Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2018	Mar. 13, 2019	Jun. 30, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	VERRA MOBILITY CORP
Entity Central Index Key	0001682745
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 357,382,596
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	VRRM
Entity Common Stock, Shares Outstanding		156,056,642

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 65,048,194	$ 8,724,945
Restricted cash	2,033,186	1,784,665
Accounts receivable, net	87,510,691	60,180,536
Unbilled receivables	12,955,507	4,802,074
Prepaid expenses and other current assets	17,600,270	15,788,912
Total current assets	185,147,848	91,281,132
Installation and service parts, net	9,282,064	9,066,913
Property and equipment, net	69,242,811	65,370,696
Intangible assets, net	514,541,531	203,749,221
Goodwill	564,723,498	294,414,522
Other non-current assets	1,845,443	982,731
Total assets	1,344,783,195	664,865,215
Current liabilities:
Accounts payable	45,188,357	20,158,977
Accrued liabilities	14,443,967	10,086,622
Current portion of long-term debt	9,103,518	3,250,000
Total current liabilities	68,735,842	33,495,599
Long-term debt, net of current portion and deferred financing costs	860,249,164	425,439,034
Other long-term liabilities	3,368,710	2,689,145
Payable related to tax receivable agreement	69,996,334
Asset retirement obligation	6,749,822	6,373,125
Deferred tax liabilities	33,627,191	49,603,691
Total Liabilities	1,042,727,063	517,600,594
Commitments and Contingencies (note 16)
Stockholders' equity
Preferred stock, $.0001 par value, 1,000,000 shares authorized with no shares issued and outstanding as of December 31, 2018 and 2017
Common stock, $.0001 par value, 260,000,000 shares authorized with 156,056,642 and 60,483,804 shares issued and outstanding as of December 31, 2018 and 2017, respectively	15,606	6,048
Common stock contingent consideration	73,150,000
Additional paid-in capital	348,017,132	129,020,351
Retained earnings (accumulated deficit)	(113,306,294)	18,238,222
Accumulated other comprehensive loss	(5,820,312)
Total stockholders' equity	302,056,132	147,264,621
Total liabilities and stockholders' equity	$ 1,344,783,195	$ 664,865,215

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	260,000,000	260,000,000
Common stock, shares issued	156,056,642	60,483,804
Common stock, shares outstanding	156,056,642	60,483,804

CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	5 Months Ended	7 Months Ended	12 Months Ended
	May 31, 2017	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2016
Total revenue		$ 138,238,687	$ 370,145,720
Operating expenses		50,471,055	108,883,622
Selling , general and administrative expenses		44,882,140	136,068,633
Depreciation, amortization, impairment and (gain) loss on disposal of assets, net		33,112,553	103,352,668
Total costs and expenses		131,991,829	357,539,551
Income from operations		6,246,858	12,606,169
Interest expense		20,857,920	69,550,214
Loss on extinguishment of debt			26,486,179
Other income, net		(2,172,261)	(8,794,596)
Total other expense (income)		18,685,659	87,241,797
(Loss) income before income tax (benefit) provision		(12,438,801)	(74,635,628)
Income tax (benefit) provision		(30,677,023)	(16,241,112)
Net (loss) income		18,238,222	(58,394,516)
Other comprehensive income (loss):
Foreign currency translation adjustment			(5,820,312)
Total comprehensive (loss) income		$ 18,238,222	$ (64,214,828)
Earnings (loss) per share:
Basic weighted average shares outstanding		60,483,804	87,320,072
Basic earnings (loss) per share		$ 0.30	$ (0.67)
Diluted weighted average shares outstanding		60,483,804	87,320,072
Diluted earnings (loss) per share		$ 0.30	$ (0.67)
Predecessor
Total revenue	$ 93,871,130			$ 230,749,586
Operating expenses	35,967,664			83,762,399
Selling , general and administrative expenses	40,884,179			53,033,871
Depreciation, amortization, impairment and (gain) loss on disposal of assets, net	12,613,143			33,916,936
Total costs and expenses	91,797,935			182,856,749
Income from operations	2,073,195			47,892,837
Interest expense	875,102			2,706,499
Other income, net	(1,294,299)			(2,470,776)
Total other expense (income)	(419,197)			235,723
(Loss) income before income tax (benefit) provision	2,492,392			47,657,114
Income tax (benefit) provision	1,252,793			18,661,030
Net (loss) income	1,239,599			28,996,084
Other comprehensive income (loss):
Change in interest rate swap valuation, net of taxes				50,255
Total comprehensive (loss) income	$ 1,239,599			$ 29,046,339
Earnings (loss) per share:
Basic earnings (loss) per share	$ (1)			$ (1)
Diluted earnings (loss) per share	$ (1)			$ (1)
Service Revenue
Total revenue		$ 135,655,277	$ 365,075,935
Cost of revenue		1,936,063	5,787,699
Service Revenue \| Predecessor
Total revenue	$ 92,530,939			$ 212,514,712
Cost of revenue	1,369,445			2,638,070
Product Sales
Total revenue		2,583,410	5,069,785
Cost of revenue		$ 1,590,018	$ 3,446,929
Product Sales \| Predecessor
Total revenue	1,340,191			18,234,874
Cost of revenue	$ 963,504			$ 9,505,473

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($)	Total	Common Stock	Treasury Stock	Common Stock Contingent Consideration	Additional Paid-in Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Loss	Series A Preferred Shares	Series B Preferred Shares
Beginning Balance (Predecessor) at Dec. 31, 2015	$ 93,567,177	$ 1,006,260	$ (24,500,000)		$ 1,641,899	$ 12,129,113	$ (50,255)	$ 57,471,453	$ 45,868,707
Beginning Balance (in shares) (Predecessor) at Dec. 31, 2015		87,626,027	13,000,000					46,400,000	23,000,000
Net income \| Predecessor	28,996,084					28,996,084
Dividend paid in cash \| Predecessor	(47,107,808)					(47,107,808)
Other comprehensive income \| Predecessor	50,255						50,255
Ending Balance (Predecessor) at Dec. 31, 2016	75,505,708	$ 1,006,260	$ (24,500,000)		1,641,899	(5,982,611)		$ 57,471,453	$ 45,868,707
Beginning Balance (in shares) (Predecessor) at Dec. 31, 2016		87,626,027	13,000,000					46,400,000	23,000,000
Net income \| Predecessor	1,239,599					1,239,599
Ending Balance (Predecessor) at May. 31, 2017	76,745,307	$ 1,006,260	$ (24,500,000)		1,641,899	(4,743,012)		$ 57,471,453	$ 45,868,707
Beginning Balance (in shares) (Predecessor) at May. 31, 2017		87,626,027	13,000,000					46,400,000	23,000,000
Net income	18,238,222					18,238,222
Ending Balance at Dec. 31, 2017	147,264,621	$ 6,048			129,020,351	18,238,222
Beginning Balance (in shares) at Dec. 31, 2017		60,483,804
Equity contribution	129,026,399	$ 6,048			129,020,351
Equity contribution (in shares)		60,483,804
Net income	(58,394,516)					(58,394,516)
Other comprehensive income	(5,820,312)						(5,820,312)
Ending Balance at Dec. 31, 2018	302,056,132	$ 15,606		$ 73,150,000	348,017,132	(113,306,294)	$ (5,820,312)
Beginning Balance (in shares) at Dec. 31, 2018		156,056,642
Stock issued in exchange for business acquisitions	117,555,632	$ 1,242			117,554,390
Stock issued in exchange for business acquisitions (in shares)		12,419,846
Equity infusion from Gores Holdings	403,293,629	$ 3,968			403,289,661
Equity infusion from Gores Holdings (in shares)		39,674,731
Private placement	400,000,000	$ 4,348			399,995,652
Private placement (in shares)		43,478,261
Gores Holdings rollover equity	(34,481)				(34,481)
Capital contribution from Greenlight	169,258,843				169,258,843
Return of capital to Greenlight Stockholders	(779,270,105)				(779,270,105)
Common stock contingent consideration				$ 73,150,000		$ (73,150,000)
Tax receivable payable to Greenlight Stockholders	(69,996,334)				(69,996,334)
Underwriting Fees	(15,345,000)				(15,345,000)
Transaction costs incurred by Gores	(8,727,719)				(8,727,719)
Stock-based compensation	$ 2,271,874				$ 2,271,874

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	5 Months Ended	7 Months Ended	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	May 31, 2017	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income		$ 18,238,222
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		33,151,063
Deferred financing cost amortization		1,981,476
Accretion expense		153,542
Write-downs of installation and service parts and (gain) loss on disposal of assets		(38,510)
Installation and service parts expense		565,198
Bad debt expense		3,441,004
Deferred income taxes		(31,083,621)
Changes in operating assets and liabilities:
Accounts receivable, net		(17,152,616)
Unbilled receivables		(362,336)
Prepaid expense and other current assets		4,202,237
Other assets		139,856
Accounts payable and accrued liabilities		(4,846,446)
Other Liabilities		(77,736)
Net cash provided by operating activities		8,311,333
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of business, net of cash and restricted cash acquired		(537,853,861)
Purchases of installation and service parts and property and equipment		(15,873,607)
Cash proceeds from the sale of assets and insurance recoveries		191,788
Net cash provided by (used in) investing activities		(553,535,680)
CASH FLOWS FROM FINANCING ACTIVITIES:
Successor borrowings on revolver		18,530,956
Successor repayment on revolver		(18,530,956)
Successor borrowings of long-term debt		444,250,000
Successor repayment of long-term debt		(1,625,000)
Successor payment of debt issuance costs		(15,917,442)
Proceeds from issuance of common stock		129,026,399
Net cash provided by (used in) by financing activities		555,733,957
Net increase in cash, cash equivalents and restricted cash		10,509,610
Cash, cash equivalents and restricted cash - end of period		10,509,610
Supplemental cash flow information:
Interest paid		18,628,206
Income taxes paid (refunded), net		8,551,224
Supplemental non-cash investing and financing activities:
Non-cash additions (reductions) to ARO, property and equipment, and other		(323,726)
Purchases of installation and service parts and property and equipment in accounts payable and accrued liabilities at year end		3,094,814
Predecessor
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ 1,239,599		$ 28,996,084
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	12,574,006		33,814,562
Deferred financing cost amortization	143,241		475,596
Accretion expense	106,404		185,021
Write-downs of installation and service parts and (gain) loss on disposal of assets	39,137		102,374
Installation and service parts expense	177,124		1,382,686
Bad debt expense	2,181,957		7,881,872
Deferred income taxes	(3,326,978)		(3,204,635)
Stock-based compensation			(618,911)
Changes in operating assets and liabilities:
Accounts receivable, net	6,107,664		(17,409,068)
Unbilled receivables	1,945,493		(2,655,961)
Prepaid expense and other current assets	(1,581,750)		(2,584,650)
Other assets	322,260		294,181
Accounts payable and accrued liabilities	22,413,747		(703,321)
Other Liabilities	(508,181)		(2,114,649)
Net cash provided by operating activities	41,833,723		43,841,181
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of business, net of cash and restricted cash acquired			(21,232,989)
Purchases of installation and service parts and property and equipment	(8,952,667)		(14,825,371)
Cash proceeds from the sale of assets and insurance recoveries	166,603		1,007,478
Net cash provided by (used in) investing activities	(8,786,064)		(35,050,882)
CASH FLOWS FROM FINANCING ACTIVITIES:
Predecessor borrowings on note payable	40,752,179		187,920,609
Predecessor repayments on note payable	(68,213,359)		(147,521,410)
Predecessor payments of debt issue costs	(30,000)		(332,500)
Payment of cash dividend			(47,107,808)
Net cash provided by (used in) by financing activities	(27,491,180)		(7,041,109)
Net increase in cash, cash equivalents and restricted cash	5,556,479		1,749,190
Cash, cash equivalents and restricted cash - beginning of period	4,345,567	$ 9,902,046	2,596,377
Cash, cash equivalents and restricted cash - end of period	9,902,046		4,345,567
Supplemental cash flow information:
Interest paid	836,236		2,111,973
Income taxes paid (refunded), net	(211,030)		27,014,347
Supplemental non-cash investing and financing activities:
Non-cash additions (reductions) to ARO, property and equipment, and other	210,864		1,864,265
Purchases of installation and service parts and property and equipment in accounts payable and accrued liabilities at year end	$ 2,793,828		3,687,363
Interest rate swap change in value, net of tax			$ 50,255

Basis of Presentation and Description of Business

12 Months Ended

Dec. 31, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation and Description of Business

1.	Basis of Presentation and Description of Business

Verra Mobility Corporation, formerly known as Gores Holdings II, Inc. (“Gores”) was originally incorporated in Delaware on August 15, 2016 as a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more target businesses. On January 19, 2017, we consummated our initial public offering (the “IPO”), following which our shares began trading on the Nasdaq Capital Market (“Nasdaq”).

On June 21, 2018, Gores, AM Merger Sub I, Inc., a direct, wholly-owned subsidiary of Gores (“First Merger Sub”), AM Merger Sub II, LLC, a direct, wholly-owned subsidiary of Gores (“Second Merger Sub”), Greenlight Holding II Corporation (“Greenlight”), and PE Greenlight Holdings, LLC entered into an Agreement and Plan of Merger as amended on August 23, 2018 by that certain Amendment No. 1 to Agreement and Plan of Merger (as amended, the “Merger Agreement”), which provides for, among other things, (i) the merger of First Merger Sub with and into Greenlight, with Greenlight continuing as the surviving corporation (the “First Merger”) and (ii) immediately following the First Merger and as part of the same overall transaction as the First Merger, the merger of Greenlight with and into Second Merger Sub, with Second Merger Sub continuing as the surviving entity (the “Second Merger” and, together with the First Merger, the “Merger” and, together with the other transactions contemplated by the Merger Agreement, the “Business Combination”).

