12,500	$	—	$	—	$	12,500

________________________________

1 Put arrangements held by the noncontrolling interests in certain of the Company’s joint venture.

Accumulated Other Comprehensive (Loss) / Income

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive (Loss) / Income

The changes in accumulated other comprehensive (loss) income during the nine months ended September 30, 2023 were as follows:


	Balance at December 31, 2022		Other comprehensive loss		Tax effect		Balance at September 30, 2023
Foreign currency	$	(40,611)	$	(3,328)	$	—	$	(43,939)
Unrealized loss on intercompany foreign currency transactions	(3,520)		—		—		(3,520)

Total	$	(44,131)	$	(3,328)	$	—	$	(47,459)

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business General Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) is a leading provider of white label cloud, messaging, digital and network management solutions that enable our customers to keep subscribers, systems, networks and content in sync. The Synchronoss Personal CloudTM solution is designed to create an engaging and trusted customer experience through ongoing content management and engagement. The Synchronoss Personal CloudTM platform is a secure and highly scalable, white label platform that allows our customers’ subscribers to backup and protect, engage with, and manage their personal content and gives our operator customers the ability to increase average revenue per user (“ARPU”) and reduce churn. Our Synchronoss Personal CloudTM platform is specifically designed to support smartphones, tablets, desktops computers, laptops, wearables for health and wellness, cameras, TVs, security cameras, routers, as well as connected automobiles and homes. Synchronoss’ Messaging platform powers mobile messaging and mailboxes for hundreds of millions of telecommunication subscribers. Our Advanced Messaging platform is a powerful, secure, intelligent, white label messaging platform that expands capabilities for communications service provider and multi-service providers to offer P2P messaging via Rich Communications Services (“RCS”). Our Mobile Messaging Platform (“MMP”) is poised to provide a single standard ecosystem for onboarding and management to brands, advertisers and message wholesalers. The Synchronoss NetworkX (formerly Digital) products provide operators with the tools and software to design their physical network, streamline their infrastructure purchases, and manage and optimize comprehensive network expenses for leading top tier carriers around the globe. On October 31, 2023 (the “Closing Date”), Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) and certain of its affiliated entities (such entities, together with the Company, the “Company Group”) entered into an Asset Purchase Agreement (the “Agreement”) with Lumine Group Software Solutions (Ireland) Limited, a private limited company incorporated under the laws of Ireland, Lumine Group UK Holdco Ltd, Incognito Software Systems Inc., Lumine Group US Holdco, Inc., Lumine Group Australia Holdco Pty Ltd, Openwave Messaging (Ireland) Limited, Razersight Software Solutions Ireland Limited, Spatial Software Solutions Ireland Limited, Razorsight Software Solutions US Inc., and Openwave Messaging US Inc. (such entities, the “Buyer”), pursuant to which the Company Group sold its Messaging and NetworkX businesses (the “Messaging and Digital Businesses”) to Buyer (the “Transaction”) for a total purchase price of up to $41,800,000 (the “Purchase Price”), and Buyer assumed certain liabilities of the Messaging and Digital Businesses. The Company has included additional detail of the transaction in footnote 15. Subsequent events.

Capital Structure - Additional Information (Details)			9 Months Ended
Capital Structure - Additional Information (Details)	Oct. 03, 2023 USD ($)	Jun. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) vote $ / shares shares	Sep. 30, 2022 USD ($)	Dec. 31, 2022 $ / shares shares	Jun. 16, 2022 shares	Jun. 15, 2022 shares
Class of Stock [Line Items]
Dividends			$ 0
Common stock, shares authorized (in shares) \| shares			150,000,000		150,000,000	150,000,000	100,000,000
Minimum
Class of Stock [Line Items]
Preferred stock, ownership percentage		5.00%
Maximum
Class of Stock [Line Items]
Preferred stock, ownership percentage		10.00%
2015 Plan
Class of Stock [Line Items]
Number of shares available for grant (in shares) \| shares			4,100,000
Liability, accrued expenses, non-vested			$ 800,000
2017 New Hire Plan
Class of Stock [Line Items]
Number of shares available for grant (in shares) \| shares			1,100,000
Common Stock
Class of Stock [Line Items]
Number of votes per share (vote) \| vote			1
Series B Preferred Stock
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) \| $ / shares		$ 0.0001	$ 0.0001		$ 0.0001
Preferred stock, liquidation preference (in dollars per share) \| $ / shares		$ 1,000
Preferred stock, dividend rate, percentage one		9.50%
Preferred stock, dividend rate, percentage two		13.00%
Preferred stock, dividend rate, percentage three		14.00%
Liquidation and redemption value			$ 73,200,000
Multiplier of par		1.5
Proceeds from sale of stock transactions used for redemption of shares		$ 50,000,000
Proceeds from sale of stock transactions, used for redemption of shares and buy back of shares		$ 25,000,000
Series B Preferred dividend paid in cash			$ 7,247,000	$ 4,157,000
Series B Preferred Stock \| Subsequent Event
Class of Stock [Line Items]
Series B Preferred dividend paid in cash	$ 2,500,000
Series B Preferred Stock \| Private Placement
Class of Stock [Line Items]
Number of shares issued in transaction (in shares) \| shares		75,000
Consideration received on transaction		$ 72,500,000

Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
The remainder of 2023	$ 2,010
2024	8,241
2025	7,926
2026	7,856
2027	6,244
Thereafter	4,271
Total future lease payments	36,548
Less: amount representing interest	(5,920)
Present value of future lease payments (lease liability)	$ 30,628	$ 34,719

Fair Value Measurements - Assets and Liabilities Held and their Related Classifications Under the Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 17,574	$ 21,921
Total assets	17,574	21,921
Temporary Equity
Redeemable noncontrolling interests	12,500	12,500
Total temporary equity	12,500	12,500
(Level 1)
Assets
Cash and cash equivalents	17,574	21,921
Total assets	17,574	21,921
Temporary Equity
Redeemable noncontrolling interests	0	0
Total temporary equity	0	0
(Level 2)
Assets
Cash and cash equivalents	0	0
Total assets	0	0
Temporary Equity
Redeemable noncontrolling interests	0	0
Total temporary equity	0	0
(Level 3)
Assets
Cash and cash equivalents	0	0
Total assets	0	0
Temporary Equity
Redeemable noncontrolling interests	12,500	12,500
Total temporary equity	$ 12,500	$ 12,500

Debt - Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term Debt	$ 135,792	$ 134,584
2021 Non-Convertible Senior Notes due 2026: \| Senior Notes
Debt Instrument [Line Items]
Long-term Debt	103,833	101,293
2021 Non-Convertible Senior Notes due 2026: \| Senior Notes \| (Level 1)
Debt Instrument [Line Items]
Long-term Debt	0	0
2021 Non-Convertible Senior Notes due 2026: \| Senior Notes \| (Level 2)
Debt Instrument [Line Items]
Long-term Debt	103,833	101,293
2021 Non-Convertible Senior Notes due 2026: \| Senior Notes \| (Level 3)
Debt Instrument [Line Items]
Long-term Debt	$ 0	$ 0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Amortization of debt issuance costs			$ 1,136	$ 1,030
Amortization of debt discount			72	66
Tax - ASC 740/FIN 48 Interest	$ 77	$ 92	225	92
Other	38	43	102	81
Total	3,482	3,463	10,397	10,131
Senior Notes \| 2021 Non-Convertible Senior Notes due 2026:
Debt Instrument [Line Items]
Amortization of debt issuance costs	388	352	1,136	1,030
Interest on borrowings	2,954	2,954	8,862	8,862
Amortization of debt discount	$ 25	$ 22	$ 72	$ 66

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount of the cost of borrowed funds accounted for as interest expense.

+ References + Details

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 17,574	$ 21,921
Accounts receivable, net	32,292	47,024
Prepaid & other current assets	36,037	36,342
Total current assets	85,903	105,287
Non-current assets:
Property and equipment, net	4,093	4,582
Operating lease right-of-use assets	15,977	20,863
Goodwill	209,476	210,889
Intangible assets, net	41,588	47,536
Loan receivable	0	4,834
Other assets, non-current	4,170	4,081
Total non-current assets	275,304	292,785
Total assets	361,207	398,072
Current liabilities:
Accounts payable	12,924	14,209
Accrued expenses	44,720	52,115
Deferred revenues, current	16,884	13,859
Total current liabilities	74,528	80,183
Long-term debt, net of debt issuance costs	135,792	134,584
Deferred tax liabilities	542	466
Deferred revenues, non-current	2,626	324
Leases, non-current	25,186	29,637
Other non-current liabilities	2,527	3,933
Total liabilities	241,201	249,127
Commitments and contingencies:
Redeemable noncontrolling interest	12,500	12,500
Stockholders’ equity:
Common stock, $0.0001 par value; 150,000 shares authorized, 93,336 and 90,853 issued and outstanding at September 30, 2023 and December 31, 2022, respectively	9	9
Additional paid-in capital	485,355	488,848
Accumulated other comprehensive loss	(47,459)	(44,131)
Accumulated deficit	(398,747)	(376,629)
Total stockholders’ equity	39,158	68,097
Total liabilities and stockholders’ equity	361,207	398,072
Series B Preferred Stock
Current liabilities:
Series B Non-Convertible Perpetual Preferred Stock, $0.0001 par value; 150 shares authorized, 71 and 71 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	$ 68,348	$ 68,348

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease cost	$ 1,541	$ 1,677	$ 4,749	$ 5,691
Other lease costs and income:
Variable lease costs	256	193	1,082	1,364
Operating lease impairments, net	0	0	2,075	175
Sublease income	(1,003)	(684)	(2,541)	(2,058)
Total net lease cost	$ 794	$ 1,186	$ 5,365	$ 5,172

Additional Financial Information

9 Months Ended

Sep. 30, 2023

Other Income and Expenses [Abstract]

Additional Financial Information

Other Income (expense), net

The following table sets forth the components of Other Income (expense), net included in the Condensed Consolidated Statements of Operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
FX gains1	$	4,454	$	4,810	$	1,091	$	10,424
Government refunds	—		35		—		128

Loss on disposal of fixed assets	—		—		(25)		(1)
Other2	1		(408)		4		(345)
Total	$	4,455	$	4,437	$	1,070	$	10,206

________________________________

1 Represents foreign exchange gains and losses.

2 Represents an aggregate of individually immaterial transactions.

Additional Financial Information - Components of Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Other Income and Expenses [Abstract]
FX (losses) gains	$ 4,454	$ 4,810	$ 1,091	$ 10,424
Government refunds	0	35	0	128
Loss on disposals of fixed assets	0	0	(25)	(1)
Other	1	(408)	4	(345)
Total	$ 4,455	$ 4,437	$ 1,070	$ 10,206

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (2,679)	$ 1,086	$ (22,128)	$ 5,970
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(8,069)	(13,331)	(3,328)	(28,647)
Net income on inter-company foreign currency transactions	0	35	0	115
Total other comprehensive loss	(8,069)	(13,296)	(3,328)	(28,532)
Comprehensive loss	(10,748)	(12,210)	(25,456)	(22,562)
Comprehensive (loss) income attributable to redeemable noncontrolling interests	(18)	(66)	10	(256)
Comprehensive loss attributable to Synchronoss	$ (10,766)	$ (12,276)	$ (25,446)	$ (22,818)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

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Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

Commitments, Contingencies and Other

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Other

Non-cancelable agreements

The Company has various non-cancelable arrangements such as services for hosting, support, and software that expire at various dates, with the latest expiration in 2027.

Aggregate annual future minimum payments under non-cancelable agreements as of September 30, 2023 are as follows:


Year	Non-cancelable agreements
The remainder of 2023	$	4,836
2024	21,450
2025	17,441
2026	286
2027	13
Total	$	44,026

Legal Matters

In the ordinary course of business, the Company is regularly subject to various claims, suits, regulatory inquiries and investigations. The Company records a liability for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable, and the loss can be reasonably estimated. Management has also identified certain other legal matters where they believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against the Company, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the Company’s business, financial position, results of operations, or cash flows, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of the Company.

In the third quarter of 2017, the SEC and Department of Justice (the “DoJ”) initiated investigations in connection with certain financial transactions that the Company effected in 2015 and 2016 and its disclosure of and accounting for such transactions, which the Company restated in the third quarter of 2018 in its restated annual and quarterly financial statements for 2015 and 2016. On June 7, 2022 the SEC approved the Offer of Settlement and filed an Order Instituting Cease-And-Desist Proceedings pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-And-Desist Order (the “SEC Order”). Pursuant to the terms of the SEC Order, the Company consented to pay a civil penalty in the amount of $12.5 million in equal quarterly installments over two years and to cease and desist from committing or causing any violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and the associated rules thereunder. In addition, failure to comply with the provisions of the SEC Order could result in further actions by one or both governmental agencies which could have a material adverse effect on the Company’s results of operations. The expense associated with this settlement of the SEC Order has previously been accrued in the Company’s financial statements. Also on June 7, 2022, the SEC filed a civil action against two former members of the Company’s management team, alleging misconduct arising out of the restated transactions that took place in 2015 and 2016 investigated by the SEC as set forth above. The Company may be required to indemnify the former members of management in that action for certain costs and expenses, including reasonable attorney’s fees. At this time it is not possible for us to estimate the amount, if any, of such indemnification obligations.

On or about July 12, 2023 Company filed a complaint in the Superior Court of the State of Delaware against iQmetrix Global Ltd. (“iQmetrix") for breach of the asset purchase and transition services agreements by and between the Company and iQmetrix as a result of iQmetrix’s failure to pay amounts due under those agreements in excess of $1,200,000. On September 11, 2023 iQmetrix filed its “Answer Defenses and Counterclaims” against Company, claiming Company breached the asset purchase, transition services and software license agreements, committed fraud and breached the implied covenant of good faith and fair dealing entitling iQmetrix to an amount to be determined at trial. On October 10, 2023, Company filed its “Answer to Defendant’s Counterclaims” denying all counts asserted by iQmetrix and asserting certain affirmative defenses thereto. The Company believes that the counterclaims are without merit, and the Company intends to defend all such counterclaims.

Due to the inherent uncertainty of litigation, the Company cannot predict the outcome of the litigation and can give no assurance that the asserted claims will not have a material adverse effect on its financial position, prospects, or results of operations.

Except as set forth above, the Company is not currently subject to any other legal proceedings that could have a material adverse effect on its operations; however, the Company may from time to time become a party to various legal proceedings arising in the ordinary course of our business.

Commitments, Contingencies and Other - Legal Matters (Details) $ in Thousands	Jul. 12, 2023 USD ($)	Jun. 07, 2022 USD ($) complaint
Commitments and Contingencies Disclosure [Abstract]
Loss contingency, damages awarded		$ 12,500
Loss contingency, payment term		2 years
Loss contingency, number of defendants \| complaint		2
Loss contingency, damages sought, value	$ 1,200

Accumulated Other Comprehensive (Loss) / Income - Changes in Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Changes in accumulated other comprehensive income (loss)
Other comprehensive loss	$ (3,328)
Tax effect	0
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss)
Beginning balance	(44,131)
Ending balance	(47,459)
Foreign currency
Changes in accumulated other comprehensive income (loss)
Beginning balance	(40,611)
Other comprehensive loss	(3,328)
Tax effect	0
Ending balance	(43,939)
Unrealized loss on intercompany foreign currency transactions
Changes in accumulated other comprehensive income (loss)
Beginning balance	(3,520)
Other comprehensive loss	0
Tax effect	0
Ending balance	$ (3,520)

- Definition

Amount before tax, after reclassification adjustments of other comprehensive income (loss).

+ References + Details

- Definition

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

+ References

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-Section S99
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-URI https://asc.fasb.org//1943274/2147482659/740-20-45-2

+ Details

- Definition

Amount of equity (deficit) attributable to parent and noncontrolling interest. Excludes temporary equity.

+ References

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+ Details

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Divestiture of Messaging and NetworkX Businesses On October 31, 2023 (the “Closing Date”) the Company and certain of its affiliated entities (such entities, together with the Company, the “Company Group”) entered into an Asset Purchase Agreement (the “Agreement”) with Lumine Group Software Solutions (Ireland) Limited, a private limited company incorporated under the laws of Ireland, Lumine Group UK Holdco Ltd, Incognito Software Systems Inc., Lumine Group US Holdco, Inc., Lumine Group Australia Holdco Pty Ltd, Openwave Messaging (Ireland) Limited, Razersight Software Solutions Ireland Limited, Spatial Software Solutions Ireland Limited, Razorsight Software Solutions US Inc., and Openwave Messaging US Inc. (such entities, the “Buyer”), pursuant to which the Company Group sold its Messaging and NetworkX businesses (the “Messaging and Digital Businesses”) to Buyer (the “Transaction”) for a total purchase price of up to $41,800,000 (the “Purchase Price”), and Buyer assumed certain liabilities of the Messaging and Digital Businesses. Lumine Group Inc., the parent entity of Lumine Group Software Solutions (Ireland) Limited, guaranteed certain obligations of Buyer under the Agreement pursuant to a separate Limited Guaranty, by and between Lumine Group Inc. and the Company, dated as of the date of the Agreement. The Purchase Price, which is subject to set-off rights in certain circumstances and certain adjustments, is payable as follows: (i) $31,300,000 (as adjusted) was paid in cash to the Company on the Closing Date, (ii) an additional $7,200,000 was deposited by Buyer into an escrow account on the Closing Date (which amount will remain in escrow until reconciliation of a net tangible asset adjustment), with any amounts in such escrow account to be released from escrow to either Buyer or the Company, based on whether such reconciliation indicates a deficit or a surplus in net tangible assets relative to a negotiated target amount, following such reconciliation process, which could take in excess of 150 days following the Closing Date for the initial portion of the net tangible asset reconciliation and 300 days or more following the Closing Date for reconciliation of certain specified assets to be completed, (iii) an additional $300,000 in cash (which amount was not deposited into an escrow account) may become payable to the Company in accordance with the terms of the Agreement, and (iv) an additional amount of up to $3,000,000 in cash (which amount was not deposited into an escrow account) may become payable to the Company as an earn-out based on the achievement of specified gross revenue targets for the Messaging and Digital Businesses in fiscal year 2023. The accounting for this transaction will result in a book loss. Synchronoss, its affiliate, Synchronoss Software Ireland Limited, and Buyer also entered into a Transition Services Agreement, pursuant to which Synchronoss and Synchronoss Software Ireland Limited will provide assistance on a short-term basis in connection with the transfer of the Messaging and Digital Businesses. In connection with the closing of the Transaction, Buyer licensed certain intellectual property of the Messaging and Digital Businesses utilized in Synchronoss’ ongoing operations back to Synchronoss for use in connection with its ongoing business. On November 3, 2023 the Company used $10,000,716 of the Purchase Price to redeem 9,874 shares of its outstanding Series B Perpetual Non-Convertible Preferred Stock, pursuant to the Certificate of Designations of the Series B Perpetual Non-Convertible Preferred Stock. Accounts Receivable Securitization Facility The Company drew $6.0 million on the A/R Facility on October 20, 2023, and subsequently repaid the full amount on October 31, 2023.

Accumulated Other Comprehensive (Loss) / Income (Tables)

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive (loss) income during the nine months ended September 30, 2023 were as follows:


	Balance at December 31, 2022		Other comprehensive loss		Tax effect		Balance at September 30, 2023
Foreign currency	$	(40,611)	$	(3,328)	$	—	$	(43,939)
Unrealized loss on intercompany foreign currency transactions	(3,520)		—		—		(3,520)

Total	$	(44,131)	$	(3,328)	$	—	$	(47,459)

Restructuring - Restructuring Accrual and Changes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring accrual and changes
Charges	$ 28	$ 201	$ 394	$ 1,905
Employment termination costs
Restructuring accrual and changes
Balance at December 31, 2022			832
Charges			394
Payments			(1,225)
Other Adjustments			0
Balance at September 30, 2023	$ 1		$ 1

Capital Structure - Performance Stock (Details) - Performance based cash units shares in Thousands	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Number of Awards
Outstanding at the beginning of the period (in shares) \| shares	5,872
Granted (in shares) \| shares	1,206
Granted adjustment (in shares) \| shares	(1,283)
Vested and distributed (in shares) \| shares	0
Forfeited (in shares) \| shares	(66)
Outstanding at the end of the period (in shares) \| shares	5,729
Weighted- Average Grant Date Fair Value
Non-vested at the beginning of the period (in dollars per share) \| $ / shares	$ 0.62
Granted (in dollars per share) \| $ / shares	0
Granted adjustment (in dollars per share) \| $ / shares	0
Vested and distributed (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Non-vested at the end of the period (in dollars per share) \| $ / shares	$ 0.96
2015 Plan
Stockholder's Equity
Vesting period (in years)	3 years

Restructuring

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring

The Company continues to execute certain restructurings to identify workforce optimization opportunities to better align the Company’s resources with its key strategic priorities. A summary of the Company’s restructuring accrual at September 30, 2023 and changes during the nine months ended September 30, 2023, are presented below:


	Balance at December 31, 2022		Charges		Payments		Other Adjustments		Balance at September 30, 2023
Employment termination costs	$	832	$	394	$	(1,225)	$	—	$	1

Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Schedule of Operating Assets and Liabilities

The following table presents information about the Company's Right of Use (ROU) assets and lease liabilities:


	September 30, 2023		December 31, 2022
ROU assets:
Non-current operating lease ROU assets	$	15,977	$	20,863



Operating lease liabilities:
Current operating lease liabilities1	$	5,959	$	5,497
Non-current operating lease liabilities	24,669		29,222
Total operating lease liabilities	$	30,628	$	34,719

________________________________

1 Amounts are included in Accrued Expenses on the Condensed Consolidated Balance Sheet.

Schedule of Components of Lease Expense and Weighted Average Lease Term and Rates

The following table presents information about lease expense and sublease income:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease cost1	$	1,541	$	1,677	$	4,749	$	5,691
Other lease costs and income:
Variable lease costs1	256		193		1,082		1,364
Operating lease impairments, net1	—		—		2,075		175
Sublease income1	(1,003)		(684)		(2,541)		(2,058)

Total net lease cost	$	794	$	1,186	$	5,365	$	5,172

________________________________

The following table provides the weighted-average remaining lease term and weighted-average discount rates for our leases:


	September 30, 2023	December 31, 2022
Operating Leases:
Weighted-average remaining lease term (years), weighted based on lease liability balances	4.60	5.31
Weighted-average discount rate (percentages), weighted based on the remaining balance of lease payments	8.0%	8.0%

The following table provides certain cash flow and supplemental noncash information related to our lease liabilities:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating Leases:
Cash paid for amounts included in the measurement of lease liabilities	$	1,979	$	2,253	$	5,985	$	7,292

Schedule of Maturities of Operating Lease Liabilities


Year	Operating Leases
The remainder of 2023	$	2,010
2024	8,241
2025	7,926
2026	7,856
2027	6,244
Thereafter	4,271
Total future lease payments	36,548
Less: amount representing interest	(5,920)
Present value of future lease payments (lease liability)	$	30,628

Loan Receivable (Details) - Sequential Technology International, LLC and AP Capital Holdings II, LLC - Loans Payable - USD ($) $ in Millions	Dec. 31, 2022	Jun. 30, 2020
Schedule of Equity Method Investments [Line Items]
Principal amount		$ 9.0
Contingent consideration, liability		$ 16.0
Interest rate, as a percent		8.00%
Other assets fair value disclosure	$ 4.8

Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of Carrying Amounts

The carrying amounts of the Company’s borrowings were as follows:


Senior Notes	September 30, 2023		December 31, 2022
8.375% Senior Notes due 2026	$	141,077	$	141,077
Unamortized discount and debt issuance cost1	(5,285)		(6,493)
Carrying value of Senior Notes	$	135,792	$	134,584

________________________________

1 Debt issuance costs are deferred and amortized into interest expense using the effective interest method.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The Company is in compliance with its debt covenants as of September 30, 2023.


			Fair Value
Senior Notes	Carrying Amount		(Level 1)		(Level 2)		(Level 3)		Total
Balance at December 31, 2022	$	134,584	$	—	$	101,293	$	—	$	101,293
Balance at September 30, 2023	$	135,792	$	—	$	103,833	$	—	$	103,833

Schedule of Interest Expense

The following table summarizes the Company’s interest expense:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
2021 Non-Convertible Senior Notes due 2026:
Amortization of debt issuance costs	$	388	$	352		$	1,136	$	1,030
Interest on borrowings	2,954		2,954			8,862		8,862
Amortization of debt discount	25		22			72		66




Tax - ASC 740/FIN 48 Interest	77		92			225		92
Other	38		43			102		81
Total	$	3,482	$	3,463		$	10,397	$	10,131

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org//1943274/2147482925/835-30-45-2

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482925/835-30-45-1A

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-SubTopic 10
-Section 50
-Paragraph 3
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-3

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

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-Section 50
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-Publisher FASB
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-7

+ Details

Capital Structure - Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Total stock-based compensation expense	$ 1,241	$ 1,801	$ 4,605	$ 4,692
Tax benefit	243	364	918	931
Stock-based compensation cost related to non-vested equity awards not yet recognized as an expense	6,300		$ 6,300
Weighted-average period over which stock-based compensation cost related to non-vested equity awards is expected to be recognized			1 year 8 months 12 days
Stock options
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Total stock-based compensation expense	428	779	$ 1,395	2,019
Restricted stock awards
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Total stock-based compensation expense	929	933	2,794	2,320
Performance based cash units
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Total stock-based compensation expense	(116)	89	416	353
Stock-based compensation cost related to non-vested equity awards not yet recognized as an expense	400		$ 400
Weighted-average period over which stock-based compensation cost related to non-vested equity awards is expected to be recognized			1 year 4 months 24 days
Cost of revenues
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Total stock-based compensation expense	163	232	$ 576	592
Research and development
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Total stock-based compensation expense	373	494	1,362	1,366
Selling, general and administrative
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Total stock-based compensation expense	$ 705	$ 1,075	$ 2,667	$ 2,734

Basis of Presentation and Consolidation (Details) - USD ($)			1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 23, 2022	May 11, 2022	Jul. 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from the sale of DXP Business						$ 0	$ 8,000,000
Gain on divestiture				$ 0	$ (73,000)	0	2,549,000
Accounts receivable securitization facility	$ 15,000,000
Borrowing capacity	$ 15,000,000
Commitment fee percentage	0.85%
Drawdown on A/R Facility			$ 2,500,000			6,000,000	$ 0
Receivables held				$ 5,600,000		$ 5,600,000
Hanover Rate
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Basis spread on variable rate	2.35%
DXP Business \| Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total purchase price		$ 14,000,000
Amount to be received on the closing date		7,500,000
Escrow deposit		500,000
Disbursement to be received 12 months from closing date		1,000,000
Earn-out		5,000,000
DXP Business \| Disposed of by sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Escrow deposit		500,000
Proceeds from the sale of DXP Business		7,500,000
Additional escrow deposit		1,000,000
Fair value of earn-out provision		3,600,000
Divested intangible assets book value		2,300,000
Fair value of goodwill		7,600,000
Gain on divestiture								$ 2,500,000
DXP Business \| Disposed of by sale \| Other Current Assets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Fair value of earn-out provision		$ 3,000,000

Earnings per Common Share (EPS) - Reconciliation of the Numerator and Denominator Used in Computing Basic and Diluted Net Income Attributable to Common Stockholders Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share Reconciliation [Abstract]
Net (loss) income from operations	$ (2,679)	$ 1,086	$ (22,128)	$ 5,970
Net (loss) income attributable to redeemable noncontrolling interests	(18)	(66)	10	(256)
Preferred stock dividend	(2,474)	(2,298)	(7,423)	(7,255)
Net loss attributable to Synchronoss	(5,171)	(1,278)	(29,541)	(1,541)
Net loss attributable to Synchronoss	$ (5,171)	$ (1,278)	$ (29,541)	$ (1,541)
Denominator:
Weighted average common shares outstanding - basic (in shares)	87,904	86,400	87,069	86,156
Weighted average common shares outstanding - diluted (in shares)	87,904	86,400	87,069	86,156
Earnings (loss) per share:
Basic (in dollars per share)	$ (0.06)	$ (0.01)	$ (0.34)	$ (0.02)
Diluted (in dollars per share)	$ (0.06)	$ (0.01)	$ (0.34)	$ (0.02)
Restricted Stock Awards
Earnings (loss) per share:
Anti-dilutive stock options excluded (in shares)	5,329	4,779	5,329	4,779

Capital Structure - Black-Scholes Assumptions (Details) - Stock options - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Weighted-average assumptions
Expected stock price volatility	72.20%	74.10%	72.60%	74.10%
Risk-free interest rate	4.30%	3.00%	4.20%	3.10%
Expected life of options (in years)	4 years 3 months 25 days	4 years 2 months 1 day	4 years 3 months 10 days	4 years 1 month 24 days
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Weighted-average fair value (PSV) of the options (usd per share)	$ 0.55	$ 0.70	$ 0.59	$ 0.71

Leases - Weighted Average Lease Term and Rates (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term (years), weighted based on lease liability balances	4 years 7 months 6 days		4 years 7 months 6 days		5 years 3 months 21 days
Weighted-average discount rate (percentages), weighted based on the remaining balance of lease payments	8.00%		8.00%		8.00%
Cash paid for amounts included in the measurement of lease liabilities	$ 1,979	$ 2,253	$ 5,985	$ 7,292

Basis of Presentation and Consolidation (Tables)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Recently Issued Accounting Standards

Recent accounting pronouncements adopted

Standard

Description

Effect on the financial statements

Update 2022-04 - Liabilities—Supplier Finance Programs
(Subtopic 405-50). Disclosure of Supplier Finance Program Obligations

The Company evaluated these changes and determined that they have no material impact on the Company’s consolidated financial position or results of operations upon adoption.

Date of adoption: January 1, 2023

Debt - Offering of Senior Notes (Details) - Senior Notes - 2021 Non-Convertible Senior Notes due 2026: - USD ($)	Oct. 25, 2021	Jun. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Principal amount	$ 18,000,000	$ 120,000,000	$ 16,100,000
Interest rate, as a percent		8.375%
Par value (in dollars per share)		$ 25.00
Amount issued inclusive of underwriters' option to purchase		125,000,000
Amount issued to underwriters		$ 5,000,000
Principal amount redeemed		100.00%
Percentage of debt holders demand full repayment on debt default amount		25.00%
Sales agent compensation, percentage	2.00%
On or after June 30, 2022 and prior to June 30, 2023
Debt Instrument [Line Items]
Debt instrument, redemption price (in dollars per share)		$ 25.75
On or after June 30, 2023 and prior to June 30, 2024
Debt Instrument [Line Items]
Debt instrument, redemption price (in dollars per share)		25.50
On or after June 30, 2024 and prior to June 30, 2025
Debt Instrument [Line Items]
Debt instrument, redemption price (in dollars per share)		$ 25.25

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2023

Sep. 30, 2022

Sep. 30, 2023

Sep. 30, 2022

Income Statement [Abstract]

Net revenues

$ 55,648

$ 59,896

$ 173,069

$ 190,998

Costs and expenses:

Cost of revenues

^[1]

17,897

22,440

60,060

69,595

Research and development

10,856

12,911

40,634

42,162

Selling, general and administrative

22,264

15,338

60,448

48,523

Restructuring charges

201

394

1,905

Depreciation and amortization

7,538

7,726

21,997

24,019

Total costs and expenses

58,583

58,616

183,533

186,204

(Loss) income from operations

(2,935)

1,280

(10,464)

4,794

Interest income

149

371

230

Interest expense

(3,482)

(3,463)

(10,397)

(10,131)

Gain on divestiture

(73)

2,549

Other income, net

4,455

4,437

1,070

10,206

(Loss) income from operations, before taxes

(1,813)

2,201

(19,420)

7,648

Provision for income taxes

(866)

(1,115)

(2,708)

(1,678)

Net (loss) income

(2,679)

1,086

(22,128)

5,970

Net (loss) income attributable to redeemable noncontrolling interests

(18)

(66)

(256)

Preferred stock dividend

(2,474)

(2,298)

(7,423)

(7,255)

Net loss attributable to Synchronoss

$ (5,171)

$ (1,278)

$ (29,541)

$ (1,541)

Earnings (loss) per share:

Basic (in dollars per share)

$ (0.06)

$ (0.01)

$ (0.34)

$ (0.02)

Diluted (in dollars per share)

$ (0.06)

$ (0.01)

$ (0.34)

$ (0.02)

Weighted-average common shares outstanding:

Basic (in shares)

87,904

86,400

87,069

86,156

Diluted (in shares)

87,904

86,400

87,069

86,156

[1]	Cost of revenues excludes depreciation and amortization which are shown separately.

Leases - ROU Assets and Lease Liabilities - Operating Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
ROU assets:
Non-current operating lease ROU assets	$ 15,977	$ 20,863
Operating lease liabilities:
Current operating lease liabilities	5,959	5,497
Non-current operating lease liabilities	24,669	29,222
Total operating lease liabilities	$ 30,628	$ 34,719
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses	Accrued expenses
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Leases, non-current	Leases, non-current

Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Offering of Senior Notes

On June 30, 2021, the Company closed its underwritten public offering of $120.0 million aggregate principal amount of 8.375% senior notes due 2026 at a par value of $25.00 per senior note (the “Senior Notes”). The offering was conducted pursuant to an underwriting agreement (the “Notes Underwriting Agreement”) dated June 25, 2021, by and among the Company and B. Riley Securities, Inc., as representative of the several underwriters (the “Notes Underwriters”). At the closing, the Company issued $125.0 million aggregate principal amount of Senior Notes, inclusive of $5.0 million aggregate principal amount of Senior Notes issued pursuant to the full exercise of the Notes Underwriters’ option to purchase additional Senior Notes.

The Notes Underwriting Agreement contains customary representations, warranties and covenants of the Company, customary conditions to closing, indemnification obligations of the Company and the Notes Underwriters, including for liabilities under the Securities Act, other obligations of the parties and termination provisions.

On June 30, 2021, the Company entered into an indenture (the “Base Indenture”) and a supplemental indenture (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”) with The Bank of New York Mellon Trust Company National Association, as trustee (the “Trustee”), between the Company and the Trustee. The Indenture establishes the form and provides for the issuance of the Senior Notes.

The Senior Notes are senior unsecured obligations of the Company and rank equally in right of payment with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness. The Senior Notes are effectively subordinated in right of payment to all of the Company’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness of the Company’s subsidiaries, including trade payables. The Senior Notes bear interest at the rate of 8.375% per annum. Interest on the Senior Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on July 31, 2021. The Senior Notes will mature on June 30, 2026, unless redeemed prior to maturity.

The Company may, at its option, at any time and from time to time, redeem the Senior Notes for cash in whole or in part (i) on or after June 30, 2022 and prior to June 30, 2023, at a price equal to $25.75 per Senior Note, plus accrued and unpaid interest to, but excluding, the date of redemption, (ii) on or after June 30, 2023 and prior to June 30, 2024, at a price equal to $25.50 per Senior Note, plus accrued and unpaid interest to, but excluding, the date of redemption, (iii) on or after June 30, 2024 and prior to June 30, 2025, at a price equal to $25.25 per Senior Note, plus accrued and unpaid interest to, but excluding, the date of redemption, and (iv) on or after June 30, 2025 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption. On and after any redemption date, interest will cease to accrue on the redeemed Senior Notes.

The Company has not redeemed any of the Senior Notes as of September 30, 2023.

The Indenture contains customary events of default and cure provisions. If an uncured default occurs and is continuing, the Trustee or the holders of at least 25% of the principal amount of the Senior Notes may declare the entire amount of the Senior Notes, together with accrued and unpaid interest, if any, to be immediately due and payable. In the case of an event of default involving the Company’s bankruptcy, insolvency or reorganization, the principal of, and accrued and unpaid interest on, the principal amount of the Senior Notes, together with accrued and unpaid interest, if any, will automatically, and without any declaration or other action on the part of the Trustee or the holders of the Senior Notes, become due and payable.

On October 25, 2021, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) between the Company and B. Riley Securities, Inc. (the “Agent”), a related party, pursuant to which the Company may offer and sell, from time to time, up to $18.0 million of the Company’s 8.375% Senior Notes due 2026. Sales of the additional Senior Notes pursuant to the Sales Agreement, if any, may be made in transactions that are deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). Under the Sales Agreement, the Agent will be entitled to compensation of 2.0% of the gross proceeds of all notes sold through it as the Company’s agent.

During the fourth quarter of 2021, the Company sold an additional $16.1 million aggregate principal amount of Senior Notes pursuant to the Sales Agreement. The additional Senior Notes sold have terms identical to the initial Senior Notes and are fungible and vote together with, the initial Senior Notes. The Senior Notes are listed and trade on The Nasdaq Global Market under the symbol “SNCRL.”

The carrying amounts of the Company’s borrowings were as follows:


Senior Notes	September 30, 2023		December 31, 2022
8.375% Senior Notes due 2026	$	141,077	$	141,077
Unamortized discount and debt issuance cost1	(5,285)		(6,493)
Carrying value of Senior Notes	$	135,792	$	134,584

________________________________

1 Debt issuance costs are deferred and amortized into interest expense using the effective interest method.

Fair value of Debt

The fair value of the 2021 Non-Convertible Senior Notes due 2026 was determined based on the closing trading price of the Senior Notes as of September 30, 2023 and is categorized accordingly as Level 2 in the fair value hierarchy. The Company is in compliance with its debt covenants as of September 30, 2023.


			Fair Value
Senior Notes	Carrying Amount		(Level 1)		(Level 2)		(Level 3)		Total
Balance at December 31, 2022	$	134,584	$	—	$	101,293	$	—	$	101,293
Balance at September 30, 2023	$	135,792	$	—	$	103,833	$	—	$	103,833

Interest expense

The following table summarizes the Company’s interest expense:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
2021 Non-Convertible Senior Notes due 2026:
Amortization of debt issuance costs	$	388	$	352		$	1,136	$	1,030
Interest on borrowings	2,954		2,954			8,862		8,862
Amortization of debt discount	25		22			72		66




Tax - ASC 740/FIN 48 Interest	77		92			225		92
Other	38		43			102		81
Total	$	3,482	$	3,463		$	10,397	$	10,131

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Description of Business (Details) $ in Millions	Oct. 31, 2023 USD ($)
Messaging and Digital Businesses \| Subsequent Event
Asset Acquisition [Line Items]
Purchase price	$ 41.8

Subsequent Events (Details) - USD ($)				1 Months Ended	9 Months Ended
Subsequent Events (Details) - USD ($)	Nov. 03, 2023	Oct. 31, 2023	Oct. 20, 2023	Jul. 31, 2023	Sep. 30, 2023	Sep. 30, 2022
Subsequent Event [Line Items]
Drawdown on A/R Facility				$ 2,500,000	$ 6,000,000	$ 0
Subsequent Event
Subsequent Event [Line Items]
Drawdown on A/R Facility			$ 6,000,000
Subsequent Event \| Messaging and Digital Businesses
Subsequent Event [Line Items]
Purchase price		$ 41,800,000
Payments to acquire asset		31,300,000
Escrow deposit		7,200,000
Escrow additional cash		300,000
Escrow deposit additional amount		$ 3,000,000
Subsequent Event \| Messaging and Digital Businesses \| Minimum
Subsequent Event [Line Items]
Period of days following closing date		150 days
Subsequent Event \| Messaging and Digital Businesses \| Maximum
Subsequent Event [Line Items]
Period of days following closing date		300 days
Subsequent Event \| Messaging and Digital Businesses \| Series B Perpetual Non-Convertible Preferred Stock
Subsequent Event [Line Items]
Purchase price	$ 10,000,716
Asset acquisition, redeemed shares (in shares)	9,874

Capital Structure - Preferred Stock (Details) - Series B Preferred Stock shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) shares
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance (in shares) \| shares	71
Amortization of preferred stock issuance costs (in shares) \| shares	0
Issuance of preferred PIK dividend (in shares) \| shares	0
Redemption of Series B preferred shares (in shares) \| shares	0
Ending balance (in shares) \| shares	71
Beginning balance	$ 68,348
Amortization of preferred stock issuance costs	0
Issuance of preferred PIK dividend	0
Redemption of Series B preferred shares	0
Ending balance	68,348
Principal balance	68,300
Temporary equity, gross amount	70,700
Unamortized issuance costs	$ 2,400