3.	*Segment Information*

The Company is organized into separately managed segments as follows: the Reis Services segment and other. The following tables present condensed balance sheet and operating data for these segments:


(amounts in thousands)
Condensed Balance Sheet Data March 31, 2016	Reis Services		Other (A)		Consolidated

Assets
Current assets:
Cash and cash equivalents	$	28,714	$	197	$	28,911
Restricted cash and investments		212		—		212
Accounts receivable, net		7,107		—		7,107
Prepaid and other assets		917		197		1,114

Total current assets		36,950		394		37,344
Furniture, fixtures and equipment, net		1,525		4		1,529
Intangible assets, net		16,298		—		16,298
Deferred tax asset, net		285		17,405		17,690
Goodwill		57,203		(2,378)		54,825
Other assets		342		—		342

Total assets	$	112,603	$	15,425	$	128,028

Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—	$	—
Accrued expenses and other liabilities		3,190		1,008		4,198
Deferred revenue		22,268		—		22,268

Total current liabilities		25,458		1,008		26,466
Other long-term liabilities		280		—		280
Deferred tax liability, net		30,973		(30,973)		—

Total liabilities		56,711		(29,965)		26,746
Total stockholders’ equity		55,892		45,390		101,282

Total liabilities and stockholders’ equity	$	112,603	$	15,425	$	128,028

Condensed Balance Sheet Data December 31, 2015	Reis Services		Other (A)		Consolidated

Assets
Current assets:
Cash and cash equivalents	$	28,465	$	193	$	28,658
Restricted cash and investments		212		—		212
Accounts receivable, net		13,741		—		13,741
Prepaid and other assets		417		253		670

Total current assets		42,835		446		43,281
Furniture, fixtures and equipment, net		798		6		804
Intangible assets, net		15,687		—		15,687
Deferred tax asset, net		285		18,145		18,430
Goodwill		57,203		(2,378)		54,825
Other assets		172		—		172

Total assets	$	116,980	$	16,219	$	133,199

Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—	$	—
Accrued expenses and other liabilities		4,502		1,397		5,899
Deferred revenue		25,291		—		25,291
Liabilities attributable to discontinued operations		—		146		146

Total current liabilities		29,793		1,543		31,336
Other long-term liabilities		284		—		284
Deferred tax liability, net		29,498		(29,498)		—

Total liabilities		59,575		(27,955)		31,620
Total stockholders’ equity		57,405		44,174		101,579

Total liabilities and stockholders’ equity	$	116,980	$	16,219	$	133,199

(A)

Includes the assets and liabilities of the Company’s discontinued operations, to the extent that such assets and liabilities existed at the date presented, and includes cash, other assets and liabilities not specifically attributable to or allocable to the Reis Services segment.

(amounts in thousands)


Condensed Operating Data for the Three Months Ended March 31, 2016	Reis Services		Other (A)		Consolidated

Subscription revenue	$	12,824	$	—	$	12,824
Cost of sales of subscription revenue		2,462		—		2,462

Gross profit		10,362		—		10,362

Operating expenses:
Sales and marketing		2,668		—		2,668
Product development		1,005		—		1,005
General and administrative expenses		2,796		1,289		4,085

Total operating expenses		6,469		1,289		7,758
Other income (expenses):
Interest and other income		8		—		8
Interest expense		(21)		—		(21)

Total other income (expenses)		(13)		—		(13)

Income (loss) before income taxes and discontinued operations	$	3,880	$	(1,289)	$	2,591


Income (loss) from discontinued operations, before income taxes	$	—	$	—	$	—


Condensed Operating Data for the Three Months Ended March 31, 2015	Reis Services		Other (A)		Consolidated

Subscription revenue	$	11,131	$	—	$	11,131
Cost of sales of subscription revenue		2,186		—		2,186

Gross profit		8,945		—		8,945

Operating expenses:
Sales and marketing		2,653		—		2,653
Product development		863		—		863
General and administrative expenses		2,160		1,161		3,321

Total operating expenses		5,676		1,161		6,837
Other income (expenses):
Interest and other income		7		—		7
Interest expense		(28)		—		(28)

Total other income (expenses)		(21)		—		(21)

Income (loss) before income taxes and discontinued operations	$	3,248	$	(1,161)	$	2,087


(Loss) from discontinued operations, before income taxes	$	—	$	(118)	$	(118)


(A)		Includes the results of the Company’s discontinued operations, to the extent that such operations existed during the periods presented, and includes interest and other income, depreciation expense and general and administrative expenses that have not been allocated to the Reis Services segment.

In the first quarter of 2016, the Company changed the segment presentation to combine the discontinued operations segment with other. The reason for this change in presentation is the result of the completion of the discontinued operating activities in 2015 and to simplify the presentation on a comparable basis.

Reis Services

See Note 1 for a description of Reis Services’s business and products at March 31, 2016.

The Company’s largest individual subscriber accounted for 11.4% and 2.7% of Reis Services’s revenue for the three months ended March 31, 2016 and 2015, respectively.

The following table presents the accounts receivable balances of Reis Services at March 31, 2016 and December 31, 2015:


	March 31, 2016		December 31, 2015

Accounts receivable	$	7,216,000	$	13,828,000
Allowance for doubtful accounts		(109,000)		(87,000)

Accounts receivable, net	$	7,107,000	$	13,741,000

Fifteen subscribers accounted for an aggregate of approximately 49.2% of Reis Services’s accounts receivable at March 31, 2016, with the largest representing 11.4%. Through April 27, 2016, the Company received payments of approximately $3,726,000, or 51.6%, against the March 31, 2016 accounts receivable balance.

At March 31, 2016, the largest individual subscriber accounted for 3.5% of deferred revenue.

Discontinued Operations – Residential Development Activities

Income (loss) from discontinued operations was comprised of the following in the 2015 period (there were no discontinued operations activities in the 2016 period):


	For the Three Months Ended March 31, 2015

Litigation recoveries	$	—
Other (expense), net		(118,000)

(Loss) from discontinued operations before income tax		(118,000)
Income tax (benefit) from discontinued operations		(47,000)

(Loss) from discontinued operations, net of income tax (benefit)	$	(71,000)

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, (“GP HOA”) 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. Subsequent to that date, the Company began recovery efforts against other responsible parties involved in the design, development, construction and supervision of the Gold Peak project.

As of December 31, 2015, the Company entered into the final settlement agreement related to its Gold Peak recovery efforts, bringing closure to this process. In summary, recovery efforts from the fourth quarter of 2012 through December 31, 2015 have resulted in cash collections aggregating approximately $5,658,000 from multiple insurance carriers, trial attorneys, an insurance broker and other responsible parties involved in the design, development, construction and supervision of the Gold Peak project. No recoveries occurred in the three months ended March 31, 2015. Other expenses in that period primarily reflect legal and other professional costs incurred related to the Gold Peak litigation recovery efforts.