Unrestricted Subsidiaries

As of September 30, 2015, the Company's Board of Directors had designated the following entities as “Unrestricted Subsidiaries” under the indenture governing j2 Cloud Services' Senior Notes:

Ziff Davis, LLC and subsidiaries

Advanced Messaging Technologies, Inc. and subsidiaries

The financial position and results of operations of these Unrestricted Subsidiaries are included in the Company's condensed consolidated financial statements.

As required by the indenture governing j2 Cloud Services' Senior Notes, information sufficient to ascertain the financial condition and results of operations excluding the Unrestricted Subsidiaries must be presented. Accordingly, the Company is presenting the following tables.

The financial position of the Unrestricted Subsidiaries as of September 30, 2015 and December 31, 2014 is as follows (in thousands):



	September 30, 2015			December 31, 2014
ASSETS
Cash and cash equivalents	$	14,821		$	27,944
Accounts receivable	61,890			57,005
Prepaid expenses and other current assets	4,209			2,986
Deferred income taxes	5,216			5,292
Total current assets	86,136			93,227
Property and equipment, net	25,701			12,834
Trade names, net	75,781			70,310
Patent and patent licenses, net	19,544			24,007
Customer relationships, net	65,311			55,925
Goodwill	276,010			245,613
Other purchased intangibles, net	6,634			8,901
Other assets	1,835			1,706
Total assets	$	556,952		$	512,523
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	49,354		$	40,296
Income taxes payable	—			316
Deferred revenue, current	6,101			5,277
Total current liabilities	55,455			45,889
Long-term debt	130,000			110,000
Deferred income taxes	23,149			17,397
Other long-term liabilities	22,979			16,243
Total liabilities	231,583			189,529
Additional paid-in capital	319,280			317,932
Retained Earnings	7,700			6,051
Accumulated other comprehensive (loss)	(1,611		)	(989		)
Total stockholders’ equity	325,369			322,994
Total liabilities and stockholders’ equity	$	556,952		$	512,523

The results of operations of the Unrestricted Subsidiaries for the three and nine months ended September 30, 2015 and 2014 is as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015		2014
Revenues	$	96,754		$	43,618		$	147,858	$	115,801

Cost of revenues	10,276			5,299			15,293		13,596
Gross profit	86,478			38,319			132,565		102,205
Operating expenses:
Sales and marketing	36,715			18,163			55,896		49,552
Research, development and engineering	3,817			1,565			5,984		3,792
General and administrative	38,151			13,527			55,070		35,320
Total operating expenses	78,683			33,255			116,950		88,664
Income from operations	7,795			5,064			15,615		13,541
Interest expense (income), net	5,216			(3		)	8,016		(5		)
Other expense (income), net	673			518			529		100
Income (loss) before income taxes	1,906			4,549			7,070		13,446
Income tax expense	2,542			4,015			5,421		8,250
Net income (loss)	$	(636	)	$	534		$	1,649	$	5,196