In connection with the closing of the Business Combination on October 17, 2018 (the “Closing Date”), Gores changed its name from Gores Holdings II, Inc. to Verra Mobility Corporation, changed its trading symbols on Nasdaq from “GSHT,” and “GSHTW,” to “VRRM” and “VRRMW,” and Second Merger Sub changed its name from AM Merger Sub II, LLC to Verra Mobility Holdings, LLC. As a result of the Business Combination, Verra Mobility Corporation became the owner, directly or indirectly, of all of the equity interests of Verra Mobility Holdings, LLC and its subsidiaries. The Business Combination is treated as a reverse acquisition and recapitalization in which Greenlight is treated as the accounting acquirer (and legal acquiree) and Gores is treated as the accounting acquiree (and legal acquirer). Accordingly, as of the Closing Date, Greenlight’s historical results of operations replaced Gores historical results of operations for periods prior to the Business Combination, and the results of operations of both companies are included in the accompanying consolidated financial statements for periods following the Merger (see Note 3).

On May 31, 2017, Greenlight Acquisition Corporation (“Parent”) acquired ATS Consolidated Inc. (“ATS”) pursuant to the Agreement and Plan of Merger, dated April 15, 2017 by and among ATS, Greenlight Merger Corporation, a wholly-owned subsidiary of Parent (“ATS Merger Sub”) and Parent whereby ATS Consolidated merged with and into Merger Sub with the former surviving (the “ATS Merger”). Prior to the Business Combination, Parent was ultimately owned by Greenlight, which in turn was owned by certain private equity investment vehicles sponsored by Platinum Equity, LLC (such investment vehicles, collectively, “Platinum”) (See Note 3).

Pursuant to the ATS Merger, a new basis of accounting at fair value was established in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) under Accounting Standards Codification (ASC) Topic 805, Business Combinations (“ASC 805”). The new stepped-up basis was pushed down by Parent to Greenlight. The consolidated financial statements and footnotes contained herein are presented in distinct periods to indicate the application of two different bases of accounting between the periods presented. All periods presented up to, and including, May 31, 2017 have been labeled (“Predecessor” or “2017 Predecessor Period”) and have been prepared using the historical basis of accounting of the Predecessor. The period from June 1, 2017 to December 31, 2017 has been labeled (“Successor” or “2017 Successor Period”). The accompanying consolidated financial statements and footnotes include a black line division separating the Predecessor Period from the Successor Period. As a result of purchase accounting, the pre-ATS Merger and post-ATS Merger consolidated financial statements are not comparable.

Verra Mobility and its subsidiaries (collectively, the “Company”) is a technology enabled services company offering traffic safety, mobility and compliance solutions for state and local governments, commercial fleets and rental car companies. The Company has customers located throughout the United States and Canada. The Company is organized into two operating divisions: Government Solutions and Commercial Services (See Note 18).

The Government Solutions division provides complete, end-to-end red-light, speed, school bus stop arm and bus lane enforcement solutions. The Company’s programs are designed to reduce traffic violations and resulting collisions, injuries, and fatalities. The Company implements and administers traffic safety programs for municipalities and agencies of all sizes.

The Commercial Services division offers toll and violation management solutions for the commercial fleet and rental car industries by partnering with the leading fleet management and rental car companies in North America. Electronic toll payment services enable fleet drivers and rental car customers to use high-speed cashless toll lanes or cashless all-electronic toll roads. The service helps commercial fleets reduce toll management costs, while it provides rental car companies with a revenue-generating, value-added service for their customers. Electronic violation processing services reduce the cost and risk associated with vehicle-issued violations, such as toll, parking or camera-enforced tickets. Title and registration services offer title and registration processing for individuals, rental car companies and fleet management companies.

Summary of Significant Accounting Principles and Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Principles and Policies

2.	Summary of Significant Accounting Principles and Policies

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company prepared in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the fair values assigned to net assets acquired (including identifiable intangibles) in business combinations, the carrying amounts of long-lived assets and goodwill, the carrying amount of installation and service parts, the allowance for doubtful accounts, valuation allowances on deferred tax assets, asset retirement obligations, contingent consideration and the recognition and measurement of loss contingencies.

Management believes that its estimates and assumptions are reasonable in the circumstances; however, actual results could differ materially from those estimates.

Prior Period Reclassifications

Certain prior period amounts in the consolidated statements of operations have been reclassified to conform to the current presentation. The reclassification resulted in a decrease to selling, general and administrative expenses and an increase to operating expenses of $1.2 million and $0.7 million for the seven months ended December 31, 2017 and the five months ended May 31, 2017, respectively. The reclassification had no impact on income (loss) from operations, net (income) loss before income tax (benefit) provision and net income (loss) in the consolidated statements of operations.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with a remaining maturity of three months or less when acquired to be cash equivalents.

Restricted Cash

The Company collects citation fees for customers under certain contracts, which it deposits daily into Company bank accounts and transfers to customer-owned bank accounts on a continuous basis. Restricted Cash represents customer cash collected but not yet remitted to the customer. Restricted cash is classified as a current asset and the corresponding liability due to customers is classified in current liabilities.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents, accounts receivable and unbilled receivables. The Company limits cash and cash equivalents to highly rated financial institutions.

Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. Revenues from one of the Company’s customers accounted for 13.9%, 13.9% and 19.3% of net sales, for the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016, respectively. This customer did not meet the revenue criteria above for the year ended December 31, 2018. Accounts receivable from this customer were $12.6 million and $6.0 million as of December 31, 2018 and 2017, respectively.

Revenues generated through one of the Company’s Commercial Services partners accounted for 19.3%, 24.3%, 23.4% and 22.0% of net sales for the year ended December 31, 2018, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016, respectively. Additionally, revenues generated through two of the Company’s Commercial Services partners accounted for 15.0% and 13.2% of net sales for the year ended December 31, 2018. These customers were part of the Company’s 2018 acquisition of Highway Toll Administration, LLC and Canada Highway Toll Administration (See note 3).

Allowance for Doubtful Accounts

Accounts receivable and unbilled receivables are uncollateralized customer obligations due from the sale of products or services. Accounts receivable and unbilled receivables have normal trade terms less than one year and are stated at the amounts billed to the customers. Unbilled receivables are recorded when the revenue has been earned but not billed. No interest or late fees are charged on delinquent accounts.

The Company records an allowance for doubtful accounts for potentially uncollectible accounts. Estimates are used in determining the allowance for doubtful accounts and are based on historical collection experience, the condition of receivables and current trends. Actual receivables are written-off against the allowance when the Company has determined the balance will not be collected. The allowance for doubtful accounts as of December 31, 2018 and 2017 was $6.2 million and $5.5 million respectively.

Fair Value Measurements

As of December 31, 2018 and 2017, the amounts of our assets and liabilities that were accounted for at fair value were immaterial.

ASC Topic 820, Fair Value Measurement includes a single definition of fair value to be used for financial reporting purposes, provides a framework for applying this definition and for measuring fair value under U.S. GAAP, and establishes a fair value hierarchy that categorizes into three levels the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are summarized as follows:

Level 1 – Fair value is based on observable inputs such as quoted prices for identical assets or liabilities in active markets.

Level 2 – Fair value is determined using quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets that are not active or inputs other than quoted prices that are directly or indirectly observable.

Level 3 – Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow, or similar technique.

