0001581760-23-000045 | 10-Q | XBRL Viewer

Segment and Geographic Information (Tables)

3 Months Ended

Mar. 31, 2023

The following table sets forth revenue by geographic region (in thousands):


	Three Months Ended March 31,
	2023		2022

North America	$	60,801	$	46,052
Europe, Middle East and Africa	4,318		3,200
Other international regions	3,024		1,718
Total revenue	$	68,143	$	50,970

Convertible Notes - Fair Value Assumptions - Convertible Notes (Details) - September 2021 Convertible Notes $ / shares in Units, $ in Thousands	Mar. 31, 2022 USD ($) year $ / shares	Dec. 31, 2021 USD ($) year $ / shares	Sep. 30, 2021 USD ($) $ / shares	Sep. 01, 2021 USD ($) year $ / shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Principal \| $			$ 11,600
Conversion price per share (in usd per share)			$ 22.50
Convertible notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Principal \| $	$ 6,730	$ 6,730		$ 11,206
Interest rate	6.60%	6.60%		4.50%
Common stock fair value per share (usd per share)	$ 9.91	$ 9.94		$ 20.49
Conversion price per share (in usd per share)	$ 22.50	$ 22.50		$ 22.50
Risk-free interest rate \| Convertible notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes, measurement input	0.0416	0.0450		0.0045
Time to exercise \| Convertible notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes, measurement input \| year	1.4	1.7		3.0
Expected volatility \| Convertible notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes, measurement input	0.49	0.53		0.37
Annual dividend yield \| Convertible notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes, measurement input	0	0		0

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Notes Due from Affiliates	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2021		60,221,799
Beginning balance at Dec. 31, 2021	$ 250,045	$ 61	$ 416,278	$ (951)	$ (165,343)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		277,995
Exercise of stock options	1,508		1,508
Exercise of warrants (in shares)		66,892
Vesting of restricted stock units (in shares)		124,059
Taxes paid related to net settlement of equity awards	(716)		(716)
Issuance of common stock in connection with an acquisition (in shares)		779,032
Issuance of common stock in connection with an acquisition	15,409	$ 1	15,408
Issuance of common stock	85		85
Stock-based compensation expense	6,095		6,095
Interest accrued relating to notes due from affiliates	(5)			(5)
Change in foreign currency translation adjustment	29					29
Net loss	(25,222)				(25,222)
Ending balance (in shares) at Mar. 31, 2022		61,469,777
Ending balance at Mar. 31, 2022	$ 247,228	$ 62	438,658	(956)	(190,565)	29
Beginning balance (in shares) at Dec. 31, 2022	65,239,843	65,239,843
Beginning balance at Dec. 31, 2022	$ 244,538	$ 67	501,763	(314)	(256,972)	(6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	185,073	185,073
Exercise of stock options	$ 714		714
Vesting of restricted stock units (in shares)		870,915
Vesting of restricted stock units	0	$ 1	(1)
Taxes paid related to net settlement of equity awards	(5,731)		(5,731)
Repayment of notes due from affiliate	391		77	314
Stock-based compensation expense	8,955		8,955
Change in foreign currency translation adjustment	24					24
Net loss	$ (14,071)				(14,071)
Ending balance (in shares) at Mar. 31, 2023	66,295,831	66,295,831
Ending balance at Mar. 31, 2023	$ 234,820	$ 68	$ 505,777	$ 0	$ (271,043)	$ 18

Costs Capitalized to Obtain Contracts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Capitalized Contract Cost [Line Items]
Capitalized contract costs, amortization period	3 years
Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 2,063	$ 1,649
Acquired costs capitalized to obtain contracts	0	849
Additions to capitalized costs to obtain contracts	499	272
Amortization of capitalized costs to obtain contracts	(439)	(936)
Ending balance	$ 2,123	$ 1,834
Minimum
Capitalized Contract Cost [Line Items]
Capitalized contract costs, amortization period		2 years
Maximum
Capitalized Contract Cost [Line Items]
Capitalized contract costs, amortization period		3 years

Related-Party Transactions	3 Months Ended
Related-Party Transactions	Mar. 31, 2023
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions The Company has entered into secondary financing transactions and other transactions with certain executive officers and Board members of the Company. A summary of the transactions is detailed below: Notes Due From Affiliates (Contra Equity) In February 2016, the Company issued an aggregate of $0.6 million in secured partial recourse promissory notes (“partially secured loan”) to the Chief Executive Officer, Non-Executive Director (Previously President), Chief Operating Officer and another executive of the Company. The Company accounted for the 2016 partially secured loan as consideration received for the exercise of the related equity award, because even after the original options are exercised or the shares are purchased, an employee could decide not to repay the loan if the value of the shares declines below the outstanding loan amount and could instead choose to return the shares in satisfaction of the loan. The result would be similar to an employee electing not to exercise an option whose exercise price exceeds the current share price. When shares are exchanged for a partially secured loan, the principal and interest are viewed as part of the exercise price of the “option” and no interest income is recognized. Additionally, compensation cost is recognized over any requisite service period, with an offsetting credit to additional paid-in capital. Periodic principal and interest payments, if any, are treated as deposit liabilities until the note is paid off, at which time, the note balance is settled and the deposit liability balance is transferred to additional paid-in capital. All promissory notes issued to the Chief Executive Officer and Chief Operating Officer were repaid as of June 2022. During the three months ended March 31, 2023, the Company received proceeds from the repayment of the partially secured loans that remained outstanding of $0.3 million. As of March 31, 2023 and December 31, 2022, the Company had deposit liability balances of zero and $0.3 million, respectively, in connection with the 2016 partially secured loan and other early exercises of equity awards. Principal amounts due under the 2016 partially secured loan are included in Notes Due From Affiliates as a reduction in stockholders’ equity on the consolidated balance sheets. Other Related Party Transactions Non-executive director, James Synge, is a Principal and Partner of Carthona Capital. During the year ended December 31, 2021, the Company entered into a consultancy agreement with Carthona Capital. Under this agreement, Carthona Capital agreed to provide consultancy services to the Company in relation to capital raising matters. During the three months ended March 31, 2022, Carthona Capital received consideration of $0.1 million. No payments were made to Carthona Capital during the three months ended March 31, 2023. Annika Hulls is the spouse of the CEO and Executive Director, Chris Hulls. During the three months ended March 31, 2022, $7 thousand was paid to Annika Hulls for services relating to a marketing campaign. No payments were made to Annika Hulls during the three months ended March 31, 2023.

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 108	$ 58
State income tax expense	$ 100
Income tax benefit, partial release of valuation allowance		$ 100

- Definition

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

+ References + Details

Defined Contribution Plan	3 Months Ended
Defined Contribution Plan	Mar. 31, 2023
Retirement Benefits [Abstract]
Defined Contribution Plan	Defined Contribution Plan The Company sponsors a defined contribution plan under Section 401(k) of the Internal Revenue Code covering substantially all employees over the age of 21 years. Contributions made by the Company are voluntary and are determined annually by the Board of Directors on an individual basis subject to the maximum allowable amount under federal tax regulations. The Company has made no contributions to the plan since its inception.

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair value and classification of instruments

The fair value of these assets and liabilities as of March 31, 2023 and December 31, 2022 are classified as follows (in thousands):


	As of March 31, 2023
	Level 1		Level 2		Level 3		Total

Assets:
Money market funds	40,400		—		—		40,400
Total assets	40,400		—		—		40,400
Liabilities:
Derivative liability (Note 10)	$	—	$	—	$	87	$	87
Convertible notes (Note 9)	—		—		6,938		6,938
Total liabilities	$	—	$	—	$	7,025	$	7,025


	As of December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	61,227		—		—		61,227
Total assets	61,227		—		—		61,227
Liabilities:
Derivative liability (Note 10)	$	—	$	—	$	101	$	101
Convertible notes (Note 9)	—		—		6,938		6,938
Total liabilities	$	—	$	—	$	7,039	$	7,039

Change in fair value of convertible notes and contingent liability

The change in fair value of the Level 3 instruments were as follows (in thousands):


	As of March 31, 2023
	Derivative liability (Note 10)		Convertible notes (Note 9)

Fair value, beginning of the year	$	101	$	6,938
Vesting of revesting notes	—		72
Changes in fair value	(14)		(72)
Fair value, end of period	$	87	$	6,938


	As of December 31, 2022
	Derivative liability (Note 10)		Convertible notes (Note 9)		Contingent consideration
Fair value, beginning of the year	$	1,396	$	12,293	$	9,500
Vesting of revesting notes	—		137		—
Forfeiture of revesting notes	—		(235)		—
Repayment of convertible notes (Note 9)	—		(3,471)		—
Changes in fair value	(1,295)		(1,786)		(5,279)
Issuance of common stock in settlement of contingent consideration	—		—		(4,221)
Fair value, end of period	$	101	$	6,938	$	—

Convertible Notes - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended				3 Months Ended
	Jan. 31, 2023	Apr. 30, 2022	Sep. 30, 2021	Jul. 31, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Derivative liability (Note 10)				$ 700	$ 87		$ 101
Carrying amount					7,677
Warrants Tranche 1
Debt Instrument [Line Items]
Warrants (in shares)				88,213
Exercise price or warrants (in usd per share)				$ 0.01
Term of warrants				1 year
Warrants Tranche 2
Debt Instrument [Line Items]
Warrants (in shares)				44,106
Exercise price or warrants (in usd per share)				$ 11.96
Term of warrants				5 years
Warrants Tranche 3
Debt Instrument [Line Items]
Warrants (in shares)				44,106
Exercise price or warrants (in usd per share)				$ 11.96
Term of warrants				5 years
Restriction period of warrants				12 months
July 2021 Convertible Notes
Debt Instrument [Line Items]
Principal amount				$ 2,100
Annual interest rate				4.00%
Conversion price per share (in usd per share)				$ 11.96
Unamortized amount					1,400		1,500
Carrying amount					700		600
Amount by which if-converted value (does not exceed)/exceeds principal					(400)		$ 400
Debt discount				$ 800
Beneficial conversion feature				$ 600
Interest expense					100	$ 100
September 2021 Convertible Notes
Debt Instrument [Line Items]
Principal amount			$ 11,600
Conversion price per share (in usd per share)			$ 22.50
Revesting Notes
Debt Instrument [Line Items]
Principal amount			$ 1,600
Vesting period			3 years
Forfeiture benefit		$ 300
Vesting expense	$ 100
Change in fair value					$ 100	$ 300

Equity Incentive Plan - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Shares Underlying Outstanding Options
Balance (in shares)	8,180,840
Options granted (in shares)	0
Options exercised (in shares)	(185,073)
Options cancelled/forfeited (in shares)	(287,081)
Balance (in shares)	7,708,686	8,180,840
Exercisable (in shares)	5,760,273
Weighted Average Exercise Price Per Share
Balance (in usd per share)	$ 7.05
Options granted (in usd per share)	0
Options exercised (in usd per share)	3.87
Options cancelled/forfeited (in usd per share)	14.06
Balance (in usd per share)	6.85	$ 7.05
Exercisable (in usd per share)	$ 5.52
Weighted Average Remaining Contractual Life, Balance	5 years 2 months 15 days	5 years 7 months 9 days
Weighted Average Remaining Contractual Life, Exercisable	5 years 18 days
Aggregate Intrinsic Value, Balance	$ 30,916	$ 40,827
Aggregate Intrinsic Value, Exercisable	$ 28,463

Common Stock - Narrative (Details) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Equity [Abstract]
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in usd per share)	$ 0.001	$ 0.001

Common Stock (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Reserved shares of common stock

The Company has the following potentially outstanding common stock reserved for issuance:


	As of March 31,	As of December 31,
	2023	2022

Issuances under stock incentive plan	7,708,686	8,180,840
Issuances upon exercise of common stock warrants	137,658	137,658
Issuances upon vesting of restricted stock units	5,109,200	6,779,892
Issuances of convertible notes	516,758	516,758
Shares reserved for shares available to be granted but not granted yet	4,745,197	396,347
	18,217,499	16,011,495

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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+ Details

Convertible Notes (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Fair value assumptions

The fair value of the warrants was determined using the Black-Scholes option-pricing method, with the following assumptions:


	Warrants Tranche 1			Warrants Tranche 2			Warrants Tranche 3
Fair market value of common stock	$	15.36		$	15.36		$	15.36
Expected dividend yield	—		%	—		%	—		%
Risk-free interest rate	0.09		%	0.89		%	0.89		%
Expected volatility	52.00		%	47.40		%	47.40		%
Expected term (in years)	1.0			5.0			5.0

The estimated fair value of the September 2021 Convertible Notes is determined using a combination of the present value of the cash flows and the Black-Scholes option pricing model using assumptions as follows:


	As of March 31,			As of December 31,			As of September 1,
	2023			2022			2021
Principal	$	6,730		$	6,730		$	11,206
Interest rate	6.6		%	6.6		%	4.5		%
Common stock fair value per share	9.91			9.94			20.49
Conversion price per share	22.50			22.50			22.50
Risk-free interest rate	4.16		%	4.50		%	0.45		%
Time to exercise (in years)	1.4			1.7			3.0
Volatility	49		%	53		%	37		%
Annual dividend yield	0		%	0		%	0		%

Convertible notes

Convertible notes, current and noncurrent consist of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Convertible notes, current:
September 2021 Convertible Notes	$	4,870	$	3,455
Revesting Notes	—		58
Convertible notes, noncurrent:
July 2021 Convertible Notes	739		635
September 2021 Convertible Notes	2,068		3,396
Revesting Notes	—		29
Total convertible notes	$	7,677	$	7,573

Contractual future principal payments

The contractual future principal payments for all convertible notes as of March 31, 2023 were as follows (in thousands):


	Amount

Remainder of 2023	$	3,365
2024	3,365
2025	—
2026	2,110
Total principal outstanding	$	8,840
Fair value adjustment	(1,163)
Total convertible notes	$	7,677

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim periods and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that is normally required by GAAP can be condensed or omitted.
Consolidation	All intercompany balances and transactions have been eliminated in consolidation.
Reclassification of Prior Year Statement of Cash Flows Presentation	Reclassification of Prior Year Statement of Cash Flows Presentation Certain prior year amounts on the condensed consolidated statement of cash flows have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the condensed consolidated statements of cash flows for the three months ended March 31, 2022 to reclassify internal use software, amortization of costs capitalized to obtain contracts, and non-cash revenue from affiliate. Such reclassifications had no material impact to the Company’s financial positions, operating cash flows, net loss or net loss per share attributable to common stockholders.
Use of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, net revenue, and expenses. Significant items subject to such estimates, judgments, and assumptions include: •revenue recognition, including the determination of selling prices for distinct performance obligations sold in multiple performance obligation arrangements, the period over which revenue is recognized for certain arrangements, and estimated delivery dates for orders with title transfer upon delivery; •allowances for credit losses and product returns; •promotional and marketing allowances; •inventory valuation; •average useful customer life; •valuation of stock-based awards; •legal contingencies; •impairment of long-lived assets and goodwill; •valuation of contingent consideration, convertible notes and embedded derivatives; •useful lives of long-lived assets; and •income taxes including valuation allowances on deferred tax assets. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. Actual results could differ significantly from those estimates.
Accounting pronouncements not yet adopted	Accounting pronouncements not yet adopted Although there are several new accounting standards issued or proposed by the FASB, which the Company will adopt, as applicable, the Company does not believe any of these accounting pronouncements will have a material impact on its condensed consolidated financial statements.
Concentrations of Risk and Significant Customers	Concentrations of Risk and Significant Customers The Company depends on the constant real-time performance, reliability and availability of its technology system and access to its partner’s networks. The Company primarily relies on a single technology partner for its cloud platform and a limited number of contract manufacturers to assemble components of the Jiobit and Tile hardware tracking devices. Any adverse impacts to the platform and the contract manufacturers could negatively impact the Company’s relationships with its partners or users and may adversely impact its business, financial performance, and reputation. The Company derives its accounts receivable from revenue earned from customers located in the United States and internationally. Channel and retail partners account for the majority of the Company’s revenue and accounts receivable for all periods presented.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investment securities with remaining maturities at the date of purchase of three months or less to be cash equivalents. Cash and cash equivalents include deposit and money market funds. Money market mutual funds are valued using quoted market prices and therefore are classified within Level 1 of the fair value hierarchy.
Restricted Cash	Restricted Cash Deposits of $14.7 million and $14.9 million were restricted from withdrawal as of March 31, 2023 and December 31, 2022, respectively. The restricted cash balance of $13.1 million as of March 31, 2023 relates to funds placed in an indemnity escrow fund to be held for fifteen months after the acquisition date of Tile (i.e., through April 2023) for general representations and warranties. The restricted cash balances associated with the Tile indemnity escrow fund is included within restricted cash, current on the accompanying balance sheet. The restricted cash, noncurrent balance of $1.6 million as of March 31, 2023 relates to cash deposits restricted under letters of credit issued on behalf of the Company in support of indebtedness to trade creditors incurred in the ordinary course of business. The restricted cash, noncurrent balance of $1.6 million as of December 31, 2022 relates to funds placed in an indemnity escrow fund after the acquisition of Jiobit, and facility lease agreements.

Fair Value Measurements - Change in Fair Value of Convertible Notes and Contingent Liability (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Derivative liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, beginning of the year	$ 101	$ 1,396	$ 1,396
Changes in fair value	(14)	900	(1,295)
Fair value, end of period	87		101
Convertible notes
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, beginning of the year	6,938	12,293	12,293
Vesting/Issuances	72		137
Changes in fair value	(72)	1,600	(1,786)
Fair value, end of period	6,938		6,938
Convertible notes \| Revesting Notes
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Settlements			(235)
Convertible notes \| Convertible Notes
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Settlements			(3,471)
Contingent consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, beginning of the year	$ 0	$ 9,500	9,500
Settlements			(4,221)
Changes in fair value			(5,279)
Fair value, end of period			$ 0

Costs Capitalized to Obtain Contracts (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Costs capitalized to obtain contracts

The following table represents a roll forward of the Company’s costs capitalized to obtain contracts, net (in thousands):


	Three Months Ended March 31,
	2023		2022
Capitalized costs to obtain contracts, beginning of period	$	2,063	$	1,649
Acquired costs capitalized to obtain contracts	—		849
Additions to capitalized costs to obtain contracts	499		272
Amortization of capitalized costs to obtain contracts	(439)		(936)
Capitalized costs to obtain contracts, end of period	$	2,123	$	1,834

Segment and Geographic Information (Details) $ in Thousands	3 Months Ended
Segment and Geographic Information (Details) $ in Thousands	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)
Segment Reporting [Abstract]
Number of operating segments \| segment	1
Disaggregation of Revenue [Line Items]
Total revenue	$ 68,143	$ 50,970
North America
Disaggregation of Revenue [Line Items]
Total revenue	60,801	46,052
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Total revenue	4,318	3,200
Other international regions
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,024	$ 1,718

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Nature of Business - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Jan. 12, 2023	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percent reduction in workforce	14.00%
Restructuring costs		$ 3,254
Unpaid restructuring costs		$ 400

Warrants	3 Months Ended
Warrants	Mar. 31, 2023
Other Liabilities Disclosure [Abstract]
Warrants	Warrants As of March 31, 2023 and December 31, 2022, the Company had outstanding warrants to purchase 137,658 and 137,658 shares of Company common stock, respectively with exercise prices ranging from $0.01 to $11.96 and expiry dates ranging from 2022 to 2028. Refer to Note 9 “Convertible Notes” for further details.

Balance Sheet Components - Intangible Assets Remaining Amortization Expense (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remainder of 2023	$ 6,766
2024	9,060
2025	8,981
2026	8,500
2027 and Beyond	17,504
Total future amortization expense	$ 50,811

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 61,394	$ 75,444
Restricted cash, current	13,094	13,274
Accounts Receivable, after Allowance for Credit Loss, Current	30,980	33,125
Inventory	8,797	10,826
Costs capitalized to obtain contracts, net	1,348	1,438
Prepaid expenses and other current assets	10,060	8,548
Total current assets	125,673	142,655
Restricted cash, noncurrent	1,601	1,647
Property and equipment, net	755	393
Costs capitalized to obtain contracts, noncurrent	775	626
Prepaid expenses and other assets, noncurrent	7,268	7,134
Operating lease right-of-use asset	571	802
Intangible assets, net	50,811	52,699
Goodwill	133,674	133,674
Total Assets	321,128	339,630
Current Liabilities:
Accounts payable	9,517	13,791
Accrued expenses and other current liabilities	22,981	27,015
Escrow liability	13,094	13,274
Convertible notes, current ($4,870 and $3,513 measured at fair value, respectively)	4,870	3,513
Deferred revenue, current	30,143	30,056
Total current liabilities	80,605	87,649
Convertible notes, noncurrent ($2,068 and $3,425 measured at fair value, respectively)	2,807	4,060
Derivative liability, noncurrent	87	101
Deferred revenue, noncurrent	2,312	2,706
Other liabilities, noncurrent	497	576
Total Liabilities	86,308	95,092
Commitments and Contingencies (Note 11)
Stockholders’ Equity
Common Stock, $0.001 par value; 100,000,000 shares authorized as of March 31, 2023 and December 31, 2022; 66,295,831 and 65,239,843 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	68	67
Additional paid-in capital	505,777	501,763
Notes due from affiliates	0	(314)
Accumulated deficit	(271,043)	(256,972)
Accumulated other comprehensive income	18	(6)
Total stockholders’ equity	234,820	244,538
Total Liabilities and Stockholders’ Equity	$ 321,128	$ 339,630

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Channel and retail partners who represented greater than 10% of revenue or accounts receivable

The following tables set forth the information about the Company’s channel and retail partners who represented greater than 10% of its revenue or accounts receivable, respectively:


	Percentage of Revenue
	Three Months Ended March 31,
	2023		2022
Channel Partner A	56	%	46	%
Channel Partner B	15	%	15	%
Retail Partner A	*		12	%

* Represents less than 10%


	Percentage of Gross Accounts Receivable
	As of March 31,		As of December 31,
	2023		2022
Channel Partner A	60	%	33	%

Data Partner A	12	%	11	%
Retail Partner A	*		23	%

* Represents less than 10%

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Cash Flows from Operating Activities:
Net loss	$ (14,071)	$ (25,222)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,273	2,201
Amortization of costs capitalized to obtain contracts	439	936
Stock-based compensation expense	8,955	6,095
Compensation expense in connection with revesting notes	72	120
Non-cash interest and dividend expense, net	92	98
Convertible notes fair value adjustment	(72)	(1,575)
Derivative liability fair value adjustment	(14)	(914)
Gain on revaluation of contingent consideration	0	(4,000)	$ (5,300)
Non-cash revenue from affiliate	(496)	(135)
Inventory write-off	916	0
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	2,145	17,155
Prepaid expenses and other assets	(1,340)	(560)
Inventory	1,113	(1,067)
Costs capitalized to obtain contracts, net	(498)	(1,121)
Accounts payable	(4,274)	(14,689)
Accrued expenses and other liabilities	(4,628)	(1,673)
Deferred revenue	189	2,936
Other liabilities, noncurrent	0	(122)
Net cash used in operating activities	(9,199)	(21,537)
Cash Flows from Investing Activities:
Cash paid for acquisitions, net of cash acquired	0	(112,306)
Internal use software	(348)	(159)
Purchase of property and equipment	(26)	0
Net cash used in investing activities	(374)	(112,465)
Cash Flows from Financing Activities:
Proceeds from the exercise of options	714	1,508
Taxes paid related to net settlement of equity awards	(5,731)	(716)
Proceeds from repayment of notes due from affiliates	314	0
Issuance of common stock	0	85
Cash paid for deferred offering costs	0	(4)
Net cash (used in)/provided by financing activities	(4,703)	873
Net Decrease in Cash, Cash Equivalents, and Restricted Cash	(14,276)	(133,129)
Cash, Cash Equivalents and Restricted Cash at the Beginning of the Period	90,365	231,345	231,345
Cash, Cash Equivalents, and Restricted Cash at the End of the Period	76,089	98,216	90,365
Supplemental disclosure:
Cash paid during the period for interest	0	(15)
Non-cash investing and financing activities:
Fair value of stock issued in connection with an acquisition	0	15,409
Fair value of warrants held as investment in affiliate	0	5,474
Deferred capitalized costs	0	700
Total non-cash investing and financing activities:	0	21,583
Cash, cash equivalents and restricted cash
Cash and cash equivalents	61,394	82,717	75,444
Restricted cash	14,695	15,499	14,900
Total cash, cash equivalents, and restricted cash	$ 76,089	$ 98,216	$ 90,365

Balance Sheet Components - Accrued Expenses and Current Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued vendor expenses	$ 7,611	$ 4,868
Accrued compensation	3,163	3,900
Customer related promotions and discounts	4,192	10,871
Operating lease liability	580	813
Sales return reserves	3,059	2,952
Other current liabilities	4,376	3,611
Total accrued expenses and other current liabilities	$ 22,981	$ 27,015

Deferred Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Deferred Revenue

Deferred revenue consists primarily of payments received and accounts receivable recorded in advance of revenue recognition under the Company’s subscription service arrangements and is recognized as the revenue recognition criteria is met. The Company primarily invoices its customers for its subscription services arrangements in advance. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred revenue, current; the remaining portion is recorded as deferred revenue, noncurrent in the consolidated balance sheets.

During the three months ended March 31, 2023 and 2022, the Company recognized revenue of $16.8 million and $12.1 million, respectively, that was included in the deferred revenue balance at the beginning of each respective period.

Remaining performance obligations represent the amount of contracted future revenue not yet recognized as the amounts relate to undelivered performance obligations, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods.

Revenue expected to be recognized from remaining performance obligations was $32.5 million as of March 31, 2023, of which the Company expects $30.1 million to be recognized over the next twelve months.

Costs Capitalized to Obtain Contracts

The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs. The Company determined that its costs to obtain contracts were both direct and incremental. These costs are attributable to the Company’s largest channel partners.

Costs of obtaining new revenue contracts are deferred and then amortized on a straight-line basis over the related period of benefit, which is three years for the three months ended March 31, 2023 and approximately two to three years depending on the subscription type for the three months ended March 31, 2022.

The following table represents a roll forward of the Company’s costs capitalized to obtain contracts, net (in thousands):


	Three Months Ended March 31,
	2023		2022
Capitalized costs to obtain contracts, beginning of period	$	2,063	$	1,649
Acquired costs capitalized to obtain contracts	—		849
Additions to capitalized costs to obtain contracts	499		272
Amortization of capitalized costs to obtain contracts	(439)		(936)
Capitalized costs to obtain contracts, end of period	$	2,123	$	1,834

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 13
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Paragraph 12
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 12
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Convertible Notes - Current and Non-Current (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Convertible notes, current:	$ 4,870	$ 3,513
Convertible notes, noncurrent:	2,807	4,060
Total convertible notes	7,677	7,573
July 2021 Convertible Notes
Debt Instrument [Line Items]
Convertible notes, noncurrent:	739	635
September 2021 Convertible Notes
Debt Instrument [Line Items]
Convertible notes, current:	4,870	3,455
Convertible notes, noncurrent:	2,068	3,396
Revesting Notes
Debt Instrument [Line Items]
Convertible notes, current:	0	58
Convertible notes, noncurrent:	$ 0	$ 29

Subsequent Events (Details) - Subsequent Event - Tile $ in Millions	1 Months Ended
	Apr. 30, 2023 USD ($) shares
Subsequent Event [Line Items]
Restricted cash released \| $	$ 13.1
Indemnity escrow shares released \| shares	84,524

Balance Sheet Components - Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross	$ 62,150		$ 61,801
Accumulated Amortization	(11,339)		(9,102)
Net	50,811		52,699
Capitalized internal use software	300	$ 200
Amortization expense	2,200	2,100
Impairment of intangible assets	0	$ 0
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross	23,380		23,380
Accumulated Amortization	(3,008)		(2,424)
Net	20,372		20,956
Technology
Finite-Lived Intangible Assets [Line Items]
Gross	22,430		22,430
Accumulated Amortization	(5,827)		(4,705)
Net	16,603		17,725
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	15,290		15,290
Accumulated Amortization	(2,367)		(1,895)
Net	12,923		13,395
Internal use software
Finite-Lived Intangible Assets [Line Items]
Gross	1,050		701
Accumulated Amortization	(137)		(78)
Net	$ 913		$ 623

Balance Sheet Components - Prepaid Expenses and Other Assets, Non-Current (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 1,743	$ 1,524
Investment in affiliate	5,474	5,474
Other assets	51	136
Total prepaid expenses and other assets, noncurrent	$ 7,268	$ 7,134

Nature of Business - Restructuring Costs (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 3,254
Cost of revenue \| Subscription
Restructuring Cost and Reserve [Line Items]
Restructuring costs	61
Cost of revenue \| Hardware
Restructuring Cost and Reserve [Line Items]
Restructuring costs	91
Research and development
Restructuring Cost and Reserve [Line Items]
Restructuring costs	1,878
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Restructuring costs	666
General and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 558

Balance Sheet Components - Intangible Assets, Weighted-Average Remaining Useful Life (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Trade name
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	8 years 8 months 12 days	9 years
Technology
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	3 years 8 months 12 days	3 years 10 months 24 days
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	6 years 10 months 24 days	7 years 1 month 6 days
Internal use software
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	2 years 6 months	2 years 9 months 18 days

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2023	May 10, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	000-56424
Entity Registrant Name	Life360, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-0197666
Entity Address, Address Line One	1900 South Norfolk Street
Entity Address, Address Line Two	Suite 310
Entity Address, City or Town	San Mateo
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94403
City Area Code	415
Local Phone Number	484-5244
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		66,353,485
Entity Central Index Key	0001581760
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Business Combinations - Tile Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
	Jan. 05, 2022	Sep. 01, 2021	Mar. 31, 2023	Mar. 31, 2022
Business Acquisition [Line Items]
Fair value of stock issued in connection with an acquisition			$ 0	$ 15,409
Tile
Business Acquisition [Line Items]
Aggregate purchase consideration	$ 173,500
Consideration paid in cash	158,100
Fair value of stock issued in connection with an acquisition	$ 15,400
Consideration, stock issued (in shares)	780,593
Contingent consideration (in shares)	534,465
Consideration, indemnity escrow	$ 14,100
Consideration, indemnity escrow (in shares)	84,524
Consideration, indemnity escrow, term	15 months	15 months	15 months
Excluded consideration	$ 35,000
Excluded consideration, share-based compensation (in shares)	1,499,349
Excluded consideration, retention bonuses	$ 3,000
Transaction related expenses	$ 1,700
Excluded consideration, shares granted (in shares)	1,561
Excluded consideration, contingent consideration, shares granted (in shares)	4,784
Tile \| Restricted stock units
Business Acquisition [Line Items]
Excluded consideration, share-based compensation (in shares)	1,499,349		711,903
Excluded consideration, share-based compensation	$ 29,600
Tile \| Restricted stock units \| Minimum
Business Acquisition [Line Items]
Vesting period			2 years
Tile \| Restricted stock units \| Maximum
Business Acquisition [Line Items]
Vesting period			4 years
Tile \| Stock options
Business Acquisition [Line Items]
Excluded consideration, share-based compensation (in shares)	38,730
Excluded consideration, share-based compensation	$ 400
Tile \| Performance shares
Business Acquisition [Line Items]
Excluded consideration, share-based compensation (in shares)	787,446
Excluded consideration, share-based compensation	$ 15,600
Vesting period	2 years

Derivative Liability	3 Months Ended
Derivative Liability	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liability	Derivative Liability The Company’s derivative liability represents embedded share-settled redemption features bifurcated from its July 2021 Convertible Notes and is carried at fair value. The changes in the fair value of the derivative liability are recorded in other income (expense), net of the Company’s condensed consolidated statements of operations and comprehensive loss. Estimating fair values of derivative financial instruments requires the development of significant and subjective estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. Since derivative financial instruments are initially and subsequently carried at fair value, the Company’s income will reflect the volatility in these estimate and assumption changes. The features embedded in the July 2021 Convertible Notes are combined into one compound embedded derivative. The fair value of the embedded derivative was estimated based on the present value of the redemption discount applied to the principal amount of the July 2021 Convertible Notes adjusted to reflect the weighted probability of exercise. The discount rate was based on the risk-free interest rate. Upon the issuance of the convertible notes, the Company recorded a derivative liability of $0.7 million at fair value using inputs classified as Level 3 in the fair value hierarchy. As of March 31, 2023 and December 31, 2022, the fair value of the derivative liability was $0.1 million and $0.1 million, respectively. Refer to Note 6 “Fair Value Measurements” for further details.

Warrants (Details) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Class of Warrant or Right [Line Items]
Number of shares to purchase under warrants (in shares)	137,658	137,658
Minimum
Class of Warrant or Right [Line Items]
Exercise price or warrants (in usd per share)	$ 0.01
Maximum
Class of Warrant or Right [Line Items]
Exercise price or warrants (in usd per share)	$ 11.96

Net Loss Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss	$ (14,071)	$ (25,222)
Denominator:
Weighted-average shares used in computing net loss per share, basic (in shares)	65,592,780	61,192,576
Net loss per share, basic (in usd per share)	$ (0.21)	$ (0.41)
Numerator:
Net loss	$ (14,071)	$ (25,222)
Adjusted net loss for diluted earnings per share	$ (14,071)	$ (27,584)
Denominator:
Weighted-average shares used in computing net loss per share, basic (in shares)	65,592,780	61,192,576
Effect of dilutive securities:
Weighted-average shares used in computing net loss per share, diluted (in shares)	65,592,780	61,879,502
Net loss per share, diluted (in usd per share)	$ (0.21)	$ (0.45)
Convertible notes
Numerator:
Interest attributable to July 2021 and September 2021 Convertible Notes	$ 0	$ 127
Convertible notes \| September 2021 Convertible Notes
Numerator:
(Gain)/loss attributable to Convertible Notes	$ 0	$ (1,575)
Effect of dilutive securities:
Convertible Notes (in shares)	0	510,504
Convertible notes \| July 2021 Convertible Notes
Numerator:
(Gain)/loss attributable to Convertible Notes	$ 0	$ (914)
Effect of dilutive securities:
Convertible Notes (in shares)	0	176,422

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments The Company has certain commitments from outstanding purchase orders primarily related to technology support, facilities, marketing and branding and professional services. These agreements, which total $172.0 million for the three months ended March 31, 2023 and $138.9 million for the year ended December 31, 2022, are cancellable at any time with the Company required to pay all costs incurred through the cancellation date. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated. The Company is not subject to any current pending legal matters or claims that the Company believes could have a material adverse effect on its financial position, results of operations or cash flows. Warranties and Indemnification To date, the Company has not incurred significant costs and has not accrued any material liabilities in the accompanying condensed consolidated financial statements as a result of its warranty and indemnification obligations. Litigation Occasionally, the Company is involved in various legal proceedings, claims and government investigations in the ordinary course of business. The outcome of litigation and other legal matters is inherently uncertain, though the Company intends to vigorously defend the matters. In making a determination regarding accruals, using available information, the Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which the Company is a party and records a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonable estimated. When the Company determines an unfavorable outcome is not probable or reasonably estimable the Company does not accrue for any potential litigation loss. Actual outcomes of these legal and regulatory proceedings may materially differ from the Company’s estimates. On March 12, 2019, a former alleged competitor of Tile, Cellwitch, Inc, filed a patent infringement claim against the Company in the U.S. District Court, Northern District of California (“Court”), seeking permanent injunction and damages. On December 18, 2019, Tile filed an inter partes review petition with the Patent Trial and Appeal Board (“PTAB”) challenging the validity of the patent. On May 13, 2021, the PTAB issued a Final Written Decision on Tile’s inter partes review petition (the “Final Written Decision”), finding a majority of the claims invalid. The Final Written Decision was affirmed by the U.S. Court of Appeals for the Federal Circuit on May 13, 2022. The case is currently in trial court, the parties are conducting initial discovery efforts and, upon request from the Court, have agreed to participate in a settlement conference. A purported class action (E.S. v. Life360, Inc.) alleging a single cause of action for unjust enrichment was filed against Life360 on January 12, 2023, seeking equitable relief purportedly arising out of Life360’s historic data sales. Given the inherently uncertain nature of litigation, the ultimate disposition of the case is not presently determinable, but the Company intends to defend against the claim. We cannot predict at this point the length of time that this action will be ongoing or estimate the liability, if any, which may arise therefrom. Based on information currently available and the current state of the litigation, we are unable to reasonably estimate a possible loss or range of possible losses, if any, with regards to outstanding litigation. As a result, no litigation reserve has been recorded on our condensed consolidated balance sheets as of March 31, 2023 or December 31, 2022. We will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times if and when it is probable a loss will be incurred and the amount of the loss is reasonably estimable.

