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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from                          to                         
Commission file number 001-33508
 
EDGIO, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware20-1677033
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
11811 North Tatum Blvd., Suite 3031,
Phoenix, AZ 85028
(Address of principal executive offices, including Zip Code)
(602850-5000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act;
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareEGIONasdaq
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filer
Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No  
The number of shares outstanding of the registrant’s Common Stock, par value $0.001 per share, as of November 4, 2022: 221,584,775 shares.


Table of Contents
EDGIO, INC.
FORM 10-Q
Quarterly Period Ended September 30, 2022
TABLE OF CONTENTS
  Page
PART I. FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II. OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 


Table of Contents
Special Note Regarding Forward-Looking Statement
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this Quarterly Report on Form 10-Q, other than statements of historical fact, are forward-looking statements. Forward-looking statements generally can be identified by the words “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue,” and similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events, as well as trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These statements include, among other things:
our beliefs regarding delivery traffic growth trends and demand for digital content and edge services;
our expectations regarding revenue, costs, expenses, gross margin, non-generally accepted accounting principles (Non-GAAP) net income (loss), EBITDA, and Adjusted EBITDA and capital expenditures;
our plans regarding investing in our content delivery network and Application Operations (“AppOps”), our coordinated complete solution to deliver instant, secure website applications, as well as other products and technologies;
our beliefs regarding the competition within the digital edge platform industry;
our beliefs regarding the growth of our business and how that impacts our liquidity and capital resources requirements;
our expectations regarding headcount and our ability to recruit personnel;
the impact of certain new accounting standards and guidance as well as the time and cost of continued compliance with existing rules and standards;
our plans with respect to investments in marketable securities;
our expectations and strategies regarding acquisitions;
our expectations regarding litigation and other pending or potential disputes;
our estimations regarding taxes and belief regarding our tax reserves;
our beliefs regarding the use of Non-GAAP financial measures;
our approach to identifying, attracting and keeping new and existing clients, our focus on core market growth segments where we have a right-to-win, as well as our expectations regarding client turnover;
the sufficiency of our sources of funding;
our beliefs regarding our interest rate risk;
our beliefs regarding inflation risks;
our beliefs regarding expense and productivity of and competition for our sales force;
our beliefs regarding the significance of our large clients; and
our beliefs regarding the impact of health epidemics and pandemics, including the outbreak of COVID-19, on our current and potential clients, our balance sheet, financial condition, and results of operations.
These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under the caption “Risk Factors” in Part II, Item 1A in this Quarterly Report on Form 10-Q and those discussed in other documents we file with the Securities and Exchange Commission (the “SEC”).
In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
The forward-looking statements contained herein are based on our current expectations and assumptions and on information available as of the date of the filing of this Quarterly Report on Form 10-Q. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Unless expressly indicated or the context requires otherwise, the terms Edgio, we, us, and our in this document refer to Edgio, Inc., a Delaware corporation, and, where appropriate, its wholly owned subsidiaries. All information is presented in thousands, except per share amounts, client count, headcount and where specifically noted.



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PART I. FINANCIAL INFORMATION
Item 1.        Financial Statements
Edgio, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
September 30,
2022
December 31,
2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$59,306 $41,918 
Marketable securities11,444 37,367 
Accounts receivable, net122,397 42,217 
Income taxes receivable59 61 
Prepaid expenses and other current assets28,775 13,036 
Total current assets221,981 134,599 
Property and equipment, net91,670 33,622 
Operating lease right of use assets6,680 6,338 
Marketable securities, less current portion40 40 
Deferred income taxes2,745 1,893 
Goodwill171,065 114,511 
Intangible assets, net67,738 14,613 
Other assets7,780 5,485 
Total assets$569,699 $311,101 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$39,755 $11,631 
Deferred revenue6,357 3,266 
Operating lease liability obligations4,396 1,861 
Income taxes payable433 873 
Other current liabilities86,754 19,292 
Total current liabilities137,695 36,923 
Convertible senior notes, net122,416 121,782 
Operating lease liability obligations, less current portion10,511 9,616 
Deferred income taxes95 308 
Deferred revenue, less current portion2,938 116 
Other long-term liabilities710 777 
Total liabilities274,365 169,522 
Commitments and contingencies
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued
  and outstanding
  
Common stock, $0.001 par value; 300,000 shares authorized; 221,583 and 134,337 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively
222 134 
Common stock contingent consideration16,300  
Additional paid-in capital797,508 576,807 
Accumulated other comprehensive loss(13,462)(8,345)
Accumulated deficit(505,234)(427,017)
Total stockholders’ equity295,334 141,579 
Total liabilities and stockholders’ equity$569,699 $311,101 
The accompanying notes are an integral part of the unaudited consolidated financial statements.
