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Balance Sheet Components

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

3. 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 June 30, 2021 and December 31, 2020 was $758,228 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 June 30, 2021 and December 31, 2020 was $36,606,560 and $28,146,895, respectively. The noncurrent portion of the subscription acquisition costs as of June 30, 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 12).

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

Schedule of Property and Equipment

	As of
	June 30, 2021			December 31, 2020
Office equipment and computers	$	1,523,610		$	1,341,292
Furniture and fixtures		19,997			19,997
Leasehold improvements		345,516			345,516
Gross property and equipment costs		1,889,123			1,706,805
Less accumulated depreciation and amortization		(797,093	)		(577,367	)
Net property and equipment	$	1,092,030		$	1,129,438

Depreciation and amortization expense for the three months ended June 30, 2021 and 2020 was $109,912 and $102,067, respectively. Depreciation and amortization expense for the six months ended June 30, 2021 and 2020 was $219,726 and $241,830, 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:

Summary of Platform Development Costs

	June 30, 2021			December 31, 2020
	As of
	June 30, 2021			December 31, 2020
Platform development	$	18,857,612		$	16,027,428
Less accumulated amortization		(10,801,037	)		(8,671,820	)
Net platform development	$	8,056,575		$	7,355,608

A summary of platform development activity for the six months ended June 30, 2021 and year ended December 31, 2020 is as follows:

	June 30, 2021		December 31, 2020
	As of
	June 30, 2021		December 31, 2020
Platform development beginning of period	$	16,027,428	$	10,678,692
Payroll-based costs capitalized during the period		1,971,432		3,750,541
Total capitalized costs		17,998,860		14,429,233
Stock-based compensation		858,752		1,608,995
Dispositions		-		(10,800	)
Platform development end of period	$	18,857,612	$	16,027,428

Amortization expense for the three months ended June 30, 2021 and 2020, was $1,060,372 and $1,037,834, respectively. Amortization expense for the six months ended June 30, 2021 and 2020, was $2,129,217 and $1,958,658, respectively.

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

	As of June 30, 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	$	(10,478,880	)	$	8,591,977	$	19,070,857	$	(8,283,740	)	$	10,787,117
Noncompete agreement		480,000		(480,000	)		-		480,000		(480,000	)		-
Trade name		3,328,000		(642,642	)		2,685,358		3,328,000		(503,342	)		2,824,658
Subscriber relationships		73,458,799		(25,363,643	)		48,095,156		73,458,799		(18,105,041	)		55,353,758
Advertiser relationships		2,240,000		(451,453	)		1,788,547		2,240,000		(332,515	)		1,907,485
Database		1,140,000		(721,183	)		418,817		1,140,000		(531,183	)		608,817
Subtotal amortizable intangible assets		99,717,656		(38,137,801	)		61,579,855		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	$	(38,137,801	)	$	61,599,855	$	99,737,656	$	(28,235,821	)	$	71,501,835

Amortization expense for the three months ended June 30, 2021 and 2020 was $4,950,990 and $5,094,791, respectively. Amortization expense for the six months ended June 30, 2021 and 2020 was $9,901,980 and $10,127,515, respectively. No impairment charges have been recorded during for the six months June 30, 2021 and 2020.