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Convertible notes, current, measured at fair value	$ 4,870	$ 3,513
Convertible notes, noncurrent, measured at fair value	$ 2,068	$ 3,425
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	66,295,831	65,239,843
Common stock, outstanding (in shares)	66,295,831	65,239,843

Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company measures its financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Three levels of inputs may be used to measure as follows:

Level 1 - Observable inputs, such as quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Valuations based on unobservable inputs to the valuation methodology and including data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances.

The carrying amounts of certain financial instruments, including cash and cash equivalents, prepaid expenses, accounts receivable, and accounts payable approximate fair value due to their short-term maturities.

The Company measures and reports certain assets and liabilities at fair value on a recurring basis.

The fair value of these assets and liabilities as of March 31, 2023 and December 31, 2022 are classified as follows (in thousands):


	As of March 31, 2023
	Level 1		Level 2		Level 3		Total

Assets:
Money market funds	40,400		—		—		40,400
Total assets	40,400		—		—		40,400
Liabilities:
Derivative liability (Note 10)	$	—	$	—	$	87	$	87
Convertible notes (Note 9)	—		—		6,938		6,938
Total liabilities	$	—	$	—	$	7,025	$	7,025


	As of December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	61,227		—		—		61,227
Total assets	61,227		—		—		61,227
Liabilities:
Derivative liability (Note 10)	$	—	$	—	$	101	$	101
Convertible notes (Note 9)	—		—		6,938		6,938
Total liabilities	$	—	$	—	$	7,039	$	7,039

The change in fair value of the Level 3 instruments were as follows (in thousands):


	As of March 31, 2023
	Derivative liability (Note 10)		Convertible notes (Note 9)

Fair value, beginning of the year	$	101	$	6,938
Vesting of revesting notes	—		72
Changes in fair value	(14)		(72)
Fair value, end of period	$	87	$	6,938


	As of December 31, 2022
	Derivative liability (Note 10)		Convertible notes (Note 9)		Contingent consideration
Fair value, beginning of the year	$	1,396	$	12,293	$	9,500
Vesting of revesting notes	—		137		—
Forfeiture of revesting notes	—		(235)		—
Repayment of convertible notes (Note 9)	—		(3,471)		—
Changes in fair value	(1,295)		(1,786)		(5,279)
Issuance of common stock in settlement of contingent consideration	—		—		(4,221)
Fair value, end of period	$	101	$	6,938	$	—

For the three months ended March 31, 2023, the Company recorded a gain associated with the change in fair value of the derivative liability and convertible notes of $14 thousand and $72 thousand, respectively. For the year ended December 31, 2022, the Company recorded a gain associated with the change in fair value of the derivative liability and convertible notes of $1.3 million and $1.8 million, respectively. The amounts have been recorded in other income (expense), net in the condensed consolidated statements of operations and comprehensive loss.

For the year ended December 31, 2022, the Company recorded a gain associated with the change in fair value of the contingent consideration of $5.3 million. The amounts have been recorded in general and administrative expense in the condensed consolidated statements of operations and comprehensive loss.

For the three months ended March 31, 2022, the Company recorded a loss associated with the change in fair value of the derivative liability and convertible notes of $0.9 million and $1.6 million, respectively. The amounts have been recorded in other income (expense), net in the condensed consolidated statements of operations and comprehensive loss.

The Company has recorded a gain associated with the change in fair value of the contingent consideration of $4.0 million for the three months ended March 31, 2022 in general and administrative expense in the condensed consolidated statements of operations and comprehensive loss.

- 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

Convertible Notes

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Convertible Notes

July 2021 Convertible Notes

In July 2021, the Company issued convertible notes (“July 2021 Convertible Notes”) to investors with an underlying principal amount of $2.1 million. The July 2021 Convertible Notes accrue simple interest at an annual rate of 4% and mature on July 1, 2026. The July 2021 Convertible Notes may be settled under the following scenarios at the option of the holder: (i) at any time into common shares equal to the conversion amount of outstanding principal and any accrued but unpaid interest divided by the conversion price of $11.96; (ii) at the option of the holder upon a liquidation event a) paid in cash equal to the outstanding principal and any accrued but unpaid interest or b) into common shares equal to the conversion amount of outstanding principal and any accrued but unpaid interest divided by the conversion price of $11.96; or (iii) upon maturity, settlement in cash at the outstanding accrued interest and principal amount.

Certain conversion and redemption features of the July 2021 Convertible Notes were determined to not be clearly and closely associated with the risk of the debt-type host instrument and were required to be separately accounted for as derivative financial instruments. The Company bifurcated these embedded conversion and redemption (“embedded derivatives”) features and classified these as liabilities measured at fair value. The fair value of the derivative liability of $0.7 million was recorded separate from the July 2021 Convertible Notes with an offsetting amount recorded as a debt discount. The debt discount is amortized over the estimated life of the debt using the straight-line method, as the value attributable to the July 2021 Convertible Notes was zero upon issuance.

As of March 31, 2023 the unamortized amount and net carrying value of the July 2021 Convertible Notes is $1.4 million and $0.7 million, respectively. The amount by which July 2021 Convertible Notes if-converted value does not exceed its principal is $0.4 million as of March 31, 2023.

As of December 31, 2022 the unamortized amount and net carrying value of the July 2021 Convertible Notes is $1.5 million and $0.6 million, respectively. The amount by which July 2021 Convertible Notes if-converted value does not exceed its principal is $0.4 million as of December 31, 2022.

In connection with the July 2021 Convertible Notes, the Company issued warrants to purchase 88,213 shares of the Company’s common stock with an exercise price of $0.01 per share and a term of one year (Warrant Tranche 1), 44,106 shares of the Company’s common stock with an exercise price of $11.96 per share and a term of 5 years (Warrant Tranche 2), and 44,106 shares of the Company’s common stock which is exercisable starting twelve months from the issuance date with an exercise price of $11.96 per share and a term of 5 years (Warrant Tranche 3).

The fair value of the warrants was determined using the Black-Scholes option-pricing method, with the following assumptions:


	Warrants Tranche 1			Warrants Tranche 2			Warrants Tranche 3
Fair market value of common stock	$	15.36		$	15.36		$	15.36
Expected dividend yield	—		%	—		%	—		%
Risk-free interest rate	0.09		%	0.89		%	0.89		%
Expected volatility	52.00		%	47.40		%	47.40		%
Expected term (in years)	1.0			5.0			5.0

The warrants were recorded to additional paid-in capital during the year ended December 31, 2021. The fair value of the warrants issued in connection with the July 2021 Convertible Notes was $0.8 million and was recorded as a debt discount that is being amortized to interest expense under the straight-line method over the term of respective convertible notes.

As a result of the beneficial conversion feature associated with the July 2021 Convertible Notes, $0.6 million was added to additional paid-in capital during the year ended December 31, 2021. The beneficial conversion feature was recorded as a debt discount and is being amortized to interest expense under the straight-line method over the term of the respective notes.

For the three months ended March 31, 2023 and 2022, the Company recognized a total of $0.1 million and $0.1 million, respectively, in non-cash interest expense related to the July 2021 Convertible Notes.

September 2021 Convertible Notes

In September 2021, the Company, in connection with the Jiobit Acquisition, issued $11.6 million representing the fair value of convertible notes (the “September 2021 Convertible Notes”) and $1.6 million of revesting convertible notes (“Revesting Notes”) that vest over time. The September 2021 Convertible Notes can be converted to common stock at any time subsequent to the acquisition at a fixed conversion price of $22.50 per share. On each of the first three annual anniversaries of the issuance date of the September 2021 Convertible Notes, the Company will repay 1/3rd of the unconverted principal plus accrued interest to the holders of such notes. Upon a change of control, the holder may elect to either convert at the fixed conversion price of $22.50 per share or be repaid in full. The Company has elected the fair value option and will remeasure the September 2021 Convertible Notes at their fair value on each reporting date and reflect the changes in fair value in earnings. The estimated fair value of the September 2021 Convertible Notes is determined using a combination of the present value of the cash flows and the Black-Scholes option pricing model using assumptions as follows:


	As of March 31,			As of December 31,			As of September 1,
	2023			2022			2021
Principal	$	6,730		$	6,730		$	11,206
Interest rate	6.6		%	6.6		%	4.5		%
Common stock fair value per share	9.91			9.94			20.49
Conversion price per share	22.50			22.50			22.50
Risk-free interest rate	4.16		%	4.50		%	0.45		%
Time to exercise (in years)	1.4			1.7			3.0
Volatility	49		%	53		%	37		%
Annual dividend yield	0		%	0		%	0		%

The Revesting Notes are restricted and vest with continuous employment of certain key employees over a 3-year period subsequent to the acquisition. The Revesting Notes are recognized in general and administrative expense. In April 2022, one of the key employees exited the Company, and so the entirety of their Revesting Notes were forfeited. The Company recorded $0.3 million credit to compensation expense included in general and administrative expense related to the forfeiture of their Revesting Notes. In January 2023, the other key employee exited the Company. As part of their separation agreement, their Revesting Notes are due in their entirety at the maturity date and the Company recorded $0.1 million of compensation expense included in general and administrative expense.

The Company records the Revesting Notes at fair value and will remeasure the Revesting Notes at fair value on each reporting date. As the Revesting Notes vest, the changes in fair value are recorded as general and administrative expense with a corresponding entry to convertibles notes. The estimated fair value of the Revesting Notes is determined using a combination of the present value of the Revesting Notes cash flows and the Black-Scholes option pricing model. The terms of the Revesting Notes are consistent with the terms of the September 2021 Convertible Notes. The Company recorded $0.1 million and $0.3 million to compensation expense included in general and administrative expense related to the changes in fair value of the Revesting Notes during the three months ended March 31, 2023 and 2022, respectively.

Convertible notes, current and noncurrent consist of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Convertible notes, current:
September 2021 Convertible Notes	$	4,870	$	3,455
Revesting Notes	—		58
Convertible notes, noncurrent:
July 2021 Convertible Notes	739		635
September 2021 Convertible Notes	2,068		3,396
Revesting Notes	—		29
Total convertible notes	$	7,677	$	7,573

The contractual future principal payments for all convertible notes as of March 31, 2023 were as follows (in thousands):


	Amount

Remainder of 2023	$	3,365
2024	3,365
2025	—
2026	2,110
Total principal outstanding	$	8,840
Fair value adjustment	(1,163)
Total convertible notes	$	7,677

- 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Fair Value Measurements - Fair Value and Classification of Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jul. 31, 2021
Assets:
Money market funds	$ 40,400	$ 61,227
Total assets	40,400	61,227
Liabilities:
Derivative liability (Note 10)	87	101	$ 700
Convertible notes (Note 9)	6,938	6,938
Total liabilities	7,025	7,039
Level 1
Assets:
Money market funds	40,400	61,227
Total assets	40,400	61,227
Liabilities:
Derivative liability (Note 10)	0	0
Convertible notes (Note 9)	0	0
Total liabilities	0	0
Level 2
Assets:
Money market funds	0	0
Total assets	0	0
Liabilities:
Derivative liability (Note 10)	0	0
Convertible notes (Note 9)	0	0
Total liabilities	0	0
Level 3
Assets:
Money market funds	0	0
Total assets	0	0
Liabilities:
Derivative liability (Note 10)	87	101
Convertible notes (Note 9)	6,938	6,938
Total liabilities	$ 7,025	$ 7,039

Equity Incentive Plan - Narrative (Details) - USD ($) $ in Thousands				1 Months Ended	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Jan. 05, 2022	Sep. 01, 2021	Jan. 31, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation					$ 8,955	$ 6,095
Jiobit
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Consideration, indemnity escrow, term			18 months
Tile
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Excluded consideration, share-based compensation (in shares)		1,499,349
Awards forfeited (in shares)	787,446
Purchase consideration (in shares)		694,672
Purchase consideration		$ 13,700
Excluded consideration, shares granted (in shares)		1,561
Consideration, indemnity escrow (in shares)		84,524
Consideration, indemnity escrow, term		15 months	15 months		15 months
Transaction related expenses		$ 1,700
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, stock options					$ 8,400
Unrecognized compensation expense, period for recognition					2 years 7 months 6 days
Stock options \| Jiobit
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, stock options					$ 100		$ 200
Unrecognized compensation expense, period for recognition					1 year 7 months 6 days		1 year 9 months 18 days
Excluded consideration, share-based compensation (in shares)			43,083
Excluded consideration, share-based compensation			$ 500
Stock options \| Tile
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Excluded consideration, share-based compensation (in shares)		38,730
Excluded consideration, share-based compensation		$ 400
Restricted stock units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, other awards					$ 47,000
Unrecognized compensation expense, period for recognition					2 years 3 months 18 days
Awards forfeited (in shares)					799,956
Restricted stock units \| Tile
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, other awards					$ 3,600
Unrecognized compensation expense, period for recognition					1 year 4 months 24 days
Excluded consideration, share-based compensation (in shares)		1,499,349			711,903
Excluded consideration, share-based compensation		$ 29,600
Restricted stock units \| Tile \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					2 years
Restricted stock units \| Tile \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					4 years
Restricted stock \| Jiobit
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, period for recognition					0 days		1 year 8 months 12 days
Excluded consideration, revesting stock (in shares)			91,217
Excluded consideration, revesting stock			$ 1,900
Vesting period			3 years
Restricted stock \| Tile
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, other awards					$ 14
Unrecognized compensation expense, period for recognition					1 year 3 months 18 days
Grants in period, aggregate fair value		$ 31
Service period					30 months
Performance shares \| Tile
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period		2 years
Excluded consideration, share-based compensation (in shares)		787,446
Excluded consideration, share-based compensation		$ 15,600
Revesting Stock \| Jiobit
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, other awards					$ 0		$ 200
Stock-based compensation				$ 200

Balance Sheet Components- Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 31,074	$ 33,219
Allowance for doubtful accounts	(94)	(94)
Accounts receivable, net	$ 30,980	$ 33,125

Net Loss Per Share - Antidilutive Shares (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock (in shares)	18,217,499	16,379,790
Issuances under stock incentive plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock (in shares)	7,708,686	7,879,793
Issuances upon exercise of common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock (in shares)	137,658	205,109
Issuances upon vesting of restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock (in shares)	5,109,200	5,341,004
Issuances of convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock (in shares)	516,758	0
Shares reserved for shares available to be granted but not granted yet
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common stock (in shares)	4,745,197	2,953,884

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Computation of basic and diluted net loss per share

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


	Three Months Ended March 31,
	2023		2022

Numerator:
Net loss	$	(14,071)	$	(25,222)
Denominator:
Weighted-average shares used in computing net loss per share, basic	65,592,780		61,192,576
Net loss per share, basic	$	(0.21)	$	(0.41)


	Three Months Ended March 31,
	2023		2022

Numerator:
Net loss	$	(14,071)	$	(25,222)
(Gain)/loss attributable to September 2021 Convertible Notes	—		(1,575)
(Gain)/loss attributable to July 2021 Convertible Notes	—		(914)
Interest attributable to July 2021 and September 2021 Convertible Notes	—		127
Adjusted net loss for diluted earnings per share	(14,071)		(27,584)
Denominator:
Weighted-average shares used in computing net loss per share, basic	65,592,780		61,192,576
Effect of dilutive securities:
September 2021 Convertible Notes	—		510,504
July 2021 Convertible Notes	—		176,422
Adjusted weighted-average shares used in computing net loss per share, diluted	65,592,780		61,879,502
Net loss per share, diluted	$	(0.21)	$	(0.45)

Antidilutive common shares excluded from computation

The potential shares of common stock that were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive are as follows:


	As of March 31,
	2023	2022

Issuances under stock incentive plan	7,708,686	7,879,793
Issuances upon exercise of common stock warrants	137,658	205,109
Issuances upon vesting of restricted stock units	5,109,200	5,341,004
Issuances of convertible notes	516,758	—
Shares reserved for shares available to be granted but not granted yet	4,745,197	2,953,884
	18,217,499	16,379,790

Balance Sheet Components - Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remaining lease terms	1 year
Operating lease costs	$ 245	$ 394
Operating lease right-of-use asset	571		$ 802
Operating lease liability, current (included in accrued expenses and other current liabilities)	$ 580		$ 813
Operating lease liability, current, location	Accrued expenses and other current liabilities		Accrued expenses and other current liabilities
Weighted-average remaining term	8 months 12 days		1 year 3 months 18 days
Weighted-average discount rate	5.00%
Maturities of operating lease liabilities
Remainder of 2023	$ 588
Less imputed interest	(8)
Total operating lease liability	580
Payments for operating leases	$ 300	$ 600

Nature of Business

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business

Life360, Inc. (the “Company”) is a leading technology platform used to locate the people, pets and things that matter most to families. The Company was incorporated in the State of Delaware in 2007. The Company’s core offering, the Life360 mobile application, includes features that range from communications to driving safety and location sharing. The Company operates under a “freemium” model where its core offering is available to users at no charge, with three membership subscription options that are available but not required. The Company also generates revenue through monetization arrangements with certain commercial third parties (“Data Revenue Partners”) through Lead Generation and license agreements (including aggregated insights into the data collected from the Company’s user base). On September 1, 2021, the Company acquired all ownership interests of Jio, Inc (“Jiobit”). Jiobit is a provider of wearable location devices for young children, pets, and seniors. On January 5, 2022, the Company acquired all ownership interests of Tile, Inc. (“Tile”). Tile is a smart location company whose products include a Bluetooth enabled device and related accessories that work in tandem with the Tile application to enable its customers to locate lost or misplaced objects.

On January 12, 2023, the Company announced a workforce restructure which resulted in a reduction of the Company’s workforce of approximately 14%. The Company incurred $3.3 million in non-recurring personnel and severance related expenses in connection with the restructure during the three months ended March 31, 2023. As of March 31, 2023, approximately $0.4 million of the expense incurred remains unpaid and is included within accrued expenses and other current liabilities on the condensed consolidated balance sheet.

The restructuring costs are recognized in the condensed consolidated statements of operations for the three months ended March 31, 2023 as follows (in thousands):


	Personnel and Severance and Related Expenses
Cost of subscription revenue	$	61
Cost of hardware revenue	91
Research and development	1,878
Sales and marketing	666
General and administrative	558
Total	$	3,254

Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands			3 Months Ended
	Jan. 05, 2022	Sep. 01, 2021	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash			$ 14,695	$ 14,900	$ 15,499
Restricted cash, current			13,094	13,274
Restricted cash, noncurrent			$ 1,601	1,647
Tile
Restricted Cash and Cash Equivalents Items [Line Items]
Consideration, indemnity escrow, term	15 months	15 months	15 months
Jiobit
Restricted Cash and Cash Equivalents Items [Line Items]
Consideration, indemnity escrow, term		18 months
Indemnity escrow fund \| Tile
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash, current			$ 13,100	13,100
Indemnity escrow fund \| Jiobit
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash, current				$ 200

Balance Sheet Components

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Accounts receivable, net

Accounts receivable, net consists of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Accounts receivable	$	31,074	$	33,219
Allowance for doubtful accounts	(94)		(94)
Accounts receivable, net	$	30,980	$	33,125

Inventory

Inventory consists of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Raw materials	$	2,072	$	3,063
Finished goods	6,725		7,763
Total inventory	$	8,797	$	10,826

The Company recorded a raw materials inventory write-off of $0.9 million for the three months ended March 31, 2023. The write-off resulted primarily from a decision made in the current period to discontinue a product line in the Company’s product roadmap. The raw materials have no alternative use and have been fully written off for the three months ended March 31, 2023. There were no other inventory write-offs recorded for the three months ended March 31, 2022.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Prepaid expenses	$	9,232	$	6,925
Other receivables	828		1,623
Total prepaid expenses and other current assets	$	10,060	$	8,548

Prepaid expenses primarily consist of certain cloud platform and customer service program costs. Other receivables primarily consist of refunds owed to the Company and other amounts which the Company is expected to receive in future months.

Property and Equipment, net

Property and equipment, net consists of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Computer equipment	$	275	$	276
Leasehold improvements	100		100
Production manufacturing equipment	650		624
Construction in Progress	373		—
Furniture and fixtures	9		9
Total property and equipment, gross	1,407		1,009
Less: accumulated depreciation	(652)		(616)
Total property and equipment, net	$	755	$	393

Depreciation expense was $37 thousand and $0.1 million for the three months ended March 31, 2023 and 2022, respectively.

There was no impairment of property and equipment or long-lived assets recognized during the three months ended March 31, 2023 or 2022.

Prepaid Expenses and Other Assets, noncurrent

Prepaid expenses and other assets, noncurrent consist of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Prepaid expenses	$	1,743	$	1,524
Investment in affiliate	5,474		5,474
Other assets	51		136
Total prepaid expenses and other assets, noncurrent	$	7,268	$	7,134

Prepaid expenses primarily consist of cloud platform costs. Investment in affiliate relates to warrants to purchase shares of common stock of a current Data Revenue Partner.

Leases

The Company leases office space under various non-cancelable operating leases with remaining lease terms of up to 1 year, some of which include the option to extend the lease.

The Company did not have any finance leases as of March 31, 2023 or December 31, 2022.

The components of lease expense are as follows (in thousands):


	Three Months Ended March 31,
	2023		2022

Operating lease cost (1)	$	245	$	394

(1) Amounts include short-term leases, which are immaterial.

Supplemental balance sheet information related to leases is as follows (in thousands, except lease term):


	As of March 31,		As of December 31,
	2023		2022
Operating lease right-of-use asset	$	571	$	802
Operating lease liability, current (included in accrued expenses and other current liabilities)	580		813

Weighted-average remaining term for operating lease (in years)	0.7		1.3

The weighted-average discount rate used to measure the present value of the operating lease liabilities was 5.0%.

Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of March 31, 2023 were as follows (in thousands):


	Operating leases
Remainder of 2023	$	588


Less imputed interest	(8)
Total operating lease liability	$	580

Payments for operating leases included in cash from operating activities were $0.3 million and $0.6 million for the three months ended March 31, 2023 and 2022, respectively.

Goodwill and Intangible Assets, net

Intangible assets, net consists of the following (in thousands):


	As of March 31 2023,
	Gross		Accumulated Amortization		Net
Trade name	$	23,380	$	(3,008)	$	20,372
Technology	22,430		(5,827)		16,603
Customer relationships	15,290		(2,367)		12,923
Internal use software	1,050		(137)		913
Total	$	62,150	$	(11,339)	$	50,811


	As of December 31 2022,
	Gross		Accumulated Amortization		Net
Trade name	$	23,380	$	(2,424)	$	20,956
Technology	22,430		(4,705)		17,725
Customer relationships	15,290		(1,895)		13,395
Internal use software	701		(78)		623
Total	$	61,801	$	(9,102)	$	52,699

The Company capitalized $0.3 million and $0.2 million in internal use software during the three months ended March 31, 2023 and 2022, respectively.

Amortization expense was $2.2 million and $2.1 million for the three months ended March 31, 2023 and 2022, respectively.

There was no impairment of intangible assets recorded during the three months ended March 31, 2023 or 2022.

As of March 31, 2023, estimated remaining amortization expense for intangible assets by fiscal year is as follows (in thousands):


	Amount

Remainder of 2023	$	6,766
2024	9,060
2025	8,981
2026	8,500
2027 and Beyond	17,504

Total future amortization expense	$	50,811

The weighted-average remaining useful lives of the Company’s acquired intangible assets are as follows:


	Weighted-Average Remaining Useful Life
	As of March 31,	As of December 31,
	2023	2022
Trade name	8.7 years	9.0 years
Technology	3.7 years	3.9 years
Customer relationships	6.9 years	7.1 years
Internal use software	2.5 years	2.8 years

As of March 31, 2023 and December 31, 2022, goodwill was $133.7 million. No goodwill impairments were recorded during the three months ended March 31, 2023 or 2022.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other liabilities consist of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Accrued vendor expenses	$	7,611	$	4,868
Accrued compensation	3,163		3,900
Customer related promotions and discounts	4,192		10,871
Operating lease liability	580		813
Sales return reserves	3,059		2,952
Other current liabilities	4,376		3,611
Total accrued expenses and other current liabilities	$	22,981	$	27,015

Other current liabilities primarily relate to warranty liabilities related to the Company’s hardware tracking devices and inventory received not yet billed.

Escrow Liability

The escrow liability as of March 31, 2023 relates to restricted cash associated with the acquisition of Tile (the “Tile Acquisition”), which was placed in an indemnity escrow fund to be held for fifteen months after the acquisition date for general representations and warranties. The initial balances were included within total consideration transferred.

The escrow liability as of December 31, 2022 relates to restricted cash associated with the Tile Acquisition, $13.1 million, and the acquisition of Jiobit (the “Jiobit Acquisition”), $0.2 million, placed in an indemnity escrow fund to be held for fifteen months and eighteen months, respectively, after the acquisition date for general representations and warranties. The initial balances were included within total consideration transferred.

Balance Sheet Components - Inventory (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 2,072		$ 3,063
Finished goods	6,725		7,763
Total inventory	8,797		$ 10,826
Inventory write-off	$ 916	$ 0

Nature of Business (Tables)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restructuring costs

The restructuring costs are recognized in the condensed consolidated statements of operations for the three months ended March 31, 2023 as follows (in thousands):


	Personnel and Severance and Related Expenses
Cost of subscription revenue	$	61
Cost of hardware revenue	91
Research and development	1,878
Sales and marketing	666
General and administrative	558
Total	$	3,254

Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jan. 05, 2022
Business Acquisition [Line Items]
Goodwill	$ 133,674	$ 133,674
Tile
Business Acquisition [Line Items]
Cash			$ 32,997
Restricted cash			1,050
Accounts receivable			27,826
Prepaid expenses and other current assets			5,004
Inventory			8,320
Property and equipment			570
Prepaid expenses and other assets, noncurrent			482
Intangible assets			52,700
Goodwill			102,547
Accounts payable			(23,197)
Accrued expenses and other current liabilities			(24,613)
Deferred revenue			(10,203)
Total acquisition consideration			$ 173,483

Related-Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Feb. 29, 2016
Chief Executive Officer
Related Party Transaction [Line Items]
Secured notes related party				$ 600
Proceeds from repayment of notes	$ 300
Deposit liabilities	0		$ 300
Director
Related Party Transaction [Line Items]
Related party expenses	0	$ 100
Spouse of Chief Executive Officer
Related Party Transaction [Line Items]
Related party expenses	$ 0	$ 7

Derivative Liability (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Derivative Liability (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jul. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liability	$ 87	$ 101	$ 700
Derivative liability, location not disclosed	derivative liability	derivative liability

Summary of Significant Accounting Policies - Channel and Retail Partners Greater Than 10% (Details) - Customer concentration risk	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue benchmark \| Channel Partner A
Concentration Risk [Line Items]
Concentration risk, percentage	56.00%	46.00%
Revenue benchmark \| Channel Partner B
Concentration Risk [Line Items]
Concentration risk, percentage	15.00%	15.00%
Revenue benchmark \| Retail Partner A
Concentration Risk [Line Items]
Concentration risk, percentage		12.00%
Accounts receivable \| Channel Partner A
Concentration Risk [Line Items]
Concentration risk, percentage	60.00%		33.00%
Accounts receivable \| Data Partner A
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%		11.00%
Accounts receivable \| Retail Partner A
Concentration Risk [Line Items]
Concentration risk, percentage			23.00%

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Total revenue	$ 68,143	$ 50,970
Total cost of revenue	18,313	15,852
Gross Profit	49,830	35,118
Operating expenses:
Research and development	27,197	25,737
Sales and marketing	24,316	23,242
General and administrative	13,209	13,246
Total operating expenses	64,722	62,225
Loss from operations	(14,892)	(27,107)
Other income (expense):
Convertible notes fair value adjustment	72	1,575
Derivative liability fair value adjustment	14	914
Other income (expense), net	843	(546)
Total other income (expense), net	929	1,943
Loss before income taxes	(13,963)	(25,164)
Provision for income taxes	108	58
Net loss	$ (14,071)	$ (25,222)
Net loss per share, basic (in usd per share)	$ (0.21)	$ (0.41)
Net loss per share, diluted (in usd per share)	$ (0.21)	$ (0.45)
Weighted-average shares used in computing net loss per share, basic (in shares)	65,592,780	61,192,576
Weighted-average shares used in computing net loss per share, diluted (in shares)	65,592,780	61,879,502
Comprehensive loss
Net loss	$ (14,071)	$ (25,222)
Change in foreign currency translation adjustment	24	29
Total comprehensive loss	(14,047)	(25,193)
Subscription
Total revenue	51,664	33,062
Total cost of revenue	8,045	7,071
Hardware
Total revenue	9,984	9,647
Total cost of revenue	9,426	7,806
Other
Total revenue	6,495	8,261
Total cost of revenue	$ 842	$ 975

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 1,407		$ 1,009
Less: accumulated depreciation	(652)		(616)
Total property and equipment, net	755		393
Depreciation	37	$ 100
Impairment of long-lived assets	0	$ 0
Computer equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	275		276
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	100		100
Production manufacturing equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	650		624
Construction in Progress
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	373		0
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 9		$ 9

Net Loss Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per ShareBasic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the fiscal period. Diluted net loss per share is computed by giving effect to potential convertible securities. The dilutive effect of the outstanding September 2021 Convertible Notes and July 2021 Convertible Notes are reflected in diluted net loss per share by application of the if-converted method.

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


	Three Months Ended March 31,
	2023		2022

Numerator:
Net loss	$	(14,071)	$	(25,222)
Denominator:
Weighted-average shares used in computing net loss per share, basic	65,592,780		61,192,576
Net loss per share, basic	$	(0.21)	$	(0.41)


	Three Months Ended March 31,
	2023		2022

Numerator:
Net loss	$	(14,071)	$	(25,222)
(Gain)/loss attributable to September 2021 Convertible Notes	—		(1,575)
(Gain)/loss attributable to July 2021 Convertible Notes	—		(914)
Interest attributable to July 2021 and September 2021 Convertible Notes	—		127
Adjusted net loss for diluted earnings per share	(14,071)		(27,584)
Denominator:
Weighted-average shares used in computing net loss per share, basic	65,592,780		61,192,576
Effect of dilutive securities:
September 2021 Convertible Notes	—		510,504
July 2021 Convertible Notes	—		176,422
Adjusted weighted-average shares used in computing net loss per share, diluted	65,592,780		61,879,502
Net loss per share, diluted	$	(0.21)	$	(0.45)


	As of March 31,
	2023	2022

Issuances under stock incentive plan	7,708,686	7,879,793
Issuances upon exercise of common stock warrants	137,658	205,109
Issuances upon vesting of restricted stock units	5,109,200	5,341,004
Issuances of convertible notes	516,758	—
Shares reserved for shares available to be granted but not granted yet	4,745,197	2,953,884
	18,217,499	16,379,790

Business Combinations - Identifiable Intangible Assets Acquired (Details) - Tile $ in Thousands	Jan. 05, 2022 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 52,700
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 18,400
Estimated useful life	5 years
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 20,000
Estimated useful life	10 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value	$ 14,300
Estimated useful life	8 years

Costs Capitalized to Obtain Contracts

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Costs Capitalized to Obtain Contracts

Deferred Revenue

Costs Capitalized to Obtain Contracts

The following table represents a roll forward of the Company’s costs capitalized to obtain contracts, net (in thousands):


	Three Months Ended March 31,
	2023		2022
Capitalized costs to obtain contracts, beginning of period	$	2,063	$	1,649
Acquired costs capitalized to obtain contracts	—		849
Additions to capitalized costs to obtain contracts	499		272
Amortization of capitalized costs to obtain contracts	(439)		(936)
Capitalized costs to obtain contracts, end of period	$	2,123	$	1,834

- Definition

+ References

+ Details

Balance Sheet Components - Escrow Liability (Details) - USD ($) $ in Thousands			3 Months Ended
	Jan. 05, 2022	Sep. 01, 2021	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Restricted cash, current			$ 13,094	$ 13,274
Tile
Business Acquisition [Line Items]
Consideration, indemnity escrow, term	15 months	15 months	15 months
Tile \| Indemnity escrow fund
Business Acquisition [Line Items]
Restricted cash, current			$ 13,100	13,100
Jiobit
Business Acquisition [Line Items]
Consideration, indemnity escrow, term		18 months
Jiobit \| Indemnity escrow fund
Business Acquisition [Line Items]
Restricted cash, current				$ 200

Equity Incentive Plan - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 8,955	$ 6,095
Cost of revenue
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	342	222
Cost of revenue \| Subscription
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	125	152
Cost of revenue \| Hardware
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	206	17
Cost of revenue \| Other
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	11	53
Research and development
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	4,786	3,591
Sales and marketing
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	926	843
General and administrative
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 2,901	$ 1,439

Equity Incentive Plan

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plan

2011 Equity Incentive Plan

The Company’s equity incentive plan allows the Company to grant restricted stock units, restricted stock and stock options to employees and consultants of the Company and any of the Company’s parent, subsidiaries, or affiliates, and to the members of the Board of Directors.

The following summary of stock option activity for the periods presented is as follows (in thousands, except share and per share data):


	Number of Shares Underlying Outstanding Options	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value
Balance as of December 31, 2022	8,180,840	$	7.05	5.61	$	40,827
Options granted	—	—
Options exercised	(185,073)	3.87
Options cancelled/forfeited	(287,081)	14.06
Balance as of March 31, 2023	7,708,686	6.85		5.21	30,916
Exercisable as of March 31, 2023	5,760,273	$	5.52	5.05	$	28,463

As of March 31, 2023, there was total unrecognized compensation cost for outstanding stock options of $8.4 million to be recognized over a period of approximately 2.6 years.

The following summary of Restricted Stock Units (RSU) activity for the periods presented is as follows:


	Number of Shares	Weighted average grant date fair value
Balance as of December 31, 2022	6,779,892	$	11.58
RSU granted	569,389	11.77
RSU vested and settled	(1,440,125)	10.23
RSU cancelled/forfeited	(799,956)	11.92
Balance as of March 31, 2023	5,109,200	$	11.60

As of March 31, 2023, there was unrecognized compensation cost for outstanding restricted stock units of $47.0 million to be recognized over a period of approximately 2.3 years.

The number of RSUs vested and settled includes shares of common stock that the Company withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

Stock-based Compensation

Stock-based compensation expense was allocated as follows (in thousands):


	Three Months Ended March 31,
	2023		2022

Cost of revenue
Subscription costs	$	125	$	152
Hardware costs	206		17
Other costs	11		53
Total cost of revenue	342		222
Research and development	4,786		3,591
Sales and marketing	926		843
General and administrative	2,901		1,439
Total stock-based compensation expense	$	8,955	$	6,095

There were no capitalized stock-based compensation costs or recognized stock-based compensation tax benefits during the three months ended March 31, 2023 and 2022, respectively.

Equity Awards Issued in Connection with Business Combinations

Jio, Inc.

In connection with the Jiobit Acquisition in September 2021, the Company issued 91,217 shares of restricted common stock with an aggregate fair value of $1.9 million to be recognized as post combination stock-based compensation ratably with continuous employment of certain employees over a 3 year period.

In January 2023, a key employee of the Jiobit Acquisition terminated employment with the Company. As part of such employee’s separation agreement, the Company recorded $0.2 million to compensation included in general and administrative expense related to their Revesting Stock. As of March 31, 2023 and December 31, 2022, there was zero and $0.2 million of unrecognized compensation expense, respectively, related to this restricted common stock which is expected to be recognized over the remaining weighted average life of zero years and 1.7 years, respectively.

Additionally, the Company granted 43,083 service-based stock options under the Plan to certain Jiobit employees with an aggregate fair value of $0.5 million which vests ratably over the requisite service period. As of March 31, 2023, there was $0.1 million of unrecognized compensation expense related to unvested assumed stock options, which is expected to be recognized over the remaining weighted average life of 1.6 years. As of December 31, 2022, there was $0.2 million of unrecognized compensation expense related to unvested assumed stock options, which is expected to be recognized over the remaining weighted average life of 1.8 years.

Tile, Inc.

In connection with the Tile Acquisition in January 2022, the Company issued 1,499,349 shares of retention restricted stock units with an aggregate fair value of $29.6 million. Of the 1,499,349 shares of retention restricted stock units, 787,446 shares valued at $15.6 million contained performance vesting criteria based on the achievement of certain company milestones during the three months ended March 31, 2022, and vest over a two year period. As of March 31, 2022, the vesting criteria had not been met and all 787,446 restricted stock units were forfeited. The remaining 711,903 retention restricted stock units vest over a two to four year period. As of March 31, 2023, there was $3.6 million of unrecognized compensation expense related to the retention restricted stock units which is expected to be recognized over the remaining weighted average life of 1.4 years.

The Company also issued 38,730 vested common stock options to Tile employees as stock-based compensation on the acquisition date. The aggregate fair value of $0.4 million was recognized as compensation expense on the date of acquisition.

A total of 694,672 shares of common stock with an aggregate fair value of $13.7 million were issued to Tile shareholders as part of purchase consideration. All $13.7 million was included within purchase consideration.

A total of 1,561 shares of common stock with an aggregate fair value of $31 thousand were issued to a key employee, the vesting of which is subject to continued employment over a 30-month period. As of March 31, 2023, there was $14 thousand of unrecognized compensation expense related to unvested restricted stock units which is expected to be recognized over the remaining 1.3 years.

A total of 84,524 shares of common stock were issued as part of consideration transferred and were placed in an indemnity escrow fund to be held for fifteen months after the acquisition date for general representations and warranties. The aggregate fair value of $1.7 million was included within purchase consideration. Refer to Note 19 “Subsequent Events” for further details.

Balance Sheet Components - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Goodwill	$ 133,674		$ 133,674
Goodwill impairments	$ 0	$ 0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Equity Incentive Plan - Restricted Stock Units Activity (Details) - Restricted stock units	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Shares
Balance (in shares) \| shares	6,779,892
RSU granted (in shares) \| shares	569,389
RSU vested and settled (in shares) \| shares	(1,440,125)
RSU cancelled/forfeited (in shares) \| shares	(799,956)
Balance (in shares) \| shares	5,109,200
Weighted average grant date fair value
Balance (in usd per share) \| $ / shares	$ 11.58
RSU granted (in usd per share) \| $ / shares	11.77
RSU vested and settled (in usd per share) \| $ / shares	10.23
RSU cancelled/forfeited (in usd per share) \| $ / shares	11.92
Balance (in usd per share) \| $ / shares	$ 11.60

Business Combinations

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Business Combinations

Tile, Inc.

On January 5, 2022, the Company completed the acquisition of Tile, Inc. (“Tile”), a privately held consumer electronics company. The company is based in San Mateo, California and was founded in 2012. Tile is a smart location company whose products include a Bluetooth enabled device and related accessories that work in tandem with the Tile application, to enable its customers to locate lost or misplaced objects. Tile offers a comprehensive list of products to use with the Tile application, along with optional subscription services to enhance features offered for Tile products. The addition of Tile is expected to strengthen and extend Life360’s market leadership position by leveraging Tile’s developed technology and customer relationships to accelerate the Company’s own product development and augment the Life360 team with a critical mass of talent. The aggregate purchase consideration was $173.5 million, of which $158.1 million was paid in cash and $15.4 million paid in equity. The $15.4 million in equity was comprised of 780,593 shares of the Company’s common stock valued on the date of acquisition and 534,465 shares of common stock contingent consideration which was promised upon reaching certain operational goals. Of the consideration transferred, $14.1 million in cash and 84,524 common shares were placed in an indemnity escrow fund to be held for fifteen months after the acquisition date for general representations and warranties. Refer to Note 19 “Subsequent Events” for further details.

A total of $35.0 million was excluded from purchase consideration which consists of retention compensation of 1,499,349 shares of retention restricted stock units valued at $29.6 million, $0.4 million related to 38,730 vested common stock options issued to Tile employees as stock-based compensation on the acquisition date and change in control bonuses of $3.0 million which were recognized as compensation expense on the condensed consolidated statements of operations on the acquisition date. The Company incurred transaction related expenses of $1.7 million, which were recorded under general and administrative expenses in the condensed consolidated statements of operations. The remaining costs excluded from purchase consideration were a result of 1,561 shares granted to key employee and vested based continued employment and 4,784 shares of contingent consideration granted to a key employee and vested based on continued employment.

Of the 1,499,349 shares of retention restricted stock units, 787,446 shares valued at $15.6 million contain performance vesting criteria based on the achievement of certain company milestones, and vest over a two year period. The remaining retention restricted stock units of 711,903 shares vest over a two to four year period.

The contingent consideration was based on the Company’s achievement of certain targets for revenue and earnings before interest, taxes, depreciation, and amortization for the three months ended December 31, 2021 and the three months ended March 31, 2022. The Company determined that the criteria to satisfy the contingent consideration was not met, and as such, no value was ascribed to the contingent consideration.

The acquisition was accounted for as a business combination and the total purchase consideration was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their fair values on the acquisition date and the excess was recorded to goodwill. The provisional values assigned to the assets acquired and liabilities assumed were based on estimates of fair value and were finalized as of January 5, 2023.

The assets acquired and liabilities assumed in connection with the acquisition were recorded at their fair value on the date of acquisition as follows (in thousands):


	Fair Value
Cash	$	32,997
Restricted cash	1,050
Accounts receivable	27,826
Prepaid expenses and other current assets	5,004
Inventory	8,320
Property and equipment	570
Prepaid expenses and other assets, noncurrent	482
Intangible assets	52,700
Goodwill	102,547
Accounts payable	(23,197)
Accrued expenses and other current liabilities	(24,613)
Deferred revenue	(10,203)
Total acquisition consideration	$	173,483

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:


	Fair Value (in thousands)		Estimated Useful Life (in years)
Developed technology	$	18,400	5
Trade name	20,000		10
Customer relationships	14,300		8
Total identified intangible assets	$	52,700

Goodwill represents the future economic benefits arising from other assets that could not be individually identified and separately recognized, such as the acquired assembled workforce of Tile. In addition, goodwill represents the future benefits as a result of the acquisition that will enhance the Company’s product available to both new and existing customers and increase the Company’s competitive position. The goodwill is not deductible for tax purposes.

The results of operations of Tile are included in the accompanying condensed consolidated statements of operations and comprehensive loss from the date of acquisition.

Common Stock - Shares Reserved for Issuance (Details) - shares	Mar. 31, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Reserved shares of common stock (in shares)	18,217,499	16,011,495
Issuances under stock incentive plan
Class of Stock [Line Items]
Reserved shares of common stock (in shares)	7,708,686	8,180,840
Issuances upon exercise of common stock warrants
Class of Stock [Line Items]
Reserved shares of common stock (in shares)	137,658	137,658
Issuances upon vesting of restricted stock units
Class of Stock [Line Items]
Reserved shares of common stock (in shares)	5,109,200	6,779,892
Issuances of convertible notes
Class of Stock [Line Items]
Reserved shares of common stock (in shares)	516,758	516,758
Shares reserved for shares available to be granted but not granted yet
Class of Stock [Line Items]
Reserved shares of common stock (in shares)	4,745,197	396,347

Commitments and Contingencies (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Purchase commitments	$ 172.0	$ 138.9

Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts receivable, net

Accounts receivable, net consists of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Accounts receivable	$	31,074	$	33,219
Allowance for doubtful accounts	(94)		(94)
Accounts receivable, net	$	30,980	$	33,125

Inventory

Inventory consists of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Raw materials	$	2,072	$	3,063
Finished goods	6,725		7,763
Total inventory	$	8,797	$	10,826

Prepaid expenses and other assets

Prepaid expenses and other current assets consist of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Prepaid expenses	$	9,232	$	6,925
Other receivables	828		1,623
Total prepaid expenses and other current assets	$	10,060	$	8,548

Prepaid expenses and other assets, noncurrent consist of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Prepaid expenses	$	1,743	$	1,524
Investment in affiliate	5,474		5,474
Other assets	51		136
Total prepaid expenses and other assets, noncurrent	$	7,268	$	7,134

Property and equipment, net

Property and equipment, net consists of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Computer equipment	$	275	$	276
Leasehold improvements	100		100
Production manufacturing equipment	650		624
Construction in Progress	373		—
Furniture and fixtures	9		9
Total property and equipment, gross	1,407		1,009
Less: accumulated depreciation	(652)		(616)
Total property and equipment, net	$	755	$	393

Operating lease costs

The components of lease expense are as follows (in thousands):


	Three Months Ended March 31,
	2023		2022

Operating lease cost (1)	$	245	$	394

(1) Amounts include short-term leases, which are immaterial.

Supplemental balance sheet information related to leases

Supplemental balance sheet information related to leases is as follows (in thousands, except lease term):


	As of March 31,		As of December 31,
	2023		2022
Operating lease right-of-use asset	$	571	$	802
Operating lease liability, current (included in accrued expenses and other current liabilities)	580		813

Weighted-average remaining term for operating lease (in years)	0.7		1.3

Maturities of operating lease liabilities

Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of March 31, 2023 were as follows (in thousands):


	Operating leases
Remainder of 2023	$	588


Less imputed interest	(8)
Total operating lease liability	$	580

Intangibles, net

Intangible assets, net consists of the following (in thousands):


	As of March 31 2023,
	Gross		Accumulated Amortization		Net
Trade name	$	23,380	$	(3,008)	$	20,372
Technology	22,430		(5,827)		16,603
Customer relationships	15,290		(2,367)		12,923
Internal use software	1,050		(137)		913
Total	$	62,150	$	(11,339)	$	50,811


	As of December 31 2022,
	Gross		Accumulated Amortization		Net
Trade name	$	23,380	$	(2,424)	$	20,956
Technology	22,430		(4,705)		17,725
Customer relationships	15,290		(1,895)		13,395
Internal use software	701		(78)		623
Total	$	61,801	$	(9,102)	$	52,699

The weighted-average remaining useful lives of the Company’s acquired intangible assets are as follows:


	Weighted-Average Remaining Useful Life
	As of March 31,	As of December 31,
	2023	2022
Trade name	8.7 years	9.0 years
Technology	3.7 years	3.9 years
Customer relationships	6.9 years	7.1 years
Internal use software	2.5 years	2.8 years

Estimated remaining amortization expense for intangible assets

As of March 31, 2023, estimated remaining amortization expense for intangible assets by fiscal year is as follows (in thousands):


	Amount

Remainder of 2023	$	6,766
2024	9,060
2025	8,981
2026	8,500
2027 and Beyond	17,504

Total future amortization expense	$	50,811

Accrued expenses and other current liabilities

Accrued expenses and other liabilities consist of the following (in thousands):


	As of March 31,		As of December 31,
	2023		2022

Accrued vendor expenses	$	7,611	$	4,868
Accrued compensation	3,163		3,900
Customer related promotions and discounts	4,192		10,871
Operating lease liability	580		813
Sales return reserves	3,059		2,952
Other current liabilities	4,376		3,611
Total accrued expenses and other current liabilities	$	22,981	$	27,015

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Included below are select significant accounting policies. Refer to Note 2, “Summary of Significant Accounting Policies” in our Annual Report on Form 10-K for a full list of our significant accounting policies.