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Edgio, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
 Three months ended September 30,Nine months ended September 30,
 2022202120222021
Revenue$121,156 $55,202 $253,426 $154,745 
Cost of revenue:
Cost of services (1)74,421 33,687 155,578 99,708 
Depreciation — network9,841 5,685 20,833 17,293 
Total cost of revenue84,262 39,372 176,411 117,001 
Gross profit36,894 15,830 77,015 37,744 
Operating expenses:
General and administrative22,198 10,532 64,958 30,944 
Sales and marketing14,428 5,987 33,001 21,619 
Research and development30,173 5,205 51,911 16,520 
Depreciation and amortization5,943 730 8,483 1,818 
Restructuring charges4,070 1,770 9,136 10,798 
Total operating expenses76,812 24,224 167,489 81,699 
Operating loss(39,918)(8,394)(90,474)(43,955)
Other income (expense):
Interest expense(1,317)(1,308)(3,945)(3,899)
Interest income140 17 200 104 
Other, net(1,082)(209)(2,941)(864)
Total other expense(2,259)(1,500)(6,686)(4,659)
Loss before income taxes(42,177)(9,894)(97,160)(48,614)
Income tax expense (benefit) 440 211 (18,943)718 
Net loss$(42,617)$(10,105)$(78,217)$(49,332)
Net loss per share:
Basic$(0.19)$(0.08)$(0.46)$(0.39)
Diluted$(0.19)$(0.08)$(0.46)$(0.39)
Weighted-average shares used in per share calculation:
Basic220,194 126,791 169,166 125,710 
Diluted220,194 126,791 169,166 125,710 

(1) Cost of services excludes amortization related to intangible assets, including technology, customer relationships, and trade names, which are included in depreciation and amortization in total operating expenses.

The accompanying notes are an integral part of the unaudited consolidated financial statements.
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Edgio, Inc.
Unaudited Consolidated Statements of Comprehensive Loss
(In thousands)
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Net loss$(42,617)$(10,105)$(78,217)$(49,332)
Other comprehensive loss, net of tax:
Unrealized gain on investments46 3 13 32 
Foreign currency translation loss(2,095)(529)(5,130)(1,012)
Other comprehensive loss(2,049)(526)(5,117)(980)
Comprehensive loss$(44,666)$(10,631)$(83,334)$(50,312)
The accompanying notes are an integral part of the unaudited consolidated financial statements.
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Edgio, Inc.
Unaudited Consolidated Statements of Stockholders' Equity
(In thousands)
For the Three Months Ended September 30, 2022
Common Stock
SharesAmountCommon Stock Contingent ConsiderationAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal
Balance June 30, 2022219,706 $220 $16,900 $793,522 $(11,413)$(462,617)$336,612 
Net loss— — — — — (42,617)(42,617)
Change in unrealized gain on available-for-sale investments, net of taxes— — — — 46 — 46 
Foreign currency translation adjustment, net of taxes— — — — (2,095)— (2,095)
Exercise of common stock options320 1 — 589 — — 590 
Vesting of restricted stock units1,315 1 — (1)— —  
Restricted stock units surrendered in lieu of withholding taxes(446)— — (1,562)— — (1,562)
Share-based compensation688 — — 4,960 — — 4,960 
Issuance of common stock for business acquisition
— — — — — —  
Adjustment to common stock contingent consideration related to business acquisition
— — (600)— — — (600)
Balance September 30, 2022221,583 $222 $16,300 $797,508 $(13,462)$(505,234)$295,334 

For the Three Months Ended September 30, 2021
Common Stock
SharesAmountAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal
Balance June 30, 2021126,705 $127 $550,205 $(7,965)$(411,483)$130,884 
Net loss— — — — (10,105)(10,105)
Change in unrealized gain on available-for-sale investments, net of taxes— — — 3 — 3 
Foreign currency translation adjustment, net of taxes— — — (529)— (529)
Vesting of restricted stock units306 — — — — — 
Restricted stock units surrendered in lieu of withholding taxes(77)— (217)— — (217)
Share-based compensation— — 2,854 — — 2,854 
Issuance of common stock for business acquisition
6,878 7 18,426 — — 18,433 
Balance September 30, 2021133,812 $134 $571,268 $(8,491)$(421,588)$141,323 
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For the Nine Months Ended September 30, 2022
Common StockCommon Stock Contingent ConsiderationAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal
SharesAmount
Balance December 31, 2021134,337 $134 $ $576,807 $(8,345)$(427,017)$141,579 
Net loss— — — — — (78,217)(78,217)
Change in unrealized gain on available-for-sale investments, net of taxes— — — — 13 — 13 
