10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                              .

Commission File Number 001-12917

REIS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	13-3926898
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
530 Fifth Avenue, New York, NY	10036
(Address of Principal Executive Offices)	(Zip Code)

(212) 921-1122

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes þ     No ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).   Yes þ      No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨              Accelerated filer þ                                     Non-accelerated filer ¨                            Smaller reporting company ¨
	(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes ¨     No þ

The number of the Registrant’s shares of common stock outstanding was 11,101,665 as of April 25, 2014.

TABLE OF CONTENTS

		Page Number
PART I. FINANCIAL INFORMATION:
Item 1.	Financial Statements
	Consolidated Balance Sheets at March 31, 2014 (unaudited) and December 31, 2013	3
	Consolidated Statements of Operations (unaudited) For the Three Months Ended March 31, 2014 and 2013	4
	Consolidated Statement of Changes in Stockholders’ Equity (unaudited) For the Three Months Ended March 31, 2014	5
	Consolidated Statements of Cash Flows (unaudited) For the Three Months Ended March 31, 2014 and 2013	6
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
PART II. OTHER INFORMATION:
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	32
Signatures		33

2

Part I. Financial Information

Item 1.  Financial Statements.

REIS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	March 31,       2014		December 31,       2013
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	15,787,761	$	10,559,899
Restricted cash and investments		216,835		216,702
Accounts receivable, net		5,124,171		11,386,584
Prepaid and other assets		2,173,767		2,787,909
Assets attributable to discontinued operations		3,500		8,500
Total current assets		23,306,034		24,959,594
Furniture, fixtures and equipment, net of accumulated depreciation of $1,962,094 and $1,905,933, respectively		864,761		853,377
Intangible assets, net of accumulated amortization of $29,917,266 and $28,764,189, respectively		15,612,310		15,687,117
Deferred tax asset, non-current portion, net		21,586,520		21,316,520
Goodwill		54,824,648		54,824,648
Other assets		204,095		225,528
Total assets	$	116,398,368	$	117,866,784
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of debt	$	—	$	—
Accrued expenses and other liabilities		1,991,795		3,578,227
Liability for option cancellations		123,713		268,341
Deferred revenue		19,251,022		20,284,178
Liabilities attributable to discontinued operations		507,352		342,138
Total current liabilities		21,873,882		24,472,884
Other long-term liabilities		536,456		522,941
Total liabilities		22,410,338		24,995,825
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.02 par value per share, 101,000,000 shares authorized, 11,101,665 and 10,916,441 shares issued and outstanding, respectively		222,032		218,328
Additional paid in capital		103,161,958		102,717,693
Retained earnings (deficit)		(9,395,960)		(10,065,062)
Total stockholders’ equity		93,988,030		92,870,959
Total liabilities and stockholders’ equity	$	116,398,368	$	117,866,784

See Notes to Consolidated Financial Statements

3

REIS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended        March  31,
	2014		2013
Subscription revenue	$	9,946,045	$	8,234,328
Cost of sales of subscription revenue		1,916,345		1,681,404
Gross profit		8,029,700		6,552,924
Operating expenses:
Sales and marketing		2,552,020		1,968,966
Product development		763,103		721,566
General and administrative expenses		3,037,442		3,169,311
Total operating expenses		6,352,565		5,859,843
Other income (expenses):
Interest and other income		3,058		2,198
Interest expense		(28,213)		(28,213)
Total other income (expenses)		(25,155)		(26,015)
Income before income taxes and discontinued operations		1,651,980		667,066
Income tax expense		605,000		265,000
Income from continuing operations		1,046,980		402,066
(Loss) from discontinued operations, net of income tax (benefit) of $(235,000) and $(99,000), respectively		(377,878)		(151,632)
Net income	$	669,102	$	250,434
Per share amounts – basic:
Income from continuing operations	$	0.10	$	0.04
Net income	$	0.06	$	0.02
Per share amounts – diluted:
Income from continuing operations	$	0.09	$	0.04
Net income	$	0.06	$	0.02
Weighted average number of common shares outstanding:
Basic		10,978,716		10,828,396
Diluted		11,463,330		11,347,751

See Notes to Consolidated Financial Statements

4

REIS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2014

(Unaudited)

							Retained		Total
	Common Shares				Paid in		Earnings		Stockholders’
	Shares		Amount		Capital		(Deficit)		Equity
Balance, January 1, 2014		10,916,441	$	218,328	$	102,717,693	$	(10,065,062)	$	92,870,959
Shares issued for vested employees restricted stock units		144,660		2,893		(2,893)		—		—
Shares issued for settlement of vested director restricted stock units		40,564		811		(811)		—		—
Stock based compensation		—		—		447,969		—		447,969
Net income		—		—		—		669,102		669,102
Balance, March 31, 2014		11,101,665	$	222,032	$	103,161,958	$	(9,395,960)	$	93,988,030

See Notes to Consolidated Financial Statements

5

REIS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Three Months Ended           March 31,
	2014		2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	669,102	$	250,434
Adjustments to reconcile to net cash provided by operating activities:
Deferred tax provision		370,000		166,000
Depreciation		91,760		78,496
Amortization of intangible assets		1,153,077		1,134,764
Stock based compensation charges		447,969		491,521
Changes in assets and liabilities:
Restricted cash and investments		(133)		(160)
Accounts receivable, net		6,262,413		4,757,092
Prepaid and other assets		575		(53,521)
Accrued expenses and other liabilities		(1,407,703)		(1,546,853)
Liability for option cancellations		(12,850)		88,974
Deferred revenue		(1,033,156)		(1,350,660)
Net cash provided by operating activities		6,541,054		4,016,087
CASH FLOWS FROM INVESTING ACTIVITIES:
Web site and database development costs		(1,078,270)		(1,086,475)
Furniture, fixtures and equipment additions		(103,144)		(122,084)
Cash (used in) investing activities		(1,181,414)		(1,208,559)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for option cancellations and restricted stock units		(131,778)		(1,109,475)
Cash (used in) financing activities		(131,778)		(1,109,475)
Net increase in cash and cash equivalents		5,227,862		1,698,053
Cash and cash equivalents, beginning of period		10,559,899		4,960,850
Cash and cash equivalents, end of period	$	15,787,761	$	6,658,903
SUPPLEMENTAL INFORMATION:
Cash paid during the period for interest	$	6,389	$	—
Cash paid during the period for income taxes, net of refunds	$	37,121	$	15,183
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Shares issued for vested employee restricted stock units	$	2,893	$	2,184
Shares issued for settlement of vested director restricted stock units	$	811
Disposal of fully depreciated furniture, fixtures and equipment	$	35,599	$	17,572

See Notes to Consolidated Financial Statements

6

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Organization and Business

Reis, Inc. is a Maryland corporation. Reis, Inc. and its consolidated subsidiaries (“Reis” or the “Company”) provides commercial real estate market information and analytical tools to real estate professionals, through its Reis Services subsidiary. For disclosure and financial reporting purposes, this business is referred to as the Reis Services segment.

Reis Services

Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietary database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the U.S. The database contains information on apartment, office, retail, warehouse/distribution, flex/research & development and self storage properties, and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition, Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associated with individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides its information services to many of the nation’s leading lending institutions, equity investors, brokers and appraisers.

The Company’s product portfolio features: Reis SE, its flagship delivery platform aimed at larger and mid-sized enterprises; ReisReports, aimed at prosumers and smaller enterprises; and Mobiuss Portfolio CRE, or Mobiuss, launched in early 2013 and aimed primarily at risk managers and credit administrators at banks and non-bank lending institutions. It is through these products that Reis provides online access to a proprietary database of commercial real estate information and analytical tools designed to facilitate debt and equity transactions as well as ongoing asset and portfolio evaluations. Depending on the product or level of entitlement, users have access to market trends and forecasts at metropolitan and neighborhood levels throughout the U.S. and/or detailed building-specific information such as rents, vacancy rates, lease terms, property sales, new construction listings and property valuation estimates. Reis’s products are designed to meet the demand for timely and accurate information to support the decision-making of property owners, developers, builders, banks and non-bank lenders, equity investors and service providers. These real estate professionals require access to timely information on both the performance and pricing of assets, including detailed data on market transactions, supply, absorption, rents and sale prices. This information is critical to all aspects of valuing assets and financing their acquisition, development and construction.

Discontinued Operations – Residential Development Activities

Prior to May 2007, the name of the Company was Wellsford Real Properties, Inc. (“Wellsford”). Wellsford, which was originally formed on January 8, 1997, acquired the Reis Services business by merger in May 2007 (the “Merger”). Wellsford’s primary operating activities immediately prior to the Merger, and conducted through its subsidiaries, were the development, construction and sale of three residential projects and its approximate 23% ownership interest in the Reis Services business. The Company completed the sale of the remaining units at its Colorado project in September 2009, sold its Claverack, New York project in bulk in February 2010, sold its remaining project in East Lyme, Connecticut in bulk in April 2011, and settled construction defect litigation at the aforementioned Colorado project in 2012.

See Note 3 for additional information regarding the Company’s segments.

2. Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries. Investments in entities where the Company does not have a controlling interest are accounted for under the equity method of accounting. These investments were initially recorded at cost and were subsequently adjusted for the Company’s proportionate share of the investment’s income (loss) and additional contributions or distributions. All inter-company accounts and transactions among the Company and its subsidiaries have been eliminated in consolidation.

7

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

Summary of Significant Accounting Policies (continued)

Quarterly Reporting

The accompanying consolidated financial statements and notes of the Company have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared under Generally Accepted Accounting Principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s balance sheets, statements of operations, statement of changes in stockholders’ equity and statements of cash flows have been included and are of a normal and recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013, as filed with the SEC on March 6, 2014. The consolidated statements of operations and changes in cash flows for the three months ended March 31, 2014 and 2013 are not necessarily indicative of full year results.

Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

From time to time, the Company has been, is or may in the future be a defendant in various legal actions arising in the normal course of business. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. The outcome of any litigation is uncertain; it is possible that a judgment in any legal actions to which the Company is a party, or which are proposed or threatened, will have a material adverse effect on the consolidated financial statements. See Note 11.

8

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

3. Segment Information

The Company is organized into two separately managed segments: the Reis Services segment and the discontinued Residential Development Activities segment. The following tables present condensed balance sheet and operating data for these segments:

(amounts in thousands)
Condensed Balance Sheet Data March 31, 2014	Reis            Services		Discontinued      Operations (A)		Other (B)		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	15,629	$	—	$	159	$	15,788
Restricted cash and investments		217		—		—		217
Accounts receivable, net		5,124		—		—		5,124
Prepaid and other assets		208		—		1,965		2,173
Assets attributable to discontinued operations		—		—		4		4
Total current assets		21,178		—		2,128		23,306
Furniture, fixtures and equipment, net		842		—		22		864
Intangible assets, net		15,612		—		—		15,612
Deferred tax asset, net		285		—		21,302		21,587
Goodwill		57,203		—		(2,378)		54,825
Other assets		204		—		—		204
Total assets	$	95,324	$	—	$	21,074	$	116,398
Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—	$	—	$	—
Accrued expenses and other liabilities		1,430		—		562		1,992
Liability for option cancellations		—		—		124		124
Deferred revenue		19,251		—		—		19,251
Liabilities attributable to discontinued operations		—		271		236		507
Total current liabilities		20,681		271		922		21,874
Other long-term liabilities		536		—		—		536
Deferred tax liability, net		20,031		—		(20,031)		—
Total liabilities		41,248		271		(19,109)		22,410
Total stockholders’ equity		54,076		(271)		40,183		93,988
Total liabilities and stockholders’ equity	$	95,324	$	—	$	21,074	$	116,398

  (A) Includes the assets and liabilities of the Company’s discontinued Residential Development Activities segment, to the extent that such assets and liabilities existed at the date presented.

  (B) Includes cash, other assets and liabilities not specifically attributable to or allocable to a specific operating segment.

9

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

Segment Information (continued)

(amounts in thousands)
Condensed Balance Sheet Data December 31, 2013	Reis            Services		Discontinued      Operations (A)		Other (B)		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	10,347	$	—	$	213	$	10,560
Restricted cash and investments		217		—		—		217
Accounts receivable, net		11,386		—		—		11,386
Prepaid and other assets		187		—		2,601		2,788
Assets attributable to discontinued operations		—		—		9		9
Total current assets		22,137		—		2,823		24,960
Furniture, fixtures and equipment, net		829		—		24		853
Intangible assets, net		15,687		—		—		15,687
Deferred tax asset, net		285		—		21,032		21,317
Goodwill		57,203		—		(2,378)		54,825
Other assets		225		—		—		225
Total assets	$	96,366	$	—	$	21,501	$	117,867
Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—	$	—	$	—
Accrued expenses and other liabilities		2,623		—		956		3,579
Liability for option cancellations		—		—		268		268
Deferred revenue		20,284		—		—		20,284
Liabilities attributable to discontinued operations		—		271		71		342
Total current liabilities		22,907		271		1,295		24,473
Other long-term liabilities		523		—		—		523
Deferred tax liability, net		18,957		—		(18,957)		—
Total liabilities		42,387		271		(17,662)		24,996
Total stockholders’ equity		53,979		(271)		39,163		92,871
Total liabilities and stockholders’ equity	$	96,366	$	—	$	21,501	$	117,867

  (A) Includes the assets and liabilities of the Company’s discontinued Residential Development Activities segment, to the extent that such assets and liabilities existed at the date presented.

  (B) Includes cash, other assets and liabilities not specifically attributable to or allocable to a specific operating segment.

10

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

Segment Information (continued)

(amounts in thousands)
Condensed Operating Data for the Three Months Ended March 31, 2014	Reis           Services		Discontinued       Operations (A)		Other (B)		Consolidated
Subscription revenue	$	9,946	$	—	$	—	$	9,946
Cost of sales of subscription revenue		1,916		—		—		1,916
Gross profit		8,030		—		—		8,030
Operating expenses:
Sales and marketing		2,552		—		—		2,552
Product development		763		—		—		763
General and administrative expenses		1,892		—		1,146		3,038
Total operating expenses		5,207		—		1,146		6,353
Other income (expenses):
Interest and other income		3		—		—		3
Interest expense		(28)		—		—		(28)
Total other income (expenses)		(25)		—		—		(25)
Income (loss) before income taxes and discontinued operations	$	2,798	$	—	$	(1,146)	$	1,652
(Loss) from discontinued operations, before income taxes	$	—	$	(28)	$	(585)	$	(613)

Condensed Operating Data for the Three Months Ended March 31, 2013	Reis           Services		Discontinued       Operations (A)		Other (B)		Consolidated
Subscription revenue	$	8,234	$	—	$	—	$	8,234
Cost of sales of subscription revenue		1,681		—		—		1,681
Gross profit		6,553		—		—		6,553
Operating expenses:
Sales and marketing		1,969		—		—		1,969
Product development		722		—		—		722
General and administrative expenses		1,796		—		1,373		3,169
Total operating expenses		4,487		—		1,373		5,860
Other income (expenses):
Interest and other income		2		—		—		2
Interest expense		(28)		—		—		(28)
Total other income (expenses)		(26)		—		—		(26)
Income (loss) before income taxes and discontinued operations	$	2,040	$	—	$	(1,373)	$	667
(Loss) from discontinued operations, before income taxes	$	—	$	—	$	(251)	$	(251)

  (A) Includes the results of the Company’s discontinued Residential Development Activities segment, to the extent that such operations existed during the periods presented.

  (B) Includes interest and other income, depreciation expense and general and administrative expenses that have not been allocated to the operating segments.

11

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

Segment Information (continued)

Reis Services

See Note 1 for a description of Reis Services’s business and products at March 31, 2014.

The Company’s largest individual subscriber accounted for 3.0% and 3.6% of Reis Services’s revenue for the three months ended March 31, 2014 and 2013, respectively.

The balance of outstanding accounts receivables of Reis Services at March 31, 2014 and December 31, 2013 follows:

	March 31,        2014		December 31,    2013
Accounts receivables	$	5,223,000	$	11,465,000
Allowance for doubtful accounts		(99,000)		(79,000)
Accounts receivables, net	$	5,124,000	$	11,386,000

Ten subscribers accounted for an aggregate of approximately 38.7% of Reis Services’s accounts receivable at March 31, 2014, including six subscribers in excess of 4.0% with the largest representing 4.9%. Through April 28, 2014, the Company received payments of approximately $2,682,000 or 51.3% against the March 31, 2014 accounts receivable balance.

At March 31, 2014, the largest individual subscriber accounted for 4.6% of deferred revenue.

Discontinued Operations – Residential Development Activities

(Loss) from discontinued operations is comprised of the following:

	For the Three Months Ended March 31,
	2014		2013
Litigation charge, net of recoveries (see Note 11)	$	—	$	—
Other income (expense), net		(613,000)		(251,000)
(Loss) from discontinued operations before income tax		(613,000)		(251,000)
Income tax (benefit) from discontinued operations		(235,000)		(99,000)
(Loss) from discontinued operations, net of income tax (benefit)	$	(378,000)	$	(152,000)

In September 2009, the Company sold the final unit at Gold Peak, the final phase of Palomino Park, a five phase multifamily residential development in Highlands Ranch, Colorado. Gold Peak was a 259 unit condominium project on the remaining 29 acre land parcel at Palomino Park. On March 13, 2012, in connection with litigation regarding construction defects at the Gold Peak project, a jury rendered its verdict, whereby Reis, one of its subsidiaries (Gold Peak at Palomino Park LLC, the developer of the project (“GP LLC”)), and the construction manager/general contractor for the project (Tri-Star Construction West, LLC (“Tri-Star”)) were found jointly and severally liable for an aggregate of $18,200,000, plus other costs of approximately $756,000. On June 20, 2012, following denial of all of the defendants’ post-trial motions, Reis and its subsidiaries reached a settlement with the plaintiff, the Gold Peak homeowners association, providing for a total payment of $17,000,000. Of this amount, $5,000,000 was paid on August 3, 2012 and the remaining $12,000,000 was paid on October 15, 2012, in accordance with the settlement terms. During the three months ended March 31, 2014 and 2013, the Company did not recover any amounts from other potentially responsible parties. For additional information pertaining to the Gold Peak litigation, see Note 11.

4. Restricted Cash and Investments

Restricted cash and investments represents a security deposit for the 530 Fifth Avenue corporate office space. The Company provided the lessor a bank-issued letter of credit, which is fully collateralized by a certificate of deposit issued by that bank. The restricted cash balance was approximately $217,000 at March 31, 2014 and December 31, 2013.

