XML 33 R10.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Discontinued Operations | 9 Months Ended
--- | ---
Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations On April 29, 2018, the Company entered into two distinct disposition agreements with respect to selected assets owned by our subsidiaries. DT APAC and DT Singapore (together, “Pay Seller”), each wholly-owned subsidiaries of the Company, entered into an Asset Purchase Pay Agreement (the “Pay Agreement”), dated as of April 23, 2018, with Chargewave Ptd Ltd (“Pay Purchaser”) to sell certain assets (the “Pay Assets”) owned by the Pay Seller related to the Company’s Direct Carrier Billing business. The Pay Purchaser is principally-owned and controlled by Jon Mooney, an officer of the Pay Seller. At the closing of the asset sale, Mr. Mooney was no longer employed by the Company or Pay Seller. As consideration for this asset sale, Digital Turbine is entitled to receive certain license fees, profit-sharing, and equity participation rights as disclosed in the Company’s Form 8-K filed on May 1, 2018 with the SEC. The transaction was completed on July 1, 2018. With the sale of these assets, the Company has exited the segment of the business previously referred to as the Content business. In accordance with the Pay Agreement, the Company assigned and transferred a material contract to the Pay Purchaser. Subsequent to the transaction closing associated with the Pay Agreement, the Company received notification from the Pay Purchaser that the partner to the material contract had terminated the contract with the Pay Purchaser. Due to the material contract being terminated, the Company has determined that the estimated earn out from the Pay Purchaser to be $0. As all the assets being transferred had been fully impaired prior to the closing of the transaction, the gain/loss on sale related to the Pay Agreement transaction was $0. Furthermore, the Company retained certain receivables and payables for content delivered for the benefit of the partner to the material contract, where these certain receivables and payables were all recognized prior to the closing of the Pay Agreement. These amounts are presented below as assets and liabilities held for disposal. As of December 31, 2019, the Company has determined there to be uncertainty surrounding the collectability of the receivables due to ongoing discussions with the business partner. If at a later date it is determined that the receivables recorded are not collectible due to disputes surrounding the content delivered, the related payables would likewise not be payable. At this time, the Company is negotiating settlement but does not have enough information to reasonably estimate which receivables and payables, if any, may be un-collectible and un-payable, respectively. The total net exposure to the Company if all of the remaining receivables and payables are determined to be un-collectible and un-payable, respectively, is immaterial. These assets and liabilities remain on our books as a component of discontinued operations as of December 31, 2019. DT Media, a wholly-owned subsidiary of the Company, entered into an Asset Purchase Agreement (the “A&P Agreement”), dated as of April 28, 2018, with Creative Clicks B.V. (the “A&P Purchaser”) to sell business relationships with various advertisers and publishers (the “A&P Assets”) related to the Company’s Advertising and Publishing business. As consideration for this asset sale, we are entitled to receive a percentage of the gross profit derived from these customer agreements, for a period of three years, as disclosed in the Company’s Form 8-K filed on May 1, 2018 with the SEC. The transaction was completed on June 28, 2018 with an effective date of June 1, 2018. With the sale of these assets, the Company has exited the operating segment of the business previously referred to as the A&P business, which was previously part of Advertising, the Company's sole continuing reporting unit. No gain or loss on sale was recognized related to this divestiture. All transferred assets and liabilities, with the exception of goodwill, were fully amortized prior to entering into the sale agreement. As the consideration given by the purchaser was already materially determined at March 31, 2018, goodwill was impaired to the estimated future cash flows of the divested business, which was effectively the purchase price. The following table summarizes the financial results of our discontinued operations for all periods presented in the accompanying Consolidated Statements of Operations and Comprehensive Income / (Loss): Condensed Statements of Operations and Comprehensive Income / (Loss) For Discontinued Operations (in thousands, except per share amounts) (Unaudited)