Fair Value of Financial Instruments

The carrying amounts reported in our condensed consolidated balance sheets for cash, accounts receivable, accounts payable and accrued expenses approximate fair value due to the immediate to short-term maturity of these financial instruments. The estimated fair values of our First and Second Lien Term Loans as of December 31, 2018 and 2017 were categorized in Level 2 of the fair value hierarchy and were calculated based upon available market information. The carrying value and fair value of these long-term debt instruments are as follows:

Level in

December 31, 2018

December 31, 2017

Fair Value

Carrying

Estimated

Carrying

Estimated

Hierarchy

Amount

Fair Value

Amount

Fair Value

Long-term debt

869,352,682

889,971,259

428,689,034

455,100,625

Installation and Service Parts

Installation and service parts consist of components used in the construction and maintenance of red-light camera and speed enforcement systems. Installation and service parts are stated at the lower of cost or market and are reclassified to property and equipment upon initiation of construction. Installation and service parts used in repairs and maintenance are recorded in operating expenses. The Company writes down installation and service parts to estimated market value based on assumptions regarding future usage. Such write downs establish a new cost basis for the items. In estimating excess and obsolete reserves the Company primarily evaluates estimates of usage over a 12-month period and generally provides reserves for installation and service parts on hand in excess of the estimated 12-month usage. The allowance for obsolescence as of December 31, 2018 and 2017 was $1.0 million and $0.9 million, respectivelyrespectively.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. All repairs and maintenance costs are expensed as incurred. Depreciation is recorded on a straight-line basis over the estimated useful lives of the related assets as follows:

Building		39 years
Equipment installed at customer sites		3-7 years
Computer equipment		3-5 years
Furniture		5-10 years
Automobiles		5-6 years
Software		3-5 years
Leasehold improvements		Shorter of lease term or estimated useful life

Equipment installed at customer sites includes certain installation costs that qualify for capitalization. Software costs include certain internal and external costs associated with the development of software that are incurred subsequent to the development stage. In addition, a modification or upgrade to existing software is capitalized only to the extent it results in additional functionality to existing software. Software maintenance and training costs are expensed as incurred. The Company capitalized internal and external software costs of $2.2 million, $1.9 million, $0.8 million and $4.1 million for the 2018 Successor Period, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016, respectively.

For the 2018 Successor Period, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016, the Company recognized gains from the sale of certain assets of $0.0 million, $0.0 million, $0.1 million and $0.4 million respectively.

Goodwill

Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. Goodwill is not amortized to earnings but assessed for impairment at least annually at the reporting unit level or more frequently if events or changes in circumstances indicate the carrying value may not be recoverable. If, based on qualitative analysis, it is determined more-likely-than-not the fair value of the reporting unit is less than its carrying amount, a two-step goodwill impairment test is performed. Application of the goodwill impairment test requires judgment, including the identification of reporting units, the assignment of assets (including goodwill) to those reporting units and the determination of the fair value of each reporting unit. The date of the Company’s annual impairment analysis is October 1. As described in Note 18, the Company has two operating segments, which are also the Company’s reporting units. As of December 31, 2018, and 2017, the Company completed its impairment test of goodwill using a qualitative analysis and determined there were no indicators of impairment for either reporting unit.

Intangible Assets

Intangible assets represent existing customer relationships, trademarks, developed technology and non-compete agreement intangibles. Other intangible assets are amortized over their respective estimated useful lives on a straight-line basis, which approximates the utilization of their expected future benefits. Amortization of other intangible assets is included in depreciation and amortization in the consolidated statements of operations.

Impairment of Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company recognizes an impairment loss if the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset is less than the carrying amount of the long-lived asset being evaluated.

For the year ended December 31, 2018, the 2017 Successor Period, and the 2017 Predecessor Period, the Company recognized no losses from impairment of long-lived assets. For the year ended December 31, 2016, the Company recognized a loss from impairment of long-lived assets of $0.5 million. Impairment losses are characterized within depreciation, amortization and gain (loss) on disposal of assets, net in the consolidated statements of operations. The loss incurred in 2016 relates to customers of the Government Solutions segment cancelling their contracts prior to the property and equipment being fully depreciated, necessitating the write-off of unrecoverable capitalized costs associated with the cameras. The Company believes the carrying amounts of its remaining long-lived assets at December 31, 2018 are fully realizable and does not believe any additional impairment losses are necessary.

Self-Insurance

The Company is self-insured for medical costs and has stop-loss insurance policies in to limit the Company’s exposure to individual and aggregate claims made. Liabilities for these programs are estimated based upon outstanding claims and claims estimated to be incurred but not yet reported based upon historical loss experience. These estimates are subject to variability due to changes in trends of losses for outstanding claims and incurred but not reported claims, including external factors such as the number, and cost of, claims, benefit level changes and claim settlement patterns.

Asset Retirement Obligations

The Company records obligations to perform certain retirement activities on camera and speed enforcement systems in the period that the related assets are placed in service. Asset retirement obligations are contractual obligations to restore property to its initial state. These obligations, which are initially estimated based on discounted cash flow estimates, are accreted to full value over time through charges to operating expenses in the consolidated statements of operations and comprehensive income (loss). The associated asset retirement obligation is capitalized as part of the related asset’s carrying value of the long-lived asset and is depreciated over the asset’s estimated remaining useful life.

Deferred Financing Costs

Deferred financing costs consist of the costs incurred to obtain long-term financing, including the Company’s Credit Agreement (See Note 9). These costs, which are presented as a reduction to long-term debt on the consolidated balance sheets, are amortized over the term of the related debt, using the effective interest method for term debt and the straight-line method for revolving credit facilities. Amortization of deferred financing costs for the year ended December 31, 2018, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016 was $9.2 million, $2.0 million,1 million and $0.5 million, respectively.

Income Taxes

The Company accounts for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the balance sheet carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax liabilities and assets that are not related to an asset or liability are classified according to the expected reversal date of the temporary difference. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion of all the tax assets will not be realized. The realization of deferred tax assets can be affected by, among other things, the nature, frequency, and severity of current and cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, the Company’s experience with utilizing operating losses and tax credit carryforwards by jurisdiction and tax planning alternatives that may be available.

The Company recognizes benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit.

Stock-based Compensation

Participants in the Company’s 2010 Long-Term Incentive Plan (the “2010 Plan”) were eligible to receive cash payouts for vested units issued under the 2010 Plan. Accordingly, the 2010 Plan was accounted for as a liability which was re-measured at fair value on each balance sheet date. Changes in the fair value were recognized in earnings over the requisite service period. The fair value of each unit granted was estimated on the date of grant using the Black-Scholes option pricing model. This model requires the input of highly subjective assumptions and requires the Company to estimate forfeitures in calculating the expense related to stock-based compensation. In 2016, the Company terminated the 2010 Plan and cancelled all outstanding units.

Participants in the Company’s 2016 Equity Incentive Plan (the “2016 Plan”) were eligible to receive cash payouts for vested units issued under the 2016 Plan. Awards vest ratably over four years and pay out on a change in control of the Company. Accordingly, the 2016 Plan was treated as an equity award and compensation cost of approximately $11.9 million was recognized and included in selling, general and administrative expenses on the consolidated statements of operations upon the ATS Merger. The 2016 Plan was terminated concurrent with the closing of the ATS Merger.

