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Balance Sheet Components

3 Months Ended

Mar. 31, 2021

Balance Sheet Components

The components of certain balance sheet amounts are as follows:

Accounts Receivable – Accounts receivable are presented net of allowance for doubtful accounts. The allowance for doubtful accounts as of March 31, 2021 and December 31, 2020 was $718,912 and $892,352, respectively.

Subscription Acquisition Costs – Subscription acquisition costs include the incremental costs of obtaining a contract with a customer, paid to external parties, if it expects to recover those costs. The current portion of the subscription acquisition costs as of March 31, 2021 and December 31, 2020 was $31,171,595 and $28,146,895, respectively. The noncurrent portion of the subscription acquisition costs as of March 31, 2021 and December 31, 2020 was $18,682,545 and $13,358,585, respectively.

Certain contract amendments resulted in a modification to the subscription acquisition costs that will be recognized on a prospective basis in the same proportion as the revenue that has not yet been recognized (further details are provided under the heading Contract Balances in Note 11).

Property and Equipment – Property and equipment are summarized as follows:

	As of
	March 31, 2021			December 31, 2020
Office equipment and computers	$	1,439,071		$	1,341,292
Furniture and fixtures		19,997			19,997
Leasehold improvements		345,516			345,516
		1,804,584			1,706,805
Less accumulated depreciation and amortization		(687,181	)		(577,367	)
Net property and equipment	$	1,117,403		$	1,129,438

Depreciation and amortization expense for the three months ended March 31, 2021 and 2020 was $109,814 and $638,796, respectively. Depreciation and amortization expense is included in selling and marketing expenses and general and administrative expenses, as appropriate, on the consolidated statements of operations.

Platform Development – Platform development costs are summarized as follows:

	As of
	March 31, 2021			December 31, 2020
Platform development	$	17,204,336		$	16,027,428
Less accumulated amortization		(9,740,665	)		(8,671,820	)
Net platform development	$	7,463,671		$	7,355,608

A summary of platform development activity for the three months ended March 31, 2021 and year ended December 31, 2020 is as follows:

	As of
	March 31, 2021		December 31, 2020
Platform development beginning of period	$	16,027,428	$	10,678,692
Payroll-based costs capitalized during the period		867,713		3,750,541
Total capitalized costs		16,895,141		14,429,233
Stock-based compensation		309,195		1,608,995
Dispositions		-		(10,800	)
Platform development end of period	$	17,204,336	$	16,027,428

Amortization expense for the three months ended March 31, 2021 and 2020, was $1,068,845 and $920,824, respectively.

Intangible Assets – Intangible assets subject to amortization consisted of the following:

	As of March 31, 2021							As of December 31, 2020
	Carrying Amount		Accumulated Amortization			Net Carrying Amount		Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technology	$	19,070,857	$	(9,381,310	)	$	9,689,547	$	19,070,857	$	(8,283,740	)	$	10,787,117
Noncompete agreement		480,000		(480,000	)		-		480,000		(480,000	)		-
Trade name		3,328,000		(572,992	)		2,755,008		3,328,000		(503,342	)		2,824,658
Subscriber relationships		73,458,799		(21,734,342	)		51,724,457		73,458,799		(18,105,041	)		55,353,758
Advertiser relationships		2,240,000		(391,984	)		1,848,016		2,240,000		(332,515	)		1,907,485
Database		1,140,000		(626,183	)		513,817		1,140,000		(531,183	)		608,817
Subtotal amortizable intangible assets		99,717,656		(33,186,811	)		66,530,845		99,717,656		(28,235,821	)		71,481,835
Website domain name		20,000		-			20,000		20,000		-			20,000
Total intangible assets	$	99,737,656	$	(33,186,811	)	$	66,550,845	$	99,737,656	$	(28,235,821	)	$	71,501,835

Amortization expense for the three months ended March 31, 2021 and 2020 was $4,950,990 and $5,032,724, respectively. No impairment charges have been recorded during for the three months ended March 31, 2021 and 2020.