Company Quick10K Filing
On Deck Capital
Price4.29 EPS0
Shares79 P/E10
MCap337 P/FCF2
Net Debt-109 EBIT34
TEV228 TEV/EBIT7
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-07
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-02-28
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-07
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-06
10-Q 2018-06-30 Filed 2018-08-07
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-03-02
10-Q 2017-09-30 Filed 2017-11-07
10-Q 2017-06-30 Filed 2017-08-07
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-03-02
10-Q 2016-09-30 Filed 2016-11-07
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-03-03
10-Q 2015-09-30 Filed 2015-11-10
10-Q 2015-06-30 Filed 2015-08-11
10-Q 2015-03-31 Filed 2015-05-13
10-K 2014-12-31 Filed 2015-03-10
8-K 2020-09-02 Enter Agreement
8-K 2020-08-21 Enter Agreement
8-K 2020-08-14 Enter Agreement
8-K 2020-07-31 Enter Agreement
8-K 2020-07-28 Other Events, Exhibits
8-K 2020-07-28 Enter Agreement, Exhibits
8-K 2020-07-28 Earnings, Regulation FD, Exhibits
8-K 2020-07-17 Enter Agreement
8-K 2020-06-17
8-K 2020-06-03
8-K 2020-05-27
8-K 2020-05-18
8-K 2020-05-12
8-K 2020-05-07
8-K 2020-04-30
8-K 2020-04-27
8-K 2020-03-27
8-K 2020-03-23
8-K 2020-03-23
8-K 2020-03-03
8-K 2020-02-11
8-K 2019-11-15
8-K 2019-11-12
8-K 2019-11-08
8-K 2019-11-01
8-K 2019-10-24
8-K 2019-07-29
8-K 2019-07-19
8-K 2019-05-15
8-K 2019-05-02
8-K 2019-03-12
8-K 2019-02-19
8-K 2019-02-08
8-K 2018-12-17
8-K 2018-11-19
8-K 2018-11-14
8-K 2018-11-06
8-K 2018-10-04
8-K 2018-08-14
8-K 2018-08-08
8-K 2018-08-07
8-K 2018-05-16
8-K 2018-05-08
8-K 2018-04-13
8-K 2018-04-10
8-K 2018-04-04
8-K 2018-03-18
8-K 2018-03-08
8-K 2018-02-15
8-K 2018-02-13
8-K 2018-02-07

ONDK 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
EX-10.1 directorcompenexhibit101.htm
EX-10.2 suntrust-companyexhibit102.htm
EX-10.3 ondk-06302010xqexhibit103.htm
EX-10.4 ondk-06302010xqexhibit104s.htm
EX-10.5 ondk-06302010xqexhibit105.htm
EX-10.6 ondk-06302010xqexhibit106.htm
EX-10.7 ondk-06302010xqexhibit107.htm
EX-31.1 ondk-06302010xqexhibit311.htm
EX-31.2 ondk-06302010xqexhibit312.htm
EX-32.1 ondk-06302010xqexhibit321.htm
EX-32.2 ondk-06302010xqexhibit322.htm

On Deck Capital Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
1.31.00.80.50.30.02013201520172020
Assets, Equity
0.20.10.10.0-0.0-0.12013201520172020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22013201520172020
Ops, Inv, Fin

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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 June 30, 2020
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 001-36779
 
 
 
 
On Deck Capital, Inc.
(Exact name of registrant as specified in its charter)
 
 
 
 
Delaware
42-1709682
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1400 Broadway, 25th Floor
New York, New York 10018
(Address of principal executive offices)
(888269-4246
(Registrant’s telephone number, including area code)
 
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.005 per share
ONDK
New York Stock Exchange
 
 
 

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  ý    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  ý    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 filer
 
 
Accelerated 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 of the registrant’s common stock outstanding as of July 31, 2020 was 58,921,292.    


