3. Selected Balance Sheet Accounts

Property and Equipment

Property and equipment consists of the following:


	As of December 31,
	2012			2011
	(in thousands)
Computer software and hardware and capitalized internal use software	$	11,729		$	12,035
Furniture and equipment		1,252			1,272
Leasehold improvements		892			942

		13,873			14,249
Less—Accumulated depreciation and amortization		(12,280	)		(12,620	)

Property and Equipment, net	$	1,593		$	1,629

As of December 31, 2012 and 2011, capitalized internal use software, net of amortization, was $0.8 million and $0.9 million, respectively. Depreciation and amortization expense related to property and equipment was $0.8 million for the year ended December 31, 2012. Of this amount, $0.2 million was recorded in cost of revenues and $0.6 million was recorded in operating expenses. Depreciation and amortization expense related to property and equipment was $0.7 million for the year ended December 31, 2011. Of this amount, $0.1 million was recorded in cost of revenues and $0.6 million was recorded in operating expenses.

Investments. In August 2010, the Company acquired less than a 5% equity interest in Driverside, Inc. ("Driverside"), a non-publicly traded company, for $1.0 million. Driverside provides consumers with a broad set of content, features, tools, technology, systems, products, services and programs related to the efficient ownership of motor vehicles. The Company received 1,352,082 shares of Series C preferred stock in Driverside for its investment. The Company made an additional investment in Driverside in 2011 for $16,737. The Company recorded the investments in Driverside at cost because the Company does not have significant influence over Driverside. In 2011, Driverside merged with another entity and the Company received a cash payment of $823,000, representing the Company's pro rata share of the initial merger consideration. The $823,000 received at closing of the transaction was recorded as a reduction to the Driverside investment on the Company's consolidated balance sheet. In 2012 the Company received $326,000, which represented its pro rata share of contingent payments upon milestones achieved by Driverside. The Company is also entitled to receive the pro rata share of amounts, if any, released from an escrow account established to satisfy post-closing indemnification claims that ranges from $0 - $106,000. Of the $326,000 received in 2012, $194,000 was recorded as a complete reduction to the investment in Driverside and $132,000 was recorded as other income.

Intangible Assets. The Company amortizes specifically identified intangible assets using the straight-line method over the estimated useful lives of the assets. In connection with the acquisition of Cyber on the Acquisition Date, the Company identified $4.5 million of intangible assets. The Company's intangible assets will be amortized over the following estimated useful lives:

		December 31, 2012
Intangible Asset	Estimated Useful Life	Gross	Accumulated Amortization	Net
Trademarks/trade names	5 years	$5,540	($5,023)	$517
Software and publications	3 years	1,300	(992)	308
Customer relationships	3 years	1,870	(1,427)	443
Employment/non-compete agreements	5 years	500	(229)	271
		$9,210	($7,671)	$1,539

Amortization expense is included in "Depreciation and amortization" in the Statement of Income. Amortization expense for intangible assets for the next five years is as follows:

Year	Amortization Expense
	(in thousands)

2013	$	1,036
2014		284
2015		208
2016		3
2017		—
	$	1,531

Goodwill. The Company recorded $11.7 million in goodwill related to the acquisition of Cyber. Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is not amortized and is assessed annually for impairment or whenever events or circumstances indicate that the carrying value of such assets may not be recoverable. The Company did not record any impairment related to goodwill as of December 31, 2012 and 2011.

Accrued Expenses and Other Current Liabilities

As of December 31, 2012 and 2011, accrued expenses and other current liabilities consisted of the following:

	As of December 31,
	2012		2011
	(in thousands)
Compensation and related costs and professional fees	$	2,006	$	2,084
Other accrued expenses		2,847		2,221
Amounts due to customers		149		180
Other current liabilities		375		509
Total accrued expenses and other current liabilities	$	5,377	$	4,994

Long-term debt. In connection with the acquisition of Cyber, the Company issued a convertible subordinated promissory note for $5.0 million ("Convertible Note") to the sellers. The fair value of the Convertible Note as of the Acquisition Date was $5.9 million. This valuation was estimated using a binomial option pricing method. Key assumptions used in valuing the Convertible Note included a market yield of 15.0% and stock price volatility of 77.5%. As the Convertible Note was issued with a substantial premium, the Company recorded the premium as additional paid-in capital. Interest is payable at an annual interest rate of 6% in quarterly installments. The entire outstanding balance of the Convertible Note is to be paid in full on September 30, 2015. At any time after September 30, 2013, the holders of the Convertible Note may convert all or any part of, but in 40,000 minimum share increments, the then outstanding and unpaid principal of the Convertible Note into fully paid shares of the Company's common stock at a conversion price of $4.65 per share (as adjusted for stock splits, stock dividends, combinations and other similar events). The right to convert the Convertible Note into common stock of the Company is accelerated in the event of a change in control of the Company. In the event of default, the entire unpaid balance of the Convertible Note will become immediately due and payable and will bear interest at the lower of 8% per year and the highest legal rate permissible under applicable law.