XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Discontinued operations | 6 Months Ended
--- | ---
Jun. 30, 2018
Discontinued Operations And Disposal Groups [Abstract] |
Discontinued operations | 3. Discontinued operations As discussed in Note 1(a), “Spin-off of red violet,” on March 26, 2018, the Company completed the Spin-off of red violet. The results of red violet are reflected in Fluent’s condensed consolidated financial statements as discontinued operations and, therefore, are presented as assets and liabilities of discontinued operations on the condensed consolidated balance sheet, loss from discontinued operations on the condensed consolidated statements of operations and cash activity from discontinued operations on the condensed consolidated statements of cash flows. As a result of the Spin-off on March 26, 2018, the Company’s additional paid-in capital was decreased by the net assets of red violet of $41,500, as of the effective date of the Spin-off. The following financial information presents the results of operations of red violet for the three and six months ended June 30, 2018 and 2017:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(In thousands) |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Major classes of line items constituting loss from discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  |  | - |  |  | $ | 1,993 |  |  | $ | 3,325 |  |  | $ | 3,565 |
Cost of revenue (exclusive of depreciation and amortization) |  |  | - |  |  |  | 1,843 |  |  |  | 2,017 |  |  |  | 3,244 |
Sales and marketing expenses |  |  | - |  |  |  | 1,165 |  |  |  | 1,089 |  |  |  | 1,983 |
General and administrative expenses |  |  | - |  |  |  | 10,898 |  |  |  | 1,852 |  |  |  | 12,928 |
Depreciation and amortization |  |  | - |  |  |  | 220 |  |  |  | 451 |  |  |  | 436 |
Loss from operations of discontinued operations, net of $0 income taxes |  |  | - |  |  |  | (12,133 | ) |  |  | (2,084 | ) |  |  | (15,026 | )
Loss on disposal of discontinued operations, net of $0 income taxes |  |  | - |  |  |  | - |  |  |  | (19,040 | ) |  |  | - |
Net loss from discontinued operations |  | $ | - |  |  | $ | (12,133 | ) |  | $ | (21,124 | ) |  | $ | (15,026 | )
Included in the net loss from discontinued operations is a loss on disposal of discontinued operations of $19,040 for the six months ended June 30, 2018, as presented below. Among the total loss on disposal of discontinued operations, an aggregate of $16,030 were non-cash charges.
|  | Three Months Ended |  |  | Six Months Ended |
(In thousands) |  | June 30, 2018 |  |  | June 30, 2018 |
Share-based compensation expense (1) |  | $ | - |  |  | $ | 15,548 |
Write-off of unamortized debt costs (2) |  |  | - |  |  |  | 284 |
Write-off of certain prepaid expenses |  |  | - |  |  |  | 198 |
Spin-off related professional fees |  |  | - |  |  |  | 2,012 |
Spin-off related employee compensation |  |  | - |  |  |  | 998 |
Loss on disposal of discontinued operations |  | $ | - |  |  | $ | 19,040 |
(1) | As discussed and defined in Note 9, “Share-based compensation,” share-based compensation expense represents non-cash expense in connection with the Acceleration of certain outstanding stock options, RSUs and restricted stock and additional Spin-off Grants, in connection with the Spin-off.
(2) | As discussed in Note 6, “Long-term debt, net,” in connection with the Spin-off, the Company repaid the promissory notes to certain shareholders, which resulted in a write-off of unamortized debt costs of $284.
In addition, during the first quarter of 2018, in connection with the Spin-off of red violet, an aggregate of $7,708 was recognized in costs and expenses from continuing operations as spin-off transaction costs, including non-cash share-based compensation expense of $5,409 as a result of 2,041,000 shares of Transaction Grants (as defined in Note 9, “Share-based compensation”), and employee compensation of $2,299 in cash. The Company also reclassified carrying amounts of assets and liabilities of red violet into corresponding assets and liabilities of discontinued operation as of December 31, 2017. A reconciliation is shown below:
(In thousands) |  | December 31, 2017 |
Carrying amounts of the major classes of assets included in discontinued operations: |  |  |  |
Cash and cash equivalents |  | $ | 65 |
Accounts receivable |  |  | 1,650 |
Prepaid expenses and other current assets |  |  | 559 |
Current assets of discontinued operations |  |  | 2,274 |
Property and equipment, net |  |  | 1,091 |
Intangible assets, net |  |  | 15,353 |
Goodwill |  |  | 6,465 |
Other non-current assets |  |  | 1,180 |
Non-current assets of discontinued operations |  |  | 24,089 |
Total assets of discontinued operations |  | $ | 26,363 |
Carrying amounts of the major classes of liabilities included in discontinued operations: |  |  |  |
Trade accounts payable |  | $ | 919 |
Accrued expenses and other current liabilities |  |  | 6,437 |
Deferred revenue |  |  | 33 |
Total liabilities of discontinued operations |  | $ | 7,389 |

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