 



On Deck Capital, Inc.
Table of Contents
 
 
 
Page
 
 
Item 1.
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
 
 
Item 1.
Item 1A
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 
 
 
 
 
 
 
 
 
 
 
 
 




PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

ON DECK CAPITAL, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
 
June 30,
 
December 31,
 
2020
 
2019
Assets
 
 
 
Cash and cash equivalents
$
71,659

 
$
56,344

Restricted cash
77,930

 
40,524

Loans and finance receivables
901,126

 
1,265,312

Less: Allowance for credit losses
(173,607
)
 
(151,133
)
Loans and finance receivables, net
727,519

 
1,114,179

Property, equipment and software, net
24,629

 
20,332

Other assets
66,861

 
73,204

Total assets
$
968,598

 
$
1,304,583

Liabilities, mezzanine equity and stockholders' equity
 
 
 
Liabilities:
 
 
 
Accounts payable
$
7,665

 
$
6,470

Interest payable
2,043

 
2,334

Debt
680,371

 
914,995

Accrued expenses and other liabilities
52,563

 
70,110

Total liabilities
742,642

 
993,909

Commitments and contingencies (Note 11)

 

Mezzanine equity:
 
 
 
Redeemable noncontrolling interest
6,888

 
14,428

Stockholders’ equity:
 
 
 
Common stock—$0.005 par value, 1,000,000,000 shares authorized and 80,745,115 and 80,095,061 shares issued and 58,916,996 and 66,363,555 outstanding at June 30, 2020 and December 31, 2019, respectively.
408

 
405

Treasury stock—at cost
(82,503
)
 
(49,641
)
Additional paid-in capital
516,892

 
513,571

Accumulated deficit
(215,339
)
 
(169,002
)
Accumulated other comprehensive loss
(1,985
)
 
(1,333
)
Total On Deck Capital, Inc. stockholders' equity
217,473

 
294,000

Noncontrolling interest
1,595

 
2,246

Total stockholders' equity
219,068

 
296,246

Total liabilities, mezzanine equity and stockholders' equity
$
968,598

 
$
1,304,583

 
 
 
 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


3


ON DECK CAPITAL, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except share and per share data)
 
Three Months Ended June 30,
 
Six Months Ended, June 30,
 
2020
 
2019
 
2020
 
2019
Revenue:
 
 
 
 
 
 
 
Interest and finance income
$
78,308

 
$
105,641

 
$
185,243

 
$
211,440

Interest expense
10,291

 
11,381

 
21,860

 
22,713

Net interest income
68,017

 
94,260

 
163,383

 
188,727

Provision for credit losses
23,720

 
42,951


131,627

 
86,242

Net interest income (loss), after credit provision
44,297

 
51,309

 
31,756

 
102,485

Other revenue
2,217

 
4,605

 
5,837

 
8,781

Operating expense:
 
 
 
 
 
 
 
Sales and marketing
5,473

 
13,307

 
17,137

 
25,267

Technology and analytics
15,088

 
16,681

 
31,572

 
33,487

Processing and servicing
5,452

 
5,609

 
12,141

 
11,098

General and administrative
13,664

 
16,353

 
29,944

 
30,382

Total operating expense
39,677

 
51,950


90,794

 
100,234

Goodwill Impairment
10,960

 

 
10,960

 

Income (loss) from operations, before provision for income taxes
(4,123
)

3,964


(64,161
)

11,032

Provision for (Benefit from) income taxes

 
1,796

 

 
3,536

Net income (loss)
(4,123
)
 
2,168


(64,161
)
 
7,496

Less: Net income (loss) attributable to noncontrolling interest
(6,293
)
 
(2,127
)
 
(7,356
)
 
(2,465
)
Net income (loss) attributable to On Deck Capital, Inc. common stockholders
$
2,170


$
4,295


$
(56,805
)
 
$
9,961

Net income (loss) per share attributable to On Deck Capital, Inc. common stockholders:
 
 
 
 
 
 
 
Basic
$
0.04

 
$
0.06

 
$
(0.94
)
 
$
0.13

Diluted
$
0.04

 
$
0.05

 
$
(0.94
)
 
$
0.13

Weighted-average common shares outstanding:
 
 
 
 
 
 
 
Basic
58,741,590

 
76,137,751

 
60,625,795

 
75,840,604

Diluted
59,946,591

 
78,901,601

 
60,625,795

 
79,013,757

Comprehensive income (loss):
 
 
 
 
 
 
 
Net income (loss)
$
(4,123
)
 
$
2,168

 
$
(64,161
)
 
$
7,496

Other comprehensive income (loss):


 


 
 
 
 
Foreign currency translation adjustment
1,220

 
405

 
(1,993
)
 
771

Unrealized gain (loss) on derivative instrument
234

 
(124
)
 
504

 
(866
)
Comprehensive income (loss)
(2,669
)
 
2,449

 
(65,650
)
 
7,401

Less: Comprehensive income (loss) attributable to noncontrolling interests
516

 
(58
)
 
(837
)
 
(32
)
Less: Net income (loss) attributable to noncontrolling interest
(6,293
)
 
(2,127
)
 
(7,356
)
 
(2,465
)
Comprehensive income (loss) attributable to On Deck Capital, Inc. common stockholders
$
3,108

 
$
4,634

 
$
(57,457
)
 
$
9,898

 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4


ON DECK CAPITAL, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Changes in Equity and Redeemable Noncontrolling Interest (in thousands, except share data)
 
On Deck Capital, Inc.'s stockholders' equity
 
 
 
 
 
 
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Deficit
 
Treasury
Stock
 
Accumulated Other Comprehensive Income (Loss)
 
Total Stockholders' Equity
 
Noncontrolling interest
 
Total
Equity
 
 
Redeemable Noncontrolling Interest
 
Shares
 
Amount
 
 
 
Balance—December 31, 2018
75,375,341

 
$
396

 
$
502,003

 
$
(196,959
)
 
$
(5,656
)
 
$
(1,832
)
 
$
297,952

 
$
4,533

 
$
302,485

 
 
$

Stock-based compensation

 

 
2,743

 

 

 

 
2,743

 

 
2,743

 
 

Issuance of common stock through vesting of restricted stock units and option exercises
264,364

 
2

 
45

 

 

 

 
47

 

 
47

 
 

Employee stock purchase plan
267,688

 
1

 
1,659

 

 

 

 
1,660

 

 
1,660

 
 

Tax withholding related to vesting of restricted stock units

 

 
(291
)
 

 

 

 
(291
)
 

 
(291
)
 
 

Currency translation adjustment

 

 

 

 

 
340

 
340

 
26

 
366

 
 

Cash flow hedge and other

 

 

 

 

 
(742
)
 
(742
)
 

 
(742
)
 
 

Net Income (loss)

 

 

 
5,666

 

 

 
5,666

 
(338
)
 
5,328

 
 

Balance—March 31, 2019
75,907,393


$
399


$
506,159


$
(191,293
)

$
(5,656
)

$
(2,234
)

$
307,375


$
4,221


$
311,596



$

Stock-based compensation

 

 
2,965

 

 

 

 
2,965

 

 
2,965

 
 

Issuance of common stock through vesting of restricted stock units and option exercises
393,994

 
2

 
26

 

 

 

 
28

 

 
28

 
 

Employee stock purchase plan

 

 
335

 

 

 

 
335

 

 
335

 
 

Tax withholding related to vesting of restricted stock units

 

 
(844
)
 

 

 

 
(844
)
 

 
(844
)
 
 

Fair value of redeemable noncontrolling interest resulting from business combination

 

 

 

 

 

 

 

 

 
 
16,444

Currency translation adjustment

 

 

 

 

 
463

 
463

 
(49
)
 
414

 
 
(9
)
Cash flow hedge and Other

 

 
(11
)
 
1

 

 
(123
)
 
(133
)
 

 
(133
)
 
 

Net Income (loss)

 

 

 
4,295

 

 

 
4,295

 
(814
)
 
3,481

 
 
(1,313
)
Balance—June 30, 2019
76,301,387


$
401


$
508,630


$
(186,997
)

$
(5,656
)

$
(1,894
)

$
314,484


$
3,358


$
317,842


 
$
15,122

        

5


 
On Deck Capital, Inc.'s stockholders' equity
 
 
 
 
 
 
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Deficit
 
Treasury
Stock
 
Accumulated Other Comprehensive Income (Loss)
 
Total Stockholders' Equity
 
Noncontrolling interest
 
Total
Equity
 
 
Redeemable Noncontrolling Interest
 
Shares
 
Amount
 
 
 
Balance—December 31, 2019
66,363,555

 
$
405

 
$
513,571

 
$
(169,002
)
 
$
(49,641
)
 
$
(1,333
)
 
$
294,000

 
$
2,246

 
$
296,246

 
 
$
14,428

Transition to ASU 2016-13 Adjustment

 

 

 
10,468

 

 

 
10,468

 

 
10,468

 
 

Stock-based compensation

 

 
1,738

 

 

 

 
1,738

 

 
1,738

 
 

Issuance of common stock through vesting of restricted stock units and option exercises
152,362

 
1

 
15

 

 

 

 
16

 

 
16

 
 

Employee stock purchase plan

 

 
(310
)
 

 

 

 
(310
)
 

 
(310
)
 
 

Repurchases of Common Stock
(8,096,613
)
 

 

 

 
(32,862
)
 

 
(32,862
)
 

 
(32,862
)
 
 

Tax withholding related to vesting of restricted stock units

 

 
(229
)
 

 

 

 
(229
)
 

 
(229
)
 
 

Currency translation adjustment

 

 

 

 

 
(1,860
)
 
(1,860
)
 
(253
)
 
(2,113
)
 
 
(1,100
)
Cash flow hedge and other

 

 

 

 

 
270

 
270

 
2

 
272

 
 

Net Income (loss)

 

 

 
(58,975
)
 

 

 
(58,975
)
 
(847
)
 
(59,822
)
 
 
(216
)
Balance—March 31, 2020
58,419,304

 
$
406

 
$
514,785

 
$
(217,509
)
 
$
(82,503
)
 
$
(2,923
)
 
$
212,256

 
$
1,148

 
$
213,404

 
 
$
13,112

Stock-based compensation

 

 
2,305

 

 

 

 
2,305

 

 
2,305

 
 

Issuance of common stock through vesting of restricted stock units and option exercises
497,692

 
2

 
(1
)
 

 

 

 
1

 

 
1

 
 

Tax withholding related to vesting of restricted stock units

 

 
(198
)
 

 

 

 
(198
)
 

 
(198
)
 
 

Currency translation adjustment

 

 

 

 

 
704

 
704

 
128

 
832

 
 
388

Cash flow hedge and other

 

 
1

 

 

 
234

 
235

 

 
235

 
 

Net Income (loss)

 

 

 
2,170

 

 

 
2,170

 
319

 
2,489

 
 
(6,612
)
Balance—June 30, 2020
58,916,996

 
$
408

 
$
516,892

 
$
(215,339
)
 
$
(82,503
)
 
$
(1,985
)
 
$
217,473

 
$
1,595

 
$
219,068

 
 
$
6,888

            
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6


ON DECK CAPITAL, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
 
Six Months Ended, June 30,
 
2020
 
2019
Cash flows from operating activities
 
 
 
Net income (loss)
$
(64,161
)
 
$
7,496

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Provision for credit losses
131,627

 
86,242

Depreciation and amortization
3,271

 
3,574

Amortization of debt issuance costs
2,572

 
1,573

Stock-based compensation
3,663

 
6,331

Amortization of net deferred origination costs
27,579

 
35,277

Changes in servicing rights, at fair value

 
69

Unfunded loan commitment reserve

 
452

Loss on disposal of fixed assets

 
1,537

Amortization of intangibles
242

 
189

Goodwill impairment
10,960

 

Changes in operating assets and liabilities:
 
 
 
Other assets
(5,051
)
 
(9,595
)
Accounts payable
1,267

 
1,499

Interest payable
(287
)
 
302

Accrued expenses and other liabilities
(10,693
)
 
1,613

Net cash provided by operating activities
100,989


136,559

Cash flows from investing activities
 
 
 
Purchases of property, equipment and software
(2,886
)
 
(1,360
)
Capitalized internal-use software
(4,673
)
 
(4,220
)
Originations of loans and finance receivables, excluding rollovers into new originations
(567,238
)
 
(1,029,348
)
Payments of net deferred origination costs
(19,230
)
 
(33,505
)
Principal repayments of loans and finance receivables
813,128

 
946,025

Acquisition of shares in business combination

 
(3,004
)
Net cash provided by (used in) investing activities
219,101


(125,412
)
Cash flows from financing activities
 
 
 
Tax withholding related to vesting of restricted stock units
(427
)
 
(1,135
)
Repurchases of common stock
(32,862
)
 

Proceeds from exercise of stock options
17

 
71

Issuance of common stock under employee stock purchase plan

 
1,281

Proceeds from the issuance of debt
274,429

 
355,840

Payments of debt issuance costs
(661
)
 
(2,812
)
Repayments of debt principal
(508,363
)
 
(359,392
)
Net cash (used in) provided by financing activities
(267,867
)

(6,147
)
Effect of exchange rate changes on cash and cash equivalents
498

 
(558
)
 
 
 
 
Net increase (decrease) in cash, cash equivalents and restricted cash
52,721

 
4,442

Cash and cash equivalents at beginning of period
96,868

 
97,638

Cash and cash equivalents at end of period
$
149,589


$
102,080


7


 
Six Months Ended, June 30,
 
2020
 
2019
 
 
 
 
Reconciliation to amounts on consolidated balance sheets
 
 
 
Cash and cash equivalents
$
71,659

 
$
58,744

Restricted cash
77,930

 
43,336

Total cash, cash equivalents and restricted cash
$
149,589

 
$
102,080

 
 
 
 
Supplemental disclosure of other cash flow information
 
 
 
Cash paid for interest
$
19,077

 
$
20,038

Cash paid for income taxes
$
67

 
$
8,496

Supplemental disclosures of non-cash investing and financing activities
 
 
 
Stock-based compensation included in capitalized internal-use software
$
70

 
$
109

Unpaid principal balance of term loans rolled into new originations
$
88,667

 
$
198,319


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

8


ON DECK CAPITAL, INC. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements
1. Organization and Summary of Significant Accounting Policies
On Deck Capital, Inc.’s principal activity is providing financing to small businesses located throughout the United States as well as Canada and Australia, through term loans, lines of credit, equipment finance loans and additionally in Canada through a variable pay product. We use technology and analytics to aggregate data about a business and then quickly and efficiently analyze the creditworthiness of the business using our proprietary credit-scoring model. We originate most of the loans in our portfolio and also purchase loans from an issuing bank partner. We subsequently transfer most of our loan volume into one of our wholly-owned subsidiaries for financing purposes.
In October 2018, we announced the launch of ODX, a wholly-owned subsidiary that helps banks digitize their small business lending process. ODX offers a combination of software, analytic insights, and professional services that allow banks to bring their small business lending process online.
In April 2019, we combined our Canadian operations with Evolocity Financial Group, or Evolocity, to create a new holding company in which we own a 58.5% majority interest. We have accounted for this transaction as a business combination and have consolidated the financial position and results of operations of the holding company. The noncontrolling interest has been classified as mezzanine equity because it was deemed to be a redeemable noncontrolling interest. See Note 9 for further discussion.
Basis of Presentation and Principles of Consolidation
We prepare our consolidated financial statements and footnotes in accordance with accounting principles generally accepted in the United States of America, or GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. All intercompany transactions and accounts have been eliminated in consolidation. When used in these notes to consolidated financial statements, the terms "we," "us," "our" or similar terms refer to On Deck Capital, Inc. and its consolidated subsidiaries.
At December 31, 2019, we changed the presentation of the revenue portion of our Consolidated Statements of Operations and Comprehensive Income to present new line items for "Net interest income" and "Net interest revenue, after credit provision" and "Total non-interest income." We no longer present the line items, "Gross revenue," "Total cost of revenue" and "Net revenue." "Gains on sales of loans" and "Other revenue" for the periods ended June 30, 2019, which were previously reported as components of "Gross revenue", have been recast to be presented as components of "Total non-interest income". "Interest expense" and "Provision for credit losses" for the periods ended June 30, 2019, which were previously reported as components of "Total cost of revenue", have been recast to be presented as components of "Net interest income" and "Net interest revenue, after credit provision", respectively. The change in presentation had no effect on our "Income (loss) from operations, before provision for income taxes" or "Net income (loss)". The new presentation solely repositions our existing financial statement line items and does not create any new financial statement line items except for new subtotals. The change was made to better align with industry standards and to reflect key metrics which we use to measure our business.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Significant estimates include allowance for credit losses, stock-based compensation expense, capitalized software development costs, the useful lives of long-lived assets, goodwill, our effective income tax rate and valuation allowance for deferred tax assets. We base our estimates on historical experience, current events and other factors we believe to be reasonable under the circumstances. These estimates and assumptions are inherently subjective in nature; actual results may differ from these estimates and assumptions.
Recently Adopted Accounting Standards
In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. ASU 2016-13 which changed the impairment model and how entities measure credit losses for most financial assets. The standard requires entities to use the new expected credit loss impairment model which replaced the incurred loss model used previously. We adopted the new standard effective January 1, 2020. Upon adoption, the $7 million liability for unfunded line of credit commitments previously included in Other liabilities was released and other transition related adjustments to the allowance for credit losses were $3 million. On January 1, 2020, the transition adjustments of a total of $10 million were recorded against retained earnings.
In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, which eliminated the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by

