XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.24.3

Balance Sheet Components | 9 Months Ended
--- | ---
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheet Components | 4. Balance Sheet Components The components of certain balance sheet amounts are as follows: Accounts Receivable and Allowance for Credit Losses – The Company receives payments from advertising customers based upon contractual payment terms; accounts receivable is recorded when the right to consideration becomes unconditional and are generally collected within 90 days. The Company generally receives payments from digital and print subscription customers at the time of sign up for each subscription; accounts receivable from merchant credit card processors are recorded when the right to consideration becomes unconditional and are generally collected weekly. Accounts receivable have been reduced by an allowance for credit losses. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Accounts receivable are written off when deemed uncollectible and collection of the receivable is no longer being actively pursued. Accounts receivable as of September 30, 2024 and December 31, 2023 of $25,858 and $31,676, respectively, are presented net of allowance for credit losses. The following table summarizes the allowance for credit losses activity: Schedule of Allowance For Doubtful Accounts
|  | Nine Months Ended September 30, 2024 (unaudited) |  |  | Year Ended December 31, 2023 |
Allowance for credit losses beginning of year |  | $ | 374 |  |  | $ | 1,036 |
Additions |  |  | 708 |  |  |  | 315 |
Deductions – write-offs |  |  | - |  |  |  | (977 | )
Allowance for credit losses end of period |  | $ | 1,082 |  |  | $ | 374 |
Prepayments and Other Current Assets – Prepayments and other current assets are summarized as follows: Schedule of Prepayments and Other Current Assets
|  | September 30, 2024 (unaudited) |  |  | December 31, 2023 |
|  | As of |
|  | September 30, 2024 (unaudited) |  |  | December 31, 2023 |
Prepaid expenses |  | $ | 2,917 |  |  | $ | 2,139 |
Prepaid supplies |  |  | 141 |  |  |  | 773 |
Refundable income and franchise taxes |  |  | 149 |  |  |  | 157 |
Unamortized debt costs |  |  | - |  |  |  | 209 |
Employee retention credits |  |  | 2,468 |  |  |  | 2,468 |
Other receivables |  |  | - |  |  |  | 45 |
Total prepayments and other current assets |  | $ | 5,675 |  |  | $ | 5,791 |
Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the subsequent extensions of the CARES Act, the Company was eligible for a refundable employee retention credit subject to certain criteria. The Company determined that it qualifies for the tax credit under the CARES Act. In connection with the CARES Act, the Company adopted a policy to recognize the employee retention credit when earned and to offset the credit against the related expenditure. For the nine months ended September 30, 2023, the Company recorded the employee retention credits as a reduction to payroll and related expenses of $6,868, in operating expenses on the condensed consolidated statements of operations. As of September 30, 2024 and December 31, 2023, the Company has a receivable balance of $2,468 as presented in the above table in prepaid expenses and other current assets on the condensed consolidated balance sheets. Property and Equipment – Property and equipment are summarized as follows: Schedule of Property and Equipment
|  | September 30, 2024 (unaudited) |  |  | December 31, 2023 |
|  | As of |
|  | September 30, 2024 (unaudited) |  |  | December 31, 2023 |
Office equipment and computers |  | $ | 1,777 |  |  | $ | 1,777 |
Leasehold Improvements |  |  | 54 |  |  |  | - |
Furniture and fixtures |  |  | 133 |  |  |  | 133 |
Gross property and equipment |  |  | 1,964 |  |  |  | 1,910 |
Less accumulated depreciation and amortization |  |  | (1,768 | ) |  |  | (1,582 | )
Net property and equipment |  | $ | 196 |  |  | $ | 328 |
Depreciation and amortization expense for the three months ended September 30, 2024 and 2023 was $56 and $79, respectively. Depreciation and amortization expense for the nine months ended September 30, 2024 and 2023 was $186 and $276, respectively. There were no impairment charges for the three months or nine months ended September 30, 2024. Impairment charges for the three and nine months ended September 30, 2023 of $0 and $55, respectively, were recorded for property and equipment on the condensed consolidated statements of operations. Platform Development – Platform development costs are summarized as follows: Summary of Platform Development Costs
|  | September 30, 2024 (unaudited) |  |  | December 31, 2023 |
|  | As of |
|  | September 30, 2024 (unaudited) |  |  | December 31, 2023 |
