Selected Balance Sheet Accounts

9 Months Ended

Sep. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Selected Balance Sheet Accounts

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

	September 30, 2020			December 31, 2019
Computer software and hardware	$	11,302		$	11,267
Capitalized internal use software		7,391			5,878
Furniture and equipment		1,743			1,743
Leasehold improvements		1,613			1,613
Construction in progress		647			1,537
		22,696			22,038
Less—Accumulated depreciation and amortization		(19,696	)		(18,689	)
Property and equipment, net	$	3,000		$	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 automotive industry-related accounts receivable balances. Approximately 64%, or $9.3 million, of gross accounts receivable at September 30, 2020, and approximately 46% of total revenues for the nine months ended September 30, 2020, are related to Urban Science Applications (which represents Acura, Honda, Nissan, Infiniti, Toyota and Volvo), Carat Detroit (General Motors), Ford Direct and Autodata Solutions. For 2019, approximately 30%, or $6.8 million, of gross accounts receivable at September 30, 2019, and approximately 24% of total revenues for the nine months ended September 30, 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 are amortized over the following estimated useful lives:

		September 30, 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	$	(15,831	)	$	758	$	16,589	$	(15,442	)	$	1,147
Customer relationships	2 - 5 years		19,563		(19,563	)		—		19,563		(18,800	)		763
Developed technology	5 - 7 years		8,955		(6,778	)		2,177		8,955		(5,961	)		2,994
		$	45,107	$	(42,172	)	$	2,935	$	45,107	$	(40,203	)	$	4,904

		September 30, 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.  Total amortization expense was $0.4 million and $2.0 million for the three and nine months ended September 30, 2020, respectively. Amortization expense was $1.3 million and $4.0 million for the three and nine months ended September 30, 2019, respectively.

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

Year	Amortization Expense
2020	$	402
2021		1,499
2022		902
2023		86
2024		46
	$	2,935

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

	September 30, 2020		December 31, 2019
Accrued employee-related benefits	$	2,071	$	1,004
Other accrued expenses and other current liabilities:
Other accrued expenses		507		1,264
Amounts due to customers		168		355
Other current liabilities		294		696
Total other accrued expenses and other current liabilities		969		2,315
Total accrued expenses and other current liabilities	$	3,040	$	3,319

Convertible Notes Payable.  In connection with the acquisition of AutoUSA 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 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.