Foreign currency translation adjustment, net of taxes— — — — (5,130)— (5,130)
Exercise of common stock options3,515 4 — 8,629 — — 8,633 
Vesting of restricted stock units2,837 3 — (3)— —  
Restricted stock units surrendered in lieu of withholding taxes(934)— — (3,371)— — (3,371)
Issuance of common stock under employee stock purchase plan280 — — 728 — — 728 
Share-based compensation688 — — 17,300 — — 17,300 
Capital contributions— — — 1,884 — — 1,884 
Issuance of common stock for business acquisition
76,968 77 — 186,119 — — 186,196 
Common stock contingent consideration related to business acquisition, net adjustment
— $— $16,300 $— $— $— $16,300 
Issuance of common stock for employee compensation arrangements
3,892 4 — 9,415 — — 9,419 
Balance September 30, 2022221,583 $222 $16,300 $797,508 $(13,462)$(505,234)$295,334 
For the Nine Months Ended September 30, 2021
Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal
SharesAmount
Balance December 31, 2020123,653 $124 $556,512 $(7,511)$(373,933)$175,192 
Cumulative effect of adoption of new accounting pronouncement— — (21,733)— 1,677 (20,056)
Net loss— — — — (49,332)(49,332)
Change in unrealized gain on available-for-sale investments, net of taxes— — — 32 — 32 
Foreign currency translation adjustment, net of taxes— — — (1,012)— (1,012)
Exercise of common stock options1,935 2 4,545 — — 4,547 
Vesting of restricted stock units1,401 1 (1)— —  
Restricted stock units surrendered in lieu of withholding taxes(410)— (1,314)— — (1,314)
Issuance of common stock under employee stock purchase plan355 — 913 — — 913 
Share-based compensation— — 13,920 — — 13,920 
Issuance of common stock for business acquisition
6,878 $7 $18,426 $— $— $18,433 
Balance September 30, 2021133,812 $134 $571,268 $(8,491)$(421,588)$141,323 
The accompanying notes are an integral part of the unaudited consolidated financial statements.
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Edgio, Inc.
Unaudited Consolidated Statements of Cash Flows
(In thousands)
 Nine Months Ended September 30,
 20222021
Operating activities
Net loss$(78,217)$(49,332)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization29,316 19,111 
Share-based compensation22,656 16,477 
Foreign currency remeasurement loss (gain)614 (66)
Deferred income taxes(19,117)(198)
Gain on sale of property and equipment(47)(219)
Accounts receivable charges671 1,047 
Amortization of premium on marketable securities526 1,597 
Noncash interest expense634 604 
Changes in operating assets and liabilities, net of amounts acquired in business combinations:
Accounts receivable(33,136)(13,037)
Prepaid expenses and other current assets(1,521)1,678 
Income taxes receivable(721)4 
Other assets(200)2,017 
Accounts payable and other current liabilities52,437 8,163 
Deferred revenue4,831 4,640 
Income taxes payable(424)210 
Other long-term liabilities(57)(26)
Net cash used in operating activities (21,755)(7,330)
Investing activities
Purchases of marketable securities(19,781)(44,838)
Sale and maturities of marketable securities45,191 84,000 
Purchases of property and equipment(20,516)(11,909)
Proceeds from sale of property and equipment47 219 
Cash acquired in (used for) acquisition of business
30,866 (30,968)
Net cash provided by (used in) investing activities 35,807 (3,496)
Financing activities
Payment of debt issuance costs (30)
Payments of employee tax withholdings related to restricted stock vesting(3,371)(1,315)
Proceeds from employee stock plans9,361 5,460 
Net cash provided by financing activities5,990 4,115 
Effect of exchange rate changes on cash and cash equivalents(2,654)(499)
Net increase (decrease) in cash and cash equivalents17,388 (7,210)
Cash and cash equivalents, beginning of period41,918 46,795 
Cash and cash equivalents, end of period$59,306 $39,585 
Supplemental disclosure of cash flow information
Cash paid during the period for interest$4,405 $4,460 
Cash paid during the period for income taxes, net of refunds$1,202 $714 
Common stock issued in connection with acquisition of business
$186,196 $18,433 
Common stock contingent consideration related to business combination
$16,300 $ 
Common stock issued for employee compensation arrangements
$9,419 $ 
Property and equipment remaining in accounts payable and other current liabilities$1,298 $1,166 

The accompanying notes are an integral part of the unaudited consolidated financial statements.
