Selected Balance Sheet Accounts

3 Months Ended

Mar. 31, 2020

Balance Sheet Related Disclosures [Abstract]

Selected Balance Sheet Accounts

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

	March 31, 2020			December 31, 2019
Computer software and hardware	$	11,724		$	12,804
Capitalized internal use software		7,060			5,878
Furniture and equipment		1,743			1,743
Leasehold improvements		1,613			1,613
		22,140			22,038
Less—Accumulated depreciation and amortization		(19,040	)		(18,689	)
Property and Equipment, net	$	3,100		$	3,349

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 high credit quality financial institutions in the United States. Deposits held by banks exceed the amount of insurance provided for such deposits.

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 accounts receivable balances. Approximately 38%, or $8.2 million, of gross accounts receivable at March 31, 2020, and approximately 34% of total revenues for the quarter ended March 31, 2020, are related to Urban Science Applications (which represents Acura, Honda, Infiniti, Subaru, Toyota and Volvo), Carat Detroit (which represents General Motors) and Media.net. For 2019, 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 and Carat Detroit.

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, 2020							December 31, 2019
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	$	(15,571	)	$	1,018	$	16,589	$	(15,442	)	$	1,147
Customer relationships	2 – 5 years		19,563		(19,258	)		305		19,563		(18,800	)		763
Developed technology	5 – 7 years		8,955		(6,234	)		2,721		8,955		(5,961	)		2,994
		$	45,107	$	(41,063	)	$	4,044	$	45,107	$	(40,203	)	$	4,904

		March 31, 2020						December 31, 2019
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 $0.9 million and $1.4 million for the three months ended March 31, 2020 and 2019, respectively.

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

Year	Amortization Expense
2020	$	1,511
2021		1,499
2022		902
2023		86
2024		46
	$	4,044

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

	March 31, 2020		December 31, 2019
Accrued employee-related benefits	$	1,345	$	1,004
Other accrued expenses and other current liabilities:
Other accrued expenses		1,181		1,264
Amounts due to customers		337		355
Other current liabilities		178		696
Total other accrued expenses and other current liabilities		1,696		2,315
Total accrued expenses and other current liabilities	$	3,041	$	3,319

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 payable at an annual 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.