Basis of Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim periods and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that is normally required by GAAP can be condensed or omitted. All intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2022, included herein, was derived from the audited financial statements as of that date. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair statement of the results of operations for the interim periods presented and are not necessarily indicative of the Company’s future results of operations.

The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on March 23, 2023.

Reclassification of Prior Year Statement of Cash Flows Presentation

Certain prior year amounts on the condensed consolidated statement of cash flows have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the condensed consolidated statements of cash flows for the three months ended March 31, 2022 to reclassify internal use software, amortization of costs capitalized to obtain contracts, and non-cash revenue from affiliate. Such reclassifications had no material impact to the Company’s financial positions, operating cash flows, net loss or net loss per share attributable to common stockholders.

Use of Estimates

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, net revenue, and expenses. Significant items subject to such estimates, judgments, and assumptions include:

•revenue recognition, including the determination of selling prices for distinct performance obligations sold in multiple performance obligation arrangements, the period over which revenue is recognized for certain arrangements, and estimated delivery dates for orders with title transfer upon delivery;

•allowances for credit losses and product returns;

•promotional and marketing allowances;

•inventory valuation;

•average useful customer life;

•valuation of stock-based awards;

•legal contingencies;

•impairment of long-lived assets and goodwill;

•valuation of contingent consideration, convertible notes and embedded derivatives;

•useful lives of long-lived assets; and

•income taxes including valuation allowances on deferred tax assets.

The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. Actual results could differ significantly from those estimates.

Accounting pronouncements not yet adopted

Although there are several new accounting standards issued or proposed by the FASB, which the Company will adopt, as applicable, the Company does not believe any of these accounting pronouncements will have a material impact on its condensed consolidated financial statements.

Concentrations of Risk and Significant Customers

The Company depends on the constant real-time performance, reliability and availability of its technology system and access to its partner’s networks. The Company primarily relies on a single technology partner for its cloud platform and a limited number of contract manufacturers to assemble components of the Jiobit and Tile hardware tracking devices. Any adverse impacts to the platform and the contract manufacturers could negatively impact the Company’s relationships with its partners or users and may adversely impact its business, financial performance, and reputation.

The Company derives its accounts receivable from revenue earned from customers located in the United States and internationally. Channel and retail partners account for the majority of the Company’s revenue and accounts receivable for all periods presented.

The following tables set forth the information about the Company’s channel and retail partners who represented greater than 10% of its revenue or accounts receivable, respectively:


	Percentage of Revenue
	Three Months Ended March 31,
	2023		2022
Channel Partner A	56	%	46	%
Channel Partner B	15	%	15	%
Retail Partner A	*		12	%

* Represents less than 10%


	Percentage of Gross Accounts Receivable
	As of March 31,		As of December 31,
	2023		2022
Channel Partner A	60	%	33	%

Data Partner A	12	%	11	%
Retail Partner A	*		23	%

* Represents less than 10%

Cash and Cash Equivalents

The Company considers all highly liquid investment securities with remaining maturities at the date of purchase of three months or less to be cash equivalents. Cash and cash equivalents include deposit and money market funds. Money market mutual funds are valued using quoted market prices and therefore are classified within Level 1 of the fair value hierarchy.

Restricted Cash

Deposits of $14.7 million and $14.9 million were restricted from withdrawal as of March 31, 2023 and December 31, 2022, respectively. The restricted cash balance of $13.1 million as of March 31, 2023 relates to funds placed in an indemnity escrow fund to be held for fifteen months after the acquisition date of Tile (i.e., through April 2023) for general representations and warranties. The restricted cash balances associated with the Tile indemnity escrow fund is included within restricted cash, current on the accompanying balance sheet.

The restricted cash, noncurrent balance of $1.6 million as of March 31, 2023 relates to cash deposits restricted under letters of credit issued on behalf of the Company in support of indebtedness to trade creditors incurred in the ordinary course of business. The restricted cash, noncurrent balance of $1.6 million as of December 31, 2022 relates to funds placed in an indemnity escrow fund after the acquisition of Jiobit, and facility lease agreements.

Business Combinations (Tables)

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Assets acquired and liabilities assumed

The assets acquired and liabilities assumed in connection with the acquisition were recorded at their fair value on the date of acquisition as follows (in thousands):


	Fair Value
Cash	$	32,997
Restricted cash	1,050
Accounts receivable	27,826
Prepaid expenses and other current assets	5,004
Inventory	8,320
Property and equipment	570
Prepaid expenses and other assets, noncurrent	482
Intangible assets	52,700
Goodwill	102,547
Accounts payable	(23,197)
Accrued expenses and other current liabilities	(24,613)
Deferred revenue	(10,203)
Total acquisition consideration	$	173,483

Identifiable intangible assets acquired

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:


	Fair Value (in thousands)		Estimated Useful Life (in years)
Developed technology	$	18,400	5
Trade name	20,000		10
Customer relationships	14,300		8
Total identified intangible assets	$	52,700

Convertible Notes - Fair Value Assumptions - Warrants (Details)	Jul. 31, 2021 $ / shares
Warrants Tranche 1
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Term of warrants	1 year
Warrants Tranche 1 \| Fair market value of common stock
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	15.36
Warrants Tranche 1 \| Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0
Warrants Tranche 1 \| Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.0009
Warrants Tranche 1 \| Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.5200
Warrants Tranche 2
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Term of warrants	5 years
Warrants Tranche 2 \| Fair market value of common stock
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	15.36
Warrants Tranche 2 \| Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0
Warrants Tranche 2 \| Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.0089
Warrants Tranche 2 \| Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.4740
Warrants Tranche 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Term of warrants	5 years
Warrants Tranche 3 \| Fair market value of common stock
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	15.36
Warrants Tranche 3 \| Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0
Warrants Tranche 3 \| Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.0089
Warrants Tranche 3 \| Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.4740

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for interim periods is determined using an estimated annual effective tax rate in accordance with Accounting Standards Codification (“ASC”) 740-270, Income Taxes, Interim Reporting. The effective tax rate may be subject to fluctuations during the year as new information is obtained, which may affect the assumptions used to estimate the annual effective tax rate, including factors such as valuation allowances against deferred tax assets, the recognition or de-recognition of tax benefits related to uncertain tax position, if any, and changes in or the interpretation of tax laws in jurisdictions where the Company conducts business. The Company recorded a provision for incomes taxes of $0.1 million and $0.1 million for the three months ended March 31, 2023 and 2022, respectively. In accordance with the Tax Cuts and Jobs Act of 2017, research and experimental (R&E) expenses under Internal Revenue Code Section 174 are required to be capitalized beginning in 2022. R&E expenses are required to be amortized over a period of five years for domestic expenses and fifteen years for foreign expenses. The Company has capitalized R&E expenditures in its income tax provision as a result. Accordingly, in the three months ended March 31, 2023, the Company recorded a $0.1 million state income tax expense primarily due to state conformity to Internal Revenue Code Section 174. In accordance with ASC 805, a change in the acquirer’s valuation allowance that stems from a business combination should be recognized as an element of the acquirer’s income tax expense or benefit in the period of acquisition. Accordingly, in the three months ended March 31, 2022, the Company recorded a provisional $0.1 million partial release of its valuation allowance and a corresponding income tax benefit stemming from the Tile Acquisition, respectively. The benefit was offset by the state income taxes for the three months ended March 31, 2022.

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Segment and Geographic Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

The Company operates as a single operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. All material long-lived assets are based in the United States.

Revenue by geography is generally based on the address of the customer as defined in the contract with the customer. The following table sets forth revenue by geographic region (in thousands):


	Three Months Ended March 31,
	2023		2022

North America	$	60,801	$	46,052
Europe, Middle East and Africa	4,318		3,200
Other international regions	3,024		1,718
Total revenue	$	68,143	$	50,970

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 9,232	$ 6,925
Other receivables	828	1,623
Total prepaid expenses and other current assets	$ 10,060	$ 8,548

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain on revaluation of contingent consideration	$ 0	$ 4,000	$ 5,300
Derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (loss) for change in fair value of derivative liability	14	(900)	1,295
Convertible notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (loss) for change in fair value of derivative liability	$ 72	$ (1,600)	$ 1,786

Common Stock

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Common Stock

As of March 31, 2023 and December 31, 2022, the Company was authorized to issue up to 100,000,000 shares of par value $0.001 per share common stock.

The Company has also issued shares of common stock as a result of stock option exercises throughout its existence. Common stockholders are entitled to dividends when and if declared by the Board of Directors subject to the prior rights of the preferred stockholders. The holder of each share of common stock is entitled to one vote. The common stockholders voting as a class are entitled to elect three members to the Company’s Board of Directors. No dividends have been declared in the Company’s existence.

The Company has the following potentially outstanding common stock reserved for issuance:


	As of March 31,	As of December 31,
	2023	2022

Issuances under stock incentive plan	7,708,686	8,180,840
Issuances upon exercise of common stock warrants	137,658	137,658
Issuances upon vesting of restricted stock units	5,109,200	6,779,892
Issuances of convertible notes	516,758	516,758
Shares reserved for shares available to be granted but not granted yet	4,745,197	396,347
	18,217,499	16,011,495

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Equity Incentive Plan (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock option activity

The following summary of stock option activity for the periods presented is as follows (in thousands, except share and per share data):


	Number of Shares Underlying Outstanding Options	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value
Balance as of December 31, 2022	8,180,840	$	7.05	5.61	$	40,827
Options granted	—	—
Options exercised	(185,073)	3.87
Options cancelled/forfeited	(287,081)	14.06
Balance as of March 31, 2023	7,708,686	6.85		5.21	30,916
Exercisable as of March 31, 2023	5,760,273	$	5.52	5.05	$	28,463

Restricted Stock Units activity

The following summary of Restricted Stock Units (RSU) activity for the periods presented is as follows:


	Number of Shares	Weighted average grant date fair value
Balance as of December 31, 2022	6,779,892	$	11.58
RSU granted	569,389	11.77
RSU vested and settled	(1,440,125)	10.23
RSU cancelled/forfeited	(799,956)	11.92
Balance as of March 31, 2023	5,109,200	$	11.60

Stock-based compensation expense

Stock-based compensation expense was allocated as follows (in thousands):


	Three Months Ended March 31,
	2023		2022

Cost of revenue
Subscription costs	$	125	$	152
Hardware costs	206		17
Other costs	11		53
Total cost of revenue	342		222
Research and development	4,786		3,591
Sales and marketing	926		843
General and administrative	2,901		1,439
Total stock-based compensation expense	$	8,955	$	6,095

Convertible Notes - Contractual Future Principal Payments (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
Remainder of 2023	$ 3,365
2024	3,365
2025	0
2026	2,110
Total principal outstanding	8,840
Fair value adjustment	(1,163)
Total convertible notes	$ 7,677

- Definition

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

+ References + Details

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn April 2023, the Company released $13.1 million of its restricted cash and 84,524 common shares which were previously held in indemnity escrow as part of the Tile Acquisition for general representations and warranties, fifteen months after the acquisition date.

Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended
Deferred Revenue (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 16.8	$ 12.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	32.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 30.1
Remaining performance obligation, expected timing of satisfaction	12 months