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Edgio, Inc.
Notes to Unaudited Consolidated Financial Statements
September 30, 2022
1. Nature of Business
Edgio, Inc. (“Edgio”), a provider of content delivery services, edge security, video services, AppOps and Jamstack application architecture, provides powerful tools to optimize and deliver digital experiences. Edgio offers one of the largest, best-optimized private networks coupled with a global team of industry experts to provide edge services that are fast, secure and reliable.
We were incorporated in Delaware in 2003, and have operated in the Phoenix metropolitan area since 2001 and elsewhere throughout the United States since 2003. We began international operations in 2004. On June 15, 2022, we changed our corporate name from Limelight Networks, Inc. to Edgio, Inc.
On June 15, 2022, Edgio completed the acquisition (the Edgecast Acquisition) of all of the outstanding shares of common stock of Edgecast Inc., a California corporation (“Edgecast”), and certain Edgecast-related businesses and assets from College Parent, L.P., a Delaware limited partnership (“College Parent”), for total purchase consideration of $202,446. The total purchase consideration included 76,920 shares of our common stock. Edgecast is a leading provider of edge security, content delivery and video services. Edgio accounted for the acquisition in accordance with ASC 805, Business Combinations, which requires the assets acquired and liabilities assumed to be recognized on the balance sheet at their fair values as of the acquisition date.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2021. All information is presented in thousands, except per share amounts and where specifically noted.
The consolidated financial statements include accounts of Edgio and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation.
Use of Estimates
The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2022, or for any future periods.
Recent Accounting Standards
Adopted Accounting Standards            
None
Recently Issued Accounting Standards
None
Significant Accounting Policies
There have been no changes in the significant accounting policies from those that were disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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3. Business Acquisitions
Edgecast Acquisition
On June 15, 2022, we closed the acquisition of 100% of the equity interests of Edgecast for an estimated total purchase consideration of $202,446.
The following table presents the allocation of the estimated purchase price consideration for Edgecast:
Consideration:
Common stock$195,565 
Common stock - contingent consideration16,300 
Less: Consideration allocated to employee compensation arrangements(9,419)
Total consideration allocated to Edgecast Acquisition
$202,446 
The purchase price was defined within the purchase agreement as $270,000 in Edgio common stock at a reference price of $4.1168 (determined using a 30-day volume-weighted average price (VWAP”) of Edgio’s common stock price prior to the execution of the purchase agreement), and adjustments for customary working capital adjustments. The fair value of our common stock consideration of 80,812 shares, is based on the opening price of our common stock of $2.42 per share on the acquisition closing date. Inclusive within the common stock consideration, and pursuant to the purchase agreement, Edgio issued 7,287 shares of common stock in exchange for cash from College Parent of $30,000. As the economic substance of this issuance was to provide additional cash to Edgecast for liabilities that existed prior to the business combination and the transaction occurred on June 15, 2022, Edgio concluded that this was part of the business combination, and therefore, should be considered as part of the consideration transferred in exchange for the acquisition of Edgecast. The estimated purchase consideration was also adjusted for 3,892 shares issued for employee compensation arrangements accounted for as separate transactions as further discussed below.
