Discontinued Operations and Assets Held For Sale

3 Months Ended

Mar. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale and Discontinuing Operations

Note 5. Discontinued Operations and Assets Held For Sale

On December 31, 2013, the Company entered into a definitive asset purchase agreement with Infomedia for the sale of all assets and the assignment of all agreements related to the Company’s mobile social application business. The closing of the transaction, which was subject to the satisfaction or waiver of certain conditions, occurred on February 18, 2014 (“Closing”). 

Upon Closing, in exchange for the assets and agreements related to the Company’s mobile social application business, the Company received 18 Class B shares of Infomedia, which represent an 8.25% ownership interest in Infomedia. Additionally, the Company’s CEO was appointed as a full voting member on Infomedia’s board of directors and the Company received a number of customary protective and anti-dilution rights. The Infomedia Class B shares were accounted for as a cost-method investment at the carrying amount of $787 and are included in Other assets in the consolidated balance sheet as of March 31, 2014. During the quarter ended March 31, 2014, there were no events or changes in circumstances that would indicate that the carrying amount of this investment may no longer be recoverable.

In connection with the asset purchase agreement, a non-cash impairment loss of $7,253 was recorded during the fourth quarter of 2013 and the requirement to report the results of the Company’s mobile social application business as discontinued operations was triggered. The following table represents the components of operating results from discontinued operations, as presented in the consolidated statements of operations:

	Three months ended March 31,				Cumulative from Inception through March 31,
	2014		2013		2014
Revenue	$	37	$	65	$	530
Operating expenses		(266)		(1,145)		(6,266)
Loss on impairment		—		—		(7,253)
Operating loss		(229)		(1,080)		(12,989)
Non-operating income (expense)		20		(9)		(25)
Loss before taxes on income		(209)		(1,089)		(13,014)
Income tax expense		—		(16)		(312)
Loss from discontinued operations	$	(209)	$	(1,105)	$	(13,326)

In addition, the following table presents the carrying amounts of the major classes of assets from the discontinued mobile social application business in the Company’s consolidated balance sheet as of December 31, 2013. These assets were transferred to Infomedia upon Closing. As of December 31, 2013, there were no liabilities classified as held for sale and no liabilities were transferred to Infomedia upon Closing.

	As of December 31,
	2013
Cash	$	48
Accounts receivable		102
Goodwill at carrying amount of $208, net of $208 loss on impairment		—
Acquired technology at carrying amount of $10,133, net of $2,451 accumulated amortization and $7,045 loss on impairment		637
Total assets held for sale	$	787