OTHER FINANCIAL INFORMATION

Cash, cash equivalents and restricted cash

For purposes of the consolidated statements of cash flows, as of December 31, 2018, 2017 and 2016 cash, cash equivalents and restricted cash are as follows (in thousands):



	2018		2017		2016
Cash and cash equivalents	$	24,771	$	21,950	$	9,385
Restricted cash:
Control accounts under Credit Facility	—		17,644		18,263
Corporate credit card debts and other	435		433		589
Total restricted cash	435		18,077		18,852
Total cash, cash equivalents and restricted cash	$	25,206	$	40,027	$	28,237

Upon termination of the Credit Facility as discussed in Note 5, the restrictions related to the control accounts were eliminated and the related funds have been classified as cash and cash equivalents as of December 31, 2018.

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts is set forth below for the years ended December 31, 2018, 2017 and 2016 (in thousands):



	2018			2017			2016
Allowance, beginning of year	$	51		$	36		$	115
Provisions	491			45			57
Write offs, net of recoveries	(53		)	(30		)	(136		)
Allowance, end of year	$	489		$	51		$	36

Prepaid Expenses and Other Current Assets

As of December 31, 2018 and 2017, prepaid expenses and other current assets consisted of the following (in thousands):



	2018		2017
Prepaid expenses and deposits	$	3,450	$	5,030
Foreign tax refunds receivable	1,048		1,292
Prepaid loan agent and service fees	—		216
Other	2,601		2,022
Total	$	7,099	$	8,560

Property and Equipment

As of December 31, 2018 and 2017, property and equipment consisted of the following (in thousands):



	2018			2017
Computer equipment	$	7,853		$	6,966
Furniture and fixtures	2,632			2,654
Capitalized software costs	517			433
Leasehold improvements	1,142			1,090
Construction-in-progress	33			59
Total property and equipment	12,177			11,202
Less accumulated depreciation	(8,543		)	(6,947		)
Property and equipment, net	$	3,634		$	4,255

Depreciation expense was $1.8 million, $2.0 million and $1.8 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Other Accrued Liabilities

As of December 31, 2018 and 2017, other accrued liabilities consist of the following (in thousands):



	2018		2017
Accrued sales and other taxes	$	5,687	$	11,266
Accrued professional fees	7,035		8,407
Accrued dividends on Redeemable Series A Preferred Stock	3,521		—
Current maturities of capital lease obligations	387		533
Income taxes payable	767		485
Appeal proceeds payable to insurance company	449		—
Deferred insurance settlement	—		8,033
Liability for embedded derivatives	—		1,600
Other accrued expenses	2,578		2,229
Total other accrued liabilities	$	20,424	$	32,553

During 2018, the Company remitted sales tax returns to several states where such taxes had been accrued, but had not previously been billed or collected for periods prior to December 31, 2017. As a result of certain negotiations, the Company has already paid $0.4 million and has agreed to pay an additional $1.6 million for sales taxes and related interest. As a result of these negotiations, the Company was also able to reduce its related sales tax accrual by $4.9 million as of December 31, 2018.

Advertising

Advertising expenses were $1.0 million, $1.2 million and $1.3 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Litigation Costs and Related Recoveries, Net

For the years ended December 31, 2018, 2017 and 2016, litigation costs and related recoveries, net consists of the following (in thousands):



	2018			2017			2016
Professional fees and other defense costs of litigation	$	30,126		$	17,171		$	21,379
Litigation appeal refund	(21,285		)	—			—
Insurance recoveries and reduction in deferred settlement liability, net	(7,583		)	(12,311		)	(54,248		)
Pre-judgment interest on litigation judgment	—			—			2,920
Litigation costs and related recoveries, net	$	1,258		$	4,860		$	(29,949	)

Other Income (Expense), Net

For the years ended December 31, 2018, 2017 and 2016, other income (expense), net consists of the following (in thousands):



	2018			2017			2016
Interest income:
Post-judgment interest on litigation appeal award	$	199		$	—		$	—
Other	54			198			27
Write-off of deferred debt financing costs	(704		)	—			—
Foreign currency transaction gain (loss)	(1,320		)	191			(1,724		)
Other expenses	(295		)	(69		)	(89		)
Total other income (expense), net	$	(2,066	)	$	320		$	(1,786	)