The purchase agreement contains an “earn-out” or contingent consideration provision in the event that the price of our common stock exceeds certain thresholds during the period ending on the third anniversary of the acquisition date of the transaction (the “Earnout Period”), Edgio will be required to issue approximately up to an additional 12,685 shares of our common stock to College Parent (the “common stock contingent consideration”). If during the Earnout Period, the closing share price of our common stock exceeds the following share prices for 10 trading days in any 30 consecutive trading day period the following number of shares of our common stock will be issued: (a) approximately 5,398 shares of our common stock if the closing share price of our common stock exceeds $6.1752 per share, (b) approximately 4,048 shares of our common stock if the closing share price of our common stock exceeds $8.2336 per share, and (c) approximately 3,239 shares of our common stock if the closing share price of our common stock exceeds $10.2920 per share. Edgio estimated that the fair value of the common stock contingent consideration, with the assistance of a third-party valuation specialist using a Monte Carlo simulation, and initially concluded it was $16,900 as of the acquisition date. During the three months ended September 30, 2022, Edgio updated the preliminary fair value of the contingent consideration from $16,900 to $16,300 as a measurement period adjustment, which impacted stockholders' equity and goodwill.
As a result of the Edgecast Acquisition, certain cash awards that existed for Edgecast’s employees require the transferred employee to provide services to Edgio in the post-combination period in order for the cash award to be earned. When the awards are earned, Edgio will pay the employees the amount earned and subsequently be reimbursed by College Parent or College Parent will directly pay the employee the amount earned. Edgio considered whether the employee awards are part of the Edgecast Acquisition, and part of purchase consideration, or separate transactions, and not part of purchase accounting. Under ASC 805, a transaction entered into by or on behalf of the acquirer or primarily for the benefit of the acquirer or the combined entity, rather than primarily for the benefit of the acquiree (or its former owners) before the combination, is likely to be a separate transaction. The employee awards represent compensation for post-combination services rendered to Edgio and the reimbursement right was initiated by Edgio for the future economic benefit of the combined entity. Accordingly, Edgio concluded the employee awards represent transactions separate from the Edgecast Acquisition. Edgio allocated $9,419 of the total consideration transferred to College Parent to the employee compensation arrangements based on the post-combination fair value of the employee awards. As service is required to be rendered for the award to be earned, Edgio will recognize expense as the employee performs service. The employee compensation arrangements related to post-combination services and the related reimbursement right resulted in the recognition of $6,573 in prepaid expenses and other current assets and $2,846 in other assets on June 15, 2022.
During the three and nine months ended September 30, 2022, Edgio recorded $3,865 and $4,863, in compensation expense to the unaudited consolidated statements of operations as a result of the employee compensation arrangements,
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respectively. Of the $3,865 of compensation expense, $674, $184, $292, and $2,715 was recorded to cost of services, general and administrative, sales and marketing, and research and development, respectively. Of the $4,863 of compensation expense, $880, $362, $333, and $3,288, was recorded to cost of services, general and administrative, sales and marketing, and research and development, respectively. The employee compensation arrangements are time-based vesting only and the unrecognized compensation expense was $4,556 as of September 30, 2022, of which $1,572 is expected to be recognized during the remainder of 2022, $2,559 in 2023, and the remainder thereafter.
The Edgecast Acquisition was accounted for under the acquisition method of accounting and the operating results of Edgecast have been included in our consolidated financial statements as of the acquisition date. Under the acquisition method of accounting, the aggregate amount of consideration paid by us was allocated to Edgecast’s net tangible assets and intangible assets based on their estimated fair values as of the acquisition date. The excess of the purchase price over the value of the net tangible assets and intangible assets was recorded to goodwill. The factors contributing to the recognition of goodwill were based upon our conclusion that there are strategic and synergistic benefits that are expected to be realized from the acquisition. Goodwill, which is non-deductible for tax purposes, represents expected synergies and the assembled workforce at the time of the acquisition.
The following table summarizes the preliminary allocation of the purchase consideration to the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired:
Cash (inclusive of $30,000 as described above)
$30,037 
Accounts receivable (a)47,765 
Prepaid expenses and other current assets (a)6,835 
Property and equipment (a)61,718 
Operating lease right of use assets1,365 
Goodwill (a)58,512 
Intangible assets
  Customer relationships11,000 
  Technology49,000 
Other assets393 
Total assets acquired266,625 
Accounts payable and accrued liabilities6,917 
Deferred revenue1,060 
Operating lease liability obligations3,071 
Other current liabilities (a)32,159 
Operating lease liability obligations, less current portion2,531 
Deferred income taxes18,433 
Deferred revenue, less current portion8 
Total liabilities64,179 
Total purchase consideration$202,446 
(a) During the third quarter of 2022, we identified measurement period adjustments related to preliminary fair value estimates. The total adjustments included a decrease to property and equipment of $6,348, a decrease to other current liabilities of $1,204, a decrease to accounts receivable of $788, and an increase to prepaid expenses and other current assets of $166. Measurement period adjustments are recognized in the reporting period in which the adjustments are determined and calculated as if the accounting had been completed at the acquisition date.
