Retail Access and Distribution Agreement

12 Months Ended

Dec. 31, 2016

Retail Access and Distribution Agreement

Retail Access and Distribution Agreement

On February 21, 2014, the Company and Valassis Sales and Marketing Services, Inc. (“Valassis”) entered into the Retail Access and Distribution Agreement (the “New Valassis Agreement”) that replaced all prior agreements. As a result of this new agreement, Valassis was no longer a reseller of the Company’s POPSign and the Company regained access to all consumer packaged goods manufacturers for the sale of POPSigns. The net amount paid to Valassis by the Company was $250,000, which is being amortized over the original term of the New Valassis Agreement, which is approximately four years. The net carrying amount of $64,000 was included in other assets on the Company’s balance sheet as of December 31, 2016. Amortization expense related to this agreement was approximately $64,000 during both the years ended December 31, 2016 and December 31, 2015 and is expected to be $64,000 for the year ended December 31, 2017.