Platform development |  | $ | 29,064 |  |  | $ | 26,054 |
Less accumulated amortization |  |  | (21,861 | ) |  |  | (17,331 | )
Net platform development |  | $ | 7,203 |  |  | $ | 8,723 |
A summary of platform development activity for the nine months ended September 30, 2024 (unaudited) is as follows: Summary of Platform Development Cost Activity
Platform development beginning of year |  | $ | 26,054 |
Payroll-based costs capitalized |  |  | 2,765 |
Total capitalized costs |  |  | 28,819 |
Stock-based compensation |  |  | 245 |
Platform development end of period |  | $ | 29,064 |
Amortization expense for the three months ended September 30, 2024 and 2023 was $1,474 and $1,595, respectively. Amortization expense for the nine months ended September 30, 2024 and 2023 was $4,530 and $4,753, respectively. Amortization expense for platform development is included in cost of revenues on the condensed consolidated statements of operations. There were no impairment charges for the three and nine months ended September 30, 2024. Impairment charges for the three and nine months ended September 30, 2023 of $0 and $64, respectively, were recorded for platform development on the condensed consolidated statements of operations. Intangible Assets – Intangible assets subject to amortization consisted of the following: Schedule of Intangible Assets Subject to Amortization
|  | As of September 30, 2024 (unaudited) |  |  | As of December 31, 2023 |
|  | Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Developed technology |  | $ | 17,333 |  |  | $ | (17,333 | ) |  | $ | - |  |  | $ | 17,333 |  |  | $ | (17,333 | ) |  | $ | - |
Trade name |  |  | 5,181 |  |  |  | (1,736 | ) |  |  | 3,445 |  |  |  | 5,181 |  |  |  | (1,547 | ) |  |  | 3,634 |
Brand name |  |  | 12,115 |  |  |  | (3,376 | ) |  |  | 8,739 |  |  |  | 12,774 |  |  |  | (2,374 | ) |  |  | 10,400 |
Subscriber relationships |  |  | 2,150 |  |  |  | (1,315 | ) |  |  | 835 |  |  |  | 2,150 |  |  |  | (1,121 | ) |  |  | 1,029 |
Advertiser relationships |  |  | 14,519 |  |  |  | (3,898 | ) |  |  | 10,621 |  |  |  | 15,182 |  |  |  | (2,832 | ) |  |  | 12,350 |
Database |  |  | 1,140 |  |  |  | (1,140 | ) |  |  | - |  |  |  | 1,140 |  |  |  | (1,140 | ) |  |  | - |
Digital content |  |  | 355 |  |  |  | (355 | ) |  |  | - |  |  |  | 355 |  |  |  | (311 | ) |  |  | 44 |
Total intangible assets |  | $ | 52,793 |  |  | $ | (29,153 | ) |  | $ | 23,640 |  |  | $ | 54,115 |  |  | $ | (26,658 | ) |  | $ | 27,457 |
Intangible assets subject to amortization were recorded as part of the Company’s business acquisitions. Amortization expense for the three months ended September 30, 2024 and 2023 was $849 and $1,572, respectively, of which amortization expense for developed technology of $0 and $596, respectively, is included in cost of revenues on the condensed consolidated statements of operations. Amortization expense for the nine months ended September 30, 2024 and 2023 was $2,619 and $5,070, respectively, of which amortization expense for developed technology of $0 and $2,130, respectively, is included in cost of revenues on the condensed consolidated statements of operations. Impairment charges for the three and nine months ended September 30, 2024 of $0 and $1,198, respectively, were recorded as a result of the disposition of Fexy Studios intangible assets, including the advertiser relationships of $608 and brand names of $590, on the condensed consolidated statements of operations. No impairment charges for the three and nine months ended September 30, 2023 were recorded for the intangible assets. Accrued Expenses and Other – Accrued expenses and other are summarized as follows: Schedule of Accrued Expenses
|  | September 30, 2024 |  |  | December 31, 2023 |
|  | As of |
|  | September 30, 2024 |  |  | December 31, 2023 |
General accrued expenses |  | $ | 4,748 |  |  | $ | 5,551 |
Accrued payroll and related taxes |  |  | 3,457 |  |  |  | 4,515 |
Accrued publisher expenses |  |  | 2,426 |  |  |  | 7,596 |
Accrued interest |  |  | 11,220 |  |  |  | 3,824 |
Liabilities in connection with acquisitions and dispositions |  |  | 66 |  |  |  | 1,119 |
Assumed lease liability |  |  | 747 |  |  |  | 1,328 |
Lease termination liability |  |  | 246 |  |  |  | 4,481 |
Other accrued expenses |  |  | 476 |  |  |  | 489 |
Total accrued expenses and other |  | $ | 23,386 |  |  | $ | 28,903 |

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

X
- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 210 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/210/tableOfContent + Details
Name: | us-gaap_SupplementalBalanceSheetDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration