CONTINGENCIES AND COMMITMENTS (Block)

6 Months Ended

Jun. 30, 2018

Commitments And Contingencies Disclosure Abstract

Commitments And Contingencies Disclosure Text Block

13. CONTINGENCIES AND COMMITMENTS

Contingencies

The Company is subject to various outstanding claims which arise in the ordinary course of business and to other legal proceedings. Management anticipates that any potential liability of the Company, which may arise out of or with respect to these matters, will not materially affect the Company’s financial position, results of operations or cash flows. There were no material changes from the contingencies listed in the Company’s Form 10-K, filed with the SEC on March 16, 2018, except as described below.

Other

The Company had a relationship with USTN, a vendor that provides short duration advertising network services (e.g., sponsored traffic reports) and guaranteed revenue to the Company. The Company has not recognized revenue from USTN since the Merger as the Company does not expect to collect substantially all of the consideration due under the contract. On April 27, 2018, the Company executed a series of agreements with USTN which replaced outstanding accounts receivable from USTN with a senior secured note and an equity interest in USTN. On June 30, 2018, the Company entered into an agreement to acquire USTN by the end of July 2018, subject to certain closing conditions. Due to default by USTN, the closing conditions were not met and the Company did not complete this transaction. On July 30, 2018, USTN filed a lawsuit against the Company seeking damages. At this time, the Company cannot predict the outcome of these proceedings.