12

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

5. Intangible Assets

The amount of identified intangible assets, including the respective amounts of accumulated amortization, are as follows:

	March 31,           2014		December 31,         2013
Database	$	17,745,000	$	17,149,000
Accumulated amortization		(13,651,000)		(13,238,000)
Database, net		4,094,000		3,911,000
Customer relationships		14,100,000		14,100,000
Accumulated amortization		(6,658,000)		(6,417,000)
Customer relationships, net		7,442,000		7,683,000
Web site		10,884,000		10,402,000
Accumulated amortization		(7,518,000)		(7,095,000)
Web site, net		3,366,000		3,307,000
Acquired below market lease		2,800,000		2,800,000
Accumulated amortization		(2,090,000)		(2,014,000)
Acquired below market lease, net		710,000		786,000
Intangibles, net	$	15,612,000	$	15,687,000

The Company capitalized approximately $596,000 and $528,000 to the database intangible asset and $482,000 and $558,000 to the web site intangible asset during the three months ended March 31, 2014 and 2013, respectively.

Amortization expense for intangible assets aggregated approximately $1,153,000 for the three months ended March 31, 2014, of which approximately $413,000 related to the database, which is charged to cost of sales, approximately $241,000 related to customer relationships, which is charged to sales and marketing expense, approximately $423,000, related to web site development, which is charged to product development expense, and approximately $76,000 related to the value ascribed to the below market terms of the office lease, which is charged to general and administrative expense, all in the Reis Services segment. Amortization expense for intangible assets aggregated approximately $1,135,000 for the three months ended March 31, 2013, of which approximately $366,000 related to the database, approximately $244,000 related to customer relationships, approximately $449,000 related to web site development, and approximately $76,000 related to the value ascribed to the below market terms of the office lease.

6. Debt

The Company had no debt outstanding at March 31, 2014 and December 31, 2013.

In October 2012, Reis Services, as borrower, and the Company, as guarantor, entered into a loan and security agreement with Capital One, National Association, as lender, for a $10,000,000 revolving credit facility (the “Revolver”). The Revolver has a three year term expiring on October 16, 2015, and any borrowings bear interest at a rate of LIBOR + 2.00% per annum (for LIBOR loans) or the greater of 1.00% or the bank’s prime rate minus 0.50% per annum (for base rate loans) and is subject to an unused facility fee of 0.25% per annum. The Company paid a commitment fee of $50,000 in connection with the closing. The Revolver is secured by a security interest in substantially all of the tangible and intangible assets of Reis Services and a pledge by the Company of its membership interests in Reis Services. The Revolver also contains customary affirmative and negative covenants, including minimum financial covenants, as defined in the agreement; all of the covenants were met at March 31, 2014 and December 31, 2013. No borrowings were made on the Revolver during the three months ended March 31, 2014 or the year ended December 31, 2013.

13

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

7. Income Taxes

The components of the income tax expense (benefit) are as follows:

	For the Three Months Ended March 31,
	2014		2013
Current Federal alternative minimum tax (“AMT”) expense	$	—	$	—
Current state and local tax expense		—		—
Deferred Federal tax expense		366,000		138,000
Deferred state and local tax expense		4,000		28,000
Consolidated income tax expense, including taxes attributable to discontinued operations (A)		370,000		166,000
Less income tax (benefit) attributable to discontinued operations		(235,000)		(99,000)
Income tax expense (B)	$	605,000	$	265,000

(A) Includes income taxes attributable to income (loss) from discontinued operations.

(B) Reflects the tax expense from continuing operations as reported on the consolidated statements of income for the period presented.

During the three months ended March 31, 2014, New York State enacted a law to reduce corporate tax rates, effective in future years. As a consequence, the Company evaluated all elements affecting the balance of its net deferred tax assets, including the availability of New York State and New York City net operating loss carryforwards and this change in the law in New York State. The impact of this evaluation resulted in a net increase in the deferred tax asset of $29,000 during the three months ended March 31, 2014.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net deferred tax asset was approximately $23,419,000 and $23,789,000 at March 31, 2014 and December 31, 2013, respectively, of which $1,832,000 and $2,472,000 is reflected as a net current asset in prepaid and other assets and $21,587,000 and $21,317,000 is reflected separately as a net non-current asset in the accompanying consolidated balance sheets. The significant portion of the deferred tax items primarily relates to: (1) NOL carryforwards; (2) Federal AMT credit carryforwards; and (3) stock based compensation, all as they relate to deferred tax assets; and (4) the deferred tax liability resulting from the intangible assets recorded at the time of the Merger.

The Company has aggregate Federal, state and local NOL carryforwards aggregating approximately $66,006,000 at December 31, 2013. These NOLs include NOLs generated subsequent to the Merger, losses from the Reis Services business prior to the Merger, losses obtained from the Company’s 1998 merger with Value Property Trust (“VLP”) and the Company’s operating losses prior to the Merger. Approximately $25,158,000 of these Federal NOLs are subject to an annual limitation, whereas the remaining balance of approximately $40,848,000 is not subject to such a limitation. There is an annual limitation on the use of NOLs after an ownership change, pursuant to Section 382 of the Internal Revenue Code. As a result of the Merger, the Company experienced such an ownership change which resulted in a new annual limitation of $2,779,000. However, because of the accumulation of annual limitations, it is expected that the use of NOLs will not be limited by expiration. The New York State law discussed above limits the amount of existing NOL’s which could be used each year in that state; however, all such losses are expected to be utilized in the future.

A valuation allowance is required to reduce deferred tax assets if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As a result of management’s current evaluation of the Company’s future operations, it has been determined that no valuation allowance was necessary at March 31, 2014 or December 31, 2013.

8. Stockholders’ Equity

Between December 2008 and August 2011, the Company’s Board of Directors (the “Board”) authorized the repurchase of up to an aggregate amount of $5,000,000 of the Company’s common stock, of which approximately $551,000 remained available for repurchases as of December 31, 2013. Although the Company has remaining availability under a prior authorization, such authorization was at a time when the Company’s stock price and cash position were significantly different than where they were

14

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

Stockholders’ Equity (continued)

at December 31, 2013. As a result, management would probably seek a new authorization from the Board if the Company were to consider stock repurchases in the future. During the three months ended March 31, 2014 and 2013, the Company did not repurchase any shares of common stock.

The Company did not declare or distribute any dividends during the three months ended March 31, 2014 and 2013.

9. Stock Plans and Other Incentives

The Company has adopted certain incentive plans for the purpose of attracting and retaining the Company’s directors, officers and employees by having the ability to issue options, restricted stock units (“RSUs”), or stock awards. Awards granted under the Company’s incentive plans expire ten years from the date of grant and vest over periods ranging generally from three to five years for employees.

Option Awards

The following table presents option activity and other plan data for the three months ended March 31, 2014 and 2013:

	For the Three  Months Ended March 31,
	2014				2013
	Options		Weighted- Average Exercise Price		Options		Weighted- Average Exercise Price
Outstanding at beginning of period		627,724	$	9.05		645,448	$	8.94
Granted		—	$	—		—	$	—
Exercised		—	$	—		—	$	—
Cancelled through cash settlement		(8,862)	$	(4.09)		—	$	—
Forfeited/cancelled/expired		—	$	—		—	$	—
Outstanding at end of period		618,862	$	9.12		645,448	$	8.94
Options exercisable at end of period		618,862	$	9.12		420,488	$	9.43
Options exercisable which can be settled in cash		8,862	$	4.09		35,448	$	4.67

Certain outstanding options allow the option holder to receive from the Company, in cancellation of the holder’s option, a cash payment with respect to each cancelled option equal to the amount, if any, by which the fair market value of the share of stock underlying the option exceeds the exercise price of such option. The Company accounts for these options as liability awards. This liability is adjusted at the end of each reporting period to reflect: (1) the net cash payments to option holders made during each period; (2) the impact of the exercise and expiration of options; and (3) changes in the market price of the Company’s common stock. Changes in the settlement value of option awards treated under the liability method are reflected as income or expense in the statements of operations.

At March 31, 2014, the liability for option cancellations was approximately $124,000 based upon the difference in the closing stock price of the Company’s common stock at March 31, 2014 of $18.05 per share and the individual exercise prices of the outstanding 8,862 “in-the-money” options that were accounted for as a liability award at that date. At December 31, 2013, the liability for option cancellations was approximately $268,000 based upon the difference in the closing stock price of the Company at December 31, 2013 of $19.23 per share and the individual exercise prices of the outstanding 17,724 “in-the-money” options that were accounted for as a liability award at that date. The Company recorded a compensation (benefit) expense of approximately $(13,000) and $89,000 for the three months ended March 31, 2014 and 2013, respectively, in general and administrative expenses in the consolidated statements of operations related to the respective changes in the amount of the liability for option cancellations.

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REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

Stock Plans and Other Incentives (continued)

RSU Awards

The following table presents the changes in RSUs outstanding for the three months ended March 31, 2014 and 2013:

	For the Three Months Ended         March 31,
	2014		2013
Outstanding at beginning of period		365,686		469,848
Granted		93,225		94,884
Common stock delivered (A)		(185,224)		(180,074)
Forfeited		(7,345)		(1,800)
Outstanding at end of period		266,342		382,858
Intrinsic value (B)	$	4,807,000	$	5,950,000
(A)   In the 2014 period, all of the vested RSUs were issued as shares. The 2013 period includes 70,897 shares which were used to settle minimum employee withholding tax obligations for 16 employees of approximately $1,109,000. A net of 109,177 shares of common stock were delivered in the first quarter of 2013. (B)   For purposes of this calculation, the Company’s closing stock prices were $18.05 and $15.54 per share on March 31, 2014 and 2013, respectively.

In February 2014, an aggregate of 91,431 RSUs were granted to employees, which RSUs vest one-third a year over three years and had a grant date fair value of $18.13 per RSU (which was determined based on the closing stock price of the Company’s common stock on the applicable date of grant). In February 2013, an aggregate of 91,356 RSUs were granted to employees, which RSUs vest one-third a year over three years and had a grant date fair value of $16.20 per RSU (which was determined based on the closing stock price of the Company’s common stock on the applicable date of grant). The awards granted to employees in the first quarter of 2014 and 2013 are treated as equity awards and the grant date fair value is charged to compensation expense at the corporate level on a straight-line basis over the vesting periods.

In January 2014, an aggregate of 1,794 RSUs were granted to non-employee directors (with a grant date fair value of $19.23 per RSU) related to the equity component of their compensation. In January 2013, an aggregate of 3,528 RSUs were granted to non-employee directors (with an average grant date fair value of $13.03 per RSU) related to the equity component of their compensation. In each case, the grant date fair value was determined as of the last trading day of the quarter for which the RSUs were being received as compensation. The RSUs are immediately vested, but are not deliverable to non-employee directors until six months after termination of their service as a director.

Option and RSU Expense Information

The Company recorded non-cash compensation expense of approximately $448,000 and $492,000, including $34,500 and $46,000 related to non-employee director equity compensation, for the three months ended March 31, 2014 and 2013, respectively, related to all stock options and RSUs accounted for as equity awards, as a component of general and administrative expenses in the statements of operations.

10. Earnings Per Common Share

Basic earnings per common share is computed based upon the weighted average number of common shares outstanding during the period. Diluted earnings per common share is based upon the increased number of common shares that would be outstanding assuming the exercise of dilutive common share options and the consideration of restricted stock awards. The following table details the computation of earnings per common share, basic and diluted:

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REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

Earnings Per Common Share (continued)

	For the Three Months Ended March 31,
	2014		2013
Numerator for basic per share calculation:
Income from continuing operations for basic calculation	$	1,046,980	$	402,066
(Loss) from discontinued operations, net of income tax (benefit)		(377,878)		(151,632)
Net income for basic calculation	$	669,102	$	250,434
Numerator for diluted per share calculation:
Income from continuing operations	$	1,046,980	$	402,066
Adjustments to income from continuing operations for the income statement impact of dilutive securities		(12,850)		—
Income from continuing operations for dilution calculation		1,034,130		402,066
(Loss) from discontinued operations, net of income tax (benefit)		(377,878)		(151,632)
Net income for dilution calculation	$	656,252	$	250,434
Denominator:
Weighted average common shares – basic		10,978,716		10,828,396
Effect of dilutive securities:
RSUs		174,938		292,981
Stock options		309,676		226,374
Weighted average common shares – diluted		11,463,330		11,347,751
Per common share amounts – basic:
Income from continuing operations	$	0.10	$	0.04
(Loss) from discontinued operations		(0.04)		(0.02)
Net income	$	0.06	$	0.02
Per common share amounts – diluted:
Income from continuing operations	$	0.09	$	0.04
(Loss) from discontinued operations		(0.03)		(0.02)
Net income	$	0.06	$	0.02

Potentially dilutive securities include all stock based awards. For the three months ended March 31, 2014, only certain equity awards were antidilutive. For the three months ended March 31, 2013, certain equity awards and option awards accounted for under the liability method, were antidilutive.

11. Commitments and Contingencies

From time to time, the Company has been, is or may in the future be a defendant in various legal actions arising in the normal course of business. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated.

Reis has purchased insurance with respect to construction defect and completed operations at its past real estate projects. Reis has, from time to time, been exposed to various claims associated with the development, construction and sale of condominium units, single family homes or lots. Claims related to dissatisfaction by homeowners and homeowners associations with the construction of condominiums, homes and amenities by us and/or our developer partners in any condominium or subdivision development, or other matters, may result in litigation costs, remediation costs, warranty expenses or settlement costs which could be material to the Company’s reportable discontinued operating income (loss), or its consolidated financial position or cash flows. It would not have any effect on the Company’s income from continuing operations.

Reis, Inc. and two of its subsidiaries (GP LLC and Wellsford Park Highlands Corp. (“WPHC”)) were the subject of a suit brought by the homeowners association at the Company’s former 259-unit Gold Peak condominium project outside of Denver, Colorado. This suit was filed in District Court in Douglas County, Colorado on October 19, 2010, seeking monetary damages (not quantified at the time) relating to design and construction defects at the Gold Peak project. Tri-Star, the construction manager/general contractor for the project (not affiliated with Reis) and two former senior officers of Reis, Inc. (Jeffrey H. Lynford, who was also

17

REIS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) (continued)

Commitments and Contingencies (continued)

previously a director of the Company, and David M. Strong) were also named as defendants in the suit. In October 2011, experts for the plaintiff delivered a report alleging a cost to repair of approximately $19,000,000. Trial commenced on February 21, 2012 and a jury rendered its verdict on March 13, 2012 finding Reis, GP LLC and Tri-Star jointly and severally liable for an aggregate of $18,200,000, plus other costs of approximately $756,000.

As of December 31, 2011, based on the best available information at that time, the Company recorded a charge of approximately $4,460,000 in discontinued operations, representing the low end of the Company’s expected range of net exposure. This amount reflected an aggregate minimum liability of approximately $7,740,000, less the then minimum expected insurance recovery of $3,000,000 and other previously reserved amounts. At March 31, 2012, as a result of the verdict, the Company recorded an additional charge of $14,216,000 in discontinued operations in the first quarter of 2012, to bring the Company’s liability up to the $18,200,000 judgment, plus other costs of approximately $756,000. As of March 31, 2012, the Company, in accordance with the applicable accounting literature, could no longer conclude that $3,000,000 of insurance was probable of being recovered. These charges were reflected in discontinued operations and negatively impacted consolidated net income (loss), but did not impact income from continuing operations.

On June 20, 2012, following denial of all of the defendants’ post-trial motions, Reis, GP LLC and WPHC reached a settlement with the plaintiff, the Gold Peak homeowners association, providing for a total payment of $17,000,000. Of this amount, $5,000,000 was paid on August 3, 2012 and the remaining $12,000,000 was paid on October 15, 2012, in accordance with the settlement terms. In reaching the decision to settle, Reis’s management and Board considered, among other factors: (1) the amount of the settlement versus the potential for an ultimately greater judgment after appeal, including additional costs and post-judgment interest; (2) the benefits of the clarity of settling the case at this time versus continuing uncertainty; and (3) the strong cash flow generation of Reis Services’s core business. As a result of the settlement, in the second quarter of 2012 the Company reversed $1,956,000 of the previously recorded charge. In December 2012, the Company recovered $712,500, which offset a portion of the previously recorded charge, resulting in the net litigation charge for the year ended December 31, 2012 of approximately $11,547,000. During the year ended December 31, 2013, the Company recovered $80,000.

In connection with the development of Gold Peak, the Company purchased a commercial general liability “WRAP” insurance policy from a predecessor of ACE Westchester (“ACE”) covering the Company (including its subsidiaries) and its former officers, Tri-Star and Tri-Star’s subcontractors. The Company, upon advice of counsel and based on a reading of the policy, has taken the position that a total of $9,000,000 (and possibly $12,000,000) of coverage is available for this claim. ACE has taken the position that only $3,000,000 of coverage (including defense costs) was provided. The Company has filed suit against ACE in District Court in Douglas County, Colorado on January 18, 2012, alleging failure to cover this claim, bad faith and other related causes of action. In particular, the Gold Peak litigation could have been settled for $12,000,000 or less prior to the trial. The Company takes the position that ACE is liable for all damages stemming from this failure to engage and settle. Additionally, the Company has claims against multiple additional insurance companies under policies maintained by the Company, including Reis’s directors’ and officers’ insurance policy, and against Reis’s former insurance broker. Trial in this comprehensive insurance action was scheduled for June 2014; however, at the request of the defendants, the court granted a continuance on April 14, 2014 and a new trial date has not been set. The Company has also brought separate claims against Tri-Star, the subcontractors, the architect and a third party inspector engaged at Gold Peak, relating to those parties’ actions on the project. A trial for these actions is scheduled for October 2015.

Reis continues to consider its options with respect to contribution or other actions against potentially responsible third parties and/or co-defendants in the lawsuit, and will pursue all reasonable efforts to mitigate the effects of this settlement. There is no assurance that the Company will be successful in these additional recovery efforts.

The Company is not a party to any other litigation that could reasonably be foreseen to be material to the Company.

12. Fair Value of Financial Instruments

At March 31, 2014 and December 31, 2013, the Company’s financial instruments included receivables, payables, accrued expenses, other liabilities and debt. The fair values of these financial instruments, excluding debt, were not materially different from their recorded values at March 31, 2014 and December 31, 2013. The Company had no debt outstanding at March 31, 2014 and December 31, 2013. See Note 6 for additional information about the Company’s debt.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this quarterly report on Form 10-Q.

Organization and Business

Reis, Inc. is a Maryland corporation. When we refer to “Reis” or the “Company,” we are referring to Reis, Inc. and its consolidated subsidiaries. The Company provides commercial real estate market information and analytical tools to real estate professionals, through its Reis Services subsidiary. For disclosure and financial reporting purposes, this business is referred to as the Reis Services segment.

Reis Services

Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietary database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the U.S. The database contains information on apartment, office, retail, warehouse/distribution, flex/research & development and self storage properties, and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition, Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associated with individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides its information services to many of the nation’s leading lending institutions, equity investors, brokers and appraisers.

Product Overview

The Company’s product portfolio features: Reis SE, its flagship delivery platform aimed at larger and mid-sized enterprises; ReisReports, aimed at prosumers and smaller enterprises; and Mobiuss Portfolio CRE, or Mobiuss, launched in early 2013 and aimed primarily at risk managers and credit administrators at banks and non-bank lending institutions. It is through these products that Reis provides online access to a proprietary database of commercial real estate information and analytical tools designed to facilitate debt and equity transactions as well as ongoing asset and portfolio evaluations. Depending on the product or level of entitlement, users have access to market trends and forecasts at metropolitan and neighborhood levels throughout the U.S. and/or detailed building-specific information such as rents, vacancy rates, lease terms, property sales, new construction listings and property valuation estimates. Reis’s products are designed to meet the demand for timely and accurate information to support the decision-making of property owners, developers, builders, banks and non-bank lenders, equity investors and service providers. These real estate professionals require access to timely information on both the performance and pricing of assets, including detailed data on market transactions, supply, absorption, rents and sale prices. This information is critical to all aspects of valuing assets and financing their acquisition, development and construction.

Operations

As commercial real estate markets grow in size and complexity, Reis continues to invest in the databases, technologies, intellectual capital and personnel critical to supporting the information needs of commercial real estate professionals. Specifically, Reis has:

• developed expertise in data collection across multiple markets and property types;

• invested in the analytical expertise to develop decision support systems that generate market trends and forecasts, property valuations, credit analytics, transaction support and risk management;

• created product development expertise to collect market feedback and translate it into new products and reports; and

• invested in a robust technology infrastructure to disseminate these tools to the wide variety of market participants.

These investments have established Reis as a leading provider of commercial real estate information and analytical tools to the investment community. Reis continues to develop and introduce new products, expand and add new markets and data, and find new ways to deliver existing information to meet client demand, as more fully described below under “— Products and Services.” The depth and breadth of Reis’s data and expertise are critical in allowing Reis to grow its business.

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Proprietary Databases

Reis develops and maintains three highly curated, proprietary databases which include information on property performance, new construction and sales comparables. The significant characteristics of the Reis databases include:

• Breadth - coverage of six property types, including apartment, office, retail, warehouse/distribution, flex/research & development and self storage properties;

• Geography - national coverage of up to 275 of the largest U.S. metropolitan CRE markets, over 6,800 discrete market areas and segments with submarket boundaries proprietary to Reis;

• Depth - captures critical information such as occupancies, rents, rent discounts, tenant improvement allowances, lease terms, expenses, buyer, seller, purchase price, capitalization rate, financing details and other key factors;

• History - up to 34 years of data through multiple cycles of economic/market peaks and troughs; and

• Frequency - market and submarket reports available monthly or quarterly and sales comparables and new construction information updated on daily and weekly schedules.

The following table lists the number of metropolitan markets for each of the six types of commercial real estate covered by Reis at both March 31, 2014 and December 31, 2013:

Apartment	275
Retail	190
Office	190
Warehouse/distribution	47
Flex/research & development	47
Self storage	50

Reis programmatically expands its property level and market coverage by geography and property type. On May 1, 2014, Reis introduced coverage on its seventh property type, senior housing/congregate care, in 57 metropolitan markets.

Reis’s core property database contains information on competitive, income-producing properties in the U.S. apartment, retail, office, warehouse/distribution, flex/research & development and self storage sectors. On an ongoing basis, Reis surveys and receives data downloads from building owners, leasing agents and managers which include key building performance statistics including, among others: occupancy rates; rents; rent discounts and other concessions; tenant improvement allowances; lease terms; and operating expenses. In addition, Reis processes multiple data sources on commercial real estate, including: public filings databases; tax assessor records; deed transfers; planning boards; and numerous local, regional and national publications and commercial real estate web sites. Reis screens and assembles large volumes of data into integrated supply and demand trends on a monthly basis at the neighborhood (submarket) and metropolitan market levels. All collected data are subjected to a rigorous quality assurance and validation process developed over many years. At the property level, surveyors compare the data collected in the current period with data previously collected on that property and similar properties. If any unusual changes in rents and vacancies are identified, follow-up procedures are performed for verification or clarification of the results. All aggregate market data at the submarket and market levels are also subjected to comprehensive quality controls.

In addition to its core property database, Reis develops and maintains a new construction database that identifies and monitors projects that are being added to our covered markets. Detailed tracking of the supply side of the commercial real estate market is critical to projecting performance changes at the market and submarket levels. This database is updated weekly and reports relevant information such as project size, property type and location for projects that are planned, proposed or under construction.

Reis also maintains a sales comparables database containing transactions in up to 277 metropolitan markets. The database captures key information on each transaction, such as buyer, seller, purchase price, capitalization rate and financing details, where available, for transactions valued at greater than $250,000 in each market we cover, for our six property types, as well as for hotel properties.

Reis’s long-standing relationships with thousands of data sources, including building owners, property managers and agents, represent a unique and highly valuable asset that has required decades of investment. The Company is recognized by the industry and the business and trade press as the premier source of objective, timely and granular market information, a reputation attributable to several

20

factors: (1) Reis is viewed as independent as it does not compete as a broker in the listings space; and (2) Reis information is used by owners and managers in underwriting, due diligence and marketing packages.

Products and Services

Reis has invested in a robust technology infrastructure to disseminate a number of market information products to meet the demands of a wide variety of commercial real estate market professionals, from a financial institution seeking an integrated commercial real estate portfolio management platform, to a single access user seeking market intelligence through ReisReports. Reis is continually upgrading and expanding its product offering to reach new markets and new types of consumers of commercial real estate information.

Reis SE

Reis SE (“Subscriber Edition”), available at www.reis.com, is the Company’s flagship product, designed to assist in market research, due diligence and support of commercial real estate transactions, including loan originations, underwriting, acquisitions, risk assessment (such as loan loss reserves and impairment analyses), portfolio monitoring, asset management and appraisal. Reports are retrievable by street address, property type (apartment, office, retail, warehouse/distribution, flex/research & development and self storage) or on the market/submarket level and are available as full color, presentation quality documents or in spreadsheet formats.

Key features of Reis SE include:

• Market Reports - On a monthly basis, Reis provides updated trends and forecasts of rent, vacancy, and inventory for apartment, office, retail, warehouse/distribution, flex/research & development, and self storage property types in up to 275 metropolitan areas and more than 6,800 discrete market areas and segments.

• Rent Comparables - Based on a user specified area, Reis supplies property level performance data such as rents and vacancies, as well as comp group summary statistics, including concessions, operating expenses and lease terms.

• Sales Comparables - Reis maintains a sales comparables database containing transactions in up to 277 metropolitan areas. The database captures key information on each transaction, such as buyer, seller, purchase price, capitalization rate and financing details, where available, for transactions valued at greater than $250,000, for seven property types including hotel properties.

• Single Property Valuation - Designed to help clients better quantify the value and risk associated with their commercial real estate holdings, the valuation module utilizes three valuation methods – discounted cash flow, direct capitalization and sales price per square foot – supported by comparable transactions in the local market.

• “First Glance” Reports - Quarterly narrative reports provide an early assessment of the apartment, office, retail and industrial sectors across the U.S. and commentary on new construction activity.

• Quarterly Briefings - Two conference calls each quarter attended by hundreds of Reis subscribers, plus members of the media, during which Reis economists provide an overview of the latest high-level findings and forecasts for the commercial real estate space and capital markets.

• Real Estate News and Commentary - “Executive Briefings,” the Reis “Observer” and news stories selected by Reis analysts from among hundreds of sources to provide news relevant to a particular market and property type.

• Email Alerts - Customizable email alerts that let users receive proactive updates on markets of interest.

Access to Reis SE is by secure password and can be customized to accommodate the coverage, property type and analytical needs of subscribers. For example, the product can be tailored to provide access to all or only selected markets, property types and report combinations.

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ReisReports

ReisReports is a product tailored to meet the needs of smaller enterprises and individuals, professional investors, brokers and appraisers, available at www.ReisReports.com. Although providing subscribers with less content and a more limited number of reports, ReisReports utilizes the same proprietary database that supports Reis SE. Depending on the package chosen by the ReisReports subscriber, content is available on a monthly or annual subscription basis at affordable price points.

The addressable subscriber market for ReisReports includes hundreds of thousands of prosumers and small enterprises. To expand the total user base of ReisReports, the Company markets through various traditional and online media channels. Management believes that there is a significant opportunity to market monthly and annual subscriptions to CRE professionals active in individual metropolitan areas.

Mobiuss Portfolio CRE

Launched in the first quarter of 2013 and developed in partnership with Opera Solutions LLC, Mobiuss enables clients to quickly and thoroughly assess portfolio risks and opportunities by integrating client loan and property information with Reis property and submarket data and Opera Solutions’ credit analytics. Opera Solutions is a leader in “Big Data” science, predictive analytics and technological innovations. The Company has a multi-year 50% revenue sharing agreement with Opera Solutions for Mobiuss. The solution is delivered in a web-based, visually engaging interface. Mobiuss is targeted to both debt and equity capital providers active in U.S. commercial real estate and, specifically, to banks with significant CRE loan exposure.

As a loan-level analysis and surveillance platform, Mobiuss enables property valuation, credit analysis, stress testing, benchmarking and portfolio pricing. In addition to providing credit default metrics such as expected losses and probabilities of default at the loan and portfolio levels, outputs include forecasted collateral operating incomes and values under multiple economic scenarios. These features allow clients to integrate internal data to create customizable scenario forecasts to meet regulatory stress testing requirements, set loan loss reserves and monitor their collateral.

The Mobiuss platform is intended for both large and small lending institutions, Commercial Mortgage Backed Security, or CMBS, investors and equity investors, among others. Mobiuss has been designed in a modular fashion that allows banks of varying asset sizes to select the applications and price points most appropriate to the scale of their CRE portfolios.

Data Redistribution/ Marketing Alliances

The Company has established data redistribution agreements with information service providers such as Thomson Reuters, Bloomberg and SNL Financial, among others, as part of a strategy designed to raise brand awareness and generate sales leads for Reis’s information and services. Over time, third party users may enter into agreements with Reis directly in order to gain access to the full suite of reports and analytical modules. The Company’s data redistribution agreements are typically multi-year contracts in length, do not afford access to Reis’s proprietary database and provide limited views of Reis’s market data. Reis has also established marketing alliances with the Appraisal Institute and the Certified Commercial Investment Member Institute (“CCIM”) to promote ReisReports to its memberships through discounts, e-mail outreach, website advertising and newsletter ads.

As an example of a data redistribution arrangement, Bloomberg Professional subscribers have access to Reis’s market information at {REIS < GO > } which is also integrated across property and credit valuation tools on Bloomberg’s Commercial Mortgage Backed Security (CMBS) product. Bloomberg subscribers can access Reis’s proprietary supply, demand and price data for the nation’s largest metropolitan apartment, office, retail and industrial markets.

Cost of Service

Reis’s data is made available in six ways, with price points that are reflective of the level of content being made available:

• annual and multi-year subscriptions to Reis SE ranging in price from $1,000 to over $1,000,000, depending upon the subscriber’s line of business and the combination of markets, property types and reports subscribed to, for which the subscriber is typically allowed to download an unlimited number of reports over the subscription period; renewals for Reis SE are negotiated in advance of the expiration of an existing contract based on factors such as a subscriber’s historical and projected report consumption;

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• annual and multi-year subscriptions to Mobiuss typically ranging in price from the low tens of thousands of dollars into the hundreds of thousands of dollars;

• capped Reis SE subscriptions ranging in price from $1,000 to $25,000, allowing clients to download a fixed retail value of reports over a period of up to twelve months;

• subscriptions to ReisReports, which are charged to a credit card, having a retail price ranging up to $150 per month (monthly or annual pricing options are available);

• custom data deliverables ranging in price from $1,000 for a specific data element to hundreds of thousands of dollars for custom portfolio valuation and credit analysis; and

• individual reports, which can be purchased with a credit card, having retail prices up to $999 per report, are available to anyone who visits Reis’s retail web site or contacts Reis via telephone, fax or email; however, certain reports are only available with an annual subscription or capped subscription account.

Reis’s revenue model is based primarily on annual subscriptions that are paid in accordance with contractual billing terms. Reis recognizes revenue from its contracts on a ratable basis; for example, one-twelfth of the value of a one-year contract is recognized monthly.

Other Reis Services Information

For additional information on the Reis Services business, refer to the Company’s annual report on Form 10-K for the year ended December 31, 2013, which was filed with the Securities and Exchange Commission on March 6, 2014.

Additional Segment Financial Information

See Note 3 of the Company’s consolidated financial statements included in this filing for additional information regarding all of the Company’s segments, including Discontinued Operations – Residential Development Activities.

Selected Significant Accounting Policies

For a description of our selected significant accounting policies and estimates, see our Annual Report on Form 10-K for the year ended December 31, 2013.

Critical Business Metrics of the Reis Services Business

Management considers certain metrics in evaluating the performance of the Reis Services business. These metrics are revenue, revenue growth, EBITDA (which is earnings (defined as income (loss) from continuing operations) before interest, taxes, depreciation and amortization), EBITDA growth and EBITDA margin. Other important metrics that management considers include the cash flow generation of the Reis Services business as well as the visibility into future performance as supported by our deferred revenue and other related metrics discussed in this Item 2.

Following is a presentation of revenue, EBITDA and EBITDA margin for the Reis Services business (see below for a reconciliation of income from continuing operations to EBITDA and Adjusted EBITDA for both the Reis Services segment and on a consolidated basis for each of the periods presented here).

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(amounts in thousands, excluding percentages)
	For the Three Months Ended March 31,				Increase		Percentage Increase
	2014		2013
Revenue	$	9,946	$	8,234	$	1,712		20.8%
EBITDA	$	4,066	$	3,277	$	789		24.1%
EBITDA margin		40.9%		39.8%
	For the Three Months Ended
	March 31, 2014		December 31, 2013		Increase		Percentage         Increase
Revenue	$	9,946	$	9,209	$	737		8.0%
EBITDA	$	4,066	$	3,788	$	278		7.3%
EBITDA margin		40.9%		41.1%

Reis Services’s revenue increased by approximately $1,712,000, or 20.8%, from the first quarter of 2013 to the first quarter of 2014. The revenue increase over the corresponding prior quarterly period is the 16^th consecutive quarterly increase in revenue over the prior year’s quarter. In addition, revenue increased by approximately $737,000, or 8.0%, from the fourth quarter of 2013 to the first quarter of 2014. In general, these revenue increases reflect: (1) additional new Reis SE business; (2) revenue growth from ReisReports; and (3) revenue growth from Mobiuss in the 2014 period. The Company’s revenue growth reflects not just a single strong quarter, but also the momentum created by sustained contract growth during 2013 and into the first quarter of 2014. In 2013, the Company had its best booking year and the fourth quarter of 2013 was the best booking quarter in Reis’s history. The Company’s overall renewal rate was unchanged at 91% for the trailing twelve months ended March 31, 2014 and 2013 (for institutional subscribers, the renewal rates were 93% and 92% at March 31, 2014 and 2013, respectively). Total Reis SE subscribers increased to 1,007 at March 31, 2014 from 994 at December 31, 2013.

Reis’s revenue model is based primarily on annual subscriptions that are paid in accordance with contractual billing terms. Reis recognizes revenue from its contracts on a ratable basis; for example, one-twelfth of the value of a one-year contract is recognized monthly. Therefore, increases in the dollar value of new contracts are spread evenly over the life of a contract, thereby moderating an immediate impact on revenue. Historically, the largest percentage of our contracts are executed in the fourth quarter of each year.

Two additional metrics management utilizes are deferred revenue and Aggregate Revenue Under Contract. Analyzing these amounts can provide additional insight into Reis Services’s future financial performance. Deferred revenue, which is a GAAP basis accounting concept and is reported by the Company on the consolidated balance sheet, represents revenue from annual or longer term contracts for which we have billed and/or received payments from our subscribers related to services we will be providing over the remaining contract period. It does not include future revenue under non-cancellable contracts for which we do not yet have the contractual right to bill; this aggregate number we refer to as Aggregate Revenue Under Contract. Deferred revenue will be recognized as revenue ratably over the remaining life of a contract. The following table reconciles deferred revenue to Aggregate Revenue Under Contract at March 31, 2014 and 2013, respectively. A comparison of these balances at March 31 of each year is more meaningful than a comparison to the December 31, 2013 balances, as a greater percentage of renewals occur in the fourth quarter of each year and would distort the analysis.

	March 31,
	2014		2013
Deferred revenue (GAAP basis)	$	19,251,000	$	16,880,000
Amounts under non-cancellable contracts for which the Company does not yet have the contractual right to bill at the period end (A)		20,838,000		17,575,000
Aggregate Revenue Under Contract	$	40,089,000	$	34,455,000
(A)    Amounts are billable subsequent to March 31 of each year and represent (1) non-cancellable contracts for subscribers with multi-year subscriptions where the future years are not yet billable, or (2) subscribers with non-cancellable annual subscriptions with interim billing terms.

Included in Aggregate Revenue Under Contract at March 31, 2014 was approximately $27,009,000 related to amounts under contract for the forward twelve month period through March 31, 2015. The remainder reflects amounts under contract beyond March 31, 2015. The forward twelve month Aggregate Revenue Under Contract amount is approximately 74.1% of revenue on a trailing twelve

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month basis at March 31, 2014 of approximately $36,433,000. For comparison purposes, at March 31, 2013, the forward twelve month Aggregate Revenue Under Contract of $23,315,000 was approximately 72.5% of revenue on a trailing twelve month basis at March 31, 2013.

Both deferred revenue and Aggregate Revenue Under Contract are influenced by: (1) the timing and dollar value of contracts signed and billed; (2) the quantity and timing of contracts that are multi-year; and (3) the impact of recording revenue ratably over the life of a multi-year contract, which moderates the effect of price increases after the first year. Coupled with record new business and contract signings in 2013, the Company continued to sign new multi-year contracts.

EBITDA for the three months ended March 31, 2014 was $4,066,000, an increase of $789,000, or 24.1%, over the first quarter 2013 amount. On a consecutive quarter basis, EBITDA increased $278,000, or 7.3%, from the fourth quarter of 2013 to the first quarter of 2014. These increases were primarily derived from the increases in revenue, as described above. Operating expenses also continued to grow, but at a slower pace than revenue growth, the net effect of which resulted in the Reis Services EBITDA margins of 40.9% and 39.8% for the three months ended March 31, 2014, and 2013, respectively.

Reinvestment in our business remains a priority, including developing new products and functionality, expanding our databases and adding resources to grow our customer base. Accordingly, we continue to hire in many departments, including in sales (both new business and account management) as well as in operations, including our data collection departments. With a growing head count, the Company leased additional space in the third quarter of 2013. The impact of this additional expense began in the fourth quarter of 2013. Separately, as Reis’s business continues to grow, we expect to devote additional resources to expand our sales pipeline through marketing efforts and sales force expansion. The impact of these initiatives was less than expected in the first quarter of 2014, due to the timing of hiring and the timing of implementation of these initiatives. Although our EBITDA margin in the last two fiscal quarters has been consistent at 40.9% and 41.1%, respectively, the expectation for additional spending in 2014 may result in margins for future quarters being below the 40.9% Reis Services EBITDA margin we reported for the first quarter of 2014.

Reconciliations of Income from Continuing Operations to EBITDA and Adjusted EBITDA

We define EBITDA as earnings (defined as income (loss) from continuing operations) before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization and stock based compensation. Although EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with GAAP, senior management uses EBITDA and Adjusted EBITDA to measure operational and management performance. Management believes that EBITDA and Adjusted EBITDA are appropriate supplemental financial measures to be considered in addition to the reported GAAP basis financial information which may assist investors in evaluating and understanding: (1) the performance of the Reis Services segment, the primary business of the Company and (2) the Company’s continuing consolidated results, from year to year or period to period, as applicable. Further, these measures provide the reader with the ability to understand our operational performance while isolating non-cash charges, such as depreciation and amortization expenses, as well as other non-operating items, such as interest income, interest expense and income taxes and, in the case of Adjusted EBITDA, isolates non-cash charges for stock based compensation. Management also believes that disclosing EBITDA and Adjusted EBITDA will provide better comparability to other companies in the information services sector. EBITDA and Adjusted EBITDA are presented both for the Reis Services business and on a consolidated basis. We believe that these metrics, for Reis Services, provide the reader with valuable information for evaluating the financial performance of the core Reis Services business, excluding public company costs, and for making assessments about the intrinsic value of that stand-alone business to a potential acquirer. Management primarily monitors and measures its performance, and is compensated, based on the results of the Reis Services business. EBITDA and Adjusted EBITDA, on a consolidated basis, allow the reader to make assessments about the current trading value of the Company’s common stock, including expenses related to operating as a public company. However, investors should not consider these measures in isolation or as substitutes for net income (loss), income from continuing operations, operating income, or any other measure for determining operating performance that is calculated in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. Reconciliations of EBITDA and Adjusted EBITDA to the most comparable GAAP financial measure, income from continuing operations, follow for each identified period on a segment basis (including the Reis Services segment), as well as on a consolidated basis:

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(amounts in thousands)
Reconciliation of Income from Continuing Operations to EBITDA and	By Segment
Adjusted EBITDA for the Three Months Ended March 31, 2014	Reis Services		Other (A)		Consolidated
Income from continuing operations					$	1,047
Income tax expense						605
Income (loss) before income taxes and discontinued operations	$	2,798	$	(1,146)		1,652
Add back:
Depreciation and amortization expense		1,243		2		1,245
Interest expense, net		25		—		25
EBITDA		4,066		(1,144)		2,922
Add back:
Stock based compensation expense, net		—		435		435
Adjusted EBITDA	$	4,066	$	(709)	$	3,357
Adjusted EBITDA margin – Reis Services and consolidated (B)		40.9%				33.8%

Reconciliation of Income from Continuing Operations to EBITDA and	By Segment
Adjusted EBITDA for the Three Months Ended March 31, 2013	Reis Services		Other (A)		Consolidated
Income from continuing operations					$	402
Income tax expense						265
Income (loss) before income taxes and discontinued operations	$	2,040	$	(1,373)		667
Add back:
Depreciation and amortization expense		1,211		2		1,213
Interest expense, net		26		—		26
EBITDA		3,277		(1,371)		1,906
Add back:
Stock based compensation expense, net		—		581		581
Adjusted EBITDA	$	3,277	$	(790)	$	2,487
Adjusted EBITDA margin – Reis Services and consolidated (B)		39.8%				30.2%

Reconciliation of Income from Continuing Operations to EBITDA and	By Segment
Adjusted EBITDA for the Three Months Ended December 31, 2013	Reis Services		Other (A)		Consolidated
Income from continuing operations					$	16,304
Income tax (benefit)						(14,751)
Income (loss) before income taxes and discontinued operations	$	2,511	$	(958)		1,553
Add back:
Depreciation and amortization expense		1,251		2		1,253
Interest expense, net		26		—		26
EBITDA		3,788		(956)		2,832
Add back:
Stock based compensation expense, net		—		379		379
Adjusted EBITDA	$	3,788	$	(577)	$	3,211
Adjusted EBITDA margin – Reis Services and consolidated (B)		41.1%				34.9%

(A) Includes interest and other income, depreciation expense and general and administrative expenses (including public company related costs) that are not associated with the Reis Services segment. Since the reconciliations start with income from continuing operations, the effects of the discontinued operations (Residential Development Activities) are excluded from these reconciliations for all periods presented.

(B) Reflects an Adjusted EBITDA margin on the Reis Services segment and on a consolidated basis, both of which excludes the impact of discontinued operations.

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Results of Operations

Comparison of the Results of Operations for the Three Months Ended March 31, 2014 and 2013

Subscription revenues and related cost of sales were approximately $9,946,000 and $1,916,000, respectively, for the three months ended March 31, 2014, which resulted in a gross profit for the Reis Services segment of approximately $8,030,000. Amortization expense included in cost of sales (for the database intangible asset) was approximately $413,000 during this period. Subscription revenues and related cost of sales were approximately $8,234,000 and $1,681,000, respectively, for the three months ended March 31, 2013, which resulted in a gross profit for the Reis Services segment of approximately $6,553,000. Amortization expense included in cost of sales was approximately $366,000 during this period. See “— Critical Business Metrics of the Reis Services Business” for a discussion of the variances and trends in revenue and EBITDA of the Reis Services segment. The increase in cost of sales of $235,000 resulted from greater employment related costs, specifically from hiring during 2013 and 2014, coupled with compensation increases and higher benefit costs than in the 2013 period of $188,000 and a $47,000 increase in amortization expense for data base costs.

Sales and marketing expenses were approximately $2,552,000 and $1,969,000 for the three months ended March 31, 2014 and 2013, respectively, and solely represented costs of the Reis Services segment. Amortization expense included in sales and marketing expenses (for the customer relationships intangible asset) was approximately $241,000 and $244,000 during the three months ended March 31, 2014 and 2013, respectively. The increase in sales and marketing expenses between the two periods of approximately $583,000 resulted from greater employment related costs from hiring during 2013 and 2014 and increased commissions expense, coupled with compensation increases and higher benefit costs than in the 2013 period.

Product development expenses were approximately $763,000 and $722,000 for the three months ended March 31, 2014 and 2013, respectively, and solely represented costs of the Reis Services segment. Amortization expense included in product development expenses (for the web site intangible asset) was approximately $423,000 and $449,000 during the three months ended March 31, 2014 and 2013, respectively. Product development costs increased $41,000, primarily due to increased employment related costs from hiring during 2013, coupled with compensation increases and higher benefit costs than in the 2013 period of $67,000, offset by a net $26,000 decrease in amortization expense for web site costs.

General and administrative expenses of approximately $3,037,000 for the three months ended March 31, 2014 included current period expenses of approximately $2,435,000, depreciation and amortization expense of approximately $167,000 for lease value and furniture, fixtures and equipment, and approximately $435,000 of net non-cash compensation expense. The net non-cash compensation expense was comprised of equity awards for employees and directors of approximately $448,000, offset by an approximate $13,000 decrease in the liability for option cancellations due to a decrease in the market price of the Company’s common stock from $19.23 per share at December 31, 2013 to $18.05 per share at March 31, 2014. General and administrative expenses of approximately $3,169,000 for the three months ended March 31, 2013 included current period expenses of approximately $2,434,000, depreciation and amortization expense of approximately $154,000 for lease value and furniture, fixtures and equipment, and approximately $581,000 of net non-cash compensation expense. The net non-cash compensation expense was comprised of equity awards for employees and directors of approximately $492,000, and by an approximate $89,000 increase in the liability for option cancellations due to an increase in the market price of the Company’s common stock from $13.03 per share at December 31, 2012 to $15.54 per share at March 31, 2013.

Interest expense of $28,000 for both the three months ended March 31, 2014 and 2013, was comprised of unused facility fees and deferred financing cost amortization on the Company’s revolving credit facility, which we refer to as the Revolver. There was no outstanding balance on the Revolver during the three months ended March 31, 2014 or 2013.

The aggregate income tax expense of $605,000 during the three months ended March 31, 2014 reflected deferred Federal tax expense of $569,000 and deferred state and local tax expense of $36,000. The aggregate income tax expense of $265,000 during the three months ended March 31, 2013 reflected deferred Federal tax expense of $220,000 and deferred state and local tax expense of $45,000.

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The loss from discontinued operations was $378,000 and $152,000 for the three months ended March 31, 2014 and 2013, respectively. The losses in the 2014 and 2013 periods primarily reflected legal and professional fees of $613,000 and $251,000, respectively, in connection with our recovery efforts (related to the 2012 Gold Peak settlement of $17,000,000), offset by income tax benefits of $235,000 and $99,000, respectively.

Income Taxes

During the three months ended March 31, 2014, New York State enacted a law to reduce corporate tax rates, effective in future years. As a consequence, the Company evaluated all elements affecting the balance of its net deferred tax assets, including the availability of New York State and New York City net operating loss carryforwards and this change in the law in New York State. The impact of this evaluation resulted in a net increase in the deferred tax asset of $29,000 during the three months ended March 31, 2014.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net deferred tax asset was approximately $23,419,000 and $23,789,000 at March 31, 2014 and December 31, 2013, respectively, of which $1,832,000 and $2,472,000 is reflected as a net current asset in prepaid and other assets and $21,587,000 and $21,317,000 is reflected separately as a net non-current asset in the accompanying consolidated balance sheets. The significant portion of the deferred tax items primarily relates to: (1) NOL carryforwards; (2) Federal AMT credit carryforwards; and (3) stock based compensation; all as they relate to deferred tax assets; and (4) the deferred tax liability resulting from the intangible assets recorded at the time of the Merger.

The Company has aggregate Federal, state and local NOL carryforwards aggregating approximately $66,006,000 at December 31, 2013. These NOLs include NOLs generated subsequent to the Merger, losses from the Reis Services business prior to the Merger, losses obtained from the Company’s 1998 merger with Value Property Trust (“VLP”) and the Company’s operating losses prior to the Merger. Approximately $25,158,000 of these Federal NOLs are subject to an annual limitation, whereas the remaining balance of approximately $40,848,000 is not subject to such a limitation. There is an annual limitation on the use of NOLs after an ownership change, pursuant to Section 382 of the Internal Revenue Code. As a result of the Merger, the Company experienced such an ownership change which resulted in a new annual limitation of $2,779,000. However, because of the accumulation of annual limitations, it is expected that the use of NOLs will not be limited by expiration. The New York State law discussed above limits the amount of existing NOL’s which could be used each year in that state; however, all such losses are expected to be utilized in the future.

A valuation allowance is required to reduce deferred tax assets if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As a result of management’s current evaluation of the Company’s future operations, it has been determined that no valuation allowance was necessary at March 31, 2014 or December 31, 2013.

Liquidity and Capital Resources

The core Reis Services business has traditionally generated significant cash annually; and we expect it to continue to do so. Our consolidated cash and cash equivalents balance aggregated approximately $15,788,000 at March 31, 2014, an increase of $5,228,000 over the December 31, 2013 balance of approximately $10,560,000.

Our cash balance decreased significantly during the year ended December 31, 2012 from the $17,000,000 settlement of the Gold Peak litigation and the repayment of approximately $5,691,000 of outstanding debt. Cash generation of the Reis Services business in 2013 and the first quarter of 2014 has been solely responsible for the replenishment of our cash balance. In addition to the cash generation of the Reis Services business, in October 2012, the Company obtained the three year $10,000,000 Revolver to provide working capital flexibility; no borrowings have been made on the Revolver in 2013 or to date in 2014. Separately, the Company is seeking recovery under all available insurance policies, and is pursuing appropriate additional actions against other potentially responsible parties related to Gold Peak. To date, these efforts have resulted in the recovery of $792,500 of cash by March 31, 2014 and no amounts in the first quarter of 2014 or 2013. There can be no assurance that the Company will recover any additional amounts in the short or long-term from these efforts.

At March 31, 2014, the Company’s short-term liquidity requirements include: current operating and capitalizable costs, including accounts payable and other accrued expenses; near-term product development and enhancement of the web site and databases; operating leases; growth in operating expenses from a further increase in the number of Reis employees and additional resources being devoted to our sales and marketing efforts; insurance deductibles and legal costs related to discontinued operations; other costs, including public company expenses not included in the Reis Services segment; the resolution of open tax years with state and local tax

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authorities; and the potential settlement of certain outstanding stock options in cash (the liability for which was approximately $124,000 at March 31, 2014, based upon the closing stock price of the Company at March 31, 2014, of $18.05 per share). The Company expects to meet these short-term liquidity requirements generally through the use of available cash and cash generated from subscription revenue of Reis Services and, if necessary, with borrowings under the Revolver. There could be additional cash inflows from insurance recoveries, or from other potentially responsible parties, related to the Gold Peak litigation; however, there can be no assurance that the Company will recover any additional amounts in the short or long-term. The Company has NOLs that it expects to be able to use beyond the next few years against future Federal, state and local taxable income, if any. Tax payments related to 2014 are expected to be for state and local taxes on income and Federal AMT, but not for Federal income taxes.

The Company’s long-term liquidity requirements, beyond 2014, may include: future operating and capitalizable costs, including accounts payable and other accrued expenses; long-term product development and enhancements of the web sites and databases; operating leases and other capital expenditures; growth in operating expenses from a further increase in the number of Reis employees and additional resources being devoted to our sales and marketing efforts; other costs, including public company expenses not included in the Reis Services segment; the resolution of open tax years with state and local tax authorities; and the possible payment of employee taxes on vested equity awards, for which the employee uses shares to settle his/her minimum withholding tax obligations with the Company. The Company expects to meet these long-term liquidity requirements generally through the use of available cash and cash generated from subscription revenue of Reis Services and, if necessary, with borrowings under the Revolver. The Company may consider, based on market conditions and business needs, refinancing or otherwise amending our Revolver, though there can be no assurance we will do so, or be able to do so on terms acceptable to us. There could be additional cash inflows from insurance recoveries, or from other potentially responsible parties, both related to the Gold Peak litigation; however, there can be no assurance that the Company will recover any additional amounts in the short or long-term. The Company has NOLs that it expects to be able to use beyond the next few years against future Federal, state and local taxable income, if any. Tax payments related to 2014 and possibly 2015 are expected to be for state and local taxes on income and Federal AMT, but not for Federal income taxes. Subsequent to 2015, tax payments are expected to be for alternative state and local taxes and Federal AMT, but not for Federal, state or local taxes on income. In 2015 and thereafter, as a result of the new tax law enacted in New York State in March 2014, the use of certain NOLs for New York State purposes will be subject to an annual limitation and therefore, any taxes in excess of the limitation will need to be paid in those periods.

The Company may determine to use its cash to: (1) acquire or invest in other databases or information companies that have logical adjacencies or complementary products or services; (2) repurchase shares of Reis common stock; or (3) pay a dividend to stockholders in the form of a special or a recurring dividend. There can be no assurance that the Company will use its cash for any of these purposes during 2014 or thereafter.

Changes in Cash Flows

Cash flows for the three months ended March 31, 2014 and 2013 are summarized as follows:

	For the Three Months Ended March 31,
	2014		2013
Net cash provided by operating activities	$	6,541,054	$	4,016,087
Cash (used in) investing activities		(1,181,414)		(1,208,559)
Cash (used in) financing activities		(131,778)		(1,109,475)
Net increase in cash and cash equivalents	$	5,227,862	$	1,698,053

Net cash provided by operating activities increased $2,525,000 from $4,016,000 provided in the 2013 period to $6,541,000 provided in the 2014 period. This increase was the result of increased operating cash flow of $2,761,000 from the Reis Services segment from $5,331,000 provided in the 2013 period to $8,092,000 provided in the 2014 period due to growth in revenue and EBITDA and the timing of accounts receivable collections.

Cash used in investing activities decreased $28,000 from $1,209,000 used in the 2013 period to $1,181,000 used in the 2014 period. This change resulted from a $19,000 decrease in furniture, fixtures and equipment as the 2013 period included spending in connection with the new office lease in 2013, coupled with a $9,000 decrease of cash used in the 2014 period as compared to the 2013 period for web site and database development costs for continuing product development and enhancement initiatives. The expectation for 2014 is that cash used for website and database development will exceed 2013 amounts.

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Cash used in financing activities were $132,000 and $1,109,000 in the 2014 and 2013 periods, respectively, for option cancellations in the 2014 period and for restricted stock unit settlements in the 2013 period.

Cautionary Statement Regarding Forward-Looking Statements

This quarterly report on Form 10-Q contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to the Company’s or management’s outlook or expectations for earnings, revenues, expenses, asset quality, or other future financial or business performance, strategies, prospects or expectations, or the impact of legal, regulatory or supervisory matters on our business, operations or performance. Specifically, forward-looking statements may include:

• statements relating to future services and product development of the Reis Services segment;

• statements relating to business prospects, potential acquisitions, sources and uses of cash, revenue, expenses, income (loss) from continuing or discontinued operations, cash flows, valuation of assets and liabilities and other business metrics of the Company and its businesses, including EBITDA, Adjusted EBITDA and Aggregate Revenue Under Contract; and

• statements preceded by, followed by or that include the words “estimate,” “plan,” “project,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions relating to future periods.

Forward-looking statements reflect management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. With respect to these forward-looking statements, management has made certain assumptions. Future performance cannot be assured. Actual results may differ materially from those contemplated by the forward-looking statements. Some factors that could cause actual results to differ include:

• lower than expected revenues and other performance measures such as income from continuing operations, EBITDA and Adjusted EBITDA;

• inability to retain and increase the Company’s subscriber base;

• inability to execute properly on new products and services, or failure of subscribers to accept these products and services;

• competition;

• inability to attract and retain sales and senior management personnel;

• inability to access adequate capital to fund operations and investments in our business;

• difficulties in protecting the security, confidentiality, integrity and reliability of the Company’s data;

• changes in accounting policies or practices;

• legal and regulatory issues;

• the results of pending, threatening or future litigation; and

• the risk factors listed under “Item 1A. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2013, which was filed with the Securities and Exchange Commission on March 6, 2014.

You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this quarterly report on Form 10-Q. Except as required by law, the Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this quarterly report on Form 10-Q or to reflect the occurrence of unanticipated events.

30

Item 3.  Quantitative and Qualitative Disclosures about Market Risk.

The Company’s primary market risk exposure has been to changes in interest rates. This risk may be managed by limiting the Company’s financing exposures, to the extent possible, by purchasing interest rate caps when deemed appropriate.

At March 31, 2014 and December 31, 2013, the Company’s only potential exposure to interest rates was on variable rate based debt. This exposure has historically been minimized through the use of interest rate caps. During the three months ended March 31, 2014 and throughout 2013, the Company did not have any interest rate caps. No debt was outstanding at March 31, 2014 and December 31, 2013. For more information about the Company’s debt, see Note 6 to the Company’s consolidated financial statements.

Reis holds cash and cash equivalents at various regional and national banking institutions. Management monitors the institutions that hold our cash and cash equivalents. Management’s emphasis is primarily on safety of principal. Management, in its discretion, has diversified Reis’s cash and cash equivalents among banking institutions to potentially minimize exposure to any one of these entities. To date, we have experienced no loss or lack of access to our invested cash or cash equivalents; however, we can provide no assurances that access to invested cash and cash equivalents will not be impacted by adverse conditions in the financial markets.

Cash balances held at banking institutions with which we do business generally exceed the Federal Deposit Insurance Corporation insurance limits. While management monitors the cash balances in these bank accounts, such cash balances could be impacted if the underlying banks fail or could be subject to other adverse conditions in the financial markets.

Item 4.  Controls and Procedures.

As of March 31, 2014, the Company carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures as of March 31, 2014 were designed at a reasonable assurance level and were effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported, within the time periods specified in the SEC rules and forms, and to ensure that such information is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There has been no change in the Company’s internal control over financial reporting during the quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II. Other Information

Item 1.  Legal Proceedings.

As disclosed in Note 11 to the Company’s consolidated financial statements contained elsewhere in this Form 10-Q, the Company is engaged in certain legal matters, and the disclosure set forth in such Note 11 is incorporated herein by reference.

Item 1A.  Risk Factors.

A wide range of risks may affect our business and financial results, now and in the future; however, we consider the risks described under “Item 1A. Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2013, which was filed with the SEC on March 6, 2014, to be the most significant. There may be other currently unknown or unpredictable economic, business, competitive, governmental or other factors that could have material adverse effects on our business or future results. See “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Cautionary Statement Regarding Forward-Looking Statements” for additional information.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

Issuer Purchases of Equity Securities

During the three months ended March 31, 2014, the Company did not repurchase any shares of common stock.

31

Item 3.  Defaults Upon Senior Securities.

None.

Item 4.  Mine Safety Disclosures.

None.

Item 5.  Other Information.

None.

Item 6.  Exhibits.

Exhibits filed with this Form 10-Q:

Exhibit     No.	Description
31.1	Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Chief Executive Officer and Chief Financial Officer Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive Data Files, formatted in extensible Business Reporting Language (XBRL).

32

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

REIS, INC.
By:	/s/  Mark P. Cantaluppi
	Mark P. Cantaluppi
	Vice President, Chief Financial Officer

Dated: May 1, 2014

33

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

17 CFR 240.13a-14(a),

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lloyd Lynford, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Reis, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:      May 1, 2014

By:	/s/  Lloyd Lynford
	Lloyd Lynford
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

17 CFR 240.13a-14(a),

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mark P. Cantaluppi, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Reis, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:      May 1, 2014

By:	/s/  Mark P. Cantaluppi
	Mark P. Cantaluppi
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Reis, Inc. (together with its consolidated subsidiaries, the “Company”) for the period ended March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Lloyd Lynford, Chief Executive Officer of the Company, and Mark P. Cantaluppi, Chief Financial Officer of the Company, each certify, to the best of our knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/  Lloyd Lynford

Lloyd Lynford

Chief Executive Officer

Reis, Inc.

/s/  Mark P. Cantaluppi

Mark P. Cantaluppi

Chief Financial Officer

Reis, Inc.

May 1, 2014

This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of this Report.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Stock Plans and Other Incentives - Additional Information (Detail) (USD $)	3 Months Ended			3 Months Ended			12 Months Ended	3 Months Ended		1 Months Ended				3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014 Minimum [Member]	Mar. 31, 2014 Maximum [Member]	Mar. 31, 2014 Money Option [Member]	Dec. 31, 2013 Money Option [Member]	Mar. 31, 2014 RSU [Member]	Mar. 31, 2013 RSU [Member]	Feb. 28, 2014 RSU [Member] Employees [Member]	Feb. 28, 2013 RSU [Member] Employees [Member]	Jan. 31, 2014 RSU [Member] Non-Employee Directors [Member]	Jan. 31, 2013 RSU [Member] Non-Employee Directors [Member]	Mar. 31, 2014 Non-Employee Directors Compensation Plan [Member]	Mar. 31, 2013 Non-Employee Directors Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period of the awards granted under the company's incentive plans	10 years
Vesting period for Incentive Plans				3 years	5 years
Liability for option cancellations amount						$ 124,000	$ 268,000
Closing stock price	$ 18.05	$ 15.54	$ 19.23
Outstanding in-the-money options	8,862	35,448				8,862	17,724
Recorded compensation expense (benefit)	(13,000)	89,000
RSUs granted								93,225	94,884	91,431	91,356	1,794	3,528
Weighted average grant date fair value										$ 18.13	$ 16.20	$ 19.23	$ 13.03
Vesting Rights								RSUs vest one-third a year over three years
Number of months after the termination of service, RSUs delivered to non-employee directors								6 months
Non-cash compensation expense	$ 447,969	$ 491,521												$ 34,500	$ 46,000

XML

Intangible Assets - Summary of Identified Intangible Assets (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (29,917,266)	$ (28,764,189)
Total	15,612,310	15,687,117
Database [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	17,745,000	17,149,000
Accumulated amortization	(13,651,000)	(13,238,000)
Total	4,094,000	3,911,000
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	14,100,000	14,100,000
Accumulated amortization	(6,658,000)	(6,417,000)
Total	7,442,000	7,683,000
Web Site [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	10,884,000	10,402,000
Accumulated amortization	(7,518,000)	(7,095,000)
Total	3,366,000	3,307,000
Acquired Below Market Lease [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	2,800,000	2,800,000
Accumulated amortization	(2,090,000)	(2,014,000)
Total	$ 710,000	$ 786,000

XML

Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Details of Computation of Earnings Per Common Share, Basic and Diluted

The following table details the computation of earnings per common share, basic and diluted:

	For the Three Months Ended March 31,
	2014		2013
Numerator for basic per share calculation:
Income from continuing operations for basic calculation	$	1,046,980	$	402,066
(Loss) from discontinued operations, net of income tax (benefit)		(377,878)		(151,632)
Net income for basic calculation	$	669,102	$	250,434
Numerator for diluted per share calculation:
Income from continuing operations	$	1,046,980	$	402,066
Adjustments to income from continuing operations for the income statement impact of dilutive securities		(12,850)		—
Income from continuing operations for dilution calculation		1,034,130		402,066
(Loss) from discontinued operations, net of income tax (benefit)		(377,878)		(151,632)
Net income for dilution calculation	$	656,252	$	250,434
Denominator:
Weighted average common shares – basic		10,978,716		10,828,396
Effect of dilutive securities:
RSUs		174,938		292,981
Stock options		309,676		226,374
Weighted average common shares – diluted		11,463,330		11,347,751
Per common share amounts – basic:
Income from continuing operations	$	0.10	$	0.04
(Loss) from discontinued operations		(0.04)		(0.02)
Net income	$	0.06	$	0.02
Per common share amounts – diluted:
Income from continuing operations	$	0.09	$	0.04
(Loss) from discontinued operations		(0.03)		(0.02)
Net income	$	0.06	$	0.02

XML

Stock Plans and Other Incentives - Changes in RSUs (Parenthetical) (Detail) (USD $)				3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Mar. 31, 2013 RSU [Member] Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock used to settle minimum employee withholding tax obligations				70,897
Number of employees withholding tax obligations				16
Employee withholding tax obligations approximate amount				$ 1,109,000
Common stock delivered, net				109,177
Closing stock price	$ 18.05	$ 19.23	$ 15.54

XML

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Net increase in deferred tax asset due to change in NYS tax rate	$ 29,000
Net deferred tax asset	23,419,000	23,789,000
Net current deferred tax asset in prepaid and other assets	1,832,000	2,472,000
Net non-current deferred tax asset	21,587,000	21,317,000
Aggregate Federal, state and local NOL		66,006,000
Federal NOLs subject to an annual limitation		25,158,000
Federal NOLs not subject to an annual limitation		40,848,000
New NOLs annual limitation as a result of merger		2,779,000
Valuation allowance	$ 0	$ 0

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries. Investments in entities where the Company does not have a controlling interest are accounted for under the equity method of accounting. These investments were initially recorded at cost and were subsequently adjusted for the Company’s proportionate share of the investment’s income (loss) and additional contributions or distributions. All inter-company accounts and transactions among the Company and its subsidiaries have been eliminated in consolidation.

Quarterly Reporting

The accompanying consolidated financial statements and notes of the Company have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared under Generally Accepted Accounting Principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s balance sheets, statements of operations, statement of changes in stockholders’ equity and statements of cash flows have been included and are of a normal and recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013, as filed with the SEC on March 6, 2014. The consolidated statements of operations and changes in cash flows for the three months ended March 31, 2014 and 2013 are not necessarily indicative of full year results.

Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

From time to time, the Company has been, is or may in the future be a defendant in various legal actions arising in the normal course of business. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. The outcome of any litigation is uncertain; it is possible that a judgment in any legal actions to which the Company is a party, or which are proposed or threatened, will have a material adverse effect on the consolidated financial statements. See Note 11.

XML

Earnings Per Common Share - Details of Computation of Earnings Per Common Share, Basic and Diluted (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Numerator for basic per share calculation:
Income from continuing operations for basic calculation	$ 1,046,980	$ 402,066
(Loss) from discontinued operations, net of income tax (benefit)	(377,878)	(151,632)
Net income for basic calculation	669,102	250,434
Numerator for diluted per share calculation:
Income from continuing operations	1,046,980	402,066
Adjustments to income from continuing operations for the income statement impact of dilutive securities	(12,850)
Income from continuing operations for dilution calculation	1,034,130	402,066
(Loss) from discontinued operations, net of income tax (benefit)	(377,878)	(151,632)
Net income for dilution calculation	$ 656,252	$ 250,434
Denominator:
Weighted average common shares - basic	10,978,716	10,828,396
Effect of dilutive securities:
RSUs	174,938	292,981
Stock options	309,676	226,374
Weighted average common shares - diluted	11,463,330	11,347,751
Per common share amounts - basic:
Income from continuing operations	$ 0.10	$ 0.04
(Loss) from discontinued operations	$ (0.04)	$ (0.02)
Net income	$ 0.06	$ 0.02
Per common share amounts - diluted:
Income from continuing operations	$ 0.09	$ 0.04
(Loss) from discontinued operations	$ (0.03)	$ (0.02)
Net income	$ 0.06	$ 0.02

XML

Segment Information - Condensed Operating Data for Segments (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
Subscription revenue	$ 9,946,045	$ 8,234,328
Cost of sales of subscription revenue	1,916,345	1,681,404
Gross profit	8,029,700	6,552,924
Operating expenses:
Sales and marketing	2,552,020	1,968,966
Product development	763,103	721,566
General and administrative expenses	3,037,442	3,169,311
Total operating expenses	6,352,565	5,859,843
Other income (expenses):
Interest and other income	3,058	2,198
Interest expense	(28,213)	(28,213)
Total other income (expenses)	(25,155)	(26,015)
Income (loss) before income taxes and discontinued operations	1,651,980	667,066
(Loss) from discontinued operations, before income taxes	(613,000)	(251,000)
Reis Services [Member]
Segment Reporting Information [Line Items]
Subscription revenue	9,946,000	8,234,000
Cost of sales of subscription revenue	1,916,000	1,681,000
Gross profit	8,030,000	6,553,000
Operating expenses:
Sales and marketing	2,552,000	1,969,000
Product development	763,000	722,000
General and administrative expenses	1,892,000	1,796,000
Total operating expenses	5,207,000	4,487,000
Other income (expenses):
Interest and other income	3,000	2,000
Interest expense	(28,000)	(28,000)
Total other income (expenses)	(25,000)	(26,000)
Income (loss) before income taxes and discontinued operations	2,798,000	2,040,000
(Loss) from discontinued operations, before income taxes
Other [Member]
Segment Reporting Information [Line Items]
Subscription revenue
Cost of sales of subscription revenue
Gross profit
Operating expenses:
Sales and marketing
Product development
General and administrative expenses	1,146,000	1,373,000
Total operating expenses	1,146,000	1,373,000
Other income (expenses):
Interest and other income
Interest expense
Total other income (expenses)
Income (loss) before income taxes and discontinued operations	(1,146,000)	(1,373,000)
(Loss) from discontinued operations, before income taxes	(585,000)	(251,000)
Discontinued Operations [Member]
Segment Reporting Information [Line Items]
Subscription revenue
Cost of sales of subscription revenue
Gross profit
Operating expenses:
Sales and marketing
Product development
General and administrative expenses
Total operating expenses
Other income (expenses):
Interest and other income
Interest expense
Total other income (expenses)
Income (loss) before income taxes and discontinued operations
(Loss) from discontinued operations, before income taxes	$ (28,000)

XML

Segment Information - Condensed Balance Sheet Data for Segment (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 15,787,761	$ 10,559,899	$ 6,658,903	$ 4,960,850
Restricted cash and investments	216,835	216,702
Accounts receivable, net	5,124,171	11,386,584
Prepaid and other assets	2,173,767	2,787,909
Assets attributable to discontinued operations	3,500	8,500
Total current assets	23,306,034	24,959,594
Furniture, fixtures and equipment, net	864,761	853,377
Intangible assets, net	15,612,310	15,687,117
Deferred tax asset, net	21,586,520	21,316,520
Goodwill	54,824,648	54,824,648
Other assets	204,095	225,528
Total assets	116,398,368	117,866,784
Current liabilities:
Current portion of debt
Accrued expenses and other liabilities	1,991,795	3,578,227
Liability for option cancellations	123,713	268,341
Deferred revenue	19,251,022	20,284,178
Liabilities attributable to discontinued operations	507,352	342,138
Total current liabilities	21,873,882	24,472,884
Other long-term liabilities	536,456	522,941
Deferred tax liability, net
Total liabilities	22,410,338	24,995,825
Total stockholders' equity	93,988,030	92,870,959
Total liabilities and stockholders' equity	116,398,368	117,866,784
Reis Services [Member]
Current assets:
Cash and cash equivalents	15,629,000	10,347,000
Restricted cash and investments	217,000	217,000
Accounts receivable, net	5,124,000	11,386,000
Prepaid and other assets	208,000	187,000
Assets attributable to discontinued operations
Total current assets	21,178,000	22,137,000
Furniture, fixtures and equipment, net	842,000	829,000
Intangible assets, net	15,612,000	15,687,000
Deferred tax asset, net	285,000	285,000
Goodwill	57,203,000	57,203,000
Other assets	204,000	225,000
Total assets	95,324,000	96,366,000
Current liabilities:
Current portion of debt
Accrued expenses and other liabilities	1,430,000	2,623,000
Liability for option cancellations
Deferred revenue	19,251,000	20,284,000
Liabilities attributable to discontinued operations
Total current liabilities	20,681,000	22,907,000
Other long-term liabilities	536,000	523,000
Deferred tax liability, net	20,031,000	18,957,000
Total liabilities	41,248,000	42,387,000
Total stockholders' equity	54,076,000	53,979,000
Total liabilities and stockholders' equity	95,324,000	96,366,000
Other [Member]
Current assets:
Cash and cash equivalents	159,000	213,000
Restricted cash and investments
Accounts receivable, net
Prepaid and other assets	1,965,000	2,601,000
Assets attributable to discontinued operations	4,000	9,000
Total current assets	2,128,000	2,823,000
Furniture, fixtures and equipment, net	22,000	24,000
Intangible assets, net
Deferred tax asset, net	21,302,000	21,032,000
Goodwill	(2,378,000)	(2,378,000)
Other assets
Total assets	21,074,000	21,501,000
Current liabilities:
Current portion of debt
Accrued expenses and other liabilities	562,000	956,000
Liability for option cancellations	124,000	268,000
Deferred revenue
Liabilities attributable to discontinued operations	236,000	71,000
Total current liabilities	922,000	1,295,000
Other long-term liabilities
Deferred tax liability, net	(20,031,000)	(18,957,000)
Total liabilities	(19,109,000)	(17,662,000)
Total stockholders' equity	40,183,000	39,163,000
Total liabilities and stockholders' equity	21,074,000	21,501,000
Discontinued Operations [Member]
Current assets:
Cash and cash equivalents
Restricted cash and investments
Accounts receivable, net
Prepaid and other assets
Assets attributable to discontinued operations
Total current assets
Furniture, fixtures and equipment, net
Intangible assets, net
Deferred tax asset, net
Goodwill
Other assets
Total assets
Current liabilities:
Current portion of debt
Accrued expenses and other liabilities
Liability for option cancellations
Deferred revenue
Liabilities attributable to discontinued operations	271,000	271,000
Total current liabilities	271,000	271,000
Other long-term liabilities
Deferred tax liability, net
Total liabilities	271,000	271,000
Total stockholders' equity	(271,000)	(271,000)
Total liabilities and stockholders' equity