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which the carrying amount exceeds the reporting unit’s fair value. We adopted the new standard prospectively on January 1, 2020 and it did not have a material impact on our unaudited consolidated financial statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which modifies disclosure requirements for fair value measurements under ASC 820, Fair Value Measurement. We adopted the new standard effective January 1, 2020 and the adoption did not have a material impact on our unaudited consolidated financial statements.
In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the noncancellable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. We adopted the new standard effective January 1, 2020 utilizing the prospective transition approach and the adoption did not have a material impact on our unaudited consolidated financial statements.
COVID-19 Pandemic
On March 11, 2020, the World Health Organization declared the current COVID-19 outbreak to be a global pandemic, which led to governmental requirements or recommendations for “non-essential” businesses to temporarily close or severely limit their operations. Our small business customers have been directly or indirectly affected by the COVID-19 pandemic due to the closures and reduced customer demand. During the second quarter of 2020, the COVID-19 pandemic continued to negatively impact our small business customers. We have included the COVID-19 impacts as part of our calculation of the allowance for credit losses for the quarters ended March 31, 2020 and June 30, 2020. See Note 4.
The pandemic is having unprecedented negative economic consequences. We have changed our near-term priorities to actively monitor and respond to the impacts that COVID-19 is having on our business and customers. See Part I, Item 2- "Management's Discussion and Analysis of Financial Condition and Results of Operations" for more detail. It is currently unclear what the full impact of COVID-19, will be on our business, cash flows, available liquidity, financial condition, and results of operations, due to the many material uncertainties that continue to exist. 
Definitive Agreement with Enova International
On July 28, 2020, we entered into a definitive agreement with Enova International, or Enova, under which Enova will acquire all of our outstanding shares in a cash and stock transaction. Under the terms of the agreement, our shareholders will receive $0.12 cents per share in cash and 0.092 shares of Enova common stock for each share of OnDeck common stock held. The transaction has been unanimously approved by the boards of directors of both companies and is subject to our shareholder approval and Hart-Scott-Rodino Act approval, along with customary closing conditions. The transaction is expected to close this year. Enova is a leading provider of online financial services to non-prime consumers and small businesses, providing access to credit powered by its advanced analytics, innovative technology, and world-class online platform and services.
Revision of Prior Period Financial Statements
During the second quarter of 2019, we identified an immaterial error in our historical financial statements relating to the accrual of commissions on a portion of our renewal loans. The aggregate amount of the under-accrual was $2.4 million, approximately 90% of which relates to 2015 and subsequent periods, and represents less than 1%, of our total stockholders’ equity at March 31, 2019. The amount of the error in each of the impacted annual and interim periods was less than 1% of total commissions paid for such period.
In accordance with the SEC’s SAB No. 99, “Materiality,” and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” we evaluated the error and concluded that the impact was not material to our financial statements for any prior annual or interim period. There was no impact to the financial statements or earnings per share for any period presented


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2. Net Income (Loss) Per Common Share
Basic and diluted net income (loss) per common share is calculated as follows (in thousands, except share and per share data):
 
Three Months Ended June 30,
Six Months Ended, June 30,
 
2020
 
2019
 
2020
 
2019
Numerator:
 
 
 
 
 
 
 
Net Income (loss)
$
(4,123
)
 
$
2,168

 
$
(64,161
)
 
$
7,496

Less: Net income (loss) attributable to noncontrolling interest
(6,293
)
 
(2,127
)
 
(7,356
)
 
(2,465
)
Net income (loss) attributable to On Deck Capital, Inc. common stockholders
$
2,170

 
$
4,295

 
$