Balance Sheet Details

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table provides detail of select balance sheet items:


(in thousands USD)	June 30, 2023		December 31, 2022

Cash and cash equivalents	$	3,779	$	8,478
Restricted cash	245		213
Total cash, cash equivalents and restricted cash	$	4,024	$	8,691


(in thousands USD)	June 30, 2023		December 31, 2022

Accounts receivables	$	12,980	$	15,839
Unbilled accounts receivables	13,827		12,945

Other receivables	815		435
Allowance for doubtful accounts	(347)		(158)
Total accounts receivable, net	$	27,275	$	29,061


(in thousands USD)	June 30, 2023		December 31, 2022

Employee retention credit	$	2,019	$	4,775
Income tax receivables	3,619		3,077
Prepaid expenses and other current assets	1,679		2,008
Total prepaid expenses and other current assets	$	7,317	$	9,860


(in thousands USD)	June 30, 2023		December 31, 2022

Accrued wages, vacation & other employee related items	$	7,482	$	3,362
Accrued interest	257		978
Accrued incentive compensation	1,681		712
Accrued services	4,129		3,426

Other accrued liabilities	716		636
Total accrued liabilities	$	14,265	$	9,114

The following table is a rollforward of the allowance for doubtful accounts:


	Six Months Ended June 30,
(in thousands USD)	2023		2022
Beginning balance, January 1	$	158	$	188
Charges to expense	165		21
Foreign currency translation	24		1
Ending balance	$	347	$	210

The Company records any obligations for contingent purchase price at fair value. The Company recorded the 2019 acquisition-date fair value of a contingent liability based on the likelihood of contingent earn-out payments through the year ended December 31, 2021 subject to the underlying agreement terms. As of December 31, 2021, the obligation now relates to a known and fixed amount due and is no longer a contingent obligation recorded at fair value. The amount due accrues interest at 12%. On November 15, 2022, the Company entered into an amendment to change terms of the AN Extend portion of the purchase price obligation note payable. The amendment converted the note from Mexican pesos to U.S. dollars with capitalized interest added, set the applicable interest to 11% annually, set a maturity date of November 15, 2023, as well as added mandatory conversion. If the note is not paid in full prior to the maturity date, the total amount of principal and the interest will be converted within the following 30 calendar days counted from the maturity date with common shares of common stock, taking as value of the shares the value resulting from using the volume weighted moving average price. This amendment was determined to substantially alter the AN Extend portion of the purchase price obligation note payable such that extinguishment

accounting was applied. The Company recognized a loss on debt extinguishment of $0.7 million for the three months ended December 31, 2022. Payment of any and all of the purchase price obligation note payable is subordinate of all existing senior debt, including the Blue Torch Credit Facility and the Second Lien Facility. In the event of any liquidation, dissolution, or bankruptcy proceedings, all senior debt shall first be paid in full before any distribution shall be made to the purchase price obligation note payable creditors.

The following table provides a roll-forward of the obligation related to the 2019 acquisition due to the seller:


(in thousands USD)	Purchase Price Obligation Note Payable
Opening balance, January 1, 2023	$	10,243





Accrued interest on the contingent consideration	494

Ending balance, June 30, 2023	10,737
Less: Current portion	10,737
Purchase price obligation note payable, net of current portion	$	—

AgileThought, Inc. 10-Q