The fair values assigned to tangible assets acquired and liabilities assumed are based on management’s estimates and assumptions and certain amounts noted above are preliminary and subject to change during the remaining measurement period as we obtain additional information for the preliminary fair value estimates of the assets acquired and liabilities assumed. The primary preliminary estimates that are not yet finalized relate to certain assets and liabilities assumed, identifiable intangible assets, deferred income taxes and residual goodwill. Edgio expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.
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The fair value of acquired property and equipment was valued using the market approach and indirect cost approach and primarily consists of computer and networking equipment. The weighted-average depreciation period for the acquired property and equipment was 2.9 years at the acquisition date. The fair value of the acquired intangible assets was determined as follows, customer relationships, utilizing the excess earnings method, and technology, utilizing the relief from royalty method. The weighted-average amortization period of the acquired intangible assets was 8.5 years for customer relationships and 4.0 years for technology at the acquisition date. The deferred income tax liability was $18,433, primarily as a result of the fair value attributable to the identifiable intangible assets.
During the three months ended September 30, 2022, Edgecast represented $62,231 of our total revenue and $8,306 of loss included in our consolidated net loss. During the nine months ended September 30, 2022, Edgecast represented $75,005 of our total revenue and $8,293 of loss included in our consolidated net loss.
Transaction costs incurred by us in connection with the Edgecast Acquisition were $4,520 and $23,902 for the three and nine months ended September 30, 2022, respectively, and were recorded within general and administrative expenses in our unaudited consolidated statements of operations.
Unaudited Pro Forma Financial Information
The following unaudited pro forma combined financial information presents combined results of Edgio and Edgecast as if the acquisition of Edgecast has occurred on January 1, 2021:
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Revenue$121,156 $134,706 $399,958 $401,810 
Net loss$(33,635)$(33,541)$(93,096)$(137,415)
These unaudited pro forma combined financial statements include adjustments to reflect fair value adjustments related to property and equipment depreciation, customer relationships and technology amortization, compensation expense related to the employee compensation arrangements, exclusion of interest income related to loan receivables settled at the acquisition date, and the effects of the adjustments on income taxes and net loss. Additionally, the pro forma adjustments include adjustments to reflect non-recurring transaction costs of $4,520 and $23,902, incurred in the three and nine months ended September 30, 2022, respectively, and non-recurring restructuring charges related to the Edgecast Acquisition of $1,090 and $4,804 incurred in the three and nine months ended September 30, 2022, respectively, as of the beginning of the comparable prior reporting period.
The pro forma financial information is not intended to represent or be indicative of the actual results of operations of the combined business that would have been reported had the acquisition of Edgecast been completed at the beginning of the fiscal year 2021, nor is it representative of future operating results of Edgio.
Moov Acquisition
In September 2021, we closed the acquisition of 100% of the equity interests of Moov Corporation (“Moov”), a California corporation doing business as Layer0, a sub-scale SaaS based application acceleration and developer support platform, for total purchase consideration of $52,487. The total purchase consideration included $34,054 in cash, and 6,878 shares of our common stock valued at $18,433 at the acquisition date.
The following table presents the allocation of the purchase price for Moov:
Consideration:
Cash$34,054 
Common stock18,433 
Total consideration$52,487 
The fair value of our common stock consideration of 6,878 shares, is based on the closing price of our common stock of $2.68 per share on the acquisition closing date.

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The following table summarizes the final allocation of the purchase consideration to the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired:
Cash$3,130 
Accounts receivable2,514 
Prepaid expenses and other current assets (a)1,052 
Goodwill (a)35,669 
Intangible assets:
  Trade name91 
  Customer relationships7,090 
  Technology8,480 
Total assets acquired58,026 
Accounts payable and accrued liabilities2,432 
Deferred revenue3,107 
Total liabilities5,539 
Total purchase consideration$52,487