On July 6, 2017, Greenlight Holdings Corporation, the indirect parent of Verra Mobility, implemented the 2017 Participation Plan (the “2017 Plan”), under which those employees of the Company who were participants in the plan may have been entitled to receive compensation upon the occurrence of certain qualifying events. The 2017 Plan was terminated concurrent with the closing of the Business Combination.

In October 2018, the Company established the Verra Mobility 2018 Equity Incentive Plan (the “2018 Plan”). The plan provides for awards of a variety of stock-based awards to employees, consultants and directors. Stock-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the share-based payment award. Forfeitures are accounted for as they occur.

Earn-Out Agreement with Related Party

Under the Merger Agreement, the Platinum Stockholder will be entitled to receive additional shares of Class A Common Stock (the “Earn-Out Shares”) if the volume weighted average closing sale price of one share of Class A Stock on the Nasdaq exceeds certain thresholds for a period of at least 10 days out of 20 consecutive trading days at any time during the five-year period following the closing of the Mergers (the “Common Stock Price”).

The Earn-Out Shares will be issued by the Company to the Platinum Stockholder as follows: (i) a one-time issuance of 2,500,000 shares if the Common Stock Price is greater than $13.00; (ii) a one-time issuance of 2,500,000 shares if the Common Stock Price is greater than $15.50; (iii) a one-time issuance of 2,500,000 shares if the Common Stock Price is greater than $18.00; and (iv) a one-time issuance of 2,500,000 shares if the Common Stock Price is greater than $20.50. If any of the Common Stock Price thresholds described in the foregoing clauses (i) through (iv) (each, a “Triggering Event”) are not achieved within the five-year period following the closing of the Mergers, the Company will not be required to issue the Earn-Out Shares in respect of such Common Stock Price threshold. The Platinum Stockholder will be entitled to Earn-Out Shares in the event an acceleration event (as described in the Merger Agreement) occurs.

The Company has estimated the fair value of the contingently issuable shares to be $73.15 million. The Company used a Monte Carlo simulation option-pricing model to arrive at this estimate. Each tranche was valued separately giving specific consideration to the tranche’s price target. The simulation considered volatility and risk free rates utilizing a peer group based on a five year term. This estimate is initially recorded as a distribution to shareholders and is presented as contingently issuable shares. Upon the occurrence of a Triggering Event, any issuable shares would be transferred from contingently issuable shares to Common Stock and additional paid in capital. Any contingently issuable shares not issued as a result of a Triggering Event not being attained by the end of earn-out period will be cancelled.

Revenue Recognition

The Company recognizes revenue when persuasive evidence of the sales arrangement exists, the sales price and fees are fixed or determinable, delivery has occurred and/or services have been rendered with no significant obligations remaining and collectability is reasonably assured.

Government Solutions

Service revenue is recognized as services are performed or as citations are issued or paid depending on the terms of the contract. Service contracts typically include the operation and maintenance of fixed and/or mobile traffic enforcement systems, as well as processing services including violation notices, payment processing services, affidavit/liability transfer and new address services, inbound and outbound call support, skip tracing, department of motor vehicle hold services and/or debt collection services. Pricing for services are agreed to in the customer contract and can be fixed per camera, variable based on citation volume or a combination of both. Fixed fee revenue is recognized when the camera is operational and able to generate violations. Variable fee revenue is recognized at the time the service is performed. Product sales, which include the sale of camera systems and installations, are recognized when the equipment is either accepted or installed.

Contracts including both service revenue and product sales are recognized based on each deliverable’s individual selling price once the product or service has been delivered.

Certain contracts allow the customer to defer payment on fixed fee contracts until the funds received by the customer from the program equal or exceed the Company’s fees. Revenue is recognized based on the lesser of the funds received by the customer and the fixed fee.

Commercial Services

Service revenues are recognized as services are performed. Service agreements typically include the provision of toll and violation management solutions.

The Company’s tolling services provide toll processing for its customers who drive fleet management or rental car vehicles. Once the Company receives toll usage information and identifies the driver, the driver is charged for both the toll and a processing fee as stipulated in contracts between the driver and the fleet management or rental car company. Tolls are paid to the tolling authority by the Company and a portion of the processing fee is remitted to the relevant fleet management or rental car company. Toll revenue is recorded net of the payment of the related tolls and the amount payable to the fleet management and rental car company.

The Company’s violations processing services process driver violations for its customers who drive fleet management or rental car vehicles. When a violation is reported, the Company transfers the liability of the fine to the driver of the vehicle and, if possible, charges the driver a processing fee. In jurisdictions where the Company is unable to legally transfer the liability, the Company pays the fine and charges the driver for the fine plus a processing fee. A portion of the collected processing fee is remitted to the Company’s fleet management or rental car company. Violation fines received from drivers are paid to the authority by the Company. Violation fine revenue is recorded net of the payment of the violation. Violation processing fee revenue is recorded net of amounts paid to the fleet management or rental car company.

Title and registration processing services are offered, primarily, to fleet management and rental car companies. The Company pays the title and registration fees to the appropriate motor vehicle authority on behalf of the customer and then charges the customer for the title and registration fees paid, plus a processing fee. Revenue is recognized for the total amount billed to the customer net of the registration cost.

Amortization of deferred contract inducement fees, which are paid to certain of the Company’s fleet management and rental car customers, is recorded over the life of the respective contracts. Amortization of deferred contract inducement fees is recorded as a reduction of revenue.

Credit Card Rebates

The Company earns credit card rebates as purchases occur and recognizes the benefit in other income, net in the consolidated statements of operations. For the year ended December 31, 2018, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016, the Company recorded $8.9 million, $2.1 million, $1.3 million and $2.9 million respectively, related to rebates.

Advertising Costs

The Company expenses advertising costs as incurred. Advertising costs for the year ended December 31, 2018, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016 were $1.4 million, $0.4 million, $0.4 million and $1.0 million, respectively and are included in selling, general, and administrative expenses in the consolidated statements of operations.

Foreign Currency

The assets and liabilities of our foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars from functional currencies at current exchange rates while revenues and expenses are translated from functional currencies at average monthly exchange rates. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss) in shareholders’ equity.

Certain assets and liabilities denominated in foreign currencies that differ from their functional currencies are re-measured at the exchange rate on the balance sheet date. The foreign currency effect of the re-measurement of these assets and liabilities are included in other (income) expense in the consolidated statements of operations. The impact of foreign currency re-measurements were $0.1 million, $0.0 million, $0.0 million and $0.7 million for the year ended December 31, 2018, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016, respectively.

Business Combinations

The Company applies the asset acquisition method to account for business acquisitions. The Company allocates the fair value of the purchase price consideration to assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of the purchase consideration over the fair value of the identifiable assets and liabilities is recorded as goodwill.

The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed is based on various assumptions and valuation methodologies requiring considerable management judgment and include the use of independent valuation specialists to assist the Company in estimating fair values of acquired tangible and/or intangible assets. Although the Company believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from estimates.