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Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended		0 Months Ended		1 Months Ended		3 Months Ended			12 Months Ended				0 Months Ended		3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2012 Gold Peak [Member]	Mar. 13, 2012 Gold Peak [Member]	Mar. 31, 2012 Gold Peak [Member]	Oct. 31, 2011 Gold Peak [Member]	Mar. 31, 2014 Gold Peak [Member]	Jun. 30, 2012 Gold Peak [Member]	Mar. 31, 2012 Gold Peak [Member]	Dec. 31, 2013 Gold Peak [Member]	Dec. 31, 2012 Gold Peak [Member]	Dec. 31, 2011 Gold Peak [Member]	Sep. 30, 2009 Gold Peak [Member] Segment	Aug. 03, 2012 Gold Peak [Member] First Installment [Member]	Oct. 15, 2012 Gold Peak [Member] Second Installment [Member]	Mar. 31, 2014 Gold Peak [Member] Minimum [Member]	Mar. 31, 2014 Gold Peak [Member] Maximum [Member]
Loss Contingencies [Line Items]
Former Gold Peak condominium project unit													259
Construction defect suit filed against the company						$ 19,000,000
Amount of liability through verdict by jury				18,200,000	18,200,000
Other costs associated with judgment									756,000
Additional charge recorded by Company in discontinued operations as a result of the verdict									14,216,000		11,547,000	4,460,000
Estimated litigation liability												7,740,000
Amount not probable to be received from Insurance Company					3,000,000				3,000,000
Settlement with the plaintiff			17,000,000
Installment amount due														5,000,000	12,000,000
Reversal of litigation charge								1,956,000
Recovery of litigation charge										80,000	712,500
Amount of cover available for claim through insurance policy																9,000,000	12,000,000
Amount of cover available for claim through insurance policy as per ACE							3,000,000
Lawsuit could have been settled							$ 12,000,000

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Segment Information - Balance of Outstanding Accounts Receivables of Reis Services (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Accounts receivables, net	$ 5,124,171	$ 11,386,584
Reis Services [Member]
Segment Reporting Information [Line Items]
Accounts receivables	5,223,000	11,465,000
Allowance for doubtful accounts	(99,000)	(79,000)
Accounts receivables, net	$ 5,124,000	$ 11,386,000

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Segment Information - (Loss) from Discontinued Operations (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting [Abstract]
Litigation charge, net of recoveries (see Note 11)
Other income (expense), net	(613,000)	(251,000)
(Loss) from discontinued operations before income tax	(613,000)	(251,000)
Income tax (benefit) from discontinued operations	(235,000)	(99,000)
(Loss) from discontinued operations, net of income tax (benefit)	$ (377,878)	$ (151,632)

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Organization and Business

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Organization and Business

1. Organization and Business

Reis, Inc. is a Maryland corporation. Reis, Inc. and its consolidated subsidiaries (“Reis” or the “Company”) provides commercial real estate market information and analytical tools to real estate professionals, through its Reis Services subsidiary. For disclosure and financial reporting purposes, this business is referred to as the Reis Services segment.

Reis Services

Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietary database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the U.S. The database contains information on apartment, office, retail, warehouse/distribution, flex/research & development and self storage properties, and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition, Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associated with individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides its information services to many of the nation’s leading lending institutions, equity investors, brokers and appraisers.

The Company’s product portfolio features: Reis SE, its flagship delivery platform aimed at larger and mid-sized enterprises; ReisReports, aimed at prosumers and smaller enterprises; and Mobiuss Portfolio CRE, or Mobiuss, launched in early 2013 and aimed primarily at risk managers and credit administrators at banks and non-bank lending institutions. It is through these products that Reis provides online access to a proprietary database of commercial real estate information and analytical tools designed to facilitate debt and equity transactions as well as ongoing asset and portfolio evaluations. Depending on the product or level of entitlement, users have access to market trends and forecasts at metropolitan and neighborhood levels throughout the U.S. and/or detailed building-specific information such as rents, vacancy rates, lease terms, property sales, new construction listings and property valuation estimates. Reis’s products are designed to meet the demand for timely and accurate information to support the decision-making of property owners, developers, builders, banks and non-bank lenders, equity investors and service providers. These real estate professionals require access to timely information on both the performance and pricing of assets, including detailed data on market transactions, supply, absorption, rents and sale prices. This information is critical to all aspects of valuing assets and financing their acquisition, development and construction.

Discontinued Operations – Residential Development Activities

Prior to May 2007, the name of the Company was Wellsford Real Properties, Inc. (“Wellsford”). Wellsford, which was originally formed on January 8, 1997, acquired the Reis Services business by merger in May 2007 (the “Merger”). Wellsford’s primary operating activities immediately prior to the Merger, and conducted through its subsidiaries, were the development, construction and sale of three residential projects and its approximate 23% ownership interest in the Reis Services business. The Company completed the sale of the remaining units at its Colorado project in September 2009, sold its Claverack, New York project in bulk in February 2010, sold its remaining project in East Lyme, Connecticut in bulk in April 2011, and settled construction defect litigation at the aforementioned Colorado project in 2012.

See Note 3 for additional information regarding the Company’s segments.

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Restricted Cash and Investments - Additional Information (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Cash And Cash Equivalents [Abstract]
Restricted cash	$ 216,835	$ 216,702

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Stock Plans and Other Incentives - Option Activity and Other Plan Data (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding at beginning of period, Options	627,724	645,448
Granted, Options
Exercised, Options
Cancelled through cash settlement, Options	(8,862)
Forfeited/cancelled/expired, Options
Outstanding at end of period, Options	618,862	645,448
Options exercisable at end of period, Options	618,862	420,488
Options exercisable which can be settled in cash, Options	8,862	35,448
Outstanding at beginning of period, Weighted-Average Exercise Price	$ 9.05	$ 8.94
Granted, Weighted-Average Exercise Price
Exercised, Weighted-Average Exercise Price
Cancelled through cash settlement, Weighted-Average Exercise Price	$ (4.09)
Forfeited/cancelled/expired, Weighted-Average Exercise Price
Outstanding at end of period, Weighted-Average Exercise Price	$ 9.12	$ 8.94
Options exercisable at end of period, Weighted-Average Exercise Price	$ 9.12	$ 9.43
Options exercisable which can be settled in cash, Weighted-Average Exercise Price	$ 4.09	$ 4.67

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Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 15,787,761	$ 10,559,899
Restricted cash and investments	216,835	216,702
Accounts receivable, net	5,124,171	11,386,584
Prepaid and other assets	2,173,767	2,787,909
Assets attributable to discontinued operations	3,500	8,500
Total current assets	23,306,034	24,959,594
Furniture, fixtures and equipment, net of accumulated depreciation of $1,962,094 and $1,905,933, respectively	864,761	853,377
Intangible assets, net of accumulated amortization of $29,917,266 and $28,764,189, respectively	15,612,310	15,687,117
Deferred tax asset, non-current portion, net	21,586,520	21,316,520
Goodwill	54,824,648	54,824,648
Other assets	204,095	225,528
Total assets	116,398,368	117,866,784
Current liabilities:
Current portion of debt
Accrued expenses and other liabilities	1,991,795	3,578,227
Liability for option cancellations	123,713	268,341
Deferred revenue	19,251,022	20,284,178
Liabilities attributable to discontinued operations	507,352	342,138
Total current liabilities	21,873,882	24,472,884
Other long-term liabilities	536,456	522,941
Total liabilities	22,410,338	24,995,825
Commitments and contingencies
Stockholders' equity:
Common stock, $0.02 par value per share, 101,000,000 shares authorized, 11,101,665 and 10,916,441 shares issued and outstanding, respectively	222,032	218,328
Additional paid in capital	103,161,958	102,717,693
Retained earnings (deficit)	(9,395,960)	(10,065,062)
Total stockholders' equity	93,988,030	92,870,959
Total liabilities and stockholders' equity	$ 116,398,368	$ 117,866,784

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Fair Value of Financial Instruments - Additional Information (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Fair Value Disclosures [Abstract]
Debt outstanding	$ 0	$ 0

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Consolidated Statement of Changes in Stockholders' Equity (USD $)	Total	Common Shares	Paid in Capital	Retained Earnings (Deficit)
Balance at Dec. 31, 2013	$ 92,870,959	$ 218,328	$ 102,717,693	$ (10,065,062)
Balance, shares at Dec. 31, 2013		10,916,441
Shares issued for vested employees restricted stock units	2,893	2,893	(2,893)
Shares issued for vested employees restricted stock units, shares		144,660
Shares issued for settlement of vested director restricted stock units	811	811	(811)
Shares issued for settlement of vested director restricted stock units, shares		40,564
Stock based compensation	447,969		447,969
Net income	669,102			669,102
Balance at Mar. 31, 2014	$ 93,988,030	$ 222,032	$ 103,161,958	$ (9,395,960)
Balance, shares at Mar. 31, 2014		11,101,665

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Debt - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Oct. 31, 2012
Debt Instrument [Line Items]
Debt outstanding	$ 0	$ 0
Revolver [Member]
Debt Instrument [Line Items]
Amount of revolving credit facility			10,000,000
Expiry period of revolver	3 years
Revolving credit facility, interest rate description	LIBOR + 2.00% per annum (for LIBOR loans) or the greater of 1.00% or the bank's prime rate minus 0.50% per annum (for base rate loans)
Commitment fee	50,000
Date of expiry	Oct. 16, 2015
Unused credit facility fee	0.25%
Borrowings under Revolver	$ 0	$ 0
Revolver [Member] | Base Rate Loan [Member]
Debt Instrument [Line Items]
Base rate loan	1.00%
Rate of Base Rate Loans	(0.50%)
Revolver [Member] | LIBOR Loans [Member]
Debt Instrument [Line Items]
Rate of Base Rate Loans	2.00%

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Identified Intangible Assets

The amount of identified intangible assets, including the respective amounts of accumulated amortization, are as follows:

	March 31,           2014		December 31,         2013
Database	$	17,745,000	$	17,149,000
Accumulated amortization		(13,651,000)		(13,238,000)
Database, net		4,094,000		3,911,000
Customer relationships		14,100,000		14,100,000
Accumulated amortization		(6,658,000)		(6,417,000)
Customer relationships, net		7,442,000		7,683,000
Web site		10,884,000		10,402,000
Accumulated amortization		(7,518,000)		(7,095,000)
Web site, net		3,366,000		3,307,000
Acquired below market lease		2,800,000		2,800,000
Accumulated amortization		(2,090,000)		(2,014,000)
Acquired below market lease, net		710,000		786,000
Intangibles, net	$	15,612,000	$	15,687,000

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Income Taxes - Components of Income Tax Expense (Benefit) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]
Current Federal alternative minimum tax ("AMT") expense
Current state and local tax expense
Deferred Federal tax expense	366,000	138,000
Deferred state and local tax expense	4,000	28,000
Consolidated income tax expense, including taxes attributable to discontinued operations	370,000	166,000
Less income tax (benefit) attributable to discontinued operations	(235,000)	(99,000)
Income tax expense	$ 605,000	$ 265,000

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Stock Plans and Other Incentives (Tables)

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Option Activity and Other Plan Data

The following table presents option activity and other plan data for the three months ended March 31, 2014 and 2013:

	For the Three  Months Ended March 31,
	2014				2013
	Options		Weighted- Average Exercise Price		Options		Weighted- Average Exercise Price
Outstanding at beginning of period		627,724	$	9.05		645,448	$	8.94
Granted		—	$	—		—	$	—
Exercised		—	$	—		—	$	—
Cancelled through cash settlement		(8,862)	$	(4.09)		—	$	—
Forfeited/cancelled/expired		—	$	—		—	$	—
Outstanding at end of period		618,862	$	9.12		645,448	$	8.94
Options exercisable at end of period		618,862	$	9.12		420,488	$	9.43
Options exercisable which can be settled in cash		8,862	$	4.09		35,448	$	4.67

Changes in RSUs

The following table presents the changes in RSUs outstanding for the three months ended March 31, 2014 and 2013:

	For the Three Months Ended          March 31,
	2014		2013
Outstanding at beginning of period		365,686		469,848
Granted		93,225		94,884
Common stock delivered (A)		(185,224)		(180,074)
Forfeited		(7,345)		(1,800)
Outstanding at end of period		266,342		382,858
Intrinsic value (B)	$	4,807,000	$	5,950,000
(A)   In the 2014 period, all of the vested RSUs were issued as shares. The 2013 period includes 70,897 shares which were used to settle minimum employee withholding tax obligations for 16 employees of approximately $1,109,000. A net of 109,177 shares of common stock were delivered in the first quarter of 2013. (B)   For purposes of this calculation, the Company’s closing stock prices were $18.05 and $15.54 per share on March 31, 2014 and 2013, respectively.

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Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 669,102	$ 250,434
Adjustments to reconcile to net cash provided by operating activities:
Deferred tax provision	370,000	166,000
Depreciation	91,760	78,496
Amortization of intangible assets	1,153,077	1,134,764
Stock based compensation charges	447,969	491,521
Changes in assets and liabilities:
Restricted cash and investments	(133)	(160)
Accounts receivable, net	6,262,413	4,757,092
Prepaid and other assets	575	(53,521)
Accrued expenses and other liabilities	(1,407,703)	(1,546,853)
Liability for option cancellations	(12,850)	88,974
Deferred revenue	(1,033,156)	(1,350,660)
Net cash provided by operating activities	6,541,054	4,016,087
CASH FLOWS FROM INVESTING ACTIVITIES:
Web site and database development costs	(1,078,270)	(1,086,475)
Furniture, fixtures and equipment additions	(103,144)	(122,084)
Cash (used in) investing activities	(1,181,414)	(1,208,559)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for option cancellations and restricted stock units	(131,778)	(1,109,475)
Cash (used in) financing activities	(131,778)	(1,109,475)
Net increase in cash and cash equivalents	5,227,862	1,698,053
Cash and cash equivalents, beginning of period	10,559,899	4,960,850
Cash and cash equivalents, end of period	15,787,761	6,658,903
SUPPLEMENTAL INFORMATION:
Cash paid during the period for interest	6,389
Cash paid during the period for income taxes, net of refunds	37,121	15,183
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Shares issued for vested employee restricted stock units	2,893	2,184
Shares issued for settlement of vested director restricted stock units	811
Disposal of fully depreciated furniture, fixtures and equipment	$ 35,599	$ 17,572

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Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]
Accumulated depreciation of furniture, fixtures and equipment	$ 1,962,094	$ 1,905,933
Accumulated amortization of intangible assets	$ 29,917,266	$ 28,764,189
Common stock, par value	$ 0.02	$ 0.02
Common stock, shares authorized	101,000,000	101,000,000
Common stock, shares issued	11,101,665	10,916,441
Common stock, shares outstanding	11,101,665	10,916,441

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Common Share

10. Earnings Per Common Share

Basic earnings per common share is computed based upon the weighted average number of common shares outstanding during the period. Diluted earnings per common share is based upon the increased number of common shares that would be outstanding assuming the exercise of dilutive common share options and the consideration of restricted stock awards. The following table details the computation of earnings per common share, basic and diluted:

	For the Three Months Ended March 31,
	2014		2013
Numerator for basic per share calculation:
Income from continuing operations for basic calculation	$	1,046,980	$	402,066
(Loss) from discontinued operations, net of income tax (benefit)		(377,878)		(151,632)
Net income for basic calculation	$	669,102	$	250,434
Numerator for diluted per share calculation:
Income from continuing operations	$	1,046,980	$	402,066
Adjustments to income from continuing operations for the income statement impact of dilutive securities		(12,850)		—
Income from continuing operations for dilution calculation		1,034,130		402,066
(Loss) from discontinued operations, net of income tax (benefit)		(377,878)		(151,632)
Net income for dilution calculation	$	656,252	$	250,434
Denominator:
Weighted average common shares – basic		10,978,716		10,828,396
Effect of dilutive securities:
RSUs		174,938		292,981
Stock options		309,676		226,374
Weighted average common shares – diluted		11,463,330		11,347,751
Per common share amounts – basic:
Income from continuing operations	$	0.10	$	0.04
(Loss) from discontinued operations		(0.04)		(0.02)
Net income	$	0.06	$	0.02
Per common share amounts – diluted:
Income from continuing operations	$	0.09	$	0.04
(Loss) from discontinued operations		(0.03)		(0.02)
Net income	$	0.06	$	0.02

Potentially dilutive securities include all stock based awards. For the three months ended March 31, 2014, only certain equity awards were antidilutive. For the three months ended March 31, 2013, certain equity awards and option awards accounted for under the liability method, were antidilutive.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 25, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	REIS
Entity Registrant Name	Reis, Inc.
Entity Central Index Key	0001038222
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,101,665

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

From time to time, the Company has been, is or may in the future be a defendant in various legal actions arising in the normal course of business. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated.

Reis has purchased insurance with respect to construction defect and completed operations at its past real estate projects. Reis has, from time to time, been exposed to various claims associated with the development, construction and sale of condominium units, single family homes or lots. Claims related to dissatisfaction by homeowners and homeowners associations with the construction of condominiums, homes and amenities by us and/or our developer partners in any condominium or subdivision development, or other matters, may result in litigation costs, remediation costs, warranty expenses or settlement costs which could be material to the Company’s reportable discontinued operating income (loss), or its consolidated financial position or cash flows. It would not have any effect on the Company’s income from continuing operations.

