Selected Balance Sheet Accounts

6 Months Ended

Jun. 30, 2021

Selected Balance Sheet Accounts

NOTE 7 - Selected Balance Sheet Accounts

 7. Selected Balance Sheet Accounts

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

	June 30, 2021			December 31, 2020
Computer software and hardware	$	4,965		$	4,940
Capitalized internal use software		7,457			7,391
Furniture and equipment		1,105			935
Leasehold improvements		883			884
Capital projects-in-progress		1,588			805
		15,998			14,955
Less—Accumulated depreciation and amortization		(12,461	)		(12,002	)
Property and equipment, net	$	3,537		$	2,953

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 64%, or $9.7 million, of gross accounts receivable at June 30, 2021, and approximately 46% of total revenues for the six months ended June 30, 2021, are related to Urban Science Applications (which represents Acura, Honda, Subaru, and Volvo), Carat Detroit (General Motors), Ford Direct and Autodata Solutions. For 2020, 60%, or $8.9 million, of gross accounts receivable at June 30, 2020, and approximately 45% of total revenues for the six months ended June 30, 2020, are related to Urban Science Applications, Carat Detroit, Ford Direct and Autodata Solutions.

On May 24, 2021, the Company received written notice from Direct Dealer LLC dba (“FordDirect”) that FordDirect decided to suspend its new vehicle lead marketing program for the near future and notified the Company that FordDirect was terminating its new vehicle leads program with the Company effective September 30, 2021. On June 11, 2021, the Company and FordDirect agreed to amend the Lead Agreement dated December 1, 2020, between the Company and FordDirect to provide for an early termination of the new vehicle leads program, with the early termination being effective June 30, 2021, in exchange for a lump sum payment of approximately $0.5 million from FordDirect to the Company.

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:

	Estimated	June 30, 2021							December 31, 2020
Definite-lived Intangible Asset	Useful Life	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Trademarks/ trade names/ licenses/ domains	3 - 7 years	$	16,589	$	(16,221	)	$	368	$	16,589	$	(15,961	)	$	628
Developed technology	5 - 7 years		8,955		(7,594	)		1,361		8,955		(7,050	)		1,905
		$	25,544	$	23,815		$	1,729	$	25,544	$	(23,011	)	$	2,533

	Estimated	June 30, 2021						December 31, 2020
Definite-lived Intangible Asset	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 Consolidated Condensed Statements of Operations. Total amortization expense was $0.4 million and $0.8 million for the three and six months ended June 30, 2021, respectively. Amortization expense was $0.7 million and $1.6 million for the three and six months ended June 30, 2020, respectively.

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

Year	Amortization Expense
2021 (remaining 6 months)	$	695
2022		902
2023		86
2024		46
	$	1,729

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

	June 30, 2021		December 31, 2020
Accrued employee-related benefits	$	2,025	$	2,123
Other accrued expenses and other current liabilities:
Other accrued expenses		552		143
Amounts due to customers		82		94
Other current liabilities		311		301
Total other accrued expenses and other current liabilities		945		538
Total accrued expenses and other current liabilities	$	2,970	$	2,661