Segment Information

In accordance with the provisions of ASC 280-10, “Disclosures about Segments of an Enterprise and Related Information”, the Company is required to report financial and descriptive information about its reportable operating segments that meet certain quantitative thresholds. The Company has two operating segments (Government Solutions and Commercial Services) for which separate financial information is available and is regularly reviewed by the Company’s chief operating decision maker (“CODM”) to assess performance and make decisions about the allocation of resources. As of December 31, 2018, our CODM function consists of our Chief Executive Officer and certain defined representatives of the Company’s executive management team (See note 18).

Recent Accounting Pronouncements

Accounting Standards Adopted

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes and forfeitures, statutory tax withholding requirements and classification on the statement of cash flows. The Company early adopted ASU 2016-09 on January 1, 2018. Excess tax benefits or deficiencies for stock-based compensation will be reflected in our Consolidated Statements of Operations and Comprehensive Income as a component of income tax expense. No excess tax benefits were recognized in equity prior to the Company’s early adoption of ASU 2016-09. The Company also elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The adoption of ASU 2016-09 did not have a material impact on the Company's financial position, results of operations or cash flows and disclosures.

In August 2016, the FASB issued ASU 2016-15Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The standard addresses the following specific cash flow issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transitions and (8) separately identifiable cash flows and application of predominance principle. The new standard was effective for the Company on January 1, 2018, which the Company elected to adopt prospectively. Prior periods were not retrospectively adjusted, as the impact was not deemed material. The new standard affected the presentation of cash payments associated with the extinguishment of our debt in the first quarter of 2018 (see Note 9). In accordance with the new standard, cash payments associated with the Company's loss on extinguishment of debt are presented as a cash outflow from financing activities in the Company's condensed consolidated statement of cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company elected to early adopt the requirements of the new standard in the fourth quarter of 2018 using the retrospective transition method, as required by the new standard. The adoption of this ASU had an immaterial impact to on the consolidated statements of cash flows.

The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of such amounts in the consolidated statements of cash flows:

	December 31,
	2018		2017
Cash and cash equivalents	$	65,048,194	$	8,724,945
Restricted Cash		2,033,186		1,784,665
Cash, cash equivalents and restricted cash in the consolidated statements of cash flows	$	67,081,380	$	10,509,610

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The guidance in ASU 2017-01 clarifies the definition of a business with the objective of assisting entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The new standard was effective for the Company on January 1, 2018. The Company considered the provisions of this standard in concluding that its purchases of Highway Toll Administration, LLC and Euro Parking Collection plc in 2018 (see Note 3) should be accounted for as an acquisition of a business and not as an acquisition of assets.

In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. The updates in ASU 2017-09 were issued to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when changing the terms or conditions of share-based payment awards. Under the updated guidance, a modification is defined as a change in the terms or conditions of a share-based payment award, and an entity should account for the effects of a modification unless certain conditions are met. The new standard was effective for the Company on January 1, 2018 and did not have a material effect on the Company's financial position, results of operations or cash flows and disclosures.

Accounting Standards Not Yet Adopted

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606 and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, December 2016 and September 2017 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, respectively (ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20 and ASU 2017-13, respectively, and collectively Topic 606). Topic 606 supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of this standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. This guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. In August 2015, the FASB amended this accounting standard and postponed the implementation date to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early application for fiscal years, and interim periods within those years, beginning after December 15, 2016 is permitted. The standard permits the use of either the retrospective or cumulative effect transition method.

The Company is substantially complete with its evaluation and does not expect that the implementation of the new standard will have a material effect on the Company's consolidated financial position, results of operations or cash flows. The Company has identified one difference in its Government Solutions Segment related to the accounting for certain contracts for which there are performance obligations subsequent to the contractual billing terms. Under the new standard, these contracts will be accounted for under a revenue deferral method. The Company will defer the revenue for these contracts until all performance obligations are complete. On January 1, 2019, the Company will adopt the new revenue standard on a modified retrospective basis, and expects to record deferred revenue in an amount not expected to exceed $400,000 and an after-tax transition adjustment to reduce retained earnings as of January 1, 2019 in an amount not expected to exceed $300,000 The new standard will also require incremental revenue-related disclosures.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The main objective of this update is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most notably ASU 2016-01 requires the change in fair value of available for sale securities to be recognized in net income. The pronouncement also requires the use of the exit price notion, the separate presentation of financial assets and liabilities by measurement category and form of asset, and the separate presentation in other comprehensive income of changes in fair value resulting from a change in the instrument-specific credit risk. The pronouncement is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The impact of the implementation of this standard is still being determined by the Company.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and issued certain amendments in January and July 2018 within ASU 2018-01, 2018-10 and ASU 2018-11, respectively and collectively Topic 842 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The impact of the implementation of this standard is still being determined by the Company.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), which requires companies to present assets held at amortized cost and available for sale debt securities net of the amount expected to be collected. The guidance requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectability. The guidance will be effective for fiscal years and interim periods beginning after December 15, 2019 and early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Different components of the guidance require modified retrospective or prospective adoption. The impact of the implementation of this standard is still being determined by the Company.

In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350). ASU 2017-04 simplifies the accounting for goodwill impairment and removes Step 2 of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value limited to the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. The amendments in this ASU are effective for goodwill impairment tests in fiscal years beginning after December 15, 2021. The impact of the implementation of this standard is still being determined by the Company.

In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. These amendments expand the scope of Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. ASU 2018-07 is effective beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than a company’s adoption date of Topic 606, Revenue from Contracts with Customers. At this time, the Company does not expect this standard to have a material effect on the Company's financial position, results of operations or cash flows and disclosures.

In August 2018, the FASB issued ASU 2018-13, (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this update and delay adoption of the additional disclosures until their effective date. The impact of the implementation of this standard is still being determined by the Company.

Merger and Acquisition

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Merger and Acquisition

3.	Mergers and Acquisition

Verra Mobility Merger

As described in Note 1, Gores and Greenlight consummated the Business Combination on October 17, 2018. Pursuant to ASC 805, the Business Combination qualified as a reverse acquisition since immediately following completion of the transaction the stockholders of Greenlight immediately prior to the Business Combination maintained effective control of Verra Mobility, the post-combination company. For accounting purposes, Greenlight is deemed the accounting acquirer in the transaction and, consequently, the transaction is treated as recapitalization of Greenlight (i.e. a capital transaction involving the issuance of stock by Greenlight in exchange for the payment of cash by Gores to the selling shareholders of Greenlight). Accordingly, the consolidated assets, liabilities and results of operations of Greenlight are the historical financial statements of Verra Mobility and the Gores assets, liabilities and results of operations are consolidated with Greenlight beginning on the acquisition date. No step-up in basis of intangible assets or goodwill was recorded for this transaction. The Company effected this treatment through opening stockholders’ equity by adjusting the number of common shares outstanding. Other than underwriting and professional fees paid to consummate the transaction, the Business Combination primarily involved the exchange of cash and equity between Gores, Greenlight and the stockholders of the respective companies.

ATS Merger

On May 31, 2017, ATS was acquired by Parent through the merger of ATS Merger Sub with and into ATS for a total purchase price of $548.2 million ($550.0 million less adjustments set forth in the Merger agreement).

Predecessor

The Company recognized approximately $21.1 million of costs related to the ATS Merger, which were included in selling, general and administrative expenses in the consolidated statements of operations for the 2017 Predecessor Period. These costs consisted of $11.9 million of payments under the 2016 equity plan, $1.3 million of transaction bonus payments, and $7.9 million of professional fees and other expenses related to the sale of the Company.

Successor

The Company recognized approximately $9.9 million of costs related to the ATS Merger which are included in the selling, general and administrative expenses in the consolidated statements of operations for the 2017 Successor Period. These costs consisted of $8.0 million of payments for acquisition services to Platinum Equity Advisors, LLC, an affiliate of Platinum (“Advisors”) and $1.9 million of professional fees and other expenses related to the ATS Merger.

On May 31, 2017, ATS Merger Sub obtained debt financing pursuant to a credit agreement entered into with a syndicate of lenders. ATS Merger Sub was merged with and into ATS on the same date effectively making ATS the sole borrower (see Note 9).

The Company employed the push down basis of accounting and allocated the consideration paid by the acquirer in connection with the Merger to the Company’s assets and liabilities based on their preliminary estimated fair values at the date of the Merger as presented in the table below. The excess of the cost of the Merger over the net amounts assigned to the fair value of the assets acquired and liabilities assumed was recorded as goodwill.

Assets acquired
Cash	$	9,112,114
Restricted cash		1,229,118
Accounts receivable		50,908,663
Prepaid expense and other current assets		7,764,515
Installation and service parts		9,109,702
Property and equipment		64,596,596
Goodwill		294,414,522
Intangible assets		222,500,000
Other non-current assets		1,122,588
Total assets acquired		660,757,818

Liabilities assumed
Accounts payable and accrued expenses		22,565,224
Other long-term liabilities		9,310,190
Deferred tax liability		80,687,311
Total liabilities assumed		112,562,725
Total purchase price	$	548,195,093

The identifiable intangible assets consist of $24.8 million attributable to trademarks, $13.6 million to non-compete agreements, $99.6 million to customer relationships, and $84.5 million to developed technology. The non-compete values were based on the with-or-without method. The customer relationship value was based on an excess earnings methodology utilizing projected cash flows. The trademark and the developed technology values were based on the relief from royalty method. The customer relationship, developed technology, non-competition and trademark intangibles were assigned useful lives of 8.5 years, 5.5 years, 5 years and 10 years, respectively. The Company subsequently adjusted the useful life of the trademark from 10 years to 3.8 years (see Note 6).

The goodwill arising from the Merger was assigned to the Company’s Government Solutions and Commercial Services segments in the amounts of $159.7 million and $134.7 million, respectively. The goodwill consists largely of the expected cash flows and future growth anticipated for the Company. The goodwill is not deductible for tax purposes.

HTA Merger

On March 1, 2018, the Company acquired all of the issued and outstanding membership interests of Highway Toll Administration, LLC, and Canada Highway Toll Administration (collectively, “HTA”), pursuant to a unit purchase agreement (“Unit Agreement”) for a cash purchase price of $525.0 million subject to adjustments set forth in the Unit Agreement which aggregated $9.7 million, an $11.3 million payable to the HTA sellers for certain tax items and the issuance of 5.26 shares of Greenlight common stock resulting in an aggregate purchase price of $603.3 million (the “HTA Merger”). The Greenlight shares issued to the Company were determined to have a fair value of $57.3 million. The Company reflected the receipt of the Greenlight common shares as a capital contribution from Parent and then delivered these shares to the HTA sellers as non-cash purchase consideration.

The Company estimated the fair value of the Greenlight common shares issued in connection with this transaction with input from management and a contemporaneous third-party valuation of the Company. Management determined the fair value of Greenlight was the same as the Company as Greenlight’s only holdings were the Company. The valuation advisory firm prepared a valuation report as of March 1, 2018. The assumptions and inputs used in connection with the valuation reflected management’s best estimate of the Company’s business condition, prospects and operating performance on the valuation date. The Company averaged the results of a discounted cash flow analysis, comparable public company analysis and comparable acquisitions analysis to determine an enterprise value of $2.1 billion. The Company then deducted debt of $1.0 billion to arrive at a concluded equity value of $1.1 billion, which was used to derive a per share value.

The allocation of the purchase price is summarized as follows:

Assets acquired
Cash	$	2,995,722
Accounts receivable		10,219,709
Prepaid expense and other current assets		5,266,168
Installation and service parts		296,535
Property and equipment		995,816
Customer relationships		242,500,000
Developed technology		72,800,000
Non-competition agreements		48,500,000
Trademark		5,500,000
Goodwill		233,271,150
Total assets acquired		622,345,100

Liabilities assumed
Accounts payable and accrued expenses		14,267,971
Deferred tax liability		4,733,044
Total liabilities assumed		19,001,015
Total purchase price	$	603,344,085

The excess of cost of the HTA Merger over the net amounts assigned to the fair value of the net assets acquired was recorded as goodwill and was assigned to the Company’s Commercial Services segment. During the period from acquisition to December 31, 2018, the Company made certain immaterial adjustments to the preliminary purchase price allocation resulting in a $1.2 million net reduction to goodwill. The goodwill consists largely of the expected cash flows and future growth anticipated for the Company. Most of the goodwill is expected to be deductible for tax purposes. The customer relationship value was based on an excess earnings methodology utilizing projected cash flows. The non-competition agreement values were based on the with-or-without method. The trademark and the developed technology values were based on a relief from royalty method. The customer relationship, developed technology, non-competition and trademark intangibles were assigned useful lives of 9 years, 5.5 years, 5 years and 3 years, respectively.

The Company recognized $15.6 million of costs related to the HTA Merger, which were included in selling, general and administrative expenses in the consolidated statement of operations in the three months ended March 31, 2018.

These costs consisted of $7.2 million for acquisition services to Advisors and $8.4 million of professional fees and other expenses related to the transaction.

EPC Merger

On April 6, 2018, the Company acquired all of the issued and outstanding capital stock of Euro Parking Collection plc (“EPC”), pursuant to a stock purchase agreement for purchase consideration of 5.54 shares of Greenlight common stock and working capital adjustments set forth in the share purchase agreement, which aggregated $2.6 million, resulting in an aggregate purchase price of $62.9 million (the “EPC Merger”). The Company reflected the receipt of the Greenlight II common shares as a capital contribution from Parent and then delivered these shares to the EPC sellers as non-cash purchase consideration.

The Company estimated the fair value of the Greenlight common shares issued in connection with this transaction with input from management and a contemporaneous third-party valuation of the Company.

Management determined the fair value of Greenlight was the same as the Company as Greenlight’s only holdings were the Company. The valuation advisory firm prepared a valuation report as of March 1, 2018. The assumptions and inputs used in connection with the valuation reflected management’s best estimate of the Company’s business condition, prospects and operating performance on the valuation date. The Company averaged the results of a discounted cash flow analysis, comparable public company analysis and comparable acquisitions analysis to determine an enterprise value of $2.1 billion. The Company then deducted debt of $1.0 billion to arrive at a concluded equity value of $1.1 billion, which was used to derive a per share value.