Reis, Inc. and two of its subsidiaries (GP LLC and Wellsford Park Highlands Corp. (“WPHC”)) were the subject of a suit brought by the homeowners association at the Company’s former 259-unit Gold Peak condominium project outside of Denver, Colorado. This suit was filed in District Court in Douglas County, Colorado on October 19, 2010, seeking monetary damages (not quantified at the time) relating to design and construction defects at the Gold Peak project. Tri-Star, the construction manager/general contractor for the project (not affiliated with Reis) and two former senior officers of Reis, Inc. (Jeffrey H. Lynford, who was also

previously a director of the Company, and David M. Strong) were also named as defendants in the suit. In October 2011, experts for the plaintiff delivered a report alleging a cost to repair of approximately $19,000,000. Trial commenced on February 21, 2012 and a jury rendered its verdict on March 13, 2012 finding Reis, GP LLC and Tri-Star jointly and severally liable for an aggregate of $18,200,000, plus other costs of approximately $756,000.

As of December 31, 2011, based on the best available information at that time, the Company recorded a charge of approximately $4,460,000 in discontinued operations, representing the low end of the Company’s expected range of net exposure. This amount reflected an aggregate minimum liability of approximately $7,740,000, less the then minimum expected insurance recovery of $3,000,000 and other previously reserved amounts. At March 31, 2012, as a result of the verdict, the Company recorded an additional charge of $14,216,000 in discontinued operations in the first quarter of 2012, to bring the Company’s liability up to the $18,200,000 judgment, plus other costs of approximately $756,000. As of March 31, 2012, the Company, in accordance with the applicable accounting literature, could no longer conclude that $3,000,000 of insurance was probable of being recovered. These charges were reflected in discontinued operations and negatively impacted consolidated net income (loss), but did not impact income from continuing operations.

On June 20, 2012, following denial of all of the defendants’ post-trial motions, Reis, GP LLC and WPHC reached a settlement with the plaintiff, the Gold Peak homeowners association, providing for a total payment of $17,000,000. Of this amount, $5,000,000 was paid on August 3, 2012 and the remaining $12,000,000 was paid on October 15, 2012, in accordance with the settlement terms. In reaching the decision to settle, Reis’s management and Board considered, among other factors: (1) the amount of the settlement versus the potential for an ultimately greater judgment after appeal, including additional costs and post-judgment interest; (2) the benefits of the clarity of settling the case at this time versus continuing uncertainty; and (3) the strong cash flow generation of Reis Services’s core business. As a result of the settlement, in the second quarter of 2012 the Company reversed $1,956,000 of the previously recorded charge. In December 2012, the Company recovered $712,500, which offset a portion of the previously recorded charge, resulting in the net litigation charge for the year ended December 31, 2012 of approximately $11,547,000. During the year ended December 31, 2013, the Company recovered $80,000.

In connection with the development of Gold Peak, the Company purchased a commercial general liability “WRAP” insurance policy from a predecessor of ACE Westchester (“ACE”) covering the Company (including its subsidiaries) and its former officers, Tri-Star and Tri-Star’s subcontractors. The Company, upon advice of counsel and based on a reading of the policy, has taken the position that a total of $9,000,000 (and possibly $12,000,000) of coverage is available for this claim. ACE has taken the position that only $3,000,000 of coverage (including defense costs) was provided. The Company has filed suit against ACE in District Court in Douglas County, Colorado on January 18, 2012, alleging failure to cover this claim, bad faith and other related causes of action. In particular, the Gold Peak litigation could have been settled for $12,000,000 or less prior to the trial. The Company takes the position that ACE is liable for all damages stemming from this failure to engage and settle. Additionally, the Company has claims against multiple additional insurance companies under policies maintained by the Company, including Reis’s directors’ and officers’ insurance policy, and against Reis’s former insurance broker. Trial in this comprehensive insurance action was scheduled for June 2014; however, at the request of the defendants, the court granted a continuance on April 14, 2014 and a new trial date has not been set. The Company has also brought separate claims against Tri-Star, the subcontractors, the architect and a third party inspector engaged at Gold Peak, relating to those parties’ actions on the project. A trial for these actions is scheduled for October 2015.

Reis continues to consider its options with respect to contribution or other actions against potentially responsible third parties and/or co-defendants in the lawsuit, and will pursue all reasonable efforts to mitigate the effects of this settlement. There is no assurance that the Company will be successful in these additional recovery efforts.

The Company is not a party to any other litigation that could reasonably be foreseen to be material to the Company.

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Consolidated Statements of Operations (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Subscription revenue	$ 9,946,045	$ 8,234,328
Cost of sales of subscription revenue	1,916,345	1,681,404
Gross profit	8,029,700	6,552,924
Operating expenses:
Sales and marketing	2,552,020	1,968,966
Product development	763,103	721,566
General and administrative expenses	3,037,442	3,169,311
Total operating expenses	6,352,565	5,859,843
Other income (expenses):
Interest and other income	3,058	2,198
Interest expense	(28,213)	(28,213)
Total other income (expenses)	(25,155)	(26,015)
Income before income taxes and discontinued operations	1,651,980	667,066
Income tax expense	605,000	265,000
Income from continuing operations	1,046,980	402,066
(Loss) from discontinued operations, net of income tax (benefit) of $(235,000) and $(99,000), respectively	(377,878)	(151,632)
Net income	$ 669,102	$ 250,434
Per share amounts - basic:
Income from continuing operations	$ 0.10	$ 0.04
Net income	$ 0.06	$ 0.02
Per share amounts - diluted:
Income from continuing operations	$ 0.09	$ 0.04
Net income	$ 0.06	$ 0.02
Weighted average number of common shares outstanding:
Basic	10,978,716	10,828,396
Diluted	11,463,330	11,347,751

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Intangible Assets

3 Months Ended

Mar. 31, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

5. Intangible Assets

The amount of identified intangible assets, including the respective amounts of accumulated amortization, are as follows:

	March 31,           2014		December 31,         2013
Database	$	17,745,000	$	17,149,000
Accumulated amortization		(13,651,000)		(13,238,000)
Database, net		4,094,000		3,911,000
Customer relationships		14,100,000		14,100,000
Accumulated amortization		(6,658,000)		(6,417,000)
Customer relationships, net		7,442,000		7,683,000
Web site		10,884,000		10,402,000
Accumulated amortization		(7,518,000)		(7,095,000)
Web site, net		3,366,000		3,307,000
Acquired below market lease		2,800,000		2,800,000
Accumulated amortization		(2,090,000)		(2,014,000)
Acquired below market lease, net		710,000		786,000
Intangibles, net	$	15,612,000	$	15,687,000

The Company capitalized approximately $596,000 and $528,000 to the database intangible asset and $482,000 and $558,000 to the web site intangible asset during the three months ended March 31, 2014 and 2013, respectively.

Amortization expense for intangible assets aggregated approximately $1,153,000 for the three months ended March 31, 2014, of which approximately $413,000 related to the database, which is charged to cost of sales, approximately $241,000 related to customer relationships, which is charged to sales and marketing expense, approximately $423,000, related to web site development, which is charged to product development expense, and approximately $76,000 related to the value ascribed to the below market terms of the office lease, which is charged to general and administrative expense, all in the Reis Services segment. Amortization expense for intangible assets aggregated approximately $1,135,000 for the three months ended March 31, 2013, of which approximately $366,000 related to the database, approximately $244,000 related to customer relationships, approximately $449,000 related to web site development, and approximately $76,000 related to the value ascribed to the below market terms of the office lease.

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Restricted Cash and Investments

3 Months Ended

Mar. 31, 2014

Cash And Cash Equivalents [Abstract]

Restricted Cash and Investments

4. Restricted Cash and Investments

Restricted cash and investments represents a security deposit for the 530 Fifth Avenue corporate office space. The Company provided the lessor a bank-issued letter of credit, which is fully collateralized by a certificate of deposit issued by that bank. The restricted cash balance was approximately $217,000 at March 31, 2014 and December 31, 2013.

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

The components of the income tax expense (benefit) are as follows:

	For the Three Months Ended March 31,
	2014		2013
Current Federal alternative minimum tax (“AMT”) expense	$	—	$	—
Current state and local tax expense		—		—
Deferred Federal tax expense		366,000		138,000
Deferred state and local tax expense		4,000		28,000
Consolidated income tax expense, including taxes attributable to discontinued operations (A)		370,000		166,000
Less income tax (benefit) attributable to discontinued operations		(235,000)		(99,000)
Income tax expense (B)	$	605,000	$	265,000

(A) Includes income taxes attributable to income (loss) from discontinued operations.

(B) Reflects the tax expense from continuing operations as reported on the consolidated statements of income for the period presented.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

12. Fair Value of Financial Instruments

At March 31, 2014 and December 31, 2013, the Company’s financial instruments included receivables, payables, accrued expenses, other liabilities and debt. The fair values of these financial instruments, excluding debt, were not materially different from their recorded values at March 31, 2014 and December 31, 2013. The Company had no debt outstanding at March 31, 2014 and December 31, 2013. See Note 6 for additional information about the Company’s debt.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Stockholders' Equity

8. Stockholders’ Equity

Between December 2008 and August 2011, the Company’s Board of Directors (the “Board”) authorized the repurchase of up to an aggregate amount of $5,000,000 of the Company’s common stock, of which approximately $551,000 remained available for repurchases as of December 31, 2013. Although the Company has remaining availability under a prior authorization, such authorization was at a time when the Company’s stock price and cash position were significantly different than where they were at December 31, 2013. As a result, management would probably seek a new authorization from the Board if the Company were to consider stock repurchases in the future. During the three months ended March 31, 2014 and 2013, the Company did not repurchase any shares of common stock.

The Company did not declare or distribute any dividends during the three months ended March 31, 2014 and 2013.

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Debt

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Debt

6. Debt

The Company had no debt outstanding at March 31, 2014 and December 31, 2013.

In October 2012, Reis Services, as borrower, and the Company, as guarantor, entered into a loan and security agreement with Capital One, National Association, as lender, for a $10,000,000 revolving credit facility (the “Revolver”). The Revolver has a three year term expiring on October 16, 2015, and any borrowings bear interest at a rate of LIBOR + 2.00% per annum (for LIBOR loans) or the greater of 1.00% or the bank’s prime rate minus 0.50% per annum (for base rate loans) and is subject to an unused facility fee of 0.25% per annum. The Company paid a commitment fee of $50,000 in connection with the closing. The Revolver is secured by a security interest in substantially all of the tangible and intangible assets of Reis Services and a pledge by the Company of its membership interests in Reis Services. The Revolver also contains customary affirmative and negative covenants, including minimum financial covenants, as defined in the agreement; all of the covenants were met at March 31, 2014 and December 31, 2013. No borrowings were made on the Revolver during the three months ended March 31, 2014 or the year ended December 31, 2013.

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Income Taxes

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

The components of the income tax expense (benefit) are as follows:

	For the Three Months Ended March 31,
	2014		2013
Current Federal alternative minimum tax (“AMT”) expense	$	—	$	—
Current state and local tax expense		—		—
Deferred Federal tax expense		366,000		138,000
Deferred state and local tax expense		4,000		28,000
Consolidated income tax expense, including taxes attributable to discontinued operations (A)		370,000		166,000
Less income tax (benefit) attributable to discontinued operations		(235,000)		(99,000)
Income tax expense (B)	$	605,000	$	265,000

(A) Includes income taxes attributable to income (loss) from discontinued operations.

(B) Reflects the tax expense from continuing operations as reported on the consolidated statements of income for the period presented.

During the three months ended March 31, 2014, New York State enacted a law to reduce corporate tax rates, effective in future years. As a consequence, the Company evaluated all elements affecting the balance of its net deferred tax assets, including the availability of New York State and New York City net operating loss carryforwards and this change in the law in New York State. The impact of this evaluation resulted in a net increase in the deferred tax asset of $29,000 during the three months ended March 31, 2014.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net deferred tax asset was approximately $23,419,000 and $23,789,000 at March 31, 2014 and December 31, 2013, respectively, of which $1,832,000 and $2,472,000 is reflected as a net current asset in prepaid and other assets and $21,587,000 and $21,317,000 is reflected separately as a net non-current asset in the accompanying consolidated balance sheets. The significant portion of the deferred tax items primarily relates to: (1) NOL carryforwards; (2) Federal AMT credit carryforwards; and (3) stock based compensation, all as they relate to deferred tax assets; and (4) the deferred tax liability resulting from the intangible assets recorded at the time of the Merger.

The Company has aggregate Federal, state and local NOL carryforwards aggregating approximately $66,006,000 at December 31, 2013. These NOLs include NOLs generated subsequent to the Merger, losses from the Reis Services business prior to the Merger, losses obtained from the Company’s 1998 merger with Value Property Trust (“VLP”) and the Company’s operating losses prior to the Merger. Approximately $25,158,000 of these Federal NOLs are subject to an annual limitation, whereas the remaining balance of approximately $40,848,000 is not subject to such a limitation. There is an annual limitation on the use of NOLs after an ownership change, pursuant to Section 382 of the Internal Revenue Code. As a result of the Merger, the Company experienced such an ownership change which resulted in a new annual limitation of $2,779,000. However, because of the accumulation of annual limitations, it is expected that the use of NOLs will not be limited by expiration. The New York State law discussed above limits the amount of existing NOL’s which could be used each year in that state; however, all such losses are expected to be utilized in the future.

A valuation allowance is required to reduce deferred tax assets if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As a result of management’s current evaluation of the Company’s future operations, it has been determined that no valuation allowance was necessary at March 31, 2014 or December 31, 2013.

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Stock Plans and Other Incentives

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Plans and Other Incentives

9. Stock Plans and Other Incentives

The Company has adopted certain incentive plans for the purpose of attracting and retaining the Company’s directors, officers and employees by having the ability to issue options, restricted stock units (“RSUs”), or stock awards. Awards granted under the Company’s incentive plans expire ten years from the date of grant and vest over periods ranging generally from three to five years for employees.

Option Awards

The following table presents option activity and other plan data for the three months ended March 31, 2014 and 2013:

	For the Three  Months Ended March 31,
	2014				2013
	Options		Weighted- Average Exercise Price		Options		Weighted- Average Exercise Price
Outstanding at beginning of period		627,724	$	9.05		645,448	$	8.94
Granted		—	$	—		—	$	—
Exercised		—	$	—		—	$	—
Cancelled through cash settlement		(8,862)	$	(4.09)		—	$	—
Forfeited/cancelled/expired		—	$	—		—	$	—
Outstanding at end of period		618,862	$	9.12		645,448	$	8.94
Options exercisable at end of period		618,862	$	9.12		420,488	$	9.43
Options exercisable which can be settled in cash		8,862	$	4.09		35,448	$	4.67

Certain outstanding options allow the option holder to receive from the Company, in cancellation of the holder’s option, a cash payment with respect to each cancelled option equal to the amount, if any, by which the fair market value of the share of stock underlying the option exceeds the exercise price of such option. The Company accounts for these options as liability awards. This liability is adjusted at the end of each reporting period to reflect: (1) the net cash payments to option holders made during each period; (2) the impact of the exercise and expiration of options; and (3) changes in the market price of the Company’s common stock. Changes in the settlement value of option awards treated under the liability method are reflected as income or expense in the statements of operations.

At March 31, 2014, the liability for option cancellations was approximately $124,000 based upon the difference in the closing stock price of the Company’s common stock at March 31, 2014 of $18.05 per share and the individual exercise prices of the outstanding 8,862 “in-the-money” options that were accounted for as a liability award at that date. At December 31, 2013, the liability for option cancellations was approximately $268,000 based upon the difference in the closing stock price of the Company at December 31, 2013 of $19.23 per share and the individual exercise prices of the outstanding 17,724 “in-the-money” options that were accounted for as a liability award at that date. The Company recorded a compensation (benefit) expense of approximately $(13,000) and $89,000 for the three months ended March 31, 2014 and 2013, respectively, in general and administrative expenses in the consolidated statements of operations related to the respective changes in the amount of the liability for option cancellations.

RSU Awards

The following table presents the changes in RSUs outstanding for the three months ended March 31, 2014 and 2013:

	For the Three Months Ended          March 31,
	2014		2013
Outstanding at beginning of period		365,686		469,848
Granted		93,225		94,884
Common stock delivered (A)		(185,224)		(180,074)
Forfeited		(7,345)		(1,800)
Outstanding at end of period		266,342		382,858
Intrinsic value (B)	$	4,807,000	$	5,950,000
(A)   In the 2014 period, all of the vested RSUs were issued as shares. The 2013 period includes 70,897 shares which were used to settle minimum employee withholding tax obligations for 16 employees of approximately $1,109,000. A net of 109,177 shares of common stock were delivered in the first quarter of 2013. (B)   For purposes of this calculation, the Company’s closing stock prices were $18.05 and $15.54 per share on March 31, 2014 and 2013, respectively.

In February 2014, an aggregate of 91,431 RSUs were granted to employees, which RSUs vest one-third a year over three years and had a grant date fair value of $18.13 per RSU (which was determined based on the closing stock price of the Company’s common stock on the applicable date of grant). In February 2013, an aggregate of 91,356 RSUs were granted to employees, which RSUs vest one-third a year over three years and had a grant date fair value of $16.20 per RSU (which was determined based on the closing stock price of the Company’s common stock on the applicable date of grant). The awards granted to employees in the first quarter of 2014 and 2013 are treated as equity awards and the grant date fair value is charged to compensation expense at the corporate level on a straight-line basis over the vesting periods.

In January 2014, an aggregate of 1,794 RSUs were granted to non-employee directors (with a grant date fair value of $19.23 per RSU) related to the equity component of their compensation. In January 2013, an aggregate of 3,528 RSUs were granted to non-employee directors (with an average grant date fair value of $13.03 per RSU) related to the equity component of their compensation. In each case, the grant date fair value was determined as of the last trading day of the quarter for which the RSUs were being received as compensation. The RSUs are immediately vested, but are not deliverable to non-employee directors until six months after termination of their service as a director.

Option and RSU Expense Information

The Company recorded non-cash compensation expense of approximately $448,000 and $492,000, including $34,500 and $46,000 related to non-employee director equity compensation, for the three months ended March 31, 2014 and 2013, respectively, related to all stock options and RSUs accounted for as equity awards, as a component of general and administrative expenses in the statements of operations.

