Note 7 - Selected Balance Sheet Accounts

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Additional Financial Information Disclosure [Text Block]

7.         Selected Balance Sheet Accounts

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

	March 31, 2022			December 31, 2021
Computer software and hardware	$	5,027		$	5,008
Capitalized internal use software		8,378			8,362
Furniture and equipment		1,105			1,105
Leasehold improvements		883			883
Construction in progress		1,766			1,478
		17,159			16,836
Less—Accumulated depreciation and amortization		(13,259	)		(12,983	)
Property and Equipment, net	$	3,900		$	3,853

Intangible Assets, net.  Intangible assets, net consisted of the following (in thousands):

					March 31, 2022							December 31, 2021
Definite-Lived Intangible Asset	Estimated Useful Life (Years)				Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Trademarks/trade names/licenses/ domains		3	–	7	$	16,589	$	(16,393	)	$	196	$	16,589	$	(16,372	)	$	217
Developed technology		5	–	7		8,955		(8,411	)		544		8,955		(8,138	)		817
					$	25,544	$	(24,804	)	$	740	$	25,544	$	(24,510	)	$	1,034

		March 31, 2022						December 31, 2021
Indefinite-Lived Intangible Asset	Estimated Useful Life	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Domain	Indefinite	$	2,600	$	—	$	2,600	$	2,600	$	—	$	2,600

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

Amortization expense is included in “Cost of revenues – lead generation and digital advertising” and “Depreciation and amortization” in the Unaudited Condensed Consolidated Statements of Operations. Amortization expense was $0.3 million and $0.4 million for the three months ended March 31, 2022, and 2021, respectively.

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

Year	Amortization Expense
2022 (remaining nine months)	$	609
2023		86
2024		45
	$	740

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

	March 31, 2022		December 31, 2021
Accrued employee-related benefits	$	1,517	$	1,782
Other accrued expenses and other current liabilities:
Other accrued expenses		289		201
Amounts due to customers		64		77
Other current liabilities		364		332
Total other accrued expenses and other current liabilities		717		610
Total accrued expenses and other current liabilities	$	2,234	$	2,392

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 53%, or $5.8 million, of gross accounts receivable at March 31, 2022, and approximately 30% of total revenues for the quarter ended March 31, 2022, are related to Autodata Solutions, Urban Science Applications (which represents several Manufacturer programs) and Carat Detroit (which represents General Motors).

	% of			% of
Customers	Revenue			Accounts Receivable
Autodata Solutions		9	%		19	%
Urban Science Applications		11	%		18	%
Carat Detroit		10	%		16	%
Total		30	%		53	%

During 2021, approximately 59%, or $8.3 million, of gross accounts receivable at March 31, 2021, and approximately 41% of total revenues for the quarter ended March 31, 2021, are related to Urban Science Applications, Carat, Autodata Solutions and Ford Direct.

	% of			% of
Customers	Revenue			Accounts Receivable
Carat Detroit		11	%		17	%
Urban Science Applications		10	%		16	%
Autodata Solutions		10	%		16	%
Ford Direct		10	%		10	%
Total		41	%		59	%