The preliminary allocation of the purchase consideration is summarized as follows:

Assets acquired
Cash	$	9,029,240
Other assets		1,948,150
Trademark		1,100,000
Customer relationships		19,400,000
Developed technology		3,900,000
Goodwill		40,825,951
Total assets acquired		76,203,341

Liabilities assumed
Accounts payable and accrued expenses		8,994,939
Deferred tax liability		4,273,117
Total liabilities assumed		13,268,056
Total purchase price	$	62,935,285

Goodwill arising from the EPC Merger was assigned to the Company’s Commercial Services segment and consists largely of the expected cash flows and future growth anticipated for the Company. The goodwill is not expected to be deductible for tax purposes. The customer relationship value was based on an excess earnings methodology utilizing projected cash flows. The trademark and the developed technology values were based on a relief from royalty method. The customer relationship, trademark, and developed technology intangibles were preliminarily assigned useful lives of 10 years, 5 years and 4.5 years, respectively.

The Company recognized $3.0 million of costs related to the EPC Merger in the three months ended June 30, 2018, which consisted of $2.5 million for acquisition services to Advisors and $0.5 million of professional fees and other expenses.

Sunshine Acquisition

On January 27, 2016, the Company acquired certain of the assets and liabilities of Sunshine State Tag Agency, Inc., Auto Tag of America, Inc. and Auto Titles of America, Inc., (collectively, “Sunshine”) for net consideration of approximately $21.2 million. Sunshine is a title and registration processing company with operations in Florida, Texas and Arizona. Sunshine had a number of contracts with customers and departments of motor vehicles, departments of transportation and tax assessors, as well as certain intellectual property used in connection with title and registration processing.

The allocation of the purchase price is summarized as follows:

Assets acquired
Accounts receivable, net	$	46,073
Property and equipment		88,273
Non-compete agreements		3,000
Customer relationships		17,196,000
Software		250,000
Tradename		487,000
Goodwill		4,927,904
Total assets acquired		22,998,250

Liabilities assumed
Advanced deposits payable		1,765,261
Total purchase price	$	21,232,989

The goodwill recognized as part of the transaction was generated by intangible assets that do not qualify for separate recognition. The goodwill resulting from this transaction that is expected to be deductible for tax purposes is $4.9 million.

Pro Forma Financial Information

The pro forma information below gives effect to the Merger, the HTA Merger and the EPC Merger (collectively, the “Transactions”) as if they had been completed on the first day of each period presented. The pro forma results of operations are presented for information purposes only. As such, they are not necessarily indicative of the Company’s results had the Transactions been completed on the first day of each period presented, nor do they intend to represent the Company’s future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisitions and does not reflect additional revenue opportunities following the Transactions. The pro forma information includes adjustments to record the assets and liabilities associated with the Transactions at their respective fair values based on available information and to give effect to the financing for the Transactions.

	Successor					Predecessor
	Year Ended			Seven months ended		Five months ended			Year Ended
	December 31, 2018			December 31, 2017		May 31, 2017			December 31, 2016
Revenue	$	389,367,087		$	210,563,096	$	138,178,167		$	329,407,665
Income from operations		39,559,861			29,241,973		17,148,364			26,945,720
Net income (loss) before income tax benefit		(8,743,255	)		1,596,488		(1,669,275	)		(15,946,740	)
Net income (loss)		(9,583,012	)		27,360,377		(1,219,511	)		(8,782,820	)
Earnings per share - basic	$	(0.06	)	$	0.18	$	(0.01	)	$	(0.06	)

The opening balance sheet values assigned to the assets acquired and liabilities assumed for the HTA Merger and the EPC Merger are based on preliminary valuations and are subject to change as we obtain additional information during the acquisition measurement periods. Increases or decreases in the estimated fair values of the net assets acquired may impact our statements of income in future periods. We do not expect material changes to the assigned values. The pro forma results include adjustments to reflect additional amortization of intangibles associated with the acquired businesses and additional interest expense for debt issued in connection with the HTA Merger.

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2018

Prepaid Expense And Other Assets Current [Abstract]

Prepaid Expenses and Other Current Assets

4.	Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets, consist of the following at December 31:

	2018		2017
Prepaid income taxes	$	1,561,787	$	8,144,196
Prepaid services		3,016,849		2,476,575
Prepaid tolls		8,434,367		2,466,005
Prepaid computer maintenance		1,709,238		1,894,032
Prepaid insurance		1,230,086		353,654
Deposits		838,640		82,398
Prepaid rent		406,361		323,367
Other		402,942		48,685
Total prepaid expenses and other current assets	$	17,600,270	$	15,788,912

Property and Equipment, net

12 Months Ended

Dec. 31, 2018

Property Plant And Equipment [Abstract]

Property and Equipment, net

5.	Property and Equipment, net

Property and equipment, net, consists of the following at December 31:

	2018			2017
Construction in progress	$	2,097,061		$	3,796,167
Equipment installed at customer sites		70,164,185			58,679,973
Computer equipment		5,758,127			2,320,481
Furniture		1,825,553			1,542,589
Automobiles		1,288,828			909,545
Software		11,189,356			4,885,679
Leasehold improvements		7,899,013			7,710,392
Property and equipment		100,222,123			79,844,826
Less: accumulated depreciation		(30,979,312	)		(14,474,130	)
Property and equipment, net	$	69,242,811		$	65,370,696

Depreciation expense for the year ended December 31, 2018, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016 was $22.5 million, $11.8 million and $32.1 million, respectively, including depreciation related to costs to develop or implement software for internal use of $2.9 million, $0.9 million, $1.8 million, and $5.2 million for the year ended December 31, 2018, the 2017 Successor Period, the 2017 Predecessor Period and the year ended December 31, 2016, respectively.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6.	Goodwill and Intangible Assets

The following table presents the changes in the carrying amount of goodwill by reportable segment:

	Government			Commercial
	Solutions			Services			Totals
Balance at December 31, 2016	$	2,617,950		$	4,927,904		$	7,545,854
Purchase accounting adjustment for Merger		(2,617,950	)		(4,927,904	)		(7,545,854	)
Goodwill from Merger		159,746,649			134,667,873			294,414,522
Balance at December 31, 2017		159,746,649			134,667,873			294,414,522
Goodwill from HTA Merger		—			232,032,774			232,032,774
Goodwill from EPC Merger		—			40,825,951			40,825,951
Measurement period adjustments		—			1,238,376			1,238,376
Foreign currency translation adjustment		—			(3,788,125	)		(3,788,125	)
Balance at December 31, 2018	$	159,746,649		$	404,976,849		$	564,723,498

During the fourth quarter of 2018, the Company identified revisions to the provisionally recorded amounts of HTA customer receivables, customer margin share payables and tolls payable. The aggregate amount of those items were recorded as additional goodwill as detailed in the measurement period adjustment above.

The gross carrying amount and accumulated amortization of separately identifiable intangible assets are as follows:

Weighted

At December 31, 2018

Average

Gross

Remaining

Amortization

Carrying

Accumulated

Useful life

Period

Amount

Amortization

Trademarks

2.7 years

3.7 years

31,301,771