|  | Three months ended December 31, |  | Nine months ended December 31,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Net revenues |  | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | 3,880 |
Total cost of revenues |  | (102 | ) |  | — |  |  | (102 | ) |  | 3,070 |
Gross profit |  | 102 |  |  | 3 |  |  | 102 |  |  | 810 |
Product development |  | — |  |  | 37 |  |  | 62 |  |  | 703 |
Sales and marketing |  | — |  |  | 7 |  |  | — |  |  | 350 |
General and administrative |  | 37 |  |  | 160 |  |  | 122 |  |  | 1,212 |
Income / (loss) from operations |  | 65 |  |  | (201 | ) |  | (82 | ) |  | (1,455 | )
Interest and other income / (expense), net |  | — |  |  | (11 | ) |  | (89 | ) |  | (157 | )
Income / (loss) from discontinued operations before income taxes |  | 65 |  |  | (212 | ) |  | (171 | ) |  | (1,612 | )
Income / (loss) from discontinued operations, net of taxes |  | 65 |  |  | (212 | ) |  | (171 | ) |  | (1,612 | )
Comprehensive income / (loss) |  | $ | 65 |  |  | $ | (212 | ) |  | $ | (171 | ) |  | $ | (1,612 | )
Basic and diluted net income / (loss) per common share |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (0.02 | )
Weighted-average common shares outstanding, basic |  | 85,876 |  |  | 77,645 |  |  | 83,869 |  |  | 76,977 |
Weighted-average common shares outstanding, diluted |  | 92,472 |  |  | 77,645 |  |  | 89,759 |  |  | 79,371 |
Details on assets and liabilities classified as held-for-disposal in the accompanying consolidated balance sheets are presented in the following table:
|  | December 31, 2019 |  | March 31, 2019
|  | (Unaudited) |  |
Assets held for disposal |  |  |  |
Accounts receivable, net of allowances of $1,542 and $1,589, respectively |  | $ | 1,525 |  |  | $ | 1,883 |
Property and equipment, net |  | 2 |  |  | 143 |
Total assets held for disposal |  | $ | 1,527 |  |  | $ | 2,026 |
Liabilities held for disposal |  |  |  |
Accounts payable |  | $ | 2,926 |  |  | $ | 3,158 |
Accrued license fees and revenue share |  | 335 |  |  | 537 |
Accrued compensation |  | 170 |  |  | 226 |
Other current liabilities |  | — |  |  | 3 |
Total liabilities held for disposal |  | $ | 3,431 |  |  | $ | 3,924 |
Assets and liabilities held for disposal as of December 31, 2019 and March 31, 2019 are classified as current since we expect the dispositions to be completed within one year. The following table provides reconciling cash flow information for our discontinued operations:
|  | Nine months ended December 31,
|  | 2019 |  | 2018
|  | (Unaudited) |  | (Unaudited)
Cash flows from operating activities |  |  |  |
Net loss from discontinued operations, net of taxes |  | $ | (171 | ) |  | $ | (1,612 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |
Depreciation and amortization |  | 19 |  |  | 247 |
Impairment of goodwill |  | — |  |  | 309 |
Change in allowance for doubtful accounts |  | (47 | ) |  | (380 | )
Loss on disposal of fixed assets |  | 104 |  |  | — |
Stock-based compensation |  | — |  |  | 37 |
(Increase) / decrease in assets: |  |  |  |
Accounts receivable |  | 405 |  |  | 5,164 |
Prepaid expenses and other current assets |  | — |  |  | 95 |
Increase / (decrease) in liabilities: |  |  |  |
Accounts payable |  | (232 | ) |  | (4,675 | )
Accrued license fees and revenue share |  | (202 | ) |  | (1,991 | )
Accrued compensation |  | (56 | ) |  | (302 | )
Other current liabilities |  | 35 |  |  | (328 | )
Cash used in operating activities |  | (145 | ) |  | (3,436 | )
Cash used in discontinued operations |  | $ | (145 | ) |  | $ | (3,436 | )

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration