Selected Balance Sheet Accounts

3 Months Ended

Mar. 31, 2019

Selected Balance Sheet Accounts [Abstract]

Selected Balance Sheet Accounts

Property and Equipment.  Property and equipment consists of the following:

	March 31, 2019			December 31, 2018
Computer software and hardware	$	11,448		$	11,393
Capitalized internal use software		6,228			6,228
Furniture and equipment		1,743			1,743
Leasehold improvements		1,613			1,613
		21,032			20,977
Less—Accumulated depreciation and amortization		(18,223	)		(17,796	)
Property and Equipment, net	$	2,809		$	3,181

Concentration of Credit Risk and Risks Due to Significant Customers.  Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are primarily maintained with two high credit quality financial institutions in the United States. Deposits held by banks exceed the amount of insurance provided for such deposits. These deposits may be redeemed upon demand.

Accounts receivable are primarily derived from fees billed to Dealers and Manufacturers. The Company generally requires no collateral to support its accounts receivables and maintains an allowance for bad debts for potential credit losses.

The Company has a concentration of credit risk with its automotive industry related accounts receivable balances. Approximately 37%, or $8.6 million, of gross accounts receivable at March 31, 2019, and approximately 28% of total revenues for the quarter ended March 31, 2019, are related to Urban Science Applications (which represents Acura, Honda, Nissan, Infiniti, Subaru, Toyota and Volvo) and General Motors. For 2018, approximately 45%, or $11.6 million, of gross accounts receivables at March 31, 2018, and approximately 38% of total revenues for the quarter ended March 31, 2018, is related to Urban Science Applications, General Motors and Media.net Advertising.

Intangible Assets.  The Company amortizes specifically identified definite-lived intangible assets using the straight-line method over the estimated useful lives of the assets.

The Company’s intangible assets will be amortized over the following estimated useful lives:

		March 31, 2019							December 31, 2018
Definite-lived Intangible Asset	Estimated Useful Life	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Trademarks/trade names/licenses/ domains	3 – 7 years	$	16,589	$	(15,053	)	$	1,536	$	16,589	$	(14,914	)	$	1,675
Customer relationships	2 - 5 years		19,563		(16,491	)		3,072		19,563		(15,544	)		4,019
Developed technology	5-7 years		8,955		(5,145	)		3,810		8,955		(4,873	)		4,082
		$	45,107	$	(36,689	)	$	8,418	$	45,107	$	(35,331	)	$	9,776

		March 31, 2019						December 31, 2018
Indefinite-lived Intangible Asset	Estimated Useful Life	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Domain	Indefinite	$	2,200	$	—	$	2,200	$	2,200	$	—	$	2,200

Amortization expense is included in “Cost of revenues” and “Depreciation and amortization” in the Unaudited Condensed Consolidated Statements of Operations. Amortization expense was $1.4 million and $1.7 million for the three months ended March 31, 2019 and 2018, respectively.

Amortization expense for the remainder of the year and for future years is as follows:

Year	Amortization Expense
2019	$	3,514
2020		2,371
2021		1,499
2022		902
2023		86
Thereafter		46
	$	8,418

Accrued Expenses and Other Current Liabilities.  Accrued expenses and other current liabilities consisted of the following:

	March 31, 2019		December 31, 2018
Accrued employee-related benefits	$	1,934	$	3,125
Other accrued expenses and other current liabilities:
Other accrued expenses		555		1,346
Amounts due to customers		375		424
Other current liabilities		366		434
Total other accrued expenses and other current liabilities		1,296		2,204
Total accrued expenses and other current liabilities	$	3,230	$	5,329

Convertible Notes Payable. In connection with the acquisition of AutoUSA, LLC on January 13, 2014, the Company issued a convertible subordinated promissory note for $1.0 million (“AutoUSA Note”) to AutoNationDirect.com, Inc. with interest is payable at an annual interest rate of 6% in quarterly installments. The entire outstanding balance of the AutoUSA Note plus accrued interest was paid in full on January 31, 2019.