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Intangible Assets - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization expense for intangible assets	$ 1,153,077	$ 1,134,764
Database [Member]
Finite-Lived Intangible Assets [Line Items]
Amount capitalize intangible asset	596,000	528,000
Amortization expense for intangible assets	413,000	366,000
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense for intangible assets	241,000	244,000
Web Site [Member]
Finite-Lived Intangible Assets [Line Items]
Amount capitalize intangible asset	482,000	558,000
Amortization expense for intangible assets	423,000	449,000
Acquired Below Market Lease [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense for intangible assets	$ 76,000	$ 76,000

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Condensed Balance Sheet and Operating Data for Segments

The following tables present condensed balance sheet and operating data for these segments:

(amounts in thousands)
Condensed Balance Sheet Data March 31, 2014	Reis            Services		Discontinued      Operations (A)		Other (B)		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	15,629	$	—	$	159	$	15,788
Restricted cash and investments		217		—		—		217
Accounts receivable, net		5,124		—		—		5,124
Prepaid and other assets		208		—		1,965		2,173
Assets attributable to discontinued operations		—		—		4		4
Total current assets		21,178		—		2,128		23,306
Furniture, fixtures and equipment, net		842		—		22		864
Intangible assets, net		15,612		—		—		15,612
Deferred tax asset, net		285		—		21,302		21,587
Goodwill		57,203		—		(2,378)		54,825
Other assets		204		—		—		204
Total assets	$	95,324	$	—	$	21,074	$	116,398
Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—	$	—	$	—
Accrued expenses and other liabilities		1,430		—		562		1,992
Liability for option cancellations		—		—		124		124
Deferred revenue		19,251		—		—		19,251
Liabilities attributable to discontinued operations		—		271		236		507
Total current liabilities		20,681		271		922		21,874
Other long-term liabilities		536		—		—		536
Deferred tax liability, net		20,031		—		(20,031)		—
Total liabilities		41,248		271		(19,109)		22,410
Total stockholders’ equity		54,076		(271)		40,183		93,988
Total liabilities and stockholders’ equity	$	95,324	$	—	$	21,074	$	116,398

  (A) Includes the assets and liabilities of the Company’s discontinued Residential Development Activities segment, to the extent that such assets and liabilities existed at the date presented.

  (B) Includes cash, other assets and liabilities not specifically attributable to or allocable to a specific operating segment.

(amounts in thousands)
Condensed Balance Sheet Data December 31, 2013	Reis            Services		Discontinued      Operations (A)		Other (B)		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	10,347	$	—	$	213	$	10,560
Restricted cash and investments		217		—		—		217
Accounts receivable, net		11,386		—		—		11,386
Prepaid and other assets		187		—		2,601		2,788
Assets attributable to discontinued operations		—		—		9		9
Total current assets		22,137		—		2,823		24,960
Furniture, fixtures and equipment, net		829		—		24		853
Intangible assets, net		15,687		—		—		15,687
Deferred tax asset, net		285		—		21,032		21,317
Goodwill		57,203		—		(2,378)		54,825
Other assets		225		—		—		225
Total assets	$	96,366	$	—	$	21,501	$	117,867
Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—	$	—	$	—
Accrued expenses and other liabilities		2,623		—		956		3,579
Liability for option cancellations		—		—		268		268
Deferred revenue		20,284		—		—		20,284
Liabilities attributable to discontinued operations		—		271		71		342
Total current liabilities		22,907		271		1,295		24,473
Other long-term liabilities		523		—		—		523
Deferred tax liability, net		18,957		—		(18,957)		—
Total liabilities		42,387		271		(17,662)		24,996
Total stockholders’ equity		53,979		(271)		39,163		92,871
Total liabilities and stockholders’ equity	$	96,366	$	—	$	21,501	$	117,867

  (A) Includes the assets and liabilities of the Company’s discontinued Residential Development Activities segment, to the extent that such assets and liabilities existed at the date presented.

  (B) Includes cash, other assets and liabilities not specifically attributable to or allocable to a specific operating segment.

(amounts in thousands)
Condensed Operating Data for the Three Months Ended March 31, 2014	Reis           Services		Discontinued       Operations (A)		Other (B)		Consolidated
Subscription revenue	$	9,946	$	—	$	—	$	9,946
Cost of sales of subscription revenue		1,916		—		—		1,916
Gross profit		8,030		—		—		8,030
Operating expenses:
Sales and marketing		2,552		—		—		2,552
Product development		763		—		—		763
General and administrative expenses		1,892		—		1,146		3,038
Total operating expenses		5,207		—		1,146		6,353
Other income (expenses):
Interest and other income		3		—		—		3
Interest expense		(28)		—		—		(28)
Total other income (expenses)		(25)		—		—		(25)
Income (loss) before income taxes and discontinued operations	$	2,798	$	—	$	(1,146)	$	1,652
(Loss) from discontinued operations, before income taxes	$	—	$	(28)	$	(585)	$	(613)

Condensed Operating Data for the Three Months Ended March 31, 2013	Reis           Services		Discontinued       Operations (A)		Other (B)		Consolidated
Subscription revenue	$	8,234	$	—	$	—	$	8,234
Cost of sales of subscription revenue		1,681		—		—		1,681
Gross profit		6,553		—		—		6,553
Operating expenses:
Sales and marketing		1,969		—		—		1,969
Product development		722		—		—		722
General and administrative expenses		1,796		—		1,373		3,169
Total operating expenses		4,487		—		1,373		5,860
Other income (expenses):
Interest and other income		2		—		—		2
Interest expense		(28)		—		—		(28)
Total other income (expenses)		(26)		—		—		(26)
Income (loss) before income taxes and discontinued operations	$	2,040	$	—	$	(1,373)	$	667
(Loss) from discontinued operations, before income taxes	$	—	$	—	$	(251)	$	(251)

  (A) Includes the results of the Company’s discontinued Residential Development Activities segment, to the extent that such operations existed during the periods presented.

  (B) Includes interest and other income, depreciation expense and general and administrative expenses that have not been allocated to the operating segments.

Balance of Outstanding Accounts Receivables of Reis Services

The balance of outstanding accounts receivables of Reis Services at March 31, 2014 and December 31, 2013 follows:

	March 31,        2014		December 31,    2013
Accounts receivables	$	5,223,000	$	11,465,000
Allowance for doubtful accounts		(99,000)		(79,000)
Accounts receivables, net	$	5,124,000	$	11,386,000

(Loss) from Discontinued Operations

(Loss) from discontinued operations is comprised of the following:

	For the Three Months Ended March 31,
	2014		2013
Litigation charge, net of recoveries (see Note 11)	$	—	$	—
Other income (expense), net		(613,000)		(251,000)
(Loss) from discontinued operations before income tax		(613,000)		(251,000)
Income tax (benefit) from discontinued operations		(235,000)		(99,000)
(Loss) from discontinued operations, net of income tax (benefit)	$	(378,000)	$	(152,000)

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Organization and Business - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014 Project
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of residential projects before merger	3
Percentage of ownership interest before merger	23.00%

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Stock Plans and Other Incentives - Changes in RSUs (Detail) (RSU [Member], USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
RSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of period	365,686	469,848
Granted	93,225	94,884
Common stock delivered	(185,224)	(180,074)
Forfeited	(7,345)	(1,800)
Outstanding at end of period	266,342	382,858
Intrinsic value	$ 4,807,000	$ 5,950,000

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Consolidated Statements of Operations (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Income tax (benefit) on discontinued operations	$ (235,000)	$ (99,000)

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Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

3. Segment Information

The Company is organized into two separately managed segments: the Reis Services segment and the discontinued Residential Development Activities segment. The following tables present condensed balance sheet and operating data for these segments:

(amounts in thousands)
Condensed Balance Sheet Data March 31, 2014	Reis            Services		Discontinued      Operations (A)		Other (B)		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	15,629	$	—	$	159	$	15,788
Restricted cash and investments		217		—		—		217
Accounts receivable, net		5,124		—		—		5,124
Prepaid and other assets		208		—		1,965		2,173
Assets attributable to discontinued operations		—		—		4		4
Total current assets		21,178		—		2,128		23,306
Furniture, fixtures and equipment, net		842		—		22		864
Intangible assets, net		15,612		—		—		15,612
Deferred tax asset, net		285		—		21,302		21,587
Goodwill		57,203		—		(2,378)		54,825
Other assets		204		—		—		204
Total assets	$	95,324	$	—	$	21,074	$	116,398
Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—	$	—	$	—
Accrued expenses and other liabilities		1,430		—		562		1,992
Liability for option cancellations		—		—		124		124
Deferred revenue		19,251		—		—		19,251
Liabilities attributable to discontinued operations		—		271		236		507
Total current liabilities		20,681		271		922		21,874
Other long-term liabilities		536		—		—		536
Deferred tax liability, net		20,031		—		(20,031)		—
Total liabilities		41,248		271		(19,109)		22,410
Total stockholders’ equity		54,076		(271)		40,183		93,988
Total liabilities and stockholders’ equity	$	95,324	$	—	$	21,074	$	116,398

  (A) Includes the assets and liabilities of the Company’s discontinued Residential Development Activities segment, to the extent that such assets and liabilities existed at the date presented.

  (B) Includes cash, other assets and liabilities not specifically attributable to or allocable to a specific operating segment.

(amounts in thousands)
Condensed Balance Sheet Data December 31, 2013	Reis            Services		Discontinued      Operations (A)		Other (B)		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	10,347	$	—	$	213	$	10,560
Restricted cash and investments		217		—		—		217
Accounts receivable, net		11,386		—		—		11,386
Prepaid and other assets		187		—		2,601		2,788
Assets attributable to discontinued operations		—		—		9		9
Total current assets		22,137		—		2,823		24,960
Furniture, fixtures and equipment, net		829		—		24		853
Intangible assets, net		15,687		—		—		15,687
Deferred tax asset, net		285		—		21,032		21,317
Goodwill		57,203		—		(2,378)		54,825
Other assets		225		—		—		225
Total assets	$	96,366	$	—	$	21,501	$	117,867
Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—	$	—	$	—
Accrued expenses and other liabilities		2,623		—		956		3,579
Liability for option cancellations		—		—		268		268
Deferred revenue		20,284		—		—		20,284
Liabilities attributable to discontinued operations		—		271		71		342
Total current liabilities		22,907		271		1,295		24,473
Other long-term liabilities		523		—		—		523
Deferred tax liability, net		18,957		—		(18,957)		—
Total liabilities		42,387		271		(17,662)		24,996
Total stockholders’ equity		53,979		(271)		39,163		92,871
Total liabilities and stockholders’ equity	$	96,366	$	—	$	21,501	$	117,867

  (A) Includes the assets and liabilities of the Company’s discontinued Residential Development Activities segment, to the extent that such assets and liabilities existed at the date presented.

  (B) Includes cash, other assets and liabilities not specifically attributable to or allocable to a specific operating segment.

(amounts in thousands)
Condensed Operating Data for the Three Months Ended March 31, 2014	Reis           Services		Discontinued       Operations (A)		Other (B)		Consolidated
Subscription revenue	$	9,946	$	—	$	—	$	9,946
Cost of sales of subscription revenue		1,916		—		—		1,916
Gross profit		8,030		—		—		8,030
Operating expenses:
Sales and marketing		2,552		—		—		2,552
Product development		763		—		—		763
General and administrative expenses		1,892		—		1,146		3,038
Total operating expenses		5,207		—		1,146		6,353
Other income (expenses):
Interest and other income		3		—		—		3
Interest expense		(28)		—		—		(28)
Total other income (expenses)		(25)		—		—		(25)
Income (loss) before income taxes and discontinued operations	$	2,798	$	—	$	(1,146)	$	1,652
(Loss) from discontinued operations, before income taxes	$	—	$	(28)	$	(585)	$	(613)

Condensed Operating Data for the Three Months Ended March 31, 2013	Reis           Services		Discontinued       Operations (A)		Other (B)		Consolidated
Subscription revenue	$	8,234	$	—	$	—	$	8,234
Cost of sales of subscription revenue		1,681		—		—		1,681
Gross profit		6,553		—		—		6,553
Operating expenses:
Sales and marketing		1,969		—		—		1,969
Product development		722		—		—		722
General and administrative expenses		1,796		—		1,373		3,169
Total operating expenses		4,487		—		1,373		5,860
Other income (expenses):
Interest and other income		2		—		—		2
Interest expense		(28)		—		—		(28)
Total other income (expenses)		(26)		—		—		(26)
Income (loss) before income taxes and discontinued operations	$	2,040	$	—	$	(1,373)	$	667
(Loss) from discontinued operations, before income taxes	$	—	$	—	$	(251)	$	(251)

  (A) Includes the results of the Company’s discontinued Residential Development Activities segment, to the extent that such operations existed during the periods presented.

  (B) Includes interest and other income, depreciation expense and general and administrative expenses that have not been allocated to the operating segments.

Reis Services

See Note 1 for a description of Reis Services’s business and products at March 31, 2014.

The Company’s largest individual subscriber accounted for 3.0% and 3.6% of Reis Services’s revenue for the three months ended March 31, 2014 and 2013, respectively.

The balance of outstanding accounts receivables of Reis Services at March 31, 2014 and December 31, 2013 follows:

	March 31,        2014		December 31,    2013
Accounts receivables	$	5,223,000	$	11,465,000
Allowance for doubtful accounts		(99,000)		(79,000)
Accounts receivables, net	$	5,124,000	$	11,386,000

Ten subscribers accounted for an aggregate of approximately 38.7% of Reis Services’s accounts receivable at March 31, 2014, including six subscribers in excess of 4.0% with the largest representing 4.9%. Through April 28, 2014, the Company received payments of approximately $2,682,000 or 51.3% against the March 31, 2014 accounts receivable balance.

At March 31, 2014, the largest individual subscriber accounted for 4.6% of deferred revenue.

Discontinued Operations – Residential Development Activities

(Loss) from discontinued operations is comprised of the following:

	For the Three Months Ended March 31,
	2014		2013
Litigation charge, net of recoveries (see Note 11)	$	—	$	—
Other income (expense), net		(613,000)		(251,000)
(Loss) from discontinued operations before income tax		(613,000)		(251,000)
Income tax (benefit) from discontinued operations		(235,000)		(99,000)
(Loss) from discontinued operations, net of income tax (benefit)	$	(378,000)	$	(152,000)

In September 2009, the Company sold the final unit at Gold Peak, the final phase of Palomino Park, a five phase multifamily residential development in Highlands Ranch, Colorado. Gold Peak was a 259 unit condominium project on the remaining 29 acre land parcel at Palomino Park. On March 13, 2012, in connection with litigation regarding construction defects at the Gold Peak project, a jury rendered its verdict, whereby Reis, one of its subsidiaries (Gold Peak at Palomino Park LLC, the developer of the project (“GP LLC”)), and the construction manager/general contractor for the project (Tri-Star Construction West, LLC (“Tri-Star”)) were found jointly and severally liable for an aggregate of $18,200,000, plus other costs of approximately $756,000. On June 20, 2012, following denial of all of the defendants’ post-trial motions, Reis and its subsidiaries reached a settlement with the plaintiff, the Gold Peak homeowners association, providing for a total payment of $17,000,000. Of this amount, $5,000,000 was paid on August 3, 2012 and the remaining $12,000,000 was paid on October 15, 2012, in accordance with the settlement terms. During the three months ended March 31, 2014 and 2013, the Company did not recover any amounts from other potentially responsible parties. For additional information pertaining to the Gold Peak litigation, see Note 11.

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Segment Information - Additional Information (Detail) (USD $)	3 Months Ended	0 Months Ended		1 Months Ended		0 Months Ended	3 Months Ended	0 Months Ended	3 Months Ended			1 Months Ended
	Mar. 31, 2014 Segment	Jun. 30, 2012 Gold Peak [Member]	Mar. 13, 2012 Gold Peak [Member]	Mar. 31, 2012 Gold Peak [Member]	Sep. 30, 2009 Gold Peak [Member] acre Segment	Aug. 03, 2012 Gold Peak [Member] First Installment [Member]	Mar. 31, 2014 Gold Peak [Member] First Installment [Member]	Oct. 15, 2012 Gold Peak [Member] Second Installment [Member]	Mar. 31, 2014 Gold Peak [Member] Second Installment [Member]	Mar. 31, 2014 Reis Services [Member] Subscriber	Mar. 31, 2013 Reis Services [Member]	Apr. 28, 2014 Reis Services [Member] Subsequent Event [Member]	Mar. 31, 2014 Reis Services [Member] Minimum [Member] Subscriber	Mar. 31, 2014 Reis Services [Member] Maximum [Member]
Segment Reporting Information [Line Items]
Numbers of segments	2
Threshold percentage of Reis Service's revenue by subscribers										3.00%	3.60%
Number of subscribers contributing largest share among major accounts receivable										10			6
Aggregate percentage of accounts receivable accounted for by subscribers										38.70%
Percentage of accounts receivable accounted for by major subscribers													4.00%	4.90%
Payments received against accounts receivable												$ 2,682,000
Percentage collected from trade accounts receivable												51.30%
Threshold percentage of deferred revenue by subscribers										4.60%
Number of units					259
Number of acres prior to sale					29
Litigation charge regarding construction defects			18,200,000	18,200,000
Other charges regarding construction defects			756,000
Settlement with the plaintiff		17,000,000
Installment amount due						$ 5,000,000		$ 12,000,000
Installment due date							Aug. 03, 2012		Oct. 15, 2012

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Stockholders' Equity - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended	33 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Aug. 31, 2011
Equity [Abstract]
Common stock repurchase authorized				$ 5,000,000
Common stock remained available			551,000
Repurchase of common stock	0	0
Dividends declared or distributed during period	$ 0	$ 0

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries. Investments in entities where the Company does not have a controlling interest are accounted for under the equity method of accounting. These investments were initially recorded at cost and were subsequently adjusted for the Company’s proportionate share of the investment’s income (loss) and additional contributions or distributions. All inter-company accounts and transactions among the Company and its subsidiaries have been eliminated in consolidation.

Quarterly Reporting

Quarterly Reporting

The accompanying consolidated financial statements and notes of the Company have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared under Generally Accepted Accounting Principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s balance sheets, statements of operations, statement of changes in stockholders’ equity and statements of cash flows have been included and are of a normal and recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013, as filed with the SEC on March 6, 2014. The consolidated statements of operations and changes in cash flows for the three months ended March 31, 2014 and 2013 are not necessarily indicative of full year results.

Estimates

Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

From time to time, the Company has been, is or may in the future be a defendant in various legal actions arising in the normal course of business. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. The outcome of any litigation is uncertain; it is possible that a judgment in any legal actions to which the Company is a party, or which are proposed or threatened, will have a material adverse effect on the consolidated financial statements. See Note 11.